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	<title>Comments on: On SAP, real CRM, Nils by Mouth, and Metaphors driving a software culture</title>
	<atom:link href="http://www.redmonk.com/jgovernor/2006/07/28/on-sap-real-crm-nils-by-mouth-and-metaphors-driving-a-software-culture/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.redmonk.com/jgovernor/2006/07/28/on-sap-real-crm-nils-by-mouth-and-metaphors-driving-a-software-culture/</link>
	<description>An industry analyst blog looking at software ecosystems and convergence</description>
	<pubDate>Sat, 22 Nov 2008 09:50:17 +0000</pubDate>
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		<title>By: jgovernor</title>
		<link>http://www.redmonk.com/jgovernor/2006/07/28/on-sap-real-crm-nils-by-mouth-and-metaphors-driving-a-software-culture/#comment-434635</link>
		<dc:creator>jgovernor</dc:creator>
		<pubDate>Thu, 24 Jul 2008 15:49:35 +0000</pubDate>
		<guid isPermaLink="false">http://www.redmonk.com/jgovernor/wp/?p=671#comment-434635</guid>
		<description>hey Levon - we actually use Highrise at RedMonk. its ok. rather than mind-blowing software. its easier to get useful data in then out (i really like dropbox). I am sure that's partly us, but i am just sayin....</description>
		<content:encoded><![CDATA[<p>hey Levon - we actually use Highrise at RedMonk. its ok. rather than mind-blowing software. its easier to get useful data in then out (i really like dropbox). I am sure that&#8217;s partly us, but i am just sayin&#8230;.</p>
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		<title>By: levon</title>
		<link>http://www.redmonk.com/jgovernor/2006/07/28/on-sap-real-crm-nils-by-mouth-and-metaphors-driving-a-software-culture/#comment-434598</link>
		<dc:creator>levon</dc:creator>
		<pubDate>Thu, 24 Jul 2008 14:55:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.redmonk.com/jgovernor/wp/?p=671#comment-434598</guid>
		<description>"CRM should be something to do with customers rather than cowboys on bonus for scalps though"  I think people from 37signals will agree with you here. One of their CRM products( &lt;a href="http://www.highriseHQ.com/?referrer=LEVON" rel="nofollow"&gt; Highrise &lt;/a&gt; ) is geting rave reviews from everyne.</description>
		<content:encoded><![CDATA[<p>&#8220;CRM should be something to do with customers rather than cowboys on bonus for scalps though&#8221;  I think people from 37signals will agree with you here. One of their CRM products( <a href="http://www.highriseHQ.com/?referrer=LEVON" rel="nofollow"> Highrise </a> ) is geting rave reviews from everyne.</p>
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		<title>By: Jack Johnson</title>
		<link>http://www.redmonk.com/jgovernor/2006/07/28/on-sap-real-crm-nils-by-mouth-and-metaphors-driving-a-software-culture/#comment-286927</link>
		<dc:creator>Jack Johnson</dc:creator>
		<pubDate>Mon, 28 Jan 2008 20:42:22 +0000</pubDate>
		<guid isPermaLink="false">http://www.redmonk.com/jgovernor/wp/?p=671#comment-286927</guid>
		<description>I am a sales rep in the field for a fortune 250 company that went live on SAP and salesforce.com over a year ago.  We still have massive problems with the system, our product delivery times have been pushed back by about 3-4 days, we are still invoicing customers for the wrong pricing, and no one uses salesforce.com because after being at work all day, the last thing someone wants to do is sit on the computer for an hour updating everything in salesforce.com.  Our upper management is not even using the tools that are provided in salesforce.com.  

Exactly what is good about these systems again?</description>
		<content:encoded><![CDATA[<p>I am a sales rep in the field for a fortune 250 company that went live on SAP and salesforce.com over a year ago.  We still have massive problems with the system, our product delivery times have been pushed back by about 3-4 days, we are still invoicing customers for the wrong pricing, and no one uses salesforce.com because after being at work all day, the last thing someone wants to do is sit on the computer for an hour updating everything in salesforce.com.  Our upper management is not even using the tools that are provided in salesforce.com.  </p>
<p>Exactly what is good about these systems again?</p>
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		<title>By: Jason</title>
		<link>http://www.redmonk.com/jgovernor/2006/07/28/on-sap-real-crm-nils-by-mouth-and-metaphors-driving-a-software-culture/#comment-100328</link>
		<dc:creator>Jason</dc:creator>
		<pubDate>Wed, 13 Jun 2007 20:55:38 +0000</pubDate>
		<guid isPermaLink="false">http://www.redmonk.com/jgovernor/wp/?p=671#comment-100328</guid>
		<description>I'm currently bringing SAP CRM into our business.  Biggest mistake of my business life.  The previous comments regarding OOTB promises and the delivery deltas are dead on.  CRM out-of-the-box has been as useful as a car frame and a pile of parts laying on the side.

