Posts Tagged ‘best practices’

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Social CRM Faces Initial Adoption Hurdles From Management Order zometa without prescription, In 1969, Elisabeth Kübler-Ross introduced the "Five Stages of Grief" in her book, On Death and Dying. These five stages can be summed up as denial, anger, bargaining, depression, and acceptance.  When applied to disruptive technology adoption by organizations, the "Five Stages" framework provides clear insight in anticipating how likely an organization is ready to embrace change.  Recent conversations with line of business operations managers about Social CRM identify both lack of awareness and high levels of internal resistance towards adoption.  In a recent phone and in-person survey of 31 front office operations owners (i.e. sales executives, Buy capecitabine pill, support executives, and COO's) about their attitudes on Social CRM, 67.7% (i.e, ordering evista without prescription. 21/31) expressed denial, Zometa price, 16.1% (i.e. 5/31) felt anger, and 9.6% (i.e, cheap iressa online. 3/31) experienced bargaining, Rabatt kaufen iressa, 3.2% (i.e. 1/31)  encountered depression, and 3.2% (i.e, order zometa without prescription. 1/31) achieved acceptance (see Figure 1).

Figure 1, Alabama AL Ala.. Most Front Office Executives Live In Denial About SCRM


The Bottom Line For Buyers (Users) - The Kübler-Ross Model Provides Techniques To Expedite The Internal Acceptance Of SCRM

The five stages of SCRM adoption describes each phase, Cheap gleevec tablet, discusses the typical reactions, and addresses how to move forward.  Organizations can expect stakeholders to progress through the phases at their own pace.  Expect organizations to fall between a 10 month to 21 month range.  However, proponents can accelerate the process through both qualitative understanding and quantitative support.  Here are the five stages:


  1. Stage 1: Denial (Average duration 3 to 6 months).  Many executives will put up defenses and excuses when initially broached about the need for SCRM.  They may have a point should no quantitative data exist or may feel as strongly as my fellow Enterprise Advocate, bestill evista online, Dennis Howlett does about SCRM.  Typical responses include, Kjøp Discount arimidex, "Social CRM is just another XLA fad"; "None of our customers will ever use this stuff, just look at how much we invested in CRM"; "Is there really any return in these social things?"

    Approach:
    Proponents should share adoption trends based on SCRM Use Case #F1 - Social Customer Insights.  If the analytical data provides the quantitative support on social media trends, then expect both a heightened awareness of the market realities and a rapid progression towards the second phase.   In many consumer and classic B2C industries, Koop korting casodex, the data will show that some significant population group is having a conversation in a social channel.  The next set of questions to answer, Order epogen no prescription, "Can they be influenced and will they buy?"  Now, if the data shows that customers, for example in classic B2B industries such as aircraft maintenance, Minnesota MN Minn., repair, Købe arimidex online, and overhaul (MRO), have barely adopted any social tools, then it will make sense to wait till social media adoption has hit a critical mass, köpa billiga iressa.


  2. Stage 2: Anger (Average duration 1 to 3 months).  As data flows in about where customers are having conversations about an organization's product, Rhode Island RI R.I., the individual recognizes that denial can not continue. Order zometa without prescription,   "Outside" conversations happening without the supervision of the firm will most likely enrage the management team.  Executives will often ask, "Can these customers really do this without us?"; "Why doesn't our existing efforts have the same effect?"; "Do we have to deal with another channel?"; "How come we have to waste all this time on SCRM"; "Who's fault is this?"

    Approach:
    At this point, stakeholders will express their rage at anyone and anything they can.  Proponents should let the individuals vent their frustration.  From there, help the stakeholders visualize a time table and project plan to support the SCRM project.  Show them how to engage and influence the customer.  Let them know they no longer control the conversation.


  3. Stage 3: Bargaining (Average duration 3 to 6 months). Despite all logical arguments, stakeholders will begin to rationalize the situation.  Excuses to postpone taking action balance out the recognition of the urgency to adopt SCRM.  Quotes from the survey include, cheap casodex tablet, "None of our competitors are doing this, Acheter en ligne zometa, why should we?" "If we can hold out for a few more years, we'll be okay and the market will be stable";  "Can we just do one part and not the rest?"

    Approach:
    Begin the discussion on what impact could occur due to inaction.  Highlight the elements of a successful approach and the dependencies.  Layout the holistic point of view.  Encourage outside advisors to provide an alternative but independent point of view.


  4. Stage 4: Depression (Average duration 2 to 3 months). Realization that a lack of financial and labor resources will hamper adoption, Køb discount epogen, forces depression upon front office executives.  Stakeholders express thoughts such as "We don't have the funding, Osta alennus casodex, this will never go through"; "Social CRM is inevitable, but no one is trained on this stuff"; "By the time we put up the current version, the world will be two generations ahead"

    Approach:
    Walk through the timing of cost and benefits with an emphasis on ROI.  Apply good project management discipline to identify resource requirements and milestones.  Identify skill gaps among the team.  Highlight the road map and project plan again and show where phases could be accelerated.  Identify success factors from previous projects, buy casodex online.


  5. Stage 5: Acceptance (Average duration 1 to 3 months). Buy gleevec online legally, With the facts in hand, a plan in place, and change management in effect, Colorado CO Colo., stakeholders may have turned the corner.  A realization that customers in social media channels are here to stay.  This "social thing" is cultural not a fad.  The tenor in hallway conversations shifts from stages 1 and 2 to "It's going to be okay, Kjøpe cytoxan, we can make this work."; "I can't fight the social trend, we may as well prepare for it and win."; "Let's put some money behind this but continue to monitor and test"; "Get that team ready to go."

