CRM

122 8.3 A fit-for-purpose approach

8.3

The first major problem that some companies run into when using a

suite-based approach is that the purchase is often mandated as the solution by

senior management. To be fair, the team is typically reacting to a perceived

need for a slab of CRM; however, the focus should be on processes, not soft-

ware. Suite-based solutions that are implemented without the necessary

process work either speed up poor processes or, more likely, don't actually fit

the needs of the implementing organization. Consequently, the soft costs

associated with making the monolith fit the specific needs of the organization

tend to outweigh any potential integration savings. I have also heard analysts

indicate that as many as one in ten suite solutions are purchased but not

implemented for just this reason.

The second major problem that companies run into is that often the func-

tionality does not run deep enough at an individual module level for the

company's needs. To go back to our earlier example, if the analytical tools

were not deep enough to uncover the switching problem within the affluent,

incumbent customer group, then the opportunity to proactively address the

problem with a marketing campaign would have been lost.

The final problem is actually a bit ironic. Ease of integration of functional

modules is often a key selling point. While integration savings can certainly be

realized over poorly cobbled together departmental solutions or point prod-

ucts, the implementing company often faces a huge challenge in terms of

integrating suites with legacy applications. As I've indicated throughout the

book, so-called operational legacy systems are generally the lifeblood of most

large enterprises. Given that most organizations are unable and unwilling to

replace them, effective CRM requires knowledge of historical transactions

and total customer value, among other things. In short, even a suite-based

solution is incapable of becoming a total CRM backbone.

A fit-for-purpose approach

So, if we aren't selecting departmental solutions and we aren't selecting suite-

based solutions, what do we select? In general, the enterprise~particularly if it

is large and distributed~will get the best value from enterprise-class, best-of-

breed solutions. These solutions are those that excel in the functional benefits

they provide within their class. For instance, Pegasystems provides an excel-

lent, rules-based workflow tool, which can, where appropriate, provide great

benefit to an organization that needs to automate complicated customer-

focused processes (e.g., insurance claims). Similarly, RiskClick has a very

robust collaborative tool for insurance intermediaries, ensuring seamless