GROUND-TO-CLOUD

An Industry Guide
for Evaluating a
Move to Cloud
CRM

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Cloud CRM is a hot
topic these days, but
what is it really?

How are on-premises (on-prem) CRM and Cloud CRM systems different and how are
they the same? What advantages, and disadvantages, does one solution have compared
to the other?

And the ultimate question: Which CRM is

best for your business?
Cloud CRM marks an exciting shift in how businesses use CRM to engage with their
customers. But it can sometimes be difficult (and confusing) trying to find information on
what these solutions actually mean for business.

Dive into our Ground-to-Cloud guide to get a better understanding of the unique features
that define on-prem CRM and Cloud CRM, and how to choose the right solution to take
your business into the future.

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 TABLE OF

Contents

04 On-Premises vs. Cloud CRM: The Pros and Cons of Each

11 A Checklist to Help You Determine the Right Solution for Your Business

14 Industry Trends: How Are Industry Changes Impacting the CRM Decision?

19 Questions to Ask a Cloud Service Provider

26 Conclusion

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On-Premises vs.
Cloud CRM: The
Pros and Cons
of Each
DE F IN IT ION S

What does on-prem CRM and Cloud CRM mean?

On-Prem CRM
On-prem CRM is a CRM system where you purchase software licenses per the
number of users who will be working in the system, and the system database is installed
on your companys servers. Software licenses are usually a one-time, upfront purchase,
but if additional modules are needed, additional costs may be incurred.

Cloud CRM
Cloud CRM is a subscription service to a CRM system you pay on a subscription basis
to use the system, and you access it through the Internet. Data is stored in the cloud and
hosted on another partys servers, not your companys servers. Subscription terms
can vary.

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BE N EF IT S

What are the benefits of

on-premises CRM and
Cloud CRM?

24/7 Visibility
By using your hardware to host your
data, you can take comfort in know-
On-Prem ing where your data resides at all

CRM times. And with a dedicated IT team

closely monitoring the data thats
most important to your business, you
always have your finger on the pulse
of operations.

Security and Trust Always in Control

End-to-end data security is of the On-prem CRM offers you total power
utmost importance a companys over what happens to your data, with
reputation depends on it. When the ability to deploy updates and
you house your data on your own upgrades at your convenience.
servers, you never need to worry
about outside parties getting
access to sensitive information.

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ON- P RE M CRM B E N E F IT S
Connectivity at All Times
With a physical IT infrastructure
creating the foundation of your
on-prem system, and without the
need to access CRM through the
Internet (as is the case with Cloud
CRM), the risk that your team will be
unable to access data due to system
downtime is reduced.
Cost Efficiency for Enterprises
If a large number of employees
need access to CRM, hosting your
CRM system may be more cost
effective than Cloud CRMs per-user
subscription pricing.
Customize How You Need It
When a CRM system is integrated
into, and hosted by, Your businesss
IT infrastructure, your business has
the flexibility to deploy and modify
your CRM how you wish.
Implementation on Your Time
By not relying on a service
provider to deliver CRM services,
hosting your own data offers more
flexibility and control throughout the
implementation process. You can
implement your solution according
to your timeline.
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BE N EF IT S
What are the benefits of
on-premises CRM and
Cloud CRM, Cont.
Cloud CRM
Reduced IT Costs and Complexity
Without the need to maintain
extensive (and expensive) hardware,
businesses can enjoy an IT
architecture that is both simplified
and powerful. And fixed subscription
prices (based on the companys
CRM user count) eliminates
fluctuating, unpredictable software
usage costs.
Access Anytime, Anywhere
Workers are on-the-go,
strengthening customer and
prospect relationships with in-person
visits. But they dont miss a beat
by leveraging Cloud CRMs 24/7
access to log in and view updates
at any time.
Maximize Resources
The automatic updates and ease
of use of Cloud CRM allows your
IT team time to focus on work that
impacts business processes,
instead of burning time updating
applications.
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CL O UD CRM B E N E F IT S, C ON T.
Mobility
No longer is work confined to the
desktop computer, or to the
typical 9-5 schedule. Cloud CRMs
mobile-friendly platform provides
users a consistent, fully functional
interface regardless of the device
theyre working with, whether it be a
laptop, mobile phone, or tablet.
Enhanced Security
One of the biggest concerns
companies voice about the Cloud
is security. Cloud CRM providers,
however, have invested heavily to
ensure enterprise-level security,
privacy and compliance with their
systems.
Scalability
Without inflexible hardware limiting
new business processes, the Cloud
grows with your business, not
against it. The Cloud gives you the
flexibility to move in new directions.
Latest Innovation
No longer is updating your CRM system
a costly, time-consuming process. With
the Cloud delivering automatic updates,
businesses are always up-to-date with
the latest version of CRM. Worrying about
system and worker downtime from
outdated systems is a thing of the past.
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CHA L L E N GE S

