
Russell Loarridge
Vice President
Firstwave
rloarridge@firstwave.co.uk
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Seize the customer - The age of enlightened CRM has dawned
CRM is dead. Or maybe it's alive. Or possibly it's just been biding its time
waiting for a chance to rise from the ashes of failed implementations. After
years of hype, CRM has been through every conceivable phase of fashion and
development, and currently lies in a state of limbo between saviour and
devil incarnate.
CRM has suffered more than most technologies because it has been the least
understood. Emerging as a panacea, it soon became a pariah as organisations
realised less than impressive improvements and zero return on investment
after collectively spending tens and hundreds of millions of dollars in
order to build more revenue from their customer base.
Two main issues have conspired to relegate CRM to its current predicament.
The first is the technology itself, originally designed on a client-server
architecture, ultimately a departmental model with little ability to scale
and an equally debilitating capacity to communicate with other departmental
applications.
Secondly,
CRM has suffered more than most by events outside its sphere of
influence, and that is the age-old inability to communicate between sales,
marketing and customer service, with each of those unable to communicate
with IT and vice versa. Regardless of the technology and specific products,
CRM simply can't work without the cooperation of these key operations.
That such a situation exists is ludicrous. In the second-last decade of
twentieth century, it had become clear to anyone with an ounce of sense that
the existing chasm between IT operations and the rest of the company had to
be bridged if any benefits were to be made by the millions being poured into
computer technologies.
This realisation led to the emergence of a new middle management position, a
hybrid technology and business manager able to translate business
requirements into messages IT departments could understand, and in turn
explain in layman's terms to business managers the application of certain
technologies
to meet those objectives.
Today, the merest glance at how UK organisations operate should be enough to
convince that this noble creature never saw the light of day, remaining
forever an academic exercise in optimism. And the manifestations of this
non-appearance are equally obvious to the casual observer: failed projects
wherever you look, and particularly where multiple business units and IT
have been forced into uneasy relationships without even a common language on
which mutual trust could be forged.
Crumbling data warehouses, unfinished ERP implementations, and innumerable
high-profile government project failures simply reiterate the point. No
wonder CRM in its turn has been vilified and now languishes in a kind of
techno fashion purgatory.
But ironically, just as the spotlight on CRM has been dimmed just a tad, a
curious situation is emerging: a steadily maturing technology whose
capabilities are now outstripping expectations. In short,
just as the world
rightly turned away from CRM after years of unmet promises, that same world
is now ignoring the opportunity to embrace a range of solutions that are
tried and tested, and increasingly interoperable with existing business
systems and processes.
What's more, the general shift to a highly scalable browser-based approach
has finally blown away the limitations of a client-server legacy which for
over a decade prevented CRM from being anything more than a glorified
departmental system vainly trying to call itself enterprise.
This move has been mirrored with a belated, albeit gratefully received,
acknowledgement that CRM is not a product per se, but rather an integration
of software, hardware, network and processes that provides relevant customer
information to suppliers and useful supplier information to customers. Best
of breed has replaced any notion that one size fits all, and, as a result,
interoperability, integration and workflow capabilities
now rise above the
functional checklist as businesses look to bring all aspects of customer
data to all possible sales opportunities - reaching in the process the long
sought-after goal of personalised campaigns.
Why? Because that's what consumers want. We want and increasingly need a
24-hour business and commercial experience, regardless of source. Queues in
supermarkets are no longer tolerated, five rings is all it takes now to hang
up the phone, and porridge-like Internet connections are being replaced
faster than the latest Shakira ringtone.
And what we also want, in the face of an information glut fed by the
Internet, digital TV, SMS, direct mail, telemarketing - the list goes on -
is something that will make choices easier, that will understand our unique
requirements, and will make us an offer we cannot refuse, in the way we want
to receive it.
We want companies to want our business, and we want them to show it. What's
more, the first
company that tries - and I mean really tries - to truly
interact with us on a personal level, will be given a lot of rope. Not so
the companies who remain in hiding behind the battlements of their
departmental data silo's.
That in turn means companies need technologies that match these consumer
requirements, that by definition have to interact across all departments.
Client-server it most definitely will not be. Instead, the new wave of
browser-based CRM front-end applications, and tools such as XML and business
process automation engines, are changing forever the mechanics of
communication, integration and automation.
In so doing, tools are being provided today that bridge the cultural gaps
between sales, marketing, customer support and IT. It may not be a
self-perpetuating cycle, but it's better than a slap in the face with an
unsolicited credit card application.
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