What Holds Back CRM Success: Executive Fear

What Holds Back CRM Success: Executive Fear By Christopher J. Bucholtz
CRM Buyer
Part of the ECT News Network
01/06/11 5:00 AM PT

If you're sitting around waiting for best practices, it means that someone else -- probably a competitor -- is out there working to develop them. With the speed that customer relationships are evolving, can you wait to copy your competitors? Are you willing to spot them a huge lead? If you're not willing to answer the bell now, will you really be able to catch up later?


"3 Payment Security Myths and Their Truths" - Payment Security goes beyond PCI Compliance. Understand 3 key myths and how they impede success, and learn an approach to Enterprise Payment Security to achieve successful Tokenization and PCI Compliance, without touching sensitive payment data. Learn more.

The past year seemed like one of marking time in CRM -- at least to me. The trends are all well spelled out: Social CRM will become a critical tool, service has grown in importance as customer acquisition has become more difficult, and the value of mobile CRM is becoming painfully apparent. So why aren't we acting on the trends?

I've heard the excuses -- most famously, "we need to understand the ROI on this before we launch any projects." That's not a great excuse, because ROI calculators are out there and ready for use, even for social CRM. Great or not, too often the excuses win out.

You've probably heard the mantra that CRM needs executive buy-in to succeed. That's true -- so true, in fact, that the opposite is also true. New trends in CRM need executive apathy and fear to fail.

The people working in the trenches are constantly receiving anecdotal evidence of the value of social CRM in helping with sales, marketing and service. The service team sees only too clearly how deficiencies in their processes are holding them back. The people in the field are relying on mobile devices for many things -- and they know that a capability to use their business software on their mobile devices could make them both more productive and more effective.

So the front-line people are ready, and the technology is ready. What's keeping many businesses from launching a CRM revolution? I like to call it "C-level fear."

Far too many executives operate from a position of fear when it comes to the customer. They continue to debate the idea that the customer is now in control of the relationship, because the loss of control is scary to them.

As a result, they soft-pedal emerging technologies, kicking the can down the road to a time not when their organizations are ready for change -- because that time is now -- but to a time when they have come to grips with how the customer is changing, and how that changes the expectations and duties of a C-level executive.

They're afraid of making investments that don't pay off, and they'd rather find themselves too far behind the competition than seem too far ahead of the technology curve.

The great default is the ROI argument. If an initiative can't produce visible ROI in a short period of time, it doesn't get a go-ahead. Investments should have payoffs, but the way those payoffs are evaluated should be fair and realistic.

A pilot program whose evaluation criteria doom it to failure from the start is not a good investment. An evaluation of an underfunded initiative after six months is not fair to those involved in it.

Worst of all, once a half-baked, half-hearted program based around social media, in-depth service or mobile technologies fails, the executives plagued by "C-level fear" can then use those doomed projects as evidence that all such projects will fail.

Another great dodge is the idea of waiting for best practices to develop. Best practices don't just evolve on their own -- they come about when someone actually tries something and then adjusts what they're doing.

Thus, if you're sitting around waiting for best practices, it means that someone else -- probably a competitor -- is out there working to develop them. With the speed that customer relationships are evolving, can you wait to copy your competitors? Are you willing to spot them a huge lead? If you're not willing to answer the bell now, will you really be able to catch up later?

If you want to succeed -- especially as a C-level executive -- you need to be audacious. You need to realize what the reality is around customer relationships, accept what you have control over, and act decisively to improve those things. What you should not do is default to excuses that merely mask the fact that you're uncomfortable with change.

One audacious move: If you're a C-level executive, get out of the office and talk to the front-line people about these ideas. Find out if social CRM, mobile CRM, new service metrics, or new types of analytics would solve their problems. If the answer is yes, you need to realize that you will not be alone in any effort to improve your CRM efforts -- if you're brave enough to respond by initiating change.

CRM Buyer columnist Chris Bucholtz blogs about CRM at Forecasting Clouds. He has been a technology journalist for 15 years and has immersed himself in the world of CRM since 2006. When he's not wearing his business and technology geek hat, he's wearing his airplane geek hat; he's written two books on World War II aviation, and his next two are slated for publication in 2010. Print Version E-Mail Article Reprints More by Christopher J. Bucholtz

Next Article in Strategy

A CRM Lesson From Sesame Street
December 30, 2010
As it tries to penetrate into small and even medium-sized businesses, the CRM industry often focuses on the totality of what CRM can do instead of the specific problems it can solve. It's critical to break down CRM for these audiences in a way that introduces them to the trees first, then the forest.

More by Christopher J. Bucholtz

5 Great Gifts Your CRM Users Will Love
December 23, 2010
Nothing is more frustrating than seeing or hearing things from customers that can impact your business, and then discovering your processes are so rigid that you can't find a way to put that information to work. If social media are not effectively integrated into marketing, sales and service processes, pearls of wisdom from customers are never strung together to improve things. The Lessons Antique Computers Can Teach About CRM
December 16, 2010
Back in the 1940s, if someone said, "We should figure out how artillery shells travel through the air," technologists could take a stab at it. However, without the details of the question -- like wind, projectile shape, etc. -- the results were likely to be poor and the investment would probably be viewed as a waste. Is that much different than what happens in a lot of poorly defined CRM deployments today? Breaking the Tech Terminology Barrier
December 09, 2010
If a vendor has a different definition of a technology than its intended customers, that disconnect can cost the customers millions in potential savings and can cost the vendors their businesses. This isn't just a problem for PRM. There are other technologies that orbit CRM -- the terms "performance management," "cloud computing," and even "social CRM" are often met with blank stares when you speak to business people.

Skype acquires Qik mobile video company

Zubair Ghumro (L) speaks to his friend Sheeraz Qazalbash using Skype software at an internet cafe in central London August 10, 2010. REUTERS/Paul Hackett

Zubair Ghumro (L) speaks to his friend Sheeraz Qazalbash using Skype software at an internet cafe in central London August 10, 2010.

Credit: Reuters/Paul Hackett

SAN FRANCISCO | Thu Jan 6, 2011 3:45pm EST

SAN FRANCISCO (Reuters) - Internet telephone service Skype said it acquired mobile video company Qik for an undisclosed amount.

Qik's service -- available on more than 200 mobile phones, including Android and Apple's iPhone -- lets users capture and share video across smartphones and the Internet, Skype said in a news release.

Skype, partly owned by Web retailer eBay Inc, is expecting to raise up to $1 billion in an initial public offering, sources familiar with the matter told Reuters in November.

