crm-strategy

Monash University

Customer Relationship Management Strategy

May 2008

Prepared by

Customer Connect Australia Pty Ltd

ABN 33 104 850 795

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Executive Summary Monash University has a wide range of customers, from individual domestic and international students through to corporate partners and government agencies. Customers are an essential asset of the university; they are the source of revenues, the resources behind research, and they provide the university’s ultimate reason for being.

The ongoing success of the university depends heavily on acquiring the best new customers, retaining existing customers and growing the value of customers over time through effective relationship management. Institutions in the higher education sector compete for the “best” customers, be they the highest ranking students, the most supportive and valuable commercial donors, or the most lucrative research funding providers. This requires more than a tactical approach to customers – it requires a long term, strategic approach to managing the relationship. This in turn relies on the culture and competencies of people, the processes of the university and the systems and information that support them.

Monash University has historically taken a tactical, department-level approach to customer management. Whilst there is a central student administration system in place, other aspects of customer management are highly decentralised and fragmented. These include:

• Stimulating, managing and responding to customer enquiries

• Maintaining relationships with students outside core coursework, between courses and across faculties

• Retaining and growing the value of customers over their lifetime and

• Managing commercial and government relationships across the university in a structured, coordinated way

Significant inefficiencies arise from the fragmentation of customer information and the duplication of processes. Customer knowledge is stored and duplicated in hundreds of databases, departmental data stores and personal documents across the university. Processes and business functions such as handling student enquiries and customer marketing are duplicated in most faculties as well as being performed by central departments. Only 30% of customer interactions are supported by a structured information system. Most importantly, there is no central responsibility for, or coordination of the customer experience. Given the importance of the customer asset, this is an unsustainable business model in an increasingly competitive sector.

This CRM Strategy lays out an approach that allows Monash University to realise the full potential of CRM. This requires a broad definition of CRM, beyond a tactical or technical project, as defined by Buttle (2003):

“CRM is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high quality customer-related data and enabled by information technology”

At a high level, this strategy recommends that Monash University implements:

1. An integrated view of customers across the university, over the course of the customer’s lifetime

2. Explicit strategies to acquire, retain and develop customers, based on their needs and value, in an efficient way

3. A holistic approach to CRM, including strategic, operational and analytical domains


4. Maintenance of the decentralised approach to customer activities, but guided in future by a central customer strategy, managed through the central CRM Program and consolidated into a university-wide customer view / system

5. A CRM program that encompasses the four essential streams;

1. governance / strategy,

2. people / culture / structure,

3. processes / customer experience and

4. technology / customer information.

6. A phased approach starting with;

1. establishing a CRM governance structure,

2. CRM awareness workshops,

3. an “umbrella” CRM program containing smaller projects over time and

4. foundation CRM technology on which all future CRM projects are based.

Figure - Phased Approach to the CRM Program

The strategic approach to CRM represents a significant opportunity for Monash. A large proportion of competitive universities in Australia and New Zealand (70%) either have an existing CRM program underway, or are currently considering a CRM program. Many of these programs, however, have taken a narrow perspective on CRM or the “customer” and therefore will not be able to deliver the strategic outcomes that are expected from the Monash strategy. Only 50% of the CRM programs, for example, are intended to deliver a university-wide customer perspective. Few, if any of these programs encompass the analytical CRM domain.

Strategy /

Governance

People /

Culture

Process /

Experience

Technology /

Information

Foundation Phase 1 Phase 2 …

CRM ProgramCRM ProgramCRM ProgramCRM Program

Project #1

Project #2

Project #3

#4

#5

#6

#8

Project #7

Stream


A number of other compelling drivers exist for a strategic approach to CRM at Monash, including the importance of CRM in achieving the goals of the Excellence and Diversity Framework, and the increasing importance of unregulated fee income. The recommended approach is therefore to undertake a long term CRM program at Monash, as opposed to installing a tactical system fix or a short term project. The CRM Program encompasses key areas such as:

1. Developing a customer culture across the university

2. Implementing customer needs and value segmentation, with value propositions and strategies at the segment level

3. Developing explicit customer lifecycle models to allow Monash to design and enable the desired customer experience

4. Selecting and implementing the systems necessary to provide a single university-wide view of customers, both individuals and organisations

5. Reviewing and refining business processes across business functions and faculties to deliver the required customer experience

6. Providing structures, methodologies and systems for key customer activities such as enquiry management, account management, pipeline management and customer service

7. Implementing a “Customer” major information area in the Business Intelligence project, backed by strong data quality management principles in source systems

8. Implementing key customer measures including customer drivers, attitude, behaviour and overall customer performance.

The implementation of the Monash CRM has an estimated net present value of $17.5 million over five years. The program is structured to be delivered over a 4 year period in five distinct phases. The total cost of the program is $8.1 million, with a payback period conservatively estimated to be 30 months from commencement of the program.

Whilst a long term strategy is required to achieve university-wide CRM, there are a number of immediate or short-term activities that comprise the initial phases (Foundation and Phase 1) of the CRM program, that are of significant value in their own right, These include:

1. Industry Engagement & Commercialisation

2. Gap year passport program

3. Faculty-level pilot implementation of core CRM capability for a representative faculty such as Business & Economics

4. Customer information and data quality audit

5. CRM foundation requirements specification and selection

6. External Affairs implementation

7. Callista Integration for source student/customer details

The Foundation Phase and Phase 1 of the program are expected to be complete within 18 months at a overall cost of $1.8M (including internal staffing costs).


Table of Contents

Executive Summary ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 2222

Background........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 7777

Defining Customer Relationship Management ............................................................................................................................................................................................................................................................................................ 8888

Critical Success Factors for CRM.................................................................................................................................................................................................................................................................................................................................................................................... 11111111

Integrated Customer Model ........................................................................................................... 11

Retention, Efficiency, Acquisition, Development ........................................................................... 11

The Three Domains of CRM ........................................................................................................... 12

Governance, People, Process and Technology .............................................................................. 12

Current Situation ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 14141414

Current Business Environment ....................................................................................................... 14

Customers ...................................................................................................................................... 15

Departments and Employees ......................................................................................................... 18

Interactions .................................................................................................................................... 24

Customer Centricity ....................................................................................................................... 29

People and Organisation ................................................................................................................ 31

Major Processes ............................................................................................................................. 33

Channels ........................................................................................................................................ 37

Measurements................................................................................................................................ 38

Information Technology and Systems ........................................................................................... 39

Future State Recommendations .................................................................................................................................................................................................................................................................................................................................................................................... 42424242

The Case for Change ..................................................................................................................... 42

Strategic CRM ................................................................................................................................ 46

Operational CRM ............................................................................................................................ 49

Analytical CRM ............................................................................................................................... 56

CRM Systems and Information ...................................................................................................... 58

Succeeding with CRM at Monash ................................................................................................................................................................................................................................................................................................................................................................................ 61616161

Overall ............................................................................................................................................ 61

Governance .................................................................................................................................... 62

People ............................................................................................................................................ 74

Processes ....................................................................................................................................... 76


Technology .................................................................................................................................... 76

Business Case Summary ................................................................................................................ 80

Appendix 1 – Context for the Strategy ........................................................................................................................................................................................................................................................................................................................................ 84848484

Appendix 2 – Interviewees and Source Documents ................................................................................................................................................................................................................................................ 86868686

Appendix 3 – CRM Vendor Market ........................................................................................................................................................................................................................................................................................................................................................................ 88888888

Enterprise CRM suites .................................................................................................................... 88

Midmarket CRM suites ................................................................................................................... 88

Specialist Applications .................................................................................................................... 89

Appendix 4 – CRM at Other Higher Education Institutions .................................................................................................................................................................................................... 90909090

Web Search Results: ...................................................................................................................... 90

Council of Australian University Directors of Information Technology Survey Results: ................ 90

Appendix 5 – The Four Cultures (Competing Values Framework) .................................................................................................................................................... 95959595

Appendix 6 - Industry Engagement and Commercialisation CRM needs and issues ............................ 96969696

Appendix 7 – CRM Program Cycle – Key Activities. .................................................................................................................................................................................................................................................... 98989898

Appendix 8 – Current Customer Systems Map .................................................................................................................................................................................................................................................................................... 99999999

Appendix 9 – Program Schedule (First 18 months) ............................................................................................................................................................................................................................................ 100100100100

Appendix 10 – Business Case Details ............................................................................................................................................................................................................................................................................................................................................ 101101101101

Appendix 11 – Request for Information ........................................................................................................................................................................................................................................................................................................................ 110110110110

Background .................................................................................................................................. 110

Approach ...................................................................................................................................... 110

General Findings .......................................................................................................................... 110

Results and Recommendations .................................................................................................... 110


Background Monash University engaged Customer Connect Australia in March 2008 to conduct a feasibility study for University-wide Customer Relationship Management (CRM). This study is described as a key deliverable in the Monash University Information and Communications Technologies Strategic Plan 2008-2010.

Monash University’s Excellence and Diversity Strategic Framework contains a number of goals that will be supported by an effective CRM Program. These include:

• funding and infrastructure to support high quality research

• delivering high quality teaching, learning and research opportunities and outcomes for its stakeholders

• actively engaging Monash alumni

• providing high quality information to prospective students

• maintaining relationships with government

• developing industry relations and joint ventures

• conforming to customer management best practice standards

• understanding the cost of activities and the revenue generated

• seek support for joint ventures with industry or government consistent with the strategic directions of the university

• submitting high quality applications to funding bodies

• improving the student/customer experience

In order to support these goals, the CRM program at Monash will need to encompass strategies, business processes and people, as well as CRM systems and data.

“Customers” at Monash include a wide range of stakeholders such as prospects, students, alumni, donors, commercial sponsors and government agencies.

The driving force behind the study is to improve industry funded research levels, donation funding and student recruitment especially from the unregulated sector. Monash derives revenue from a range of sources, each of which requires effective relationship management. Furthermore, the ongoing engagement of key customers such as students and alumni must be well managed in order to maximise retention, and the continued enhancement of the university’s reputation and prestige


Defining Customer Relationship Management Every organisation that engages in the provision of products and services has customers. In a broad sense, Monash University customers can include prospective students, current students, alumni, donors, funding bodies, agents and other industry and government partners. In all cases, the ongoing success of Monash will depend on continued engagement with these entities; they all provide revenue and a “reason for being”.

An individual customer may progress over time from one customer role to another, for example a student becoming an alumnus, or a corporate donor becoming a joint venture partner. These represent different stages in the lifecycle of the customer relationship. Some customers may hold multiple roles at the one time, for example a student who is also a donor, an alumnus and a key decision-maker in a funding body.

Figure - Customer Roles

A key tenet of Customer Relationship Management is to recognise and respect the customer as an individual, over his or her lifetime. This requires corporate memory of the customer’s history, and consideration of the relationship in all activities. Over-targeting of customers for marketing communications, requiring customers to re-state information they have provided in the past, and giving customers different answers from different departments are all quite damaging to the relationship.

Organisational customers require a higher level of sophistication in managing the relationship, compared to individual people. Organisations may contain thousands of people, with varying degrees of interest and influence in the relationship with Monash. Organisation decision-making is

Customer

Organisation

Prospect

Spouse of a donor

Employee of a granting

body Manager

of a supporting business

Alumni

Staff member

Student

PersonPersonPersonPerson


typically more structured, and requires management of opportunities over extended periods of time.

Why must Monash University actively manage these customer relationships? The answer is customer choice and customer value. As with many other service industries such as banking and telecommunications, customers are more informed, empowered and demanding than ever before. Customers expect more than just a product or service – they expect it to be delivered in an acceptable way. The customer experience is therefore a significant driver of customer attitudes, behaviours and ultimately revenues.

Customers are costly to acquire; they consume time and resource for many months before returning revenues. This is the case for prospective students, prospective donors and potential funding grants – in all cases, these customers are “in the red” from the start. In some sectors it takes two years for an average customer to return positive value.

Focusing primarily on acquisition, therefore, is a limited, risky business proposition. Customers who stay over time, however, return sustained revenues and therefore higher levels of profitability. For this reason, CRM focuses on acquiring the right customers, managing the relationship over time to retain the most valuable customers, and even growing their level of engagement – all whilst monitoring cost-to-serve to ensure positive customer lifetime value. Furthermore, word-of-mouth can multiply the positive effects of loyal customers over time.

Customer Relationship Management, therefore, is not just about streamlining processes, implementing systems or designing a positive customer experience. CRM is about business performance, driven by a focus on customers, their experiences, and their lifetime value. This is best summarised in the following two definitions of CRM:

“CRM is a business strategy that maximizes profitability, revenue and customer satisfaction by organizing around customer segments, fostering behaviour that satisfies customers, and implementing customer-centric processes”1

“CRM is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high quality customer-related data and enabled by information technology.”2

There are several CRM models that can be applied at Monash. One of these models, known as CMAT™3, is a comprehensive model that describes the eleven key competency areas of customer management. This model has been developed and implemented in over 800 CRM assessments in over 20 countries over the last 10 years. Most importantly, it illustrates the overall functional scope of CRM:

• Strategy and Stewardship

• Understanding Customers

• Planning the Activity (including Segmentation)

• Customer Propositions

1 http://www.destinationcrm.com/articles/default.asp?ArticleID=5460. Accessed 29 November 2005. This definition is attributed to Gartner Inc. (www.gartner.com)

2 Buttle, Francis (2008). Customer relationship management: concepts and technologies. Oxford: Elsevier Butterworth-Heinemann

3 CMAT™ - Customer Management Assessment Tool by QCi Ltd U.K.


• Customer Channels

• Customer Experience

o Day to day experience

o Building customer value

• Measurement

• People and Organisation

• Customer Information (including CRM Systems)

• Working in the Wider Context

Figure - Customer Management Assessment Tool (CMAT)

The CMAT™ schematic shown above reflects these competencies as a flow of operational activities enabled by employee competencies & supporting infrastructure. It clearly illustrates the important, yet enabling role of CRM systems and customer information management. This report will take a broad perspective of CRM, including all of the eleven areas in CMAT™.


Critical Success Factors for CRM

Integrated Customer Model

Modern customers, be they individuals or organisations, expect to be recognised and respected over their lifetime. Customers who have a rewarding experience with their bank, insurance company or other service provider will bring their expectations of service with them – therefore the bar is constantly being raised not only by other universities, but by other service sectors.

In order to meet these expectations, Monash must arrange its processes, people and systems to provide the customer with a cohesive & integrated experience. Students do not want to re-state their details when they deal with new departments. Donors do not want to be visited by several different Monash faculties all seeking support for disparate programs. Corporate sponsors expect that their past contributions and research activities will be remembered.

Furthermore, as people change their roles over time, they expect Monash to maintain a corporate memory of their history and anticipate their needs, as they progress from student to alumnus to donor, and perhaps to senior manager advocating Monash in a large organisation. This requires a single, common view of customers based on an integrated customer model that is implemented in common systems and cross-functional processes.

The integrated customer model, by definition, must encompass the entire customer lifecycle, as well as relationships with other customers and organisations. It must span all interactions with Monash, across administrative functions and faculties. It requires a small number of integrated systems to be implemented and used in a consistent way across the organisation.

Whilst a fully integrated customer model is the “end game”, the implementation process may take several phases over several years. The people and process changes necessary to accomplish CRM demand careful implementation.

Retention, Efficiency, Acquisition, Development

Monash has historically focused on acquiring customers, be they students, donors or other supporters. Acquisition is relatively costly, and risks taking on customers who do not fit and therefore leave after a short period of time. A customer lifecycle approach leads to not just acquisition, but proactive management of customers over time to retain and develop them in a cost-effective way. This approach, known as READ (Retention, Efficiency, Acquisition and Development), is the key to managing customer profitability.

• RETENTION – retaining customers, with a particular emphasis on the most valuable customers such as high value donors, long term students and influential patrons

• EFFICIENCY – managing customers in a way that balances cost-to-serve against customer value; in other words, maximising return-on-effort

• ACQUISITION – strategies and practices to maximise the acquisition of the “right” customers, and

• DEVELOPMENT – strategies and practices to actively grow customers, for example cross-selling (introducing existing students to a new program; understanding the needs of a corporate donor leading to appropriate expansion into a scholarship program).

READ is most effective when applied to customer value bands or segments. Higher value customer segments can be targeted to increase retention and development, to increase overall profitability. Acquisition strategies can be designed to maximise the intake of high value segments, whilst low


value segments can be managed to reduce cost-to-serve, whilst still delivering a valuable customer experience.

The Three Domains of CRM

Many people think that CRM is a computer system, or is about implementing a call centre or account management. As we have seen, CRM is a business strategy driven by customer value. There are therefore three distinct domains to be addressed in a comprehensive CRM Program; strategic, operational and analytical.