    Approach:
    Don't celebrate yet!  Put the plan in place.  Apply continuous monitoring and testing.  Fail fast.  Put those learnings back into the next iteration.  Coordinate the ecosystem for success.



Your POV.

Having trouble convincing management its time for Social CRM?  Did your last CRM project fail miserably?  Are you in the market for social CRM solutions and have a question?  You can post or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity or better yet, join the community, order zometa without prescription.

Please let us know if you need help with your Social CRM efforts.  Here’s how we can help:


  • Assessing social CRM readiness

  • Developing your social CRM  strategy

  • Vendor selection

  • Implementation partner selection

  • Connecting with other pioneers

  • Sharing best practices

  • Designing a next gen apps strategy

  • Providing contract negotiations and software licensing support

  • Demystifying software licensing


Resources And Related Research:

Reprints

Reprints can be purchased through the Software Insider brand or Altimeter Group.  To request official reprints in PDF format, please contact r@softwareinsider.org.

Disclosure

Although we work closely with many mega software vendors, we want you to trust us.  For the full disclosure policy please refer here.

Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Four Common Customer Scenarios Will Trigger Vendors To Raise The Back Maintenance Fee Discussion Buy cheap evista online, Back maintenance fees describe the amount an organization would have paid for maintenance if they would have continued to pay the usual stream required to access support, bug fixes, patches, and upgrade rights.  As economic conditions have worsened, many organizations have turned to self-support, third party maintenance (3PM), or dropped support.  Discussions with 43 enterprise software customers reveal four common scenarios (see Figure 1):


  1. Scenario 1: Self supporting customers looking to upgrade to next release. Order zometa online cheap, Customers (44.19% n=19/43) in these scenarios typically run mature systems and are in businesses that do not face dynamic change .  They stopped paying maintenance years ago and rarely make major changes to the system.
    Catalyst:  Something happens in the business and the need to upgrade arises.
    Typical vendor response:
    Upgrades can only be provided to customers who pay for maintenance.  Upon payment of back maintenance, ordering cytoxan no prescription, Where to buy cheap iressa, upgrades will be provided.  In some cases, vendors also levies a penalty.

  2. Scenario 2: Self supporting customers seeking a major bug fix or regulatory update, Acheter en ligne arimidex. Comprar evista de descuento, Organizations (27.91% n=12/43) in this dynamic have self-supported for years without incident but run into scenarios where their own teams can not resolve an issue.
    Catalyst: Bug fixes and major regulatory changes can not be supported by the internal team, Georgia GA Ga..
    Typical vendor response: Bug fixes and regulatory updates can only be provided to customers who pay for maintenance.  Upon payment of back maintenance, patches and regulatory updates will be provided.  In some cases, vendor also levies a penalty.

  3. Scenario 3: Customers shifting to third party maintenance (3PM) looking to future upgrade/replacement, buy cheap evista online. Generic casodex, Those customers (16.28% n=7/43) who move to a third party maintenance provider and give up future upgrade rights often face threats from sales people that they will have to "pay dearly" if they plan to come back  to the vendor.
    Catalyst: Final decision to end of life systems and upgrade to new platform results in interaction with existing vendor, lowest price arimidex. Ordering cytoxan online, Typical vendor response: Customer must pay back maintenance in order to purchase additional modules or upgrade. In some cases, cheap evista pill, Ordering casodex no rx, vendor also levies a penalty.

  4. Scenario 4: Customers not paying for maintenance with license contracts. Buy cheap evista online, More and more customers (11.63% n = 5/43) in newer areas such as CRM no longer pay for maintenance and support past the first year.  With replacements every 4 to 5 years for CRM, some customers achieve a better ROI by avoiding the 5 years of maintenance.  Why?  Five years of maintenance at 20% is equivalent to the cost of the original license.   Instead, Hawaii HI, Acquistare a buon mercato epogen, they just rebuy a replacement/upgrade every 5 years.
    Catalyst:  Replacement and full rebuy of new system, evista kopen. Idaho ID, Typical vendor response: Customer must pay back maintenance in order to purchase additional modules or upgrade.  In some cases, vendor also levies a penalty.


Figure 1, För capecitabine online. Where to buy epogen, Common Triggers That Drive Back Maintenance Fee Threats

screen-shot-2010-04-13-at-125226-pm


Customers Often Have More Leverage Than They Realize

Most organizations fear that vendors will carry out threats to charge back maintenance.   Those vendors who subsidize license fees with maintenance to maximize Total Account Value (TAV) often threaten customers the most.  Many organizations will cave-in to demands.  Do not cave-in!  In almost every scenario, expert contract negotiations often result in win-win propositions for both the customer and the vendor for a few reasons:


  • Vendors really don't want to lose an existing customer, acheter capecitabine. Despite the threats from vendors, customers who self support, move to third party maintenance (3PM), or opt out of support, find themselves with significant leverage.  Free of the vendor, organizations in this scenario can make a clean decision because the technology typically is outdated, the cost of upgrade is close to the cost of reimplementation, and the organization has entered a new buying cycle.  If a current vendor wants a customer to pay back maintenance on top of the new license fees, that vendor will find themselves at a price disadvantage with a newer alternative.  Most vendors would rather win your business than lose a customer over back maintenance fees.

  • SaaS competition brings more choices in most categories, buy cheap evista online. Cheap casodex, The explosion of SaaS deployment options opens up the door to competition with the traditional on-premise vendors.  In most cases, there are enough viable options to add  competitive pressures.  SaaS competitors can transcend existing platforms allowing for more choice in new markets.  Organizations should introduce SaaS vendors into short lists in decisions to replace or add additional functionality to existing systems.  Competition often results in the vendor backing down on their back maintenance fee threat.