Skype said the transaction to buy Redwood City, California-based Qik, with 60 employees, should be completed this month.

(Reporting by Noel Randewich; Editing by Steve Orlofsky)

Samsung seeks 15 percent TV sales jump

A reporter touches a 75-inch, full HD 3D LED television by Samsung Electronics during the first day of the 2011 International Consumer Electronics Show (CES) in Las Vegas, Nevada January 6, 2011. REUTERS/Steve Marcus

A reporter touches a 75-inch, full HD 3D LED television by Samsung Electronics during the first day of the 2011 International Consumer Electronics Show (CES) in Las Vegas, Nevada January 6, 2011.

Credit: Reuters/Steve Marcus

By Miyoung Kim

LAS VEGAS | Thu Jan 6, 2011 8:02pm EST

LAS VEGAS (Reuters) - Samsung Electronics Co is targeting 15 percent growth in 2011 sales of flat-screen TVs to 45 million units, and hopes to more than double shipments of pricier LED sets.

The world's largest maker of TVs aims to quadruple sales of 3D TV sets to around 8 million-9 million units this year, while aggressively promoting Internet-enabled TVs to goose up margins as severe price competition keeps profits razor-thin.

Shaken by their failure to inspire consumers in a recession with a new generation of TVs, major producers from Samsung, LG Electronics Inc to Sony all showed improved versions of 3D and "smart" TVs at the Consumer Electronics Show, hoping to grab a bigger slice of an emerging market where no single player dominates.

The fight over the connected living room, which enables viewers to hook up TVs to Web shows and software stored in the cloud and on personal computers, is not short of aspirants with technology heavyweights from Google Inc and Microsoft Corp to Apple Inc all joining the fray.

Samsung this year aims to sell 12 million Internet-enabled TVs, which sport access to its TV Appstore, video-streaming site Hulu and social networking sites such as Twitter. The 12 million figure would make up 27 percent of its total TV shipments this year.

"Smart TV is not a simple Internet-enabled device or a computer with a large screen and no keyboard," said Kim Hyun-suk, senior vice president at Samsung's TV division.

"It allows consumers to lean back and have access to all kinds of applications and content, and connect with other devices in the home."

SMART VS DUMB TVS

Samsung booked the biggest showing area among CES participants this year in Las Vegas to showcase a plethora of products from smartphones and tablets to TVs and cameras. It dedicated a large portion to Smart and 3D TVs in particular, betting the global Smart TV market would grow to 30 million units this year.

DisplaySearch estimates that 21 percent of all TVs shipped in 2010 have Internet connectivity, and the segment is expected to grow at double-digit rates over the next four years, swelling to 122 million units by 2014.

On 3D, Samsung attributed its slow takeoff last year to a combination of high prices, a lack of available content, and the discomfort of having to watch TV with heavy glasses.

"Most of those issues will be resolved to a large extent and the market will really take off," said Yoon Boo-keun, head of Samsung's TV division. "3D premium has fallen to an affordable level, content keeps growing and glasses have also become much lighter."

"When people buy a TV, they look for a product they can use for the next six to seven years. With all those issues addressed, consumers are now very likely to buy 3D sets."

In addition to a lack of 3D content, however, one of the biggest obstacles for the new technology to take off is different 3D formats.

Samsung, which controlled more than 50 percent of the global 3D TV market last year, is pushing for active-shutter glass technology, which requires special glasses with batteries, chips and switches to synchronize 3D signals from TV sets.

CES: Being There

The annual giant Consumer Electronics Show is happening this week in Las Vegas, and once again everything new in the electronics world is on display. I've been to a number of these CES events, and each seems bigger than the last. It is held not only in the very large Las Vegas Convention Center, but also at the Sands convention center and many other casino convention centers up and down the strip, between official and unofficial sites.

In fact, there are countless big tents with corporate logos pitched in parking lots. Maybe it's cheaper than setting up a booth inside -- who knows? Why else would they be outside in the winter? Even in the desert, it gets cold and rains now and then. This year, there's been an effort to curtail the show's growth by cutting down on the vast number of attendees. We'll see what that does.

If you have never been to the show, let me give you a tour. If you've been to any other trade show before and think you understand -- let me just say, no you don't. That was my first mistake.

First I arrive in town, walk off the airplane and am immediately thrust into the rush of people flowing toward the shuttle to baggage claim. The good part of all this chaos is you don't actually have to walk, because you are carried along. It's like floating in a rushing stream.

You come down the escalators and see the luggage racks, but then you look around and realize there is not any room for another human being down there. Yet your escalator thrusts more folks into the steaming mass. You are one of them. After a while you make it to your luggage rack to wait and pick up your bag. And wait. And wait. An hour later when you finally see it, you grab your bag and rush to the taxi stand.

You're free at last... you think... until you see the line for a cab. You realize this is like Disney World on its busiest day. A long line snaking back and forth and back and forth so many times you get dizzy.

Instead of waiting like everyone else, you decide to call for a limo instead, not thinking this may be their busiest time of the year too. What, there are no cars? You should have booked it months in advance? There are hundreds, if not thousands, of additional cars brought in from Los Angeles and other hot spots, but still no car for you? You are stuck in this taxi line waiting for a cab? Get used to it. That's life for the next few days.

By the time you actually get your taxi it feels like tomorrow. OK you are driving away from this crowd into Vegas. Now you are free at last. The cab driver is nice this time. He's happy because he's finally making some money I guess. Vegas has been slow the last couple years. He gives you the lay of the land. You say you can't believe how many people were at the airport. He laughs and says just wait.

Las Vegas has always been a hopping place until a couple years ago, when the president put a kibosh on the town. Suddenly shows canceled. People stopped coming. Money dried up. That threw this shining city in the desert into near financial turmoil. Tourism is its lifeblood after all. Avoid the town?

Vegas is finally starting to come back from that punch in the gut -- slowly -- but when CES is in town, it's like the good ole days. The good news is many of the big hotels have their SOLD OUT signs lit with pride.

I get to the hotel to relax before getting started, but find another long line to check in. After another long wait, I finally get my room. After checking email and freshening up, I grab my stuff and head out to the show.

The taxi stand at the hotel is just as obnoxious and long as at the airport. So I go to the bus, which will take me there more quickly, I hope.

I step off the bus and look around at all the people. There is a sea of people. Attendance at the show is expected to reach 120,000, and this is just the outflow. That's better than the 150,000 who attended in the past, but it's still enormous. There are 2,500 booths and about 1,200 of them are from overseas. This is truly an international show.

