CRM Notes
CRM Notes
CRM Notes
Introduction to CRM
Syllabus
Who is customer?
How do we define CRM?
CRM Technology
CRM Technology Components
Customer Life Cycle
Customer Interaction
Who is Customer?
A customer is defined as someone who pays for goods or services.
4 types of customers:
Paying Client
They give money to the company & company gives them products and/or services.
Employee
Company gives them a paycheck and benefits and bonuses and they give (hopefully) productive
work in return to the company.
Supplier/Vendor
They give products and/or services to the company & company give them money.
Partner
They give lead, sales, added value services to the company & company give them the same and/or
percentages of a sale they help make.
Craig Conway
Every time a customer approaches your business, they arrive with an expectation. It may be a
service need or a new product interest, but in every case, they have an expectation that accompanies
their interest in your business. What happens next will form an experience that shapes their behavior.
A good experience may increase their loyalty and tendency to purchase again. A poor experience
may transfer their business to your competitor. The ability to recognize this process and to actively
manage it forms the basis for Customer Relationship Management, or CRM.
The ability to ensure that the enterprise will act with unity of purpose to ensure experiences that
exceed every expectation is a monumental task. Customers interacting with employees, employees
collaborating with suppliers—every interaction is an opportunity to manage a relationship.
Scott Fletcher
CRM is an enterprise-wide mindset, mantra, and set of business processes and policies that are
designed to acquire, retain, and service customers. Broadly speaking, CRM includes the customer
facing business processes of marketing, sales, and customer service.
Advances in technology serve as the primary catalyst to the CRM bonanza. The rise of the Internet
as a means to transact business, increasing and affordable bandwidth, and advances in computing
power are all driving CRM. These technology advances greatly empower customers and position
them to more easily access information on products, services, and competitors.
Brent Frei
CRM is a comprehensive set of processes and technologies for managing the relationships with
potential and current customers and business partners across marketing, sales, and service regardless
of the communication channel. The goal of CRM is to optimize customer and partner satisfaction,
revenue, and business efficiency by building the strongest possible relationships at an organizational
level.
Business objectives : outlining two- to five-year strategic goals should be clearly defined.
These can include revenue, market share, and margin goals. These should then drive the next
level of business fundamentals: program initiatives.
Program initiatives : are typically one to one and a half years in scope. They are the near-
term game plans intended to move the company another step toward the long-term objectives
of the company. These initiatives are then associated with specific measurements that will be
the clear indications of successful forward progress.
Departmental plans : are the processes and behavior that form the fabric of everyday work
within the organization. Examples include deploying an automated email response system,
enabling customer self-help on a website, or streamlining the call center processes to answer
customer inquiries in shorter time frames. There are often dozens of major processes within a
department and many that cross departments. The three layers of business operations are then
supported by technology.
Technology : is used to automate and enable some or all of the business processes and
initiatives. Organizations use either many separate best-of-breed solutions or larger,
integrated platform solutions to achieve the goals of technology-enabled business. The
technology strategy is generally a reflection of the coordination, or lack thereof, of the
organization.
Ronni T. Marshak
Every company’s game plan includes what I call the “G-SPOT.” (See Figure 1-2.) This stands for
Goals, Strategies, Plans, Objectives, and Tactics. Here’s how it breaks down for CRM:
Goals : Every business has clearly defined goals. At the most basic level, these include things
like profitability, worldwide recognition, and high stockholder value.
Strategies : To achieve your goals, you establish strategies, such as designing innovative
products, focusing on international markets, and establishing long-term relationships with
customers.
Plans : Executing strategies require plans. For example, to design innovative products you
might implement a plan of hiring top product engineers; to focus internationally you might
develop a public relations plan that targets worldwide press; and to establish customer
relationships you might determine to measure customer satisfaction and behavior and to
invest in technology to support customer interactions.
Objectives: These are the measurable goals of each plan, such as maintaining a 60 percent
customer retention rate or lowering product return rates to less than 20 percent.
Tactics : Tactics are how you achieve the objectives that are part of the plans to implement
the strategies to achieve the goals (whew!). For example, you might establish 24/7 call center
or create a data warehouse that consolidates all customer information.
Objectives of CRM:
Advantages of CRM:
CRM Technology
• CRM is disciplined business strategy. CRM technology is the driver of the strategy.
• Technology, in the form of networked collaboration, communication, knowledge
management and automated electronic processes can enable different groups within the
company to work seamlessly as one unit to fulfill the CRM vision.
