leveraging open source for managing complex business processes
DESCRIPTION
The growing buzz around open source software is no longer limited to software developers alone, but is increasingly driven by end user adopters who are using the unique benefits of open source implementations to improve and streamline their business processes. In this session by Jacob Taylor, the co-founder and Chief Technology Officer for what is widely considered the most successful example of open source as a packaged application: SugarCRM. Jacob will explain the main differences between proprietary and commercial open source business models. Taking a case study approach, Taylor will illustrate through a series of specific customer examples how the process of developing open source applications and a commitment to open standards ultimately benefit customers. He will give concrete examples of how commercial open source implementations that includes: • Helping the State of Oregon’s Office of Medical Assistance Programs (OMAP) standardize its methods of tracking cases for its client base of over one million citizens while also complying with federal regulations for electronic healthcare transactions • Allowing Sterling PCU to avoid hidden costs for data management while going beyond the capabilities of its previous proprietary CRM system to provide enhanced CRM functionalities • Increasing athenahealth’s control over internal systems so that it could continue to grow its business effectively while reducing time to achieve ROI goals and implementation costsTRANSCRIPT
May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Jacob TaylorCTO and Co-FounderSugarCRM Inc.
SessionTitle:Leveraging Open Source for Managing Complex Business Processes
WelcomeWelcome
to Transformation and Innovation 2007 The Business Transformation Conference
May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Agenda
Who is SugarCRM?
Why Open Source?
Customer Case Studies
Q&A
Copyright © 2007 SugarCRM, Inc. All rights reserved. 2
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Washington Dulles HiltonThe Business Transformation Conference
Leading Provider of Commercial Open Source CRM– Founded April 2004– 100+ Employees– 1,200+ Customers spanning 30 countries – 100,000+ users– 16,000+ community members – 7,000+ registered developers– 320+ module extensions – 50+ language translation– Raised $26M
SugarCRM, Inc.
Copyright © 2007 SugarCRM, Inc. All rights reserved. 3
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Washington Dulles HiltonThe Business Transformation Conference
What open source means for business:
Faster Development More Control Lower Cost
Higher Quality Greater Flexibility Less Risk
Commercial Open Source
Open Source
Proprietary
Operating System Database Middleware CRM Content Mgt. Messaging
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Open source software represents the most significant all-encompassing and long-term trend that the software industry has
seen since the early 1980s. ”
“
Copyright © 2007 SugarCRM, Inc. All rights reserved. 4
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Washington Dulles HiltonThe Business Transformation Conference
Our Products
Sugar Enterprise
Sugar Professional
Sugar Open Source
Copyright © 2007 SugarCRM, Inc. All rights reserved. 5
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Washington Dulles HiltonThe Business Transformation Conference
Our Products
Copyright © 2007 SugarCRM, Inc. All rights reserved. 6
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Washington Dulles HiltonThe Business Transformation Conference
Delivery Options
Software as a Service accounted for approximately 8% of CRM total software revenue in 2005; Gartner
estimates that this will reach 12% in 2006.”
“
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Washington Dulles HiltonThe Business Transformation Conference
The Most Advanced UI in CRM
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Leading Companies Adopting SugarCRM
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Company BackgroundCompany Background
Case Study: Sterling PCU
Business ChallengesBusiness Challenges
Customer information stored in spreadsheets, word documents and access databases
Inability to manage complex quotations, a key customer tracking mechanism
High ongoing costs and lack of deployment flexibility with Salesforce.com
Specialized Equipment for Automotive and Appliance Industry
Customer include Mercedes-Benz, Toyota, Caterpillar, GE and Carrier
Founded in 1946 Headquartered in Dayton, OH with
facilities in Germany and China
Company
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May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Sterling was able to implement Sugar within one week after receiving its data from Salesforce.com.
Working with SugarCRM, Sterling was able to create a flexible quoting engine that is central to its business operations. This kind of customization is impossible in a multi-tenant, hosted application offering.
The flexibility of SugarCRM helped Sterling to see user adoption levels of 90% during its rollout of SugarCRM.