I walk in the doors and see the various entrances to the show. I get a map, which will make it easy to find the booths where I have appointments. I look at the map and cry. This is the largest floor I have ever seen, and this is only one of the many different floors where I have to be.

There I stand, in a mass of people, in one of many big convention center rooms, trying to find a needle in this haystack. Then the next needle, and the next.

To make matters worse, my first appointment is in this mass somewhere, but my next appointment is in a hotel up the strip. A short distance typically, but with this crowd there is no possible way to make it all happen. Interview after interview. This is an incredible zoo.

Then an idea pops into my head. Maybe next year, I will have a booth. Yeah -- then they can all break their neck to try and get to me. That's the ticket. But that is next year. For now, I have to battle the crowds like everyone else.

I've learned there are countless limos to take you from event to event if you have the right connections. Fortunately I do, sometimes. That makes navigating the crowd much more doable. Still I'm exhausted by 11a.m.!

When you are reading the stories from all the media covering the show, cut them some slack. They too are numb from the shoulders up trying to survive this massive human thrust, while at the same time trying to write something that everyone else in the world can understand.

We are better off reading the stories for a sense of what is new and what is coming, but not for a real sense of how it will compare, compete and perform in the marketplace. You get too wrapped up in the excitement of the event to be objective. It is too easy to disconnect from the world in your mind while rushing from news conference to briefing to interview.

OK, it's the end of the day. The show is over for the day. Thank goodness. Tomorrow is another day. Time to go back to the hotel for a little dinner and a good night sleep. Its 5 p.m. Vegas time, which means 8 p.m. to me.

Wait -- I forgot -- there are still a handful of party events I am scheduled for tonight at some of Vegas' hot spots. Don't get excited, though, these are not typical Vegas parties. They are full of the same dull or crazy people I've been battling all day, only this time we are battling for a crab leg while touring more booths. These can sometimes be interesting as senior executives are often present.

The booths at the show are huge. Actually they are like small cities. Companies like AT&T, Verizon, Sprint, Qwest and T-Mobile are always there somewhere. Now new companies like CenturyLink and Windstream may be getting involved. Google and Apple are now in the cellphone space, so it makes sense to see them there -- but Apple is never at CES. I wonder what it will announce at its show. Booths at these after-the-show events are smaller and more intimate.

Wireless and cellular always plays a role at the show, but this is not a wireless show. That is just one of many segments of the consumer electronics industry represented at CES. This is the place to see it all in action, even before it's in the marketplace.

Telecom -- wireless and wireline -- does play an important role in the consumer electronics industry, since it's the highway the cars ride on.

Now please excuse me while I grab a few shrimp and crabs legs from the table for nourishment. What... this is Vegas. Got a long night ahead looking at all the upcoming smartphones and tablet computers and 3D TVs with built-in coolers so you don't have to walk to the kitchen anymore. What will they think of next?

Jeff Kagan is an E-Commerce Times columnist and a wireless, telecom and technology analyst, author, speaker and consultant. Email him at jeff@jeffKAGAN.com.

Tackling the Big IPO Question

Though there are many benefits to bringing your company public, there are also disadvantages to be considered. Therefore, the process of deciding whether to launch an initial public offering should be a deliberate, well-thought-out process made by a team of professionals, including management, your board of directors (if you have one), financial advisors and attorneys.

There is no doubt that a well-executed plan to bring your company public can result in substantial financial benefits both to the stockholders and the company itself. It can make the difference between remaining a small, moderately funded company and becoming a large, well-financed organization.

Let's consider the pros and cons to such a critical decision.

If your stock is publicly traded, assuming that there is sufficient volume in the stock, there is constant access to liquidity both for the stockholders and for the company itself. A stockholder who needs fund merely has to sell shares in the open market. When the company needs additional funds, assuming that the business has been successful and market conditions are favorable, the company can execute a secondary offering by selling additional shares thus bringing more capital to the company.

In the vast majority of cases, a publicly held company is worth more than if it is privately held. For example, private companies often sell from anywhere between three to 10 times annual earnings (price/earnings ratio or p/e ratio). A publicly held company, assuming that it is in an upcoming industry, can sell from as much as 40 times earnings to 50 times or more.

A recent example of this amazing leveraging phenomenon is Priceline.com. In early December of 2010, it had a p/e ratio of about 44. This means that people were willing to pay 44 times annual earnings for a share of stock. Would you be willing to buy a privately held company for 44 times its annual earnings? Unlikely!

Price/earnings ratios go into the stratosphere when investors anticipate that the company has great prospects for increased future earnings. They are, in effect, discounting the future anticipated earnings and relating them to the present value of the company's stock.

Let's look at this from another perspective. If on a particular day you owned a privately held company that could be sold at a p/e ratio of five, and you decided to go public with your company, that same company, depending upon market circumstances, could be worth 44 times annual earnings once it became public. In other words, your investment would jump more than 800 percent on the day you went public with your company.

I realize that this is a simplistic example. However, there is no doubt that a publicly held company is usually worth much more than a similar privately held company. It is a matter of market dynamics -- the universe of buyers dramatically increases once the company is publicly held.

An additional benefit relates to the liquidity of your shares. Again, there is no doubt that the shares of a publicly held company are generally far more liquid than those of a privately held one. Again, it is a matter of market dynamics. There are simply more buyers out there (a larger universe) for a public company than there are for a private company.

This liquidity can provide you, the owner/shareholder, with a ready source of cash. The liquidity can also be used for estate planning purposes or, for that matter, any other cash needs that you, the stockholder, might have.

This financial alchemy -- the skyrocketing value of a company and the liquidity of its stock, once it's public -- is certainly a major driving force impelling people to take the plunge and bringing their company public. But, what are the disadvantages?

There are, however, downsides to going public. First of all, there are many business owners who don't want the world to know how much their annual salary is. When a company is public, this information is available in its filings with the Securities & Exchange Commission. Likewise, there are also many business owners who don't want to answer to a regulatory authority, namely, the SEC.

The reality of the situation is that being public creates a long list of regulatory requirements, such as the need for an independent board of directors, the need to file certain documents on a regular basis with the SEC, and the general scrutiny that comes with being a public company. Obviously, these hurdles are not insurmountable -- just look at how many companies are publicly traded!

The fact remains, there are entrepreneurs who are running profitable companies who just don't want the scrutiny and additional reporting requirements that come with running a company whose stock is publicly traded -- and they don't want to spend money for additional accounting, legal, and reporting costs.

The quick answer to this question is that you should surround yourself with seasoned legal, accounting and financial advisors -- people who know the terrain and can guide you through it in a rather seamless fashion.

