Crm and the Financial Services Lessons Learned

7/29/2019 Crm and the Financial Services Lessons Learned

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CRM and The Financial Industry

An Overview: Implementation Challenges

and Lessons Learned

Prepared by Wally KhalifaWability Knowledge Center


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Table of Contents

Section I ..............................................................................................................................4

1.0 Overview: CRM and the Financial Services Industry ............................................... 4Why is CRM Important to FSPs? ............................................................................ 4CRM Strategy Guidelines ........................................................................................ 4The Building Blocks of a Successful CRM Strategy ...............................................5

How can the Building Blocks of CRM be used to Support the Strategy ................. 61.5 Challenges in Implementing an Enterprise-Wide CRM Strategy ...................... 6Vendors and Solutions that are Best Suited to Drive Technology ...........................7

2.0 CRM in Banks ..........................................................................................................10Preferred Banking Channels ..................................................................................112.2 CRM Functionality Rankings In Banks (Survey Conducted by Gartner) ...... .112.3 CRM Integration Priorities in Banks ...............................................................11CRM Evaluation Metrics in Banks ........................................................................11Why CRM Deployment Initiatives Fail in the Banking Environment ........... .......12

3.0 CRM in Brokerages ................................................................................................133.1 Why CRM is Important to Brokerage Houses .................................................13

3.2 Preferred Brokerages Channels ........................................................................143.3 CRM Evaluation Metrics in Brokerages (Gartner) ..........................................143.4 CRM Inhibitors in Brokerages (Gartner) .........................................................143.5 CRM Functionality Rankings in Brokerages (Gartner) ................................... 14

4.0 CRM in Insurance ....................................................................................................154.1 What will effect the adoption of CRM in the Insurance Industry? .................. 154.2 Insurance Industry Ranking of the Important Elements of CRM ................... 154.3 Why CRM is Important to the Insurance Industry ...........................................154.4 Channels in Insurance ......................................................................................164.5 Preferred Insurance Channels ..........................................................................164.6 CRM Integration Plans .................................................................................... 16

4.7 CRM Evaluation Metrics in Insurance ............................................................ 164.8 Inhibitors to CRM Initiatives in the Insurance Industry (Gartner) ..................164.9 CRM Functionality Ranking in the Insurance Industry ...................................17

Section II ...........................................................................................................................18

5.0 Siebel Implementation Methodology: Challenges and Lessons Learned................18Overview ................................................................................................................18The Siebel Implementation Approach ...................................................................18Suggested Siebel Project Structure ........................................................................ 18Potential Siebel Implementation Obstacles ...........................................................19Why Siebel? Benefits ............................................................................................20CRM Solutions From ERP Software Vendors .......................................................215.7 CRM Vendors- Criteria of Evaluation: Sales .................................................. 23CRM Vendors- Criteria of Evaluation Marketing .................................................245.9 CRM Products- Criteria of Evaluation: Customer Support ............................. 25

6.0 Siebel Implementation Challenges and Lessons Learned .......................................28Challenge 1 Real-Time Recognition of Siebel Events ..........................................28Challenge 2 Batch Data Loading into Siebel .........................................................31Challenge 3 Scalability and Integration Design .....................................................32Challenge 4 Error Notification/Activity Assignments ...........................................32

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Challenge 5 Data Insertion and Update Logic--- Standardize ........................... 33Challenge 6 The Need for Monitoring Scheduling and Logging Systems .......... ..33Challenge 7 Recycle Processing ............................................................................34Challenge 8 Backup/Recovery Mechanisms .........................................................34Challenge 9 Interface Process Error Handling .......................................................35Challenge 10 Siebel Values Referencing ...............................................................35Challenge 11 QA Testing .......................................................................................36

36

References .........................................................................................................................37

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Section I

1.0 Overview: CRM and the Financial Services Industry

CRM Definition

Gartner has defined CRM as a business strategy designed to optimize profitability,revenue and customer satisfaction. CRM should be conceptualized as an all-inclusivebusiness strategy focusing on three key goals; optimizing profitability, growing revenue,

and improving customer loyalty. Without careful planning and continuous monitoring,CRM initiatives can yield unintended results. Understanding potential negativeconsequences, and making pertinent queries will assist financial services firms inassessing potential areas of vulnerability

Key IssueA key issue that should be considered is how Financial Service Providers, (FSPs) willleverage information architecture and emerging technologies to increase overallprofitability and reduce risk.

Why is CRM Important to FSPs?

The financial services market is highly saturated. Competition is growing in all segmentsof the markets as more providers transition into new lines of business, and as new marketentrants, both traditional and non-traditional emerge. With decreasing margins, and anincreasing number of competitors, each FSP is vying for a greater share of eachcustomers wallet. For customers competition means more choices in FSPs. Despiteshrinking margins and increasing client demand, FSPs face increasing market pressure toshow increased profitability. To drive overall profitability, FSPs must increase their salesefficiency, expand their business with existing customers, and improve service quality,availability and market efficiently.

CRM Strategy Guidelines

The following criteria are suggested guidelines for building a CRM strategy:1. The CRM initiative should:

Not expose the enterprise to regulatory risk.

