CRM market size and trends in 2003

CRM market size and trends in 2003 - Hewson Group CRM...

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CRM Market Size and Trends in 2003 A Summary The CRM market expanded to $8.8bn in 2003 from $7.4bn in 2001. This expansion masks the revenue decline of key platform players but reflects more emphasis on telephony, analytics and CEM. Customer-centric systems are supplanting inward facing ‘efficiency’ solutions. Both Hosting and Outsourcing became significant trends. Questions remain about servicing and integrating hosted solutions. Mid-market given impetus by entry of Microsoft, Peoplesoft and SAP . Blending business intelligence with operations takes shape. Public sector activity is robust. Regulatory pressure will mean that CRM systems will start contributing to greater transparency in corporate governance. Highlights Hewson Group CRM Market Research Q4 2003 Published: February 2004 www.hewson.co.uk Hewson Group CRM Market Research Q4 2003 2002/3 Review In the two years that have elapsed since Hewson Group last produced a market size and trends report a great deal has changed in the market. In many respects the years 2002 and 2003 have been disastrous for many IT companies, as investment by end users has been seriously curtailed. CRM companies have been particularly affected by a backlash from over-investment in 1999- 2001 and a well hyped concern about the Return-on-Investment that CRM provides. Paradoxically, over these two years, consumer demand for better customer service has never been stronger or more vocal and the fact that many companies fall short of the required standard is well documented. A further paradox can be found in the fact that Hewson assesses the total market size in 2003 to be $8.8bn, as opposed to $7.4bn in 2001. This implies quite strong growth, but this would not be wholly true, as platform CRM vendors have shown a marked decline over the same period (see Table 1) - a decline that, we believe, may well arrest in 2004. What is true, however, is that we have had to expand the universe of what we include, and whereas we assessed about 60 companies in early 2002, we now find ourselves considering over 120 companies, with another 100 or so small companies also considered, but only in aggregate. Table 1 Revenues in USD millions, rounded up 2001 2002 2003 Broadvision 247 116 88 Chordiant 82 74 68 Epiphany 126 84 96 Kana 102 79 61 Onyx 97 69 59 Siebel 2,054 1,635 1,354 The business of customer management, customer knowledge, customer process and the meeting of customer expectations has pushed the boundaries well beyond the internally focused CRM strategies of only three or four years ago.The change in focus to more ‘externalised’ customer management has meant an increasing growth in contact centre operations.We have accordingly attributed more share to players such as Avaya, Genesys and Aspect. At the same time, there has been an increasing awareness of areas such as analytics and both process and quality management. Enterprise players such as Peoplesoft and SAP have also done well, however a large element of this is from ERP
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applications and it can be hard to break out accurate CRM revenues specifically. Both Peoplesoft and SAP have benefited
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This note was uploaded on 03/12/2010 for the course ECON CRM taught by Professor Prof during the Spring '10 term at École Normale Supérieure.

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CRM market size and trends in 2003 - Hewson Group CRM...

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