Given that, there is an alternative to a regular IPO that your lawyers can explain to you. This is a so-called reverse merger, in which your company's shares are exchanged with the shares of a publicly held shell corporation. Your company will be the surviving company, with the original shareholders of the shell owning a minority of the stock of your company.

This sounds like a complex process, but it really isn't. Let's say that a company that is public goes dormant for one reason or another. It could be that its business model just didn't work out and the shareholders decided to keep the public entity public, though there is no real activity in it -- no revenue and no expenses to speak of.

However, the shareholders realize that although the company has no value as a going concern, it does have value in that the stock of the company is publicly traded and it is a reporting company -- meaning that it is filing the requisite reports with the SEC. There are people who will pay a handsome price for a reporting corporate shell because they realize that it is a vehicle that can be used as a quick route to being publicly traded.

Whatever route you decide to take -- going public or remaining private -- your best bet is to make that decision after serious and lengthy consultation with your advisors. Their input is invaluable and can save you time, money, and headaches in the long run.

Good luck!

Theodore F. di Stefano is a founder and managing partner at Capital Source Partners, which provides a wide range of investment banking services to the small and medium-sized business. He is also a frequent speaker to business groups on financial and corporate governance matters. He can be contacted at Ted@capitalsourcepartners.com.

Amazon Plans to Go Google One Better With Android Appstore

Amazon (Nasdaq: AMZN) came a step closer to opening its Android Appstore Wednesday by opening a portal for developers. The portal allows app makers to submit their wares to the Internet's largest online retailer so they can be part of the outlet's offerings when its virtual doors open later this year.

Amazon is launching the Android Appstore as a service to its customers, according to spokesperson Anya Waring.

"Given the sheer number of apps available today, it's really hard for customers to find high quality and relevant products at great prices," she told the E-Commerce Times.

Amazon proposes to address quality issues in the app market by reviewing each and every entry before it's sold in the outlet. In addition, customers will be able to review and rate apps, as they do other products sold by Amazon.

As for consumers discovering and finding apps, Amazon's powerful search and recommendation system will also be part of the store.

A criticism of Google's (Nasdaq: GOOG) Android Market has been that it's hard to find things in it and there isn't a lot of information there about the apps.

"If Amazon does it a lot better and puts it together in a way so consumers can find what they're looking for, it would be very appealing," Mark Beccue, an analyst with ABI Research, told the E-Commerce Times.

Amazon has spent years developing innovative features to help customers find and discover relevant products, spokesperson Waring explained.

"We're excited to take those key learnings and innovations and apply those to the apps market segment," she said.

What's more, the store will use Amazon's smooth checkout system for ringing up apps bought by consumers. One of the knocks against Google's Android Market is that paying for apps is limited to Google checkout or Paypal.

Developers, who will receive 70 percent of the sale price of their apps, may also benefit from Amazon's mature payment system.

"There has been some reports of the Android marketplace not working that well for developers in terms of getting paid," Beccue noted.

An added bonus Amazon is offering developers who sell their wares through the retailer's app store is the ability to protect their programs from unauthorized copying through Digital Rights Management.

The prospect of selling to Amazon's 10 million customer base is attractive to some developers.

"It's nice to have a channel with Amazon's market power to sell apps through," Joshua Greenman, president of Mercury Development, told the E-Commerce Times. "However, it's a little disconcerting that developers may have to maintain apps across multiple app stores, which is more work."

With sales spread across several stores, users can get a distorted view of an app's popularity because they can't see an aggregate download number, he explained.

It's not likely that the review process at the Amazon store will improve the apps sold there, in Greenman's view.

"The only thing that will improve the quality of the apps will be less fragmentation in the Android market, which will make it easier and less expensive to make an app that runs on all phones," he maintained.

Anything that improves a shopper's ability to find an app from a computer will help developers, according to Casey Davis, chief system architect at GravityJack.

Finding an app in the Android Market from a mobile phone is easy enough, he explained, but finding one online is more problematic.

"Google made this huge mistake when they didn't index their own marketplace and make it available to people who want to browse it on the Web," he told the E-Commerce Times.

Google did not respond to the E-Commerce Times' request for comment on Amazon's Appstore. But since Google's approval was needed before plans for the store could proceed, it appears that the search giant is unconcerned about competition from the outlet.

"Google could have said no," Beccue said. "It's saying, 'Come on in. See if you can do it better. That's fine.'"

Apple launches app store for Macs, a la iPhone

Customers check Apple laptops at the new Apple Store at Pudong Lujiazui in Shanghai July 10, 2010. REUTERS/Aly Song

Customers check Apple laptops at the new Apple Store at Pudong Lujiazui in Shanghai July 10, 2010.

Credit: Reuters/Aly Song

By Gabriel Madway

LAS VEGAS | Thu Jan 6, 2011 8:46am EST

LAS VEGAS (Reuters) - Apple Inc is launching an applications store for Mac computers, replicating a model that proved wildly popular on its iPhones.

Apple is hoping to capitalize on Macs' surging sales as it aims to change the way software is sold for its computers -- centralizing distribution, simplifying discovery and leaving Apple as a gatekeeper of sorts.

The Mac App Store, similar to the iPhone App Store and linked to iTunes accounts, went live on Thursday offering more than 1,000 apps, or programs. The store is launching in 90 countries with paid and free apps in areas such as games, design and education.

Phil Schiller, Apple's senior vice president of marketing, highlighted the ease of use of the store, which he said will be familiar to anyone who has bought iPhone apps.

Apple hopes to lure new software developers to the Mac, Schiller said, and simplify access to programs, which users currently buy in disk format or download from websites.

He said the success of the iPhone app store "absolutely exceeded our expectations," but declined to make any predictions for the Mac store.

Long-time Apple watcher Tim Bajarin of Creative Strategies called the Mac app store "an important milestone for the industry that puts a nail in the coffin of shrink wrapped apps and moves them now to direct downloads."

He predicted that Apple's PC rivals will move to adopt a similar model.

APPS, APPS EVERYWHERE

As with the iPhone, Mac app developers set the price for their apps and get 70 percent of the revenue from sales, with Apple taking the remaining 30 percent. Purchases are made via users' iTunes accounts.

Apple will sell its own software in the store, including the iLife and Aperture programs. Companies like Autodesk, which makes complex engineering and design software, will also sell software.

Schiller said Apple will apply technical standards and criteria for approving Mac apps similar to those it uses on the iPhone. For example, the company does not allow pornography.

Apple has less than 5 percent of the global personal computer market, but it is the No. 3 vendor in the United States and rising fast, growing far faster than the overall market.

