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[September 22, 2004]

Organizations to Realign CRM Initiatives with Business Strategies in 2005, Says META Group

STAMFORD, Conn. --(Business Wire)-- Sept. 22, 2004 -- As part of its ongoing effort to help users evaluate vendor offerings, META Group (Nasdaq:METG) today announced the availability of a METAspectrum(SM) report on the customer relationship management (CRM) application suite market. CRM suites enable companies to manage and optimize their customer relationships.


According to META Group, a lack of perceived value resulting from technology overinvestment will drive organizations in 2005 to realign their CRM initiatives with their business strategies, and legacy applications nearing end-of-life will motivate organizations to upgrade to next-generation CRM architectures. By 2006, CRM transformation will become strategic for mainstream organizations, supported by industry-specific products, service-oriented architectures, integration frameworks, and articulated value propositions.

"While many functional CRM domains, such as sales automation and marketing campaign management, have matured, CRM architecture and technology is currently in the midst of a many-year evolution to service-oriented architectures supported by Web services," said Elizabeth Roche, vice president at META Group. "Ultimately, organizations will transform from product centricity to customer centricity and should plan for the journey to take three to seven years."

Leading vendors in this market demonstrate excellence in several key areas: vision/strategy, mind share, ecosystem investment strategy, feature/function depth, and vertical coverage. Vendor performance and presence are equally important for the CRM market -- vendors must excel in both areas to succeed. The most important presence criteria include awareness/reputation (e.g., mind share, shortlist frequency), vision/strategy, and industry focus (e.g., vertical process expertise). The most important performance criteria include technology (e.g., features/functionality, integration, architecture), execution (e.g., customer referenceability, vendor's effectiveness in managing new product introduction), and services (e.g., hosting options, professional services).

"CRM application suites provide a broad range of technologies to support implementation of customer-life-cycle patterns and CRM processes across the organization," said Roche. "End users must consider their unique process, functional, budgetary, and technological requirements, and tailor their CRM application decisions accordingly."

About METAspectrum

META Group's METAspectrum(SM) methodology provides a framework for evaluating or selecting an appropriate IT vendor or product, simplifies the decision process, and enables more effective technology investments. META Group's research efforts, which adhere to META Group's commitment to objectivity, are conducted independently, based on industry best-practice research methodologies and subject to the highest levels of review by META Group's research community. To learn more about METAspectrum, visit metagroup.com/metaspectrum or call (800) 945-META.

About META Group

META Group is a leading provider of information technology research, advisory services, and strategic consulting. Delivering objective and actionable guidance, META Group's experienced analysts and consultants are trusted advisors to IT and business executives around the world. Our unique collaborative models and dedicated customer service help clients be more efficient, effective, and timely in their use of IT to achieve their business goals. Visit metagroup.com for more details on our high-value approach.

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