CRM: A Key Part of the Digital Nervous System

In today's digital age, to truly prosper, organizations must develop an integrated digital nervous system of relationships encompassing customers, partners, suppliers and their internal systems and become an Extended Enterprise. This integrated network should be globally accessible, virtual, secure, scalable, interoperable, and efficient because it will determine the success and failure of the enterprise. Central to this integrated digital nervous system is Customer Relationship Management.

A primary objective of CRM is to provide enterprise with a complete 3600 view of the consumer and to enable 1-to-1 marketing. The primary goal of CRM is higher revenues and not cost control. If you could sum up in two words the benefits of CRM, they would be "smart relationships". The focus (power) has shifted from enterprise to consumer. CRM is a technological strategy that focuses on customer services, sales, marketing and support communications, processes and practices. New customers are gained, and existing customers are retained and purchase more in greater quantity or more frequently. End users benefit by receiving superior service and getting the products they want, when they want them.

Internet and wireless technology here put the customer at the centre of an enterprise. By implementing CRM, organizations are enjoying immeasurable improvements in their business reflexes, better and faster strategic thinking capability and a closer, lifetime relationship with the customer. The internet has changed the balance of power between businesses and consumers, giving consumers access to more purchasing information, channels and choices. The catchword today is, dragging your feet on service and delivery is likely to make the consumer drag in a new competitor (supplier) with the click of a mouse.

With the proliferation of Internet, CRM has advanced to e-CRM. Some have claimed that this is the "killer app" for enterprises in an increasingly competitive market place. Proponents say that companies will benefit from on-demand access to products and services, less hassle with better and swift support, and less expensive services.

E-CRM is by far the biggest and most complex venture in the history of IT, even bigger than the ERP of the previous era. To be effective, CRM applications must integrate seamlessly with all corporate applications and systems internal and external to the enterprise. This includes ERP and e-commerce applications. Unless disparate systems are interconnected, the information they contain cannot be leveraged to best advantage. E-CRM is an outward-looking system that integrates front and back office systems into a format that acceptable to the outside world. The challenge is to ensure that these applications are integrated seamlessly into a scalable, secure, clean and manageable environment. Secondly, the organizations must recognize that CRM , whether "e" or not, is a starting point not the end result. The implementation strategy must start with the customer and be based on his or her expectations. These requirements drive the consumer behaviour, the functions and processes deployed, and only finally, the CRM technology to support the desired outcomes. Thirdly, that effective performance measurement is difficult and takes skill and time.

E-CRM isn't the single answer to staying competitive or for attracting and retaining customers-having a decent product helps. And the web won't be the only point of contact with your consumers. In a few years from now and beyond, most of the customers will still prefer the face-to-face communications as well as other traditional modes including phone, fax and email while CRM will be a lot more pervasive in companies. Customers will continue to use multiple points of contact including Internet, call centres, sales representatives, and any new medium that may emerge. The key to success is integration with the different points of contact and blended media will be the true killer app. This presents both a challenge and an opportunity. For now, e-CRM is a work in progress!