CRM and the Move to Constituent-Centric Government (Strategic Focus)

Published by: Datamonitor

Published: Jun. 6, 2008 - 6 Pages

Table of Contents

Overview

Catalyst

Summary

Key Messages

A convergence of trends has made government an appealing market for CRM vendors

Governments face a number of challenges when implementing CRM solutions

CRM is being adopted regardless of region, agency type, or level of government

CRM allows governments to enhance and personalize service delivery for constituents

Operational efficiency and decision-making abilities are significantly improved using CRM

CRM is a strategy which involves a combination of people, processes and technology

Table of Contents

Table of figures

Table of tables

MARKET OPPORTUNITY: CRM IN GOVERNMENT

A convergence of trends has made government an appealing market for CRM vendors

Governments are faced with resource challenges and the need to 'do more with less'

The private sector has raised the bar for citizens' expectations of what constitutes 'good customer service'

Governments around the world have implemented customer service and eGovernment initiatives

Governments face a number of challenges when implementing CRM solutions

Governments are often reluctant to make large capital investments in CRM solutions

Institutional regulations and the culture of government may inhibit CRM implementation

Government's structure and culture present challenges to successful CRM implementation

Privacy concerns and legislation prevent the complete sharing of information across government agencies

CRM is being adopted regardless of region, agency type or level of government

Government will be a key market for CRM, as agencies play 'catch-up' with the private sector

In the US, the government market for CRM is poised for steady growth in the coming years

Growth in the European CRM market will be particularly strong across all levels of government

Complex deployments and more hosted solutions will continue to drive the market for IT services in CRM

CUSTOMER IMPACT: REDEFINING THE BUSINESS OF GOVERNMENT WITH CRM

CRM allows governments to enhance and personalize service delivery for constituents

CRM is being used to support government contact centers such as 311 initiatives

Web-based self-service are supported by CRM solutions

Effective CRM solutions incorporate multichannel access for an increasingly mobile population

Traditional CRM functions have unique uses in government

Governments use CRM's service function to facilitate the provision of information to constituents

The sales function of CRM is used primarily by revenue-generating agencies

CRM marketing functions allow governments to inform constituents of relevant services and events

Operational efficiency and decision-making abilities are significantly improved using CRM

Automated workflows significantly improve work order management and accountability

CRM plays an important role for agencies with a strong case management component

CRM significantly enhances interagency cooperation

Analytics functions serve as an integral tool to evaluate resource allocation and performance measurement

Governments have unique technical requirements when implementing a CRM solution

CRM solutions must have a robust, searchable knowledge base of government information

Intelligent scripting is a key function which can significantly enhance operational efficiency

Integration and interoperability with other enterprise systems is an important factor to CRM

CRM solutions for government must be highly configurable and scalable

Hosted solutions deliver a lower total cost of ownership, but entail a trade-off in terms of control

COMPETITIVE LANDSCAPE: GOVERNMENT CRM VENDORS

Large software vendors offer CRM as part of a complete business suite for government

Horizontal vendors with CRM expertise offer robust solutions for government agencies

Telecom companies serve as important players in government CRM deployments

GO TO MARKET: SELLING CRM TO GOVERNMENTS

CRM is a strategy which involves a combination of people, processes and technology

Hosted solutions will see increased growth, as concerns about security diminish

The demand for sophisticated analytics will remain a key consideration for governments

Recommendations

Vendors must demonstrate the wide variety of business processes that CRM can support

Successful vendors will identify common needs across similar agencies and levels of government

A successful CRM implementation requires executive leadership to champion the process

Vendors should position their solutions as having tangible and measurable benefits for governments

APPENDIX

Definitions

Methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Total CRM spending in US by level of government, 2008-2013 ($ Millions)

Table 2: Total CRM spending in Germany by level of government, 2008-2013 ($ Millions)

Table 3: Total CRM spending in UK by level of government, 2008-2013 ($ Millions)

Table 4: Total CRM spending in France by level of government, 2008-2013 ($ Millions)

Table 5: Total US CRM spending by technology segment, 2008-2013 ($ Millions)

Table 6: Total European CRM spending by technology segment, 2008-2013 ($ Millions)

Table 7: Citizens with a great deal or fair amount of trust in government (US)

List of Figures

Figure 1: Governments cite efficiency as the most important reason to invest in IT

Figure 2: Constituent demands for better service are driving governments to adopt CRM

Figure 3: Total CRM spending in US by level of government, 2008-2013 ($ Millions)

Figure 4: Total CRM spending in Germany by level of government, 2008-2013 ($ Millions)

Figure 5: Total CRM spending in UK by level of government, 2008-2013 ($ Millions)

Figure 6: Total CRM spending in France by level of government, 2008-2013 ($ Millions)

Figure 7: Total US CRM Spending by technology segment, 2008-2013 ($ Millions)

Figure 8: Total European CRM Spending by technology segment, 2008-2013 ($ Millions)

Figure 9: Supporting a contact center is the most important use for government CRM

Figure 10: CRM allows governments to meet its goal of improving stakeholder satisfaction

Figure 11: Government performance targets are a higher priority for North American agencies

Figure 12: CAGR for on-demand CRM by vertical industry, 2007-2012

Figure 13: Agencies consider a wide variety of stakeholders as their constituents

Abstract

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