CRM Strategy - Business vs. Technology
Having worked on CRM system implementations for quite some time, I have been listening to one common statement from business / product managers - I am not satisfied with the CRM system that is being deployed/was recently deployed. It is a common complaint across the spectrum, right from small businesses to the larger enterprises. Why this does happen again and again, that too across the world? Is it that technology cannot meet business requirements and expectations all the time? In this post I would like to discuss one of my observations and find some ways to address this issue.
It is very common to see an organically growing company starting off their CRM in Microsoft Excel sheets, and then using Visual Basic macros and in-built functions. They then think about starting with client-server based home-grown software tools with small database technologies similar to MS-Access. The company grows steadily, and then comes the complexity with millions of customers and business expansion strategies like acquisitions and mergers, forcing the companies to buy COTS products for CRM.
The Issue
By this time the processes, functionalities and technologies followed in the regular business is not supported in any COTS package and people may not be ready to accept big changes! Does it mean that the technology cannot support business? When the promoters foresee how the business is going to be in a few years they should also foresee and plan the vital three - people, process and technology.
People: This includes customers, employees, partners, investors - basically all the parties who show interest in the company with different perspectives. With the latest technology trends, everyone interacts with the company, accessing information/data using technology.
Processes: Every company/individual has their own strategy when it comes to addressing the needs of customers, marketing tactics and other ideas. It is hard to expect that the processes would be same for two competitors selling/serving same products. Can the COTS CRM products available in the market accommodate these variations?
Technology: As it evolves, it influences the above two factors, bringing the changes in people and processes. Technology influences the market with new and innovative products and services, and also the delivery and assurance of these products and services.
To me, technology is one of the factors enabling the business strategy along with other factors like people and processes. All the three need to be planned well in advance, and based on the business strategy and direction.
In the coming posts I will address some more strategy related questions. Do share your views here.
Comments
Good thoughts. An org does not just need to get all 3 dimensions right but each of them also need to be nimble.
Let's take technology for example. If it is enabling a business case that is built out 3 yrs back, it has lost the race then and there. Successful technology is one that adapts and that too very quickly. Same holds for people and processes.
Very few companies realize this when they embark on multi-million $ transformations
Posted by: Badri | December 11, 2009 4:31 AM
Apart from P,P and T the other factor that is sorely and surely missing is Commitment! As long as the internal "dynamics" (as I like to call it) are at play, a project can never be successful and it will limp and go to "some" end as such.
Only with a top down commitment across business lines and departments can these dynamics be handled well and then the P, P and T can be leveraged much better. Commitment builds Trust and that in turn helps the other actors and enablers.
Posted by: venkataramanr | December 11, 2009 9:41 AM
4th factor which I think of is strong Change Management which needs to be enforced and strategic efforts to be made towards accepting and digesting the new COTS technology and the benefits it brings in. COTS products do have their limitations towards catering to variations across the different business processes for different vendors. It is essential to know the standard practices that are followed across and business processes should be in line with it if not exact. That is the challenge, and key is in balancing both evolving technology and business processes in making any implementation a success.
Posted by: Aditi Patil | December 24, 2009 10:34 AM
Thank you for your inputs/comments. I do agree that commitment and trust (human touch) is needed for any project. Also I do agree that organization change management is another important point that should be considered. Also includes another point of data/information migration. I am in the process of writing another post, I will get back to you on these.
Posted by: RajaSekhar Ravi | January 11, 2010 10:42 PM