CRM

Investigation of CRM system/software project implementation failure in organisation and a roadmap for successful implementation

Investigation of CRM system/software project implementation failure in organisation and a roadmap for successful implementation

INTRODUCTION

Overview

CRM systems cost organizations millions of dollars each year as these organizations attempt to improve efficiencies and gain competitive advantages in an increasing global economy. Somers and Bhattacherjee (2007) estimated that new license revenue for worldwide ERP system modules is forecasted to experience annual growth rates of 7.7% from 2004 to 2009. Despite these growth rates, many organizations are not experiencing the anticipated successful outcomes from the use of CRM systems as a value-added technology (Crosby & Johnson, 2000).

Purpose of Study

Working as a CRM consultant, I had come across a number of instances where organizations have sought to implement a CRM system but have failed in their efforts. Though implementation of such a system is a step in the right direction, I have witnessed organizations often overlooking several key factors. This unintentional and often deliberate ignorance of essentialities of a CRM have intrigued me and led to the decision of conducting my own research on the issue.

The purpose of this study is to expand the boundaries of our knowledge by exploring some relevant and factual information relating to the analysis of CRM project implementation failure in organization. The aim of this research is to investigate different CRM system implementation failure in organization along with the success factors. The author will also investigate CRM implementation phases; this will mainly focus at the full implementation lifecycle of CRM with the main objective of identifying the main problems. The stage of CRM system implementation is: planning, requirement gathering/scoping, vendor selection, solution design, user acceptance testing, training, user adoption, on-going support, project review. Further aims of this research include:

To investigate the main obstacles of Customer Relationship Management (CRM) system implementation

To investigate why CRM system isn't adopted and utilized more in organization

To investigate why organisation's struggle to use a CRM system effectively?

To investigate major challenges facing CRM system implementation in organisation/ in today's market

To propose successful CRM system implementation principles and tactics

LITERATURE REVIEW

The increasing competitiveness within the global marketplace, as noted by Cumming (1998), can be attributed to the combination of an organization's ability to harness information technology in conjunction with the successful implementation and usage of innovative products. However, the rapid pace of technological advancements and the increasing utilization of innovative technologies within the global marketplace have presented organizations with a greater level of complexity in both their strategic decision making and the challenges associated with those decisions (Dunfee & Gunther, 1999). As a result, organizations are implementing value-added technologies, such as Client Relationship Management (CRM) systems, into their organizational structure (Stephenson & Sage, 2007).

CRM system is a value-added technology that is designed to integrate business units, improve business operations through process standardization, control inventory management, provide product flexibility allowing customer choice, production planning, marketplace transparency, and overall financial performance (Hsiao, Yang, Lin & Lee, ...