What are the challenges of

on-premises CRM and Cloud
CRM?

On-Premises CRM
Higher Upfront Investment
When your infrastructure is responsible for keeping your CRM system going, hardware
must be available and running in tip-top shape which means continually investing in
ongoing maintenance. On-prem CRM also carries a larger upfront implementation cost,
which can put a dent in business budgets.

Accountable for Security

On-prem gives you complete control over your data security, but that means the re-
sponsibility relies on you and you alone. At all times you must be hyper vigilant for any
potential security breaches, as they can carry hefty costs.

Updates Rely on You

System upgrades dont happen automatically with on-prem CRM. You need to put
in the effort to stay aware of new updates as they become available, and instruct
resources to make those updates.

Higher Risk of Obsolescence

Technology is constantly evolving with new business trends, but an on-prem
CRM holds only the features you pay for not as they come. New module or feature
installations can translate into new costs.

Rigidity from Customizations

The downside of being able to modify your CRM system is that it can cause
issues when it comes time to make changes, or upgrades. Navigating through
customizations, and trying to make them fit with new updates, can cause headaches.

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Cloud CRM
Data Security from an Outside Source
While a reputable Cloud CRM provider will promote their trustworthiness, businesses
may not be completely at ease with the idea that their data is in the hands of another
party.

Less Flexibility
A business can get a Cloud CRM up-and-running in no time, but with a fully pre-con-
figured system available at deployment, theres not much space for making customi-
zations. For the most part, businesses must learn to work with the system they have.

Less End-to-End Visibility

A Cloud CRM is hosted by another company, which means you dont have the same
transparency into where your data is stored as you would hosting it yourself.

Potential for Connectivity Issues

The upside of Cloud CRM is its accessibility workers can access it at any time, from
any device, through the Internet. But if the Internet is not performing well, it can pre-
vent CRM users from being able to login and do their work.

Costly to Customize
Cloud CRM is valuable in offering a low upfront cost for initial system deployment, but
if customizations are needed to make it a true application for your business, system
costs can skyrocket.

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A Checklist to Help
You Determine the
Right Solution for
You
On-prem CRM and Cloud CRM each offer their own
advantages and disadvantages.
When thinking of which solution is best for your business, here are a few questions
you can ask to help guide the search:

1 / Why are we looking for a CRM system? What

challenges do we want to solve?

a. An outdated existing system thats hindering processes?

b. Unable to connect through mobile devices?

c. Lack of visibility into customer data and activities?

d. A less expensive, more cost-effective customer relationship

management system?

e. Tighter security around data?

f. Unable to tailor our system the way we want it?

g. Industry modernizing technology?

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2 / Who will be the users in our CRM system?
a. Will our call center of 2,000 representatives use it to track their calls?

b. Will we have our core sales team use it for better customer engagement?

3 / What are the most important factors to us when

deciding on a CRM system?
a. Do we have a small IT budget?

b. Do we have data security regulations that we must comply with?

c. Do we have a small IT team?

d. Do we need to be on the cutting-edge of technology?

e. Do we have very specialized processes that require systems to be

tailored to how we do business?

f. Do we have a mobile workforce that needs to be able to access

CRM from any location, and any device?

