A proposed Framework for CRM On-Demand System Evaluation : Evaluation Salesforce.com CRM and Microsoft Dynamics Online

Abstract: Customer Relationship Management has been an integral part of the enterprise since two decades. Today, enterprises that focus on customer satisfaction need to manage their relationships with their customers effectively. This demand has allowed software vendors to create CRM solutions. The technology and broadband advancement allowed the CRM vendors to enhance their product portfolio by developing web-based CRM systems, in addition to their CRM on-premise solutions. These vendors adopted the business model in which CRM on-demand systems are provided via monthly-subscription fees, decreasing the total cost of ownership massively for enterprises in need of these systems. This business model is especially attractive for Small-To-Medium Enterprises who are searching for cost-efficient CRM systems. Currently, CRM on-demand market is quite saturated with more than 40 vendors providing similar solutions. Furthermore, CRM on-demand is delivered via Software-as-a-service method, which is a relatively new technology with unique benefits along with drawbacks. Thus, it’s of vital importance for managers in SMEs to make the right decision while evaluating the CRM on-demand option and systems. This research is meant to address this issue by building a proposed framework for CRM on-demand system evaluation. The inductive research uses qualitative and quantitative approaches for data collection and analysis. The evaluation criteria for CRM on-demand systems at a functional and general level were proposed. The general criteria were refined via collecting data from CRM on-demand experts and users in SMEs by structured questionnaires. Combining these criteria created the proposed framework which was applied to evaluate two major CRM on-demand systems in the market. The results indicate that CRM on-demand systems cover the basic functionalities of CRM including sales, marketing and service modules and offer enhanced functionality such as mobile CRM, social CRM and customizations. The research also revealed drawbacks of CRM on-demand systems such as disintegration with legacy applications, limited language support, limited country availability and technology maturity which needs to be addressed in the future. This research provides valuable insight for managers in SMEs when selecting CRM on-demand systems for their companies. Furthermore, the academicians interested in CRM and cloud computing could improve this initial proposed framework and adapt it further to different cases.