Sep 12, 2009

Who's To Blame When CRM Goes Bad?

It’s no secret that CRM implementations don't always work out. But while it's convenient to blame the software vendors, it's also worth noting that organizations and users are often unprepared to take on these projects. In the November 28 issue of the British journal Network News, Paul Allen and Chris Lee look at some of the recent data on CRM projects in the U.K.

Suppliers, not surprisingly, say that implementation of their products is the main problem, with poor planning and preparation of data. Jo Buxton, director of business development for CRM specialist Experian tells Network News of her company's negative experiences when explaining the CRM concept to business, particularly with more conservative companies. "Traditionally, we've found ourselves speaking to marketing departments rather than IT. There needs to be more coordination between marketing, IT and risk management departments to evaluate what they want from CRM," she tells the journal.

Another reason may be that "too many businesses [have] bought into CRM to try and cover up cracks in their business facade," according to Andy Kellet, researcher and analyst at the Butler Group. He tells Network News, "CRM is still seen in many quarters as a ‘silver bullet' technology that can make business problems go away. This has never been the case, and CRM will only ever be successful when all parties work together to integrate a solution focused on the real needs of the organization."

Kellett observes that the main reasons for failure often start early on in the process. "Too many organizations go into CRM without doing enough preparation. They do not understand the effects of CRM, they do not face up to the commitment they are making, and when it starts to happen they are not ready," he tells the journal.

Adding to problems that are unique to the U.K. is the Data Protection Act of 1998. Experian's Buxton tells Network News, "The Data Protection Act is a minefield. We've had to change every database and application we hold, and have a team of five that concentrates purely on compliance issues, internationally and for the U.K." She believes that these legal hurdles will force many companies to outsource CRM projects.

Buxton also urges companies to scale back their CRM projects to manageable proportions so that "the industry can regain confidence in CRM." And Kellett adds that collaboration and cooperation are vital elements that have all too often been missing in CRM implementations. "There is normally no single entity entirely to blame when CRM goes wrong. When the project goes belly-up it is usually a combination of circumstances, and generally there are no innocent parties," he tells Network News.

Name: Who's To Blame When CRM Goes Bad?
Author:  Adhanda Enterprises