Open Source DeploymentHow Open Source HelpedHow Open Source Helped
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Washington Dulles HiltonThe Business Transformation Conference
ResultsBusiness ResultsBusiness Results
Better understanding of business performance and more coordinated interactions with customers from initial engagement to order
Complete flexibility to change CRM deployment from hosted to On-Premise application depending on business requirements
“You do not want to know how muchmoney we spent on Salesforce.comcustomizations. SugarCRM gives us
the flexibility we need to grow as a business.”
-Christopher EdwardsGeneral Manager
Sterling PCU
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May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Results
Implementation ResultsImplementation Results
Lower Total Cost of Ownership
Estimated savings of $18,000 per year with move from Salesforce.com to SugarCRM
Reduced Risk Completed full
implementationin less than 1 month
“SugarCRM gives us the flexibility we need to grow as a business. We are using Sugar On-Demand
Now but will most likely move our customer assets to
Sugar On-Premise in the future. Salesforce.com cannot provide us that
kind of flexibility.”
-Christopher EdwardsGeneral Manager
Sterling PCU
Copyright © 2007 SugarCRM, Inc. All rights reserved. 13
May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Company BackgroundCompany Background
Case Study: Athena Health
Business ChallengesBusiness Challenges
Old CRM did not allow for tighter integration with company's internal system.
Old CRM was not flexible or customizable enough to keep up with company's growth.
Extensive licensing costs and costs of customization.
Provider of physician revenue cycle management services that integrate workflow, billing and collections into a single service.
More than 450 customers, with over $1B in physician revenues.
Founded in 1997 Based in Watertown, MA.
Company
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Open Source Deployment
In only 2 months athenahealth was able to customize Sugar Professional and seamlessly integrate it with their revenue-cycle management system.
The nature of open source allows athenahealth to work closely with SugarCRM in an iterative process: athenaheatlh develops extensions that can make their way back to the core product. And the openness of Sugar’s code allows athenahealth to develop with confidence.
Regulatory issues in healthcare required athenahealth to opt for a more flexible product that could constantly meet changing compliance needs. SugarCRM meets those needs.
How Open Source HelpedHow Open Source Helped
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Washington Dulles HiltonThe Business Transformation Conference
ResultsBusiness ResultsBusiness Results
athenahealth now has a much more flexible CRM system in place, which meets changing regulatory mandates.
The CRM system is also now fully integrated with its athenaNET physician revenue-cycle management system.
“…We will break even in three months,and meet our ROI goal in nine months.
After that, value will continue to accrue indefinitely….”
-Bob GatewoodChief Technology Officer
athenahealth
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May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Results
Implementation ResultsImplementation Results
ROI in nine months Implemented in less
than two months 90%+ adoption levels Able to quickly scale
from 200+ to 400+ users.
The cost to complete the basic Sugar Professional customization
and integration work cost thesame as three months of their
previous Salesforce.comsubscription costs
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BackgroundBackground
Case Study: State of Oregon
Business ChallengesBusiness Challenges
Paper-based processing of Medicaid claims were time intensive and led to manual error
No single system for managing communications related to outreach and education efforts
Communications managed through Sticky Notes, Memory, Excel Spreadsheets, MS Access Database
Department of Human Services is the largest state agency with over 9,000 employees
Assists residents in sustaining independent, healthy, and safe lifestyles
Established in 1971 Headquartered in Salem, OR
Company
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May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Open Source Deployment
The department feared that CRM would be too expensive and time consuming to install. However, a system architect simply downloaded and installed the open source version in one day.
The department was able to use Sugar Professional to automate many of its core processes, and even eliminate paper-based transactions for many processes.
How Open Source HelpedHow Open Source Helped
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ResultsBusiness ResultsBusiness Results
The department is now HIPPA compliant.
Reduced Medicaid paper claims processing from 60,000 to just 37 in three months .
Provided a single system of record and communications across the Department of Human Services
“Soon after the SugarCRM rollout,I started getting calls from
providers saying that we reallyseemed to be on the same pagein terms of providing consistent
responses and sharing information.”
-Bill CrowellChief Information Officer
State of Oregon
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Results
Implementation ResultsImplementation Results
Expected to take up to 12 months to evaluate and deploy CRM – was up and running almost instantly
Department now has a centralized email management, document management, and collaboration platform
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Thank YouThank YJacob TaylorCTO and Co-FounderSugarCRM Inc.Contact Information:[email protected]
ou
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