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CMIS Fall 2015 Case Competition

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Case : Crossroads CRM Transformation

Note: This case is COMPLETELY FICTIONAL, and the situation discussed is COMPLETELY

HYPOTHETICAL and meant for the educational purpose of the case competition only.

The names and logos of companies are trademarked by their respective legal entities and their use

in this document does not imply any sponsorship herein.

Case generously donated by Deloitte for use in CMIS Case Competition.

Disclaimer

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Contents

Outline of Business Problem 5

Nonprofit Industry and Current Trends 8

CRM Vendor Information 12

Instructions and Deliverables 14

Outline of Business Problem

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Participant Case Introduction: The Situation

You are a small group of newly hired analysts at a large consulting firm. You receive a high priority email from a senior partner in the

firm:

Gipper, Tom (US - New York)

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Participant Case Introduction: Case Question

Team,

Our consulting firm has been offered the opportunity to assist a Chicago-based non-profit company, Crossroads Inc., in a pro-bono assignment to help streamline some of their core business processes. I’d like to bring you onto the team to support this initiative, which will be an excellent way to give back to our community as well as highlight our consulting leadership in the non-profit industry.

Crossroads Inc. provides housing and tutoring services to at risk youth in the Chicago area. Since it’s inception in 1995, Crossroads has been very successful in managing its operations and finances, steadily growing its donor base, which supplies 99% of the organization's revenue. Crossroads is now poised to develop the breadth of its services and expand operations to new urban areas, but before doing so needs to upgrade its antiquated CRM system.

Expanding operations will introduce new challenges for Crossroads, especially in managing CRM (Customer Relationship Management) activities across several markets. These activities include managing donations, supporting funding campaigns, organizing volunteer assignments, and tracking donation trends. The current CRM system was developed in-house 5 years ago when Crossroads was much smaller. The system has an outdated UI that makes it prone to user-entry errors and disorganized data., and is no longer robust enough to support the reporting and forecasting tools Crossroads need to remain effective. The system also currently uses a number of manual processes to complete specific objectives, resulting in inflated headcount.

In recent discussions, Crossroads Inc. management has been divided between enhancing the current in-house solution and building a single global web-based replacement system. They have also raised concerns over the risks implementing a new CRM system will have on maintaining their current operational efficiency. In addition, most Crossroads employees are volunteers who offer their post-work hours. These employees are accustomed the current system and the culture at Crossroads is especially change adverse. They will need concise and user-friendly training materials to easily educate the constant flow of volunteers on operation of the new system.

Our consulting firm has been tasked with advising Crossroads on implementing a new CRM solution. The system would need to address management’s concerns with usability, data entry, and reporting and forecasting capabilities. It will need to be flexible and scalable enough to support Crossroads’ growth and expansion as the non-profit increases service offerings and enters new markets.

I need you to conduct an initial analysis and draft a few options and recommendation to start our discussion with Crossroads. Please focus on the following objectives:

• Outline client requirements• Custom software vs. Commercial Off-the-Shelf software• CRM implementation risks• Training and change management plan

Crossroads management is anxiously awaiting our presentation. I am confident that this team will be able to pull together a solid recommendation quickly. I’ve attached a pack of reference material to help you. Thanks again for your assistance in this exciting effort.

Best Regards,Tom

Today 6:30 PMGipper, Tom (US – New York)

Consultant Team

Important: High Profile Non-profit Opportunity

Non-Profit Industry and Current Trends

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Non-Profit Organizations (NPO) Landscape and Opportunities

Opportunities

Older people and their estates represent a significant portion of the donor base for many nonprofits. The

number of Americans aged over 65 will increase by nearly 80 percent between 2010 and 2030. Many older

Americans have both the inclination and the means to make larger charitable contributions.

