When implemented correctly and complemented with an appropriate organisational culture, customer relationship management (CRM) is a business solution that will deliver true value to all businesses from the largest enterprise down to the smallest organisation.
Stephen Howe, divisional manager at Business Connexion`s Enterprise Application Solutions Competency, notes: "In the typical introduction cycle of a new technology or business management concept, initial excitement and expectation of improvements are often quickly tempered with the realities of implementation and usage limitations."
He adds that while there are many technological components to CRM, thinking of the concept in pure technical terms is the first mistake an organisation can make.
"CRM is a process that brings together a range of information about customers, sales, marketing efficiencies, responsiveness and market trends, which enables customer service representatives to address the needs of their clients effectively.
"As implied, mature CRM implementations are therefore driven by integration. With advances in integration technology, creating the enabling infrastructure for effective CRM is quite possible, but to deliver true value, it has to be done within a customer-focused organisation," says Howe.
The nature of the technology industry is such that many new technologies are touted as a panacea to cure organisational ills - with inflated expectations inevitably resulting in failed projects.
Howe says CRM is one such concept. "When it swept into the business world in the 1990s, CRM was widely touted as a silver bullet for improving the management and handling of customers in the increasingly complex world of mass interactions through myriad channels.
"However, CRM initially failed to deliver on that promise; there was a slough of failed projects especially where a big bang approach was followed," he says.
Citing Gartner`s Hype Cycle, Howe says CRM has entered the phase where it is an accepted technology to deliver business value.
The Hype Cycle describes technology introduction in five phases, beginning with the Technology Trigger, moving to the Peak of Inflated Expectations. "This describes the introduction of the concept and the enabling technologies, and then the frenzy of interest that drives unrealistic expectations," he says.
This is followed by a slide into the Trough of Disillusionment - accompanied by failed projects - before ascending the Slope of Enlightenment and reaching the Plateau of Productivity.
"Not only has technology matured, but so have the providers of CRM solutions. Furthermore, the usual rush of service providers hoping to capitalise on the hype by becoming overnight `experts` have also been eliminated," says Howe.
He adds that along with more mature technologies and implementation methodologies, business leaders - and business consultants - are coming to the realisation that CRM is a concept that is supported and not enabled by technology.
"Unless a company accepts that CRM is an organisational culture that is complemented by an integrated technology infrastructure, there will be little or no benefit from such projects. The best systems in the world are worthless if the people responsible for using them don`t have the right training, approach and attitude," Howe concludes.
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