Strategic CRM

Strategic CRM is about segmenting customers based on value and needs, developing value propositions for these segments, developing lifecycle models to understand and drive engagement, and developing explicit strategies to acquire, retain and develop customers over the lifecycle. Strategic CRM relies on reliable, cross-functional customer information and analytics.

Operational CRM

Operational CRM is about developing processes, enabled by competencies and systems, to deliver the desired customer experience to customer segments. It encompasses the traditional functions of marketing, sales and service, across all channels of engagement. Operational CRM often relies on automation (CRM operational systems) to succeed.

Analytical CRM

Analytical CRM provides the decision support function for both strategic and operational CRM. It requires a central warehouse of customer data, often enabled by integration with operational systems (such as CRM and student administration). Analytical CRM is analogous with the “customer” information area in the Monash Business Intelligence project.

Governance, People, Process and Technology

The final critical success factor for CRM relates to the way in which the CRM Program is run. The discussion to date highlights the need to construct a CRM Program that is more than just installing a CRM system – the program must address the governance, people, process and technology streams together in order to succeed.


Process Customer Experience Design & BenchmarkingBusiness Process RefinementSegmentation & Lifecycle Management

Process Customer Experience Design & BenchmarkingBusiness Process RefinementSegmentation & Lifecycle Management

Technology Operational and Analytical CRM SystemsCustomer InformationInfrastructure and Integration

Technology Operational and Analytical CRM SystemsCustomer InformationInfrastructure and Integration

People Culture, Beliefs and CompetenciesOrganisation, Teams & StructuresWorkshops, Education and Communications

People Culture, Beliefs and CompetenciesOrganisation, Teams & StructuresWorkshops, Education and Communications

Governance Executive Sponsorship, Strategy and CharterProgram ManagementPerformance Measurement

Governance Executive Sponsorship, Strategy and CharterProgram ManagementPerformance Measurement

Figure - CRM Work-Streams

These streams are referenced throughout this strategy document, and form the basis for the “Succeeding with CRM” section.


Current Situation

Current Business Environment

Monash University operates in an environment which is becoming more competitive over time.

Indirect competition exists for regulated fee students, where intake is largely through VTAC. This accounts for a large proportion of domestic undergraduate students. Competition is largely a function of the reputation of the university and the courses on offer, and is particularly strong for the top 5% of school leavers.

Direct competition exists for unregulated fee students (such as higher degree and international students), donations, sponsorships, bequests and research funding. Monash also competes for staff, particularly academics who typically attract high performing students.

Relationship management is a significant driver of the decision to choose Monash over other institutions. The customer experience, starting with initial enquiry (inbound) or contact from Monash (outbound), through to the engagement experience and fulfilment of expectations, is crucial.

This is particularly the case due to the intangible nature of the services offered by Monash. In the absence of a tangible product that can be touched and assessed in advance, prospective students and supporters look to other factors to guide their decision. These other factors include the relationships that are formed (people), the way interactions are handled (processes) and other visible proxies for service quality (physical evidence)

The importance of the relationship is recognised by many at Monash. A number of interviewees stressed the need for a coordinated, quality experience for customers across Monash, supported by reliable systems and information. “Customers” include prospects, students, staff, alumni, corporate, other universities and government. Interviewees stressed that, in particular, it is important to have

• Consistent and relevant contact with customers over their lifetime

• Visibility of current and past activity with a customer

• Visibility of all enquiries / leads to maximise conversion

• Strong governance to ensure that everyone takes part and implements this view

• Streamlined processes across departments

• Common standards across all channels

Other Universities and CRM

The higher education sector is in the Early Majority phase with CRM. Most universities in Australia and New Zealand have tactical (department-level) CRM deployments in place, for example for Alumni and Donors, and several large institutions are actively pursuing university-wide CRM. Details are provided in Appendix 4; summarised below:

• University-wide CRM programs are currently underway in 30% of universities, including University of NSW, University of Queensland, Deakin, Bond and Southern Cross Universities.

• 40% of universities are currently assessing university-wide CRM.

• 30% of universities have not yet considered university-wide CRM.


• Constituents include alumni, students, donors, government, commercial and academics (in descending order of frequency).

• Approximately 50% of the CRM programs are intended to deliver a single view of constituents across the university.

• Approximately 60% of the CRM programs in universities include mapping and refining of cross-functional business processes.

• Policy and governance issues are recognised as essential to the success of several CRM programs.

• Most of the CRM implementations underway are operational, rather than analytical CRM.

Customers

Prospective Students

Prospective students are categorised as domestic (Australian-sourced) or International. International students often come via agents, whereas domestic students come via VTAC or direct contact.

A number of activities are undertaken to stimulate the intake of prospective students, including events in secondary schools and corporate information sessions. Prospects may eventually enrol in undergraduate, postgraduate or higher degree by research (HDR) levels. They may be new to the university, or alumni. Applicants may defer enrolment (gap year), perhaps returning after several years abroad with a stronger set of skills and broader experience.

The fragmented nature of enquiry, application and enrolment information leads to significant internal challenges and negative customer experiences. Recent enrolment numbers for one faculty, for example, were 500 students above the available teaching resources; however this was not known until the enrolments had been completed. This resulted in considerable stress for both staff and students.

Students

Students are individuals currently engaged in coursework or research at Monash. Student enrolment and course details are managed centrally via the Callista system. Current students relate strongly to the faculty of their current area of study, and higher degree students may relate most directly to a particular academic / supervisor.

Students are managed through a variety of different processes, departments and systems. The Callista system provides a focal point, but it is not designed to manage the relationship - the focus of Callista is the enrolment, courses and assessments of the student. Relationship management is largely done through manual systems, paper files or merely on an incident-by-incident basis. Some relationship notes are kept in Callista.

Whilst there is a clear need to manage the relationship with students more directly across the university, there are also levels of integration that are not required or desirable. For example, academic results should only be available to those who require them, and should not be used to influence related discussions such as alumni donations.

Alumni

Alumni are past graduates from Monash. This large group (over 200,000 on file) is an important asset of the university. It is a rich source of potential future students. Supporters of Monash, for


example individual donors, mentors, volunteers and advocates in organisations are also often alumni. Other potential sources of alumni include ex-staff, sessional staff, and people who have professional dealings with the university. It is important to recognise and respect alumni in the broadest possible sense, in any future dealings with them.

It is difficult to keep track of people once they leave Monash, due to changes in address, job, etc. This is not just the case with alumni; people who have commenced but not completed a course at Monash (and since left) are not considered to be alumni – this group is not well understood or targeted for future engagement.

Alumni are directly managed via a dedicated group in Advancement, but also by individual faculties. The Advancement group uses a central system, Sunguard Advance (to be replaced by RaisersEdge), for relationship management.

Donors

Donors may be individuals or organisations. Alumni can often be encouraged to become donors, either personally or through their positions of responsibility in supporting organisations. Other parties that Monash has relationships, for example major suppliers and business partners, are also prospective donors.

The central Donor, Alumni and Community Relations group within Advancement is relatively new, so the processes to identify, understand and manage dialogue with donors over time are not yet in place. This is particularly a challenge in the faculties, which have been dealing directly with donors for many years.

Donations can take the form of simple monetary gifts, scholarships, repeat giving, volunteering and bequests. Major donation opportunities (>$25K) are identified and account managed through five faculty campaign directors.

There is a strong desire at Monash to maintain a lifelong relationship with donors and alumni. The driving force for this will be people rather than systems; the first step is to gain acknowledgement that donor relationships should be centrally coordinated. It is essential for Monash to mandate, as the highest levels, that the university is serious about managing the relationship with customers over their lifetime, at the university rather than individual staff level. The critical success factors in implementing this vision will be strong governance, people, processes and systems.

International Students

International students comprise a high percentage of overall students at Monash (around 30%) and are an important source of revenue due to the fees paid. They often engage with Monash via agents in their respective countries. There have been difficulties in the past with international student enquiries and admissions. The Monash application process may take considerably longer than some other universities especially if advanced standing or credits are being requested. Due to the indirect nature of the relationship, students may not hear back for several weeks. The UniCRM implementation is intended to improve this process.

Staff

In many ways, staff at Monash are customers. Monash competes to attract the best staff, and some types of staff (for example guest lecturers) can choose to stay or leave with a direct impact on revenues. In the Business & Economics faculty, for example, half of the 1000 lecturers are part-time; of these 300 have day jobs in industry, and 200 are academics who span other institutions. Central to the success of any program at Monash would be the engagement of academics to share


and use customer information. Although this may present significant challenges several potential levers were identified, including:

• the identification of resources, internal and external to the university that could contribute to curriculum areas.

• the role of personal assistants could play as information managers.

Other Institutions

A wide range of partnerships exist with other universities both domestically and overseas. These relationships require effective relationship management; they are complex and span multiple contacts, departments and faculties.

International has developed a structured approach and supporting technologies to manage relationships with overseas institutions. There are currently around 200 partnership agreements in place, supporting around 1000 projects or activities between institutions.

Agents (International)

Agents are important intermediaries outside Australia. International students normally approach agents in their own countries to understand the opportunities to study in Australia. Agent recommendations are an important determinant of international student enrolments.

Agents are provided with information on Monash and its courses, and a web portal. They are also paid commission by Monash and other universities based on enrolments; a process that may influence the advice given based on the size of the commission or the speed and simplicity of the admission process.

Government

Government departments are also typically large and complex. Like companies, they require centralised account management to ensure that key stakeholders are known and managed, including decision-makers, influencers, recommenders, assessors etc.

Government funding comprises approximately half of the total revenues at Monash. The breakdown of total revenue (2005) is as follows:

Australian Government 34%

HECS / HELP 12%

Victorian Government 3%

Research & consultancy 3%

Fees 25%

Investments 4%

Other 18%

Research funding may come from a wide range of organisations in the private and government sectors. An example of a government funding body is the ARC (Australian Research Council). The ARC is a statutory authority within the Australian Government's Innovation, Industry, Science and Research (IISR) portfolio. Its mission is to advance Australia's research excellence to be globally competitive and deliver benefits to the community. It manages the National Competitive Grants Program (NCGP).


Private Sector - Corporations and Associations

Monash interacts with many corporations, associations and fundraising groups, at the central and faculty levels. These customers may donate to the university, provide scholarships, provide research funding, host open days, employ students, and sponsor consulting projects. Large corporate customers include BHP,

Corporations are typically large, complex organisations that have many people who may be dealing with Monash. These people may be dealing with a different Monash person, so there is no clear picture of the overall engagement, activities, or even funding support at a given company.

Departments and Employees

Research

Research is one of the three major components of the Monash Academic Plan 2006-2010; the other two components being Education and International. Research is a central theme and core value of the university, as described in the long term aim:

By 2025 we will be one of the best universities in the world, distinctive because our research-intensive, international focus enables us to address important theoretical and practical challenges, and develop graduates who will wish to do the same.

Monash has clearly stated goals to increase the volume and quality of higher degree by research intake in a number of faculties. The specialised nature of research student interaction means that there is little support provided by centralised systems and processes at present. Faculties, Research departments and Advancement all attempt to generate leads for HDR, and these efforts are often not coordinated. Prospective HDR student enquiries can be sent to anyone in the University, and may not be followed up or sent to the right person. There is a project underway at present to analyse this area and recommend improvements to systems and processes; the HDR Admissions Project.

A particular challenge is managing relationships with funding bodies. Large councils such as ARC and NHMRC have a nominated account manager, however the large number of smaller government and commercial funding bodies are not well managed. There is no coordinated perspective, for example, on how much funding comes from each body. The Research Office provides a central channel for communicating with funding bodies, however not all funding is for research, and not all research goes through the Research Office (although it should). Scholarships and donations, for example, are handled elsewhere in Monash. Each faculty also has a research services office to coordinate staff and student research.

There is a strong desire in this important area of Monash to implement an “organisational” view of these customers, rather than a departmental view. There is reluctance, however, to add to the administrative workload, so any such view must be easy to use and have minimal impact on staff load. There is also reluctance to share contact information between faculties and academics, due to the competitive nature of research funding.

Education

The objectives of Education at Monash include:

• To help our graduates become ethical, engaged and employable, capable of addressing the challenges of the future in a global context

• To ensure that learning and teaching at Monash is of the highest quality


• To increase demand for our places from a diverse range of the most able students

Monash is implementing a student-focused model of education, known as Passport. The Passport programs include:

Enhancement studies - enabling high-achieving Year 12 students to study a Monash first-year university sequence as part of their final year at school.

Volunteering - possibilities for participation in placements, internships, campaign assistance and community outreach.

Study abroad - grants to travel, live and study overseas as part of your course and receive credit towards your degree.

Honours at Monash - more specialised, advanced work that opens the door to postgraduate study options and enhanced employment opportunities.

Ancora Imparo student leadership program - to inspire and develop the capacity of first-year students with leadership potential to serve and bring about constructive change in society.

The Passport programs are aligned with CRM principles, and rely on the successful implementation of CRM technologies at Monash to varying degrees. Effective CRM enables the following, in particular:

• Maintaining contact with gap year students and volunteers

• Maintaining a database of customer information over the individual’s lifetime, including academic, social, and charitable activities

• Personalised communications with individuals, based on needs and interests, in a cost-effective way

• Recognition and engagement with customers over their lifetime.

Faculties

Monash has ten faculties:

Arts and Design

Arts

Business and Economics

Education

Engineering

Information Technology

Law

Medicine, Nursing and Health Sciences

Pharmacy

Science

The faculties have historically been quite autonomous. Monash operates a hybrid centralised / decentralised model, whereby some functions are centralised, some are within the faculties, and many are in both. For example, there is a central Advancement (Marketing) function, but each


faculty also has marketing processes and staff. This is also the case for IT, student enquiries, some aspects of application and enrolment, and a number of other functions.

Faculties have developed their own ways of managing customers. The Business & Economics faculty, for example, has implemented salesforce.com for contact and activity management (although the implementation has only been partially successful and is under review this year). Two faculties use ask.monash for student service questions, the other eight do not.

One area that highlights the challenges with the current model is the web site. The central Monash site provides a range of functions, many of which are duplicated on faculty-specific sites. This results in significant complexity for students; for example a student searching within the Monash site for “Enrolment” will be presented with 1000 page references on the subject, 600 of these relate to “Enrolment in Economics” and 700 relate to “Enrolment in Arts”.

Whilst there are challenges, there are also advantages to this model. Many students, particularly in the early years at Monash, engage most directly with the faculty. Faculty-specific market engagement, such as the IT faculty running information days at IBM, provides a highly relevant, targeted experience for potential students.

The hybrid model at Monash will present significant cultural and governance challenges for centralised CRM. On the other hand, faculty-level CRM will not provide adequate coverage of customers over their lifecycle, particularly considering many customers (such as large corporations, multiple degree students and funding bodies) engage with more than one faculty as well as central administration.

Industry Engagement and Commercialisation

Industry Engagement and Commercialisation is a central function within Research, but also exists to some degree within each faculty.

The recently established Industry Engagement & Commercialisation group has been formed to capture opportunities and build relationships to deliver outcomes of commercial value. The Research Commercialisation objectives are to achieve excellence in the commercialisation and commercial management of Monash University's intellectual assets, in order to enhance its reputation and to create value for the university, its people and the community.

Activities include:

• Identification and protection of intellectual property

• Technology licensing

• Formation of spin out companies

• Engagement with industry

• Negotiation of commercial research contracts

In addition to the central commercialisation function, each faculty has a business development function that operates independently to drive industry engagement, research / consulting projects and funding. There is no central view of these activities, so the amount of business being done with each corporation is not known. One faculty (Business & Economics) has implemented its own CRM system for the management of industry contacts using salesforce.com, however acceptance and ongoing use of the system have not been good.

Multiple contacts take place with large corporations, through multiple staff members at Monash. Once again the lack of a centralised view inhibits awareness of key contacts, decision-makers and broader opportunities within these corporations. The culture of academic freedom at Monash would


inhibit any attempt to centralise and coordinate these relationships. Despite the challenges, there is an urgent need for CRM in this area.

The fragmented nature of corporate relationship management also leads to many smaller opportunities, rather than taking an overall account management approach to drive larger, more profitable engagements. Furthermore, each business development manager operates on his or her own experience base, so interactions with customers are largely product-centric -about Monash and what we can do – ie “inside-out”. There is significant opportunity to develop competencies for “outside-in” engagement, starting with the customer’s needs and working back to what Monash can do to fulfil these needs. This would be well supported by an effective customer-centric opportunity and account management methodology as discussed in the Major Processes section below.

