Integration: Oracle's key to CRM sales in Latin America - Focus On

"The customer is always right," goes the old adage. And in times of tough competition, smaller profit margins and increasing demands from clients, companies must know their customers better, not only to attract new clients, but more importantly, to hold on to those they already have.

The numbers support this idea. A recent survey by Gartner Research reveals that 65% of small- and medium-sized businesses intend to adopt CRM (Customer Relationship Management) solutions by the end of 2002. CRM is a set of solutions to improve productivity by automating the customer service area and increasing client loyalty and the quantity of information stored about customers. However, the key resides in improving integration between the sales, service and marketing departments, as well as contract management.

Oracle, the world's second-largest software company, with 43,000 employees and an annual turnover in excess of US$10 billion is investing in an aggressive strategy to gain a larger share of the software market, with a special focus on CRM. Daniel Moreira, Vice President of Sales and Consultancy for CRM at Oracle Latin America, says that CRM implementations are just touching the tip of the iceberg.

"This trend is still new and has not yet been fully exploited by Latin American companies, if we consider the global success," he says. "Business owners, executives, professionals, consultants and industrialists are still learning every day with CRM." Even so, the market for CRM services consumed US$48 billion around the world last year.

In Latin America, Oracle has 1,600 employees and a presence all countries. The company is targeting government, telecommunications, finance, utilities, manufacturing and consumer goods companies, with the goal to lead the software market in the region within three years. By the end of this fiscal year, Moreira plans to have gained a 15% market share in Latin America.

"We have been in this region for more than 10 years, and this is one of Oracle's strengths. We know the Latin market and culture very well, we are acclimatized and recognized as a strong company that is here to stay," he states.

Among the company's clients in the region are Grupo Accor (Brazil), Bimbo (Mexico), Telefonica (Argentina) and STO (Bolivia). Brazil, the principal market in the region, accounts for 47% of the business, followed by Mexico, which, with its geographical proximity to the United States, has a culture that is more geared toward investment in technology.

Moreira says that many businesspeople in Latin America do not fully understand the CRM concept and do not realize that it can resolve a lot of their problems. "We need to convert many in the market. The greatest difficulty is that the companies that sell solutions convey different messages, making it difficult for the concept to be understood. This is why large investments need to be made in seminars, round tables and events - to make it easier to understand."

Oracle's strength - and its biggest advantage over its competitors - is that it offers solutions to make interaction between different departments easier. "Integration is the CIO's Achilles heel," says Moreira. If a company invests in software that is not integrated to the platform, it could end up spending up to 65% of the project budget to make this integration. Those who purchase an Oracle solution get everything already integrated, which minimizes implementation costs. The CIO must not think of the cost, but rather see the bigger picture. "It's a plan for the medium or long term," he stresses.

On average, 65% to 70% of most companies' income comes from their own client base, and if the relationship with these clients improves, the return will be greater. This is why Moreira insists that gaining client loyalty is the first step to success.

"At a time when most companies would, if given the choice, centralize customer services on the Internet, they must be careful," he says. The Internet cannot be a smiling bank manager with a cup of coffee. If the client doesn't go to shops any more, to outlets, or to the bank, he becomes invisible. And this is when an efficient CRM tool comes in, to define this client, give him shape, and thereby keep him happy. In such a competitive market, it is necessary to have a low-cost solution and great flexibility, and we can offer this. How? By implementing the CRM concept from Oracle." Moreira knows that the satisfied client may leave. Only the highly satisfied client will stay.

Moreira, 44, graduated in Business Administration at PUC/Sao Paulo and has more than 20 years' experience in information technology companies, including Ericsson, Siebel, Origin and Cambridge Technology Partners. In August, he was appointed Vice President of Sales and Consultancy for CRM at Oracle Latin America and plays an important role in the company's strategy to win over the Latin market.

Daniel Moreira, Vice President of Sales and Consultancy for CRM at Oracle Latin America.

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