10 Reasons Not to Adopt Salesforce.com for Customer Relationship ManagementBy Partho, Gaea News Network
Wednesday, March 3, 2010
After having done with the brighter side of Salesforce.com, we decided to delve into the darker side of the CRM service. Salesforce.com is a pioneer in successfully selling the idea of hosting software and delivering it as a service via the Internet on any different scale. While it is the leading on-demand CRM software, there are equally competitive services like Netsuite that offers edge in several factors. Salesforce.com CRM application is not the strongest contender in the online CRM software industry, however the company tries to downplay the limited value of the off the shelf business systems. Evidently, the tools used in Salesforce.com seem daunting for some users and might be overly flexible and complex in some cases. There are several loopholes in Salesforce.com that need to be addressed. We assorted a list of 10 reasons that would help you to decide whether to adopt Salesforce.com.
1. Integration and extensions
The biggest effort related to a new SaaS CRM system is the implementation or customization. While the basics of integration or even hooking up the pipes are easy, but the data semantics and transactional context involve intricacies and some data rework. As in case of other complex systems, integration exposes data problems. Cleaning up data and integrating with the existing systems might cost more than the first-year license fees.
Salesforce.com offers dashboards with limited visibility. The dashboards are not quite role-based and locked down that prevents personalization and limits productivity of users.
The tab in Salesforce.com representing dashboard is a page of drill-able graphical reports. It just refreshes the reports created by saved search. However, its not the home destination page for users that has nothing beyond graphics from saved searches. The dashboard is not the home destination page for the user, and has nothing beyond graphics from saved searches. The administrator has to create the dashboard from scratch. Moreover, any customization or even simple personalization requires permission.
The company uses tools approach to compensate for the missing functionality that exists in the competitors solutions such as Oracle on Demand and Aplicor. Salesforce.com requires the customers to pay extra for the additional AppExchange products. They also need to pay for the customization tools that helps to accomplish several other SaaS CRM system that is delivered out of box. In Salesforce.com user needs to pay for each additional application that requires evaluation, purchase, and implementation. In addition to your Salesforce.com seat licenses, you need to pay for AppExchange.
Salesforce.com lacks an automated upgrade mechanism for AppExchange software. When the third party upgrades their functionality, your account is not updated automatically. You are required to de-install and reinstall new revisions of the gadgets available.
4. Not apt for sell services
Salesforce.com shows major shortcomings for companies that sell services. Salesforce.com is more feasible for product companies. The CRM service fails to offer inventory visibility/available-to-promise, discount management, volume pricing, order commitment, sales tax and landed cost, order status, backorders, shipment tracking, returns management, issue management, or upsell/cross-sell automation.
5. System downtime
The CRM service provider shows instances of system downtime. Salesforce.com was plagued by a series of intermittent system interruptions that afflicted the software’s system, uptime assurance. Salesforce.com was even hacked that resulted in compromise of thousands of customers’ personal information.
6. Back office functionality
One of the major drawbacks of Salesforce.com is the that it lacks back office functionality. Salesforce.com offers no accounting, inventory management, or order fulfillment functionality, Salesforce.com cannot run your entire business.
7. No SLA(service level agreement)
The practice of selecting the customers to provide SLAs is not justified. Salesforce.com should also consider SLAs for small and midsized business.
8. Multi-tenant architecture
This is said to be one of the strength of Salesforce.com. For most analyst, it is just a cost savings feature for the CRM hosting company, as it provides reduced autonomy, flexibility and customization capabilities as compared to a single tenancy alternative. There is an increasing demand for single tenant hosting solutions such as SAP and Aplicor.
9. Data Quality
In case of large systems, data pollution is inevitable. There are instances of corrupted or duplicate data creeping into the system over time. There are certain instances where the executives start showing contradictory or confusing results. This issue can seriously hamper CRM system’s credibility. In case the CRM system is integrated with other production systems, there are higher chances of data quality issues. You might have to spend more than $3000 (approx) per year or more for data cleansing issues.
There are several core functions provided in a CRM solution that are added to bolt-on’s in Salesforce.com. Some functions that sales people need to accomplish by gluing together disparate applications.
For instance, incentive management (commissions) can only be accommodated through a third party, bolted-on product, which adds to the expense and complexity.
Lacks website/web store
Salesforce.com lacks website or web store functionality. There are a large number of companies that run their web store or website.
Tags: Crm application, CRM Software, CRM solution, Crm system, Expense, on-demand CRM, salesforce.com, This