Issues for Implementing CRM Systems

Issues for Implementing CRM Systems

I.
II. III. IV.

Potential implementation problems Phased development Supports and challenges of CRM implementation Potential rewards from CRM implementation

I. Potential implementation problems

Shaws problemsinclude ten potential

problems with implementing CRM systems (DM Direct, 2002) that relate to either the focus of the project of its implementation

I. Potential implementation problems

1-1 Failure to provide proper project focus 1-2 Failure to develop the system in the proper way

1-1 Failure to provide proper project focus

management and developer failures

include a failure to:

define the components or purpose of a CRM system; define the project scope realistically rather than too large; designate an executive sponsor or champion; describe expectations of key constituent groups in using the CRM system

1-2 Failure to develop the system in the proper way

management and developer errorsinclude

problems with:

acquiring the required technical knowledge and skills; defining all of the risks; defining functional requirements and system objectives; recognizing the importance of quality; following a phased development methodology; overlooking the importance of privacy and security; and performing a post-implementation evaluation

II. Phased development

2-1 Introduction to phased development 2-2 Avoiding the implementation problems with phased development

2-1 Introduction to phased development

Three major system development

methodologies:

Prototyping Rapid application development (RAD) Phased development methodology

2-1 Introduction to phased development

The phased development methodology

consists of six stages:

Preliminary investigation Analysis Design Preliminary construction Final construction System test and installation

2-1 Introduction to phased development

The ADC loop incorporating a user

review reflects the influence of prototyping prototypean archetype or sample of a final product

2-1 Introduction to phased development

A key element in this methodology is the

identification of the system modules data martslogical subsets of the data warehouse

bottom-up approachfirst developing the marts and then integrating them to form the data warehouse Exhibit 11.1: Data Marts as System Modules top-down approachimplementing a data warehouse and then subdividing it into data marts

2-2 Avoiding the implementation problems with phased development

2-2-1 Preliminary investigation 2-2-2 Analysis, design, and preliminary construction 2-2-3 Final construction 2-2-4 System test and installation

2-2-1 Preliminary investigation

structuring actionsact as institutional

supports to foster the assimilation of new technologies

2-2-2 Analysis, design, and preliminary construction

functional requirement expansionoccurs by

gathering information

from users concerning their information needs, or from customer touch points and the data that should be gathered for each, or from each market segment in terms of the problems to be solved and the decisions to be made

During these stages, the developers decide

which development tools will be used

2-2-3 Final construction

During this stage:

the CRM software and data are tested, any required hardware is obtained and tested, any new or additional facilities are built, and user training programs are conducted

2-2-4 System test and installation

user acceptance testassures the users that

the system meets all of the performance criteria and upon user approval, the system is installed and is put into production A post-implementaion evaluation is conducted to learn

the users perception of the system the developers perception of the project managementt managements perceptions of the project management

III. Supports and challenges of CRM implementation

3-1 Supports of CRM implementation 3-2 Challenges of CRM implementaion

3-1 Supports of CRM implementation

3-1-1 Top management champions 3-1-2 Strategic investment rationale 3-1-3 Coordination across functional units

3-1-1 Top management champions

signals the extent of value placed on the

implementation of CRM systems for the organization

3-1-2 Strategic investment rationale

explains the expected organizational

benefits to be derived from the commitment of resources toward the implementation of a CRM approach

3-1-3 Coordination across functional units

refers to the need to blend IT knowledge

with customer habits and with business manager experiences as the implementation affects functional units throughout the organization

Exhibit 11.2: Supports and Challenges of CRM Implementation

3-2 Challenges of CRM implementation

three challengesstressed in different ways

throughout this text, key challenges include:

expectationsreflect system user concerns for speed, responsiveness, security, and privacy investmentsdefine the financial requirements for acquiring the equipment and personnel needed to design and implement a quality CRM approach reactions to changerefers to the real resistance that human beings experience when asked to change traditional approaches

IV. Potential rewards from CRM implementation

With discussions among customers, employees,

and managers about the expected uses of CRM, the organization may define new opportunities to distinguish its offering from those of the competition. Given an ultimate goal of growth and increased relationships with customers, the organization should consider the level of investment required for each desired outcome.