Best practices for CRM projects. Nuremberg, Nov 22nd, 2012 Dr. Peer Stehling

Transcription

1 Best practices for CRM projects Nuremberg, Nov 22nd, 2012 Dr. Peer Stehling

2 Agenda A Why are CRM projects important? B When are CRM projects successful? C What are the challenges in CRM projects? D Project management best practices for CRM projects E Summary 2

3 Agenda A Why are CRM projects important? B When are CRM projects successful? C What are the challenges in CRM projects? D Project management best practices for CRM projects E Summary 3

4 Why are CRM projects important? What CEOs say according to Gartner CEO Survey 2012 Maintaining growth is the No. 1 priority Costs are the second biggest priority area Potential economic downturn is a big concern Investing in technology is comparatively healthy Advancing in innovation management CRM remains CEOs favorite IT capability CEOs are looking for customer, sales and competitor information CEOs are looking for innovative CRM IT capabilities that help to address there highest priorities Source: Gartner, Inc., CEO Survey

5 Why are CRM projects important? The CIO s agenda 2012 The importance of CRM IT capabilities has increased significantly from 2011 to 2012 Source: Gartner, Inc., CIO Agenda Report

6 Why are CRM projects important? CRM level of maturity CRM 2.0 Would you replace your CRM system with a CRM 2.0 solution? 6 shortly within the next two years later no decision taken yet % 10% 20% 30% 40% 50% source: ec4u: ) 31% of the consulted organizations plan to replace their current CRM solution 6

7 Agenda A Why are CRM projects important? B When are CRM projects successful? C What are the challenges in CRM projects? D Project management best practices for CRM projects E Summary 7

8 When are CRM projects successful? How to translate your vision into an execution strategy implementing a CRM strategy CRM is an essential component of your relationship strategy (not only a technology) 1. Understand the corporate Vision 2. Choose the right CRM Strategy to achieve the corporate Vision: define the financial (Business) objectives according to customers benefits to reach 3. Assess internal processes and internal capabilities in order to enhanced the according to the strategy 4. Orchestrate the execution strategy through a detailed roadmap

9 When are CRM projects successful? The triple/quadruple constraint Budget Quality Time Scope 9

10 When are CRM projects successful? Project vs. Business Success Single Projects Programs Organizations Strategies 10

11 When are CRM projects successful? The point of view matters The CRM solution is delivered in time, budget and specifications The financial result of the company has improved Users productivity increased by using the new CRM solution Customer satisfaction has increased The price for the CRM solution was high The project manager has been promoted The margin of the IT services company has increased The IT engineers could learn new technologies The point of view matters A CRM project is successful when it achieved it s objectives There is no single way to define success It depends on the objective 11

12 Agenda A Why are CRM projects important? B When are CRM projects successful? C What are the challenges in CRM projects? D Project management best practices for CRM projects E Summary 12

13 What are the challenges in CRM project? Balance between standard and customization There is a trend towards COTS (commercial off-the-shelf) software for enterprise grade CRM solutions (including SaaS offerings)! new CRM initiatives always need to find the right balance between standard and customizing Standard Limits functionality Ensures upgradeability Lowers Administration Customizing Satisfies functionalities Increases complexity Increases Administration 13

14 What are the challenges in CRM projects? Integration Many enterprise organizations today have a huge application landscape. The introduction of a new CRM solution requires in many cases the integration with a high number of legacy systems. Legacy system Illustrative Legacy system Legacy system Legacy system 14

15 What are the challenges in CRM projects? Flexible CRM solution vs. project scope Today companies have to adopt their business frequently and develop new products and services rapidly ( time-to-market ). The CRM 2.0 solution needs to have the flexibility for change! the scope of a CRM initiative is volatile. Volatile scope Fixed scope Frequent replanning Difficult contracts Potential re-work Change requests Stable project plan Long processing for changes 15

16 What are the challenges in CRM projects? Role of change management in CRM Initiatives Change management is often the defining factor between success and failure in CRM projects. Indeed, CRM could involve a radical departure from the configuration, the practices, the processes, and the organization structure of a company. Extensive effort is therefore needed to enable people to deal with the changes. 16

17 Agenda A Why are CRM projects important? B When are CRM projects successful? C What are the challenges in CRM projects? D Project management best practices for CRM projects E Summary 17

18 Project management best practices for CRM projects Scope It has already been indicated that scope changes in CRM initiatives are very common and therefore need to be addressed correctly. Buy-in from management Rigid scope control Strong change request process 18

19 Project management best practices for CRM projects Time The time dimension in CRM projects is often underestimated. COTS software seems to imply fast access to (standard) functionality. Familiarize people with standard Map requirements to standard Involve stakeholders early into designs/prototypes 19

20 Project management best practices for CRM projects Budget CRM projects are not different from other IT projects regarding the budget dimension. Plan business people in every phase Calculate with high involvement of product managers, etc. For partner or POS initiatives estimate enough people to go onsite 20

