1. "Successful CRM is a major business initiative,
not a technology initiative"

2. Are you looking for an integrated sales,
marketing and service driven processes?
Is your organization looking for an IT enabler which will help
your cross-functional team-members understand and
appreciate the different strengths and skills that each
member brings to teams?
Are you looking for an approach which effectively
manages customer relationships?
CRM is the answer.

3. IT for Business Managers, Module B, MBA, 2010
Professor Jim Slusser
Customer Relationship Management System
A business strategy to acquire and maintain more loyal customers
Final Presentation
March 2011
Team 11, Beacon Hill
Anastasia Elpida Kokkota
Ato Mensah
Junhee Han
Manish Murarka
Ricardo Moraes

4. IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011

5. CONTENTS
01 Executive Summary
02 Introduction
C
ustomer 03 Current Usage of CRM
R
04 Current Trend in CRM
elationship
05 Benefit of CRM
M
anagement 06 Risk Involved
07 Measures to Overcome Risk
08 ROI of CRM
09 Implementation of CRM
10 Future of CRM
11 Conclusion

6. 01 Executive Summary
- Sales of Customer Relationship Management (CRM) software have grown
from $800 million to over $14 billion annually.
- Adoption of CRM has grown from 53 percent in 2003 to 75 percent in 2010.
- CRM is a management strategy that enables an organization to become
customer-focused and develop stronger relationships with its clientele.
- Analysts predicts that by 2015, 33% of CRM spending will be on hosted
on-demand services.
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 1

7. 02 Introduction
1. Definition of CRM
- CRM is the ability to collect data
Relation Analysis /
from customer facing mediums, and
Management Reporting
integrate data into meaningful
information for CRM stakeholders
and business processes.
Sales - Stakeholders within an organization
Service
Marketing typically include executives,
marketing, customer service
(operations), finance and various
Finance / ERP groups within the organization.
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 2

8. 02 Introduction
2. History of CRM
- Build a marketing database to satisfy individual customers
- Improve service to key clients
- Collect surveys from smaller clients
- Give incentives, gifts, and loyalty programs to customers
- Increase sales
- Advanced CRM solutions that could dynamically use information.
- Understanding customer needs and behaviors
- Customize features for specific customer groups
- Break down of information to evaluate concrete statistics & the
reactions of customers
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 3

9. 02 Introduction
3. Three Major Perspectives of CRM
Business
Strategy
Perspective
3 Major
Customer Life
Technological Perspective
Cycle
Perspective
Perspective
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 4

10. 02 Introduction
4. CRM Strategy
CRM Strategy is executed in the form of a program and projects
Begins with a Business Strategy
STRATEGY
Leads to a CRM program
CRM PROGRAM
CUSTOMER
MARKETING SALES Program made up of a series of project
PROJECT + +
SERVICE
PROJECT
PROJECT
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 5

11. 03 Current Usage of CRM
1. Industry
Small
Financial Services Companies
38%
Large
companies
62%
Telecommunication
$12 Billion
Sales Annually
Insurance
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 6

12. 03 Current Usage of CRM
2. Vendors of CRM
• Salesforce.com
• Oracle
ERP vendors with • SAP
CRM solutions • NetSuite
• Epicor
• Infor
• Cegidim Dendrite
• Amdocs
Pure CRM solution
• Aspect
companies include
• Verint Witness
• Microsoft Dynamics
• SugarCRM
• SplendidCRM
Top open source
• ConcourseConnect
options include
• Hipergate
• Compiere
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 7

13. 03 Current Usage of CRM
3. Different Countries Example
India CRM Application Rate
North America 58%
- Between 2009 and 2014, CRM in
India is projected to grow at a European Union 24%
compound annual growth rate Asia Pacific 13%
(CAGR) of 16% to 19%
Latin America 3%
- One of the fasted growing CRM Middle Asia 2%
countries in the world. 0 10 20 30 40 50 60 70
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 8

14. 04 Current Trend in CRM
1. Fundamental changes in Customer behavior
Uses new online
channels and
new
communication
tools Trusts in advices
Seeks support to
made by online
connect with like-
acquaintances
mined peers
and strangers
Reads and
creates product Trends to buy
reviews, product Customer more online than
rankings and offline
blog posts
Wants to provide
Expects better
feedback about
customer
the product and
experience
customer service
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 9

15. 04 Current Trend in CRM
2. Paradigm Shift in CRM
Targeting Acquisition Establishing Decision
Need
VS
Sharing Experience
Expansion Retention
Impressions
Customer Support Processes
Marketing Sales Value
Service Operating Processes
- Customer processes developed from the company - Company processes developed from the customer
standpoint (Customer Life Cycle for the company) standpoint (Company Life Cycle for the customer)
- Process Centric : Adapt and optimize processes to - Conversation Centric : Include the conversation factor to
support better customer interaction establish brand community, enable idea capturing and
- Focused on CRM processes better segmentation
- Focused on the evolution of CRM processes and resulting
impacts in the value chain
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 10

16. 04 Current Trend in CRM
3. Conceptual Extensibility in CRM
Monitoring /
Interconnecting Tools
Conversation Tools
Customer
Data
Owned
Mining
Data
Process Support Process Support
RSS Forums
Account Management Account Management
Contact Management Contact Management
Activity Management Activity Management
Lead / Opp Management VS Blogs
Lead / Opp Management
Widgets
Campaign Management Campaign Management
Sales Management APIs Sales Management Open ID
Service Management Service Management
… …
Wikis Podcast
Social Networks Cloud
Brand Monitoring Computing
Service
- CRM Solutions focused in automating and supporting - CRM Solutions focused in community creation internally
internal business processes and externally
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 11

