Tips To Select and Implement CRM To Improve Your Bottom Line

Transcription

1 Tips To Select and Implement CRM To Improve Your Bottom Line January 7, 2010 Eric Kimberling, President Panorama Consulting Group

2 About Panorama Consulting Niche consulting firm with focus on the ERP and CRM market We Provide Three Primary Offerings: o ERP Software Evaluation and Selection o ERP Implementation Project Management o ERP Organizational Change Management and Benefits Realization Experience with 100+ CRM and ERP packages Depth in targeted industries, including manufacturing, distribution, supply chain, and high-growth companies ERP Vendor Independent and Neutral 2

3 Some of Our Clients What They Say About Us: Our ERP project would not have been nearly as successful without their assistance Panorama understands how to make ERP work for our business We are proud to award Panorama our 2007 Partnership in Business Award 3

4 What Is CRM? Customer Relationship Management Ties disparate business processes and systems into a single, integrated system Sales forecasting Lead and sales pipeline management Customer history and reporting Multiple delivery models 4

5 Isn t CRM Just For the Big Guys? Up until the 2000s, Fortune 500/1000 companies were the primary ones implementing CRM Over the last 10 years, a number of forces have increased adoption of CRM among small and mid-size businesses Increased flexibility of modern CRM software Lower business risk Lower up-front costs via subscription-based options Increased competition among ERP software vendors CRM is no longer a dreaded three-letter word 5

6 Common CRM Challenges Source: Panorama s 2008 ERP Report Three-year study of over 1,300 ERP implementations across the globe Full report available at: 6

7 Top CRM Challenges With SMBs 72% of organizations that have purchased a packaged CRM solution have still not achieved a single view of the customer. The real problem is the majority of critical information is stored in siloed applications that are not designed for all customer-facing processes. Yankee Group, Sheryl Kingstone, July 2006 SMBs must eliminate information silos to improve the customer experience. Yankee Group, Sheryl Kingstone, August

8 Top IT Application Challenges: Info Silos, Insufficient Staff, and Outdated Apps What is the primary technology challenge facing your business? Hard to get work done as unshared business information sits separately in different applications and departments Insufficient IT staff to manage my technology needs My business is outgrowing outdated business applications Outdated IT infrastructure doesn t support my changing business application needs Need to integrate my company Website with other business applications No time or expertise to assess new technologies Want a company website but don t know how to build and manage one Difficulty in managing marketing to customers via campaigns Want a company online store to sell products/services online Need to integrate my company Website with my point of sale system Difficulty in buying and managing online advertising Source: Yankee Group Nov 2006, US SMB Applications and Web Survey N = 722 8

9 Pricing is Still The Main Obstacle to CRM What is the primary inhibitor of your company s ability to adopt new technology solutions? Affordability: price of technology solution is too expensive Daunted by the perceived complexity of the solutions Must overhaul my company s entire IT infrastructure to cater to new technology Fear of downtime and disruption to my business Fear that it will not integrate easily into my current network Lack upper management buy-in and support Unclear how new technologies benefit my business and address my pain points No financing/leasing to buy IT infrastructure and business application solutions N = 722 Source: Yankee Group, Nov 2006, US SMB Applications and Web Survey 9

10 Six Tips for CRM Software Selection 1. Define clear goals for your CRM project 2. Clearly define business requirements in detail 3. Choose the right software 4. Set realistic implementation expectations 5. Develop thorough business processes & workflows 6. Position CRM for Benefits Realization 10

11 Tip #1: Define Clear Goals for CRM Establish sense of purpose and goals Ask Why do we want to implement CRM? Develop business-focused goals. Technical purpose and goals are inadequate. Identify and quantify opportunities for improvement 11

12 Tip #2: Clearly Define Business Requirements in Detail Complete detailed business requirements prior to evaluation and selection of a vendor Focus on current processes ( as-is ) and identify opportunities to improve ( to-be ) Prioritize requirements that are core competencies ( deal-breakers ) Involve employees and key stakeholders in this process 12

13 Tip #3: Choose the Right Software The decision of specific solution should not be taken lightly Any project can fail, even if it is the right software choice Force-fitting the wrong software can be very costly, timely, and risky Differentiate between ability to meet business requirements and software vendor sales hype Avoid choosing CRM solutions based strictly on competitor or software bandwagons 13

14 Tip #4: Set Realistic Implementation Expectations Remember that during selection, sales reps are trying to sell, not set realistic expectations Benchmark to other projects to define a realistic implementation plan and budget Don t forget to address non-technical resource needs that are critical to CRM success: Organizational change management & training Business process workflow definition User acceptance Business process simulation and testing 14

15 Tip #5: Develop Thorough Business Processes and Workflows Don t assume the software can handle everything off-the-shelf Define gaps between as-is and to-be processes Define business processes and workflows, not just system-level transactions Identify the human aspects of how jobs and business processes will change Clearly communicate changes to employees Build training activities around business processes, not system transactions 15

16 Tip #6: Position for CRM Benefits Realization If you don t measure it, you won t achieve it Develop a business case with actionable, realistic, and measurable business benefits Business case should not be simply to justify or approve the project Define specific areas where you expect to realize business benefits Develop plan to achieve those defined benefits 16

17 Six Traits of Best-in-Class CRM Implementations 1. Focus on detailed business processes and requirements first and foremost 2. Focus on achieving a strong return on investment 3. Commit strong project management and full-time resources to the project 4. Gain commitment from company executives 5. Take time to plan up front 6. Ensure adequate training and change management Source: Panorama s 2008 ERP Report, a study of 1,300 global ERP implementations 17

18 Trait #1: Focus on Business Process and Requirements Understand how your business operates Know why you re implementing CRM Define and prioritize your key business requirements Business requirements should be defined during selection and refined throughout implementation Don t overemphasize a software s technical capabilities if they re not aligned with your needs 18

19 Trait #2: Focus on Achieving a Strong ROI Develop a specific and comprehensive business case prior to committing to a CRM solution Business benefits should be as tangible as the defined solution costs Establish key performance measures Set baselines and targets for key performance measures Track post-implementation performance 19

20 Trait #3: Project Management and Resource Commitment Have strong project manager to support and participate in the project Leverage experienced resources Develop strong project controls Implement a risk management and mitigation plan Conduct ongoing phase reviews throughout implementation 20

21 Trait #4: Secure Executive Commitment Support from CIO or IT Director Ensure CEO and entire C-level are on board Support from top-management will minimize conflicts with business needs Establish regular project reviews with executive team and/or steering committee 21

22 Trait #5: Take Time to Plan Up Front Make sure you do it right, don t just jump in to a project Take time to validate the software vendor s understanding of business requirements and their project plan Budget time to thoroughly test new business processes, security roles, customizations, etc. The more time you spend, the less you will pay later Communicate to employees and stakeholders 22

23 Trait #6: Adequate Training and Change Management CRM systems involve significant changes for employees Training, change management, and job design is crucial to successful CRM projects CRM training should focus on business workflows rather than transactions Train-the-trainer approach is effective and embeds knowledge in organization 23

24 Questions? Our Next Webcast: Lessons Learned From Best-in-Class ERP Implementations on January 14, Software Selection Podcasts and On- Demand Audio: resource-center/ Eric Kimberling, President Panorama Consulting Group