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CRM dead within 10 years?

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13th May 2010
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Customer relationship management (CRM) packages may be extinct within a decade, as outdated CRM functions make way for event management.

That was the prediction of Vivek Ranadivé, chairman and CEO of integration software firm Tibco, as he spoke at its Tucon user conference yesterday in Las Vegas.
As Ranadivé outlined his vision of Enterprise 3.0, he suggested that event management will eclipse CRM, resigning it to the past.
He said: "The enterprise 2.0 world we live in today is transaction based, but we are now entering an era where events will replace transactions. We will move from this world where we continually have to ask questions and seek information into one where the information will seek you."
IT Pro reports that Ranadivé identified the arrival of larger multi-core processors and cheaper solid-state memory has pivotal developments in the rise of event management, providing the speed and capacity to capture and correlate greater event information, and apply appropriate rules.
In comparison to this, he suggested, CRM will seem outmoded. Businesses will increasingly demand that problems are anticipated and remedied before damage is done, and that they are empowered to respond to events "to make the exact right offer to a customer at the exact right time."
And as CRM cannot act quickly enough, it will be viewed as a dated technology and replaced by event management. "It is the end of an era for CRM," predicted Ranadivé.
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By PRH
14th May 2010 10:52

I certainly agree that event rather than transaction data is the future (it's already here, it'll just take a while for the penny to drop in some cases).

Also certainly true is that predictive/dynamic decision engines will replace the typical triggered comms driven by the average CRM database 'set-up'.  Again, this already exists, but within the larger corporations the investment in global CRM systems cannot easily be put on hold or turned in a different direction.

Those that can, however, will be in a far better place.

Peter Hardingham
Marketing Communications Strategist
G2 Data Dynamics
www.g2dd.co.uk

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By Graham
18th May 2010 12:04

I believe that 'we are now entering an era where relationships will replace transactions'.

CRM need not become extinct but does need to evolve to justify the word 'relationship' which it has ignored for too long. That means that 'trust' has to be regained in the online world which will require organisations, public and private, to accept that they do not 'own' their data (free to sell, share and lose it) but that it forms the basis of a trusted buyer/seller relationship.

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