Not expose customers to theft or other unauthorized use of personalinformation either internally or externally.

2. The CRM initiative should adequately define a customer by capturing the entityto be acquired, retained, or grown.

It should not negatively complicate marketing.

It should allow flexible customer choices.

It should incorporate a user-friendly mechanism for garneringcustomer and prospect feedback and correction.

3. The CRM initiative should have a clear, affordable, and flexible strategy.4. CRM processes and tool sets should not negatively impact the architecture of

enterprise CRM goals.5. Return on investment should be achieved.6. The CRM initiative should reflect the needs, concerns, and sponsorship of the

entire stockholder community.

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Fact

FSPs who fail to develop CRM as a business strategy, will find investments do not matchtheir goals for CRM, and as a result will face losses in profit. (Gartner Group).

Fact

FSPs that do not have comprehensive CRM strategies that include front-office, back-

office, and integration technology components will find lower than expected returns ontheir CRM investments. (Gartner Group).

The Building Blocks of a Successful CRM Strategy

In addition to acquiring new business processes and technologies, FSPs must leverageexisting processes and technologies to accomplish CRM. Key enabling technologies willinclude:a. Front-end technologies

Technologies that provide the mechanisms for delivering sales and servicesconsistently, and across all channels.

b. Back and mid-office technologiesSuch as customer databases, centralized customer information files, marketingcustomer information files, marketing data marts, and data warehouses arerequired to enable FSPs to pull information from a variety of internal sources,including core systems and external third party data providers, compile acomplete customer profile, distribute information consistently across an enterpriseand receive results from the use of this information.

c. Integration TechnologiesMiddleware, standards, and web-based technologies are required to integrate thedifferent technologies and applications in the front and back offices. Technologieswill be required for channel integration and data management.\

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How can the Building Blocks of CRM be used to Support the Strategy

Channel Expansion that will enhance sales.

Predictive Modeling, consisting of a profitability analysis will enhancethe overall marketing effort.

Personalized Service Delivery: Customer information acquisition willhelp improve service.

1.5 Challenges in Implementing an Enterprise-Wide CRM Strategy

FSPs are recognizing the many challenges they face in implementing an enterprise-wideCRM strategy. Some of these challenges are:

Lack of adequate infrastructure to support the speed and volume of datathat will be required, and to deliver complex and comprehensive data oncustomers and their relationships with a provider.

Lack of a clear understanding of who own the customer and how toestablish ownership in order to enable an enterprise strategy.

Lack of skill sets necessary to support the business strategy and process

and use the required technologies. Lack of quality data and the capability to pull information together to form

a single view of a customer.

Consumer and public interest group privacy concerns and legislation thatmay limit the use of a customers non-public personal information.

Internal culture clashes that may hamper the movement found in CRM.

Lack of solid return on investment calculations for certain aspects of CRMincluding service delivery.

Fact

Once an organization has a defined CRM business strategy, they must carefully reworktheir business processes and tactics, otherwise CRM will produce unwanted results that

decrease profitability and increase attrition. Without proper execution of their CRM

strategies, FSPs will fail to find the improvements that their CRM strategies promised.

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Vendors and Solutions that are Best Suited to Drive Technology

A. When considering customer service and support suites you should look for:

1. Call Transaction Management Services: It is important to log all incoming callsand transactions as well as manage and track interaction from initiation throughescalation and closure.

2. Field Service and Dispatch: This should include: CS (call transaction management, contract management).

Warranty Tracking.

Workforce Management, (forecasting, technician scheduling anddispatching).

Asset Management

BI, (reporting, data mining).3. CS software should be integrated into the contact center and sales automation.4. E-Service (self-service for customers, partners, and prospects) should provide:

Tracking and escalation.

E-mail response management.

Universal queue management systems to integrate telephone, IVR, speechrecognition, and the internet in order to standardize the handling of allcustomer inquiries.

Chat capabilities.5. Contact Center. To handle all channels of customer contact both inbound and

outbound including:

Voice, (telephone, IVR, speech recognition, and voice verification).

The Internet, (the web, e-mail, fax, video, and postal mail).

When evaluating software you should make sure it provides:a. Tools for forecasting, scheduling, call recoding,

monitoring, and quality assurance.b. Analysis tools, (decision support, data mining, and

customer satisfaction surveys).c. Connectivity tools including middleware, diagnostic

tools, reward recognition programs.6. Channel Automation to include branch teller platforms and agent automation.

Table 1 summarizes the customer service and support suites product offerings by variousvendors.

Call/Transaction Mgmt SW E-Service FS/D Contact Services

Clarify X X X

XOnyx X X

Remedy X X

Siebel X X X X

People Soft(Vantive) X X

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B. When Considering Technology Enabled Sales Solutions (TESS) you should lookfor software that provides the following:

1. Opportunity, territory and activity management.2. Content Management.3. Interactive Selling.4. Selling Channel Partners.5. Contract/Center/Inside Sales/Telesales/Ad Telemarketing.