21 Project management best practices for CRM projects Quality The quality dimension is critical for the overall success of a CRM initiative. The user acceptance will increase with the level of quality. Define KPI and quality plan (standard tasks!) Involve the business into the project quality assurance Define test spec by the same people that are familiar with the design 21

22 Project management best practices for CRM projects Black box vs. white box approach Traditional Consulting Approach Effect oriented ec4u White Box approach Structured oriented Customer Customer Customer Customer SPOC White Box? Black Box Prime Partner Customer Software Partner Opening Service Partner 22

23 Project management best practices for CRM projects The benefits of the white box approach Opening ec4u White Box approach Structured oriented SPOC Prime Partner Customer Customer Service Partner White Box Software Partner Benefits Full coordination as prime partner Blended teams, on-site/off-site Flexible, agile, fast Collaborative approach Full transparency, any time Best of each party Open, direct communication Low management overhead Close organizational alignment 23

24 Project management best practices for CRM projects Waterfall vs. Agile: When to deliver the project value Analysis Waterfall Design Build Test Rollout Release Sprint 1 Sprint 2 Sprint 3 Sprint 1 Sprint 2 Sprint 3 x wks x wks x wks x wks x wks x wks Agile Release Release 24

25 Project management best practices for CRM projects Waterfall vs. Agile: There is no single right or wrong way Waterfall Agile Detailed project plans with single timeline (long-term or short-term) Definitive and rigid roles Changes in deliverables are discouraged and could be costly Fully completed product delivered at the end of the timeline Contract-based approach to requirements Phased approach creates dependencies Planning based on iterations and multiple deliveries Flexible, cross-functional team composition Changes in deliverables are expected and less impactful Product delivered in functional stages Collaborative and interactive approach to requirements Customer is involved throughout the sprint Concurrent approach seeks to reduce dependencies Customer organization needs to be adopted to agile development 25

26 Project management best practices for CRM projects Waterfall: Classical approach to the solution with the waterfall model Project phases Time M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 0. Offer Pitch 1. Define Target def. 2. Discover 3. Design Functional design IT design 4. Build Build Bugfixing 5. Test Test spec. Test Acceptance 6. Deploy 7. Train Training Roll-out Go-Live 8. Support Upgrades, Fixes,.. 9. Controlling Project controlling & change management 26

27 Project management best practices for CRM projects Waterfall with agile aspects: The classical waterfall model can be enriched with iterations Project phases Time M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 0. Offer Pitch 1. Define Target def. 2. Discover FD FD FD 3. Design IT D IT D IT D 4. Build Build. Build. Build. Bugfixing 5. Test Test specification Test Test Acceptance 6. Deploy 7. Train Training Roll-out Go-Live 8. Support Upgrades, Fixes,.. 9. Controlling Project controlling & change management 27

28 Project management best practices for CRM projects On premise vs. on demand On premise On demand High flexibility of CRM solutions allows for any kind of complexity Many aspects of the project are in direct control by the project manager and the project stakeholders Rigid scope control and detailed fit/gap analysis due to limited customizing capabilities. There are often requirements that cannot be fulfilled with on demand solutions Project plans need buffers for unexpected unavailability of systems, system updates and unexpected behavior of certain functionality On demand projects get more control bout maintenance cycles by single tenant hosting With on demand solutions the challenges for project managers are not decreasing. Some challenges are transferred to the hosting partner but new challenges are present. 28

29 Agenda A Why are CRM projects important? B When are CRM projects successful? C What are the challenges in CRM projects? D Project management best practices for CRM projects E Summary 29

30 Best practices for CRM projects Summary Project success " Follow your vision and strategy to implement a CRM strategy " Find the right view project success is measured beyond project borders Project challenges " Find the right balance between standard and customizing " Be aware of increasing project complexity with more integration " Demand for flexible solutions needs strong monitoring " Pay attention to change management efforts and duration CRM project best practices " Follow the triple/quadruple constraint in any case " Use an open project approach for a successful project " Agile or waterfall: Use a hybrid approach for best success " OnDemand or OnPremise: There is no better way but be aware about new challenges for OnDemand projects 30

31 Thank you for your attention Dr. Peer Stehling Partner ec4u expert consulting ag Zur Giesserei B Karlsruhe peer.stehling@ec4u.de Tel. +49 (0) Headquarter: ec4u expert consulting ag Zur Giesserei 19-27B Karlsruhe Deutschland Tel +49 (0) Fax +49 (0) info@ec4u.com Herriotstr Frankfurt am Main Deutschland Tel.: +49 (0) Fax: +49 (0) info@ec4u.com ec4u expert consulting (schweiz) ag Poststraße Pfäffikon Schweiz Tel.: +41 (0) Fax: +41 (0) info@ec4u.com Uptown München / Campus B Georg-Brauchle-Ring München Deutschland Tel.: +49 (0) Fax: +49 (0) info@ec4u.com Feldeggstr Glattbrugg / Zürich Schweiz Tel.: +41 (0) Fax: +41 (0) info@ec4u.com