Customer Relationship Management (CRM) BE IT-B Shital H. More

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1 Customer Relationship Management (CRM) 1

2 Outline Definition of CRM Importance of CRM to General Managers Statistics Industry leaders Success stories Case Study MU Healthcare System Best Practices Lessons Learned 2

3 CRM What is it? CRM Strategy used to learn more about customers needs and behaviors in order to develop stronger relationships with them last accessed September 27,

4 CRM What is it? CRM Any application or initiative designed to help an organization optimize interactions with customers, suppliers, or prospects via one or more touch points such as a call center, salesperson, distributor, store, branch office, Web, or for the purpose of acquiring, retaining, or cross-selling customers. Goodhue, D. L., Wixon B. H., and Watson, H. J., Realizing Business Benefits Through CRM: Hitting the Right Target In The Right Way MIS Quarterly Executive, Vol. 1, 2, 2002, pp CRM introduced in

5 Importance of CRM CRM can. Increase customer service levels Improve efficiency of call centers Cross-sell products more effectively Help sales staff close deals quickly Simplify marketing processes Increase ROI 5

6 CRM Infrastructure Call Center Web Access Store Direct Sales Fax Refined Business Processes Business Intelligence Process Improvement Integrated database Billing Sales Accounts Call center Fig. 2 6.

7 CRM Targets / Components Applications Infrastructure Transformation All three are necessary, to some degree, for successful implementation of CRM initiatives 7

8 CRM Success Stories 80% of organizations report success with CRM programs Examples Union Pacific Railroad (Siebel) 4500 users / Replaced legacy system / Strategic part of overall business intelligence strategy Northwestern Memorial Hospital, Chicago (PeopleSoft) 5800 employees / Replaced legacy system / Automation means clinicians can focus more time on patient care. Having PeopleSoft as a support system will help us achieve our mission of patients first. 8

9 CRM Failure Failure rate of 15-25% 85% of CRM users cannot quantify benefits 9

10 CRM Industry Leaders 10

11 11 Company Information Headquarters in San Mateo, California Founded employees 2.8 million users at 4,000+ organizations 2003 revenue - $1.35 billion Strategy CRM for Everyone CRM software solutions for any kind of organization, any type of user, and any budget Product Offerings Siebel Business Analytics Siebel On Demand Siebel Sales Siebel Professional

12 Company Information Headquarters in Pleasanton, California Founded ,000 employees Serving 12,200 organizations 2003 revenue - $2.3 billion Strategy Flexible and adaptable business solutions Product Offerings PeopleSoft Enterprise PeopleSoft Enterprise One PeopleSoft World 12

13 Company Information Headquarters in Bellevue, Washington 900 customers in 50 industries Strategy Through three audience-specific portals, Onyx Employee Portal, Onyx Customer Portal and Onyx Partner Portal, Onyx Enterprise CRM provides proven technology ideal for business environments that need flexible, reliable and manageable CRM Product Offerings Onyx CRMExpress Onyx Portable CRM Onyx Analytics 13

14 Company Information Headquarters in Waldorf, Germany Founded ,000 employees 2.8 million users; 1,500 partners Mission To provide collaborative business solutions for all types of industries and for every major market Product Offerings mysap Business Suite mysap ERP SAP xapps 14

15 Case Study MU Healthcare System 15

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17 Case Study MU HEALTH CARE SYSTEM MU Health Care system consists of 2 operational entities: School of Medicine (SOM) University Physicians (UP): medical practice MU Health Care University Hospital Columbia Regional Hospital Clinics 17

18 MU School of Medicine 18

19 MU School of Medicine (SOM) DEAN Associate Deans Chairpersons of Basic Science Departments Chairpersons of Clinical Departments (Medicine, General Surgery, Obstetrics and Gynecology, Pediatrics, Family Medicine ) UNIVERSITY PHYSICIANS 19

20 University Physicians Headcount: UP: 635 (370 physicians staff) IT: 22 or 3.5% of total UP headcount Budget: UP s revenue: 110 M IT services: 2.7 M or 2.5% of revenue Electronic medical records (EMR) IDX system: scheduling and billing 20

21 MU Health Care EXECUTIVE DIRECTOR CIO, CFO Hospital Directors UNIVERSITY HOSPITAL COLUMBIA REGIONAL HOSPITAL CLINICS 21

22 Compliance Transport HCFA Consultants OR Family Attending Clerks Med record Ethics Pharmacy PATIENT Xray Techs Residents Nurses Lab Insurance Policies 22 Student Student Computer JCAHO

23 23 CRM Best Practices

24 Best Practices Vision / Strategy Know your Customer Differentiate Technology data requirements Metrics Monitor 24 Nelson, BE IT-B Scott, Shital Eight H. Building More Blocks of CRM Gartner Group, June 19, 2003; last accessed October 25, 2004.

25 Vision / Strategy Alignment of vision/strategy with: Business objectives Customer requirements Organizational readiness, including capabilities, policies, incentives and practices 25 Nelson, BE IT-B Scott, Shital Eight H. Building More Blocks of CRM Gartner Group, June 19, 2003; last accessed October 25, 2004.

26 Customer Analysis Identify -- know who your customer is Segment -- high-value, high-potential, low-potential Profile -- know your customer s habits, behaviors and profitability 26 Nelson, BE IT-B Scott, Shital Eight H. Building More Blocks of CRM Gartner Group, June 19, 2003; last accessed October 25, 2004.

27 Technology data requirements Define and map data requirements What customer data is necessary? What system will the data come from? 27 Nelson, BE IT-B Scott, Shital Eight H. Building More Blocks of CRM Gartner Group, June 19, 2003; last accessed October 25, 2004.

28 Metrics Metrics & goals must be established up front 28 Nelson, BE IT-B Scott, Shital Eight H. Building More Blocks of CRM Gartner Group, June 19, 2003; last accessed October 25, 2004.

29 Monitor Get feedback from customers Audit customer experiences by periodically sampling customer touch points Use this information to measure effectiveness and identify areas for improvement 29 Nelson, BE IT-B Scott, Shital Eight H. Building More Blocks of CRM Gartner Group, June 19, 2003; last accessed October 25, 2004.

30 Lessons Learned Need to pay close attention to triangle: people, process, and technology Get executive involvement top down Establish measurable business goals Implement incrementally Ensure CRM architecture will scale to future needs as you grow 30 Spitz, Keith. Lessons Learned by a CRM Veteran. Computerworld. Sep 20, Vol. 38, p. 26

31 The Future of CRM Top 5 CRM Trends for 2005 Optimizing past CRM investments Customer retention Data analysis Channel integration Partnerships 31