6. Sales Configuration Systems.7. Sales Compensation Software.8. Point of Sale Software.

Table 2 summarizes the TESS product offerings by various vendors.1 2 3 4 5 6 7 8

Siebel X X X X X

Baan X X X

PS (Vantive) X X

Nortel (Clarify) X X X

PromptuX

Oracle X

SAP X

Onyx X X

Fact

FSPs that do not expand their sales channels and use TESS solutions to manage and

support the sales process will experience sales inefficiencies and retention in customeracquisition.

C. When considering Marketing functionality suitesyou should look for softwarethat provides the following:

1. Customer Segmentation, (channel used transaction type, frequency).2. Customer profitability Analysis, (activity based costing, funds transfer,

pricing, and risk-weighted capital).3. Predictive Modeling.4a. Campaign Management- Direct Mail.4b. Campaign Management- E-mail.4c. Campaign Management- Multi-channel.5. Real-time event monitoring and triggering.6. Personalization.7. Customer Database.

8. Business Intelligence and decision tools (DSS).

9. House Holding.

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Table 3 summarizes the Marketing functionalities product offerings by various vendors.1 2 3 4A 4B 4C 5 6 7 8 9

Broadvision X

Epiphany X X X X X X X X X

Oracle X X X X X X X

PS X X X

Vignette X X

Fact

There are no complete CRM tools on the market. Gartner expects the need to use a

combination of best-of-breed solutions to continue.

Many CRM initiatives have been taken on an individual channel or product-line basis, orsome other basis that does not enable enterprise-wide coordination. As a result, variousinitiatives may include conflicting assessments of customer value and prescriptions forcustomer treatments.

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2.0 CRM in Banks

Fact

CRM in banks lags behind other sectors in the financial industry and is shifting to

broader enterprise strategies.

Key Issue

How will banks manage and leverage their customer information assets to increaseoverall bank profitability?

Shifting from CRM point evaluation, from business line level or customer segment levelto an enterprise-wide RM strategy; a strategy that crosses the major business lines ofretail and corporate.

1. The banking industry has many of the fundamental building blocks of CRM inplace, for example customer data management, service/support, call centers, andATMs.

2. Despite the presence of many CRM building blocks, substantial gaps have beenrevealed during the past 12 months, as Internet banking channels have exposedproduct-oriented silos. On-line sales and service channels demand seamlessdynamic access to a broader range of real-time information.

3. Products, which are increasingly commoditized are no longer key differentiators.Banks are maximizing the value of relationships by cross selling products andencouraging customer loyalty.

Creating customer-centric integration of the front and back offices is the most importantaspect of CRM strategy. This is true for both retail and corporate banking.

The most important CRM functions to retail bankers are:

Front office product/technology.

Customer-centric integration of the front office.

Corporate strategy.

Business processes/organizational realignment.

The implementation of service-oriented CRM strategies for customers will lay thefoundation for expansion into customer identification, acquisition, expansion, andretention strategies, leading to a more mature industry that views CRM as a strategy tosupport a variety of goals including:

Identifying new customers. Acquiring new customers.

Retaining existing customers.

Expanding business with current customers.

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Preferred Banking Channels

Customer experience across channels such as dial-up terminals, PCs, and voice responsetechnology is far from consistent. The implementation of robust CRM strategies enablesbanks to track transition patterns. This will equip the bank with the information requiredto forecast future customer needs and to recognize and act on unusual changes intransactional behavior, thus maximizing channel use. Preferred channels were:

Phone.

Face-to-Face.

Internet.

E-mail.

Fax .

Kiosk.

2.2 CRM Functionality Rankings In Banks (Survey Conducted by Gartner)

Marketing Automation (29%).

Sales (18%).

Customer Data Management/Analysis (18%).

E-Commerce (18%).

Customer Service/Support (17%)

2.3 CRM Integration Priorities in Banks

The integration of CRM components with internal systems (including the internet) is thehighest priority for banks. CRM integration in was ranked as follows in terms ofimportance:

Internal systems and the Internet.

Across front office.

With legacy systems.

Front office/back office.

External Database.

No integration.

Fact

A substantial effort will be required for integration among the various CRM pointsolutions, components, channels, and critical bank systems. It is best to start with a singlevendor-suite approach, which will ultimately move to best of breed overtime toaccommodate unanticipated channels, information sources and business practices.Nosingle vendor-suite includes complete CRM functionality.

CRM Evaluation Metrics in Banks

When evaluating the success of CRM initiatives, banks often consider focusing onrevenue improvement rather than expense reduction. Although this evaluation metric isclosely aligned with industry objectives to expand business with existing customers,banks are generally reluctant to justify investments on the basis of revenue alone.

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Customer loyalty across products, geographies and time is difficult for banks to measurewithout CRM solutions.Establishing a baseline for evaluating the impact of CRMinitiatives will be challenging for many banks. Banks visualize CRM accomplishing thefollowing with respect to CRM channels (in terms of importance to the banks):

Increase customer loyalty.

Increased revenue per customer.

Increase market share.

ROI. Reduced inventory in fixed assets.

