Microsoft CRM: A VAR’s New Best Friend

For many businesses, CRM has become indispensable. To make matters interesting, Microsoft has entered the market with a solid offering that's a way for VARs to garner more consulting-services business. As this report from our labs-alliance partner KeyLabs indicates, Microsoft CRM isn't a simple product, but it offers a complete solution that VARs can support.

KeyLabs is a typical midlevel company in many respects. We have been searching for the right CRM solution for some time. We have tried four different CRM packages (Siebel, an in-house solution, GoldMine and Navision CRM) in the past two years before trying out Microsoft's CRM package. And while it doesn't do everything we want, it performs simply and elegantly. We really liked the tight Outlook/Exchange integration, though for non-Exchange shops, that won't be much of an incentive.

Although Siebel was more flexible, the work required to customize its product was considerably more difficult than it was for Microsoft CRM. GoldMine, however, is simple to install and use, but is limited in its ability to work with other data sources, which is one of the reasons we didn't stay with it.

We also have extensive experience with Navision CRM. Microsoft acquired this CRM plug-in module when it purchased the Navision Attain Accounting package last year. Although Navision Attain is a capable accounting system, its CRM package is not. It is inflexible, bug-ridden and feature-deficient. It wouldn't surprise us if Microsoft killed the product now that it has a worthy contender, but it would be nice if it created an easy upgrade path.

Product Features
At the most basic level, customer information is stored in "account" and "contact" cards. Both hold the name, address and contact information expected from any address book. An account can be categorized by relationship (customer, competitor, partner, supplier, etc.) and by territory. Contact cards are similar to account cards and include information about the role the person plays within the account. Accounts and contacts can be marked inactive, which saves the data but removes unnecessary clutter from the standard views. Both sales and service users share the same account, contact and product records. Customer data can be imported from Outlook or a comma-separated value (.csv) file through the Web interface. Microsoft CRM provides a wizard to guide users through this process.

Microsoft CRM tracks leads: Once a lead has been qualified, it is easy to convert it to an "opportunity," creating the account and contact cards automatically. Our experience has shown that storing leads in separate lists keeps the information organized and does not clutter the customer lists with unqualified data.

Standard information about products available for sale--including quantities on hand, cost, price, units of order and sales literature--is readily available. Salespeople can create quotes, convert them to orders and then to invoices within the system.

E-mail can be sent directly from CRM, allowing the communication to be associated with contacts, quotes and opportunities.

Templates allow organizations to create standard messages to meet specific needs. For example, an e-mail template for quotes can be created with a standard introductory paragraph, line items from the database and pricing information.

Business processes may be defined in the "workflow manager." Rules are assigned to objects (opportunities, accounts, quotes, etc.). They will check for a condition and then perform an action. Conditions include the creation of a record, contents of a field and completion of an activity. Actions include creating a new activity, sending e-mail and assigning the object to a user or manager. Workflows can automate many of the actions to be performed within CRM and ensure that certain events happen before an account manager can move on. For example, organizations may want to require a signed service agreement before any orders are made.

Customer-service issues also can be tracked in Microsoft CRM. Cases may be assigned to a user or to a queue. Queue lists allow a customer-service manager to monitor progress on unresolved cases. Activities and notes provide additional details on the progress made toward resolving these cases. Customer-service contracts are tracked and invoiced through the system. The "knowledge base" feature allows users to review information by category. It also allows keyword and full-text searches.

Activities such as tasks, faxes, phone calls, e-mails, letters and appointments can be recorded as they occur or be scheduled for the future. Each activity can be linked to the appropriate item, and then organized and viewed from the individual items to which they are linked. All current and past-due activities are listed on the home page and workplace pages.

Microsoft has employed Crystal Reports to organize the information in the database to meet many different needs. Managers can make revenue projections, evaluate employee productivity and the status of opportunities and leads, and determine the success of specific marketing efforts. Salespeople can run reports on the data they manage. Customer-service representatives can create summary reports about cases by status and contact lists.

Views throughout the system can be modified to meet specific business needs. Crystal Reports Designer can create customized reports. There is even an information box at the bottom of the home page for quick reminders, announcements or any other information managers want to distribute. Basic modifications and additions can be performed through the standard menus, but complex customization will require development using XML, product APIs and a special Microsoft CRM SDK. That could be an opportunity for VARs to customize the product to meet individual needs.

The Web interface is easy to navigate, but users familiar with Microsoft Outlook will prefer its integrated interface. This also allows users to access their information offline. The data must be synchronized to the local drive before the computer is taken offline, but once that is done, a salesperson visiting a customer will have access to the same tasks, e-mail, contacts and appointments as users in the main office.

Configuration And Setup
Setting up Microsoft CRM is no easy task. Basic server system requirements include Microsoft Windows 2000 Server, Microsoft SQL Server 2000, Microsoft Exchange 2000 Server and Microsoft Internet Explorer 5.5. Once these servers and applications are installed, there are many additional updates and configuration requirements. Active Directory must be in native mode, so all domain controllers in the domain must be upgraded to Windows 2000. MS Indexing Service must also be started. Each application requires the latest service packs (SPs), which is a good practice even if it were not a requirement.

For example, Windows 2000 will need SP3. Windows XP Professional will need SP1. If you are running Office XP, you'll also need SP2. If you are running Office 2000, you'll need to upgrade it to the SR1 version and apply SP3 and the SP3 Hotfix #228512, as well as SP2 for IE version 5.5.

If you haven't updated your software, you'll get error messages when you try to install Microsoft CRM, which can be frustrating because you'll have to stop the install, update your software, reboot and start all over again. We strongly recommend reading the documentation carefully as to the required software. Without reviewing it, the installation can become a long and tedious process.

Due to the amount of planning and configuration involved in installing CRM, VARs will have many consultation opportunities associated with this product. Additional services that will be required include installation, customized templates and reports, workflow rules and integration with other Microsoft Business Solutions applications. Many customers will not have this expertise in-house and are likely to request assistance from a VAR.

A CRM solution is only a tool. It can help organize information and report on workflow, but its ability to do this depends on the quality and consistency of the data entered into the system. Before installing Microsoft CRM, it is essential to evaluate the network architecture, business processes and rollout plans. Installation and maintenance will require a committed effort. But once the system is deployed, the user interface is intuitive and easy to navigate. Microsoft has successfully combined many different business processes into a single tool, organizing related information and making the data accessible to users.

Carole Crockett (ccrockett@keylabs.com) is senior test architect at KeyLabs.

At a Glance:
Microsoft CRM 1.0

Pros:

• Smooth, familiar interface

• Seamless Outlook/Exchange integration

Cons:

• Complicated setup

• Limited integration

Pricing:

• Standard Edition: Server, $995; per user, $395

• Professional Suite Edition: Server, $1,990; per user, $1,295