  • Most customers have not bundled their service contracts. With a flurry of mergers and acquisitions for organizations and the technology vendors, iressa online store, Ostaa halvalla iressa, most organizations have not consolidated their software contracts.  Separate agreements give organizations significant leverage when dealing with vendors because organizations can choose which applications and solutions to cut maintenance on.  This power to slice and dice among the contracts provides tremendous negotiation advantage and a strong check and balance with vendors.  Do not bundle your maintenance contracts unless significant advantages exist in new terms and conditions.


The Bottom Line For Users - Software Market Remains A Competitive Buyers Market For Now

Economic conditions, SaaS competition, capecitabine without prescription, Cytoxan kopen, and heavy dependence on maintenance revenue leave software vendors hungry and competitive for new license revenue.  In markets with SaaS competition, customers continue to win concessions in license and maintenance fee reductions.  Today, cheap arimidex overnight delivery, Billig kaufen casodex, few vendors can afford to enforce their threats to charge for back maintenance. With a high likelihood that current conditions will continue, its would be unlikely to assume that vendors would give up the opportunity to win license revenue by charging for back maintenance.  Work with a contract negotiations expert with applications strategy experience for the best results.  Avoid contract negotiators who do not understand vendor product road maps or hide behind revenue recognition excuses.

Your POV

Has your vendor threatened back maintenance?  Should you have rights to Third Party Maintenance (3PM) ?  Do you feel its okay for your vendor to prevent you from access?  What's a fair amount to pay for maintenance?  Add your comments to the discussion or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity.

Please let us know if you need help with your contract negotiations and maintenance renegotiation.  Here’s how we can help:


  • Assistance with vendor threats of back maintenance

  • Crafting your next gen apps strategy

  • Contract negotiations support

  • Free market evaluation to identify contract cost savings


Related resources and links

Take the new and improved survey on 3rd party maintenance


20100222 Monday's Musings: Why Users Should Preserve Their Third Party Maintenance Rights

20091008 Deal Architect - Vinnie Mirchandani “Third Party Maintenance Is Really 4 Decades Old”

20071120 News Analysis: Too Early to Call the Death of Third Party Maintenance

20090210 Tuesday’s Tip: Software Licensing and Pricing - Do Not Give Away Your Third Party Maintenance And Access Rights

20090709 Tuesday’s Tip: Do Not Bundle Your Support and Maintenance Contracts.

20090622 News Analysis: Infor Flex Reflects Proactive Maintenance Policy

20090516 News Analysis: Rimini Street Launches Third Party Maintenance for SAP

20090504 News Analysis: Oracle Waives Fees On Extended Support Offerings

20080909 Trends: What Customers Want From Maintenance And Support

20080215 Software Licensing and Pricing: Stop the Anti-Competitive Maintenance Fee Madness

20090428 News Analysis: SAP and SUGEN Make Progress on Enterprise Support

20090405 Monday’s Musings: Total Account Value, True Cost of Ownership, And Software Vendor Business Models

20090330 Monday’s Musings: It’s The Relationship, Stupid. (Part 2) - Stop Slashing The Quality Of Support And Maintenance

20090324 Tuesday’s Tips: Five Simple Steps To Reduce Your Software Maintenance Costs

20090223 Monday’s Musings: Five Programs Some Vendors Have Implemented To Help Clients In An Economic Recession

20081012 Monday’s Musings: 5 Steps to Restoring Trust in the Vendor - Customer Relationship

20091012 Research Report: Customer Bill of Rights - Software-as-a Service

20090912 News Analysis: Siemens Cancels SAP Maintenance Contract

20090910 Tuesday’s Tip: Note To Self - Start Renegotiating Your Q4 Software Maintenance Contracts Now.


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Recent Conversations With Executives Confirm Demand For Social CRM
Order gleevec no prescription, Good news. Massachusetts MA Mass., Organizations see an opportunity to tap into the proliferation of social networking channels for their CRM initiatives.  Speaking with 23 business leaders over the past 10 days, it became obvious that Social CRM initiatives were top of mind for a few reasons:


  • Pressure from the boardroom. Social networking achieves top of mind status.  Board of directors have asked their executives to "look into the issue".

  • Success through internal pioneers, billig kaufen gleevec. Buy cheap capecitabine online, In every organization, a few Social CRM pioneers have emerged, ordering arimidex no rx. Cytoxan for sale, They kick-off small pilots, test the waters, billig kaufen casodex, Arimidex without a prescription, and fund new projects from their successes.

  • Fear of falling behind. Organizations that have survived the past two business cycles know that they need to respond to change or be changed.  e-commerce provided good lessons learned in how channels could transform business modes.


Social CRM Must Move Beyond 'Just Another Channel' Status

Bad news!  Most executives believe that Social is just another channel and often liken Social CRM to e-commerce.  Others felt this was just an extension of CRM with a social flavor.  Those that take this point of view miss the point because Social CRM:


  • Reflects a customer driven cultural shift, cheap evista without prescription. Organizations should realize that customer behavior has changed and social networking puts the power into the hands of the customer.  Conversations occur unfettered at a peer-2-peer level and proliferate as each new social medium emerges.  Organizations must influence not control.

  • Requires an internal transformation. Existing customer facing processes must adapt to these rapid changes.  Staff must be trained.  Management teams must build a good socialgraph and foundation (SCRM Use Case F1 - Social Customer Insights) to constantly reassess where to allocate and reallocate resources.   Organizations will have to invest in training and change management to tie back to existing CRM processes.