• The accepted definition of CRM technology is generally accepted to apply to "front office"
processes.
• CRM technology mandates that all interactions between the customer and the company are
recorded and stored in a central information database, which can be shared with anyone in the
company who contributes to processing the customer's transaction.
• CRM technology fulfils the vision of CRM are through the streamlining of processes and the
acquisition of information to form knowledge about the customer.
Operational CRM:
• Operational CRM is the customer-facing applications of CRM—the aforementioned sales
force automation, enterprise marketing automation, and front-office suites that encompass all
of this simultaneously.
• This is the “ERP-like” segment of CRM.
• One facet of operational CRM is the possibility of integrating with the financial and human
resources functions of the enterprise resource planning (ERP) applications such as PeopleSoft
and SAP. With this integration, end-to-end functionality from lead management to Order
tracking can be implemented.
Analytical CRM
• The analytic segment includes data marts or data warehouses such as customer repositories
that are used by applications that apply algorithms to dissect the data and present it in a form
that is useful to the user.
• Analytical CRM is the capture, storage, extraction, processing, interpretation, and reporting
of customer data to a user.
Collaborative CRM
• The collaborative CRM reaches across customer touch points. It is the communication center,
the coordination network that provides the neural paths to the customer and his suppliers.
• It could mean a portal, a partner relationship management (PRM) application, or a customer
interaction center (CIC).
• It could mean communication channels such as the Web or email, voice applications, or snail
mail.
• It could mean channel strategies. In other words, it is any CRM function that provides a point
of interaction between the customer and the channel itself.
• CRM Engine
• Front-Office Solutions
• Enterprise Application Integrations (EAIs) for CRM
• CRM in the Back Office
CRM Engine
• This would be the customer data repository.
• The data mart or data warehouse is where all data on the customer is captured and stored.
• This could include basic stuff such as name, address, phone number, and birth date.
• The purpose is a single gathering point for all individual customer information so that a
unified customer view can be created throughout all company departments that need to know
the data stored in this CRM engine house.
Front-Office Solutions
• These are the unified applications that run on top of the customer data warehouse (CDW).
• They could be sales force automation, marketing automation, or service and support and
customer interaction applications.
• The life cycle of the customer is the process the customer has been undergoing to be with
company for all the years.
• This includes the customer’s purchase history, perhaps how often she’s taken advantage of
special offers directed at her or her customer class.
• Depending on what company identify as important to customer’s return on investment (ROI),
it could also include customers’ marketing value to company and how much revenue that
marketing value could be worth indirectly.
• To find out what is the expected revenue generated from a single customer over the
anticipated lifetime of that customer’s relationship with company is both the customer life
cycle and the customer lifetime value (CLV).
Customer Interaction
• Some of the value that technology brings to the table in CRM is through increased customer
interaction that doesn’t necessarily occur with a human being.
• It is convenience and the ability of the customers to get something they need without having
to rely on a busy human being, or worse, a lazy human being.
• Customer Interaction is a critical component of CRM—especially the online variety.
Questions:
1. Who is a customer?
2. How do you define CR M?
3. Explain CRM and CRM Technology?
4. What are the types of CRM technology?
5. Explain CRM technology components in detail?
6. Explain customer and customer life cycle?
7. Explain customer interaction?
CHAPTER 2
Introduction to eCRM
Syllabus
Difference between CRM & eCRM
Features of eCRM
eCRM CRM
· Web enabled self service application. · Client/Server Based.
· eCRM is channel; not a separate · Traditional.
technology. · It is Company centric.
· It is powerful; Flexible Channel that · Based on application.
customer could use to interact with · Intended for corporate department,
companies. individual employee.
· Self service knowledge bases, automated · Customer data was used for history
email response, personalization of web review.
content, online product bundling and pricing.
· Ability to interact with business.
· Improve Customer satisfaction and reduce
cost with improve efficiency
Features of eCRM
• eCRM implies capabilities like self service knowledge bases, automated email response,
personalization of web content, online product bundling and pricing.
• eCRM gives Internet users the ability to interact with the business through their preferred
communication channel.
• It also allows business to offset expensive customer service agents with technology.
• eCRM puts much emphasis on the customer satisfaction and reduced cost through improved
efficiency.
• eCRM use customer data for personalization, cross-selling and up-selling.
• Sales Force Automation(SFA )and Enterprise Marketing Automation(EMA) is integrated in
the eCRM.