A detailed perspective on the CRM needs and issues in Industry Engagement and Commercialisation is provided in appendix 6. The requirements for Industry Engagement and Commercialisation are summarised as:

• Contact Management – central database for all contacts (people) in commercial customers / entities, including title, role, decision-making position, needs and relationships

• Activity Management – central register of all activities that take place with a commercial entity across Monash (faculties and central departments), including Monash contacts, customer contacts, nature of activity, date (history and planned activities)

• Opportunity Management, including nature of the opportunity. discipline or area (research, grant, donation, scholarship, internships, sponsorship), status, size, sales stage, closing date

• Asset / Project Management – current projects underway with the customer, past projects, descriptive information

• Reporting of the above, both ad-hoc and structured, transactional and summarised / analytical.

Advancement

Advancement is the Monash function for what is typically described as “Marketing”. It encompasses Marketing / Student Recruitment and Donor/Alumni/Community relations. There is a central Advancement function reporting to the Vice Chancellor, and faculty-specific marketing functions in all ten faculties.

Marketing includes acquisition of prospective students, relationship management with current students, alumni and supporting organisations, branding, and partner relationship management (for example with other universities). Faculties have a particular emphasis, including managing relationships with research organisations in other universities, and discipline-specific events. The IT faculty, for example, has a team of six people covering:

• coursework students, donors, alumni and community relations

• secondary school students (prospective undergraduates)

• international recruitment

• advertising and publications

• government and commercialisation


• research relationships.

A number of relationship marketing areas are seen as significant opportunities, including alumni fundraising and commercialisation. These areas require co-ordination between central Advancement and the faculties where many of the relationships have existed in the past. An example of a valuable faculty-driven offering is the Business Information Systems degree via industry-based learning. Commercial partners fund students and scholarships, and in return gain access to high quality future employees.

Another area of significant opportunity is to drive and manage word-of-mouth marketing. The importance of recommendation and positive word-of-mouth is not quantified at Monash, but it is anecdotally “massively underestimated”. In some markets, particularly overseas, referral is the primary decision driver. Adding to the complexity is the role of the agent, who may recommend competitors to Monash based on higher commissions or shorter admission processes.

The strong historical emphasis on International student recruitment has resulted in reasonably well established and disciplined processes across the University. This however is not the case with domestic students wherein the faculty centric culture limits the degree to which prospective student information is shared. This presents significant difficulties for any consolidated management of the recruitment process, the customer experience and student load management. For example in contrast to the comprehensive view of conversion rates for enquiry, applications, offers and acceptances for international students, similar metrics for domestic students (and especially post graduate students) are currently not possible.

Student and Community Services

Student and Community Services are responsible for:

Student Communications (including ask.Monash)

Records and Archives (including the TRIM records management project)

Student Administration and Systems (including Admissions and Enrolments)

Client Services

Equity and Diversity

Employment and Career Development

Health, Wellbeing and Development

Service quality is particularly important, enabled by the skills of staff and systems such as eAdmissions and ask.Monash. The student experience is also important, although the term is over-used. There is significant interest in developing a tangible approach to designing and delivering the student experience.

The department plays an important role in supporting the faculties, to enable them to deliver high levels of service. This would continue in the event of a centralised CRM program, which could provide a rallying point to improve service and the student experience across the university.

Potential CRM areas of opportunity include

• streamlining the web sites to make them easier for students to navigate,

• case management in the health and wellbeing area,

• pipeline management for enquiries through to enrolment for all levels,


• keeping a history of all student interactions in a central place, linked to source documents (eg billing interactions with a copy of the invoice attached),

• replacement of Callista student notes with a more structured, analysable history in CRM,

• integration with TRIM to allow seamless movement between transactions and related documents,

• single view across all channels, including face-to-face in the service centres, contact centre at Caulfield and email through ask.Monash and

• targeted communications to students, informed by needs, segmentation and history, to ensure relevance and maximise acceptance (eg target summer school offers to either high achievers or students needing to catch up).

International

International manages relationships with overseas partner organisations, which are classified according to value:

Comprehensive: A limited number of top-tier institutions with whom the university fosters very active, comprehensive and funded alliances.

Collaboration and Exchange: Institutions which are or could be potential partners due to similar international ranking to Monash, their primacy within the higher education sector of their country, their research strength in a particular area, the strength of existing collaborative activities, or geographical representation.

Study Abroad and Short Course: Institutions with which only study abroad and short course training activities are appropriate.

Capacity Building: Institutions in developing countries which may have primacy in the higher education sector and/or would benefit from capacity building support from Monash.

Activities that involve international partners are tracked and reported through the International database, across all departments and faculties.

International provides a specific example of university-wide CRM for a small number of customers, albeit very focused and limited to activity tracking. Opportunities exist to expand the focus to include opportunity qualification and tracking, contact management, account management and business planning.

External Relations

External Relations is responsible for:

Managing Graduations

The development of pro-active relationships with government officials, bureaucrats, ministers and other key decision makers at Federal, State and local levels

External engagement for the Vice Chancellor within the broader government, business and community

The principal needs of this group are access to basic customer profile information and a comprehensive view of the interactions all Monash staff are having with these constituents. The team also manage events such as dinners and key note speeches and publicity.


The team has only recently been formed and does not currently have access to a system to meet its basic needs. To-date it has relied upon making requests to Advancement for customer lists to support its activities such as preparing invitations to government and business leaders for Board Room Luncheons and formal dinner celebrations. Given the nature of the events and the status of the invitees, customer information quality and completeness is considered particularly critical.

The quality of the data provided by Advancement to-date is considered particularly low, with numerous examples given of incomplete names, no inclusion of post nominal’s or titles, incorrect spouse names and obsolete job titles. A recent mailing exercise found that data quality issues include the information held on high profile individuals such as John Brumby and Julia Gillard.

Additionally there was an perception that there was very limited disciplined process or accountability for maintain customer data quality along with a reluctance to allow External Affairs to contribute to correcting customer information for these key individuals.

The team is very focussed on developing valuable relations with its constituents and recognise that in order to do this the development of a comprehensive knowledgebase is essential. Such a database would require access to individuals' interests, areas of focus and networks of influence,

Interactions

Customers of Monash interact with Monash faculties, departments, groups and individuals in a highly complex and multi-layered fashion. Managing these interactions in a co-ordinated manner so that the customer experience is consistent and builds upon existing knowledge is an essential element of any CRM program.

The following diagrams illustrate the quantity & complexity of the interactions a selection of customer types are currently having with MU. The diagrams also attempt to identify the degree to which each of these interactions is supported by university wide systems.

For all customer types the Interactions diagrams exhibited the following common characteristics:

• Multiple communication channels (mail, F2F, web, email, events)

• A high degree of duplication in communications between faculties and “central departments”

• Multiple systems being used to drive and store customer interactions and other information

• Approximately 30% system coverage. That is, 70% of communications are recorded in standalone systems such as spreadsheets, diaries, custom databases etc.


Prospective Student:

A prospective student is defined as an individual who is seeking to enrol in a Monash program, either undergraduate, postgraduate or HDR. A prospective student could be applying locally or from overseas.

Monday, April 14, 2008

Page 1

Customer Interaction Diagram – Monash University Prospective Student

ProspectiveStudent

www.monash.edu.au

Faculty /MRGS

Marketing

InternationalAgent

Contact Centre

Client Services

StudentAdministration

Recruitment

Equity &Diversity

VTACMarketing /Event

Enquiry

Event

Referral

Enquiry

Referring Enquiries

Referring Enquiries

Response

Response

ResponseApplicationOffertracking

ScholarshipApplication

Scholarshipoffer

ScholarshipApplication

Seek Support

Support

Events &Marketing

AdvertisingEvent

Enquiry

Information

Application

Application

ApplicnResponse

OutboundFollowup

ApplicnFee

Enquiries

Enquiry

Response

EnquiryList

$

Employer

Events

Sponsorship

Communication

Communication

HDR Target

Application /Scholarship

Enquiry


Current Student

A current student is defined as an individual who has enrolled in a Monash program (undergraduate, postgraduate or HDR) or is currently attending.

Monday, April 14, 2008

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Customer Interaction Diagram – Monash University Current Student

Student

MRGS

AdvancementStudent

Administration

Faculty

Library

Careers & Empl

Health & W/Being

Equity & Adversity

Client ServicesMonash Abroad

Student Association

Monash Sport

Course Advice

Complaint

Monash Security

Enrol

Invoice

Send ID Card

Orientation

Payment

Confirmation

Learning

Exam Logistics

Seek Resources

InformationOrientation

Continuous Assessment

Seek Support

Assistance

OUTREACH

Seek Employmen/Carers

Career Info

Service RequestResolution

Orientation

Seek Advice

Assistance

InformatioInformatio

Enquiries

Incidents

Notification/Fines

Marketing

Participation

Resolution

Services & Social EventsEvents

Events

Graduations

Faculty

Double degreeComplet’n

Double Degree Completion

Referal &Response

Employers

Enquiries

Info & Job opportunities

Info & Opportunites

Monash ResidentialServices

Enquiries and Payment

Provide Accom


Industry Partner

For the purposes of this analysis, an industry partner is any individual, organisation or other body that engages with Monash for the purposes of conducting research or providing employment opportunities to Monash students and researchers. The interactions are primarily based around the management of research projects or grant opportunities that are sought by or offered by partners and their subsequent execution and administration.

Thursday, April 10, 2008

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Customer Interaction Diagram – Monash University Industry Partner

C – CallisaS - SAPT – Trim

FC - Funding Calendar

RM – Research Master

J – Jobs OnlineF – Find an Expert

SFDC

Research Office

VCG

Advancement

Employment & Career Dev.

Ind. Engagement & Comm.

Faculty

IndustryPartner

Eventinvitations

F

MGRS

Eventinvitations

Opportunities

Proposal

ProgressReporting

T

SponsorhipsT

RM

RM

FC

Eventinvitations

Invitation/Approach

ProposalRM

Sponsorship Info RM

InvitationApproach

FC

T

Eventinvitations

EmploymentEnquiry

Response

JJ

Student

Registration

Search

Event Invite

JJ

Legal Department

Contract

Finance

SAP

Researchers

InvitationApproach

Proposal

ProgressReporting

Invoice

PaymentPayment

ContractTerms

Research Contracttemplate

Advisory Groups

Participate

Advice

T

TS

S

RM

RM

y

InvitationApproach

Proposal

RM

Sponsorship

EventInvitesAdvice

ProgressReporting

Proposal RM

Opportunites

Career & WorkplacePrograms

SFDC

ContractTerms

T

DVC Research

InvitationApproach

Proposal

RM

FC

InvitationApproach

FC

Events

SupervisionGrants

C

Contracts

Contracts


Donor

A donor is defined as any individual (including students and alumni), organisation or institution that has voluntarily provided support to MU. Although financial support is the primary focus, support in the form of goods in kind or time is also considered. Support may be either unencumbered or encumbered but is not based upon competitive application for research funds. This was covered in the preceding diagram.


Customer Centricity

Customer Understanding

The hybrid centralised / decentralised organisation structure at Monash gives rise to a number of challenges in retaining customer knowledge. Customers are understood within the departmental boundaries of their current engagement with Monash. Current students are understood by the faculty with which they are engaged. Research funding bodies are understood by those who are currently dealing with them. There is, therefore, no persistent “Monash-level” understanding of customers over their lifetime.

This is reinforced by the focus of marketing activities – acquiring customers into a given department or product area at a point in time. An analogy is that, as customers move down the highway that is Monash, we focus on getting customers onto the “on-ramps” to the highway rather than keeping our customers on the highway in the first place. This is a more costly, less effective and less rewarding approach to managing customer relationships.

Customers, be they individuals or organisations, expect to be recognised and respected over time, and do not appreciate having to repeat themselves each time they engage with a new part of the university. This is particularly a problem for organisational customers, as they are more complex to deal with, and often they have a number of employees dealing with a number of Monash staff.

Customer information is distributed and duplicated over hundreds of individually-maintained data stores at Monash. One faculty estimated that a given customer’s information resided in around 250 locations, when considering all of the spreadsheets, personal files and the 20 or so customer databases in use. Another faculty stated that they had four separate CRM systems (Expert, Salesforce.com, and two in-house developed), none of which are fully utilised; in fact, the majority of customer information was managed through email. Such distributed knowledge prevents a single, cohesive view of a given customer, and therefore results in Monash staff appearing to be uninformed and uncoordinated.

The Business Intelligence project is intended to draw together many disparate sources of information at Monash. The current strategy was developed based on views held in 2006, and as such does not explicitly recognise “Customer” as a major information area. The closest fit is “External” information, however this is market and marketing information, not customer information.

Segmentation

Student customers are typically segmented by region (international vs. domestic), level (UG, PG, HDR) and discipline (current faculty). This is largely product-focused, and does not inform future engagement. Furthermore, product-level segmentation changes over time, as a student moves from one product to the next.

The Planning division indicated interest in customer-centric segmentation such as needs-based and value-based, however these forms of segmentation are not used at present. Management recognise the relevance of segmentation, for example for student cohorts and commercial customer value ranking, however implementation is rare and localised.

There is no clear Monash-wide segmentation of corporate or government customers, nor is there a structured approach to assessing needs or value for these customers.


Propositions

There are a range of different customer value propositions in use at Monash. Advancement has developed a value proposition that focuses of Monash’s prestige in terms of its Research Excellence & Go8 membership & its commitment to Internationalisation. Faculties are expected to fashion discipline specific propositions that reflect their specific flavour of the central proposition. In reality, value propositions are typically inside-out, i.e. they are about Monash and its services rather than the customer and needs.

Faculty marketing managers typically develop value propositions that reflect the attributes of the faculty such as course coverage, integrated degrees, teachers or reputation and do not necessarily reflect the central value proposition.

Corporate value propositions are tailored to suit individual corporations; however there may be as many value propositions as there are contact points at Monash.

There does not appear to be any consistent effort to test value propositions. Staff and agents are not tested in their ability to describe the value proposition for different segments, and customers are not tested to see if the value proposition is understood or relevant.

Experience Design and the Customer Lifecycle

Customer experience is a critical driver of customer attitudes and subsequent behaviours such as deciding to remain a student, deciding to donate, or deciding to give a positive referral to another prospective customer. Management of the customer experience, therefore, requires regular, comprehensive measurement, leading to ongoing processes to design and deliver the desired customer experience.

The student experience is a point of discussion at Monash, particularly in the area of student relations. Quality of service is important, as is student satisfaction. The view of the student experience is largely limited to these areas.

Other customers (such as alumni, donors, government, corporations) also develop a view of Monash based on their experiences – however these experiences and views are not monitored in a structured way.

A lifecycle view of customer is very important to retain them and deliver the intended experience. The lifecycle view should describe how the various components of the experience align with each stage of the lifecycle; for example for students:

• Teaching and learning

• Facilities and access

• Help and support

• Social networks and relationships

There is an acceptance that the customer experience is a shared responsibility across the University however the existing management structure typically results in the experience being managed tactically according to local priorities and objectives.

Despite the acceptance of the importance of experience design and the customer lifecycle, there is no evidence of a university-wide, explicit effort to monitor, design and deliver the desired customer experience for any customer group


People and Organisation

Culture

Monash describes itself as a “loose confederation of states”, reflecting the hybrid centralised / decentralised model and the traditional autonomy of the faculties. Views vary on who “owns” the relationship with customers; some staff believe that the contacts that they have are theirs to take with them if they leave (and not to record in a central system), whereas others recognise that as an employee of Monash, they are representing the institution in the relationship with customers.

CRM supports both perspectives; however it requires an acceptance that customer information is an organisation asset. Individual employees may have a personal dimension to their relationship with customers, but there is always an organisational dimension that must follow guidelines for service quality, process and information capture.

At senior levels, there is a view that the personal ownership perspective is no longer acceptable and should be directly addressed through policy directives and active management.

There was evidence that Monash, due to its size, complexity and decentralised management, exhibits characteristics of all four organisational cultures described in the Competing Values Framework4:

Clan

Flexibility and discretion

Hierarchy Market

Adhocracy

Stability and control

External focus and differentiation

Internal focus and integration

Based on a brief unstructured review, the most prevalent culture in place was Clan, followed by Adhocracy. A Market culture is evident in areas of research, and a Hierarchy culture is evident in administrative functions with highly structured approval processes.

CRM is most effectively deployed in organisations with a culture of Adhocracy. Characteristics of an Adhocracy include:

• Entrepreneurial (vs. structured)

• Innovative (vs. conformist and predictable)

• Freedom (vs. control)

• Unique / new products and services (vs. fixed offerings)

4 Quinn and Rorbaugh (1983)


This suggests that the success of any CRM program at Monash will require attention to the cultural environment on a case-by-case basis.

Further description of the four cultures is provided in appendix 5

Organisation Structure

The Monash organisation structure is highly fragmented across the lifecycle of customers.

Corporate customers are managed both centrally and within faculties, by Advancement, Research, academics, senior management, campuses and donor management.