  • Realizes the limitations of and synergies with existing CRM solutions, order gleevec no prescription. Goedkope gleevec apotheek, Without accounting for new behaviors, patterns, ordering gleevec pill, αγοράσετε iressa, and processes, legacy CRM solutions lack a social design.  Built for automation, epogen without a prescription, Wisconsin WI Wis., most lack social relationship management features.  Social CRM will have to integrate back to legacy systems and master data management to succeed.  However, existing CRM solutions will need an upgrade.


The Bottom Line - All Social CRM Ecosystem Players Must Do Their Part

Social CRM requires significant organizational transformation for success.  In fact, Rabatt kaufen cytoxan, αγοράζουν online capecitabine, Social CRM projects can fail in the same manner as other CRM projects have in the past (via Michael Krigsman). However, the customers and the industry can ensure success through better ecosystem coordination.   Each side must describe and balance the holistic dependencies required for success.  For example:


  • Customers. With the most at stake, order gleevec no prescription, Rhode Island RI R.I., customers must acknowledge the upfront risks.  As pioneers, they must invest in the change management required for success, För arimidex online, Cheap gleevec, challenge the vendors on their promises, and push their system integrators to close the gap between vendor promises and customer requirements.

  • Advertising and marketing agencies, order epogen overnight delivery. Kjøpe zometa, Because the creative teams have mindshare with the CMO and line of business executives, care must be given to highlight the technology dependencies to existing systems and the constraints in today's technologies.  Many have been burned by previous promises from CRM.  Advertising and marketing agencies should partner with the social CRM vendors and system integrators to ensure that expectations can be fulfilled.

  • System integrators (SI's), Wyoming WY Wyo.. Order arimidex no rx, Often close to the CIO and IT side of the house, system integrators need to enable the requirements from the advertising and marketing agencies.   SI's should partner with the agencies to coordinate on proposals to deliver the technology that supports business vision and value.  Partnerships with the Social CRM vendors should focus on understanding road map, αγοράσετε arimidex έκπτωση, Ordering evista, direction, and vertical opportunities.

  • Social CRM vendors. Most vendors start with their purpose built best of breed solutions.  Over time these solutions will evolve into suites. In the meantime, social CRM vendors need to stay close to meet customer requirements, partner with system integrators on vertical opportunities, and work closely with the creative teams to understand emerging requirements.


Your POV

Share with us your successes in the Social CRM ecosystem.   You can post or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity or better yet, join the community.

Please let us know if you need help with your Social CRM efforts.  Here’s how we can help:


  • Assessing social CRM readiness

  • Developing your social CRM  strategy

  • Vendor selection

  • Implementation partner selection

  • Connecting with other pioneers

  • Sharing best practices


Related resources and links

20100305 A Title Would Limit My Thoughts - Mitch Lieberman "Is Business Culture Required To Find Value in Social CRM?"

20100305 Research Report: Social CRM - The New Rules Of Relationship Management

20090831  Monday’s Musings: Why Every Social CRM Initiative Needs An MDM Backbone


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Single Instance ERP Harder And Harder To Justify Buy cytoxan, The holy grail of an ERP implementation used to be the single instance deployment.  However, market forces, a move to adopt new disruptive technologies, slow pace of innovation from incumbent vendors, and high maintenance fees have changed many organization's perspectives.  Add a slew of rapidly changing business requirements battling rigid legacy infrastructures and next gen CIO's have been forced to depart from the standard apps strategies.  In fact, improved integration, web services, and SaaS deployments have now improved the success rates and ROI for Two-Tier ERP apps strategies.

Purpose Built Capabilities And Cost Savings Drive Push For Two-Tier Apps Strategies


Recent Software Insider data surveys of next gen IT leaders in Q3 2009 and Q1 2010 show a 10% increase among organizations considering a Two-Tier ERP apps strategy (see Figure 1).  Key drivers behind moving to a Two-Tier ERP approach stem from:

  • Purpose built or industry requirements (89.61%), evista online. Epogen, Next gen IT leaders remain frustrated by the lack of innovation and progress in completing out promised functional footprints.  As market competition intensifies, industry specific, φτηνές φαρμακείο cytoxan, Cytoxan en ligne afin, purpose built solutions provide the competitive advantage needed for survival and success.

  • Existing systems too expensive (70.13%). ROI calculations on existing ERP systems often show high cost factors.  The culprits - overruns in implementation, customization of reports, Koop korting iressa, Køb discount iressa, maintenance payments on shelfware, increasing costs to staff, kopen goedkope zometa, Cheap casodex, and rigidity of system.

  • Upgrade too expensive (45.45%). Many customers face upgrade costs equivalent to reimplementation.  Cost factors could equal up to 85% of the original implementation cost.

  • Need to innovate (35.06%). Some organizations find that their vendors have not innovated fast enough, South Carolina SC S.C.. Cheapest gleevec online, Social channels have not been accounted for.  User experiences seem dated.  Reporting and analytics require experts to deliver.  Paucity in mobile solutions hinder productivity.

  • Regulatory compliance (24.68%). The need to meet industry specific regulatory compliance drive organizations to choose purpose built solutions.  Many choose SaaS to mitigate the costs of legislative and regulatory updates.

  • Geographic requirements (19.48%), buy cytoxan. Country or region specific requirements may require two-tier strategies based on geography.  Some ERP systems lack the language or tax requirements and a separate instance will prove cheaper to run than customizing a monolithic large ERP solution.

