Chapter 9:

Software Tools and Dashboards

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Overview

Topics discussed

CRM Implementation Options

Developing Software In-house

Buying Licensed CRM Software

Outsourcing a Managed Service

CRM Software and Applications

Stage-Wise Implementation v. an Enterprise Wide CRM Solution

Relationships and Flows between CRM Modules

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CRM Implementation Options

Developing Software In-House

Buying Licensed Software

Outsourcing a Managed Service

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Developing Software In-House

Requires the company to define all its requirements, pay for software

development, and internally bear all the R&D costs

Advantage:

Tailor-made solution fit to the current business practices

Develop internal skills that allow them to develop the system each time the

company requirements change

Avoid dependence on CRM software vendors

Disadvantage:

Most Expensive option (high development maintenance, and operating costs)

Difficult to attract and retain the employees needed to solve data warehouse

challenges

Long time commitment (One to two years)

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Buying Licensed CRM Software

Companies can license CRM software packages, which are sold as a block

(different modules) or as independent modules

Advantage:

Many of these CRM software packages have a proven record of success

CRM vendors will provide knowledge and training for the IT concepts

Disadvantage:

Expensive option (high initial fees, licensing costs, and maintenance costs)

Companies need to develop the IT infrastructure and integrate the new software with

existing applications

Each time a new or upgraded version is released, companies have to repurchase and

retrain for them

Resistance from employees in terms of adapting to the new system

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Outsourcing a Managed Service

Companies can outsource the CRM solution to a third-party company,

which provides the hardware, software, and human resources in exchange for a

monthly fee.

Advantage:

Lowest upfront costs: no software licensing fee, hardware system, recruiting, or internal

IT system costs

Pay-as-you-go approach: Pertinent for smaller companies or those with limited

marketing budget to benefit from CRM programs

Disadvantage:

High dependency on the outsourcing CRM company

Not viable for companies who need specific requirements in their CRM package

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Decision to implement CRM

Implement a

CRM project

Do not

implement a

CRM project

Purchase and

install a complete

CRM solution

from a vendor

Entirely

outsource the

CRM application

process

Yes

No

Stage wise

implementation

Implement an

enterprise wide

CRM Program

Decision Process for Implementation

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CRM Software and Applications

Stage-Wise Implementation vs. an Enterprise Wide CRM Solution

CRM industry mainly offers two types of CRM software solutions based on the company’s

needs and processes:

Stage Wise Implementation:

Offered in different and independent modules

Each module is adapted to a specific department needs

Ex) the company buys the sales automation software and the contact management

module from different providers

Enterprise Wide CRM Solution

Composed of different modules from the same provider

Modules may be adapted to each department’s needs, yet they are implemented

as a whole

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CRM Software and Applications

Relationship and flows between CRM Modules

CRM modules, whether implemented independently in phases or together in a

global solution, need to be integrated to have an integrated view of the customer

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CRM Software and Applications

Example of an Integrated CRM Configuration

Business Processes

Customer Contact Strategy

Data Mining Analysis

Data Distribution Hub

Accounts Payable/

ReceivableDistribution Sales &

MarketingBilling Production

Business Intelligence

Customer Service

Sales ForceManagement

Call Center Management

Store Management Sales Force Online Sales

Customer Feedback

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Summary

CRM provides capabilities for firms to optimize their marketing budget and increase

revenue, however poor CRM implementation can have negative outcomes.

CRM implementation strategies are: (a) develop in-house software, (b) purchase licensed

software from a third party vendor, and (c) outsourcing to a managed service

These strategies can be implemented via:

Stage wise implementation, which takes longer but allows firm to take

implementations one step at a time

Enterprise-wide implementation, which is more risky but allows the firm to take

advantage of the whole system’s benefits much sooner