Alexandra Scoulas, Senior Manager, BearingPoint You Asked Is On Demand CRM Really Important?

There are many reasons to embrace on demand or software as a service (SaaS) when considering CRM solutions. The rapid time-to-value is very compelling, and, for many companies, sidestepping the backlog of constrained IT organizations can mean being able to start using a solution this year versus having to wait until next year.

However, with speed come some trade-offs. Out of the box, the major on demand applications work best for sales processes that range from simple to moderately complex. More complex opportunities require configuration or custom code, which takes time to develop and test.

On the positive side, on demand solutions challenge companies to simplify processes because the solutions do not allow developers to slip under the covers and modify the code. As a result, many companies are forced to focus on process improvement rather than spending time and money on automating inefficient processes. In this context, being removed from the source code can be very liberating.

One area in which on demand solutions can fall short is around data integration with other systems. Depending on the quantity of data and refresh frequency, companies may need to implement third-party middleware or special APIs that have to be maintained. Hello, IT.

Salesforce.com has just announced a new edition that could go a long way in providing application integration flexibility. The “unlimited” edition allows subscribers to integrate third-party or custom-developed modules easily into their CRM business processes, moving them closer to straight-through processing. Linking commonly used functions such as finance, human resources and legal to CRM will have a big impact on sales productivity.

On demand solutions are a good fit for companies that want to focus on their core competencies. These solutions provide subscribers with the option of outsourcing the day-to-day administration of the system along with the IT support. SaaS is an excellent interim solution for departments where sales and customer management needs are not being met by the enterprise.

Alexandra Scoulas is a senior manager with BearingPoint, Inc. (NYSE:BE), a leading global management and technology consulting firm. BearingPoint