Implementation of Customer Relationship Management - Coursework Example

What are the advantages and disadvantages to a phased approach to CRM system Implementation? Introduction Employees most are the times that they resist any change even that which is aimed at improving and making their job even easier. When the change involves technology like that of the updated customer relationship management solution, the opposition for the same could be even doubly fierce. Phased type of implementation, which is involved in breaking the customer relationship management project into easily manageable segments ease the transition, and as well encourage the employee acceptance since it minimizes any disruption and the quantity of change that the users must be able to absorb at some point in life (Kumar 87). In the higher levels of an org chart, the stakeholders usually benefit from the phased approach since it has been quicker to implement and has been able to increase the efficiencies and enabled the organization in managing the risks that are associated with the customer relationship management implementation. For instance, considering the experience in a large financial firm of services that needed a replacement of the outdated Customer Relationship Management system. Over several years the system had not yet been widely adopted by the employees in the firm which had offices in the U.S and U.K. the reasons behind this were quite typical that the mentioned that the CRM solution was not in a position to produce up to the moment data and that as well, the perception within the functional limitation tied to the user interface challenges resulted in frequent entry of similar information (Buttle 78). The firm was quite aware that it needed up to date technology that would be in a position to offer a foundation for growth as the firm expanded and the needs evolved accordingly. Phased Customer Relationship Management Successful building of user adoption has always been a significant challenge with Customer Relationship Management for which the users need much training on tracking more granular of data. The tangled web designed for the data integration further complicated the matter. Therefore, the solution to it would seemingly need to communicate with the internal databases, corporate directory and the external systems. The risk could easily result in a sort of implementation that probably spends the entire organization for consecutive years. However, the firm responded by successfully lessening the effect in managing the scope of the project and in confidence leading the organization into change (Baran 56). This happened in adopting the phased approach to the implementation of the CRM solution. The first step of the implementation was a replica of the basic customer relationship management functionality in the legacy systems within a new platform and incorporated new capabilities. All the users started utilizing the incorporated new system where the legacy solution would be seen as read only tool that would enable the users to access the system easily not allowing them to adjust whether adding or updating the records. In the second level of the implementation phase, data integration from the legacy system was directed to the newly invented solution (Brink 50). In this phase, there was creation of an automated data that flowed in support of the information that was reliant on the CRM systems and generally essential to the analytics of the business that enabled the establishment of a foundation upon which the company would easily mine data as well as building its analysis based on the client relationships. The third phase usually focuses on the deliverance of new functionality that is value added based on the requests of the users who might have used the system for an approximate of a year. Ultimately, the widespread adoption and the functionality because of flexibility were the results of the phased implementation. The success of the CRM is based on the broad base of the users that embrace the technology in collaboration and they gain a deeper insight into the customer relationship. CRM has been a perfect candidate for the phased implementation method. The method of implementation is imminently very flexible and could even be implemented to be able to match the preferences and the needs of functional business geographic centers (Kumar 12). Large CRM implementations can as well be broken into a number of phased projects that brings the dexterity that would make the entire project manageable and even more efficient. Regardless of the extent of complexity, the phased methodology could quickly be able to deliver agility and efficiency at the same time minimizing the risks in a business and controlling the change management. Implementation of CRM certainly does not, however, have to be that dire. A phased approach for the implementation could efficiently mitigate and manage any potential problems. It effectively does so in addressing all the segments taken as a project unto itself at the same time taming the complexity and the scope throughout the cycle of the project. One benefit of the phased approach has been that each segment of the project can easily be implemented. Primarily, as the time line is abbreviated the phased approach needs a thorough and a complete understanding of the overall vision of the Customer Relationship Management, partnerships as well as business goals (Baran 09). Having the project as faster does not necessarily mean that it is less comprehensive. Instead, one is supposed to think of a phased CRM management as one more précised and targeted means of implementation. It helps to break down the deliverables of the project into small mail stones that are manageable that can easily be implemented with minimum disruption and maximum efficiency together with the management of risks. The efficiency is achieved partially by containing the primary scope of the project such that the numbers of the users, as well as the stakeholders involved, are reduced. Usually, a smaller part of the stakeholders could quickly make the decisions for the project deliverables with procedures without consuming much time in reaching a consensus on the committee. The phased implementation again helps to manage complexities in narrowing the focus to different processes and areas that mainly yield the maximum functional effect. The focus helps in the leaders in a business to eliminate or enable them to assume the external complexities that would stall or even slow the implementation. It also causes very few disruptions in the day-to-day business operations. In the same period the phased strategy, usually provide a learning curve for the