It would be a tall order for Mac apps to match the popularity of iPhone apps.

Apple launched the iPhone store in mid-2008 and it proved to be an instant hit, driving sales of the smartphone and helping reshape the way mobile content is delivered.

Data security center in Utah targets cyberspace

By James Nelson

CAMP WILLIAMS, Utah | Thu Jan 6, 2011 8:17pm EST

CAMP WILLIAMS, Utah (Reuters) - A $1.5 billion dollar National Security Agency data center under construction in Utah will be an important step in dealing with rising volumes of information in cyberspace, officials said on Thursday.

The NSA will utilize the massive facility, which will be built under direction by the U.S. Army Corps of Engineers, to gather and process information from different branches of the U.S. intelligence operations.

"It's a very important step in protecting the interests of our country. Banking, financial interests, Internet and national security. This is an important step forward in all of those," U.S. Senator Orrin Hatch told Reuters at a groundbreaking ceremony for the Data Center.

Officials tout the data center mission as providing technical assistance to the Department of Homeland Security, provide intelligence and warning to cyber threats and carry out cyber-security objectives.

"Just as we defend our lands, America also needs to defend cyberspace," Hatch said. "The Data Center will be part of our expanding efforts to defend our Department of Defense computer systems from cyber attack, and will play key role in helping Homeland Security keep our government's civilian computer systems safe."

The new center will be built on a 240-acre site within the Camp Williams military compound. When completed in 2013 it will provide 100,000 square feet of computer space and one million square feet of total space.

The Utah site was picked over 37 other potential sites.

Hatch pointed to Utah's higher education institutions, language facilities and the large number of people who speak multiple languages as selling points.

Officials estimate that up to 10,000 people will be employed in construction and development of the data center. Upon completion 100-200 people will be permanently employed at the center.

(Editing by Dan Whitcomb and Peter Bohan)

Apple Opens Mac App Store... Meanwhile, at CES...

Apple (Nasdaq: AAPL) opened the virtual doors of its Mac App Store on Thursday as scheduled.

There are more than 1,000 free and paid apps in the store, the vendor claims. These apps will run on Mac OS X v10.6.6.

Prices range from about US$15 to about $80.

Meanwhile, AT&T (NYSE: T) also announced on Thursday that it's slashing the price of the iPhone 3GS to $49.

There's speculation that the two companies coordinated their announcements to steal some thunder from the Consumer Electronics Show, which is being held in Las Vegas this week.

The Mac App Store is available now as a software update for any Mac running Mac OS X Snow Leopard. To update the OS, users have to open the Apple menu in the top-left corner of the Mac screen; choose "Software Update," and follow the instructions.

For easy browsing, Mac App Store is divided into categories including games, education, graphics and design, productivity and lifestyle. Users can also search the store for a specific app. They will be able to read developer descriptions and user reviews, and flip through screenshots.

Apps include iPhoto; iMovie and GarageBand from Apple's iLife 11 suite, offered individually at about $15 each. Pages, Keynote, and Numbers apps from iWork are available individually at about $20 each. Apple's Aperture 3 photo editing and management package is available at about $80.

Other apps include "Compartments," a home inventory app; the "Flight Control HD" game; "LittleSnapper," a tool that takes and catalogs screenshots, Web shots and screen captures of Web pages; the "Pixelmator" image editor; and "SketchBook Pro," a digital sketchpad app.

Users who want to download an app from the store enter the same iTunes password they use to buy music and apps on their iOS devices.

The Mac App Store keeps track of users' apps and notifies them when updates are available. Users can update one app at a time or update all apps that need it at the same time.

Users can install apps on every Mac they use and download them again if they buy a new Mac and want to install apps they already own.

The Mac App Store is "a very clever move on Apple's part," Andrew Eisner, director of community and content at Retrevo, told MacNewsWorld. "Apple's just repackaging applications and taking advantage of the fact that it has people's credit cards."

Still, the idea may go over well with consumers.

"I think people like the idea of bite-sized easy transactions," Eisner remarked. "Apple now has small, medium and large apps for smartphones, tablets and Macs, and the apps will be priced accordingly."

In the long run, Apple might unbundle applications from the Mac OS and offer them solely on the Mac App Store so that Mac owners can get only the apps they need, speculated Charles King, principal analyst at Pund-IT.

"That would likely position Apple as helping to maximize customer choice," King suggested. This unbundling would likely be principally aimed at consumers, although it might be extended to business users.

Apple might port some of the apps for its iOS devices to the Mac, Eisner speculated. "They know software moves hardware."

Might Apple take things one step further and eventually create just one operating system for its laptops, desktops, and mobile devices?

"I suppose that's possible, but it would require processors capable of delivering notebook-quality performance with tablet-style battery life," Pund-IT's King told MacNewsWorld.

"Not any time soon, in other words," he added.

The timing of Apple's Mac App Store opening on Thursday, along with AT&T's iPhone 3GS price-slashing on the same day, sparked speculation that the two companies moved in tandem to draw some attention away from the Consumer Electronics Show, where the latest Android-based smartphones and tablets are making their debut.

"That's a reasonable assumption," Pund-IT's King said. "Despite not attending CES, Apple is a huge force here in the form of accessories for its iPhone and other devices."

Cupertino needs to fly the flag during CES because the show "represents the most severe threat to Apple's current position through vendors displaying a wide variety of powerful and attractive phones, tablets and media devices," King pointed out. "So Apple doing whatever it can to divert attention from CES seems a wise move."

However, Retrevo's Eisner isn't so sure that AT&T is in on the deal. After all, Radio Shack and Best Buy (NYSE: BBY) slashed prices for the iPhone 3GS in December.

"Sure, anybody in Apple's camp will try to distract attention from CES, but gee, a two-year-old phone for $49? That's new?" Eisner asked. "This kind of old technology won't do it."

Qualcomm Tucks Atheros Into Its Arsenal

Qualcomm Tucks Atheros Into Its Arsenal By Rob Spiegel
E-Commerce Times
01/05/11 12:16 PM PT

Qualcomm's acquisition of WiFi technology company Atheros is drawing generally positive reactions, since it will be able to maintain its core strengths while advancing into new markets. There are a couple of companies that might not be so sanguine about the deal. Broadcom will begin feeling the heat, and Texas Instruments could also break a sweat.


Do you know how much you're spending on software your users never use? Find out Today. Download a free 30-day trial of Asset Manager today! ScriptLogic Asset Manager ? Relief for your Irritable Budget Syndrome.

