Friday, February 8, 2008

Weaknesses of CRM systems – Part 1

Although CRM spending is increasing by the day, there is some concern regarding the rate at which CRM deployments are failing. This two-part piece aims to bring out the issues that CRM vendors are loath to talk about.

  • A CRM deployment can be a major resource guzzler through its entire lifespan. Costs include cost of software, deployment expenses, customization costs, upgrade costs, licensing costs, cost of lost productivity during implementation, cost of educating the user staff, hardware and equipment costs and costs of maintaining an IT staff for running the CRM.
  • Delayed implementation can lead to increased frustrations as budgeted costs go haywire and employee morale and interest goes down. Rarely does a CRM system start to deliver an ROI within the theoretical time frame arrived at. Delayed ROI and poor gains from a CRM system in the initial phases can quickly down management enthusiasm
  • A CRM deployment demands exhaustive changes in the company’s business methods. The IT department has to be up to the task of managing a CRM system; the user base has to be convinced and then trained. Also care needs to be taken that the company’s business philosophy does not become secondary to the software, the CRM applications have to fit in with the company’s business practices as far as possible.

1 comment:

Ghanshyam Shah said...

Thanks for describing the "Weaknesses" of CRM System. CRM Deployment and successful User Acceptance Testings are major challenges. Hence it is always commendable to go with known or leading CRM Systems like StayinFront that not only takes care of the CRM Deployment but gives great back-end support every time. StayinFront offers CRM Training, CRM Support Services that include Data Center Services, Asset Management & Hardware Services, and Master Data Management Services.