  • Existing systems too rigid (15.58%), Osta gleevec online. Acheter capecitabine discount, Rigidity may lead to the inability to integrate and work with other systems, new channels, kopen goedkope gleevec, Halvalla evista apteekki, and emerging stakeholders.  Integration solutions can assist, but long term, billige gleevec Apotheke, Nevada NV Nev., next gen IT leaders will begin to surround legacy solutions with newer technologies.


Figure 1. Two Tier ERP Strategies Gain Favor In Next Gen IT Leader Apps Strategies

screen-shot-2010-03-02-at-53732-pm


Figure 2.  Industry Requirements And Cost Drive Push To Two-Tier Apps Strategies

screen-shot-2010-03-02-at-53724-pm


The Bottom Line - Users Should Consider Scenarios Based On Business Models And Geographic Needs

Detailed apps strategy conversations highlight 3 scenarios where Two-Tier ERP strategies make sense.  A number of vendors have proven to be strong partners in enabling Two-Tier ERP (see Figure 3), iressa online store. Gleevec farmacia a buon mercato,


  1. Different business models. Organizations with very different lines of businesses often consider hub and spoke implementations.  The drive to standardize on a single ERP system makes little sense when one subsidiary delivers services and the other manufactures goods.  Several large multi-national conglomerates leverage more than two-tiers of ERP to handle a warranty business, financial services, North Carolina NC N.C., Evista no prescription, and power generation manufacturing.

  2. Country specific deployments. Deploying a full scale ERP solution makes little sense for new subsidiaries when options exist at lower operating costs and higher ROI.  One large Japanese manufacturer found cost savings with local based systems in North America and EMEA.

  3. Phased modernization efforts. Organizations looking to upgrade and modernize their systems may keep some legacy systems in place as they upgrade to more modern systems.  One large entertainment concern has kept their financials systems and updated their retail systems with a more modern, web services based, generic epogen, District of Columbia DC D.C., SOA architected product.


Figure 3. Vendors To Watch In Two-Tier ERP Apps Strategies

screen-shot-2010-03-02-at-71143-pm


Your POV. Buy cytoxan, Have you deployed a Two-Tier ERP strategy. How has it gone?  What's worked, comprar en línea cytoxan. Order cytoxan without prescription, What's not?  You can post or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity.

Please let us know if you need help with your enterprise apps strategy by:


  • Developing your enterprise apps strategy?

  • Addressing disruptive technologies like Social CRM, order arimidex online legally, Cloud Computing, SaaS deployment, and Two-Tier ERP?

  • Assessing the ROI of a Two-Tier ERP strategy?


* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.


Related Resources

20091203  Strategy: 5 Lessons Learned From A Decade Of Naught

20091222 Tuesday's Tip: 10 Cloud And SaaS Apps Strategies For 2010

20091208 Tuesday's Tip: 2010 Apps Strategies Should Start With Business Value

20091102 Best Practices: Lessons Learned In What SMB's Want From Their ERP Provider

20091006 Tuesday's Tip: Why Free Software Ain't Really Free

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Standard Support Returns After Much Deliberation

SAP announced today that they would be reintroducing their Standard Support offering.  Customers now gain choice Order cytoxan without prescription, with a 2-tier maintenance offering. Here are the details between standard support and enterprise support, comprar casodex. Georgia GA Ga.,


  • Standard Support Offering reintroduces at 18%. Customers seeking core bug fixes, gleevec kopen, Ordering capecitabine, support packages, risk mitigation, Mississippi MS Miss., Tennessee TN Tenn., and related new functionality will have choice in staying on standard support.  The program is designed for customers who seek to keep their systems up and running.  Customers with CPI clauses in their contracts will want to take note - the first set of consumer price index (CPI) price increases will begin January 1st, 2012.

  • Enterprise Support remains at 22%, pharmacy capecitabine. Iowa IA, SAP will continue to offer Enterprise Support at 22% for new customers and a ramp up for existing customers (see Figure 1).  Enterprise support includes features such as best practices for IT operations, proactive monitoring and reporting, acquistare online capecitabine, Goedkope casodex apotheek, and transparency for business process performance.  Customers who choose to go with Enterprise Support prior to March 15th, 2010 will be eligible for ramp up.

  • Supplemental offerings still available, buy zometa. Other programs such as Max Attention, Safeguarding, and Product Support for Large Enterprises (PSLE) will continue to be available by choice and invitation.


Figure 1, order cytoxan without prescription. Ordering evista overnight delivery, SAP's New Support Pricing Scale

[caption id="attachment_4087" align="alignnone" width="529" caption="(Source: SAP)"]screen-shot-2010-01-14-at-74603-am[/caption]

The Bottom Line - Best Support Scenarios Will Depend On Your Previous and Current Contracting Prowess

The good news - SAP's spent considerable amount of time listening to their customers.  The result - customers do want choice and there are plenty of choices to be made.  Decisions on which option is best can be best summarized by asking a few key questions:


  • Are you expanding your use of SAP in the next 3 to 5 years? Determine your pace of adoption for SAP products.  If you are planning to add more modules then you will want to consider Enterprise Support.  If you are not, then you should be moving to standard support and considering 3rd party maintenance in 12 to 18 months.

  • Do you have a CPI increase in your contract, capecitabine farmacia a buon mercato. Buy zometa online without prescription, If you do, then you'll want to see if the total is above the inflation rate or the enterprise support ramp up of 6% per annum.  The best case is to have negotiated CPI + 0% but most SAP customers have CPI +5% as standard, arimidex kopen, Arimidex online kaufen, well over the 6%.

  • What's your overall SAP apps strategy. How will you harness innovation within and around SAP?  What's your plan in the next 12 to 18 months?  What will you be doing with SaaS?  How will you be incorporating portals such as Sharepoint?

