Open-Source CRM Checklist

Make sure you follow these steps before investing in an open-source CRM solution.
According to recent surveys, 80 percent of all software implementation projects open-source and proprietary software alike fail to achieve operational status. In other words, they just dont work. Many companies salvage such projects at the cost of huge budget overruns and months-long delays. But others cannot resuscitate their failed software implementations. Perhaps not coincidentally, 20 percent of IT department resources are devoted to software implementations on average. Its the old 80/20 rule (or the Pareto Principle, for those familiar with the official lingo) of which salespeople are well aware. In sales, 80 percent of revenue comes from 20 percent of customers. In IT, 80 percent of headaches come from 20 percent of activities. Its easy to dismiss this as superstition, but underlying every superstition is a truth about human nature. In the case of software implementations, including CRM, the truth is that 80 percent of the time people just dont plan well enough to be successful. The most disciplined corporate giants fail to plan adequately, as do small, inexperienced startups. Take Nestl Corp. as an example. A few years ago, Nestl implemented a company-wide ERP project that renovated everything from accounting to CRM. Overconfident, management threw the switch on the new system and simultaneously pulled the plug on the old one. The results were catastrophic. During the critical Halloween season, customers were unable to place orders. Nestl lost a staggering $700 million in sales! Simply put, 80 percent of businesses fail to heed the proverb, Proper planning prevents poor performance. So before you install new CRM software and junk your current system of handling customers, take time a lot of time to plan an opensource CRM software implementation down to the last detail. Below are two checklists to help you do just that. Open-source CRM solutions require some extra steps in the planning process. These packages, like SugarCRM and opentaps, are very popular because they are completely customizable and just as powerful as other, typically more expensive CRM solutions. But open-source CRM software comes with support issues, quirks, the possibility

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of uneven quality and other pitfalls for which you should plan. And the ability to modify code can be an opportunity to add needless complexities and interfere with effectiveness if you havent thought through the modifications. Pre-Implementation Checklist Before you install an open-source CRM package, incorporate the following requirements into your planning and testing: r Understand your companys requirements. Walk through every CRM-related department and take careful notes on how employees actually use the system. Eliminate activities that are superfluous. Add activities that boost value. Talk to the appropriate people to learn how they perform these activities (it usually varies from policy manuals, and is usually more efficient). Most importantly, learn how a CRM solution can improve their day-to-day job responsibilities. Document everything you learn this can become very useful if theres a need to create customized functionality later.

r Determine the budget for your CRM project. The cost of open-source software may appear to be negligible, but it could be worthwhile to pay for reliable professional support. Or your budget may have to include hiring a specialist in the open-source CRM package you finally select. User needs and wish lists often exceed available funding. Some negotiation of requirements may be necessary.

r Map out the implementation. Match employees needs to the features of the open-source CRM solution you choose. Determine which modules youll need and which ones you dont have to install. The simpler the implementation, the less chance of botching it.

r Do a pilot implementation on a limited scale and in the background of current CRM operations. Set up and configure the open-source CRM software based on the known requirements and implementation plan. Next, have real users test the system and provide feedback. Often, youll uncover new requirements, which may lead to custom coding, and youll find some things that can be omitted from the full-scale implementation.

r Make changes to the system based upon user feedback. Dont make a change just because you think it would be good. Be guided by user input.

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r Do more rounds of pilot implementations until users are satisfied. Dont stop short of that goal.

r Train employees on the new system before theyre faced with using it in production mode.

r Move data over from the old system.

r Roll out the new system.

Implementation Checklist The devil is in the details. In addition to the pre-implementation activities above, youll have to meet with domain experts in many departments to identify the nittygritty items that make or break an open-source CRM implementation. This list is by no means exhaustive, but it will get you started on your implementation and will help you prioritize any customizations you make to the solution.

Accounting
r Identify your companys inventory costing method: FIFO (first in, first out), LIFO (last in, first out) or average cost. r Determine your companys accounting year, end month and date. r Obtain a chart of accounts and compare it to the softwares defaults.

Sales Policies
r Identify every brick-and-mortar and online location that sells your products. r Determine what types of products are sold: physical goods, digital goods, standard or configurable products. r Create or identify categories in which to group products. r Find out what sales taxes are charged in which locations. r Learn which customers are exempted from sales tax.

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r Determine the shipping rates for each location. r Find out what methods of payment are accepted and how your CRM system will integrate with payment processors. r Determine whether you will send emails to customers informing them of order status. r Find out if you offer special pricing to particular customers or groups of customers. r Learn how inventory is reserved against orders. r Investigate whether you pay sales commissions and to whom. Also learn what the commission schedules are and how commissions will be paid.

Order Processing
r Find out when orders are approved. r Learn whether you practice back orders. r Determine what happens if a payment doesnt go through: If it cannot be captured, will you still ship the order and bill the customer? r Find out if you offer credit lines to some customers.

Returns
r Determine whether you offer cash returns. r Learn whether you give cash refunds, store credit or either. r Find out if you refund shipping charges, outbound and/or return. r Learn if you charge restocking fees.

Customer Service
r Determine what email address(es) you use for customer service requests and other customer inquiries. r Find out how customer service requests received and processed. You should intend to spend 80 percent of your time planning your open-source CRM implementation. That may seem unnecessary, but it will eliminate wasted time and money, as Nestl learned too late. Experience is what you get immediately after you need it.
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