Tuesday, September 9, 2008

Why CRM Implementations has not so Success?

Lack of a clear business case and objective

Lack of active sponsorship

IT-driven project

Thinking of CRM as a system

Lack of organizational readiness for CRM

Unrealistically wide project scope

Insufficient change management resources

Perform gap analysis

Organizational change and company politics

Absence of a proper operational pilot

Poor data quality

Define and document your existing business processes.

Skilled CRM consultant

CRM is a valid business concept with enormous benefits for both a company and its customers. However, it has been hyped and oversold to the point where many tend to see the tools and technology as ends in themselves, and underestimate the complexity of process and organizational change.

The very high failure rate of CRM project can be attributed mainly to a lack of due diligence on the part of the companies launching them. There are clearly identified critical success factors and risk factors, which are almost exclusively related to the companies running the project rather than to the vendors or consultants providing the products and services.

CRM as supported by pundits today is nothing less than an instrument for survival, required the radical transformation of people and process a great expense. These are impossibly high stakes and corresponded neither to reality nor to what is feasible in a general business environment.

The complexities of organizational change necessary to implement CRM successfully are so far-reached that the learning phase will still run for a number of years before we begin to see acceptable is different, such results will usually be dependent on the lessons learnt from a company’s own previous CRM initiatives.

Successful CRM implementation requires a great deal of research, documentation, planning, and evaluation. Many companies believe they cannot afford the time and resources required to complete these tasks. Yet, they are quick to devote time, resources, and money to a CRM effort statistically leads to failure. Remember CRM is a methodology for doing business; therefore, you must understand, control, monitor, and continuously improve how your company conducts business.

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