4 / What would make a CRM system successful, in

your eyes?

a. Reduced IT costs?

b. Getting customer insight anytime, anywhere?

c. Fewer IT team members to monitor systems?

d. Always feeling secure where sensitive data is stored?

e. The ability to more easily collaborate with our team?

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What Our Customers Are Saying

Using Cloud CRM to make data

available and sharable across
roles, were building our sales
communitys knowledge and
enthusiasm, which helps them
provide an even better
jewelry-buying experience.
PHILLIP R. KE NNE DY, D I RE CTO R O F I T / PANDO RA J E WE L RY, L L C

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I NDU ST RY T R EN D S

How Are Industry

Changes Impacting
the CRM Decision?
The one priority that all businesses share is how to provide an exemplary experience for
customers that keep them coming back (and encourages them to spread the word to
their connections, too).

But despite this common goal, industries have their own unique customer engagement
models. These engagement models are shaped by customer requirements and desires,
but new industry trends and new shifts in customer expectations create different CRM
industry needs.

Personalized Customer Relationships:

Financial Services A financial institution that sees a customer
as simply an account number is in trouble.
Customers expect interactions to be tailored
to what matters most to them. And if they
dont get the service quality they expect,
they have no problem taking their business
elsewhere.

Increased Compliance
Since the financial crisis, institutions are
facing greater scrutiny and compliance
regulations. They must be laser-focused on
delivering all-encompassing risk manage-
ment and oversight.

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Overcoming Perceptions
What value do you provide? Or more specifically, what value do your customers see you
providing? Customers, particularly millennials, have grown increasingly skeptical of the
value that brick-and-mortar institutions offer, turning to untraditional money management
venues (i.e. online-only banks).

Financial Services customers are

mobile, digitally-savvy, and can
afford to be selective about where
they do business.
They expect their institution to evolve with them because if it wont, then theyll move
over to the one that will.

Financial Services institutions should choose a CRM system that will help them smoothly
enter this new customer-centric, digital world. A CRM system that provides 360-degree
insight into customer interaction histories and needs will help build the personalized
engagement, and content, that customers crave.

Loyalty Programs
Retail With so many retailers fiercely competing
for customer wallet share, loyalty programs
are a valuable tool for incentivizing customer
shopping habits. Analyzing and measuring
loyalty program performance is an important
way to drive greater loyalty profits.

Clienteling
The key to increasing a customers lifetime
value is delivering a shopping experience
thats customized to their individual wants
and preferences. Clienteling equips store
associates with valuable customer data that
supports browsing and purchasing.

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Data Management
The omni-channel retailer offers multiple avenues for connecting with customers and
promoting their brand. Creating a single place for the data generated by these different
channels provides retailers a holistic view of their business, facilitating deeper analysis on
shopping behaviors and trends.

Retail customers seek a shopping

experience thats molded to their
pursuit their desires, their
personalities, their timelines.
A store associate is considered a valuable collaborator in this pursuit, a supportive and
knowledgeable team member who will provide the guidance thatll help to more easily
achieve shopping goals.

Retailers should choose a CRM system that supports a customer-first strategy. Store asso-
ciates should have the ability to quickly look up customer information, including on mobile
devices, and see the customers past transactions and preferences in a single view. Get-
ting a comprehensive view into loyalty program activities promotions, loyalty accruals and
redemptions, new signups, etc. should also be a key factor in the CRM search.

Forecasting
Manufacturing Understanding demand enables manufactur-
ers to better plan production schedules, and
thus allocate resources cost-effectively. The
ability to track customers product consump-
tion and usage metrics against forecasted
purchases provides visibility into consumption
as compared to contract commitments.

Sales Management
Inaccuracies in the sales pipeline can create
costly mistakes, such as wrong products-pro-
duced, insufficient raw materials, wrong num-
ber of items manufactured, etc.