I'm optimistic about the final product, but my project timeline was a joke and SAP's sales reps were total jokes.  We experienced similar software load times...45 days I think.  Call me a sucker, we actually had two demos because the first guy botched it so bad.  The second doofus showed up with an "Easy Button" from Staples or Office Depot or whatever in an attempt to be cute. I'd like to do something with that thing I can't repeat here...  He made lots of promises about what SAP CRM could do for my business, but by the time I realized it was all a farce the deal was done.

I am extremely sensitive to my customers and our outbound reps build relationships the old-fashioned way so true CRM was my hope.  To be honest, I don't even really have SFA at this point.  

In general, CRM's Interaction Center is a navigation nightmare for the end-user and the marketing piece offers all kinds of segmentation, but did you know you can't sort customer lists by anything other than alphabet or customer number?  Want to call customers with the highest household income first?  Sounds like a reasonable marketing attack plan, right?  Forget it.  Sure, you can build a nice little group of customers and segment all day long, but try to manipulate the order in which they are called.  

SAP claims to have consulted their customers in designing their CRM...must be some of the worst-run businesses on the planet.

Maybe it's sour grapes, but I want it known that if you believe as I do that user-adoption is key to CRM success, run from SAP CRM.</description>
		<content:encoded><![CDATA[<p>I&#8217;m currently bringing SAP CRM into our business.  Biggest mistake of my business life.  The previous comments regarding OOTB promises and the delivery deltas are dead on.  CRM out-of-the-box has been as useful as a car frame and a pile of parts laying on the side.</p>
<p>I&#8217;m optimistic about the final product, but my project timeline was a joke and SAP&#8217;s sales reps were total jokes.  We experienced similar software load times&#8230;45 days I think.  Call me a sucker, we actually had two demos because the first guy botched it so bad.  The second doofus showed up with an &#8220;Easy Button&#8221; from Staples or Office Depot or whatever in an attempt to be cute. I&#8217;d like to do something with that thing I can&#8217;t repeat here&#8230;  He made lots of promises about what SAP CRM could do for my business, but by the time I realized it was all a farce the deal was done.</p>
<p>I am extremely sensitive to my customers and our outbound reps build relationships the old-fashioned way so true CRM was my hope.  To be honest, I don&#8217;t even really have SFA at this point.  </p>
<p>In general, CRM&#8217;s Interaction Center is a navigation nightmare for the end-user and the marketing piece offers all kinds of segmentation, but did you know you can&#8217;t sort customer lists by anything other than alphabet or customer number?  Want to call customers with the highest household income first?  Sounds like a reasonable marketing attack plan, right?  Forget it.  Sure, you can build a nice little group of customers and segment all day long, but try to manipulate the order in which they are called.  </p>
<p>SAP claims to have consulted their customers in designing their CRM&#8230;must be some of the worst-run businesses on the planet.</p>
<p>Maybe it&#8217;s sour grapes, but I want it known that if you believe as I do that user-adoption is key to CRM success, run from SAP CRM.</p>
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		<title>By: Scott</title>
		<link>http://www.redmonk.com/jgovernor/2006/07/28/on-sap-real-crm-nils-by-mouth-and-metaphors-driving-a-software-culture/#comment-1772</link>
		<dc:creator>Scott</dc:creator>
		<pubDate>Fri, 06 Oct 2006 10:35:58 +0000</pubDate>
		<guid isPermaLink="false">http://www.redmonk.com/jgovernor/wp/?p=671#comment-1772</guid>
		<description>SAP spins a great story, but it hasn't delivered on transforming customer experiences for its clients.  After 5 years since the ramp-up of CRM3 in 2001, most companies are still implementing a simple 50 seat or less call center.  SAP's success stories at Brother and Canada Post are tired and have been riden more than the whores at a Nevada brothel.