Prospective Students are managed by the faculties, central (Advancement), agents and outsourced contact centre (for international)

Current Students are managed by the faculty staff and academics, student services and central administration

Alumni are managed by Advancement and faculties.

Whilst the organisation structure is effective in managing the various functions of the university, this fragmentation across customers makes it particularly difficult to deliver a consistent, quality customer experience. On the assumption that reorganising around customers is not feasible at this point, other measures must be taken to integrate and coordinate these functions more effectively.

Competency modelling

Competencies are recognised as important at Monash, and are largely implemented and measured at the department/faculty level. Centralised competency modelling and gap analysis are planned at Monash. Competency models have not been developed at this point, however job descriptions are documented. Job outcomes fall into three categories:

• Research outcomes

• Education outcomes

• Community engagement outcomes

This last area provides an opportunity to structure tangible outcomes relating to customer management, leading to an assessable competency model.

Recruitment

The recruitment process has a number of parallels with customer relationship management. Potential employees and guest lecturers are in many ways customers, who need to be managed through a pipeline to final conversion – in this case, into a staff member rather than an external customer. This is reinforced by the Candidate Relationship Management components of the eRecruitment project, being implemented in 2008/9. It was acknowledged that the student body represents as large and talented recruitment pool; however no co-ordinated system is in place to leverage this currently.

Incentives

Generally speaking, pay is not linked to performance through monetary incentives. Pay scales do allow a progression through increasing levels based on performance over the life of a staff member. Student survey results, including satisfaction, are published but are not used to provide incentives. There are therefore no personal-level connections between remuneration and customer management performance. There are a number of schemes in place (such as the Vice Chancellors


Award) that formally and informally recognise outstanding performance within the University, however these schemes did not appear to directly target customer management practices.

Major Processes

Monash University has a large number of complex processes. The prevailing view of processes, however, is within departments and faculties rather than cross-functional. Each faculty, for example, has its own process for handling student questions, as well as a central process via ask.Monash (note that two of the faculties do have a process that integrates with ask.Monash).

Monash does not appear to have a good history of mapping and refining cross-functional processes. Such a practice is essential to providing a cohesive, simple experience for customers. A number of interviewees indicated that there would be significant cultural barriers to streamlining processes across the organisation.

Monash has recently done significant work to improve “on-boarding” processes around enquiries, enrolment and admissions. There is no clear process, however, for pipeline management for individuals or organisations. This is discussed below, together with a range of other customer-related processes.

Marketing Planning

Marketing plans are prepared both formally and informally by a range of departments at Monash, for example the Marketing and Student Recruitment Marketing Plan. There is no central calendar of marketing activities / campaigns to provide visibility of “what is happening, and when”.

Campaign Management

Marketing campaigns are conducted by many departments and faculties across Monash. Campaigns are managed to varying degrees, ranging from no formal system through to campaign management in Advancement using UniCRM. Alumni and Community Relations manage all marketing communications including contacts, mailings and events through Advance. Many campaigns are conducted without clearly documented objectives and measures. Targeted campaigns are typically sent to lists of customers derived from internal systems (with less than ideal data accuracy) or through manual compilation.

Event Management

Undergraduate events can be Monash-wide or faculty-specific. Events are sometimes held by Monash, with faculties being invited to participate. Postgraduate events are typically more specific, within a faculty.

Overall there is significant investment in events, however there is no central management function to provide, for example, an overall event calendar for Monash, central invitation / replies / attendee database, or central leads register.

Enquiry / Lead Management

Monash receives a large number of enquiries through many communication channels, including face-to-face, events, email, web and telephone. Enquiries are managed through a variety of fragmented processes; international enquiries go through an outsourced call centre or overseas agents, domestic enquiries can go through the faculty or central administration. There is no common, structured approach to qualifying these leads, to ensure that the highest value leads are given the right level of priority.


The enquiry process does not make use of ask.monash (RightNow) despite the suitability of this application for this purpose. Enquiry management and tracking is seen as a weakness for Monash, particularly when compared to other universities that turn around enquiries in 24 hours in some cases.

The competition for good students and research funding results in a degree of competition between faculties. This leads to reluctance to share prospects and enquiries. There is therefore likely to be some resistance to any centralisation of this information.

A significant opportunity exists to centralise the enquiry process in order to maximise cross-selling. Prospective students can in many cases be offered an alternative course in the event that their primary preference is oversubscribed or otherwise unsuitable. Anecdotally, around 50-60% of prospects are not fixed on a particular faculty, and over half of these (30% of total prospects) can be cross-sold.

Pipeline Management

Pipeline management takes an overall, management-level perspective on enquiries, leads and opportunities, in order to actively mange the pipeline through to closure. This principle is applicable to potential students (particularly international and HDR), as well as revenue opportunities such as funding, grants, industry partnerships, scholarships and donations.

There is recognition at Monash of the importance of pipeline management; however there do not appear to be processes or structures in place for this function. There are no centralised systems to support such a function.

Opportunity Management

Opportunity management takes a structured, methodical approach to managing major revenue opportunities from corporate and government. It requires a formal methodology to enable classification and comparison of opportunities, including formal sales stage models, opportunity qualification criteria and common terminology. It also allows the complex web of influencers and decision-makers in these organisations to be classified, including power, preference and relationships.

Whilst the Industry Engagement, International and the Alumni and Community Relations Divisions are aware of the need for opportunity management, formal processes have only been implemented in isolated instances and are not visible outside of these groups. Opportunity management has not been implemented at the central or faculty levels.

Contact / Account Management

The university engages with many organisations and individuals both locally and overseas. Whilst there is some central coordination of these activities, the general approach is for individual staff members to take the initiative and manage their own contacts. The records kept of these contacts range from no formal records, through personal files to records in systems such as UniCRM, SalesForce.com, or Advantage.

Callista does hold a central repository of student records; however the focus of Callista is on student academic records and enrolment rather than contact management. Information is held if it relates to courses for a student, not other forms of contact such as marketing history, service / support history, complaints or general activity history. Information is held in notes rather than a structured activity database.

The challenge of contact management is further complicated with organisations such as companies and government departments. Contact with these is “many to many”, resulting in complaints from


these important customers that Monash does not act in a coordinated way. Formal account management is essential to professionally manage and leverage organisational relationships. These is no evidence of a formal approach to account management, or a methodology allowing accounts to be assessed, strategised and prioritised across Monash.

Admission / Enrolment

The admission process at Monash can be quite lengthy (several weeks) and is managed in a variety of ways. Until recently, enquiries, admissions and enrolment have had poor visibility, resulting in no clear view of the process until students are fully enrolled.

Admission has now been centralised for international prospective students, resulting in a significant improvement in conversion of applications into acceptances. For some faculties, conversion rate is important, whereas for faculties such as Medicine, the opportunity is to improve the quality of accepted students through more direct management and qualification.

eAdmissions will provide a central view of domestic applications and offers; this does not exist at the moment. Significant opportunity exists to manage the pipeline to increase the conversion rate of quality domestic prospects into students.

Course Management and Billing

Course management and billing is centrally administered using Callista and SAP respectively. These are largely administrative systems therefore do not adequately represent the complete relationship with current students across the university. Neither Callista nor SAP shows, for example, relationships between students, non-course, non-billing activity history, service events etc.

Activity Management

A significant proportion of costs at Monash are activity-related. As a service organisation, it is essential to understand and manage activity, from at least three perspectives:

• Understanding the work that goes into delivering products and services – from a CRM perspective, the cost of acquiring, retaining, marketing to and servicing particular customers – in order to understand customer and service profitability

• Understanding the comparative efficiency of processes in order to maximise return on effort, and

• Understand and manage the extent of activity that takes place with customers, to ensure effective contact management, responses & follow-up, account management and to prevent over-targeting.

Despite the importance of activity management, there is little or no recording of activities at Monash at either the administrative of faculty levels. Indications are that there would be significant resistance to this, due to perceived additional workload and restriction of “academic freedom.”

Service Request Management

Service requests / enquiries can be submitted by students and staff, via email, telephone and ask.Monash. The ask.Monash centralised enquiry function serves general administration and two faculties only (Art & Design and IT). Other faculties have their own service enquiry function, typically using email mailboxes to receive and manage questions from students. Questions coming to ask.Monash for these faculties are forwarded on, but are not tracked through to resolution.


The ask.Monash service enquiry function is well managed within its current limited scope, with clear categorisation of topics, response mechanisms, reporting and knowledgebase management. It handles around 50,000 FAQs per month, and 2000 submitted questions.

The term “service enquiry” here relates only to questions seeking information. The first port of call is the standard list of FAQs, followed by students submitting a question. The current process does not support other forms of service, such as registering a complaint, providing feedback, seeking escalation, or seeking assistance with matters outside administration and courses (such as health and wellbeing). Most significantly, it does not present a “listening” perspective to the customer.

Complaint / Feedback Management

There is a clear grievance policy at Monash. This policy applies to issues that cannot be resolved between the two parties on initial contact. The policy covers student grievances only, and calls on the Student Union to register and manage resolution of the grievance.

There is no clear mechanism that encourages all customers (not just enrolled students) to provide feedback that can be analysed in a central system. There is evidence of complaints and feedback from many areas that fall outside the Student Union process, for example companies or individuals that are being over-targeted by several Monash departments, or prospective students who give up due to the long enquiry process.

An exit survey is conducted when students leave before completion, however this does not provide a reliable source of information as students are often disillusioned by this stage and so may not provide serious feedback.

Customer Analysis & Segmentation

Most divisions within Monash perform their own form of customer analysis and segmentation based on their own needs and perspectives., There is however no central analytics repository for customer information (outside of Callista), so the analysis done is basic at best, for example student survey result analysis, course feedback analysis, and reporting. Specifically, the two most important forms of customer-centric segmentation – needs-based and value-based – are generally not used at Monash.

The Business Intelligence project should improve this situation; however the current strategy does not include “Customer” information as a primary area of focus. There are no operational CRM systems shown in the source data of the proposed architecture, event though a number of departmental CRM systems have been implemented. Major information areas of the project are limited:

• Research,

• Learning & teaching

• Finance, assets & resources

• Organisation & people

• External (largely KPIs, market and marketing information)

There does not appear to be a capability in place to support customer analytics, and most importantly, segmentation. Segmentation, as described elsewhere in this document, is an essential component of effective CRM.


Channels

Contact Centre

A number of contact centres exist at Monash. There are central contact centres for inbound calls and emails in Advancement, and some outbound campaign activities to follow up prospects. International contacts are channelled through Hobsons, an outsourced contact centre. Student and Community Services operates a contact centre at Caulfield. Each faculty also handles inbound and outbound contact via phone and email.

There does not appear to be any coordinated view across all contact centres. A customer may therefore make multiple contacts across multiple channels, resulting in duplication of effort and frustration. For example, a student may register a question in ask.Monash, lodge the same question via email to the faculty, and ask a Monash lecturer the same question. Should this question be an enquiry from a prospective student or donor, there are also potential lost revenues involved. There are several phone numbers and email addresses that prospective students can use.

Existing manual coordination efforts are not effective. The size and complexity of Monash means that central Advancement staff can not realistically check whether an enquiry has already been lodged within a faculty, for example.

Face to Face

Face-to-face contacts take place with customers many times a day. Students visit support centres and facilities. Companies are visited by academics to discuss research or consulting projects. Government agencies meet with management to discuss funding. The face-to-face channel is therefore one of the most powerful, and most costly, aspects to the customer relationship.

Direct Mail

The majority of mail communication is loosely target or not targeted at all. Many desirable direct mailings are not possible due to lack of high quality, complete information – for example, Monash is unable to mail to all year 12 enquirers.

Web Site

Within SCSD, the Integrated Student Services project is intended to rationalise and streamline the student web site, and manage content more effectively. Although a coherent strategy and technology platform has been established to achieve these aims, the implementation of the Interwoven content management system, has been limited by funding constraints. and a lack of high a level mandate to bring all the faculties and departments together. Additionally, the assignment of “editorial” responsibility for web site content, to ensure consistency and alignment with customer management, has not been agreed or implemented. A similar situation has occurred with respect to the implementation and use of ask.Monash.

Online enquiries can be made directly to faculties, eg Arts and Design enquiry form. As each faculty has a specific sub-site, the navigation and overall usability of the site is poor, particularly for prospective customers.

Current students have a range of services provided through the web site. These are typically aimed at administrative functions, such as course transfers in the eAdmissions project. By comparison, there is no clear mechanism by which to lodge a complaint or provide feedback to Monash on the web site.


ITS has published a web strategy as part of the University’s overall Information Strategy. This strategy is yet to be funded and has therefore has not been implemented. Challenges persist with reaching agreement with the various stakeholders and their vested interests in the Monash web site.

Measurements

Monash University undertakes a wide range of measurement across the organisation, within faculties and departments.

University-level measures, for example publically-available KPIs, focus on the performance of Monash relative to competitors. They include:

Reputation – SJTU ranking, THES ranking, Newsweek ranking

Research – share of national competitive grants (NCG), share of total research income

Education – share of top 5% of students, good teaching, employability of graduates, attrition rate, progression rate

International – share of HDR student load

Equity – access for indigenous students

Environment – energy consumption

Advancement – share of donations, share of international student load

Finance – profit margin, current ration, debt to equity ratio

A range of internal measures (IPIs) are also undertaken, for example:

Discipline / faculty rankings

Share of preferences for top 5% students

Student satisfaction

International student progression and retention rates

Staff attitude and turnover

IT System availability

Market research (leading institution, strong research profile)

The performance measures are organised around departments; this means that there is no clear overall performance indicator for “the customer”. Furthermore, customer measures are focused on total students; there is little published across the university relating to, for example, corporate partners and funding bodies.

The current lack of needs-based segmentation means that the current measures do not inform future insight into customers. For example, Monash does know the current completion rates for PhDs (ranging from 50% to 80% by supervisor), however there is no indication of the type or profile of student that is most likely to complete a PhD. Completion rates by customer segment would provide this insight.

Customer Attitude, Satisfaction and Loyalty

Student measures focus on satisfaction, which is not an adequate indicator of the overall student experience or future behaviour. It does not necessarily indicate, for example, likelihood to stay /


return or willingness to recommend (word of mouth). In competitive markets, very high levels of satisfaction (90%+) are required in order to influence behaviour such as positive recommendation or repeat business. The Business & Economics faculty has found that for unregulated fee students, 25% decide to enrol at Monash based on word of mouth.

Monash does measure retention; however this is defined as students who return to the same course each year. It does not indicate past students who come back for a new course, such as postgraduate or higher degree.

Monash conducts market research (published in IPIs) on brand perception, but not on other drivers of customer loyalty such as complaint handling, trust or perceived value.

Customer Retention and Win-back

Retention is an important, regularly measured factor for current students. Monash reports student retention in KPIs, although this measure is only an indication of students who have chosen to continue a course – it does not measure retention of a person over his or her lifecycle (for example, continued donation, continued support as an alumnus, or returning for a new course).

Improving retention of students is recognised by senior management as an important objective. Approximately 8-9% of students withdraw each year representing both a significant loss of revenue and potential damage to reputation. Whilst cost is often put forward as a reason for leaving, it is most often the final excuse. Other factors, such as difficulties in attending, poor support or unmatched expectations are major drivers of attrition. Monash recognises not only the financial implications of attrition, but also the moral obligation to assist people to get through to graduation.

Efforts to win-back either students who have left early, or organisational customers who have disengaged, appear to be sporadic and based on personal initiative. There is no clear cross-functional win-back policy in place. Proactive retention (as opposed to saving) and win-back strategies offer a significant opportunity for Monash, for all categories of customer. For example, the importance of establishing broad, effective engagement with the University during the first 4-6 weeks of a student's tenure at Monash is recognised as being critical to ongoing retention; however there is no broad marketing activity to tap into this.

Customer Profitability

There does not appear to be any measurement of customer profitability at Monash. This would include analysis of the revenue, margin, cost-of-acquisition and cost-to-serve customers, by segment. There is therefore no ability to identify which customer segments are the most profitable, or conversely which segments lose us money. The Planning division indicated strong interest in this area, particularly in understanding cost-to-serve. The International Division through their partner segmentation approach have attempted to reflect the relative value and attractiveness of partner organisations in four value-based tiers. This has provided a clear framework within which their resources are prioritised and deployed.

Information Technology and Systems

Monash University currently invests a significant proportion of revenue in IT. Approximately half of the Monash IT spend is consumed within the faculties, the remainder is centralised. Although there is a move towards centralised standard applications, architectures and toolsets, the departments & faculties in particular have historically developed and implemented their own sets of applications to support their needs. This fragmented approach has resulted in a significant degree of duplication in capability and resources, as evidenced by the proliferation of local IT resources & Help-Desks.