Questions:
1. List out the difference between CRM and eCRM?
2. Give the features of eCRM?
CHAPTER 3
SALES FORCE AUTOMATION (SFA)
Syllabus
Definition & need of SFA
Barriers to successful SFA
SFA functionality
Technological aspect of SFA
o Data synchronization
o Flexibility & performance
o Reporting tools
Definition of SFA
“ Sales Force Automation (SFA) is designed to help salespeople acquire and retain customers,
reduce administrative time, provide robust account management, and, basically, make salesperson
activities something that earns them and their companies ” money.
Need of SFA
Increased Revenue:
• The main purpose is obviously improvement in bottom line. But only increase in revenue is
not sufficient.
• If you have an increase of 100 percent in sales revenues but your cost of sales has increased,
or it came strictly as a result of your increased sales force, your SFA implementation failed.
• Studies have been done that show that sales time to fulfill administrative functions is almost
half of a salesperson’s activity. By reducing the time engaged in these administrative or other
non-sales-related efforts, the cost of sales is reduced.
• SFA’s benefit is to provide you with a view of the customer that allows that great salesperson
or awesome company to understand the value of the individual customer through customer
history and communications with the company.
• This is making mobility a competitive issue, requiring effective competitive mobile tools,
such as the Internet and the handhelds.
Easily available Customer Information with single view:
• Each salesperson wants to manage the customer accounts he owns. Each of them has the
individual view that allows them to see all the data they need to-that is, have the permissions
to see-but at the same time, there is a universal view of all the data available to all
departments at all times.
• Thus in short the customer information is available to the salesperson or anyone related.
• The most important thing is “Process + Technology = Successful CRM/SFA”. Thus, process
and technology must go hand in hand. Process and Technology provides organizations with
best practices for selling, and the technology and training to effectively automate them.
• Salespeople have to see technology as a tool to help them. If they don’t enter the customer
contact information and properly track their sales through the predetermined corporate sales
process as Solutions Selling and others suggest, the data that management is using will be
inaccurate and essentially useless. Therefore, usability and a short learning curve should be
paramount to the
• software selection process.
• SFA emerged to allow individuals to not only manage their contacts, but also to allow
businesses to manage their accounts. The company, not the individual, owns the relationship.
Every person involved must understand the history and future plans for accounts. Online
shared history of an account that includes not only all contacts, but also all promises,
conversations, negotiations, and meetings are important.
SFA: Functionality
The core features provided are:
• Lead management
• Contact management
• Account management
• Opportunity management
• Sales pipeline management
• Sales forecast tools
• Quotations and orders
• A toolkit for customizing the application
• An engine for data synchronization
Account management
• This standard feature allows the salesperson or sales manager to handle individual
corporate accounts.
• Each account has multiple links to other information, beyond the corporate name or
address, including the contacts by corporation and the proposed opportunities by
corporation.
• Thus it manages the accounts for the organization.
Opportunity management
The facets that opportunity management covers:
• Specific opportunity, the company it belongs to, the salesperson or team that is working
it.
• Assignment of revenue credits if there is a sales team, the potential for closing this
particular opportunity, the final results of this opportunity.
• Stage of the sales process this opportunity is in, and the potential closing date.
Lead Management
• Lead Management functionality is a subset of Opportunity Management
• A qualified lead becomes an opportunity.
Proposal management
• In this it is determined who is responsible for what part of the proposal.
• It can also control the effective completion of the proposal by guiding the stages of
evolution of the parts of the proposal.
Quote generation
• It is a simple tool that generates quotes for customers.
Order tracking
• This feature tracks the status of the invoice and the product delivery.
Commission management
• This tool calculates the commission for salespeople.
Territory management
• Here in short it means a new person takes over an existing territory or a territory can be
redistricted and redivided among existing salespeople geographically.
Pipeline Management
• The “sales pipeline” is a peculiar term for the execution of the established sales process.
• Each company has its criteria for what constitutes its sales process.
• If company successfully embeds sales process into SFA application then the company
can properly use that application.
Sales Forecasting
• SFA programs have adequate sales forecasting tools as sophisticated spreadsheet like
tools for forecast fundamentals.
• Sales forecasts are good guesses in spite there are algorithms of the program
Sales assistant
This feature helps the beginners to learn the sales process of the company they work for.
Expense reporting
This feature ties expense reporting into both accounting and CRM systems. It integrates back
and front office functionality.
Marketing encyclopedia
It is a centralized repository for all the marketing materials so all salespeople have access to
appropriate materials for their customers.
Smartscripts
These are customizable scripts for telesales to maintain some sort of monolithic sales
organization “integrity”.
eBriefings
It allows the creation and deployment of specific discussions according to defined workflow.