I loved SAP R/3.  It really transformed my business.  SAP's other products are benefiting from the halo effect; however, when you install an application like CRM you find out it really isn't integrated out-of-the-box.  When you have to spend a min. of 30-50 days getting the CRM middleware, which isn't even the standard SAP XI, to work it isn't OOTB.  As a side note, I still don't know why cusotmers have to pay for mySAP ERP after having paid maintenance on R/3.  Sneaking Netweaver junk into the license doesn't justify the cost.  The conversion costs along with the "engines" are a crime against business.

As for Oracle, their CRM product was poor with the exception of Service Mgt, which is very solid in Depot Repair.  PeopleSoft was a smart acquisition not only for its customer base, but also for its expertise in SOA.  With the Siebel acquisition, it wasn't just CRM.  Oracle got both the eDocs product and Siebel Analytics along with a CRM product that is tailored to different verticals.

For me, ERP is a push.  Even in CPG and Oil &#38; Gas.  (It is amazing to discover that many O&#38;G companies are running more of their systems on JDE than SAP.)  The differentiator is CRM.  When it comes to transforming companies with its applications for CRM, which expands beyond SFA into customer loyalty, Oracle-Siebel has many more customers and consumers.  SAP should have purchased Siebel when it had the chance to join the two best-in-class applications.

Finally, SAP has been able to license CRM, but it is amazing that many customers go on to purchase/rent other applications such as Salesforce.com and Oracle-Siebel.  The #1 on premise CRM application for SAP customers is Oracle-Siebel while the #1 SaaS application for SAP customers is Salesforce.com.
</description>
		<content:encoded><![CDATA[<p>SAP spins a great story, but it hasn&#8217;t delivered on transforming customer experiences for its clients.  After 5 years since the ramp-up of CRM3 in 2001, most companies are still implementing a simple 50 seat or less call center.  SAP&#8217;s success stories at Brother and Canada Post are tired and have been riden more than the whores at a Nevada brothel.</p>
<p>I loved SAP R/3.  It really transformed my business.  SAP&#8217;s other products are benefiting from the halo effect; however, when you install an application like CRM you find out it really isn&#8217;t integrated out-of-the-box.  When you have to spend a min. of 30-50 days getting the CRM middleware, which isn&#8217;t even the standard SAP XI, to work it isn&#8217;t OOTB.  As a side note, I still don&#8217;t know why cusotmers have to pay for mySAP ERP after having paid maintenance on R/3.  Sneaking Netweaver junk into the license doesn&#8217;t justify the cost.  The conversion costs along with the &#8220;engines&#8221; are a crime against business.</p>
<p>As for Oracle, their CRM product was poor with the exception of Service Mgt, which is very solid in Depot Repair.  PeopleSoft was a smart acquisition not only for its customer base, but also for its expertise in SOA.  With the Siebel acquisition, it wasn&#8217;t just CRM.  Oracle got both the eDocs product and Siebel Analytics along with a CRM product that is tailored to different verticals.</p>
<p>For me, ERP is a push.  Even in CPG and Oil &amp; Gas.  (It is amazing to discover that many O&amp;G companies are running more of their systems on JDE than SAP.)  The differentiator is CRM.  When it comes to transforming companies with its applications for CRM, which expands beyond SFA into customer loyalty, Oracle-Siebel has many more customers and consumers.  SAP should have purchased Siebel when it had the chance to join the two best-in-class applications.</p>
<p>Finally, SAP has been able to license CRM, but it is amazing that many customers go on to purchase/rent other applications such as Salesforce.com and Oracle-Siebel.  The #1 on premise CRM application for SAP customers is Oracle-Siebel while the #1 SaaS application for SAP customers is Salesforce.com.</p>
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		<title>By: Andre Charland</title>
		<link>http://www.redmonk.com/jgovernor/2006/07/28/on-sap-real-crm-nils-by-mouth-and-metaphors-driving-a-software-culture/#comment-1771</link>
		<dc:creator>Andre Charland</dc:creator>
		<pubDate>Wed, 16 Aug 2006 00:24:48 +0000</pubDate>
		<guid isPermaLink="false">http://www.redmonk.com/jgovernor/wp/?p=671#comment-1771</guid>
		<description>Hey James,