ITS has traditionally adopted a best-of-breed system approach, supported by integration. Centralised applications include SAP, Callista, Research Master and the new Business Intelligence (BI) project. IT web strategy is also supportive of centralised standards; however this has not been implemented.

Customer-Related Systems

Monash University currently use a range of systems:

System Used For Notes

SAP Finance and Payroll across Monash

(Incl. expenses, travel, asset management & treasury)

SAP is a large but complex system; suitable for continuous use but too complex for casual widespread use. SAP does have CRM modules, although these have not been implemented at Monash.

Callista Student Administration across Monash; modules include Admissions, Enrolments, Calendar, Courses and Contact Details.

Callista is in widespread use although it does not support HDR well. Scope is limited to current students. Callista is the central student database, but is not suitable as a CRM as it does not support many front-office processes such as marketing and call centre.

Callista – eAdmissions

Applicant portal, for international and domestic. Project underway at present.

The eAdmissions project uses a new module provided by Callista, allowing potential students to enquire, lodge and manage applications via the web. It also streamlines Monash processes, for example offer letter generation. It will be used for all direct applicants across all faculties, campuses and student cohorts. Rollout is taking place during 2008.

Sunguard Advance / Blackbaud Raisers Edge

Alumni and Donor Management.

Monash currently use Advance, however there is a project to migrate to Raisers Edge. These are dedicated donor management solutions that provide elements of CRM, but do not provide sufficient capabilities for use outside this specialised area.

Ask.Monash (RightNow)

Inbound service inquiries from existing students and staff; typically seeking answers to administrative questions. Not used by 8 of faculties.

Rightnow is a hosted CRM solution with quite broad capabilities, however the “pay-per-use” licensing can return unsatisfactory medium to long term TCO. Offsite database introduces risks in integration and ability to configure the solution. Monash is only using a small part of RightNow at present.

HDR Admissions

Admissions for Higher Degrees by Research. No software at present – analysis project underway.

There is a project underway to improve processes and implement a suitable IT solution – due for software selection in mid-2008 and implementation completion in mid-2009

Streamline eTouchpoint

Advancement – Marketing, mostly for international, but

UniCRM is a mid-market, locally-developed CRM solution with simple yet quite broad capabilities


UniCRM also for centralised (non-faculty) enquiries domestically

(Marketing, Opportunity Mgmt, Service). There is a version developed specifically for Universities. The current implementation has just gone live, and is quite narrow in scope (inbound enquiries, outbound marketing, events)

Business Intelligence (BI)

Centralised data warehouse across the university (under development)

The future state includes a common data model, central warehouse with context-specific data marts, coordinated governance model and a centre of excellence.

TRIM eStudent File

Electronic student files, central administration only (under development)

The TRIM project is underway, to eventually phase out paper files for students. The faculty-level files will also be reviewed as part of the project.

Salesforce.com Contact and activity management in the Business & Economics faculty

Implemented in 2005, hosted solution, but not fully accepted by users. Ongoing use of the system is under review.

International Database

International agreements, activities (projects) and visits.

Online database for relationships with overseas institutions

Table - Customer-Related Systems

Further detail on the scope and application of systems across the customer lifecycle and overall business processes is provided in appendix 8.

There is broad acknowledgement by many of the people interviewed that Monash needs to implement a common system for customer management. This is particularly the case at more senior levels, where the importance of a single view of customers is understood to be an important determinant of success in the current competitive environment.

Customer Information

Customer information is highly fragmented across departments, faculties, and even individuals. Appendix 8 illustrates the degree of fragmentation across major systems. There are also literally thousands of lists, spreadsheets, files and paper documents across the university that contain important customer information.

To illustrate this point, consider the ramifications of current privacy and security legislation. This requires that an organisation, if requested by a customer to do so, provides a copy of all information that is held on the customer. Should such a request come from, for example, a high profile wealthy individual who donates to Monash, the resulting effort to pull together all of the information across all departments and faculties would be considerable.

Customer information quality is also a recognised issue at Monash. One recent example, whereby faculties provided lists of enrolled HDR students, found the information accuracy to be only 50%. Typically, customer information degrades at a rate of 15-20% per year as people change jobs, addresses etc. There is no explicit, proactive customer information quality process at Monash that seeks to regularly check and update information based on its “shelf life”.


Future State Recommendations

The Case for Change

The current situation assessment at Monash provides a number of compelling drivers for university-wide Customer Relationship Management (CRM). These drivers include:

1. The importance of CRM in achieving the goals of the Excellence and Diversity Framework

2. Competition in the higher education sector, particularly given the 30% of universities that are implementing CRM, and the 40% that are currently assessing it

3. The high degree of fragmentation of interactions across the customer lifecycle, and changing customer roles over time

4. The high degree of duplication of customer interactions across departments and faculties, (for example event invitations and enquires may be handled by up to 5 different departments)

5. The low degree of system support (30%) for customer interactions

6. The large number (6+) of current “mini-CRM” systems in place at the department or faculty level

7. The high degree of fragmentation of customer information, residing in at least several hundred personal and departmental data stores throughout the university, and the poor quality of current information

8. The increasing importance of unregulated fee income and funding, driving the need to actively manage the customer opportunity pipeline

9. The fragmented, narrowly focused processes for customer feedback and complaints

10. The fragmented nature of communication channels, including the web site, telephone, email, direct mail and face-to-face contact

11. The lack of measurement across the customer lifecycle, particularly regarding the drivers of customer value and customer profitability

12. The rising expectations of customers, both individuals and organisations, in terms of consistency and relevance of the customer experience

13. The importance of customer retention, growth and cost-to-serve management in the financial performance of the university

14. The currently unrealised potential of customer segmentation and lifecycle management, driving customer loyalty, referral, retention and cross-selling

15. A compelling Business case that reveals significant opportunities for incremental contribution to margin ($13.9M per annum) through improved customer revenues and operating efficiency gains. The estimated 5 year NPV is $17.5M.

Counterbalancing the case for change are a number of factors that explain why CRM has not been attempted in the past, and is currently not under consideration in 30% of Australian and New Zealand universities:

1. CRM systems are expensive to buy, implement and maintain


2. CRM programs require cultural and behavioural change, particularly relating to the sharing of information and formalisation of business processes and competencies

3. The decentralised nature of the university, particularly in the autonomy of faculties and academic freedom

4. Current management decision-making and budgeting processes favour tactical, department-level decisions relating to projects and systems

5. The complex nature of the customer relationship, covering a large variety of interactions for prospects, students, alumni, donors, corporations and government

6. Some of the drivers for change are also inhibitors, due to the size of the challenge. These include fragmentation of systems and customer information

7. A history in Australia of inadequate returns, even failures of other university-wide, system-enabled programs in the past (albeit often relating to administrative systems rather than CRM)

8. Historical lack of commercial drivers in higher education, resulting in a relatively low level of appreciation of the importance of the customer experience, word of mouth, customer value and customer profitability

Alternatives

Monash University has a number of options relating to CRM. These include:

a. Do Nothing

b. Tactical. Continue to purchase and implement tactical, departmental-level “mini-CRM” solutions

c. Install CRM System. Purchase and install a university-wide CRM system, without particular emphasis on processes or people, and mandate the use of the system for all customer interactions

d. CRM Project. Undertake a large scale CRM project, replacing all existing tactical data stores and informal processes with a single solution encompassing people, formal processes and a single CRM system

e. CRM Program. Undertake a long term CRM program (rather than a “project”), comprising a range of initiatives over time, putting in place a foundation that will be the default system for most (if not all) future customer-related projects, formalising business processes and raising competencies in the long term.

All of these options are real alternatives, and have been used in the past in other organisations. Each option supports the drivers for CRM at Monash to a different degree, as indicated in the following table:


Driver Do Nothing

Tactical Install CRM

System

CRM Project

CRM Program

Achieving the goals of the Excellence and Diversity Framework

Nil Low Low Medium Medium

Competition in the higher education sector Nil Low Low Low Medium

Fragmentation of interactions across the customer lifecycle, and changing customer roles over time

Nil Nil Medium Medium High

Duplication of customer interactions across departments and faculties

Nil Nil Low High High

Low degree of system support for customer interactions

Nil Medium Medium High High

“Mini-CRM” systems in place at the department or faculty level

Nil Nil High High High

Fragmentation and poor quality of customer information

Nil Low Medium Medium High

Importance of unregulated fee income and funding, driving the need to actively manage the customer opportunity pipeline

Nil Low Nil Medium High

Fragmented, narrowly focused processes for customer feedback and complaints


Fragmented communication channels, including the web site, telephone, email, direct mail and face-to-face contact

Nil Nil Nil High High

Lack of measurement across the customer lifecycle

Nil Low Nil High High

Expectations of customers, both individuals and organisations, in terms of consistency and relevance of the customer experience

Nil Low Nil Nil High

Customer retention, growth and cost-to-serve management

Nil Nil Nil Medium High

Customer segmentation and lifecycle management, driving customer loyalty, referral, retention and cross-selling


Table - Extent to which CRM Alternatives Address CRM Drivers

The Do Nothing option is the default, but will not address the compelling drivers for CRM.

The Tactical option has been used by Monash in the past, but will only address around 30% of the compelling drivers.

The Install CRM System option will provide a technical solution to a business problem. It will not have a significant impact on behaviours, processes or the customer experience that is derived from


these. It will risk installing a costly system that will ultimately not be used and will add administrative overhead. It will address around 20% of the compelling drivers.

The CRM Project option, if implemented well, will address most of the compelling drivers. It is, however, a high risk, high external cost option that can result in more stress on the organisation than is necessary. Treating CRM as a single project exposes Monash to many of the known CRM risk factors, due to the size and complexity of the project. This option may also result in replacement of some tactical, departmental processes and systems with inferior (albeit centralised) local solutions. The greatest risk is that this top-down approach will be incompatible with the hybrid centralised / decentralised organisation model of the university.

The CRM Program option will take longer than the other four options, and will demand higher levels of commitment and governance as a result of this. It will address most, if not all of the compelling drivers. Most importantly, it will, enable Monash to manage the organisational complexity and diversity of requirements that are necessary to succeed with university-wide CRM.

The CRM Program approach comprises a series of phases, each of which contains one or more specific projects with clear deliverables. It requires a formal approach to both program governance and project management. This approach will require higher levels of investment of internal resources, but presents the highest chance of success, higher long-term return on investment, and most importantly provides an approach that is balanced for the hybrid organisational model at Monash.

The following table provides further delineation between a Program approach, and the more traditional Project approach:

Program Project

Goal: Organisational change over time Goal: Specific deliverable at a point in time

Perspective: Strategic Perspective: Tactical

Timeframe: 3-5 years Timeframe: 1-2 years

Requires executive sponsorship and senior management involvement over the duration of the program

Requires executive signoff at the start; responsibility delegated to project manager

Contains a series of projects organised into phases that are subject to ongoing review

Contains activities and resources with clearly defined dependencies

Evolves over time, based on outcomes achieved in earlier phases of the program

Firm project plan; avoid change where possible

Assessed by longer term business outcomes, with less precise timing and definition

Assessed by clearly defined, specifically timed project outcomes

This strategy document proposes that Monash University undertakes the CRM Program option. This option will require a long term CRM program that encompasses all three CRM domains; Strategic, Operational and Analytical.

The following sections provide more detailed recommendations for the proposed future state.


Strategic CRM

Customer Understanding

Prospects

Develop a culture across the university that suspects and prospects are the start of the customer lifecycle, and are therefore just as important as current students, current commercial partners and current sources of funding.

Implement a central customer contact and account database that includes prospects. Assess processes and competencies across the university, and close the gaps to enable a single view of prospects across the organisation. Recognise prospects not as a separate group, but as a specific contact or account status that can be migrated to “customer” once the prospect enrols or commences support.

Treat returning customers (e.g. graduates who are inquiring about a higher degree) as a continuation of the customer lifecycle, rather than a new group of prospects.

Students (Domestic and International)

Treat students as active customers who can be marketed to, up-sold and lifted to higher levels of loyalty such as “advocate”. Measure not just satisfaction with existing services, but also attitudinal indicators such as willingness to recommend and intention to stay / return.

Develop stage-specific views of student customers. These views align with specific stages of the lifecycle, such as graduate, postgraduate by coursework, and higher degree by research, and contain information that is specifically relevant to each stage.

Develop a student segmentation model that supports both needs-based and value-based segmentation. Assign responsibility for each student segment, and develop strategies to engage, retain and develop each segment. Use READ to achieve the right balance of cost-to-serve for each segment.

Maintain administrative and course-related student information in Callista. Maintain activity and relationship information in CRM. This includes segment, calls, complaints, support, marketing, enquiries, and other significant activities. Develop a single view across both systems, for those who need this perspective. Wherever possible, enter information in one place, and use integration technology to keep the two major systems in sync.

Alumni and Donors

Maintain a database and low-key relationship with lapsed customers as well as alumni (these include prospects who did not enrol, students who did not graduate, past staff and partners and commercial prospects who donated elsewhere). Use low cost channels via the CRM system, such as email campaigns, to stay in touch and maximise the chance of future conversion. Personalise alumni communications to ensure they are relevant to the individual, and cut through the background noise of marketing information from other sources.

Require all faculties and central departments to eventually migrate alumni and donor information to the central CRM system. Assess and develop processes and competencies to ensure that alumni / donors receive a cohesive experience that is coordinated across the university. Identify the categories of interaction that are required to be entered into the CRM system, and monitor usage to ensure that data quality and completeness are maintained.


Staff / Academics

Whilst the same individual may be both a student and a staff member, the integration of staff administration with CRM is not an immediate priority. Continue with the current e-recruitment project, and revisit the case for integration in a later phase. Consider all staff and ex-staff, including sessional staff, to be “alumni” for the purposes of ongoing engagement and communication.

Commercial, Government and Other Institutions (Organisational Customers)

Develop an account prioritisation model to identify key accounts across the university. Identify a staff member as the primary account manager for all key accounts.

Store customer profile information in CRM for all organisational customers. Key accounts should have more detailed information in CRM, such as account plans and strategies. Identify significant interactions and moments of truth, and develop guidelines for how these are to be planned and coordinated. Record these in the CRM, across all departments and faculties.

Implement formal contact management, account management and opportunity management methodologies. These will provide structures, frameworks and terminology to allow complex organisation-to-organisation relationships to be discussed and prioritised with a common language across the university. Processes such as recording a call on a customer, categorising a contact and qualifying an opportunity will then be comparable.

In the case of international (other institutions), maintain the current web database in the short to medium term. Migrate into CRM as needs and resources allow.

Customer Proposition

Develop a clear customer value proposition for the university, taking into account the work done to date by Advancement, together with customer needs, value, moments of truth, desired experience, and core competencies / assets of the university. Develop segment-specific versions of the value proposition for key segments.

Implement a customer engagement model across the university whereby all customer interactions, including customer communications, reflect and reinforce the value proposition. Ensure that the operational processes of the university can deliver the value proposition, and that all customer-facing staff can competently explain the value proposition.

For key account customers, build competencies to allow the development of customer-specific value propositions, driven by particular customer interests and needs rather than generic segment value propositions or Monash product / service benefit statements. Ensure that the customer-specific value proposition is consistent across departments and faculties.

Customer Lifecycle

Customer Lifecycle Models

Develop models for the lifecycle of each type of customer. Document the key interactions including moments of truth (MOTs) that take place during the lifecycle. MOTs are those interactions in the life of the customer that have a significant impact on customer attitudes. They may be times when customers are particularly sensitive, vulnerable or watchful.

Use the customer lifecycle models as the basis for customer experience design, CRM process and system design, customer information models, and customer acquisition / retention / development management

Two high level lifecycle examples are provided below:


16-Apr-08

Customer Lifecycle - Individual

Inbound Enquiries

Events

PR

Agents

Application

Outbound follow-up

Agents

Offer

Acceptance

Enrolment

Billing

Course

delivery

Service and support

Assessment

Enquiry

Application

Offer

Acceptance

Enrolment

Billing

Course

delivery

Supervision

Assessment

Graduation

Events

Outbound marketing

Ask

Donation

Bequest

Sponsorship

Referral

Advocacy

ProspectiveApplicant

ProspectiveStudent

UndergradStudent

PG / HDRStudent

Alumnus Donor Advocate

Customer Lifetime Value (monetary and non-monetary)

Customer Loyalty (attitudinal and behavioural)

DepartmentalActivities

16-Apr-08

Customer Lifecycle - Organisat ion

Alumni relationship

management

Events

PR

Networks

Alumni relationship

management

Events

Qualification

Ask

Donation

Funds

Project

Relationship management

Account management

Rewarding loyalty

Referral

Public support

Word of mouth

Advocacy

Collaborative programs

Preferred status

Public identification

Suspect ProspectFirst timeDonor

RegularDonor

Supporter Advocate Partner

Customer Lifetime Value (monetary and non-monetary)

Customer Loyalty (attitudinal and behavioural)

DepartmentalActivities

Segment Strategies

Develop segment-level strategies for each major customer type and segment. Segment strategies address the following key topics:


1. Description of the segment, including needs, drivers, value, characteristics

2. Value proposition

3. Customer lifecycle profile

4. Relationship strategy

5. Goals and objectives over the period (including Retention / Efficiency / Acquisition / Development objectives)

6. Journey maps and desired experiences

7. Tactics / activities / campaigns to achieve the goals and objectives

8. Investment plan for the period, including cost-to-serve

9. Tracking plan for the period

Assign responsibility for segment strategies across the university. Segment strategies provide a top-down framework to guide department- and faculty-level activities.