17. 05 Benefit of CRM
1. Benefit of CRM
Typical Benefits Claimed
Increased - Up Sell / Close Sell
Revenue - Attract New Customer
Improved Efficiency 61% - Improve Customer Retention
Improved Effectiveness 55%
Increased Competitive Advantage 35% - Automate Tasks
Decreased - Improve Campaign Efficiency
Cost - Improve Forecast Accuracy
Lowered Costs 29% and Timeline
Other 28%
- Marketplace Differentiation
- Increase Knowledge Retention
Increased Revenue 23%
- Increase Customer Satisfaction
Intangibles - Improve Product Pricing Model
*Garner Survey of December 2003, 150 respondents
0 10 20 30 40 50 60 70 - Increase your Understanding of
your Customer
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 12

18. 05 Benefit of CRM
2. Business Facts of CRM
Company Business Benefits of CRM
- 8% reduction in call abandon rate
Mitsubishi Motors NA
- Able to handle 75% increase in call volume with similar level of staffing
- Customer satisfaction rose from 92.3% to 98.1 %
Honeywell Industrial Control
- 15% reduction in call center personal costs
SKF - 25% increase in service related revenues
- Increased the number of products sold per customer from 4.6 to 6.2
FleetBoston
- 200% return on technology investment through cost reductions
Telstra - Threefold gain in employee productivity
Novell - Achieved 99% forecasting accuracy
Quick & Reilly - 10% increase in customer retention
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 13

19. 06 Risk Involved
1. Risk of CRM
“A customer service system affects the culture of the organization”
– Paul Doughty, VP of sales consulting, KANA software -
Organizational
-- Company’s own ability to Vendor Risks - Stability and maturity of
Risks
undertake the project the vendor
-- Users acceptance - Long-term commitment
Technological -- Current vs. New
-- Lose sight of the end goal. Market Risks - Uncertain times
Risks
-- Too much focus on the - Consolidation of the industry
technological aspect
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 14

20. 07 Measures to Overcome Risk
1. Critical Success Factor
CEO Involvement Executive Commitment
Risk Management Minimize Risk Expose
Data Integrity Common across the Enterprise
Security Management Control the Data One Collects
Culture Shift From Product Centric to Customer Centric
Performance Metrics Determine Metrics / Establish Baseline
Software and Legacy System Integration Avoid Data Pockets
Business Process Change More Important than Technology Change
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 15

21. 07 Measures to Overcome Risk
2. Overcoming Risk
- Create a customer focused environment.
- State clear objectives.
- Focus less on technology, make sure business and IT are both responsible
for implementation.
- Roll out CRM in phases if the company is large.
- Do not take a whole vender solution, because it seems comprehensive.
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 16

22. 08 ROI of CRM
1. CRM Industry Expenses
CRM Spending by Categoty
Software Licenses
Other
16%
19%
Software
Maintenance
6%
Hardware
Internal Staff 7%
16%
Telecommunication
Software Vendor 5%
Professional
Service
4%
System Intergrators
27%
*Garner Survey of December 2003, 64 respondents
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 17

23. 08 ROI of CRM
2. ROI Metrics
Common ROI Methodologies for CRM
ROI Metrics
Net Present Value 29.8%
As reported in Garner Survey, the most
Internal Rate of Return 24.6%
common financial measures are NPV,
Payback Period 22.8% IRR, Payback Period, Benefit-Cost
Ratio and Economic Value Add (EVA)
Benfit-Cost Ratio 10.5%
Other 8.8%
Economic Value Added 3.5%
0 5 10 15 20 25 30 35
*Garner Survey of December 2003, 57 respondents
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 18

24. 09 Implementation of CRM
2011 2012
Life Cycle Phase 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08
INVESTMENT APPRAISAL
Business Case Objective
; Get project buy-in, approval and funding
Business Case Role
; Inform and convince, develop collective ownership
Key Persons and Groups Involved
; Executive sponsor project owner, investment committee
PROJECT EXECUTION
Business Case Objective
; Keep project on track
Business Case Role
; Baseline reference for scope decisions
Key Persons and Groups Involved
; Project manage, project steering committee
BENEFIT HARVESTING
Business Case Objective
; Achieve project payoff
Business Case Role
; Measurement yardstick for auditing
Key Persons and Groups Involved
; Business unit management, auditors
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 19

25. 10 Future of CRM
• Corporate Performance Management (CPM)
• Customer Interaction Management (CIM)
• On-demand, less integrations on site.
• Software as a service (SaaS) CRM, managed in the
Cloud Compounding
• The rise of social CRM
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 20

26. 11 Conclusion
CRM is an IT enabler
• Identify High-Value customers
• Build Customer Loyalty to grow Revenues
• Reduce Costs through Micromarketing
• Create a Customer-Focused Organization
IT can Help…But there are Non-IT Hurdles…
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 21

27. 11 Conclusion
Non IT Hurdles for CRM
• Getting the right data
• Organizational Resistance
• Performance Management and
• Reward Systems
IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System
Professor Jim Slusser Final Presentation, March 2011 22

28. “How you gather, manage, and use customer information will
determine your organization success or failure"
- Beacon Hill Team 11 -