Although US-based research company GartnerGroup foresees an increasing number of Customer Relationship Management (CRM) project failures, the outlook for South African businesses is more optimistic.
According to GartnerGroup, a recent study identified that in 32% of sales technology projects, little or no use was made of the technology 12 months after deployment.
Andrew Briggs, general manager of Dimension Data`s Customer Management business unit, is more positive concerning the outlook for South African businesses.
"During 2000, we observed a dramatic improvement in the South African market in terms of project success.
"We believe that prior to 2000 many projects did not deliver value. However, lessons have been learnt and current implementations are adding significant value and generating competitive advantage," he says.
"Companies have learnt to set realistic objectives and not to over-complicate the CRM implementation. They have also learnt it is best to implement as close to a vanilla CRM system as possible and that executive sponsorship is essential," says Briggs.
The GartnerGroup report highlights intensified CEO attention on CRM in 2001. According to the report, larger CRM consultancies are presenting evidence that successful CRM initiatives are improving profits which means CEO`s can look forward to larger bonuses.
"Recent research by A.T Kearney, EDS` management consulting subsidiary, shows that CEO`s view CRM as the top issue facing their organisations," says Briggs. "The increased commercial focus of CRM is also ensuring compelling business cases are being presented."
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Dimension Data
Dimension Data is a leading global network services and i-Commerce solutions provider, focused on enabling enterprises, telecommunication service providers and new economy companies to communicate and transact effectively in an e-enabled environment.
Dimension Data listed on the London Stock Exchange in July 2000 and is a constituent of the FTSE 100 index. The Group has over 11 000 employees and operates in over 30 countries on six continents. It has achieved a compound annual growth rate in US dollars of 57 per cent in revenue and 36 per cent in earnings per share over the past two years.