Operational CRM

Single View of the Customer

Customer Interactions

Develop maps of the customer interactions that take place at each stage of the customer lifecycle, building on the customer interaction diagrams that have been drawn up as part of the CRM strategy. Identify duplicated interactions, and interactions that are not adequately supported by information systems. Over time, eliminate duplication and provide information system support for all significant customer interactions. In those cases where a “mini CRM” system is supporting a small number of interactions only, migrate from the mini CRM system to the central CRM system at a suitable time, to eliminate duplication of information and processing.

Maintain and update customer interaction diagrams as part of the continuous improvement processes of the university. Maintain customer interaction and process mapping competencies on an ongoing basis. Challenge all interactions and processes to ensure that they are only retained if they add value to the customer and/or the university.

Customer Experience

Customer Experience Design

Develop explicit customer experience designs for all major customer types and segments. Start by reviewing the value proposition for each segment, determined by needs and value.

At first, define desired experiences for moments of truth (MOTs), as these are a priority. Over time, develop desired experiences across the various customer journeys with Monash. In most cases, the customer journey will correspond with a major process, for example making an enquiry, enrolling in a course, or becoming a donor. Most importantly, customer journeys take the customer’s perspective, and may include steps that do not involve Monash in an explicit interaction.

Describe the customer journey in terms of the events or interactions that take place with customers over a specific stage of the lifecycle, the issues and sensitivities that customers may have in each of these interactions, and the response or proposed engagement that Monash will deliver in order to achieve the desired experience. The following table provides an example for a corporate prospect considering making a donation to Monash:


Event Become aware of Monash

Make Initial Enquiry

Receive Information

Face to Face Contact

Customer issues and sensitivities

Reputation

Identification

Initial impression

Access

Channels

Quality

Comprehensiveness

Timeliness

My importance

Professionalism

Desired experience

(No interaction – brand marketing or word of mouth)

Worthwhile cause

Time and channel that suits customer

Show corporate credibility

Pleasantly surprised by the speed of response

Personalised reply

Listening to the customer’s interest areas

Not selling

Table - Example of Customer Journey Map

Undertake an initial study of the customer experience for each customer journey. In particular, assess the importance of each event and performance of Monash. Identify gaps (where performance falls short of importance by a significant degree) and prioritise these for action.

Customer Experience Delivery

Once desired customer experiences have been developed, implement processes, resources and infrastructure to ensure that the desired experience is delivered. For example, for the event “Make Initial Enquiry”, the desired experience includes “Time and channel that suits me”. This may require

• a general Monash phone number that can route directly to a corporate donor specialist

• an email address that identifies inbound enquiries and routes them to the above

• a web enquiry capability for corporate prospects, allowing interests to be registered, and triggering response within 24 hrs

• the ability to handle any “drop in” traffic on campus.

Monitor customer interactions on an ongoing basis, in terms of importance, performance of Monash, and performance of competitors.

Culture

Undertake a more comprehensive assessment of organisation culture, with particular focus on the differences in culture between faculties and departments. Use the Organisation Culture Assessment Instrument (OCAI) together with a Marketing Concept Assessment to assess the cultural and philosophical readiness for CRM.

These assessments will provide important information on the following, by faculty and department:

• organisational focus; internal vs. external

• structural preference; stability vs. flexibility

• orientation; product, production, sales, customer

Develop a culture map of the university to highlight areas that are particularly aligned with CRM principles and those that are not. Prioritise CRM program activities to take advantage of cultural alignment in the early stages of the program, and to address cultural misalignment later in the program.


Competencies

Develop competency models for key customer-facing roles. Identify competencies (foundation, industry and role-level) that are particularly important to the customer experience. It is expected that these will fall largely in the “Community Engagement” outcomes area.

Assess staff in these competencies, and develop personalised development plans to address any gaps. A particularly important area for testing is the ability to describe and deliver the customer value proposition for the segments with which a staff member has contact.

Organisation Structure

In the short to medium term, maintain the current organisation structure, but identify and assign customer management roles to appropriate staff. These roles are responsible for the management of customer segments and key accounts, including development of strategies and coordination of customer activities across the university.

In the longer term, put a central customer lifecycle management function in place. This function is responsible for the achievement of customer lifecycle objectives across the university, including customer acquisition, retention, development and profitability. The specifics of how customer management is integrated with other business functions and the faculties may be developed based the short / medium term experience.

The customer management function is divided into segments and customer types, for example major accounts – commercial, major accounts – government, student segment 1, student segment 2. Ultimately, the strategies and plans developed by customer management will guide the plans of other business functions, wherever these relate to customer activities. The collaborative nature of customer management requires regular meetings with key internal stakeholders to ensure valid plans are developed and can be executed through the wider organisation.

Cross-Functional Processes

Whilst the prevailing view of processes at Monash is within departments and faculties, customers expect processes to flow seamlessly as required to reach the desired outcome. It is therefore important that Monash develops a cross-function perspective of business processes, enabled by resources, competencies and information systems to deliver the desired customer experience.

The cross-functional perspective is achieved through process mapping and refinement using a “cross-functional flowchart” methodology. Process maps then become a regular form of communication and discussion regarding how things are done at the university, and enable staff to understand how their actions affect customers and other departments.

Campaign Management

Plan campaigns to achieve customer and segment objectives, driven by segment strategies / plans, retention, cost-to-serve, acquisition and development (READ) targets. Balance campaigns across segments and customer types, and stages of the customer lifecycle, to achieve READ targets. Achieve the right balance of investment (brand) marketing, vs. direct contact with prospects and customers, guided by pipeline management. Investment marketing has most impact in the early stages of the pipeline, whereas direct marketing and opportunity management apply to the middle and end of the pipeline.

Maintain a central campaign calendar in CRM to provide visibility of all campaigns across the university. Continue to undertake faculty-level as well as central campaigns, provided they are planned and visible in the calendar and support account and segment strategies.


Broaden the perspective on campaigns to include marketing to existing customers to drive engagement, retention, loyalty and growth. Events are also a particular type of campaign – ensure that all events are planned and visible in the campaign calendar.

Develop closed-loop campaign measures, rather than activity-based measures, to gather customer intelligence at every opportunity. Undertake campaigns, where necessary, to collect important customer information such as email addresses, to maintain data quality.

Enquiry Management

Implement a central enquiry database in CRM for all faculties, domestic and international students, and commercial enquiries. Categorise / qualify enquiries and record basic contact information up front. Assign enquiries to the appropriate area in Monash for subsequent qualification, prioritisation and follow up.

Require all Monash staff who may receive an enquiry to be trained in the enquiry registration process. Monitor enquiry volumes and correlate them with applications and opportunities to ensure enquiries are being registered. Where possible, automate the process (for example, with inbound emails and web site enquiries).

Admission / Enrolment

The existing eAdmissions project will provide a streamlined, centralised view of admissions using the Callista system. As part of the CRM program, implement integration between eAdmissions and CRM to provide a consistent view from initial enquiry through to enrolled student. Develop this view as part of the student lifecycle, and to inform pipeline management processes as described below.

Treat individuals as important customers right from the point of initial contact. Maintain contact with them as they progress through admission and enrolment. If a potential student defers the process, for example by undertaking a gap year, develop channels to stay in touch such as email updates, self-service portal, networking site and suitable incentives.

Course Management

Continue to manage the details of student administration, courses, assessments etc in Callista. Develop a single view of the student lifecycle across Callista and CRM, using integration or a third party analytics / portal solution. Recognise the importance of administrative processes in delivering the desired student experience; analyse and design these processes accordingly using cross-functional process maps, journey maps and desired experiences as described above.

Opportunity Management

Develop a structured, persistent approach to managing opportunities. Opportunities include prospective corporate donations, prospective research funding, and any other forms of support that are of significant interest to Monash. Opportunity management includes a structured approach to:

• Discovery

• Qualification

• Alignment

• Proposition

• Negotiation and

• Closure.

Corporate opportunities will also have political complexities such as understanding decision-makers, influencers, and levels of power and preference.


Implement one opportunity management methodology across the university, and require all staff who deal with prospects to be trained and accredited in the methodology. Implement the methodology in the CRM system, so that screens and fields relating to prospects reflect the terminology and requirements of the methodology.

Pipeline Management

Manage the opportunity pipeline using a structured model including:

• Opportunity Stage (a basic opportunity model is provided above; Discovery Complete, Qualified, etc)

• Probability of success

• Forecast value

• Forecast close date

• Cumulative stage targets and actuals

More than one pipeline model may be required, for example one for prospective students and one for corporate prospects.

Develop reports and other views of the pipeline to understand historic conversion rates, and to manage the pipeline to ensure that adequate emphasis is being placed on those stages that are constraining the pipeline.

Account Management

Implement account management for major accounts (Individuals, Businesses & Institutions) in the first instance. Over time, the key account portfolio can be expanded as competencies and resources allow.

Ensure that each key account has a nominated account manager. The account manager is responsible to coordinate, plan and strategise the activities with the customer across the university. This does not require that the account manager becomes a single point of contact; in fact, multiple-point contact should be encouraged provided it is planned and managed in the CRM system, and fits with the account strategy at the time (the “diamond” model of Key Account Management). Account management for widely-known accounts requires regular account planning meetings with key stakeholders.

Develop a Monash-specific account management methodology, and implement this through education and workshops in all faculties and central departments. Require all individuals who have contact with a key account to be qualified in the account management methodology and related use of the account views in the CRM system. Ensure that the account management methodology is value-driven, developing strategies and offers based on the needs of the customer and a mutual exchange of value, rather than pushing the Monash agenda. The focus is to understand what is important to the customer, then align this with the capabilities and offerings of the university.

Activity Management

As a result of process mapping and refinement, identify those activities that are of significant interest to Monash. These may include:

• Face to face calls on corporate customers

• Meetings with prospective higher degree students

• Discussions or meetings relating to research grants

• Telephone conversations with prospective international students


Significant customer activities may take place through channels such as face-to-face (off site or on site), telephone and email.

Develop guidelines for the recording of significant activities in the CRM system, and require all staff who may be involved in these activities to be trained and competent in recording activity details in the CRM system.

Manage customer activities in a proactive way; for example:

• Automatically escalate open activities and enquiries that have not been responded to in a given timeframe

• Align key activities with pipeline stages; for example a qualification meeting being required before an opportunity can be regarded as “qualified”

• Allow activities such as multiple-person meetings to be assigned to other attendees

Analyse the resources involved in these activities, and assign standard activity costs to allow customer cost-to-serve metrics to be determined and subsequently managed.

Service Request / Complaint Management

Implement a central service request register that is able to be used and compartmentalised as required by faculties and other departments. Provide faculty-specific views that allow faculties to manage their own requests from students, whilst providing a central, consistent framework for analysing and expediting responses.

At a central level, develop reports and workflows to ensure that service requests are being actioned promptly. Develop coding and prioritisation structures to allow service requests to be handled in a way that delivers the desired customer experience. Maintain issue resolutions (FAQs) for commonly-asked questions.

Continue with the ask.monash web interface for students (currently using Rightnow), but expand it to allow for all service requests including complaints, feedback and other types of customer (not just students). Actively encourage feedback through a variety of channels such as a central feedback line with clearly published phone number, a feedback email address, a feedback area on the web site, and feedback categories in ask.monash

The central service request register may start as an extension of the Rightnow system, but is eventually required to be part of the central CRM system due to the importance of service requests in the “single view” of the customer.

Capture all service requests, irrespective of the channel of origin (phone, email, face-to-face discussion, web). Proactively monitor the service request database to identify:

• Issues that are increasing in severity or becoming more widespread

• Issues that require a more proactive response – i.e. dealing with the source of the problem

• Feedback that is worthy of action, i.e. a “suggestions box” program with a published list of suggestions being implemented

• Faculties or departments that are having a negative impact on the customer experience, for example by taking too long to respond

• Customers who are becoming “at risk” and require proactive retention strategies, counselling or other forms of support.

Either integrate the existing channels of enquiry (for example, faculty-level email boxes) with the central service request register, or discontinue them.


Contract Management

Implement a central contract / agreement knowledgebase in the CRM system, containing research, partner and other commercial agreements. Store basic agreement information, such as customer, agreement type, dates, size ($), description, contacts and contracted parties in the database, and attach contractual documents in electronic form. Require all agreements across the university, including faculty agreements, to be stored centrally.

Project Management

Implement a central project knowledgebase, containing current, past and planned project information. Projects include research and consulting, as well as cooperative ventures. Require all staff who undertake significant project work to be qualified in the use of the project views in CRM. Require these staff to maintain status and progress information in CRM, and monitor information quality and completeness over time.

Channels

An important principle in CRM is to insulate the customer from organisational complexity. This is achieved in part by simplifying the channels of communication, whilst increasing the sophistication of these channels behind the scenes via cross-functional processes.

Contact Centre

Analyse the telephone communication channel to identify all numbers and contact centres that customers may use. Rationalise these to provide a simplified telephone channel that has access to customer information across the university. Provide the central contact centre with a single view of the customer, including enquiries, enrolment information, opportunities, service request, marketing communications and donation history. Develop a customer experience that recognises customers whenever they call.

This recommendation does not necessarily require the physical restructuring or relocation of existing call centres – but it does require a level of virtual integration that does not exist at present. Existing call centres may remain, and may receive warm transfers from the central contact centre (so that the customer does not have to re-state their details or the purpose of the call). This approach does require a CRM system that is integrated with the telephony system to “pop” the customer screen based on caller ID, where available, and to record customer interactions in a central place.

Expand the capabilities of the contact centre to allow for asynchronous communications such as inbound email, mail and web requests. Handle these in “quiet” times, when the phone lines are not full. Over time, expand the contact centre to support outbound telemarketing to targeted customers (for example, call backs on prospects; follow up on service requests believed to be resolved, etc)

Direct Mail and Outbound eMail

Reduce or eliminate non-personalised mail to customers wherever possible. Register all direct mail / email to customers in the central campaign database, to ensure that all forms of contact with customers are visible in the single view. Ensure that all direct mail / email campaigns are attached to customer lists.

Manage the volume of mail, together with other forms of communication, to not exceed the over-targeting limits in the customer account plan or segment strategy.


Web Site

Review the existing web strategy in the context of the CRM strategy, to assess the extent to which it supports cross-functional customer processes, desired customer experience, and integration of customer channels.

Maintain the existing faculty web sites, but streamline all customer activities across these and the central web site. For example, all enquiries point to the same enquiry registration database and all service issues and feedback point to the central service register.

Reinforce the “integrated multi-channel” nature of the web site by providing alternate channels for communication on the web site, for example the central contact centre, email and “click to chat” support. In its simplest form, click to chat can be achieved by a call back to the customer from the contact centre within a few minutes.

Implement a content management system to allow the content of the web site to be managed by content owners, without interfering with the integrated structure of the site.

Analytical CRM

Business Intelligence

Review the BI Strategy to assess the level of coverage of customer information. Implement a “Customer” major information area, encompassing all customer-specific information including administrative and relational content. Migrate individual, faculty-level and mini CRM data stores into a central warehouse over time. In those cases where the external data store is justified in the context of the overall BI strategy, integrate the stand-alone data store with the central warehouse.

Design data schema to represent the various customer information areas, for example dimensions such as customer master, enquiries, course enrolments, marketing campaigns and donations. Ensure that each data fact and dimension has an agreed database of record. In those cases where there are multiple potential sources of customer information, merge and rationalise these over time.

Customer Value Segmentation

Develop customer valuation models that take into account revenues, margin, cost of acquisition, cost-to-serve and probability of an ongoing relationship and the time value of money. Develop these models across the university, and across the entire customer lifecycle.

For organisational customers, include opportunity and pipeline information such as potential future donations, probability of closure and estimated period of closure.

For individuals (students), include the probability of future higher degrees and progression to donor / advocate status.

Perform regular customer value analysis to develop appropriate value-based segments. Maintain stability with these segments during the course of a year to allow strategic and lifecycle engagement decisions to be made for each segment. Conduct awareness education across the university to ensure that all key staff are aware of the segments and are competent to differentiate the customer experience across segments.