Totally grok this post.  We've been evaluating various CRM systems over the past couple months, and yes they are largely designed for customer acquisition vs customer relationship management over a customers purchasing lifetime.  Kind of like picking a girl up at a bar vs getting married and raising a family, different gig;-)  They are mostly designed to sell to new customers, although most do have a support or service piece included.  Although support is generally when things are not going well from the customer.  One of the big things your blogs and comments points allude to is that current CRM technologies don't cover all the channels that we communicate with our customers.  For example on a given day I interact with our customers via phone, in person, email, IM, skype calls, phone, online forums, knowledge base aticles and comments, blogs, support emails and trouble ticket systems...and I might have missed some.  Basically all these interactions and communications, plus the customers  experience with the product and marketing add up to the relationship.  How do I capture all that?  Designing a system that could wrap all that up into one nice little view would be kick ass.  And what about what the customer sees?  Do they get any control over this?  At best they get some miserable ticket number that does nothing for them:S  My 2 cents.

Andre. 

PS.  You're comment writing textbox should be bigger:P
PPS.  Sorry it took so long to comment.</description>
		<content:encoded><![CDATA[<p>Hey James,</p>
<p>Totally grok this post.  We&#8217;ve been evaluating various CRM systems over the past couple months, and yes they are largely designed for customer acquisition vs customer relationship management over a customers purchasing lifetime.  Kind of like picking a girl up at a bar vs getting married and raising a family, different gig;-)  They are mostly designed to sell to new customers, although most do have a support or service piece included.  Although support is generally when things are not going well from the customer.  One of the big things your blogs and comments points allude to is that current CRM technologies don&#8217;t cover all the channels that we communicate with our customers.  For example on a given day I interact with our customers via phone, in person, email, IM, skype calls, phone, online forums, knowledge base aticles and comments, blogs, support emails and trouble ticket systems&#8230;and I might have missed some.  Basically all these interactions and communications, plus the customers  experience with the product and marketing add up to the relationship.  How do I capture all that?  Designing a system that could wrap all that up into one nice little view would be kick ass.  And what about what the customer sees?  Do they get any control over this?  At best they get some miserable ticket number that does nothing for them:S  My 2 cents.</p>
<p>Andre. </p>
<p>PS.  You&#8217;re comment writing textbox should be bigger:P<br />
PPS.  Sorry it took so long to comment.</p>
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		<title>By: Mark Crofton</title>
		<link>http://www.redmonk.com/jgovernor/2006/07/28/on-sap-real-crm-nils-by-mouth-and-metaphors-driving-a-software-culture/#comment-1770</link>
		<dc:creator>Mark Crofton</dc:creator>
		<pubDate>Sat, 05 Aug 2006 23:53:20 +0000</pubDate>
		<guid isPermaLink="false">http://www.redmonk.com/jgovernor/wp/?p=671#comment-1770</guid>
		<description>hey James,
thanks for the comment on my blog. in response, here are some thoughts on the above:


- agree on the term "CRM." when I was "a cowboy on bonus for scalps" i.e., software salesman, I used CRM products like Maximizer and ACT!(painful UI) but the contacts I entered were certainly not "customers" but rather prospects. Had they been customers I wouldn't have needed to talk to them; that's why we had Account Management- who by the way was using a different system.

- "motherhood and apple strudel" - nice touch on the "strudel"

- Agree that AppExchange (referring now to the app repository) is very interesting. What a great way to extend system functionality at low risk and cost to SFdC. Managed correctly they can build a loyal ecosystem of developers that will not only increase the stickiness of their core product, but evangelize for them as well. Of course they could easily screw it up too; they must resist the temptation to compete with their partners and/or poach partner functionality and incorporate into theirs.

- to the point about automated CRM being impossible without integration - think this is why your seeing SFdC flog their ability to integrate to incumbent, on-premise ERP pretty hard. I've been hearing a lot of pitching around the SAP Connector. My sense is you won't see them moving towards building (organically or thru acquisition) a monolithic CRM/ERP solution, but rather will continue to build an ecosystem of products and partners around CRM (CRM as the nucleus with these complementary products as electrons buzzing around). 

