CAMBRIDGE, Mass.--(BUSINESS WIRE)--Aug. 3, 2005--The customer
relationship management (CRM) market is rife with dissatisfied
customers who are betting millions of dollars on products and services
that do not fully satisfy their needs. Approximately $13 billion will
be spent on CRM initiatives worldwide in 2005. Forrester Research,
Inc. (Nasdaq: FORR) has released a new Forrester Wave(TM) that
evaluates and ranks four major CRM players -- Amdocs, Oracle, SAP, and
Siebel Systems -- to help companies make smart CRM investment
decisions.
"Selection of a CRM vendor is a marriage, not a date," says
William Band, a consulting analyst with Forrester Research.
"Enterprise buyers must think carefully about the vendor partner they
choose and understand the long-term commitment of these decisions.
Over the next year, companies will spend an estimated $3.2 billion on
CRM license costs alone. In addition, they will incur costs involving
hardware purchases, software integration, maintenance, and the
administrative expenses for managing new IT assets. Big money is at
risk."
The study finds that buyers are dissatisfied with CRM investments
on multiple levels and are demanding easier integration, faster return
on investments, and better support from vendors. A survey of 94
business and IT executives found that:
-- Only 29 percent of executives surveyed are satisfied with how
easily CRM applications integrate with existing data
applications and sources.
-- Just 34 percent are happy with how easy it is to work with CRM
software vendors after they have purchased applications and
services.
-- Less than 50 percent of buyers are fully satisfied that the
business benefits achieved meet their expectations.
While there are several choices of CRM vendors, ranging from
licensed vendors serving enterprises to hosted CRM vendors using a
software-as-a-service model, Forrester choose to evaluate enterprise
CRM suites delivered through an on-premise licensed arrangement. The
report evaluates the four leading vendors based on 177 criteria
grouped in three categories -- current offering, product strategy, and
market presence. Forrester's findings show that while all four
vendors' CRM suites offer advantages, companies must choose the best
fit for their specific needs. Overall, Forrester found that:
-- Siebel continues to lead the pack. Siebel continues to offer
the most comprehensive solution-set for enterprise-class
organizations, with the largest array of front-office
solutions tailored to specific industry challenges and
opportunities.
-- SAP has momentum and is gaining ground. SAP, through mySAP
CRM, has emerged with increasing momentum. The company is
investing heavily to fill out its product suite and offers
buyers end-to-end business process solutions.
-- Oracle is growing to overtake the leader. Oracle's recent
acquisition of PeopleSoft gives the combined entity full
coverage of all major CRM functionalities and a larger, more
industry-balanced customer base on which to build.
-- Amdocs is a good choice in special circumstances. Amdocs
offers a flexible application with deep customer service
functionality, scalability, and profound knowledge of the
communications services providers and high-tech industries.
The company offers an end-to-end solution by integrating
customer-facing relationship management with the important
customer billing process.
The CRM Forrester Wave also includes six specific recommendations
for buyers to use when shopping for a CRM suite. The full report is
available to Forrester WholeView 2(TM) clients and can be found at
www.forrester.com.
The Forrester Wave Methodology
The Forrester Wave methodology is open, rigorous, and unbiased.
Forrester starts with an open criteria review process, verifies
findings against enterprise customer interviews, and checks facts with
vendors. This research is performed without sponsorship to help user
companies make better vendor selections. Forrester does not charge
vendors to participate in a Forrester Wave.
About Forrester
Forrester Research (Nasdaq: FORR) is an independent technology and
market research company that provides pragmatic and forward-thinking
advice about technology's impact on business and consumers. For 22
years, Forrester has been a thought leader and trusted advisor,
helping global clients lead in their markets through its research,
consulting, events, and peer-to-peer executive programs. For more
information, visit www.forrester.com.
CONTACT: Forrester Research, Inc.
Rebecca Lavery, 617-613-5758
press@forrester.com
SOURCE: Forrester Research
