how middle eastern companies can arrest crm “mirage”
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I M P L E M E N T I N G C R M
I N T H E M I D D L E E A S T M A R K E T S
How Middle Eastern companies can arrest CRM “Mirage”
Customer relationship Management & Middle East
Middle Eastern companies realize the value of CRM
IT spending on software alone is expected to be $4.5 billion
75% spend in public sector
Professional Services, Financial Services & Telecom are driving CRM market
increased visibility & forecasting, and faster sales cycle is the reason for adoption of CRM
CRM is a “Mirage” full of promise...
Customers thought
experience was better
33%
Customers thought there was marginal
or no improvement
46%
Customers thought situation
deteriorated 21%
46% did not see any improvement
Many projects abandoned after initial “euphoria”
Low user adoption
Did not change the behavior of sales people, they are more reactive
Seen as IT implementation and business owners did not hold hands
Implementation prolonged over weeks
Why did CRM implementations fail?????
50% of the companies were implementing because their competition did so. No strategic thrust
Mapping of process not consistent with maturity of the company
Benchmarked process too complex or irrelevant to company
Lack of Management support and commitment
The implementation is technology focused with insufficient attention paid to business issues
The CRM is not implemented with a clear strategy and lack of vision is demonstrated.
There is poor operational execution in terms of changing perception, lack of integration
Organizational change is not managed
Outcomes and outputs not defined
Plan your CRM using MACE Framework
•Evaluate current Strategic Position
•Evaluate Maturity of capabilities as Rudimentary, Evolved or mature
1) Maturity assessment
•Develop New Strategic Position & Strategic Emphasis of CRM
•Evaluate the dynamics & interplay between Human, Organization capabilities and technology
•Identify the changes required in technology, capabilities, procedures, processess and structures
2) Alignment of capabilities
•Select & implement the technology product
•Orchestrate the combination of Human capabilities, Organization capabilities and Technology to Deliver Performance advantage
•Ensure Top Management support, Performance Management systems, Rewards & Incentives, Training, cross-fucntional process integration, Customer centric processes
3) Change management & Adoption
•Early demonstration of results
•Financial measures
•Customer measures
4) Evaluate Success
Maturity Assessment
Identify the right reasons for CRM implementation
Shareholder value - includes increase in revenues,
increased market share and lower customer
management costs
Customer Value - Customer intimacy, satisfaction,
improved service, retention, loyalty and personalization
Regardless of whether it is a single or dual strategy,
make sure it is aligned to the market
The Strategic emphasis of the CRM should take the
firm to its new intended strategic position
Current Strategic Position
firm
Strategic Emphasis of CRM
New Strategic
Position of firm
Products
Markets
Firm Competencies
Industry
Maturity Assessment Firm Strategy Products/Markets Competencies Leverage in Value
Network
Inimitable resources
Orchestration of social structures,
assets & knowledge
Assess Maturity as rudimentary or
evolved
Alignment of capabilities
CRM is not implementation of technology, but strategy
Do not waste away years of capability built into human and organizational structures
Rather, embed technology into carefully realigned capabilities
Orchestrate Human & organization capability with technology to create advantage
Align all of them with overall Strategy
Human Capability
Technology
Organizationn Capability
Sustainable
Performance Advantage
Alignment of Capabilities
Human Capabilities The accumulated experience and collective wisdom of
employees
Socially complex processes that require an investment in learning.
Knowledge that gets created & resides codified
They are also most difficult for competitors to know
The CRM tool implemented should leverage these capabilities and create value.
The tools should not end up converting valuable human resources into data entry operators.
Such a thoughtless use of CRM would erode the human advantage the firm has built and nurtured over time.
Alignment of Capabilities
Organizational Capabilities Organizations architecture, supporting processes, control
systems, incentive policies, training mechanisms
People and systems need to be fine tuned to be customer oriented
Analyze the strength of the value network
Integrate it with the speed that a CRM lends
Information the organization needs to extracts out of the CRM
Is it diffused across the organization creating unique value ?
Change Management & Adoption
Top Management support Demonstrate leadership and show commitment towards a customer
centric mindset. Push for cross functional integration.
Implement Technology Product Pay heed to Integration, Migration, Data quality issues, running dual
systems
Understanding User needs Preparing Employeesfor change Training Changing Culture, Performance& Incentives Systems, Processes and Procedures Cross functional integration
Evaluate Success
The framework for measuring CRM performance should include metrics such as customer retention rate, customer satisfaction rate, customer
profitability, customer value, product/service customization, etc. Increase in market share, increase in revenues and growth rates,
decrease in sales and marketing costs, speed in servicing customers, new products/services developed as a result of gathering richer information about the customers, and intangibles like brand value created by superior customer relationship, service, knowledge etc., are measures of success.
Only that which is measured can be evaluated and improved upon.
In the very beginning, once shareholder value and/or customer value as the strategic emphasis has been identified, we need to define the metrics for measuring success.
Sum up….
Do not see it as a pure technology play and dive headlong into implementing the product
Broadly follow the MACE framework tailored to the capability level of organizations
There should be top management commitment, strategic focus, capability assessment and alignment, user perception evaluation and change, continuous training, seamless technology implementation, design of processes, systems and procedures around the new system, and solid change management
It is better to implement a CRM during down times, rather when there is growth and pressure on the sales and operations of the firm.
For more on implementing CRM
Refer our detailed whitepaper that is available at
http://www.slideshare.net/Raosrealm/manage-38641152
Thank You
Browne & Mohan Board & CEO Advisors, Management
Consultants 157/A, 2nd Floor, 10th 'A' Main, Jayanagar
1st Block Bangalore-560 011
Ph: +91-80-26565164/40951170 www.browneandmohan.com