- Interesting point on blogging and NetWeaver - another social media example would be with wikis. I exchanged a few emails with some folks at Socialtext recently. They're helping us develop a competitive intelligence wiki. Now that they released their API, what would be the benefits of maybe integrating that with NetWeaver? I'm not sure, need to think it through, maybe nothing. (Disclaimer: this idea is the furthest thing from official SAP or Socialtext policy/strategy; rather this was some off-the-cuff brainstorming thru email). 

- NetWeaver - I think in addition to what was mentioned about integration it's interesting to think about breaking down monolithic applications into smaller pieces of application logic. Taking these pieces (business and application services) and rebuilding them into composite applications that are more customized (and customizable) to the needs of an industry vertical, a customer or an end user. Hopefully this will allow for the increased flexibility (flexibility at a reasonable cost I think is the real goal) that you rightly claim is a requirement.</description>
		<content:encoded><![CDATA[<p>hey James,<br />
thanks for the comment on my blog. in response, here are some thoughts on the above:</p>
<p>- agree on the term &#8220;CRM.&#8221; when I was &#8220;a cowboy on bonus for scalps&#8221; i.e., software salesman, I used CRM products like Maximizer and ACT!(painful UI) but the contacts I entered were certainly not &#8220;customers&#8221; but rather prospects. Had they been customers I wouldn&#8217;t have needed to talk to them; that&#8217;s why we had Account Management- who by the way was using a different system.</p>
<p>- &#8220;motherhood and apple strudel&#8221; - nice touch on the &#8220;strudel&#8221;</p>
<p>- Agree that AppExchange (referring now to the app repository) is very interesting. What a great way to extend system functionality at low risk and cost to SFdC. Managed correctly they can build a loyal ecosystem of developers that will not only increase the stickiness of their core product, but evangelize for them as well. Of course they could easily screw it up too; they must resist the temptation to compete with their partners and/or poach partner functionality and incorporate into theirs.</p>
<p>- to the point about automated CRM being impossible without integration - think this is why your seeing SFdC flog their ability to integrate to incumbent, on-premise ERP pretty hard. I&#8217;ve been hearing a lot of pitching around the SAP Connector. My sense is you won&#8217;t see them moving towards building (organically or thru acquisition) a monolithic CRM/ERP solution, but rather will continue to build an ecosystem of products and partners around CRM (CRM as the nucleus with these complementary products as electrons buzzing around). </p>
<p>- Interesting point on blogging and NetWeaver - another social media example would be with wikis. I exchanged a few emails with some folks at Socialtext recently. They&#8217;re helping us develop a competitive intelligence wiki. Now that they released their API, what would be the benefits of maybe integrating that with NetWeaver? I&#8217;m not sure, need to think it through, maybe nothing. (Disclaimer: this idea is the furthest thing from official SAP or Socialtext policy/strategy; rather this was some off-the-cuff brainstorming thru email). </p>
<p>- NetWeaver - I think in addition to what was mentioned about integration it&#8217;s interesting to think about breaking down monolithic applications into smaller pieces of application logic. Taking these pieces (business and application services) and rebuilding them into composite applications that are more customized (and customizable) to the needs of an industry vertical, a customer or an end user. Hopefully this will allow for the increased flexibility (flexibility at a reasonable cost I think is the real goal) that you rightly claim is a requirement.</p>
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		<title>By: Dominic Campbell</title>
		<link>http://www.redmonk.com/jgovernor/2006/07/28/on-sap-real-crm-nils-by-mouth-and-metaphors-driving-a-software-culture/#comment-1769</link>
		<dc:creator>Dominic Campbell</dc:creator>
		<pubDate>Fri, 04 Aug 2006 22:10:26 +0000</pubDate>
		<guid isPermaLink="false">http://www.redmonk.com/jgovernor/wp/?p=671#comment-1769</guid>
		<description>Many of the issues you raise are exactly the same in the public as private sector, although our driver being to better meet the needs of our customers as central to our goals as driving demand (but equally driving
organisational efficiency as well as service outcomes).

Your point re integration and SAP is also key to where we are, taking a step back to better understand our systems and information landscape prior to pinning down our vision as to how to CRM ourselves.