Reduced marketing, selling, service costs.

Other.

Why CRM Deployment Initiatives Fail in the Banking Environment

In a survey of banks conducted by Gartner Group, the following reasons for why CRMinitiatives failed were given:

Considered as a low priority (27%).

Lack of clear ROI (16%).

Poor IT infrastructure (15%).

Absence of comprehensive packaged solutions (10%).

Lack of vision (10%).

Resistance to change (8%).

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3.0 CRM in Brokerages

Overview

CRM continues to be misunderstood and underdeveloped at most brokerage institutions.CRM is seen as a way of complimenting client relationships, increasing customeracquisition and retention as well as growing individual customer value. The primary

goals of CRM in brokerage institutions have to be to improve service, provide for productcustomization, client targeting, cost reduction, and increasing efficiency and effectivenessboth internally and with clients.

Facts

CRM goals have been met only partially, and there is substantial room for

improvement in the deployments and processes.

Many brokerages deploy CRM in a vacuum, without a core stakeholder

strategy in place.

Most brokers and vendors position CRM as a front office solution, instead

of taking a more holistic view of the enterprise and its various

stakeholders. This conflicts with the desires for a more integratedapproach that takes into account changes in the workflow and workpractices that require heavily customized solutions. This problem worsensby the different definitions of CRM that vendors use to skew favor to theirown products.

Most brokerages lack understanding of their competitive positions with respect to CRM.This view is borne out by circumstantial evidence suggesting that CRM solutions aredeployed and integrated from a mainly tactical standpoint, and do not form keycomponents of overall business strategies.

This is a misguided approach that is likely to lead to continued customer dissatisfactionand stakeholder mismanagement as a result of unclear technology adoption processes,channel conflicts, and ownership conflicts, among other factors.

Vendors are not addressing their holistic enterprise needs of a broker in terms ofcustomization and workflow, but rather are supplying point specific functionality.Without integration between front and back offices, delivery touch points will not haveactionable information with which to manage customer relationships effectively.

3.1 Why CRM is Important to Brokerage Houses

Expanding business with current customers.

Acquiring new customers. Retaining Customers.

Identifying new customers.

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3.2 Preferred Brokerages Channels

Phone.

Internet.

Face-to-face.

E-mail.

Fax.

Kiosk.

3.3 CRM Evaluation Metrics in Brokerages (Gartner)

Increased revenue per customer (89%).

Increased customer loyalty (86%).

Increased market share (81%).

Acceptable ROI (74%).

Reduced marketing, selling, and service costs (53%).

Reduced Investment in fixed assets (31%).

Other (3%).

3.4 CRM Inhibitors in Brokerages (Gartner) Low Priority (13%).

Resistance to change (10%).

Absence of comprehensive packaged software (8%).

Poor IT infrastructure (7%).

Lack of vision (7%).

ROI (3%).

3.5 CRM Functionality Rankings in Brokerages (Gartner)

E-Commerce (36%).

Marketing automation (20%).

Customer data management (16%).

Sales (15%).

Customer service/support (13%).

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4.0 CRM in Insurance

Facts

Insurance Carriers view CRM as a method of focusing on customer service.

As competition within the financial services industry grows more intense,insurance providers must rapidly evaluate existing business models and make

key modifications to enable success in the new marketplace. One thesemodifications is the adoption of CRM strategies to enhance marketing, sales,and services across the enterprise.

The journey toward a customer-centric organization will be difficult.

4.1 What will effect the adoption of CRM in the Insurance Industry?

Growing Competition:

Multiple sources of new competitive entries, including start-ups, and financial/non-financial providers that want a piece of the insurance market.Shifting Sales and Service Strategies:

Traditionally, insurance providers have concentrated on product creation, withdistribution/sales considered a different basic focus. Most aspects of customerrelations were supported at the channel level, and were not a concern to theprovider. As direct channels emerge, carriers have more interactions withcustomers, and require better methods of communication and support.Changes in consumer behavior:

More transactions are live.

Fact

Overall, there is a lack of understanding in the insurance industry of the potential of CRMto promote growth through customer retention and acquisition. CRM is viewed as a

project that integrates front and back offices.

4.2 Insurance Industry Ranking of the Important Elements of CRM

Customer-centric integration of front and back office (41%).

Components of corporate strategy (32%).

Business process or organizational realignment (14%).

Front office Product/technology (11%).

Do not know (2%).

4.3 Why CRM is Important to the Insurance Industry

To retain customers.

To Expand business with current customers.

To acquire new customers.

To identify new customers.

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4.4 Channels in Insurance

Facts

There is a decline in importance in face-to-face interactions

There is a decline in the utility of the telephone

The Internet is viewed as an important channel strategy.

4.5 Preferred Insurance Channels Phone.

Internet.

Human Resources.

Fax.

4.6 CRM Integration Plans

Facts

The integration of CRM initiatives will be a difficult and costly endeavor

for insurance providers because they will have to integrate systems with a

variety of internal systems and external systems of partners, suppliers,

and customers. The lack of consistency in internal infrastructure and thedisparity of internal systems will require that, carriers first focus an

internal integration plans.