  • Can you make a decision on Enterprise Support by March 15, buy gleevec cheap, Order casodex online, 2010? Existing customers who have not moved to Enterprise Support must make a decision in order to go with the slow ramp up.  Those who wait after March 15, 2010 will start at 22% maintenance.


A sample output for clients would be a decision matrix based on multiple factors.  Below is one example for used with clients in an early morning call with 2 key factors of CPI increase in contract versus adoption of SAP.  Other factors will include when your contracts began and what lifecycle of adoption your organization are in, comprar iressa. Mississippi MS Miss., (See Figure 2):

Figure 2.  Sample SAP Support Decision Matrix

[caption id="attachment_4088" align="alignnone" width="599" caption="Copyrighted © 2001- 2010 R "Ray" Wang and Insider Associates LLC."]Copyrighted © 2001- 2010  R "Ray" Wang and Insider Associates LLC.[/caption]

Your POV

Need help with your contract negotiations?  Tap into the experience of thousands of contract negotiations.  Have a story to share about SAP contracts. Order cytoxan without prescription, Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity.

* Not responsible for any factual errors or omissions.  However, Osta zometa online, Buy zometa online cheap, happy to correct any errors upon email receipt.

Other Useful Software Contract Negotiations Links

Tuesday's Tips: Five Simple Steps To Reduce Your Software Maintenance Costs

Tuesday's Tip: Do Not Bundle Your Support and Maintenance Contracts, Michigan MI Mich.. Billige zometa apotek,

Tuesday's Tip: Software Licensing and Pricing - Do Not Give Away Your Third Party Maintenance And Access Rights

Tuesday's Tip: 3 Approaches To Return Shelfware

Tuesday's Tip: Software Licensing and Pricing - Now's The Time To Remove "Gag Rule" Clauses In Your Software Contracts


Related Blogs, Press, Nebraska NE Nebr., and Links

MUST READ - 2010017 Irregular Enterprise - Dennis Howlett "SAP's Maintenance Cost Sleight of Hand"

News Analysis: SAP Moves All Customers Onto More Expensive Enterprise Support

News Analysis: SAP and SUGEN Make Progress on Enterprise Support

20100115 SearchSAP.com/TechTarget - Courtney Bjorlin " Choosing Standard or Enterprise support more difficult for SAP customers with no KPIs "

20100114 IDC - Amy Konary at IDC "Guest Post: Back by Popular Demand, A Basic Maintenance Offering from SAP"

20100114 Forrester Blogs - Paul Hamerman "SAP's Tiered Support Announcement Diffuses a Contentious Issue"

20100114 IDG News - Chris Kanaracus "SAP shakes up support structure, executive organization"

20100114 Enterprise System Spectator - Frank Scavo "Flash: SAP backs down on 22% maintenance fees"

20100114 Information Week - Doug Henschen "SAP Reintroduces Tiered Maintenance"

20100114 ComputerWorldUK - Mike Simons "Update: SAP does U-turn on Enterprise Support"


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Competition Intensifies For The Small And Medium Organization's Software Budget
Order irresa, Software vendors such as Oracle and SAP can no longer rely on their large enterprise customers for double digit year-over-year growth.  In fact, their customers have not only reached a saturation point in being able to consume new solutions, but have also faced demands to cut their large maintenance bills.  With nowhere to go, enterprise apps vendors now turn to the small and medium sized market to drive their growth plans.  Consequently, billion to multi-billion dollar SMB stalwarts such as Infor, Microsoft, Sage, and Lawson are not standing still.  In fact, they seek opportunities to take market share from the industry leaders while fending off challenges from sub $500M SMB vendors such as Agresso, CDC Software, Deltek, Epicor, Exact, IFS, NetSuite, QAD, and Syspro.

Small And Medium-Sized Organizations Seek Enterprise Class Solutions Without The Resource Overhead

Globalization, irresa, Iresa, regulatory compliance, and economic demands results in similar market pressures for all sizes of business.  Size no longer plays a relevant role in business requirements.  In fact, irresa, Iresa, a recent survey of over 100 small and medium sized organizations, shows similar needs as large enterprises.  However, irresa, Irresa, small and medium-sized organizations can not afford the resource overhead required to maintain large and complex software systems.  The 10 areas that drive vendor selection decisions include (see Figure 1):

Figure 1. Small and medium sized organizations seek enterprise class solutions without the resource overhead

screen-shot-2009-10-24-at-82008-am


The Bottom Line - Ten Lessons Learned Emerge From Recent Vendor Selection Trends

  • Invest in last mile industry focused solutions.Customers expect their vendor to speak their language.  Solutions that lack vertical fluency and limited industry customer referencability will be relegated to the ERP graveyard, iresa. Irresa, Lessons learned: Demonstrate thought leadership in each vertical and lead industry discussions.  Focus on a handful of verticals.

  • Focus on rapid implementation and realization. Gone are the days of 12 to 18 month deployments.  Customers seek deployments times with less than 3 months, irresa.
    Lessons learned: Consider SaaS and OnDemand options.  Templates and productized roll-outs improve time to market but can't compete with  SaaS solutions and onDemand offerings in demonstrating value to customers.

  • Expand the number of trusted partners and vendors, order irresa. Irresa, As SMB's expand across the globe, they expect vendors to invest in trusted partners for both delivery and product footprint.  Customers expect partners to assist with localization in new geographies, iresa, Iresa, extend vertical solutions, and integration, irresa. Irresa, Lessons learned: Build partner ecosystems to geometrically expand reach while meeting customer needs.  No vendor can deliver on all customer needs.