Customer Needs Segmentation

Conduct a review of past research to develop an initial view of customer needs, for both individual and organisational customers. Use this information to conduct further qualitative research to develop a customer needs profile including relative weightings of the importance of needs by


segment. Conduct quantitative research to finalise a codified needs framework, that can be implemented across the university to inform customer engagement and marketing based on needs.

If appropriate, seek research funding for the needs and value segmentation work described above.

Customer Measurements

Conduct research to understand the drivers of customer attitude and behaviour, for both individuals and organisations. Develop a “line of sight” model indicating the relative importance of customer drivers by segment.

Develop a customer analytics dashboard for each type of customer. Allow measures to be analysed across the university, by lifecycle stage and segment. Measures include:

Customer Drivers

• Reputation / image of Monash

• Trust (credibility and benevolence)

• Perceived value

• Perceived quality

• Complaint handling

• Personalisation / relevance

• Monash relative performance

• Gap analysis (importance – performance)

Customer Attitude

• Satisfaction (highest rating percentage)

• Customer experience rating

• Willingness to recommend / refer

• Intention to stay

• Intention to return

Customer Behaviour

• Acquisition rates by segment, channel, value band

• Retention; students (both within course and between courses)

• Retention; donors (repeat donation, recency/frequency/monetary)

• Development (cross-sell, increased engagement, multi “product”)

• Win-back rate

Customer Overall

• Cost of acquisition by segment and channel

• Cost-to-serve by segment

• Customer lifetime value

• Non-monetary (strategic) value

• Overall customer value / loyalty index


Performance Measurement and Staff / Partner Incentives

Review the current performance measurement system, to implement measures that correlate with the drivers of customer acquisition, retention, efficiency and development. Provide incentives (not necessarily monetary) for staff, agents and other partners beyond the basic measures of revenue, guided by the line of sight framework described above.

In the medium term, perform a customer management competence assessment (CMAT™ or equivalent) across the university, to establish a quantified benchmark position for Monash in the following areas:

• Strategy and Stewardship

• Understanding Customers

• Planning the Activity (including Segmentation)

• Customer Propositions

• Customer Channels

• Customer Experience

o Day to day experience

o Building customer value

• Measurement

• People and Organisation

• Customer Information

• Working in the Wider Context

Use the findings and recommendations of the assessment to guide continuous improvement in customer management, and to assess progress every 1-2 years.

CRM Systems and Information

Monash requires a central, universal CRM system to enable many of the recommendations in this strategy.

Existing Systems and Projects

Mini-CRM Systems

Undertake a detailed review of all customer information systems and data stores, starting with the information gathered in this strategic review, together with the BI Strategy. Prioritise existing systems for inclusion in the CRM Program, using the following guidelines:

1. Existing systems that are relatively low cost, and are serving the needs of users well – remain in place in the short term, slate for migration in the longer term.

2. Existing systems that are high cost, and/or not serving the needs of users – slate for migration in the medium term.

3. Systems being implemented at present, but are not yet operational – review the implementation plan to assess the optimum course of action; if justified by cost and impact considerations, discontinue implementation and slate for inclusion in the CRM program in the short term


4. Systems being evaluated for purchase at present – place evaluation processes on hold pending the outcome of this strategy

In the context of this strategy, “migration” may be physical or virtual. Physical migration involves moving customer information out of the legacy system and in to the central CRM system, and decommissioning the legacy system. Virtual migration involves leaving the legacy system in place, and using integration / virtual views to provide a single view across the legacy and central CRM systems.

Central CRM System

Using the information gathered in the Request for information (RFI) process together with more detailed requirements arising from this strategy and further business analysis, develop a Request for Proposal (RFP) for submission to the market in the short term. Conduct an assessment of CRM systems to determine the best fit solution. Include some systems currently in place in parts of Monash (UniCRM, SAP, RightNow, Salesforce.com) together with other well-regarded solutions (Oracle - Siebel, Oracle – Peoplesoft, Stayinfront).

Develop a detailed implementation program for the selected CRM “foundation” solution, encompassing the four streams – Governance, People, Process and Technology. Choose a focused area of high need to implement a pilot, followed by phased roll out across the university.

The ultimate goal of the implementation is not necessarily a physical university-wide system; rather it is a foundation system that provides the bulk of customer information, supported by other smaller “satellite” systems through integration where this is warranted. Monash will require, at least in the short to medium term, multiple CRM systems that operate as one to provide a single view of customers. This can be achieved via integration and well managed cross-functional processes. In the long term, as each satellite system reaches a natural review or renewal point, it is incorporated into the foundation system as is justified.

Callista

Maintain Callista as the student administration system in the medium term. Student administration, together with other functions such as financial and human resources, are not part of the scope of CRM and therefore require separate systems or modules.

Integrate the central CRM system with Callista, to provide a virtual single view of students across both systems. Ensure that integrated views are acceptable from a privacy and ethical viewpoint. Discontinue relationship-style notes in Callista, and enter them in the CRM instead.

Alumni Database

Specialised donor relationship systems are typically not adequate to provide university-wide CRM. Given the importance of these functions, and the fact that alumni and donors are the latter stages of the individual lifecycle, the optimum solution is to ensure the central CRM encompasses these functions.

Maintain the current alumni database in Advance / Raisers Edge in the short / medium term. If the move to Raisers Edge proceeds, negotiate short term (maximum 3 years) contracts only and limit configuration. Once the central CRM foundation is in place, assess the viability of migrating alumni and donor information into the foundation system, verses retaining a separate system and integrating the two.

UniCRM

Maintain the UniCRM system in the short / medium term. If UniCRM does not emerge as the best long-term central CRM solution for Monash, limit additional configuration and implementation work


and commence a phased migration into the central CRM system in a manner that minimises disruption whilst meeting strategic objectives.

A more comprehensive coverage of existing system recommendations is provided in the following section of this document.

Customer Data

The fragmented nature of customer information at Monash is a significant inhibitor of customer processes, experience and value. Conduct a detailed customer information audit, based on the systems map in appendix 8 and any other significant sources of informal customer information.

Identify categories of customer information that are of university-wide significance. For each of these categories of information, identify the various sources that exist. Assess the quality and level of duplication of the existing information.

Within each information category, identify the most important information elements. Assign priorities and quality parameters for key information elements, including level of completeness, accuracy, expiry (shelf life) and security / access. Assess current information sources against these parameters, to determine quality at a detailed level.

Consolidate the above into a central customer information plan (CIP). Use the CIP to guide the activities of the CRM program, in terms of which data to re-use, which data requires cleanup, and which data to discard. Implement the customer information parameters in the CRM system; for example, to ensure that information that has a shelf life on one year is refreshed on an annual basis.

Establish a customer data council capability, potentially as part of the overall Customer Council, to regulate standards for customer data completeness and currency, maintenance and update programs, and compliance with usage guidelines.


Succeeding with CRM at Monash

Overall

The implementation of a University-wide CRM program at Monash will require the the following streams of activity to be coordinated and integrated:

• development of culture, competencies and behaviours

• design and adoption of cross-functional business processes

• implementation of technology and information elements, and

• execution of a clear CRM strategy and governance structure that is aligned with the overall goals of the university

These changes need to be supported using appropriate transition or change management techniques and program management principles.

In order to succeed, the CRM Program at Monash must be guided by a proven methodology such as the CRM Program Cycle (shown below) that focuses the activities of a CRM Program on the mutual exchange of value between an organisation and its customers. The approach will ensure that the Monash CRM program addresses strategy, people, processes and technologies to deliver the expected business outcomes.

Evaluate

Performance

Implement

Solutions

Establish

. Foundation

The CRM Program Cycle

Develop Strategy and Establish Foundation occur at the start of the CRM Program and are subsequently refined on completion of each phase of the Program. The remaining three stages,


Specify/Re-engineer, Implement Solutions and Evaluate Performance are repeated in each phase, and are delivered through specific activities within each phase.

The CRM Program Cycle specifically addresses the three pillars of an enterprise change program: People, Processes and Technology via business process review activities, an education & communication plan and strict technical development life cycle standards. The following sections describe the key elements of the recommended approach for the Monash University CRM Program

Governance

The success of a Monash CRM Program will largely rest on the ability of the leadership team to engender university-wide acceptance of the importance of delivering a consistent, co-ordinated & coherent experience for all its customers. The ability of the team to emphasise and persuade the often disparate faculties and departments within the university, that this is in the best interests of the university as a whole, rather than the individual interests of departments or faculties, is crucial to the success of the program.

CRM Program Governance is achieved through Program Structure, Roles and Management Documents.

Program Structure

The CRM Program Structure comprises

• a CRM Steering Committee made up of key senior stakeholders, the CRM Program Director and chaired by the Executive Sponsor

• CRM Program Team; a cross-functional team made up of the Program Director, Program Manager and Work Stream Leads.

• Individual Project Teams responsible for the implementation of specific initiatives, each led by a Project Leader

Whereas the Steering Committee has overall responsibility for the delivery of the CRM program, the ultimate implementation of the customer experience and the realisation of program benefits across the university requires a more permanent, ongoing management approach. Given the diverse nature of the university, the establishment of a Customer Council will ensure long term sustainability of the customer mandate at Monash. This council shall be responsible for the delivery of the customer mandate including the on-going review and alignment of all customer-related initiatives, with right of veto over any initiatives that do not contribute to the desired Monash Customer Experience. To ensure sustained consideration of the customer’s “point of view”, reference to a customer advocate (preferably external) in this governance structure is necessary.


The alignment of each of these components of the Program Structure is shown below:

Figure - CRM Program Structure

The following section describes the broad roles and responsibilities of each of these groups and their suggested composition.

Roles and Responsibilities

Customer Council

• Provide an oversight role of the broad realisation of CRM within Monash over time, in particular the alignment of the CRM Program with Organisational Goals and Strategy

• Design, review and monitor the delivery of the Monash Customer Experience

• Review all planned faculty or departmental customer initiatives to ensure compliance with the CRM strategy and desired customer experience

• Develop priorities for subsequent phases of the CRM program

• Identify key areas of non-alignment and non-compliance and determine processes to address these

• Monitor any data quality / completeness issues that arise in the university (through the “data council”), and assign responsibility for resolution

• Monitor overall people and process compliance, and initiate corrective programs such as education and process review

ProjectTeam 1

ProjectTeam 2

ProjectTeam 3

Customer Council

Steering Committee

Program Team

ExecutiveSponsor

ProgramDirector

ProjectLead

ProjectLead

ProjectLead

ProgramManager

WorkstreamLeads

Ongoing

External:CRM Consultant

External:CRM Vendor / SI

Managers, Key Users, End Users


• Approve key policy, procedural and organisational change recommendations.

Candidates:

Chair – DVC Education

Members – Academic Director Caulfield /Clayton, Div Director Student & Community Services, Div Director Alumni & Community Relations, PVC Research & Research Training, Faculty Dean Representatives. PVC Quality, Customer Advocate

Executive Sponsor

• Visible advocacy of CRM at all levels of the university

• Maintenance of overall organisational commitment to the CRM Program

• Day-to-day actions that reinforce the commitment, such as regular key customer meetings

• Overall strategic leadership for the CRM program.

Candidate: Vice Chancellor

Steering Committee

• Communication of senior management commitment to the CRM Program to all levels of the university,

• Monitor compliance and involvement in the program, including decisions to incorporate tactical or department-level initiatives in the overall program agenda

• Authorise, prioritise and commit appropriately skilled resources,

• Regularly review the progress and performance of the CRM Program against objectives, measures, time and cost targets

• Review any changes to scope, timing or costs and approve as appropriate

• Ensure that Program initiatives and outcomes align with Program strategy,

• Review key policy, procedural and organisational change recommendations made by the program Team and approve as appropriate

• Signoff major program milestones and deliverables, and

• Resolve escalated issues.

Candidates:

Chair - VP Administration

Members – VP Advancement, VP Research, Exec Director ITS, Faculty Deans

Program Director

• Directs managers to deliver the outcomes of the CRM Program over time

• Coordinates and manages other members of the Program Team

• Assesses and refines the Program as needed

• Communicates the strategic intent and importance of the CRM Program broadly throughout the organisation

• Acts as the implementation arm of the Steering Committee


Candidates:

Robert Willis / Peter Yates (TBC)

Program Team

The execution of the overall CRM program requires the formation of a Program Team that is responsible for the execution and co-ordination of the program over its entire lifecycle. A key challenge for programs of this complexity and duration is to ensure that each major work-stream is sustained and builds upon prior learnings in an effective and efficient manner This will be achieved by the assignment of Work-Stream Leads charged with:

• managing each work stream

• providing an ongoing focal point for projects within the stream and

• custodianship of CRM best practices.

The Program Team is lead by the Program Director and is comprised of the members shown in the following diagram. Each role is further described below.

Human Resources

Customer StrategyManager

Program Director

Information Lead

Systems Lead(s)

Education / Training Lead

Human Resources Lead

Governance

& Strategy

Technology

Process

People

Program Manager

Advancement Lead

Relat ionshipManagement Lead

Channel Lead

CRM Strategy/Charter, Quality Assurance, Execut ive Alignment

Competencies, Culture, Communicat ion, Incent ives, Structure

Communicat ion, Co-ordinate Educat ion, Training & Assessment

Market ing processes, Events, Segment Planning, READ Measurement

Account /Act ivit y Management , Opportunity/Pipeline

Scheduling, Cost , Scope Management

Customer Proposit ion, Segmentat ion, Life-Cycle, Customer Experience

Customer Measures

Architecture, Integrat ion, Inf rast ructure, Development & Test ing

Customer Info Plan, Data Migrat ion, Report ing,

Analyt ics development & integrat ion

Enquiry / Issue Management , Channel Integrat ion, Portals

Monash University – CRM Program Team

Work Streams

Human Resources

Customer StrategyManager

Program Director

Information Lead

Systems Lead(s)

Education / Training Lead

Human Resources Lead

Governance

& Strategy

Technology

Process

People

Program Manager

Advancement Lead

Relat ionshipManagement Lead

Channel Lead

CRM Strategy/Charter, Quality Assurance, Execut ive Alignment

Competencies, Culture, Communicat ion, Incent ives, Structure

Communicat ion, Co-ordinate Educat ion, Training & Assessment

Market ing processes, Events, Segment Planning, READ Measurement

Account /Act ivit y Management , Opportunity/Pipeline

Scheduling, Cost , Scope Management

Customer Proposit ion, Segmentat ion, Life-Cycle, Customer Experience

Customer Measures

Architecture, Integrat ion, Inf rast ructure, Development & Test ing

Customer Info Plan, Data Migrat ion, Report ing,

Analyt ics development & integrat ion

Enquiry / Issue Management , Channel Integrat ion, Portals

Monash University – CRM Program Team

Work Streams

Figure Figure Figure Figure ---- CRM Program Team and Work StreamsCRM Program Team and Work StreamsCRM Program Team and Work StreamsCRM Program Team and Work Streams


Program Manager

• Develops and maintains the Program Schedule

• Ensures effective integration between the Program Plan and specific Project Plans

• Monitors achievement of program activities and

• Maintains Program management documents (listed below)

• Monitors progress against these documents

• Monitors costs against budget

• Supports and collaborates with other Project Leads

Work-Stream Leads

• Overall responsibility for the delivery of each major CRM work stream

• Develop domain expertise including best practice understanding for their assigned area.

• Provide domain expertise and business analysis to each project team as necessary

• Collaborate with other Work Stream Leads to ensure optimum balance of outcomes for each CRM Program Phase

• Establish and monitor best practice methodologies and standards for the delivery of program outcomes and ongoing Customer Management activities.

Project Teams

Where individual initiatives are of sufficient size (such as the Business & Economics CRM implementation) individual Project Teams are required to ensure adequate level of control, co-ordination and ownership.

Project Leads

• Direct project team members to deliver the outcomes of the specific project

• Organise, monitor and control project activities to meet deliverables and milestones

• Manage on-time and on-budget delivery

• Report progress to the Program Team

• Collaborate with Work Stream leads to optimise alignment with overall objectives, approaches and methods and past learnings

Functional Leads

Functional Leads represent their nominated functional area for specific projects as needed. These staff will typically be seconded from the appropriate Division, Faculty(s) or Department (ITS etc)

Program Management Documents

The following documents will be used to manage the CRM Program over time:

• CRM Strategy (this document)

• CRM Program Charter – a reduced, public version of the CRM Strategy

• CRM Program Plan (related to this document)


• CRM Business Case (related to this document)

• Risk Management Plan

• Education and Communications Plan

• Process Refinement Plan

• Customer Information Plan

• Data Migration Plan

• Revised versions of the above, on completion of each Program Phase review

Staffing levels

The execution of the CRM Program will require the dedicated allocation of Monash resources from the respective business and technical disciplines. A cross–functional team must be maintained throughout the program to maintain the necessary collaboration and involvement of all sectors of the university. Specific personnel and loads may vary over the lifetime of the program based upon the specific focus of the individual projects.