Above all for us in the business we are in, we are looking to ensure we have a joined up and meaningful understanding of people and places in equal measure in relation to how we deliver our services going forward.

And trust me - local authorities are the original mash up but that seems to only further fuel the business case for CRM and SAP as a means of managing the complexities we face.</description>
		<content:encoded><![CDATA[<p>Many of the issues you raise are exactly the same in the public as private sector, although our driver being to better meet the needs of our customers as central to our goals as driving demand (but equally driving<br />
organisational efficiency as well as service outcomes).</p>
<p>Your point re integration and SAP is also key to where we are, taking a step back to better understand our systems and information landscape prior to pinning down our vision as to how to CRM ourselves.</p>
<p>Above all for us in the business we are in, we are looking to ensure we have a joined up and meaningful understanding of people and places in equal measure in relation to how we deliver our services going forward.</p>
<p>And trust me - local authorities are the original mash up but that seems to only further fuel the business case for CRM and SAP as a means of managing the complexities we face.</p>
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		<title>By: James Governor</title>
		<link>http://www.redmonk.com/jgovernor/2006/07/28/on-sap-real-crm-nils-by-mouth-and-metaphors-driving-a-software-culture/#comment-1768</link>
		<dc:creator>James Governor</dc:creator>
		<pubDate>Fri, 04 Aug 2006 19:23:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.redmonk.com/jgovernor/wp/?p=671#comment-1768</guid>
		<description>thanks Charlie - and thanks very much for the trackback link!!

Scott- you know i greatly respect your opinion, so the praise is greatly appreciated. do you touch ERP in your role at all?

really cote? you have links in that regard, or can you suggest who at BEA to talk to in that regard?

thanks sig- that reminds me i need to post on ventoux trip today</description>
		<content:encoded><![CDATA[<p>thanks Charlie - and thanks very much for the trackback link!!</p>
<p>Scott- you know i greatly respect your opinion, so the praise is greatly appreciated. do you touch ERP in your role at all?</p>
<p>really cote? you have links in that regard, or can you suggest who at BEA to talk to in that regard?</p>
<p>thanks sig- that reminds me i need to post on ventoux trip today</p>
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		<title>By: Scott Mark</title>
		<link>http://www.redmonk.com/jgovernor/2006/07/28/on-sap-real-crm-nils-by-mouth-and-metaphors-driving-a-software-culture/#comment-1767</link>
		<dc:creator>Scott Mark</dc:creator>
		<pubDate>Fri, 04 Aug 2006 19:10:41 +0000</pubDate>
		<guid isPermaLink="false">http://www.redmonk.com/jgovernor/wp/?p=671#comment-1767</guid>
		<description>"Why does "CRM" have nothing to do with customers; its actually shorthand for salesforce automation (SFA)."

Right on.

That's a keenly perceptive statement - the tools commonly lumped under CRM seem definitely more around operational optimization behind the scenes, even though they are commonly called the front office tools.

I appreciate your automation and integration comments, but tools in this area IMHO always need to come back to supporting not replacing human contact - think OnStar.  Sure there are certain customer interactions that can and should be automated, but I think there is sometimes too much focus on that.  CRM/SFA tools should be about retaining customers by enhancing relationships, not replacing them.

BTW - your coverage of SAP has been fantastic, keep it up.  I'm done reading trade pubs!  ;-)</description>
		<content:encoded><![CDATA[<p>&#8220;Why does &#8220;CRM&#8221; have nothing to do with customers; its actually shorthand for salesforce automation (SFA).&#8221;</p>
<p>Right on.</p>
<p>That&#8217;s a keenly perceptive statement - the tools commonly lumped under CRM seem definitely more around operational optimization behind the scenes, even though they are commonly called the front office tools.</p>
<p>I appreciate your automation and integration comments, but tools in this area IMHO always need to come back to supporting not replacing human contact - think OnStar.  Sure there are certain customer interactions that can and should be automated, but I think there is sometimes too much focus on that.  CRM/SFA tools should be about retaining customers by enhancing relationships, not replacing them.</p>
<p>BTW - your coverage of SAP has been fantastic, keep it up.  I&#8217;m done reading trade pubs!  <img src='http://www.redmonk.com/jgovernor/wp/wp-includes/images/smilies/icon_wink.gif' alt=';-)' class='wp-smiley' /></p>
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