Mobile technology giant Qualcomm (Nasdaq: QCOM) announced Wednesday that it plans to purchase Atheros Communications, a leader in wired and wireless technology connectivity, for US$45 per share in cash. Qualcomm rose 2.22 percent and Atheros stock rose 1.07 percent following the announcement.

The acquisition underscores the importance of wireless technology in the rapidly growing smartphone and tablet market.

"It is Qualcomm's strategy to continually integrate additional technologies into mobile devices to make them the primary way that people communicate, compute and access content," Paul E. Jacobs, chairman and CEO of Qualcomm, said in a statement.

Qualcomm and Atheros did not respond to the E-Commerce Times' requests for comment by press time.

Atheros is Qualcomm's largest acquisition in its 25-year history, and it shows the company's desire to expand beyond providing chips for wireless voice technology and into smartphones and tablets.

Prior to the acquisition, Qualcomm was already using Atheros technology. The companies share a long history of collaboration, said Atheros CEO Craig H. Barratt in Qualcomm's statement announcing the deal. Barratt will become president of Qualcomm's Networking and Connectivity unit.

"Atheros helped Qualcomm with the its software stack for WiFi," noted Philip Solis, research director at ABI.

Now Qualcomm wants to sell its technology to Atheros' customers.

"Qualcomm is buying Atheros for its market. They want to take the relationship and build on it," Solis told the E-Commerce Times. "They're buying new market and expanding to the home networking market."

Improving chip technology is important to Qualcomm because of the growing demands of the mobile market.

"This acquisition will allow Qualcomm to enhance the value of its connectivity chip portfolio," said Sravan Kundojjala, senior analyst within Strategy Analytics' handset component technologies service.

"Historically, Qualcomm was not a major player in the stand-alone connectivity IC market," Kundojjala told the E-Commerce Times. "Qualcomm successfully integrated GPS functionality into its basebands, but couldn't repeat the same for WLAN, Bluetooth and FM."

The Atheros acquisition settles that.

Qualcomm's acquisition will change its position in the market considerably.

"The Atheros acquisition will allow Qualcomm to apply pressure on Broadcom (Nasdaq: BRCM), which appears to have a broader wireless portfolio than Qualcomm including NFC (near field communications)," said Kundojjala. "By our estimates, Broadcom ranked number two in the wireless semiconductor market -- excluding memory -- in the third quarter of 2010 and is growing rapidly. Although Broadcom is a minor player in the cellular baseband market, the company is still ahead of many wireless companies in terms of wireless revenue, thanks to its connectivity business."

In addition to pressuring Broadcom, the move pushes at Texas Instruments (NYSE: TXN).

"TI currently draws its wireless revenues from OMAP applications processors, connectivity chips and Nokia's (NYSE: NOK) custom basebands," observed Kundojjala. "TI is expected to complete its exit from the baseband market by 2012. The lack of baseband products could leave TI without any apparent synergies between its applications processors and connectivity chips, and may force TI to divest its remaining wireless business."

The result for Qualcomm is maintaining a strong position in its existing market while moving into new territory.

"Overall, we believe that this acquisition will allow Qualcomm to expand into adjacent markets and also apply more pressure on its key competitors," Kundojjala concluded. "Qualcomm successfully executed integrating applications processors into its basebands and became the number one player, and now the company is trying to further the success by integrating connectivity."

Print Version E-Mail Article Reprints More by Rob Spiegel

Next Article in Deals

Goldman Gives Facebook a $450M Lift
January 03, 2011
Facebook is gearing up to compete in the major leagues, and it just got a strong helping hand from Goldman Sachs, to the tune of $450 million. Goldman partner Digital Sky poured another $50 million into the social network, which brings its valuation to a cool $50 billion. "There's a feeding frenzy around this property," noted tech analyst Rob Enderle. "Facebook has to grow very quickly."

More by Rob Spiegel

IPO Waters May Be Just Fine for LinkedIn
January 06, 2011
LinkedIn appears to be gearing up for an IPO in the near future, while Facebook appears to be trying hard to avoid one. LinkedIn doesn't have the massive infusions of private investments that Facebook has attracted, though, and so an IPO makes perfect sense. "I can't think of a better time for a company like LinkedIn to go IPO," said Pund-IT analyst Charles King. "The market is ready for this." Motorola Is Dead - Long Live the Motorolas
January 04, 2011
Investors are cheery now that Motorola has completed its long-anticipated split into two separate, more-focused firms, but there's still some nostalgia over the passing of the 83-year-old corporate titan. "In some ways it's sad," remarked In-Stat analyst Allen Nogee. "The big Motorola of the past is gone, but the truth is it has faded away slowly over the last several years." Survey Surprise: Online Content Doesn't Have to Be Free
December 30, 2010
Though there's still plenty of experimentation with different business models, online content providers are finding that many consumers are actually not averse to paying for content they value. In fact, the Pew researchers discovered a surprising willingness to subscribe to newspapers and magazines online.

T-Mobile USA to double network speeds

LAS VEGAS | Thu Jan 6, 2011 4:30pm EST

LAS VEGAS (Reuters) - T-Mobile USA plans to start doubling the speed of its high-speed wireless data network this year to 42 megabits per second, joining a race toward higher-speed networks to make its service competitive with Verizon Wireless'.

T-Mobile USA, a unit of Deutsche Telekom, also told reporters at the Consumer Electronics Show it would not charge a premium fee for its highest-speed wireless service, directing a thinly veiled dig at bigger rival Sprint Nextel, which charges extra for its advanced service.

Its bigger rivals Verizon Wireless and AT&T Inc also chose CES to showcase their fastest networks and unveil gadgets intended to take advantage of blazing Web speeds.

The No. 4 U.S. mobile service is looking to get more out of its existing network technology because it would need new wireless airwaves to go to new technology known as LTE, which its rivals are investing in.

Chief Executive Philipp Humm said the company has plenty of wireless airwaves to support its services for the next two to three years, but is currently looking at multiple options for ways to expand its spectrum holdings and go beyond this.

"The most important thing is for us medium-term will be to have additional spectrum," Humm told Reuters on the sidelines of the event.

Options could be to buy spectrum in a government auction or from smaller provider Clearwire Corp. T-Mobile USA is also looking at the potential for a partnership where it could use the Clearwire network or one being planned by a new company Lightsquared.

But Clearwire needs more funding to expand its network while Lightsquared, which also needs new funding has yet to build its network.

In the meantime, T-Mobile USA said the speed upgrade announced Thursday will be a relatively cheap software upgrade but would allow it to compete head-to-head with Verizon Wireless, a venture of Verizon Communications and Vodafone Group Plc.