Voice recognition
Right now it means not much more than making calendar entries of varying sorts and getting
your current customer data via interactive voice recognition (IVR).
• SFA becomes powerful not only with the functionality aspect but with the combination of the
functionality and the flexibility of the technology.
• Two aspects of SFA functionality and technology make SFA useful to both the professional
and mangers.
• It allows them to analyze data, embed best practices for future sales people and do it with a
desktop
Data Synchronization
• Data synchronization is the process of updating information among unconnected computers
such as laptop, mobile, or desktop.
• Salespeople in the field maintain a subset of master database and update their local data while
others work on same data simultaneously.
• Synchronization allows corporate managers and sales teams to share information created by
field salespeople.
Step 2. The synchronization system tracks changes pertinent to the particular salesperson to
both the remote databases and the host database.
Step 3. Remote salespeople can connect to the home office using low bandwidth modems
or wide area network(WAN) connections.
Salespeople who are at desk can connect via their local area network(LAN).
Step 4. During the connections, log files are exchanged that contain new information to be
updated in the respective databases.
Step 5. After the connection is completed, new data is applied to each database so that each
database has up-to-date information.
Reporting Tools
• Lack of or poor reporting can lead to bad strategic or tactical decisions, redundant work
efforts, and missed opportunities.
• Good reporting tools as part of the technology of SFA (and CRM) are essential.
• Many of the reporting tools embedded in SFA applications are third party tools.
• The most popular is Seagate’s Crystal Reports.
• Reporting is the creation of customized onscreen or printed views that provide the
viewer/reader with information specifically in the form they want and with the content they
want.
Questions
1. Define Sales Force Automation?
2. Comment, “Acquiring customers mean keeping them”?
3. What is the purpose of SFA?
4. What are the barriers to successful SFA?
5. What is the SFA functionality?
6. What are the SFA applications?
7. What is Data Synchronization and explain its process?
8. Comment on the flexibility and the performance of the data synchronization?
9. Write note on the reporting tools?
CHAPTER 4
ENTERPRISE MARKETING AUTOMATION (EMA)
Syllabus
Components of EMA
o Marketing camping
o Campaign planning and management
o Business analytical tools
EMA components
o Promotions
o Events
o Loyalty
o Retention programs
Response management
E-Marketing:
• Using web-based application and the Internet to improve the effectiveness of traditional
marketing and to create new method of marketing and campaign management using the web
information technology to craft finely tuned successful efforts.
Permission Marketing:
• Permission Marketing is asking for the permission to “speak” about its product.
Components of EMA
Marketing Campaign
• Marketing Campaign is the process defined by the permission marketing mantra “Opt-in, opt-
out ”.
Opt-in : if some sites want to give some information to us then they want our permission
to send the information in our mail id. It is a web- based registration form, which is to be
filled out for giving the permission to the site.
Opt-out : contrast to Opt-in. In the opt-out, we just take back the given permission. And
make restrictions on the sending information.
EMA Components
Events
Various vendors have developed robust EMA event-mgmt tools capturing customer information
through event registration and online interaction.
Promotion
Web- based or web integrated marketing provides the same marketing goodies that customers have
always been interested in: promotions, contests, cross-selling of products, up-selling of the products
and discount coupons.
Response Management
• How does your e-marketing suite handle response management so we can analyze the data?
• The complete response management features include banner ads, direct mail, print ads, email,
web site link, surveys, event registration results, internet registration, and online survey
results.
• Response management is the whole process is response gathering, analysis and refinement of
the response.
• The response gathering was completed after campaign was completed.
Using the internet as a tool that works in real time, what is now called “Closed–loop
feedback” that is integrated into the e-marketing.
Questions
1. What is Enterprise Marketing Automation?
2. What are the components of EMA?
3. Note on Business Analytic tool?
4. What is Response Management?
5. Note on Campaign management?
CHAPTER 5
CALL CENTRE
Syllabus : –
What Call centers mean,
Customer Interaction,
Functionality and technological implementation.
What is ACD,IVR, CTI
Web-enabling the call centre
Automated intelligent call routing, logging and monitoring.
Chapter Overview
This is collaborative activity is one aspect of what makes this a CRM application. The customer
directly interacts with the company through a customer service representative and variety of
communications channels, and both use tools that make the interactions valuable. The customer
could be interacting with the website through self-service application. If a human being isn't involved
directly as a customer service representative, there are virtual service representatives. Now that all
but the most difficult and complex problems can be automated, customer satisfaction has been
improving dramatically.