Social

Networking

Internet

Donations

Favorable

Demographics

Many nonprofits have made it easy for donors to contribute over secure Internet websites. Consequently,

online giving has joined more traditional channels as a mission-critical part of the fund-raising mix. Donating

online is often more efficient than offline and can help charities reduce administrative costs. Nonprofits seem

to have the most success when they combine traditional methods, such as mail, with an electronic option

Some nonprofits have begun creating and maintaining profiles on online social networking sites to recruit new

staff members and volunteers, engage audiences interested in their cause, build supporter lists, and raise

money. Other nonprofits are reluctant to delve into online social networking, primarily due to the significant

time investment. Some of the most popular social networking sites include Facebook and Twitter. There are

also professional online networks, such as LinkedIn, and issues-focused networks, like Change.org.

Contribution

Breakdown by

Source

Contribution

Breakdown

by Recipient

Landscape

Breakdown by

Organization

Corporations

6%

Bequests

7%

Foundations

15%

Individuals

72%

Religion

32%

Education

13%;

Human Services

13%

Gifts to

foundations

10%

Health

9%

Public Society

Benefit

7%

International

Affairs

6%

Arts, Culture

5%

Environment,

Animals

3%

Gifts to

Individuals

1%

Unallocated

2%

Public

Charities

68%

Private

Foundations

7%

Other NPOs

25%

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Technology Impact on Fundraising

Social media and mobile technologies present a significant

opportunity for non-profits to reach individuals like never before

Most Common Fundraising Vehicles a

On average, public charities make use 6 fundraising

vehicles, with the following being the most common:

Note:

a. The 2010 Nonprofit Fundraising Survey, The Nonprofit Research Collaborative. http://foundationcenter.org/gainknowledge/research/pdf/nrc_survey2011.pdf

b. http://www.ragan.com/Main/Articles/15_stats_on_how_the_top_nonprofits_use_social_medi_43841.aspx

c. http://impact.webershandwick.com/?q=social-impact-survey-finds-88-nonprofits-experimenting-social-media

d. 2010 State of the Nonprofit Industry Survey

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Most Common Fundraising Vehicles

Fundraising and Education Trends Resulting from the Internet and Social Media

Online giving rose 58% of the organizations using it, the most

of all fundraising vehicles a

92% of non-profit websites contain at least 1 social media

button b

90% of nonprofits have a Twitter share button on their

websites b

Roughly 88% of Non-Profits are experimenting with Social

Media c

31% of NPOs that use Social Networking sites expected

contributions from the sites to increase in 2010 d

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Leveraging Social Media to Reach Target Audience

Importance of Website Activities a

Note:

a. 2010 State of the Nonprofit Industry Survey

b. 2011 eNonprofit Benchmarks Study

Not Important Very Important

Two of the primary uses of NPO websites involve

communicating with new donors and leveraging new

and existing donors to raise funds

Given the projection that almost 50% of Americans

would have been on Facebook in 2013 (up from 42%

in 2011), NPOs would be wise to increase usage of

social networking to enhance their current websites

The Wildlife/Animal Welfare sector of NPOs are

currently leveraging Facebook more than 5 times the

average NPO (with ~84K Facebook “likes” to the

average 15K) b

International NPOs use Twitter at similar rates to

Facebook, with nearly 17K users for each social

media site. All other NPO sectors do not use Twitter

as much as international NPOs

CRM Vendor Information

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Key Players in CRM Solution Technology

Magic Quadrant: Players in the CRM space were validated by Gartner based on service provided to customers as they move among

communications channels — including social media — while retaining the customers' context, but also to deliver the appropriate business

rule to determine the next best action, information or process with which to engage the customers.

Spending Share: Forbes analyzed the spending on each by client among the top vendors to shows their share of the market

Figure 2: CRM Market ShareFigure 1: Gartner Magic Quadrant

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Instructions

You may use any / all publicly available information (including any databases you have access to through school)

You may also consult industry and analyst reports, trade magazines, and other publications beyond those provided

You may NOT call any employee of the companies that are the subject of the case

You may NOT call any industry or company analysts or other experts

You must create presentations that will take 25 minutes (15 minutes content and 10 minutes Q&A) with 5 minutes to transition teams

Note: This case is COMPLETELY FICTIONAL, the situation discussed is COMPLETELY

HYPOTHETICAL and meant for the educational purpose of the case competition only.