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Keeping the sales pipeline under tight control ensures customer data is accurate, produc-
tion is forecasted correctly, and new sales opportunities are managed easily.

Market Share Analysis

With globalization raising the stakes of an already competitive business landscape, the
ability to identify total customer purchasing power versus projected share of market helps
manage business growth goals.

As supply chains global borders

shrink, customers anticipate speed
and precision with manufacturing
order fulfillment.
Manufacturers are focused on maintaining an edge on the competition by keeping operat-
ing costs low, product quality high and customer satisfaction solid. Manufacturers should
choose a CRM system that provides complete transparency into sales processes, from the
first engagement with the customer, to forecasting and contract management, to product
development and project supervision.

Streamlining the RFP Process

Architecture, Engineering, Organizing and tracking RFP submissions
and Construction (AEC) is critical for determining the right sub-con-
tractors for a job. Efficiently comparing RFP
submissions and analyzing the credentials,
skills, and ratings of the bidding companies
enable AEC companies to choose the teams
that will best support their projects.

Efficient Project Management

Keeping projects on-time and on-budget,
along with keeping tools and equipment in
good condition, makes projects come to a
successful and for the customer, satisfy-
ing close. Visibility into project status from
beginning to end helps mitigate risks and
overcome challenges fast.

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Mobility
The ability to plan and schedule resources, tools and workers from a mobile device while
at the job-site enables projects to stay proactive and nimble, ensuring labor and materials
are accounted for and on-target.

AEC companies rely on productive

workers and in-depth insight into
project activities and status.
Staying on top of crucial updates, whether theyre in the office or out in the field, not only
helps keep projects running smoothly, but cost-effectively as well.

AEC companies should choose a CRM system that makes project collaboration quick and
easy, improving business performance for long-term growth and sustainability. A CRM
system that offers mobile connectivity is also a necessity for addressing updates and
changes as they arise.

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Are You Ready to
Move Forward with
a Cloud CRM?
Questions to Ask a Cloud Service Provider
After seeing what features and functionality a Cloud CRM has to offer compared to on-
prem, as well as the different trends affecting how your industry does business, perhaps
you may be thinking that a Cloud CRM is the right choice for your company.

But with so many Cloud CRM service providers out there, how do you find the one thats
best for your business?

Here are 10 questions to ask a Cloud CRM service provider to better determine if they
would be a true partner in your Cloud CRM deployment.

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Q/
Can you name three Cloud CRM customers of
yours that are in my industry? Can you walk
me through what they were looking for, and
how their deployments went?
A. Two of the key things you want to look for in a Cloud CRM service provider is 1) Cloud
CRM deployment experience, and 2) Industry Cloud CRM deployment experience. If a
provider is qualified in both, they will provide a list of customers theyve implemented
Cloud CRM for that have business models that are similar to yours.

Q/
How will this system meet my business
requirements?
A. A provider with true expertise will listen closely to what your company needs and
expects from a Cloud CRM, and the post-deployment metrics you will use to determine
if its a success. And with industry experience, they are knowledgeable on the industry
pressures your business is facing. After meeting with you and understanding your re-
quirements, a provider will offer a detailed map of how the solution will work for you, and
how it will improve business processes. But if this isnt provided, the CRM provider most
likely doesnt have the professionalism and experience that you need for deployment.

Q/
How will this system fit the evolving needs
of my business?
A. A Cloud CRM service provider should offer a CRM system that will scale with a grow-
ing business. Check with the provider if its possible to increase cloud storage in the fu-
ture, and what the cost would be for doing so. Also, if you were to expand your team, you
would want to validate with the provider that it would be easy to add more CRM users at
a reasonable cost.

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Q/
How will pricing work?
A. Cloud CRM service providers can have varying prices and terms for CRM subscrip-
tions hourly, monthly, annually, semi-annually so be informed as to how they structure
fees. One thing to keep in mind is that pricing should be pay-as-you-go, with flexibility
to pay for additional services as needed, so beware if a provider quotes large upfront
service costs.