  • Deploy easy to use reporting tools and BI. Value out of the box requires BI and reporting tools to be proactive and pervasive.  Users should have access to relevant and timely information along business processes, iresa. Irresa, Lessons learned: Design reporting tools with the end in mind.   Start with the value of information and embed throughout the business process.

  • Reduce administrative complexity and ownership costs. Order irresa, SMB's seek enterprise class capabilities sans the resource overhead of traditional large ERP products.  Business users need to be able to make changes and extend the system.  Ownership costs such as maintenance should deliver value or be reduced.
    Lessons learned: Design self-service administration capabilities from the get-go, irresa, Iresa, not an afterthought.  Software maintenance needs to deliver value or be offered in tiers based on perceived value.

  • Apply Web 2.0 style usability. Solutions should not require extensive training.  New generations of work expect the simplicity and ease of use from consumer based web applications, irresa. Irresa, Lessons learned: Invest in user experience and user interaction.  Design process flow based on role-based personas.

  • Improve stakeholder access. Employees, irresa, Irresa, partners, and customers must gain access to key business information.   Value should not be locked away from users when disconnected.  Mobile remains a future growth area, iresa.
    Lessons learned: Allow information to be accessed by everyone, everywhere, and at anytime.  New stakeholders will need access so apps should be designed with bullet-proof role based security.

  • Embed Microsoft Office Integration, order irresa. Irresa, Ability to use productivity tools should be a given.  Customers seek the ability to seamlessly integrate.
    Lessons learned. Success requires the design Office integration to be both a user interface and gateway into applications.  Clunky interfaces into Microsoft fail in adoption.

  • Deliver worry free updates, irresa. Customers should be able to update and upgrade software without significant time spent testing integrations and taking down the system.
    Lessons learned. Design application management into the system design.  Consider the business impact of down time.

  • Provide financing options Order irresa, .  Customers now expect vendors to provide financing to facilitate license purchases.  In many cases, clients seek financing to preserve cash position and add additional services such as training and implementation.
    Lessons learned. Use financing as deal enabler to drive not only license growth, but also larger deal sizes.  Financing is a weapon.



Your POV


Prospects and customers - do these requirements ring true?  Vendors -where are you with your SMB strategy. Let us know how we can assist.  Please post or send on your comments to rwang0 (at) gmail (dot) com or r (at) altimetergroup (dot) com and we’ll keep your anonymity.

Copyright © 2009 R Wang. All rights reserved.

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Buy Epogen

Connect.  Collaborate.  Innovate. Buy epogen, Welcome to the first of many Altimeter Group research reports.  Before you dive deep into the Customer Bill of Rights: Software-as-a-Service report, we wanted to share with you a bit about the research process and how we work within the community. Ordering cytoxan online cheap,


  • Connect.  We strive to bring new people together and share our knowledge.  Knowledge has no value unless others can put it to use.

  • Collaborate.  We believe in open collaboration with the market and ecosystem of thought leaders, influencers, αγοράσετε evista, Ordering arimidex online cheap, solution providers, and implementation experts.  In collaboration do we foster new relationships and opportunities to solve client problems.

  • Innovate.  We are thinking about what's next.  SaaS deployments and web-based solutions represent the future and we'll be looking for the next set of innovations.


Customer Bill of Rights - Software-as-a Service

Enjoy this report, ordering gleevec online. Buy generic epogen, It's been placed in Scribd for shared use.

AG Customer Bill of Rights - SaaS - Live

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Customer Bill of Rights: Software as a Service by R "Ray" Wang is licensed under a Creative Commons Attribution-Share Alike 3.0 United States License, buy epogen.
Based on a work at blog.softwareinsider.org, kjøpe billig casodex. Indiana IN Ind., Permissions beyond the scope of this license may be available at http://blog.softwareinsider.org.

Continue The Discussion On Linked IN

We've crepic_logo_119x32ated a group that you can join now that will carry the conversation further.  Sign up now and stay tuned for when the report goes out.  Look for more Bill of Rights to come. Customer Bill of Rights

Your POV.

Want to be part of the collaborative research process?  Got ideas for topics that should be reports?  Feel free to post your comments here or send me an email at rwang0 at gmail dot com or r at softwareinsider dot org, cheap gleevec. Maine ME Me.,

Copyright © 2009 R Wang. All rights reserved.

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This post has been cross posted on the Enterprise Advocates blog

A New Way Of Creating Research - Collaborative Input And Review Order zometa, Some time early next week, we (i.e. Altimeter Group's Jeremiah Owyang and I) will be publishing a Customer Bill of Rights - Software-as-a-Service.  Through the generous input of 57 collaborators and organizations, kopen goedkope cytoxan, New York NY N.Y., this document will serve as a reference, checklist, Connecticut CT Conn., Acquistare a buon mercato gleevec, and point of discussion with SaaS vendors for prospects and clients who have made the decision to begin a SaaS deployment.

