| Enterprise Applications
In terms of satisfaction trends, enterprise applications has emerged as one
of the most dynamic markets. The fact that customer satisfaction is a close
competitive play, has made it even more imperative for enterprise application
vendors to align themselves to the changing trends to help meet and exceed CIO
expectations.s
So, what are the CIO expectations? Undoubtedly, he/she wants the most
reliable product with great functionality and ease of operation. Last year,
pre-sales and marketing, and price and commercial were the most important
factors for satisfaction after product. This is indicative of the growing
maturity of Indian enterprises in terms of the adoption of enterprise
applications.
As the enterprise moves further in its ERP/CRM/SCM journey, there is greater
focus for the CIO on aspects like installation and post-sales service. Going by
their responses, most enterprises now seem to be in the latter phase.
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| Customer satisfaction in the
enterprise applications market seems to be a very competitive play
considering theres not much variance in the satisfaction scores of the top
three vendors. However, what makes Microsoft Business Solutions coming on
top more interesting is the vendors relative improvement over its last
years scores, which is the highest as compared to its competitors |
So, vendors now know where to focus their energies most on. But are they
doing so? Going by the survey result, it doesnt seem that theyre putting all
their energies in the right place.

Interactions with service team and adherence to SLAs have been voiced as
major concern areas on which CIOs would like their enterprise application
vendors to take action on. On the other hand, pre-sales and marketing has ended
up making CIOs most satisfied (with 87.5 points). Vendors need to re-visit their
customer satisfaction strategy and make sure that theyre not putting their eggs
in the wrong basket.
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| The rise of Microsoft Business Solutions has
been contributed primarily by vendor understanding/domain knowledge of
business (pre-sales and marketing) and clarity of pricing contract (price &
commercial). This is one of the segments where all the vendors, with the
exception of one (Ramco), have performed better than the industry average |
The growth in the overall satisfaction level in the enterprise applications
segment has seen the highest growth among all the eight segments being surveyed.
Last year, enterprise applications was among the most affected by the dip in
satisfaction levels. It made a revival with the overall satisfaction of
enterprise application users increasing by 1.79%. In terms of vendor rankings,
SAP has conceded its top position to Microsoft Business Solutions, though only
by a mere 0.2 points score. But, what assumes greater significance is the
relative improvement in Microsofts performance over the last year as compared
to SAP. While the former grew from 81.4 points in 2007 to 86.5 points in 2008,
the growth for SAP is from 84.7 points in 2007 to 86.3 points in 2008. Oracle is
closer behind at 85.8 points, up from 83.9 points in 2007.
The improvement in Microsofts satisfaction scores was mainly due to CIOs
high degree of satisfaction with the vendor with respect to understanding/domain
knowledge of their business (pre-sales and marketing) and clarity of pricing
contract (price and commercial).
The companys change in licensing policy with the intention of making it
simpler seems to have paid off. Another plausible reason can be the vendors
efforts at scalability and product improvements in the last 2-3 years. This
apart, it also enjoys the rub off of the overall Microsoft brand. As a result,
the overall brand recall is much higher.
For Oracle, overall product performance, scalability, and geographical reach
to provide service are issues with its customers. On the other hand, SAP has to
work harder on improving the convenience of installation/adoption, greater
clarity in its pricing contracts and responsiveness to technical queries.
| The
concern of the customer is not pricing but the total cost of ownership
Sushant Dwivedy, director,
Microsoft Business Solutions, Microsoft Corporation India |
What is
your strategy with respect to customer satisfaction?
The moot point when you take on any customer-related initiative is that
it is a long-term play. When we had taken over from Navision, we had
institutionalized customer satisfaction and motivated the channel to drive
customer centricity. And, over a period, created the framework.
What
are some of the specific customer centric programs that you have undertaken?
One of the top things was the business ready enhancement plan, wherein
we set up the customer portal. The portal provides training free of cost to
the customers employees. This is for the customers who sign up for the
enhancement plan. They also get updates on the licensing they have, when
does it need an upgrade, and next product releases, among others. We have
also institutionalized a Partner Advisory Board Meeting to take in the
partners feedback. We initiated a project, Project Khush Kustomer,
wherein we went back to customers and checked the reason for any
dissatisfaction they had, and then worked backward.
What are the factors critical to
determining satisfaction of the customer in the enterprise applications
space?
We have been observing that for the customers, it is not just about the
depth of functionality but also about the usability and ease of use of the
software. Secondly, when enterprises are buying ERP, they are looking for a
long-term relationship with their vendor. Therefore, post-sales gains a lot
of significance for them. Verticalization is another key for users in the
enterprise applications space. As a result, we focus on micro verticals and
work extensively with our partners for orienting the product for particular
niches. |
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| Enterprise applications is another segment
wherein CIOs dont just demand a reliable product with good functionality,
but also want the vendor to have the ability to resolve problems and be
available post the implementation as well. This can be because enterprise
applications generally require a long-term relationship with the vendor.
While Microsoft has reasons to celebrate, a cause for concern for the
company is the low satisfaction level CIOs have expressed with the security
aspects of its product |
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