The Functionality
Consider one example of typical call you might make to computer company technical service
representative. A lot of functionality is involved in this call. There is call routing, assignment
management, call tracking, entitlement processing, workflow, problem resolution, etc. There are
activities that are going on without the knowledge of the customer, such as logging and monitoring.
The Technology
The technology for CIC and customer contact centers is complex and involves a mix of
telecommunication and other communications channels, such as email, the Internet, faxes, or CRM
Software. B y adding advanced telecommunications and web-enabled CIC technology, the ante is
upped heavily. The technologies are designed to create collaborative environment for the customer
contact representatives. It also means a self service.
Managing this means using call routing that can handle increasing volume, geographical dispersion
of the CCRs, multiple channels, and workflow. Typically it would identify who is calling and why
they are calling, use the customer database to identify the history, and then find the appropriate party
who is available at the time the caller calls. The software should have integrated IVR so that some of
the processes can be routed to automatic responses. It should have CTI to capture infor mation and
use the database effectively. Its distribution should be multi-channel, which means open architecture.
Finally, it should integrate workforce management tools with its call-routing capacity so that the
CIC's agent capacity and scheduling forecast can be integrated into the use of the call-routing
functionality in micro specific ways.
Logging And Monitoring
Logging and monitoring software provide the granularity needed to do precision scheduling and
improve performance management. Good Logging and monitoring software has following features:
1. The means to develop criteria to capture appropriate samples across the entire CIC network.
2. Extensive and very flexible reporting tools.
3. Universal connectivity to ACD Systems.
4. Strong interfacing with the WFM applications.
5. Easy export to other systems.
Questions
1. Write a short note on Call centers?.
2. What the acronyms ACD, IVR and CTI mean?.
3. What is automatic call routing?
4. How is the logging and monitoring carried out?
CHAPTER 6
Implementing CRM
Syllabus:-
Pre implementation,
Kick off meeting.
Requirements gathering.
Prototyping and detailed proposal generation.
Development of customization.
Power User beta Test and Data Import.
Training and roll out and system hand off.
Ongoing support, system optimization and follow up.
Chapter Overview
Implementation of the system is not just about installing the system but understanding how the
system must conform to the business model and style of the company. It involves commingling of
multiple software packages already installed. Implementation could be very complex. Because each
company has different process and culture, each company might have different set of implementation
issues to solve- technical, functional and cultural.
Implementation
• Statement of Work and change management process should be clear prior to the even starting
the installation.
• Cost of implementing services could cost double to triple of the cost of the software itself
Pre-Implementation Phase
• Identify your vendor and the service provider forth implementation
• Identify functionality needs
• Decisions related to implementation
• S/W selection occurs here & it should have following features :-
• Scalability of s/w
• Toolset & flexibility of customization
• Stability of existing CRM application code
• Compatibility of CRM applications with legacy systems (existing systems) & internet
system.
• Level of technical support available during & after implementation
• Upgrade support
• Availability of additional modules such as EMA complementing SFA.
Customer team
Knowledge team shares
1) About company
2) About applications that needs to be implemented
3) Learn how application works at technical level
Team Composition
Requirements Gathering
• Depending on the scope of the project complexity length of requirements gathering phase can
markedly change
• All people going to use the system are involved.
• Legacy systems needs to be analyzed
• Once the requirements for front office has been gathered , the next step is the identification of
their inputs & outputs
Questions need to be addressed
a) What screens (i/p)
b) How information retrieved
c) How many customers want to work with system
d) No of users system should accommodate
• As the project processes functionality list narrows down depending technical boundaries &
interaction of the proposed system
• Identification on what must be exported
• All information of the legacy system to be ready to provide foundation to see how legacy
system functionality will conform to CRM functionality.
• NDA (Non Disclosure Agreement) signed between both parties.
Objectives
• Develop some of the key functionality for the customer to examine before the rollout
• Doing so brings out the amount of difficulty in the achievement of functionality.
Once the prototype is done formal project proposal that states the deliverables, timelines and
final costs are written to the client .
Development of Customizations
Once there are appropriate signoffs on the formal and final proposal document, the next phase is
development of customizations. The time length varies with five to seven weeks depending on
factors such as:
• The size of the project.
• The complexity of:
o The interfaces
o The workflow
o The functions
• The availability of employees/users to work with the team to improve the
customizations at a given iteration.
• Technical problems unrelated to implementation that affect can be resolved by creating
independent environment for development, testing and eventually production.