The creation of a CRM business strategy is likely to be difficult, anddecisions about building the technological framework to support a CRM

initiative are also challenging.

4.7 CRM Evaluation Metrics in Insurance

Increased customer loyalty.

Increased market share.

Increased revenue/customers. Acceptable ROI.

Reduced marketing, selling and service costs.

Reduced investment in fixed assets.

Other.

4.8 Inhibitors to CRM Initiatives in the Insurance Industry (Gartner)

Low Priority (22%).

Corporate culture/resistance to change (12%).

Lack of clear ROI (12%).

No comprehensive packaged solutions (11).

Poor IT infrastructure (9%). Lack of vision/leadership (6%).

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4.9 CRM Functionality Ranking in the Insurance Industry

Marketing Automation (25%)

Customer data management/analysis (21%).

E-commerce (21%).

Sales Automation (18%).

Customer Services/Support (16%).

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Section II

5.0 Siebel Implementation Methodology: Challenges and

Lessons Learned.

Overview

Siebel defines a successful e-business project based on the achievement of these

outcomes: Increased Revenue.

Increased Profits.

Customer Satisfaction.

Increased Productivity.

In order to achieve the above, the implementation team must:1. Address and understand business requirements.2. Complete implementation on schedule and within budget.3. Gain acceptance by the user community.

The Siebel Implementation Approach

The Siebel approach consists of the following 4 elements:

1. Understanding and adhering to Siebel e-business critical success factors,including:

Aligning business requirements with IT.

Obtain executive sponsorship.

Define business benefits clearly.

Leverage Siebel functions.

Involve users. Used a phased implementation approach.

Define end-user training.

2. Divide the overall project into key phases.3. Follow Siebel e-roadmap methodology.

Definition Stage.

Discover Stage.

Design Stage.

Configuration Stage.

Validation Stage.

Deployment Stage.

4. Utilize a production pilot for the implementation of each phase.

Suggested Siebel Project Structure

The benchmarks for the average Siebel implementation, (based on the Siebel Approach)is approximately 13 weeks, utilizing 12 people, 5 of which are consultants.

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S t e a r in g C o m m i t t e e

P r o j e c t M a n a g e r s

P M 1 P M 2

B A T e a m C o n f i g u r a t i o n T e a m

S y s t e m / D a t a T r a i n i n g

A r c h e t e c t u r e D e p l o y m e n t

E x p e r t S e r v i c e s ( S i e b e l )

F o r A r c h e t e c t u r e a n d

C o n f i g u r a t i o n R e v i e w

P r o j e c t A d v i s o r s

T A MT e c h n i c a l A c c o u n t M a n a g e r

( F r o m S i e b e l )

S i e b e l P M O

F o r Q u a l it y R e v i e w

S p o n s o r s

Potential Siebel Implementation Obstacles

1. Requirements not defined, (Can add 2-3 weeks during discovery phase).2. Complex interfaces to ERP systems3. Interfacing with existing logic outside of Siebel environment.

4. Implementing Siebel Quotes Module, (depends on the gap between the currentquote system and Siebel quote functionality, about 2 3 weeks extra).

5. e-configurator: Implementation time depends on the number of productcombinations which is based on:

Business Rules.

Relationship between products and services.6. Siebel Reports- additional.7. Data cleansing and conversion.

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Why Siebel? Benefits

1. Transformation of the business into a customer-centric organization byconsolidating customer-facing process around a single customer relationshipmanagement platform.

2. Migrating multiple customer databases will enable sales and marketing

personnel to exchange contact and lead information.3. Provide customer information to field sales personnel.4. Provide accurate, timely, consultative answers to questions.5. Increase customer loyalty and staff effectiveness by building a knowledge

base, which can be referenced by both support staff and customers.6. Provide sales staff with more information about customers/accounts.7. Enable cross selling and up selling of products and services.8. Track customers and prospects more accurately.9. Improve management decision-making.10. Avoid duplication of effort.11. Develop better control of territory assignments.

12. Improve sales pipeline, contact, and visit report.13. Provide a single solution for corrective action when problems occur.14. Provide a framework for information sharing among the business groups.15. Provide a consistent level of service.

Note:

In order to secure a customers lifetime value, successful companies are offering their

customers optimum products, perfect communication channels, and comprehensiveservices along every step of the business relationship.

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CRM Solutions From ERP Software Vendors

SAP, PeopleSoft, Baan, and Oracle have begun to offer products in the CRM spaceHowever, Siebel is the only CRM software vendor that has a product that addresses thedemand chain needs (sales, marketing, service, support and channel partner management)of global enterprises.Smaller companies with departmental requirements, as well as those seeking best-of-

breed point functionality or deep industry specific functionality requirements andworkflow with back-end systems, may be better served by solutions other than those fromSiebel.The potential solutions to the following issues should be addressed:

1 Does mySAP.com offer a true integrated e-business solution?

No, SAP does not offer a truly integrated e-business solution and relies on marketingrelationships with CRM and Supply Chain vendors to round out their e-business story.Only Oracle offers a truly integrated e-business solution.

