Is the wave of non-profit solutions built on CRM packages over?

Over the past 3-5 years we have seen a veritable increase in solutions for non-profits being built upon CRM platforms. The common names are Microsoft CRM, Pivotal, Accpac CRM, Onyx and Saleslogix. In that time a selected number of non-profits have purchased systems from resellers of those technologies.

When we are bidding these deals we always try our hardest to let these prospective customers know that they are buying a custom solution. And that they are completely dependent on the reseller that they purchase the system from. Most of these organisations can get blinded by the excitement of the MS CRM or Pivotal name and fail to fully understand what they are purchasing and from whom.

A few years ago it was Pivotal and Onyx. Today it is Microsoft CRM. Almost every Great Plains reseller now is making some claim to be able to offer solutions to non-profits, based on MS CRM.

But none of that changes the facts that they are selling custom solutions. We have to help customers understand the difference. And help customers understand the iMIS advantage.

Lets take an example scenario. Reseller organisation 'PivotNFP' has built a solution for non-profits on Pivotal, which they sell to non-profits as a product called 'PivotMAN'. For the average punter, PivotMAN looks like a packaged software solution, and further PivotNFP do a great job in the market by saying that it is based on a well-known CRM package called Pivotal. But none of this is the reality. Here are the warning signs:

1. No-one at Pivotal Corporation Inc. has heard of PivotMAN and it is not listed as a module of Pivotal CRM.

2. PivotMAN was developed using Pivotal tools. Most likely, this development was not undertaken using any accepted development methodology (SDLC) and PivotNFP does not have any real structure around what a software development company (like ASI) would have - departments like product management, development, QA, information development, and R&D simply do not exist.

3. PivotMAN will not work without Pivotal. What if the reseller, PivotNFP, has their Pivotal contract cancelled, or if they breach that contract, and are thus unable to sell or support Pivotal. Who takes care of the customer?

4. PivotNFP retains the IP of the custom developments further promoting the untruth that it really is packaged software. This is actually far worse a deal for most organisations since they are buying a custom solution but not getting access to any of the IP.

Unfortunately, the majority of these custom solutions sold here in the last 5 years have come unstuck. And reality is setting in. The good news for ASI is that I believe customers are becoming better educated and are not going to let this happen again. In fact there are so many resellers now offering MS CRM based solutions that most non-profits realise that it simply doesn't add up and/or make commercial sense for any of them. I hate to use the term 'fly by nighter' but the ease with which you can become authorised to sell MS CRM will see this make a comeback.

ASI are here for the long term. With a real product, a company setup and managed as a software development company, and a commitment to the non-profit sector beyond any other.

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Submitted by Paul Ramsbottom on 9 April 2007 - 4:18pm