future installations since the lessons that are learned earlier could easily be incorporated into later means of implementation (Brink 45). It enables the business to postpone customizations, time-consuming and the extensive until the period when the company fully understands the way the initial implementation operates. As the users comfort improves with the gaps carefully identified, new functionality with deeper changes could judiciously be introduced. The harsh economic wind has created installed pressure on the business leaders in achieving a rapid return on investment (ROI). The phased strategy response to this has delivered the payoff so quickly since the firm would soon begin to notice the benefits once each segment has been completed. Equally, a large implementation that is broken down into smaller projects is more likely to achieve a faster ROI since the individual firm units will start seeing improved efficiencies in the event of completion that immediately would contribute towards the organizational operating performance in general (Kumar 94). The focus on the process changes and the specific features, as well as training, is usually more targeted and found easy for the end users to learn and accept. Indeed, training becomes very effective since the phased strategy often spread the scope of the training needs and the communication across many steps that usually target some specific functions or even groups. In containing transition into defined functional grounds, the IT leaders stand a chance of efficiently addressing the ad hoc alterations in very critical business issues or priorities in the progress of the project. The adaptation in shifting the business priorities in the entire firm, on the other hand, it can easily undermine the employees efficiency and the companys performance in return and in addition to that, it is slower. Altogether, the mentioned factors can be used in achieving a successful implemented CRM project that would have a maximized end user adoption. Some organizations attempting the implementation of the CRM usually come across a gantlet of external and internal obstacles and highly experience the risk of the project failure. Usually, project failure inflicts significant damages that are not only because the CRM is too essential to uncover actionable opportunities and value of the customer relationship but because also the CRM tools are quite costly for the investment (Brink 55). Lack of communication, as well as training, in the project could easily threaten the success of CRM implementation. If the business fails to provide communication a d training during before and even after the project there arise a high risk of failure. Essentially, this is because the users do not take time in learning the system on their own and it becomes almost impossible for them to use what they are not familiar with. The phased adoption method of implementation in the CRM has certain disadvantages. It entails several adjustments that have to be done for it to be a success. There has to be training sessions that commonly appear confusing for the users since they are required to operate both with the old and the new systems. There are also many changes that are contained in the documentation and the project duration is usually quite long. The entailed system delivery milestone has always been unclear and hard to engage in (Kumar 57). Its completeness and the correctness of the dataset have to consistently been checked severally within a short span of time of operation. Entirely the implementation itself usually appear very complicated and unclear to most of the customers, employees and other users. The implementation is exposed to the risk of a proneness of making mistakes as it is seen to be complex (Brink 23). There is also a likelihood of fallback impossibilities in the later phases after the commencement of the process of the implementation. The specifications and the configurations of the hardware that the legacy system normally uses are delivered within the hardware specifications. The hardware usually is tested and assures proper functionality. In addition, the future new system and the legacy system is usually simplified and made clear in an assurance of proper functionality once the whole system is installed. Typically, the system training teaches the users the key transactions required in running the system (Buttle 99). The project teams purpose to create a skeletal business test in an environment, which takes the business a process from the beginning when they receive a customer order towards the period when the customer quest is shipped. Training is not as such enough in the adaptation of the information system because the users have the learning requirements that are the emotional guidance. The users need the emotional steps to be able to make cognitive progress. Conclusion The phased approach in the implementation offers broad chances of sufficient success; it gives an opportunity for the expected profits on investments and provides the assurance of staff adoption once the system has completely been adopted. It is, however, essential that all businesses face the CRM implementation with a very enthusiastic attitude making good use of a very carefully proven and planned method. In this case, the phased approach serves as the best tactic that will minimize disruptions and equally stands a good chance of managing the risks that are associated with the CRM implementation. In realizing advantages and full benefits as well as cost saving, the organizations that have no experience in the strategic CRM implementations need assistance from the partners with outright expertise in deploying and designing customer’s solutions (Baran 44). The phased implementation of the customer relationship management over the years have helped businesses in achieving tangible results in the rapid implementation making use of the phased approach that usually is based on a disciplined project management. Business leaders should take time in understanding the unique needs of a business right from the beginning, which should be continuous in offering a personalized degree of support during and even after the implementation. Works Cited Kumar, V, and Werner Reinartz. Customer Relationship Management. Dordrecht: Springer, 2012. Print. Buttle, Francis. Customer Relationship Management. Amsterdam: Butterworth-Heinemann, 2009. Print. Baran, Roger J, Robert J Galka, and Daniel P Strunk. Principles of Customer Relationship Management. Mason, Ohio: Thomson/South-Western, 2008. Print. Brink, A, and A Berndt. Relationship Marketing and Customer Relationship Management. Lansdowne, South Africa: Juta, 2008. Print. Read More