Hybrid CRM: Is it Just a Deployment Model?


I was having a call today with one of our clients around the Hybrid CRM that they envision to build. The definition of Hybrid CRM is not uniform. It is an open subject and people have the liberty to define. For some of the organizations…Hybrid CRM is having Cloud based solution and Traditional on Premise solution in the same landscape, this means some functionality/capability on Cloud and some on traditional platforms. For some … Hybrid CRM is having the database reside on premise, but still pay for the consumption of the licenses through subscriber access licenses. Another flavor is…If you have your licenses, but do not want to deploy the solution in house, then hosting it on some cloud (CRM Hosting Companies) by just paying the hosting fees.

So is Hybrid CRM Model just a deployment model and nothing beyond that? In my opinion it is much beyond that…some definitions do not really mean Hybrid CRM, they actually mean Freedom/Choice of deploying your CRM solution.  

So let me define what I think is Hybrid CRM: Hybrid CRM is a vision to create a CRM ecosystem whereby one can synergize the power of on premise with the flexibility of on demand solutions. So actually it means that one should perform an “In Out” analysis of capability to create a structured, scalable, flexible and functional Hybrid CRM Model.

What stays IN (Premise) and what goes OUT (on the cloud) will decide the way this model eventually shapes up? Can there be a single roadmap for this? That is to say…A particular capability can be completely achieved using a cloud solution… should we decide to move it to cloud. Another scenario may be… A capability cannot be achieved in its current state in a cloud solution… so does this mandate that it needs to be on premise? The point that I want to drive here is… Just by creating a matrix of what can be achieved on cloud and on premise one should not decide the hybrid model. Organizations need to perform evaluation on these dimensions:

  1. How dynamic is the Functionality/Capability: Some functionalities/capabilities are very dynamic in nature. They need to constantly change in order to meet the changing needs of the business. E.g Contracts Management in managed care. With change in regulations the capability needs to undergo changes. These changes can be small or big. Such functionality need to adopt quickly and cannot wait for the long change cycle that is typical trade mark of an on premise solution.
  2. How Complex is the Functionality/Capability: Organizations have complex functionalities… some are genuine others are complex just because no one ever thought for a simple solution. Organizations should look back and categorize the functionalities under “genuinely complex” and “Can be simplified”. Then the decision to move them on cloud/on premise becomes straight forward.
  3. Logical grouping of functionality/Capability: This is the most critical part. Organizations need to evaluate capability in a logical group and not stand alone. For E.g Contact Management functionality is achievable in cloud, but activity management needs to be on premise. Does this even sound logical? The end result will be horrifying for the users. Data governance and management will go for a toss. So it is very important to look at capabilities as logical groups so that the objective of creating a structured, flexible, scalable and functional model can be achieved.    

What has been your experience around this? Will you like to add to this list. Just as a closing note… IDC states that 3 quarters of European business plans hybrid CRM.. hope they get it right….

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About Amitesh Srivastava
I have over eight years' experience in IT and Business Consulting. I have been involved in business analysis, consulting and client management for reputed clients across life sciences domain, and possess good understanding of various commercial systems managing pharma sales and marketing processes

3 Responses to Hybrid CRM: Is it Just a Deployment Model?

  1. Harsh Garg says:

    Have been reading up some of your recent posts on CRM. Find them quite informative (especially this not being my domain).
    Just had a train of thought question with respect to the larger issue of IT delivery through Cloud model. Given that under the cloud model software products will be offered as services, thereby changing the basic nature of not only how softwares are deployed but also how they are sold, wouldn’t this potentially cannibalize/kill the market for the application development services offered by Indian IT majors?

    • Harsh, Thanks for your comments. Agree that the whole concept of Cloud may leave the System Integrators to find new avenues. But there is a whole new business opportunity that is slowly unveiling… The space to assemble solutions and deploy and manage them. I will soon write on this as i strongly believe that all IT companies might have to rethink on their model…some of them have already taken few steps in this direction.

      • Harsh Garg says:

        Interesting… looking forward to your post!

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