So here I am plugging through the summer and things are busier than ever. As I have mentioned in the past things go in cycles. Recently, I have been involved in more and more meetings involving conversations relating to the pros and cons of vertical or industry specific CRM solutions and what I would call mainstream, or best of breed CRM technologies. I wish there was a simple answer regarding which direction companies should go but there are some specific questions you should answer to help guide you through your specific situation.
Divergence – This is a subject that I talk about with clients as it relates to the core business and how much their sales and service activities and operations diverge from main stream CRM technologies. If the nature of your business is so unique that there is a vertical solution that has captured the essence of that uniqueness then you might be better off with a vertical solution. What I tend to find in many instances is that operations are not usually divergent enough to warrant a vertical solution.
Business Risk & Investment – When assessing the capital and investment of CRM companies you should look closely at the core business of a vertical CRM solution and whether or not there are competing factors for research and development dollars inside that company that will affect the ongoing improvements that you will need in your CRM solution. While a best of breed application may bring generic improvements many vertical solutions are slow to evolve because the CRM may only be a module of a broader solution.
Usability – One of the best measures of a vertical solution is to follow the workflow of the system while going through a demonstration. If the solution is lock step with your business model then this may provide a short time to value and an easier implementation. Be cautious if the system does not provide key elements of your business because many vertical solutions are inflexible or hard to modify.
Flexibility – Over the years I have migrated many companies from vertical solutions because their business evolved and the company entered new markets or began to provide other horizontal solutions that could not be handled by the limited scope of the vertical CRM technology. Like it or not many companies change over time for business survival and many best of breed systems can handle multiple business workflows for different lines of business.
Integration – So this one is tricky. When vertical solutions are deployed many times the key data needed by personnel is housed in other solutions within the firm. If this is the case the vertical solution should have an open platform capable of integrating other applications seamlessly. Best of breed CRM platforms are usually designed with tools capable of robust integration because this is often a requirement of the firms that deploy them.
Depth – Another challenge with many vertical solutions versus main stream CRM applications is the depth of functionality. If the solution will handle your needs but is so deep in capability that you don’t need a great many of the capabilities then it might be a challenge to deploy and make the system easy to use. If your user community is encumbered by complex workflow or driven to use multiple screens to achieve simple tasks then you might be in trouble.
Of course there are other key factors when deciding on a CRM solution for your organization like cost, licensing options and deployment options (SaaS, web, offline to name a few). But, take a smart approach to figure out a scorecard of what is most important now and what you might need in the coming years. The answer on which type of solution will be a best fit can usually be achieved by asking and answering the right questions.
http://blog.practicalcrm.net/2008/08/28/should-i-go-with-a-vertical-crm-or-best-of-breed-crm.aspx
There are some specific questions you should answer to help guide you through your specific situation and these are Divergence, Business Risk & Investment, Usability, Flexibility, Integration, Depth. This can help your system in making it better and can have less problems about it. There are other key factors when deciding on a CRM solution for your organization like cost, licensing options and deployment options (SaaS, web, offline to name a few). This are just few ideas on how we have a better and more effective system.