I see CRM as a system of record for customer information. I see ERP as a system of record for your financial transactions like a ledger. The challenge is that the existing CRM and ERP systems companies are using are not subscription-oriented.
I think it’s going to be hardest to re-architect an existing ERP system and make it subscription-ready. It needs to have your product catalog, your pricing engine and an ability to create these dynamic bundles. From my research, I was told that it takes companies, and I’m talking about billion dollar companies here, it takes them around 30 days to create a new SKU. And this is from when a sales guy says, “I’m willing to make a sale at that point.” So this process of creating SKUs, needs to be done in hours, not in weeks or months. I believe a next-generation ERP should allow you to grow your revenue, not just manage your revenue.
So in the near term, I do think that there is this third component that needs to be introduced. I call it EMP, or enterprise monetization platform.
The traditional way of thinking was, there needs to be a CPQ system, there needs to be a billing system, there needs to be an ERP system. To really solve this for enterprises, somebody needs to take a look at these three problems simultaneously. I think this needs serious investment.