2 Has SAP transformed themselves to an e-business?

As of yet SAP has not moved to a true e-business environment. What's more, there havebeen no announcement that SAP plans on using their own software to transformthemselves to an e-business. Oracle utilizes its own e-business software and has savedover $1 billion doing so.

3 Can you tell me how Clarify and Commerce One are integrated with R/3?

There is no seamless integration between Clarify and SAP, or Commerce One and SAPinhibiting the flow of transactions and requiring costly integration projects to implement,upgrade and maintain. Oracle offers a completely integrated solution from front to backoffice- one simple and complete suite.

4 How flexible is R/3?R/3 is highly inflexible. For example, it is very difficult to add to or change GLhierarchies, something that is easily accomplished with Oracle.

5 Can I import non-SAP data into the SAP Business Information Warehouse

(BIW)?

The SAP BIW can only facilitate the storage and management of SAP data from SAPapplications, limiting the users ability to view external and non-vendor specificinformation. Oracle enterprise data warehouse (EDW, is designed to facilitate themanagement of data from multiple vendors, enabling a true enterprise-wide view.

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The following chart will describe some of the high level functionality offered by some ofthese other vendors.

Insurance Banking CRM Products e-business Suite

SAPSpecific Product exists:

SAP-InsuranceSpecific Product exists.

SAP-CRM Banking

mySAP-CRM hasCustomer Engagement

Order FulfillmentBusiness Transaction

Customer Service

PeopleSoft

No Specific Product: Nocommission

management. Noclaims management

No Specific ProductSales, Support, FieldServices, Help Desk,

Quality, Analytics

e-sales, e-support,e-field services,

e-helpdesk

Oracle No Specific product: No Specific Producte-Business suite i11

Product, Sales,Marketing and Support

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5.7 CRM Vendors- Criteria of Evaluation: Sales

Product

Opportunity

Territory, Activity

Management

System

Content

Management

Interactive

Selling

Selling

Channel

Partner

Contact Center--

Inside Sales--Tele

Sales--Tele

Marketing

Sales

Configurator

Sales Compensate

Software

Point of

Sales

Software

Siebel 2000 X N/A X X X X N/A

BAAN X X X

PeopleSoft

(Vantive)X X

Oracle iR11 X X X

SAP X

JDA X

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CRM Vendors- Criteria of Evaluation Marketing

Product

Campaign

Tracking Surveys

Order

Management

Advanced

Planning

Customer

Segmentation

Profitability

analysis

Predictive

Marketing

Event

Modeling Personalization ReportingSiebel 2000

BAAN X

PeopleSoft

(Vantive) X X X X X X

Oracle

iR11 NextVersion

NextVersion

X X X X X

SAP X

JDA X

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5.9 CRM Products- Criteria of Evaluation: Customer Support

Product Transaction Management E-services F S/D Contact CenterSiebel 2000

X X X X

BAAN

PeopleSoft (Vantive)

X X

Oracle iR11

SAP

JDA

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A complete CRM solution must address each of the following areas:

Effective customer segmentationCompanies must have a total customer view and divide their customer populations into discreet groups that share similar

characteristics.

Integrated multi-channel strategyOrganizations need to synchronize their channels and balance the cost of each channel against other factors, including value tothe customer, the customers preferences, and each channels profit potential

Well-defined business processesOrganizations must ensure that business processes are clearly defined and are based on customers perspectives and needs.

The right skill sets and mindsetsOrganizations need to carefully manage change and provide the right training and incentives to bring about desired behaviors.

The right technologyOrganizations require technology that provides a single view of customer information across all customer touch points, addresses

specific industry requirements, works seamlessly with other technologies, supports multiple devices, scales easily, and

provides support for global operations.

The key to creating business value with CRM is remembering that business strategy and technology strategy are inextricablylinked. Companies that fall into the trap of thinking they can implement CRM capabilities based only on technology will fail.Those that take a more holistic approach will be able to achieve the greatest success in driving greater customer satisfaction,and ultimately, shareholder value.

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6.0 Siebel Implementation Challenges and Lessons Learned

Challenge 1 Real-Time Recognition of Siebel Events

1. Events based data integration in Siebel requires a uniform mechanism of real-time

event recognition that resides on the Siebel Application Server.

2. Any activities related to interface design should be constructed with a bias againstclient-based solutions.

3. Real-time events occur with the help of database triggers. This is a solution that isprovided by middleware; tools such as Vitria for example. Another recommendedway to achieve real-time data extraction is accomplished by way of polling Siebelbusiness components at fixed intervals. Either scenario allows interfaces tooperate exclusively at the server level.

4. Server-based Siebel integration processes have the following advantages overclient-based processes because they:

Allow simple conversion to thin client.

Facilitate easy rolling out of process upgrades.

Operate within the scope of Siebel application server, which ensures goodperformance.

Siebel Application

Server

Siebel Client Based

Interface 1

Interface 2

Interface 3

Siebel DB

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User Report Recognition: The Polling Mechanism

A polling mechanism sends a query to a business component at a fixed interval in orderto detect a new request. The diagrams below illustrate various polling mechanismoptions.

