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1、ECR Europe 2003 CRM Exhibitor BriefECR Europe 2003CRM Exhibitor BriefCRM Business Case and ROICurrent Perceptions55% of all CRM projects will fail over the next 5 years Gartner Group41% of CRM projects are “experiencing difficulty” or are “potential flops” Data Warehousing Institute56% of US-based c
2、ompanies have not achieved a measurable return on their CRM investment crmindustry4Business Case Lifecyclechange managementbusiness casecollaborative CRM strategycorporate strategymetrics & benefits managementprogram managementproject managementbusiness transformation (#)business initiatives &am
3、p; programs (*)data enhancementIT build & systems integrationbusiness process outsourcingIT outsourcingevaluatestrategisedevelopimplementmanageC-CRM# capability planning, operating model, process design, etc.* loyalty schemes, direct marketing, etc.Source: Gartner ResearchSet up business caseLin
4、k business case to metricsFollow up on metrics to ensure delivery of benefitsPay for perform-anceBenefit Categories and DriversTechnology driven(integration &automation)Skill, organisation structure & process drivenROIIncreased Revenue / ProfitabilityReduced CostIT run / maintenance costAdmi
5、nistration costCustomer insight & segmentationResponse to customer demandsIntegrated executionInteraction costAccenture PropositionLower total cost of ownershipGreater predictability and lower riskSmaller upfront funding “gap”? 20m*? 14mBaseline TCOTCO with AccenturetimeProjected costAccenture c
6、ontracted cost80%?11.2mBenefits achievedAccenture fees100%110%?14m?15.4mWhat have and can CRM implementations deliver? Looking at recent CRM studies and reports, the general sentiment seems to be one of scepticism at best. Some comments even refer to CRM as a fad past its peak. And the figures do in
7、deed paint a dark picture:Gartner Group predicts that more than half of CRM projects will fail to meet their objectives over the next 5 years41% of CRM projects are experiencing difficulties according to the Data Warehousing InstituteJust over half of the companies surveyed in a US study have not ac
8、hieved a measurable return on their CRM investmentEach individual case underlying these statistics will have its very own reason for “not delivering” business results. However, considering the main reasons for failure, the majority relate directly to a poorly prepared and managed business case.Failu
9、re to obtain and maintain executive support for the project usually, the business case looks too risky to the executives to sign-off the sizable investment requiredFailure to align key internal functions / business units on goals and mission of the project as CRM by definition crosses many functions
10、 within a business, key benefits may have been double counted in between two or more projects or areas; and “scope-creep” sets in, making the CRM project the magic remedy solving all issues to everybodyInability to accurately link the CRM project to higher-level business strategies inability to quan
11、tify the benefits of a CRM initiative in terms of corporate strategy determines perceived failure from the startFocusing in “capability building” instead of ROI creation not all CRM capabilities deliver a financial return to all companies(Other reasons are Lack of integrated plan for project impleme
12、ntation; AND Failure to achieve success early in the project)The difficulty in building a precise and quantifiable CRM business case has been hinted at in these main reasons for (perceived) failure First, a true CRM implementation will consist of far more than screwing in a new piece of software; it
13、 requires a fundamental shift within most companies organisation, skill profiles and cross functional processes, to move to a true customer centric business model. Buy-in needs to be achieved from all stakeholders. And, each items in the business case need to be strong enough to be relevant througho
14、ut the duration of the programme.Secondly, although consumers more and more expect CRM capabilities, simply saying that this has become “just” a new cost of doing business is not helpful. The business case also needs to demonstrate and quantify this claim, enabling a company to select and start with
15、 a combination of those projects promising the highest financial return and “quick win” solutionsLast, but not least, the complexity of the “C” in CRM is particular to the FMCG industry, and benefits rely on collaboration between the parties involved as neither side alone is in possession of the whole consumer picture.In the remaining 5 minutes, I will therefore concentrate on 3 pointsWhen to start with the business case and how to use it during the lifecycle of the CRM programmeThe key benefit areas for the business case How Accenture can make the differenceAs the cost o
