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Sat, Oct 24, 2009 17:25 EDT

CRM, ERP, BI, and IT Investment -- Where Do You Find the Business Benefit?

Companies Frustrated by the Lack of Results with ERP, CRM, and BI Projects CAN Achieve ROI and Market Growth!

Topic: IT Organization Management

Current Rating: 5 Comments: 0

Retool, retool quickly! 

Most companies want to use CRM applications as a way to “supercharge” their sales forces.  They want to gain some advantage with customer retention and acquisition, to manage the sales pipeline and to have better market insight.  But few companies realize these goals. 
 
After going through some of the academic studies and literature about CRM implementation there is evidence to suggest that some companies see some limited benefit from their CRM implementations, but overall they are not happy.  These anecdotal accounts show the primary reasons companies benefit from their CRM implementations at all is because the project itself causes the company to look more closely at their customers.  Even then, with few exceptions, the way the CRM software is often implemented does little in the way of significant market-focused benefits. 
 
It doesn’t have to be that way, and you as a customer can change it. It’s not the SAP CRM application that is the problem.  Between CRM, ERP, and BI, the tools are all there, but an instrument in the hands of a journeyman musician sounds far different than the same instrument handled by the journeyman's apprentice, or a novice.

Where Things Get Off Track 

Most SAP CRM implementations relied on retooled, post-Y2K HTML and Java consultants who flocked to the CRM space. Because the SAP “New Dimension” products were new the screening was not sophisticated and the experience requirements were low.
 
These web techies had little or no business experience and certainly little (if any) understanding of competitive pressures, value propositions, business strategies to retain or acquire customers, or a whole host of key issues that a good CRM consultant must know.  They were (and still are) completely clueless about marketing, customer / sales conversions, product development cycles, solution databases, improving service cycle times, etc.  They might know how to set some switches, or make some coding changes, but they have little ability to help transform your business or in how to move you forward in the marketplace.  Basically they had little, if any business experience.  
 
These consultants learn to talk the application talk, and they can spout some of the tools available, but when you drill down deep into their experience you find they are an empty shell.  They are like apprentice “musicians” who can read a few notes on a page of sheet music but they lack the years of practice and do not have the musician's "soul" to understand and appreciate business.  These application technicians lack the critical transformational understanding your business needs.  True CRM success stories require consultants who have some measure of business or marketing background, not just an IT background. 
 
If you’re running a Formula 1 race team you don’t go to your nearest garage with a great tune-up special and hire them to do your tune-up before a race.  They MIGHT be able to keep the car running but you have no chance of winning the race with their expertise.  Their garage serves an important purpose, and it fills a particular niche, but if you are looking for race winning results they are not the right folks for the job.

Do They Know What You Need? 

What are your goals, your reasons, or your business triggers for doing CRM, ERP, or BI applications?  Did your implementation vendor assessment or consultant review include a detailed exploration of exactly how they would help you achieve those goals? 

Does the vendor or their consultants have any real business change management experience to help focus the company on a commitment to the customer experience?  Do they have the critical communication skills to support a communication program to the larger

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