Option 1

Siebel Application Server Siebel Database

DB QueryPOLL

Interface

Option 2


DB QueryPOLL

Interface

Base Table

UseTriggers

Poll ID

Row ID

NewMessage

External

Table

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Option3


DB QueryPOLL

Interface

Base TableUse

Triggers

User ID

DBMS_PIPE

Once a process has recognized a new request, a proper meta database must be referencedin determining field level data extraction. If you use middleware, (publish/subscribe) allfields will generally be extracted with subscribing systems mining needed fields.Application logic also derived from meta data must be applied as well. This includes:

Field-to-field mapping.

Transformations.

Field look-up translations into Siebel.

External database look-ups.

Formatting into accepted transport protocol (XML).

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Challenge 2 Batch Data Loading into Siebel

When addressing data conversion, a common pitfall is to leverage existing messagingmiddleware applications rather than duplicate meta data for batch processing. This is notrecommended. Rather, a high-volume batch mechanism such as Siebel EIM or

Informatica ETL should be configured to draw upon the same meta data.

Lesson

Do not use messaging middleware tools to do the job of an ETL tool.

L e g a c y R e q u e s t

T h i r d P a r t y

O D S - S i e b e l B u s i n e s s

C o m p o n e n t

M i d d l e w a r e

A l l D a t a R e q u e s t s

M e s s a g e Q u e u e

R e q u e s t t o

R e q u e s t t o

t h r o u g h

T C P / I P

R e s p o n s e t o

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Challenge 3 Scalability and Integration Design

Interface processes must be scalable in order to accommodate unexpected peeks in datavolume. Integration processes must be designed and constructed with the followingcapabilities:

Load Balancing---Multi-threading, Multi Processing. High rates of throughput.

Error handling, Process Monitoring, Match Logic.

Application processes should concentrate on integration tasks and allow system-wideapplications handle the mundane.

Lesson

Though EAI tools may claim to have high speed throughput, bottlenecks will occur when

processes require heavy Siebel interaction using the COM API

Challenge 4 Error Notification/Activity Assignments

A p p l i c a t i o nA c t iv i t y / B u s i n e s s

C o m p o n e n t

M e t a D a t a D a t a b a s e

I n t e r f a c e P r o c e s s I

I n t e r f a c e P r o c e s s I I

E r r o r A s s i g n m e n tM e s s a g e s

P r o c e s s M e s s a g e s

S i e b e l D a t a In s e r t io n

L o o k U p - T o A s s i g n , T o C o r r e c t

U s e r I D

A primary benefit of using a Siebel solution includes the assignment of activityand error notifications to specific users.

Interfaces can strategically utilize this by adhering to rules applied to erroneous

transactions that do not have clear owners, (such as user name, user id). This becomes a powerful exception handler in that human intervention can be

leveraged to complete an automated process.Since many interfaces will use these mechanisms, a single process fed by a messagequeue should be responsible for error assignments. This will release interface processesfor non-essential task.

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Challenge 5 Data Insertion and Update Logic--- Standardize

Since updating in Siebel will include modifying existing records, an acceptable standardfor data insertion must be followed.

1. If fields in the insertion record are null or empty, Siebel must not be updated at

all, (this is to avoid deleting meaningful data).

2. When blank data is sent through the interface, update logic must translate this tooverwrite Siebel fields with eithernullorblank.

3. When you have business specs that sometimes require field updating only afterpre-existing values are confirmed for certain conditions, (e.g., does accountnumber in Siebel match the number from the interface?).

EAI tools (or data cleansing tools) must notonly have the ability to insert data into Siebelbusiness components, but must also decipher a proper method for field updating such as:

Fields requiring simple updating. Fields containing outdated or incorrect data.

Fields that need not be updated at all.Lesson

When processing Siebel transactions includes referencing existing fields, look-ups should

take place immediately before updating Siebel records. In this way excessive Siebelquerying is avoided.

Challenge 6 The Need for Monitoring Scheduling and Logging Systems

Complex middleware infrastructures require an enterprise-wide monitoring system for

processes, message queues, network traffic, system usage levels, and other sensitivepoints of failure. A tool is needed to define system thresholds, alert conditions, automatedprocess criteria, and automated paging systems.

Process and massage logging is used for debugging, backup/relaying services to enableprocess monitoring, and to allow system administrators and developers to determinesystem progress relative to dependent services in order to identify bottlenecks.Application developers and system administrators must come to a consensus andappropriate logging information for mutually beneficial purposes.

On-line processes that run all hours of system up-time generate log files, and are

continually monitored by enterprise monitoring systems. However, processes that executebased on a standard timetable must generate reports that will notify administrativepersonnel of successful, (or unsuccessful) execution. These reports should detailunprocessed batch messages and abnormal program termination.

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Challenge 7 Recycle Processing

Messages originating from legacy systems and downloaded in a fire and forget fashion,that have corresponding Siebel entries, must contain context setting fields to ensureproper data insertion. Many systems have unique keys that span multiple systems in order

to secure a reliable context for integration purposes. In these environments, applyinglegacy transactions is as easy as matching key fields. However, in cases whereuniqueness does not span multiple systems, matching logic must be defined that willcouple transactions between legacy and Siebel.

