CRM : A Way of Life

Any calls that you might get for a new credit card, insurance policy, loan,
etc (and we all get quite a lot of those), is actually the beginning point as
well as the consequence of a CRM (Customer Relationship Management) system of
the said organization. Also, when you receive a call multiple times (in spite of
multiple refusals), and keep on getting credit card calls, even when you have at
least five of them in your wallet, the credit again goes to CRM.

CRM as a concept as well as a phenomenon, has undergone a massive change
since it captured the industrys imagination well over a decade back. From the
initial euphoria to the biting realities to finally coming around to the
acceptance of that reality, CRM is something that has never remained unstirred
even for a moment.

All the action apart, and maybe solely because of this robust activity, CRM
has always been an object much in the limelight. And while everyone seems to be
having their own perceptions of it, CRM is still something that the whole
industry is talking about. We try to clear some of this confusion, even as we
try to ascertain what it is that makes CRM such a hot technology and a point on
every CIOs agenda or accomplishments list.

Stairway to CRM

The CRM wave took the industry by storm somewhere in the mid nineties. But
the loud drums which announced its arrival, seemed to have gone off a bit too
early. After the initial euphoria ended, what came to light were a lot of
implementation glitches and a lack of smooth back-end alignment between the
organizational processes and the CRM. V Subramanya, country manager, information
management, IBM India/South Asia agrees, Everyone began to think that once they
put a CRM system into place, it will work automatically. But that obviously
wasnt true. Thus, a lot of initial CRM implementations failed or didnt live up
to the industrys expectations.

That also explains why some IT implementators became vary of CRM, in what can
be called its mid-phase. Sushant Dwivedy, director, business solutions,
Microsoft India further explains the reasons for this when he says, Earlier
there werent even well defined processes in place for a CRM system to operate.
Thus problems were natural. Add to this the complexity that comes with every
new technology and its easy to see why things didnt go smoothly.

Subramanya points out that the major reason why the CRM implementation failed
was that CRM as a system was always looked at in isolation. There was no
holistic outlook. CRM initiatives took place in isolation, simply as a reality
at the backend. And when a complete view is lacking and interaction routes are
not defined, then it is bound to fail, he notes.

Apart from the alignment and integration part, there were the technological
hurdles. CRM software is a multilayered design which needs expertise and a
certain skill set to develop as well as manage. During the initial phase, as
companies were struggling with their processes as well as CRM, the need to
change the system and its applications was nothing unusual. But that change was
long and slow, and by the time one element was removed and another inculcated, a
different problem cropped up.

So change management seemed to be a big problem for CRM in its early years.
Then there was the standardized approach instead of a need based one, that
served to cause more confusion and from being much talked about, CRM became
something rather to be avoided. Thomas Abraham, MD, Sage Software India,
validates this claim when he says, CRM was fairly confusing for people even
till 4-5 years back. People were beginning to ask whether we should adopt it at
all.

But thankfully, CRM finally seems to be emerging out of these troubled
waters, and whats more it seems to be emerging rather triumphantly!

Into the Sun

Yeah, thats where CRM is heading, right after its tryst with stormy seas.
The fact that it has found a way into the curricula of business schools is as
much a corroborator as it is an encouragement to the above statement. Says Dr
Somyajulu Garimela, professor (marketingteaching CRM at International IMI,
Delhi), CRM is creating a lot of buzz in the industry. The students are keen on
it as it is certainly an added advantage when it comes to hiring. The industry
was skeptical 3-4 years back, but it is demanding CRM skills now.

The reasons for this are multi-dimensional. They range from the matured
perspective of the industry to the innovation and understanding of the vendors.
The entry of big payers like IBM and Microsoft has certainly helped. Today
vendors have the capability to provide almost everything ranging from managing
your existing infrastructure, to analyzing your unstructured information, to
creating specific solutions applicable to your vertical or business.

And all this seems to have played its part in adding color to a bleak looking
CRM landscape. Says Abraham of Sage (they have just come up with a new solution
specifically for stock exchanges), Organizations now have very specific needs
from a CRM system. Thus there is pressure on implementators for a more
consultative approach. What is emerging is a high-involvement model.

Users of CRM also are finally articulating its great potential. According to
Srinivasan Iyengar, director IT & change management, Aegon Religare, which was
also the first Life Insurance company to implement Microsofts Dynamic CRM, The
biggest benefit of CRM is that we are getting to know our customers better. It
is enriching our interaction with the customers and enabling us to upsell and
cross sell very early in our life.

Another major factor that has played up in the favor of CRM has been its
perception. Simply put, CRM was initially perceived as a call center
application. That is no longer the case. Its understanding had expanded to
include what lies beyond the software. All this has resulted in better alignment
with processes and thus deliverance of tangible benefits.

Earlier, if a sales person had to use a CRM tracking device, he had to learn
and use the system in isolation, apart from his routine jobs. And that made it
tedious. Now, however, he can use and operate it right with his first morning
stroke on his computer, ie, checking his email. There is no need to elucidate
the benefits of such integration. As Dwivedy observes, Ease of use has
certainly been enhanced by integration with regular office tools.

After saying so much, do we need to add that all this spells good news?

The Way Ahead

According to an IDC research, the CRM market is expected to grow at a CAGR
of 20.9% during 20052010, to reach a size of approximately $190 mn by 2010.
While those figures may undergo a little change in the face of the current
economic scenario, the trend is not something to be disputed. IDC touts CRM to
be one of the most significant growth and adoption areas and our panelists
completely support that claim.

Some definitive trends also seem to have surfaced over the past couple of
years. These are primarily the maturity of the industry and the approach of the
vendors. One of the biggest trends is that CRM apps are now being amalgamated
with the daily work environment. As Dwivedy puts is, Its becoming a way of
life. Other things like customized solutions and better change management
processes are already making a difference.

CIOs are now looking seriously at this technology and the results it can
deliver are gaining prominence, more so because of the current market
conditions. As Daya Prakash, head, IT, LG Electronics says, We are certainly
looking at evolving CRM in 2009. This is because there is pressure on us to
optimize costs and eliminate wastages.

Given this optimism it is only fair to conclude that CRM is not far from
reaching the SMBs and making its presence felt in that arena as well. All our
panelists concur on the statement that CRM is here to stay and evolve further.
Dr Somyajulu Garimela puts the reasons for this in a most apt way when he says,
CRM is going to stay because this time around, the growth is not euphoric, it
is realistic.

Mehak Chawla

mehakc@cybermedia.co.in