Q/
What is your strategy for Cloud security? What
are the security measures you have in place
that guarantee data is safe and protected?
A. Cloud CRM service provider is going to be responsible for holding all of your business
data, so you need to feel 100% comfortable with trusting them with that data. A veteran
Cloud CRM service provider should describe multiple security measures that are current-
ly in place, and include their procedure for frequently updating them. Also, asking for the
locations/data centers that your data will reside is a helpful way to determine if your data
could be easily accessed and compromised by another party.

Q/
What is your disaster recovery plan for
my data?
A. Your business data is precious. A Cloud CRM service provider should have redundan-
cies in place that reduce the danger of lost data. But if a service provider still somehow
misplaces or loses your data, you need to understand how they will react in that situation,
and how they will fix it; and if data cant be recovered, what compensation they would
offer you for your losses.

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Q/
How will the system be deployed?
A. You want to be prepared for how Cloud CRM will be installed so that you can plan
accordingly. Cloud CRM providers can also have different engagement styles during the
deployment process do you want your provider to guide you through each step of the
installation and configuration process? Or do you want your provider to simply hand over
installation documentation, and your IT team takes it from there? Its important to identify
the type of involvement you want from your Cloud CRM provider so that you wont be
unhappy if a provider is too hands-on or hands-off.

Q/
How often do solution upgrades occur?
How will I be notified of upgrades?
A. Learning the typical Cloud CRM upgrade schedule is important for planning purposes,
and for getting a better sense of the system. Do major releases require long periods of
system downtime? Are small releases able to be installed without the help of the IT team?
Also, a Cloud CRM provider should keep you in the loop on upgrade timing, and what
new features or functionality will be included in each upgrade.

Q/
Whats the training plan?
A. A CRM system is only as good as the team thats using it if they dont use it, then
the business misses out on crucial insights and worker productivity. Good Cloud CRM
training fosters user adoption as users learn how to work with the system, and get an
understanding of how it will make their jobs easier. A Cloud CRM service provider should
have a thorough training plan for getting users up-to-speed and comfortable with using
the system.

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Q/
How will customer support work?
A. If your CRM users need answers to questions, or if a problem with the system surfac-
es outside of working hours and needs to be fixed ASAP, you should know if the service
provider will be available to help resolve them. Its also important to ask what the average
response and resolution times are for their support team, and if your company will have
access to a dedicated support team or a call center thats shared across customers.

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What Our Customers Are Saying

Hitachi Solutions industry

expertise was a great value to
us because they could use the
language that we were familiar
with, and they understood the
functionality of our CRM platform
as it relates to our business.
BE N NORW OOD, MANAGI NG DI RE CTO R /
NACHMAN NORWOOD & PARRO T T

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CO N C L U S ION

Its all about digital easy

accessibility, convenience
and connections from
any device.
Companies that evolve with, and not just simply adapt to, shifting customer behav-
iors and expectations will succeed in the new digital business model. And with digital
business expanding global borders, customer service is at a premium; the stakes for
strengthening customer loyalty and retention (before a competitor lures them away) are
at their highest.

The Cloud offers a flexible, cost-effective platform for business solutions that scale with
business growth, and mold to business needs. With Cloud solutions, gone are the days
when companies fit their processes to their systems now, their systems fit their needs
first.

Cloud business solutions are rapidly replacing outdated, rigid systems that hinder busi-
ness agility. A CRM system is one of the most important tools a company can leverage
to gain a competitive advantage. Accurate, up-to-date prospect and customer data fuels
sales cycles, and supports targeted marketing that successfully brings those cycles to
an end.

For many, Cloud CRM is the customer relationship management solution that helps busi-
ness evolve.

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Next Steps
Dont miss out on the crucial collaboration, data organization and data analysis
opportunities that Cloud CRM offers.

If youre ready to start the conversation on Cloud CRM, reach out to us at

http://us.hitachi-solutions.com/contact-us/ with any questions. We help businesses
like yours improve their customer engagement models with technology every day.

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