In a system that depends upon user definition for uniqueness, it is impossible to guaranteeprocessing of every transaction. Business specs must address cases where automatedlegacy transactions are dependent upon manual entry into Siebel. How?

A temporary storage location must be created to house unmatched data.

Notifications to appropriate users must be created in order to direct unmatchedtransactions.

Recycle processes that re-invoke match rules must be created and executed atfixed intervals.

Purge criteria must be incorporated into the recycle process in order to avoid anyunnecessary build-up of garbage data.

*Most recycle transactions have no appropriate location in Siebel, and are trulygarbage.

Challenge 8 Backup/Recovery Mechanisms

A mechanism for backing up and recovering records and transactions must be created to

address system outages such as system shutdown, process exceptions, middlewareinterruption, and Siebel errors.

Backup and recovery processes must be resident within multiple layers of the integrationenvironment. One mustexist at the transport layer in the form of persistent messages, oneat the application layer in the form of two-phase commit, and one at the message brokerlayer in the form of temporary message storage in the case of a network outage.

Backup/recovery mechanisms must distinguish real-time, synchronous, asynchronous,and batch/bulk integration.

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Challenge 9 Interface Process Error Handling

Interface processes must operate based on the premise that data cannot be lost.For batch processing, this is not difficult.

Records should not be committed until the batch cycle is complete, and data

should not be purged until a successful transformation process has beencompleted.

For message oriented middleware, whether processing high volume batchtransactions, or real time synchronous/asynchronous messaging, numerous failurecontingency plans must be in place to guard against the loss of transactions.

Failure Scenarios Backup Mechanisms Recovery Mechanisms Actions to take upon failure

Message Transport Failure Enable persistent messagingMiddleware tool shouldresume context transmission

Sleep, until transportmechanism is restored

Siebel Error HandlingTwo-phase commit update

method

Human intervention via

activity notification

Transaction rollback andrecycle. If Siebel shutdown,throw unhandled exception

Application ServerShutdown

Utilize persistent messagingRe-process uncommittedtransaction

Process FailureTwo-phase commit updatemethod

Re-process uncommittedtransaction

Challenge 10 Siebel Values Referencing

As a result of Siebel business component development, as well as far the benefit ofworkflow manager, there will likely be a significant portion of metadata stored withinSiebel rather than in the metadata database. As a result, interfaces are required to heavilyinteract with Siebel when transforming the interface to the Siebel database.

In order to prevent unnecessary Siebel querying when referencing lists of values,middleware tools should have the ability to store the values in internal caches or buffersfor quick reference and for limited Siebel querying.Middleware tools used for integration in a Siebel environment should have up to dateadapters for the following systems:

Databases: Oracle, Sybase, Informix, SQL Server, MS Access, MainframeSystems, CICS, IMS, and MVS.

Message Oriented Middleware: MQ Series, COM, COBRA, and MSMQ.

Data Communications: TCP/IP, IIOP, and SNA.

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Challenge 11 QA Testing

As with any EAI implementation, a good QA testing design must be created concurrentlywith development.

Stress TestingEach interface must be tested for maximum throughput,excessive transaction data, peak hours of operation, anddata accuracy under these conditions.

Regression TestingWith each new release of interface processes, retestingexisting features must be done.

Unit Testing

With each new feature developed into an interface, processtesting should take place. It should be at least thoroughenough to account for each central flow within processmodules.

Systems AcceptanceTesting

End-to-end system wide testing is a prerequisite.

Advice

There is no such thing as too much testing.Spending more time testing today will invariably result in fewer headaches

tomorrow.

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References

1. E-CRM:Understanding the Internet Opportunity- Gartner Group 20012. SAP Banking/Customer Relationship Management SAP web site white paper-

2001

3. CRM and Enabling Technologies in Financial Services- Gartner Group 20014. MySAP- Customer Relationship Management for Insurance- SAP web 20015. In Search of the Elusive Promise of Financial Services CRM- Gartner Group 20016. PeopleSoft- Customer Relationship Management PeopleSoft web site

Publication 20017. CRM and CRM-Enabling Technologies: The Difference Gartner Group 20018. Siebel- Project Implementation Benchmark Siebel 20009. CRM: The Bright Side and the Dark Side- Gartner Group 200110. CRM the Difference WABILITY Inc. 200011. CRM in Banks- From Silos to an Enterprise Approach Gartner Group 200112.E-Business and Financial Industry- WABILITY Inc. 2001

13.Brokerage CRM: Strategic Needs, Tactical Deployments Gartner Group 200114.Insurance Providers: Begin the CRM Journey- Gartner Group 200115.Marketing: Functionality and Vendors- Gartner Group 200116. TES in Financial Services: Components and Vendors- Gartner Group 200117.FSP Customer Services/Support: Components and Vendors- Gartner Group 2000

Crm and the Financial Services Lessons Learned

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