Roics Iss Belgium Crm

8/8/2019 Roics Iss Belgium Crm

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Customer Profiles:

arvato AZ

Jones Lang LaSalle

The American Red C

The Norris Group

Security AssociatesInternational

Property services firm implements CRM tool,generates return on investment in less thanthree months

Low usability of the firm's existing SAP customer relationship management(CRM) application undermined user adoption. IT managers found theinflexible system prohibitively expensive to customize to individualbusiness units. As a result, the solution was not used and salespeoplelacked visibility into the activities of other business units. This led to"friendly-fire" incidents, whereby multiple salespeople from differentgroups contacted customers and prospectsmuch to the irritation ofeveryone.

Managers implemented Microsoft Dynamics CRM business software as thefirm's sales force automation solution. User adoption increased nine-fold

while friendly-fire incidents diminished. Customer satisfaction increased,client churn decreased, and salespeople increased cross-sales revenuesalong with their sales closure rate.

Table 1 Key financial benefits of theMicrosoft Dynamics CRM implementation

Key Performance Indicator 3-Year Benefit

Net present value: 5,886,843

ROI: 1,936%

Payback period: 0.2 years

[ Figures developed using the Optera Definitive Economic Model]

Who is ISS Belgium?ISS Holding A/S is an 8.9 billi[approx. U.S.$12.5 billion] a yworldwide facilities managemand maintenance firm. One ofsubsidiaries is ISS Belgium, wprovides cleaning, catering,property services, and officesupport to 12,425 customers.The firm's 12 operating divisiopost earnings of 415 million.

ISS Belgium's service offering

come in three tiers. The SingleService offering provides stanalone services such as officecleaning. The Multi-Servicesoffering bundles two or moreservices, while the IntegratedFacilities Services offeringdelivers most all of a facility'smanagement needs.


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SituationThe business relationships of ISS Belgium can be summed up in one word:

complex. That reality stems from an employee base of 12,000 workingacross 12 operating groups to serve 12,425 clients. In practice, keepingtrack of which operating group approached which prospect to sell whichservice fell short of manager expectations.

This can be traced to a lackluster SAP customer relationship management(CRM) implementation. Users found it so cumbersome to use that theadoption rate hovered at an insignificant level.

IT managers were similarly unhappy. Adapting SAP CRM to the needs ofindividual business groups was very difficult. Managers determined that todo so would be cost prohibitive, not to mention that it would saddle the IT

department with costly ongoing support for a customized SAP environmentConsequently, the older CRM system languished.

Employees lacked the visibility into each others actions and as sales andmarketing activities progressed, employees stepped on each other's toes.It happened so frequently that managers coined a new metric called"friendly-fire" incident.

The price of friendly fire was high. Not only did the company's brand imagesuffer but current customers and prospects were put off by it. Somecustomers chose not to renew their contracts and revenues were lost.

The inability for business units to collaborate on cross-sales efforts kept

sales and closure rates below the level managers knew salespeople werecapable of achieving. Moreover, many processes relied upon inefficientmanual processes that lowered the productivity and effectiveness of thesales teams.

Executives were determined to eliminate friendly fire, promote cross-salescollaboration, and increase efficiency. They decreed that a user-friendly,adaptable, automated sales force system be implemented to achieve thisend.

SolutionManagers used a scorecard to evaluate alternative CRM solutions againstthe following criteria:

Ease of use

Integration with the Microsoft Office Outlook messagingand collaboration client


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Easily adaptable to the processes of business units andnewly acquired companies

Easily configurable roles-based security

Strong reporting capabilities

Easily configurable workflows and integrations that utilizeautomation

Tallying the results, Microsoft Dynamics CRM business software won overSiebel CRM and SAP CRM.

Managers established the Microsoft Dynamics CRM solution as the salesforce automation foundation across the enterprise. They use the marketingand sales modules to support operations from the initial contact with a

prospect through the purchase and renewal of services. Customer data wasimported into a single repository to provide 100 users with a 360-degreecustomer view. The configurability of Microsoft Dynamics CRM empowersmanagers to tailor fields, terminology, and workflows to the businessrequirements of each operating division.

To eliminate friendly-fire incidents, salespeople research a prospect to seeif an ISS Belgium peer has been working the lead. When a salespersonidentifies an opportunity outside their service offering, they easily pass iton to someone in the appropriate business unit.

Business and IT managers have heavily utilized workflows to improveproductivity and business outcomes. Workflows guide the service contract

renewal process; the "win-the-customer-back" process; and the newcustomer credit check process, among others.

BenefitsISS Belgium managers project that the Microsoft Dynamics CRM solutionwill deliver a business value of 7.6 million [approx. U.S.$10.8 million]overthree years. [See Figure 1.] This includes 1.9 million due to increasedreceivables management efficiency and 6.448 million attributable toincreases in sales productivity and performance.

Directly Measurable Benefits[see Benefits in Figure 2: The Definitive Economic Model]

Increased contract renewal rate by 15 percent to capture aprojected 4.5 million in three years. Managers configured a proactiveMicrosoft Dynamics CRM contract renewal workflow to reach out to 90percent of clients. That compares to 60 percent previously. Subsequently,managers documented a 15 percent increase in the contract renewal rateto significantly increase revenues.

