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Page 1: Potential Implementation Problems in CRM

Potential ImplementationProblems in CRM

By:Kiran Kumari

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Implementation of CRM

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Components of CRM Implementation

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Potential Implementation Problems

Failure to Provide proper project focus:

◦ Lack of clear definition and purpose of CRM and its components

◦ The project scope too large

◦ No sponsor or champion

◦ Fail to understand the expectations of key constituent groups in

using CRM system

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Failure to develop the system in the proper way:

o Lack the required technical knowledge and skills

o Failure in defining all of the risks

o Begin by selecting development tools rather than by defining

functional requirements and system objectives.

o Failure in recognizing the importance of quality.

o Failure in following a phased development

methodology(incorporate both prototype and RAD)

o Overlook the importance of privacy and security

o Fail to perform a post-implementation evaluation

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Three major issues

Resistance from employees

Motivation and training

Availability of information

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Implementation cost

Lack in formalization of procedures: Affects the adaptability of

employees towards CRM

Considering CRM as a complex practice: Employees still want to

use their contact books and schedule lists as it easy to maintain.

Keeping the complete track of potential customer is troublesome

Dose not pay at once: 75% of project fail due to high expectation of

ROI

Hurdles in Adoption of CRM

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Exorbitant Costs

Inadequate Focus on Objectives

Insufficient Resources

Complex Systems

Business Needs Most Important

No Customer Focus

Slow Returns

Data quality and availability

Problems with CRM Implementation

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CRM system not connected directly to the operational systems:

Not possible to access the operational and legacy data about clients

and products through the CRM, and users must access

simultaneously other systems, resulting in double entries.

Connection is not complete and transparent: In this case it is

possible to access the operational system not only through the CRM

but also directly, circumventing the CRM and rendering its use

optional.

OTHERS…

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Missing Client database: contains low quality data or with data

that is missing altogether

Poor performance: CRM system is connected to a large number of

systems and often interacts with various technologies, many of them

legacy systems. If the transition to CRM does not include the

upgrading of the technology of legacy systems, performance is

degraded.

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Develop corporate wide CRM engagement from key stakeholders. 

Envision the company's CRM strategy. 

Determine and prioritise CRM drivers and requirements. 

Develop a CRM roadmap

Key guidelines to follow before you implement CRM

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Strategic Planning:Setting project goals, identifying high level business

requirements, establishing project teams and high level project estimates,

setting the priority of modules to be implemented incrementally

Architectural Design:Integrating CRM with other enterprise software

applications

Phased Approach:Pilot programs and short-term milestones

Data Requirements of CRM Projects

Data Gathering

Organization Commitment:Understanding the benefits of CMR

Critical Success Factors of CRM Implementation

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Pre-planning Technical evaluation of the data available: This evaluation is

critical to determine the level of effort needed to integrate this data

Human aspect of the implementation Pre-implementation checklist: A checklist can help ensure any

potential problems are identified early in the process. Use of CRM hybrid model which is modular in design:

Generates flexibility and provides more recovery benefits,easy to deploy and cost effective.

Complete CRM project can cost a lot more but hybrid model CRM can cost much less and effectively solve problem of customer acquisition, retention with cost effective service.

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CRM's a whole business, whole brain thing: needs

understanding, commitment, energy and passion,business-wide

transformation requiring change in every aspect of a corporation

Getting rid of the inhibitors: wholly customer-driven, requires

radical change, experimentation, courage and faith

Command and Control Cultures (upside-down values)

Centralized Marketing Decision-Making (Marketing,

advertising and selling

Lack of desire to re-engineer sales and marketing(corporate-

wide acceptance of the significance of customer loyalty, customer

development  

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List of Enhancers and Enablers:

Culture Issue  Speed Issue Communications Issue  Prioritization Issue  Motivation Issue Resource Issue  Project Overload Issue  People Issue  CEO Issue - two elements: Gaining Support

Personal Power and Leadership Skills

'the sign of a good leader is that the people believe they did it themselves.' 

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Patni's domain expertise, proven methodologies and extensive technical

knowledge help customers build integrated solutions for sales force

automation, marketing, customer contact centers and service deployment.

CRM implementation methodology is designed to ensure maximum

returns on CRM investments, while minimizing risk.

Patni's CRM implementation practice can support projects of every size -

from limited CRM implementations like a customized lead management

solution to full-cycle projects such as implementing a consumer response

center.

EXAMPLE

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Bharti started in 1995,whole system was manual

Only 40% of customers issues getting resolved

Were not meeting customers’ expectation and customer loyalty was

a major problem

Subscriber base grew @ 15-20% and crossed 1 million mark in

2002

Airtel-case study

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Not able to recharge amounts anywhere in India, had to carry

scratch card

Not able to pay bills anywhere in India

Low customer retention

Hutch(now Vodafone) was rated far superior

System: Individual module for each of the process as order

processing, billing etc.

Growth obstacles:

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CRM IMPLEMENTATION

Technology evaluation and Gap Analysis

Internal Restructuring

and Re-engineering

Pilot programme

and feedback cycle

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Employees acceptance Users forced to work harder to create processes and reengineer

systems around the new implementation CRM training for all related employees Integration of services across all 23 circles and upgrading the

organization to provide newer services as selling of relevant schemes etc.

Maintaining the service level at the same time enabling transition to CRM implementation

Many independent systems need to be integrated Porting data from each system which totally went to terabytes Had to design proper workflow autoation

Issues faced during implementation

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Implementation partner is IBM

Provide a host of services as:

Online customer support

Customer profiling

Web interface

Sales management for vendor and partner

E-CRM intiative of Airtel:

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CRM Agro is an application that will help all those who are associated with agriculture industry to systematically build farmers database, analyze the data to generate timely market intelligence reports.

Apart from agri-input companies, banks,government agencies, agriculture extension department and agricultural universities can use this software to track farmers' package of practice and help them to be more productive.

simplified the whole process and now collecting agro market intelligence is as simple as sending SMS.

Data can be as varied as farmer profile information, retailer information, sales information or can be customised for your needs.

Ex- CRM Agro

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Crop protection Chemical Companies:

Bayer Crop Sciences and BASF India Ltd.

Use of SAP for:

Sales related issues and

Customers’ complaint management

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Thank you