December 12, 2006

Airline goes on-demand to push collaboration

North American arm of Singapore Airlines is cutting costs by requiring sales staff to work from home

The North American sales arm of Singapore Airlines Ltd. is halfway through a project to use on-demand software from Salesforce.com Inc. to improve collaboration between its home-based corporate travel staff.

Following the lead of some of its peers in the industry, Singapore Airlines is requiring corporate business travel sales staff to work out of their homes to pare down infrastructure costs. The sales staff is spread out in cities including Boston, Chicago, Denver, Houston, Philadelphia and San Diego. The issue the airline and other companies are grappling with is how best to foster collaboration between such geographically scattered staff while also increasing efficiency and driving more sales.

Prior to initial deployment of Salesforce.com's hosted sales automation and marketing software in April, the sales staff relied on e-mail and offline meetings as its main method for communication and collaboration, according to Michael Stellwag, manager of direct sales and marketing for the Americas at Singapore Airlines.

About 18 months ago, the airline decided a sales force automation tool could help bring its home-based sales staff into closer collaboration with each other.

Singapore Airlines took an in-depth look at products from three vendors over the course of six months -- Sage Software Inc.'s Act contact management software, enterprise applications vendor Saratoga Systems' CRM (customer relationship management) product, and Salesforce.com's hosted sales force automation and marketing offerings.

The airline particularly liked Salesforce.com's on-demand approach since the application could run without support from Singapore Airlines' IT staff. The airline closed a deal to use Salesforce software as the software vendor's fiscal year ended on Jan. 31, 2006.

From late 2005 through early 2006, Salesforce.com experienced a series of much publicized service outages. "We didn't place too much emphasis [on the failures]," Stellwag said. "Companies like Salesforce.com live and die by availability and we were confident the problem would be fixed. It didn't seem like anything more than a blip on the radar screen."

Once the application was up and running, Stellwag began to check out Salesforce.com's AppExchange Web site where the vendor showcases both its own on-demand add-ons and applications developed by third parties to be used with the Salesforce software. "I looked at the broad array of applications and got hooked," he said.

Of particular interest have been applications that address the specific needs of the airline industry, according to Stellwag. So far, Singapore Airlines is using 14 AppExchange applications including user adoption dashboards that measure how frequently the sales staff use the software. He also highlighted an application that integrates the Hoover's company database, an important source of sales leads for the airline's staff, with the Salesforce software.

Looking ahead, Singapore Airlines wants to find ways to help sales team members be more efficient in how they set up trips to meet customers by doing mash-ups between Salesforce and mapping software from Mapquest Inc. and Google Inc.

So far, about a dozen home-based salespeople are using the Salesforce software, with several more individuals to go live shortly. "Longer term, the number of home-based sales team members could jump considerably," Stellwag said.

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