Recently published eBook helps you transform entitlement management from a low-value, back-office headache into a strategic growth driver. Here are pitfalls you should avoid with CRM/ERP systems and how you can go best-in-class.
As I mentioned in my previous blog, application producers and intelligent device manufacturers have generally struggled with managing customer use rights (entitlement management) for strategic advantage. It is typically perceived as a manual, back-office process that is considered a tactical and operational function.
Software producers tend to be more aware of the importance of entitlement management than device manufacturers as they've historically been more focused on software, but managing entitlements for device manufacturers is just as important if not more so than for pure software companies. Device manufacturers are used to managing physical assets, which ERP systems can do - but managing digital assets (software) is a whole other ball game.
Those producers that have realized the importance of entitlement management tend to look to their existing CRM (customer relationship management) or ERP (enterprise resource planning) applications to manage entitlements. Here are the problems I’ve seen with these approaches:
Enterprise Resource Planning (ERP)
As the financial backbone of any organization ERP systems are designed to not change frequently, which is at complete odds with a rapidly-evolving software business. ERP systems are great for managing physical assets, but have difficulty managing the fluid nature of digital goods (software).
Customer Relationship Management (CRM)
In contrast to an ERP system, CRM systems are designed for more frequent updates and are sometimes used to manage entitlements - but there are fundamental differences in how a CRM system and a purpose-built entitlement management platform approach entitlement management:
- Most CRM systems define entitlement management as “helping you determine if your customers are eligible for customer support.”
- A purpose-built entitlement management platform views entitlements much more comprehensively - a record of license use rights or rights to a service used to drive new and recurring revenue.
The best-in-class approach is to leverage a flexible and comprehensive entitlement management platform that can manage high transaction volumes while integrating with your ERP & CRM systems to maintain well-established financial control and relationship management, like the diagram below depicts:
Read more about entitlement management in our new eBook, “Driving New and Recurring Revenue with Entitlement Management.”