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	March 6, 2009 (updated March 10, 2009) The ROI Of CRM Application Upgrades A Total Economic Impact™ Analysis Shows Favorable ROI Over Five Years by William Band with Sharyn Leaver, Chip Gliedman, R "Ray" Wang, Andrew Magarie

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Executive Summary

With vendors like Oracle and SAP touting new releases of their CRM products, enterprises running older versions of CRM apps are mulling whether to take the upgrade plunge. However, in a down economy, CRM professionals are wondering if the benefits of upgrading their CRM solution will outweigh the costs. And if so, how long will it take to realize payback? Forrester built a business case for a fictional enterprise using our Total Economic Impact™ (TEI) methodology. Using assumptions from real companies facing the upgrade decision, we found that a business-driven CRM app upgrade can generate a risk-adjusted 31% return on investment (ROI) over five years. However, IT-driven or vendor-imposed upgrades come up short. Use Forrester's TEI methodology as a starting point to model the unique characteristics of your organization to generate a customized analysis of expected returns.

TABLE OF CONTENTS

• Economic Upheaval Intensifies The Need For Rock-Solid CRM Business Cases
• Four Factors Determine The ROI Of CRM Application Upgrades
• Calculating The ROI For CRM Application Upgrades
• Business-Driven Upgrades Can Be Good Investments; IT-Driven Come Up Short
• Flexibility: An Upgraded Platform Creates Future Options

RECOMMENDATIONS

• Focus On The Details, Be Objective, And Develop More Than One Option

WHAT IT MEANS

• Ignorance Is Not Bliss
• Supplemental Material
• Related Research Documents

This is an excerpt

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