Issues for

Implementing CRM
Systems

Issues for Implementing

CRM Systems
I.
II.
III.
IV.

Potential implementation problems

Phased development
Supports and challenges of CRM
implementation
Potential rewards from CRM
implementation

I. Potential implementation
problems
Shaws problemsinclude ten potential

problems with implementing CRM

systems (DM Direct, 2002) that relate to
either the focus of the project of its
implementation

I. Potential implementation
problems
1-1 Failure to provide proper project focus
1-2 Failure to develop the system in the
proper way

1-1 Failure to provide proper

project focus
management and developer failures

include a failure to:

define the components or purpose of a

CRM system;
define the project scope realistically rather
than too large;
designate an executive sponsor or
champion;
describe expectations of key constituent
groups in using the CRM system

1-2 Failure to develop the system

in the proper way
management and developer errorsinclude

problems with:

acquiring the required technical knowledge and skills;

defining all of the risks;
defining functional requirements and system
objectives;
recognizing the importance of quality;
following a phased development methodology;
overlooking the importance of privacy and security;
and
performing a post-implementation evaluation

II. Phased development

2-1 Introduction to phased development
2-2 Avoiding the implementation problems
with phased development

2-1 Introduction to phased

development
Three major system development

methodologies:

Prototyping
Rapid application development (RAD)
Phased development methodology

2-1 Introduction to phased

development
The phased development methodology

consists of six stages:

Preliminary investigation
Analysis
Design
Preliminary construction
Final construction
System test and installation

2-1 Introduction to phased

development
The ADC loop incorporating a user

review reflects the influence of

prototyping
prototypean archetype or sample of a
final product

2-1 Introduction to phased

development
A key element in this methodology is the

identification of the system modules

data martslogical subsets of the data
warehouse

bottom-up approachfirst developing the marts

and then integrating them to form the data
warehouse
Exhibit 11.1: Data Marts as System Modules
top-down approachimplementing a data
warehouse and then subdividing it into data marts

2-2 Avoiding the implementation

problems with phased
development
2-2-1 Preliminary investigation
2-2-2 Analysis, design, and preliminary
construction
2-2-3 Final construction
2-2-4 System test and installation

2-2-1 Preliminary investigation

structuring actionsact as institutional

supports to foster the assimilation of new

technologies

2-2-2 Analysis, design, and

preliminary construction
functional requirement expansionoccurs by

gathering information

from users concerning their information needs, or

from customer touch points and the data that
should be gathered for each, or
from each market segment in terms of the
problems to be solved and the decisions to be
made

During these stages, the developers decide

which development tools will be used

2-2-3 Final construction

During this stage:

the CRM software and data are tested,

any required hardware is obtained and
tested,
any new or additional facilities are built,
and
user training programs are conducted

2-2-4 System test and

installation
user acceptance testassures the users that

the system meets all of the performance criteria

and upon user approval, the system is installed
and is put into production
A post-implementaion evaluation is conducted to
learn

the users perception of the system

the developers perception of the project
managementt
managements perceptions of the project
management

III. Supports and challenges of

CRM implementation
3-1 Supports of CRM implementation
3-2 Challenges of CRM implementaion

3-1 Supports of CRM

implementation
3-1-1 Top management champions
3-1-2 Strategic investment rationale
3-1-3 Coordination across functional units

3-1-1 Top management

champions
signals the extent of value placed on the

implementation of CRM systems for the

organization

3-1-2 Strategic investment

rationale
explains the expected organizational

benefits to be derived from the

commitment of resources toward the
implementation of a CRM approach

3-1-3 Coordination across

functional units
refers to the need to blend IT knowledge

with customer habits and with business

manager experiences as the
implementation affects functional units
throughout the organization

Exhibit 11.2: Supports and Challenges of

CRM Implementation

3-2 Challenges of CRM

implementation
three challengesstressed in different ways

throughout this text, key challenges include:

expectationsreflect system user concerns for

speed, responsiveness, security, and privacy
investmentsdefine the financial requirements for
acquiring the equipment and personnel needed to
design and implement a quality CRM approach
reactions to changerefers to the real resistance
that human beings experience when asked to
change traditional approaches

IV. Potential rewards from

CRM implementation
With discussions among customers,

employees, and managers about the expected

uses of CRM, the organization may define new
opportunities to distinguish its offering from
those of the competition.
Given an ultimate goal of growth and increased
relationships with customers, the organization
should consider the level of investment required
for each desired outcome.