Chapter 9: Software Tools and Dashboards

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1 Chapter 9: Software Tools and Dashboards

2 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 2

3 CRM Implementation Options Developing Software In-House Buying Licensed Software Outsourcing a Managed Service 3

4 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) 4

5 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 5

6 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 6

7 Decision Process for Implementation Stage wise implementation Decision to implement CRM Yes 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 Implement an enterprise wide CRM Program No 7

8 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 8

9 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 9

10 CRM Software and Applications Example of an Integrated CRM Configuration Call Center Management Customer Contact Strategy Store Management Sales Force Online Sales Business Intelligence Data Mining Analysis Customer Service Sales Force Management Data Distribution Hub Business Processes Accounts Payable/ Receivable Distribution Sales & Marketing Billing Production Customer Feedback 10

11 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 11

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