Issues for Implementing CRM Systems

Issues for ImplementingCRM SystemsPotential implementation problemsPhased developmentSupports and challenges of CRM implementationPotential rewards from CRM implementation

I. Potential implementation problemsShaws 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 problems1-1 Failure to provide proper project focus1-2 Failure to develop the system in the proper way

1-1 Failure to provide proper project focusmanagement and developer failuresinclude 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 waymanagement 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; andperforming a post-implementation evaluation

II. Phased development2-1 Introduction to phased development2-2 Avoiding the implementation problems with phased development

2-1 Introduction to phased developmentThree major system development methodologies:PrototypingRapid application development (RAD)Phased development methodology

2-1 Introduction to phased developmentThe phased development methodology consists of six stages:Preliminary investigationAnalysisDesignPreliminary constructionFinal constructionSystem test and installation

2-1 Introduction to phased developmentThe ADC loop incorporating a user review reflects the influence of prototyping prototypean archetype or sample of a final product

2-1 Introduction to phased developmentA key element in this methodology is the identification of the system modulesdata martslogical subsets of the data warehousebottom-up approachfirst developing the marts and then integrating them to form the data warehouseExhibit 11.1: Data Marts as System Modulestop-down approachimplementing a data warehouse and then subdividing it into data marts

2-2 Avoiding the implementation problems with phased development2-2-1 Preliminary investigation2-2-2 Analysis, design, and preliminary construction2-2-3 Final construction2-2-4 System test and installation

2-2-1 Preliminary investigationstructuring actionsact as institutional supports to foster the assimilation of new technologies

2-2-2 Analysis, design, and preliminary constructionfunctional requirement expansionoccurs by gathering information from users concerning their information needs, orfrom 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 madeDuring these stages, the developers decide which development tools will be used

2-2-3 Final constructionDuring this stage:the CRM software and data are tested, any required hardware is obtained and tested, any new or additional facilities are built, anduser training programs are conducted

2-2-4 System test and installationuser 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 productionA post-implementaion evaluation is conducted to learnthe users perception of the systemthe developers perception of the project managementtmanagements perceptions of the project management

III. Supports and challenges of CRM implementation3-1 Supports of CRM implementation3-2 Challenges of CRM implementaion

3-1 Supports of CRM implementation3-1-1 Top management champions3-1-2 Strategic investment rationale3-1-3 Coordination across functional units

3-1-1 Top management championssignals the extent of value placed on the implementation of CRM systems for the organization

3-1-2 Strategic investment rationaleexplains 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 unitsrefers to the need to blend IT knowledge with customer habits and with business manager experiences as the implementation affects functional units throughout the organizationExhibit 11.2: Supports and Challenges of CRM Implementation

3-2 Challenges of CRM implementationthree challengesstressed in different ways throughout this text, key challenges include:expectationsreflect system user concerns for speed, responsiveness, security, and privacyinvestmentsdefine the financial requirements for acquiring the equipment and personnel needed to design and implement a quality CRM approachreactions to changerefers to the real resistance that human beings experience when asked to change traditional approaches

IV. Potential rewards fromCRM implementationWith 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.