Why A Customer Bill of Rights for SaaS, casodex ordine on-line. Kentucky KY Ky.,
SaaS deployments have entered the heart of the business and now deserve to be treated with all the rigor and due diligence of on-premise licensed software. Client - vendor relationships in SaaS are perpetual and it is imperative that these agreements provide a chance for a new slate, köpa billiga capecitabine. CIO's, CMO's, LOB execs, procurement managers, and other organizational leads should ensure that the mistakes they made in licensed software aren't blindly carried over, order zometa. Billig iressa apotek, The SaaS Bill of Rights (BoR) provides a tool for clients and vendors to change the tenor of contract negotiations from subservient to equal partnership.  Though not all these rights may be provided by the SaaS vendors today, these rights represent the best practices in over 250 SaaS contracts and reflect the general spirit and intent of most SaaS vendor's executive management teams, köpa rabatterade capecitabine. Billige zometa Apotheke, Thanks To Creative Commons For A Great Legal Platform For Collaboration

88x31 Creative Commons is a nonprofit corporation dedicated to making it easier for people to share and build upon the work of others, consistent with the rules of copyright.  They provide free licenses and other legal tools to mark creative work with the freedom the creator wants it to carry, buy cheap evista, Bestill arimidex online, so others can share, remix, zometa kopen, Ordering zometa from canada, use commercially, or any combination thereof.  We'll be setting up the license as a Creative Commons | Attribution| Shared Alike.  This means anyone can remix, Louisiana LA, Iressa for sale, tweak, and build upon this work even for commerciadonate-banner-skinnyl reasons, ordering arimidex online, Tennessee TN Tenn., as long as they credit us and license their new creations under the identical terms. This license is often compared to open source software licenses, cheap gleevec online legally. Cheap evista, All new works based on this one will carry the same license, so any derivatives will also allow commercial use.   If you get a moment, acheter cytoxan discount, Where to buy epogen, please donate to these guys.

Props To Collaboration And Great Ecosystem Input Order zometa, The Customer Bill of Rights: Software-as-a-Service report could not have been produced without the generous input from these individual influencers and the following vendors who have shown a keen interest in transforming the client-vendor relationship. Please keep in mind, buy gleevec overnight delivery, Arizona AZ Ariz., input into this document does not represent a complete endorsement of these rights in total by the individuals or vendors listed in this report.


The Thanks List: Star Influencer And Guru Inputs
Nenshad Bardoliwalla
Naomi Bloom, order evista from canada, Bloom and Wallace
Kevin Dobbs, Montclair Advisors
Bob Evans, TechWeb
Dennis Howlett, Enterprise Irregulars
Phil Fersht, Horses For Sources
Christian Gherorghe
Paul Greenberg, The 56 Group
James Governor, Red Monk
Erin Kinikin
Esteban Kolsky
Amy Konary, IDC
Michael Krigsman, Asuret
Frank Scavo, Computer Economics
Josh Weinberger, CRM Magazine


The Thanks List: SaaS and Solution Vendor Input

Agresso
Appiro
Boomi
Blue Wolf
Cisco Systems
CODA
Demand Media
Epicor
Everest Software
Flexera
GetSatisfaction
HelpStream
IBM
Infor
Informatica
Infosys
Intacct
Intuit
Jive Software
KickApps
Lithium
M-Factor
Microsoft
Mzinga
NetSuite
Panaya Inc
Patni
Pervasive Software
RightNow Technologies
Rimini Street
Salesforce.com
SAP
Social Text
SoftBrands
SuccessFactors
Sugar CRM
Telligent
Tenrox
Ultimate Software
UserVoice
VMWare
Workday


Continue The Discussion On Linked IN

We've crepic_logo_119x32ated a group that you can join now that will carry the conversation further.  Sign up now and stay tuned for when the report goes out.  Look for more Bill of Rights to come. Customer Bill of Rights


Your POV.

Want to be part of the collaborative research process?  Got ideas for topics that should be reports?  Feel free to post your comments here or send me an email at rwang0 at gmail dot com or r at softwareinsider dot org.

Copyright © 2009 R Wang. All rights reserved.

.

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Tuesday’s Tip: Call Vendors On Their Bluff About “Rev-Rec” And Software Maintenance Contracts

Vendor Sales Reps Keep Using An Age Old Excuse Out Of Habit Many organizations start their Q4 software maintenance renewals process in September.  This has led to a flurry of emails and phone calls about revenue recognition (a.k.a. "rev-rec") rules for software maintenance contracts.   Apparently, both customers and vendor sales reps suffer from mass confusion on this issue.  The result - a conservative but inaccurate stance from sales reps who use pat answer number 1 and tell existing customers that they can't discount their software maintenance because of rev-rec rules.  For good measure, they usually throw out all the real official sounding terms around AICPA Statement of Position (SOP) No. 97-2 and VSOE.  To customers, this reminds them of technical gobbleydegook and they glaze over this issue about software revenue recognition in despair. However what's true for how rev-rec works for license fees does not apply in most cases for software maintenance and support because:
  • Maintenance and support fees are adjunct or known as separate from license fees. Maintenance contracts may be based on license fee costs but these fees should be recognized as a separate stream of revenue.  More granular accounting will be required when licenses are bundled with one or more years of pre-paid maintenance, but the vendor should be able to carve out a value for this.
  • Post contract customer support (PCS) or what we call maintenance and support is ratable. Maintenance fees are recognized over the life of a contract.  For example, if you got a 1 year contract, then that's all you impact, not the entire license basis as some vendor sales reps would have you believe.
The Bottom Line - Call The Bluff And Ask The Sales Rep To Show You How SOP-72 Is Applied* Countering false claims on rev-rec will provide a key weapon in reducing maintenance fees in contract negotiations.  Challenge the vendor to explain their rationale.  When successful, clients can then ask the vendor to base maintenance fees on a reduced total account value without jeopardizing the vendor's insistence to hold to a maintenance fee percentage. Your POV. Have you encountered the rev-rec song and dance?  How have you pushed back on this issue?  Did you find any success with this technique?  Need some guidance?  Feel free to post your comments here or send me an email at rwang0 at gmail dot com. *standard disclaimers apply.  always check with your legal counsel and procurement experts before taking any action.