Crm Ppt 05

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Customer Relationship Management:
A People, Process, and Technology
Approach
William Wagner and Michael Zubey

Chapter 5: Managing a
CRM Implementation
Customer Relationship Management

Reserved

Copyright
2007 Thomson Publishing: All Rights
Wagner
& Zubey
Copyright
(c) 2006 Prentice-Hall. All rights reserved.

1

Learning Objectives
 Describe the risks associated with implementing
CRM applications
 Discuss the process of choosing from among
various CRM alternatives and vendors
 Divide a CRM project into manageable phases
 Describe the CRM development life cycle
 Explain the importance of change management for
CRM initiatives
 Discuss the importance of setting critical success
factors for CRM projects
Customer Relationship Management
Wagner & Zubey

2

CRM in Action
 Moore Medical System
 medium-sized company with a niche in the “practitioner market” in the world of medical supply
 Practitioner market
 Emergency Medical Services (EMS),
 Public Sector facilities (schools, correctional facilities, industrial facilities)
 Physicians
 Podiatrists
 Specialty groups

Customer Relationship Management
Wagner & Zubey

3

CRM in Action (cont.)
 Market Share
 Podiatrist -75%
 EMS -37%
 Physician -5%

 Gross Margin -30%, margin for pharmacy supplies
-5%
 Competition Large firms were noticing the smaller niche markets  Small firms were further entrenched in niches.

Customer Relationship Management
Wagner & Zubey

4

CRM in Action (cont.)
 Past ERP Implementation at Moore Medical
 Implemented a J.D. Edwards ERP system in 1998 as
part of their Y2K remediation efforts
 Spent $7 million on this project and successfully
implemented the financial suite, the distribution suite
for sales, procurement, inventory, and transportation
management, the EDI application, and the Advanced
Warehouse Management suite.
 User dissatisfaction due to lengthy process in setting
up account or new order, inefficient process for
creating a bid or quote

Customer Relationship Management
Wagner & Zubey

5

CRM in Action (Cont.)
 Other issues
 it did not provide much support for planning future
demand for products.
 To compete better
 they wanted to predict future demand given the
impact of special marketing activities
 they wanted to analyze inventory and demand better.
 they also wanted to simulate different supply chain
scenarios.

Customer Relationship Management
Wagner & Zubey

6

CRM in Action (cont.)
 ECommerce storefront
 Opened in May 2001 at a cost of 1.5 million dollars
 To enable improved customer service and product
availability while at the same time reducing the cost of
sales
 Number of orders per month placed on the web site was
growing steadily
 13% were from new customers
 Needed manual re-entry of data into the system

Customer Relationship Management
Wagner & Zubey

7

CRM in Action (cont.)
 Cost of the two new implementations include
 Software costs
 Costs for the consultants
 New technology personnel for maintaining the web site.
 Additional purchase of two specialty healthcare web sites; Podiatry Online and Merginet to expand their market
share.

All this meant that they were not profitable in 2001
and it was not clear exactly when they would return
profitability

Customer Relationship Management
Wagner & Zubey

8

Common reasons that IT systems fail
 Insufficient or improper user participation in the systems development process
 Poor management of the implementation process
 Poor end user training
 Lack of management support
 High levels of complexity and risk in the systems development process
 Poor management of the implementation process
 Poor linkage between IT project and overall business goals

Customer Relationship Management
Wagner & Zubey

9

How CRM projects are initiated
 Assign Project Manager
 Form Steering Committee
...
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