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Single org Vs Multi org on your cloud CRM...

 

Only constant is "change"...Organizations are constantly acquiring and merging other organizations or spun off into smaller and more manageable organizations. These mergers and acquisitions always give raise to a persisting dilemma whether all the lines of business, business divisions, branches, locations, etc. should have a common instance of the CRM (single) or each one should have a separate instance (multi-org) - Single Org Vs Multi-Org Cloud based CRM?

 

 

SingleVsMulti.jpg

 

 

A few years ago, the Cloud based CRM was branded for SMB, but today as the cloud CRM has evolved better, more and more larger organizations are embracing cloud based CRMs like Salesforce, MS CRM, Sugar CRM, etc.. The most common business problem observed with cloud based CRM is what I call the "merger - acquisition" problem.

 

Only constant is "change"...Organizations are constantly acquiring and merging other organizations or spun off into smaller and more manageable organizations. These mergers and acquisitions always give raise to a persisting dilemma whether all the lines of business, business divisions, branches, locations, etc. should have a common instance of the CRM (single) or each one should have a separate instance (multi-org) - Single Org Vs Multi-Org Cloud based CRM?

 

The key to solve this dilemma is to have a comprehensive Org strategy. The org strategy is a plan of action which helps you plan how best the cloud based CRM (for e.g. Salesforce or MS CRM) can utilized to the fullest extent for your business across a single instance or split into multiple smaller instances.

 

We can build the org strategy through analyzing all of these 4 critical dimensions:

1.     Business model - What is the type of business model used for the Sales or service? There should be a complete analysis done for the type of business model which could be centralized leadership model vs autonomous leadership model vs distributed leadership.

·         Centralized leadership - This could have a central management which could have common business processes which is more viable for a single org structure

·         Autonomous leadership - each line of business with its own leadership unit and will work when the CRM is organized around multiple organizations.

·         Distributed leadership - This is an extended hub and spoke model which has decision making units across the distributed flat organization structure

2.     Data model - The data volumes and the complexity of the data model is very vital consideration in the org strategy. The data model determines the security access model, reports to be generated, data to be exported and the complexity of the data migration. Sometimes it could be easier to keep data in a single org rather than keeping it across multiple smaller orgs as it helps to achieve efficiency in maintenance, support and re-use. But, there could be legal and technical considerations for physical and logical separation of data across multiple orgs.

3.     Technology considerations - There are quite of technology constraints which come into play while deciding the org strategy. Some of them could be  Governor limits (multi-tenant system), GUI design, performance standards, capacity, administration complexity etc. It is wise to check each of these consideration before deciding the single or multi org option.

4.     Organization culture - This is a key aspect of the org strategy and often ignored or overlooked. It should be thoroughly analyzed if the organization's culture suits the org strategy. Is the culture allow natural collaboration and a consensus based decision making across teams which can be leverage through a single org? Is your culture help in drive autonomy so that business units can drive their own decisions?

 

It is imperative to have a solid org strategy as it impacts across quite a few key areas would have a significant impact on the Cloud based CRM...

 

·         Integration across the stack: Integrations always cost money. These costs are due to design, build and deployment of integration across different systems.  It becomes simpler and relatively less expensive to integrate the CRM instance with the various upstream and downstream systems if the org strategy is well planned. It helps to rationalize the data across different integration points.

·         Data import / export: In a cloud CRM, there is a very limited scope of avoiding data import / export. When the org strategy is well defined, there is a better scope to plan the import / export operations.

·         Global vs local settings: It is easier to plan the Global settings and process which can be re-used can be separated well in advance. Also any geographic specific localization can be applied based on the org strategy.

·         Governance: The governance involves a set of policies, roles and processes which help the organization to effectively use the CRM to meet the business objective. It is easy to set up the governance structure for the CRM instance as it could vary to a significant degree across a single and a multi org set up. A well planned governance set up will help the organization avoid deployment errors and optimize the maintenance cost of the instance.

·         Administration limits: Administration of the CRM is a key role. In a multi org set up, there could be efficiencies achieved by having a common administration layer. This is an occurring operating expenditure which can be optimized when there i

·         Reporting: The data to be reported across the organization hierarchy can be better organized and reported to the various stakeholder. If the senior management requires global reporting (single source of truth), then a single instance could make life easier. But for optimized performance across multiple geographies, a single instance is always not possible, a multi org could be present, then data has to be aggregated for an holistic reporting

·         Collaboration:  There could be a need to share information across various functions or geographies. The information could be shared across the various functions - sales, marketing, service for instance. The org strategy determines the level of collaboration and determines if the information would be contained in silos or a spread across the organization for better collaboration.

 

The org-strategy is the key in designing the cloud based eco system. There should be a balanced analysis of all of the critical dimensions after understanding the cost of the impact of org strategy on the TCO (Total Cost of Ownership) of the implementation of the cloud based CRM.

 

 Further reading:

 

http://www.modelmetrics.com/model-viewpoint/salesforcecom-single-vs-multiple-instance/

http://www.youtube.com/watch?v=eGmg_i1WZdQ

http://crmstew.blogspot.in/

 

 

 

Comments

Hi Everybody,

That's Cool emphasis on the essentials to handle complexities of organizational structures and approaches for effective growth.

Cloud - Be it the Nature's Cloud or Information Technology Cloud :: Both contribute to mankind's prosperity & Healthy existence.

Nature's Cloud drench the earth,to make it fertile thereby helps mankind's healthy survival.

Information Technology cloud helps mankind in using the available resources( Yours / Others )potentials to the maximum effectiveness in less investment & Time.

Cool.

wow. Great explanation

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