• Midstream workflow and rules changes for the customization, necessitated by changing
corporate business processes. This can be managed, but will affect the timetable and the
price.
These are few of the many reasons the project can exceed its anticipated timeline of five to seven
weeks.
• Elasticity of application
It includes the ease of customized application
• Customer involvement
It includes the customer response for the customizations undertaken.
• Change management
If changes are requires a clear change management process has to be in place so that the
contractors and the customer can accept the changes.
• Routinize
Finally the data routines are to be written. Writing data routines using CRM toolkit can
save days of effort and manual entry.
Major features:
• It involves finding the systemic discrepancies that crop up when the customizations are
moving to completion and the data migration is being prepared.
• To create testing environment at the site.
• The success or failure and strengths and shortcomings determine what kinds of backup
resources, procedural automation is needed.
• After successfully installing test data import is done as the system has to be a full-scale test
run to identify the usability and accuracy of data. Customer involvement is necessary.
• Finally before rollout a consistency check for everything from look and feel of the screens to
is performed.
Training
Training time depends on no. of users and available facilities. It consists of:
Basic training
This training is run by the vendor considering the most cost effective.
Example: To send users to Arizona for training includes the cost of training plus the cost of
hotel, food, airfare and other incidentals.
Customization Training
This training is done on the employees engaged in the project for making them familiar with
the system.
The internal project team cost is taken and ordinary labor costs.
Documentation
The vendor or consulting company’s implementation team has full responsibility to provide
documentation on the customized system.
Additional training
Two highly recommended courses are:
Train the trainer: This implies whomever send to this course will be one who will train the
user on your staff as it saves time as well as money.
Integrator Course: This includes to teach staff how to make own customizations.
Major Features:
• This production environment is different from beta environment
• Developer stays onsite to deal with unexpected problems
• Data Synchronization is a problem with remote users
• Can be solved very quickly using data synchronization engines
Caution to be taken
• Keep the database compact
• Data importing should be minimized
• Prepare in advance with more machine power for growth
• Ensure that customization shouldn’t be overwritten with the update’s installation
Questions:
1. Describe in brief the different phases involved in Implementing CRM
2. How the different team members of vendor team and give briefly the roles played by each
member?
3. How the different team members of customer team and give briefly and the roles played by
each member?
4. What are the factors involved in Development of Customizations?
5. Explain the main purpose of Power use beta test and data import.
6. Explain the importance of training.
7. Explain the term Rollout in CRM.
8. What are the features of rollout?
9. What is the importance of ongoing support in implementing CRM & explain the various
activities carried out by Implementation partner.
CHAPTER 7
Application Service Provider
Syllabus : –
Introduction to ASP,
Who are ASP’s, their role and function,
Advantages and disadvantages of implementing ASP.
Overview
Most small to medium businesses could be benefited by the ASP’s .ASP’s outsource the “low-
value” work allowing the smaller companies to focus on the limited resources on more strategic
initiatives to drive the advantage.
Introduction to ASP
ASP - Application Service Provider is a company that hosts a software application and rents it out
for monthly fees
Basic Value Proposition
1. Outsource the headaches and expenses related to managing a business application ,thereby
allowing the customers to free up the resources for more strategic initiatives
2. enable its customers to conserve capital by paying a monthly service instead of huge sum
upfront.
Most companies cannot afford to implement the levels of redundancy, reliability and security. By
using ASP even a small company can get access to leading business applications and often world
class information system infrastructure.
Advantages
• Rapid Implementation
ASP’s implement the same products on the same platform over and over again. This makes
them extremely proficient at this task.
• Availability
Most Asp’s advertise 24/7/365 uptime for their customers application – online all the time,
typically backed by service level agreement (SLA).
• Scalability
The very nature of Asp business requires that they are high perfor mance scalable
technologies. ASP‘s are developed with scalability on mind.
Disadvantages
• Limited choices
ASP’s typically provide limited number of brands. They are forced to do this if they are
going to be able to produce repeatable, scalable results.
• Security
For all practical data held in ASP is arguably safe than data held in the enterprise because
ASP’s goes to great extent to ensure security and protect information in a multi-tenant
environment. Since the data is located offsite the data is outside the direct sphere of control.
• Connectivity
When using a ASP telecom company and many others variables come in to picture which
means customer is 100% at their mercy.
Questions
1. Write a short note on the ASP ?.
2. Give the role played by ASP and what is its function?.
3. Give the advantages and disadvantages for ASP?