Chapter 8 Case Study - Customer Relationship Management Heads to the Cloud

Question 1 : What type of companies are most likely to adopt cloud-based CRM software services? Why? What companies might not be well suited for this type of software?

The types of companies that adopt cloud-base CRM software service is small businesses that find the on demand model especially appealing because there are no large up-front hardware and software investments or lengthy implementation on corporate computer system. Saleforce’s e-mail and Web-to-lead capabilities helped company quadruple new sales leads.

A task feature automatically generate specific task based on the type of lead and the stage in the sales process. The system automates customer service functions including order confirmation, follow up customer satisfaction surveys and shipping notification. Cloud base software service also appeals to large companies. The system with automated reports and dashboards monitoring key performance indicators, sales calls, and sales volume. 

CRM software service also help to create more successful marketing campaign. Not all companies experience gains of that magnitude and cloud computing does have drawback. Companies that manage their CRM apps with a cloud infrastructure have no guarantees that their data will be available at all time, or even that the provider will still exist in the future.

Question 2 : What are the advantages and disadvantages of using cloud-based enterprise applications?

Advantages	Disadvantages
Cost Efficiency This is the biggest advantage of cloud computing, achieved by the elimination of the investment in stand-alone software or servers. By leveraging cloud’s capabilities, companies can save on licensing fees and at the same time eliminate overhead charges such as the cost of data storage, software updates, management.	Security and privacy in the Cloud Security is the biggest concern when it comes to cloud computing. By leveraging a remote cloud based infrastructure, a company essentially gives away private data and information, things that might be sensitive and confidential. It is then up to the cloud service provider to manage, protect and retain them, thus the provider’s reliability is very critical.
Backup and Recovery The process of backing up and recovering data is simplified since those now reside on the cloud and not on a physical device. The various cloud providers offer reliable and flexible backup/recovery solutions. In some cases, the cloud itself is used solely as a backup repository of the data located in local computers.	Limited control and flexibility Since the applications and services run on remote, third party virtual environments, companies and users have limited control over the function and execution of the hardware and software. Moreover, since remote software is being used, it usually lacks the features of an application running locally.
Increased Storage Capacity The cloud can accommodate and store much more data compared to a personal computer and in a way offers almost unlimited storage capacity. It eliminates worries about running out of storage space and at the same time It spares businesses the need to upgrade their computer hardware, further reducing the overall IT cost	Increased Vulnerability Related to the security and privacy mentioned before, note that cloud based solutions are exposed on the public internet and are thus a more vulnerable target for malicious users and hackers. Nothing on the Internet is completely secure and even the biggest players suffer from serious attacks and security breaches. Due to the interdependency of the system, If there is a compromise one one of the machines that data is stored, there might be a leakage of personal information to the world.
	Dependency and vendor lock-in One of the major disadvantages of cloud computing is the implicit dependency on the provider. This is what the industry calls “vendor lock-in” since it is difficult, and sometimes impossible, to migrate from a provider once you have rolled with him. If a user wishes to switch to some other provider, then it can be really painful and cumbersome to transfer huge data from the old provider to the new one. This is another reason why you should carefully and thoroughly contemplate all options when picking a vendor.

Question 3 : What people, organization and technology issues should be addressed in deciding whether to use a conventional CRM system versus a cloud-based version?

People will provide firm wide information to support decision making. They also will enable rapid responses to customer requests for information or products. Besides, removing hardware and its complications are companies not suited for ERP and CRM. People also can made large investments on traditional and customized solutions that already work. 

In an organization, the Human-Resource Optimization will act as while traditional ERP and CRM solutions demand for technical staff, cloud-based solutions allows to optimize HR to focus on operation. In technology for security: using the web as infrastructure, cloud-based ERP and CRM solutions have difficulties in offering security-comfort to companies that own sensible data. Besides, Seeks to cut cost Companies That Use Cloud Based ERP and CRM Services: it enables them to achieve operational excellence and customer intimacy.  It releases them from infrastructural maintenance and its respective fixed (servers, storage, networking components) and operational costs