"With 42 and LTE, there's very little difference," T-Mobile USA Chief Technology Officer Neville Ray said.

T-Mobile USA currently offers services of 21 megabits per second in markets with 200 million people. It expects to be able to upgrade two thirds of its current market footprint to 42 megabits per second this year.

It sees customers opting for higher-speed networks in order to use applications such as video conferencing or multi-player gaming.

(Reporting by Sinead Carew; editing by John Wallace, Bernard Orr)

E-Commerce Times

Sorry, I could not read the content fromt this page.

The Towering E-Commerce 3.0 Wave

The Towering E-Commerce 3.0 Wave By Margot McShane
E-Commerce Times
01/05/11 5:00 AM PT

Beyond the universal objectives of growth and profit, companies need to address the strategic goals around e-commerce before they begin the hunt for the perfect e-commerce executive. For example, what are the multichannel strategies? Is the aim to boost online sales, drive foot traffic to stores or both? Addressing a host of strategy points like these is vital, because it will help dictate whom to hire.


"3 Payment Security Myths and Their Truths" - Payment Security goes beyond PCI Compliance. Understand 3 key myths and how they impede success, and learn an approach to Enterprise Payment Security to achieve successful Tokenization and PCI Compliance, without touching sensitive payment data. Learn more.

Not since Amazon (Nasdaq: AMZN) started selling books more than 15 years ago has the world of e-commerce undergone such a wholesale transformation. The current online overhaul will likely be even more profound than the original dot-com boom, as it's unfolding across the entire retail sector as opposed to just a few business areas.

Today, some of the biggest brand names in storefront shopping are suddenly investing heavily in their once-neglected dot-com units. Other businesses that previously leveraged websites exclusively for branding are now embracing the opportunity to sell online (be it on a website, mobile phone or tablet). Not to be left out, even consumer-product makers are beginning to use the Web to sell directly to consumers.

The secret about e-commerce is out. The Web holds the promise of higher growth rates compared with strictly brick-and-mortar operations. Online profit margins are typically higher than storefront, and independent research suggests that multichannel customers -- those who shop online and in the store -- are more valuable than pure store-only or Web-only buyers.

Indeed, the days of store vs. Web are quickly dissolving in favor of a multiplatform ethic: Merchandising, operations and marketing are becoming integrated and "channel agnostic." Some retailers, for example, are using their online platforms to drive people into the stores to finalize the actual purchase.

This inexorable and expanding trend has created a heavy demand for seasoned e-commerce leaders, but there are pitfalls for companies along the way. Before launching -- or relaunching -- an e-commerce initiative, businesses would be well advised to grapple with several issues, including whether or not an e-commerce unit should be housed at headquarters along with everyone else or at a dot-com talent center that's two, three (or even more) time zones away.

Additionally, will the e-commerce unit command its own tech resources, or will IT be shared by many departments? Finally, finding a so-called right-size leader for a rapidly growing business is a particularly challenging task.

Where should e-commerce be housed? For most companies and CEOs, that probably seems like an easy one: E-commerce should be at headquarters. The logic for having everyone in the same physical space is sound, especially if the point is to integrate e-commerce with the rest of an organization.

A one-roof structure will enable the e-commerce team to forge strong and positive relationships with colleagues. It also means that e-commerce won't be out of the corporate loop, won't have to be updated separately, and won't develop a culture that's at odds with the company's values. Staying in the loop when the loop is 1,500 miles away can be a challenging and distracting task. That's the conventional wisdom.

However, in certain circumstances, there are strong arguments to be made for having e-commerce located elsewhere -- a different city, perhaps another region with a unique culture. One compelling reason is that some companies find it difficult to attract high-caliber e-commerce executives to their headquarters location, so launching a unit where tech talent congregates can open up a whole new range of prospective hires.

For example, the e-commerce organization of one well-known big-box retailer is based in the San Francisco Bay area -- even though the corporate headquarters is situated far away.

Other retailers have concluded that if their e-commerce organizations are to thrive, they need to sit elsewhere to get out of the shadow of the stores -- truly making e-commerce a separate division. That scenario also favors the concept of locating near an e-commerce talent center and away from the corporate campus.

Deciding to house e-commerce elsewhere shouldn't be undertaken lightly, and it's typically done when a mid-size unit is growing to the next level. In order to make it work, the head of e-commerce, the CEO and relevant C-level colleagues all will have to make a concerted effort -- perhaps even a meticulously scheduled and rigid one -- to communicate often and openly.

Once companies figure out where a new e-commerce team will live, the next step is establishing who reports to whom, and this is particularly essential with a firm's existing tech/IT department. Many e-commerce executives assigned to create or expand Web-retail operations will typically assume that tech/IT will be reporting to them. The reasoning is that they will need dedicated and undistracted IT personnel to focus on e-commerce assignments. Furthermore, if IT reports elsewhere and e-commerce doesn't meet its targets because of an overextended IT department, then who is held accountable?

"It's definitely something to be concerned about," one veteran e-commerce executive told me. "It doesn't mean it can't work, but if you don't control your own team, it can be a warning sign that you won't be able to get your job done."

A shared-services approach isn't doomed to failure, though. Some executives actually thrive in that kind of environment, especially those who excel at collaboration and relationship-building. The bottom line is that being clear and spelling out the lines of structure, reporting and accountability will help avoid problems when it comes to launching a new e-commerce initiative.

Beyond the universal objectives of growth and profit, companies need to address the strategic goals around e-commerce before they begin the hunt for the perfect e-commerce executive. For example, what are the multichannel strategies? Is the aim to boost online sales, drive foot traffic to stores or both?

Will the purpose be to push customers to purchase online but return merchandise in stores? Is the point to gain online market share as rapidly as possible despite short-term costs? Perhaps the mission will be to implement sophisticated customer-relationship strategies to maximize loyalty and lifetime value?

What's the time frame for getting there? What kind of investment will it take to achieve success?

Addressing these strategy points is vital, because it will help dictate whom to hire. There is a big difference between an e-commerce executive who knows how to build a business completely from scratch compared to one who can take a $50 million enterprise and triple the revenue. Still another executive would be the right person to take a $300 million business and turn it into a $1 billion enterprise.

Companies also need to make sure they've got an e-commerce leader who will be around for a while. Disruptions in leadership cost time and money, and that's why it's becoming increasingly common for companies to consciously hire someone who is "too big" for an existing business. The expectation is that the executive will be the right person to handle the organization's future size and tap its fullest potential.

