 | Gartner states that the overall IT market is worth somewhere around $3,8T (trillion). Just for comparison, I recently saw that the overall value of alcohol, tobacco and gambling market is somewhere close to that IT target. I must say I'm not 100% sure, it could be prostitution instead of gambling. Anyway, it's a lot of dough. |
Surprisingly enough, total military industry is way bellow that target, with almost pathetic (just kidding but it definitively took me by surprise as a low) $1,7T. As for other areas it's a little bit boring. Oil, Finance & Energetic Conglomerates are dominating world's market, there is a solid automotive presence with Toyota, 'Das Auto', GM & Ford leading the pack, fascinating Walmart in a crushing retail business is always hitting huge revenues and employee count, Apple & IBM are top IT representatives, there are one or two communication giants and that's basically it for the top of the pops. At least, as far as the legit business is concerned.
So, how is CRM standing in the bunch? What are the trends out there? Let's take a peek.
So, how is CRM standing in the bunch? What are the trends out there? Let's take a peek.
Again, Gartner states that global Enterprise Software market should be at around $300B with CRM market at $27,5B, (thus around 10%) with a growing trend and a target value of $36,5B in 2017. (spectacularly over passing ERP systems in 2016.). Actually, CRM is leading in overall business application annual growth rate by far. These are significant data! What is the interpretation of it?
Well, first and foremost, it means that the companies around the world are realising the realities of today's market and the vital importance of customer relation understanding & caring and they are willing to heavily invest in it. Simple as that.
Well, first and foremost, it means that the companies around the world are realising the realities of today's market and the vital importance of customer relation understanding & caring and they are willing to heavily invest in it. Simple as that.
"CRM will be at the heart of digital initiatives in coming years. This is one technology area that will definitely get funding as digital business is crucial to remaining competitive," Joanne Correia, research vice president at Gartner in 2014.
Secondly, CRM market is in the middle of the revolution of it's own with emerging solutions like SuiteCRM, which are changing well established business models, shifting them from intelectual property revenue generation (licence costs) models toward quality of service revenue generation (licence free) models. Not only do they offer revolutionary model themselves, taking a serious chunk of the CRM market, but are simultaniously forcing the established CRM players to revise their pricing models making them more accessible to the market.
All of the above said means that there are tremendous opportunities for marginalised markets to take advantage of CRM and similar paradigms to enhance their businesses. Needless to say, the opportunities are being seized relentlessly and the trend is rising, thus making the CRM market bigger and more robust to any local economic uncertainties.
Bottom line: good CRM times are ahead both for service providers and for customers.
All of the above said means that there are tremendous opportunities for marginalised markets to take advantage of CRM and similar paradigms to enhance their businesses. Needless to say, the opportunities are being seized relentlessly and the trend is rising, thus making the CRM market bigger and more robust to any local economic uncertainties.
Bottom line: good CRM times are ahead both for service providers and for customers.
Author: Goran Kabić, Matik CEO
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