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.