If executed properly, e-commerce is poised to win an ever-increasing share of income across a range of businesses. So finding the right leaders and grappling with the common mistakes are worthy and essential challenges. By focusing on these critical issues, companies should be able to find a thriving pool of candidates to manage their next wave of digital business.

Margot McShane is a consultant in the consumer sector at Russell Reynolds Associates, an executive search and assessment firm. Print Version E-Mail Article Reprints Author Search

Next Article in E-Commerce

Governments Getting Into the Online Gaming Game
January 04, 2011
Current online gaming sites police themselves, which can potentially leave users and the system open to fraud, cheating and other illegal acts. As such, the respective governments believe that offering online gaming in a licensed, regulated environment will create standards regarding who can play, ensure responsible gambling, and thereby improve accountability.

This Year, Getting There Is the Challenge

This Year, Getting There Is the Challenge By Denis Pombriant
CRM Buyer
Part of the ECT News Network
01/05/11 5:00 AM PT

Peak oil or no peak oil, the outlook on rising fuel costs -- $5 a gallon by 2012 -- is worrisome when you consider your business' transportation costs. Travel is becoming more expensive, so this is the year to anticipate changing your front-office business processes and begin to do something about it.


Learn how the top retailers create sites and apps that sell.
Read our free whitepaper on best practices for mobile, ecommerce, and sites used by companies like Google, Microsoft, AOL, and more.

The cost of business travel is going up and up and up and, oh yeah, Happy New Year.

Forget all the CRM prognostications you've been reading over the holidays, the only one of significance to your business and to CRM is what you'll be paying to get in front of customers. Last week a former Shell Oil president, John Hofmeister, gave an interview on CNN Money in which he forecast US$5 per gallon gasoline by 2012.

With the national average for unleaded regular at $3.07 last week -- a rise of 42 cents over the course of 2010 -- prices are as high as they've been in a couple of years. This would be good news for an ailing economy because increased energy use goes hand in hand with increasing economic activity. But at the same time, runaway fuel prices have the potential to shred your SG&A line and tank the economy once again.

This kind of cyclical boom and bust is in the offing unless we get a handle on the transportation costs that are such a big part of front-office business processes. You don't need to be told this, but gas prices, diesel and jet fuel prices move in parallel, which just about defines the travel part of a company's front-office business processes.

The reasons for the rise are well-known and follow a classical economic supply and demand curve. The difference now is that in previous booms you could simply call West Texas, Oklahoma, California, Alaska, Mexico, Norway, Scotland and, oh yes, the Middle East and ask them to open the spigots a bit more and all would be well. Today you can't do that because supply is at peak and the developing world -- China and India but also places like Brazil -- all want more energy. When supply is stagnant and demand rises, so do prices, so here we are.

If you're not a Peak Oil fan, think in these terms: There hasn't been a new refinery built in the U.S. since the mid-1970s, and refinery capacity is maxed out, creating another supply bottleneck. Also, the cost of drilling in deep water can be as high as $100 million per well (whether not you discover oil). That is not the same as the cost of drilling in the bad lands, and those costs need to be passed on to the consumer.

You can pick your storyline, but it all comes down to the same conclusion. Travel is becoming more expensive, so this is the year to anticipate changing your front-office business processes and begin to do something about it.

What's to do? Well, much of it comes back to the technologies that mediate front-office business processes. The front-office technologies that have been developed over the last decade -- and especially the last five years -- will come front and center as we craft new and better ways to interact with customers.

Chief among these technologies will be analytics. You thought I'd say social media or perhaps online conferences, videos or something else? I will, but they aren't first on the list. Analytics is first because analytics is the killer application for everything else. Analytics gives you the ability to make sense of all the data that social media churns up and informs your decisions about which video content to develop and deploy. It also helps you make rational decisions about which customers to get in front of and when. So if you haven't begun dabbling in analytics, I'd say yesterday was a good time to start, today is pretty good too. Tomorrow is iffy.

Next on the list is everything else. Once you know much more about your customers and, really, demand, you can make intelligent decisions about crafting your messages and putting them into videos and developing online conferences. None of this is hard to do, but it will make your life different. It will take you off the road and put you on the phone and on the Web.

Anneke Seley, coauthor with Brent Holloway of Sales 2.0, tells me that some of the most successful companies using new technology are finding ways for marketing and sales to work more closely, breaking down barriers between inside and field sales and developing Web and phone strategies where direct field sales was once the order of the day. I'll post an interview with Seley shortly.

Thinking differently about front office processes is not hard, but implementing new ideas might be. While we all want to save a buck, investing in new technologies that help do this is a tough call at the tail end of a recession. Part of Seley's advice to me is to start with a pilot project to see if a new approach will work in your company with your staff and products. If success is elusive, think hard about people, process and technology. Five-dollar gasoline and jet fuel spell a turning point, and you simply have to get around that corner.

Denis Pombriant is the managing principal of the Beagle Research Group, a CRM market research firm and consultancy. Pombriant's research concentrates on evolving product ideas and emerging companies in the sales, marketing and call center disciplines. His research is freely distributed through a blog and Web site. He is the author of Hello, Ladies! Dispatches from the Social CRM Frontier and can be reached at denis.pombriant@beagleresearch.com. Print Version E-Mail Article Reprints More by Denis Pombriant

Next Article in Trends

A CRM Lesson From Sesame Street
December 30, 2010
As it tries to penetrate into small and even medium-sized businesses, the CRM industry often focuses on the totality of what CRM can do instead of the specific problems it can solve. It's critical to break down CRM for these audiences in a way that introduces them to the trees first, then the forest.

More by Denis Pombriant

The 10-Year Itch
December 22, 2010
Some of us may have been lulled into believing that the general 10-year technology replacement cycle applied to other departments, but not CRM. Not exactly. Leading the metamorphosis this time are three technologies that we are all very well-versed in but which, taken together, add up to the call to rewrite. They include mobility, social media and analytics. 'Well, I Am a Systems Guy'
December 15, 2010
Salesforce.com's latest offerings take me back about five years to a conversation I had with CEO Marc Benioff about S-force. I told Benioff then that I thought the platform business would some day eclipse the application business in revenues. That obviously pleased him, but his limited response was to give a wry smile and say, "Well, I am a systems guy." So the systems guy is returning to his roots. What to Make of Database.com?
December 08, 2010
Salesforce.com's new Database.com can be a little difficult to classify. Is this PaaS? I'd say it's infrastructure because a naked DB isn't enough to call a platform, but a naked DB is not so naked considering that it has to have a place to live and work. Another interesting question: Who does it compete with?