1 Information contained in this publication has been obtained from sources considered

reliable, but is not warranted by Optera Group, LLC.


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Slashed net receivables float time by 53 percent to provide 1.92million in projected savings over three years. Using MicrosoftDynamics CRM workflows, credit checks are run on 95 percent of newcustomers. That compares to 10 percent using the previous system. As aresult, financial analysts have noted a significant drop in receivables daysoutstanding from an average of 75 days down to 34. (Benefit calculationassumes a cost of money rate of Libor +300 basis points.)

Boosted customer re-win rate by 17 percent to earn a projected1.2 million over three years. By utilizing automation and workflowmanagement capabilities, ISS Belgium salespeople have increased their re-win rate by 17 percent since the implementation of Microsoft DynamicsCRM.

Business Benefits Business Costs

Days receivables

2.6m

ITsupport costs

0.49m

Implementationcosts

0.24m

Sales productivity

0.75m

Regainedcustomers

1.2m

Contract renewals

4.5m Business value

8.4m

Other

0.29m

Sales

Enhanced sales productivity to save 748,000 over three years.Managers used Microsoft Dynamics CRM to automate key tasks and

provide efficient workflows. Based on time and motion studies, the CRMsolution liberated about 15 percent of sales professionals' time, whichtranslated directly to an increase in selling time.

Key performance metrics steadily improving. Since MicrosoftDynamics CRM has been implemented:

ISS Belgium's market share has increased by 5 percent (from41 percent overall to 46 percent).

Figure 1: Projected three-year costs and benefits ofMicrosoft Dynamics CRM

deployment


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ISS Belgium's brand awareness has increased by 45 percent(from 22 percent to 67 percent).

Sales conversions increased by 6 percent (from 13 percent to19 percent).

Customer satisfaction has increased by 18 percent.

Customer wallet share has increased by 4 percent (from 4percent to 8 percent).

Customer churn has been reduced by 3 percent (from 8percent to 5 percent).

Additional Value to the Business

Nine-fold increase in CRM system user adoption. ISS Belgiumemployees found Microsoft Dynamics CRM easy to use because it drawsupon the look and feel of Microsoft Office Outlook. Integration with Outlookfurther eased the use of the CRM solution to promote a dramatic rise inuser adoption.

Friendly-fire incidents all but eliminated.The creation of a singlecustomer data repository gives salespeople a full view of prospects andcustomers. Thus, friendly-fire incidents have nose-dived.

Fast turn-up of new corporate acquisitions on standardized

platform. As ISS Belgium acquires new companies, IT managers canquickly import customer data into Microsoft Dynamics CRM and add newusers to shorten the time to value of their investment.

The Investment

[see System Costs and IT Costs in Figure 2: The Definitive EconomicModel]

ISS Belgiums investment in Microsoft Dynamics CRM includedimplementation costs and IT expenditures in software, hardware, ongoingmaintenance, and staffing.

Costs associated with the firms implementation included theselection of a CRM solution along with the scoping of theproject, the project design, hiring an outside implementationresource (partner) and developing the solution to fit thefirm's business needs. These start-up costs included165,069 in pre-launch development along with 124,008 ininitial hardware and software expendituresfor a total of289,077.




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Expenses for infrastructure (hardware and software) andstaffing over three years are estimated to reach 487,063.

The total three-year projected implementation,infrastructure, and ongoing maintenance costs are 727,132


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Figure 2: The Definitive Economic Model


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About The Optera Group, LLC1The Optera Group, LLC (Optera) is a professional services firm specializing in

understanding the business value of technology and the strategic use of technology to

generate sustained economic value. Opera advises clients on their market strategies and

the way their solutions create value in real-world implementations. Optera has extensive

experience in IT best practices, business IT alignment issues, and defining the Definitive

Economic Value of technology investments. To learn more, please visit us at:

www.opteragroup.com

About the Method and General DisclaimersThis report provides an illustration of the potential total cost of ownership (TCO) and

other financial results a customer or interested party may achieve by implementing

various technology solutions. The results shown are based on The Optera Group, LLCs

(Optera) independent analysis of the expected costs and benefits associated with the

implementation described above and is based upon the application of assumptions

provided by the organization described in this study. Actual results may vary dependingon factors associated with a specific implementation. Optera does not guarantee the

timeliness or completeness of the information provided by this report or warrant any

results from your use or reliance upon the information.

For More InformationFor more information about Microsoft products and services, call the Microsoft Sales

Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information

Centre at (877) 568-2495. Customers who are deaf or hard-of-hearing can reach

Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or

(905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact

your local Microsoft subsidiary. To access information using the World Wide Web, go to:

www.microsoft.com

For more information about ISS Belgium's products and services, call 00 352/42 46 20 1

or visit the Web site at:

www.be.issworld.com/Pages/Frontpage.aspx

Microsoft DynamicsMicrosoft Dynamics is a line of

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This document is for informational ur oses on
http://www.opteragroup.com/http://crm.dynamics.com/http://www.microsoft.com/http://www.be.issworld.com/Pages/Frontpage.aspxhttp://crm.dynamics.com/http://www.opteragroup.com/http://crm.dynamics.com/http://www.microsoft.com/http://www.be.issworld.com/Pages/Frontpage.aspx

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Roics Iss Belgium Crm