Gartner Recommends Essential Strategies for B2B CRM Success; Live CRM Webcast Event to Take Place Sept. 21.

Business Editors & High-Tech Writers

CHICAGO--(BUSINESS WIRE)--Sept. 14, 2000

The worldwide business-to-business (B2B) e-commerce market is forecast to grow from $403 billion this year to $7.29 trillion in 2004, and good customer relationship management (CRM) will be a key driver of this growth, according to Gartner Group Inc. (NYSE:IT and ITB).

During the next decade, four equally plausible B2B CRM scenarios could play out. They range from a world in which broad CRM expansion exists to a worst-case scenario in which CRM is on life support. Gartner analysts provided their detailed analysis on B2B CRM today during Gartner's CRM Summit 2000, which is being held through Friday, Sept. 15, at the Chicago Marriott Downtown. Gartner analysts said enterprises must prepare to react quickly to the varying scenarios or face possible drastic business consequences.

The two key critical uncertainties that will dictate the specific CRM scenario are customer/partner disclosure of information and global economic conditions. By monitoring those key indicators for uncertainty, enterprises will be in a better position to adapt their CRM strategies before it is too late.

"The key to any CRM strategy is the ability to acquire and effectively use customer and partner relationship information. However, to acquire that information, customers and partners must be willing to disclose it," said Rob DeSisto, vice president and research director for Gartner. "Disclosure ranges from complete to restricted. In a restricted environment, partners have a high level of distrust and will do anything to prevent end customer data to flow back through the demand chain. Government agencies will play a more prominent roll in end customer privacy issues. For complete disclosure, we expect to see the opposite, such as limited government involvement, high-demand chain collaboration and customers believing that benefits outweigh privacy concerns."

Gartner analysts said the health of the global economy is the other key uncertainty that dramatically affects CRM strategic decisions. Economic conditions dictate the ability of enterprises to invest in new capital and technology, and end customers' buying behavior.

Gartner analysts made three recommendations for building strong CRM in the B2B industry:

1. Incorporate scenario-based thinking into B2B CRM planning -- B2B

enterprises should have four- to six-month, long-term planning

meetings focused on examining the effect critical success factors

will have on their CRM strategies.

2. Collaborate now; there is no reason to wait -- Invest in

collaborative training tools to improve channel partner selling

effectiveness.

3. Consider CRM vendors and technologies that support a distributed

collaborative framework -- Distributors should focus initial

investments in CRM on technologies that affect the entire

buying-to-delivery process.

Following the conference, Gartner will deliver the CRM Summit via a live three-hour Webcast on Sept. 21, 2000. The Webcast will feature video presentations, an audience question and answer session, and interactive polling. For more information and to register for the Webcast, go to http://www.gartner.com/crm/webcast.

Additional analysis on the B2B industry will be presented during Gartner's Symposium/ITxpo 2000, Oct. 16-20, 2000, in Lake Buena Vista, Fla. This event is the IT industry's largest and most strategic conference, and it provides business leaders with a look at the future of IT. Some of the speakers at this year's event include Hewlett-Packard's chairman and CEO, Carly Fiorina; Sun Microsystems' chairman and CEO, Scott McNealy; and Microsoft's president and CEO, Steve Ballmer. To register for Gartner's Symposium/ITxpo 2000, please call 800/778-1997 or 203/316-6757, or go to www.gartner.com/symposium. Members of the media can register by contacting Lisette Kwong at 212/320-2330 or [e-mail].

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