Time commitments will vary during the program, and need to be refined once each project team is formed. An initial indication of the expected time commitments over the first year is as follows: (please note, for early draft purposes, the following table is indicative only and requires further analysis to confirm commitment levels)

Role Commitment

Steering Committee Meet monthly, for approximately one hour. Longer times may be required depending on issues.

Program Director Part time – 60%

Program Manager Full time for duration of the Program

Project and Functional Leads Part time; 65% on average, with periods requiring full time commitment during specific projects

Work Stream Leads 80% for duration of the Program

Customer Council Meet monthly to review Customer Management initiatives. Attend workshops and subject matter briefings.

Other Project resources – Training development and delivery, ad-hoc technical assistance

As required.

External Resources; Consultancy & QA, Systems Integrator

Costed into the business case

Phasing

The implementation of CRM at Monash Program is anticipated to be based upon the establishment of a CRM foundation that is followed by a series of initiatives across governance / strategic, people, process and technology dimensions over the medium term. These initiatives or projects are grouped into logical phases that enable clear scope and control to be exercised throughout the program lifetime. This approach focuses on the regular delivery of manageable clusters of capability in the short term (every 3-4 months) whilst supporting the development of a history of success for the program in the long term. It also allows Monash to progressively build the competencies


needed to effectively manage customers whilst avoiding wholesale interruption of existing work practices and cultural norms whilst protecting recent system investments

The content and timing of phases shall be based upon the prioritisation and grouping of several initiatives or projects across each of the business areas. In developing these groupings, consideration will be given to each of the following critical elements:

• the relative business benefit and priority of each initiative,

• recency and level of investment made in recent systems implementation

• the degree to which existing systems meet customer management requirements

• the university’s ability to effectively manage the cultural transition for each initiative,

• risks & resource constraints,

• technology and integration dependencies and

• dependencies between initiatives or phases.


The following schematic represents an early draft phasing approach. The content of each major phase is described in the next section.

General Approach

For each phase the key steps of the CRM program cycle would be repeated (except for Strategy, which would be reviewed only). The key elements of each stage in the cycle are as follows:

Establish Foundation – Define the Charter for the specific Phase including scope, schedule, budget and other resource commitments. Establish or review the project team composition in accordance with the program scope,.

Specify / Re-engineer – According to the scope of the phase, map and subsequently refine business processes that are in scope. Develop desired customer experiences to guide this process refinement. Perform gap analysis between desired business processes and technology capabilities, organisational capabilities, data, policies & procedures and functional requirements. Document and approve changes for implementation.

Implement Solutions – Build and test changes to technology, integration, organisation structures, policy / procedures / processes, data needs and migration. Conduct appropriate training and piloting for staff prior to final execution.

Figure Figure Figure Figure ---- Project Phasing ApproachProject Phasing ApproachProject Phasing ApproachProject Phasing Approach

Technology

CustomerExperience

Processrefinement

People

Governance/Strategy

Customer Info & Measures

Process

2009 2010 2011

ProgramTeam

Faculty Rollout/Enquiry Mngt. & Research

2012

Customer Mandate Execution

Strategy ReviewProgram Steering

Lifecycle Mode & MOT’s CE Delivery & MeasurementCE Design – Journey Plans

Proposition

P1 P2

Account

Management

EstablishGovernance

2008

Eval &

Selection

Customer Council

Tech & Data

AuditBI Integration

CRMStrategy

Callista Integration

Core CRM & Faculty Pilot

CRMCharter

InternationalRecruitment & Faculties

Donor/Alumni Int’nFinal Faculties

P3 P4

READ MeasuresBI ReviewCIP

Phase 0

Team & Charter

Opportunity

Mngt

Customer Measures

Value

Segmentation

Educ’n &Training

MU Proposition

Phase 2 Phase 3 Phase 4

Needs

Segmentation

Scope

Segment

Propositions

Team & Charter

Team & Charter

CID

Comm. Plan

Cultural

Assessment

Competency

FrameworkIncentive Design

Culture &Organisation

Phase 1

Pipeline

MngtCRM Overview

CIP

Assessment Competency Plans

Major Acct

Propositions

Structural Review

Technology

CustomerExperience

Processrefinement

People

Governance/Strategy

Customer Info & Measures

Process

2009 2010 2011

ProgramTeam

Faculty Rollout/Enquiry Mngt. & Research

2012

Customer Mandate Execution

Strategy ReviewProgram Steering

Lifecycle Mode & MOT’s CE Delivery & MeasurementCE Design – Journey Plans

Proposition

P1 P2

Account

Management

EstablishGovernance

2008

Eval &

Selection

Customer Council

Tech & Data

AuditBI Integration

CRMStrategy

Callista Integration

Core CRM & Faculty Pilot

CRMCharter

InternationalRecruitment & Faculties

Donor/Alumni Int’nFinal Faculties

P3 P4

READ MeasuresBI ReviewCIP

Phase 0

Team & Charter

Opportunity

Mngt

Customer Measures

Value

Segmentation

Educ’n &Training

MU Proposition

Phase 2 Phase 3 Phase 4

Needs

Segmentation

Scope

Segment

Propositions

Team & Charter

Team & Charter

CID

Comm. Plan

Cultural

Assessment

Competency

FrameworkIncentive Design

Culture &Organisation

Phase 1

Pipeline

MngtCRM Overview

CIP

Assessment Competency Plans

Major Acct

Propositions

Structural Review


Evaluate Performance – Review achievement of phase, program and business objectives through formal Post Implementation Review. Support and embed new work practices, technologies and customer processes. Adjust plans, approaches and resources for subsequent projects.

A review of the Monash CRM Strategy will take place on completion of each phase, to ensure the appropriate priorities and initiatives are in place for the next phase. The CRM Program will be continuously monitored to allow response to changes to environment in which the University operates, particularly relating to customer behaviours and/or opportunities that arise during the course of the program.

Appendix 7 provides a more detailed description of the specific activities for each of these stages.

Phase Summaries

The following describes the key elements of each of the Phases up to Phase 2 as shown in the overall Program schematic above. A detailed Program Schedule is provided as Appendix 9.

Strategy

Objectives

� Construct a detailed CRM Strategy Document, addressing the future direction for all customers, channels and contact methods at Monash (this document). The Strategy includes the development of a CRM business case, return on investment and program plan.

� Achieve formal approval and budget commitment for the commencement of the program.

Key Dates and Deliverables :

Finalised Strategy – 28th May

Approved Program and Budget – 30th June

Phase 0 - Foundation CRM

Objectives

� Establish an effective Steering Committee, to guide the program towards the required business outcomes and provide appropriate governance.

� Establish a cross-functional Program Team, including representatives from impacted Monash departments, to ensure the buy-in and involvement of key stakeholders.

� Evaluation and selection of the best-fit / best-cost CRM technical solution for Monash

� Construct and publish a Program Charter that describes the objectives, scope, resource commitments and schedule for the next phase of the Program.

� Cultural assessment, audience analysis and development of a communication and education plan, to ensure key areas of people and transition management are addressed in the program.

� Scoping and prioritisation of all business processes, to ensure that we manage the scope of deployment within the remaining phases in an integrated, cohesive way.

� Validation and further analysis and mapping of key interactions and processes between Monash and its customers, to provide clarity on the scope of CRM, and ensure a balanced focus on the customer’s perspective.


� Commence education and communication program including program kick-off and introductory CRM concepts education.

� Conduct an audit of existing customer data, systems and supporting technical resources to validate priority areas and quantify customer information quality, completeness and critical information gaps.

Key Dates and Deliverables

Establish Program Steering Committee and Program Team - August 2008

Complete Technology Evaluation and Selection, conclude contracts - December 2008

Complete Phase 1 Charter - December 2008

Estimated Investment

External – (Consulting & Education) $150,000

Phase 1 – Establish CRM Platform

Objectives

� Develop a Customer Information Plan that identifies all the current sources of customer information, information gaps, data quality and methods and priorities for information gathering and cleansing, to ensure that we can support business integration objectives through information integration and technology.

� Establish the foundation customer knowledgebase with appropriate integration with Callista. Migrate and clean customer data as required.

� Implement first round of specific technical CRM capability for currently unsupported or high priority areas such as Account Management for Industry Engagement & Commercialisation, External Affairs and support for a suitable Passport project such as the Gap Year. Establish core customer management capabilities such as:

o Contact & Activity Management

o Marketing & basic Event Management

o Enquiry Management

� Pilot the implementation core CRM capabilities for a selected faculty.

� Commence the design of a customer value segmentation model that is applicable to all departments and faculties

� Develop a clear Monash University Customer Value Proposition based on the customer’s perceived value and benefits to drive consistency and differentiation in all customer-facing interactions.

� Commence the specification the Monash customer lifecycle models for all customer types

� Research and define moments of truth and the ideal desired customer experiences for all major customer interactions.


� Formulate the Monash Account Management methodology and provide training to selected account managers in Advancement, especially Industry Engagement & Commercialisation.

� Construct a Customer Management Competency Framework that encompasses all customer facing roles.

Key Dates and Deliverables

Phase 1 Process Refinement - Feb 2009

Complete Customer Information Plan - May 2009

Complete Pilot - Sept 2009

CM Competency Framework - Sept 2009

Phase 1 Go-Live - Oct 2009


(External - Software, Maintenance, Hardware, Professional Services, Integration, Education & Consulting, Program Management, Travel) $1,114,000

(Internal – Staff backfill) $517,200

Phase 2 – Faculty Implementation and Enquiry Management

Objectives

� Implement second round of specific technical CRM capability for nominated faculties such as Business and Economics and Information Technology that are either poorly supported at present or are incurring high costs for existing mini-CRM systems.

� Integrate the foundation CRM with the HDR Enrolment application and other Research areas

� Replace back-end processes and technology for ask.Monash and implement university wide use of core customer management capabilities such as:

o Enquiry Management

o Complaint & Issue Management

� Assess major Account Management practices and expand training and implementation to other areas

� Based on the moment of truth outcomes, define journey maps for all major customer groups. Define the ideal and desired experience for each MOT and associated Monash processes and responses.

� Implement a customer value segmentation model in the CRM and commence the design of the customer needs segmentation model.

� Design of appropriate READ measures and targets for all customer types and segments. Develop appropriate reports and establish management reporting and review processes.

� Tailor the overall Monash University customer value proposition to align with major customer segments and Monash assets and capabilities. Commence development of University wide segment plans that drive all marketing activities.


� Commence the assessment of current staff using the competency model and identify major gaps. Develop competency plans for key customer facing individuals and Advancement staff.


(External - Software, Maintenance, Hardware, Professional Services, Integration, Education & Consulting, Program Management, Travel) $1,968,000

(Internal – Staff backfill) $517,200

Phases 3, 4 and 5

These phases will follow a similar flow to phase 2, extending into additional business areas, channels and functional capabilities as determined by the detailed scoping of each Phases. Detailed planning of these phases will take place progressively as the need arises, taking into account the outcomes and experiences of the early phases of the program.

Scope Limitations and Exclusions

In order to ensure that we deliver the primary business outcomes being sought at Monash the program will focus on the areas of greatest return on effort. The following areas will therefore not be included in the CRM Program at this stage:

� International Campuses

� Integration with Monash’s Finance system

� Integration with Monash’s Human Resource Management system

Performance Measures

Program-level performance measures are required as part of the governance of the Monash CRM Program. These measures must be accepted by the project teams, and authorised by the Steering Committee. Program performance measures typically comprise attainment of objectives, completion of deliverables, and achievement of milestones. Ongoing business performance measures shall also be established to monitor ongoing success of the Monash CRM program. A number of performance measures may be suggested at this time:

o Formation of the Steering Committee and the Customer Council by a specified time

o Communication of the Customer Relationship Management Strategy by a specified time

o Timetable for achieving key milestones.

o Actual costs against budget and business case

o Pilot completion, across a specified number of users, with survey confirming acceptance by a specified time

o Similar uptake / satisfaction-based measures on other project milestones including maintenance of opportunity status & account plans.

o Regular review and assessment of the elements of the Monash Scorecard to ensure that the program is positively contributing to the university’s performance.

o Business result measures, to be agreed, based on key elements of the business case. Specifically READ measures by Faculty and Department should be initiated and monitored throughout the program


o Customer-facing measures, such as customer satisfaction survey results, uptake of lower cost channels, or conversion rates based on message targeting and relevance.

Finally, on completion of the technology implementation project, a post-implementation review should be performed in order to assess performance, and any requirements for ongoing work.

People

Communication and Education

A detailed communication and education plan is required to address the people aspect of the CRM Program. It encompasses communication and education activities in the short to medium term, focusing on specific audiences and their needs within the organisation.

Key elements of the Communication and Education Plan are shown below.

Communications

• Initial Executive Workshops to gain appreciation and support for CRM principles

• Steering Committee Meetings

• Program Team Meetings

• Kick off meetings in each major division and faculty

• Regular departmental/faculty meeting updates

• Customer dialogue, interviews and surveys

• Supporting media and technologies as required, for example video, web page, email newsletter

Education & Training

Customer Centric Education

Customer-centric education raises awareness and understanding of Customer Relationship Management at Monash. Given the specific challenges Monash faces in bringing together the various division and faculties to a common customer-centric mindset, the education program is considered a critical success factor.

The overall goal is to:

� gain acceptance of the program,

� ensure that the CRM Program delivers business outcomes,

� set realistic expectations as to what will be delivered as part of the program, and

� prepare people for the new practices, processes and roles.

Education will address new competency requirements, such as understanding and delivering value to customers, account & relationship management, customer-centric marketing and customer service. In each of these areas, the focus will be on learning new concepts and best practices, as well as making the most of the new CRM system capabilities in each area.

The education process starts with a series of general CRM Overview workshops to develop broad understanding of “true” CRM, gain involvement and buy-in. These are conducted firstly with senior executives and Steering Committee members, and then are rolled out progressively to Program Team members, Project Team members and key users. Program- and Project-related versions of


this workshop also cover the critical success factors for CRM, governance and competencies such as process mapping.

Software application, tools and methodology education

The CRM solution provider(s) shall provide education in:

• configuration,

• system administration

• technical implementation, and

• use of their applications.

Target audiences include ITS, the Program Team and Key Users.

End user training

End user training (EUT) is performed immediately prior to going live in a given location or department, and is targeted at all new users. It focuses on the new CRM systems and processes, and what people need to do differently.

This training will be developed in advance, and packaged to allow effective roll out throughout the organisation. It will be largely procedural rather than conceptual, and will be accompanied by supporting documents to help people in the early days of the CRM System deployment.

End user training will be developed on the assumption that conceptual education has largely been accomplished by the in-house education programs described earlier in this document.

Organisational Change

Culture

Cultural barriers need to be understood and managed from the start of the CRM Program. The organisational culture at Monash varies by division and faculty, making this area particularly complex to manage. This strategy recommends undertaking a cultural review during the Foundation phase, to identify the cultural status of each area involved in the Program. Cultural change may then be achieved over the medium term (between two and five years) through clear executive direction, leadership, education and involvement.

Cultural change will also be enabled by structural and incentive-driven change. This includes:

• organising processes to deliver an explicit customer experience,

• structuring teams and reporting lines to reinforce customer competencies and priorities,

• implementing systems and information to reinforce the importance of the customer asset and centralise customer knowledge, and

• implementing performance measures and incentives to support READ objectives.

Key Account Manager and Teams

In order to support the effective development of relationships with major accounts, identify and assign specific account management responsibility to appropriate individuals wherever they may reside within the organisation.

These key account managers have overall responsibility for co-ordinating all interactions with the account with a mandate to ensure the mutual exchange of value to the account and Monash through direct oversight of the following:


• Account Strategy

• Opportunity identification and management (Donations / Research / Employment / Consulting)

• Account Team formation and review

• Enquiry & Issue follow-up and resolution

The composition of Account Teams for each major account will typically be drawn from the following disciplines:

Faculty(s), Donor Relations, Research, Industry Engagement, VCG & International (as appropriate)

Processes

Business Processes are central to how an organisation conducts business; they determine costs, effectiveness, and ultimately the customer experience. The ultimate benefits of CRM cannot be gained by technology alone; to merely add automation to an existing manual process is often of little value. To ensure that existing business practices are refined as necessary prior to the implementation of any technology it is necessary to take the opportunity to review what we do before institutionalising it in the design of the supporting systems, rather than to change the business to suit the technology.

This strategy recommends the adoption of the following approach to refining customer based business processes as part of each program phase. This approach documents key Customer Management processes in a way that can drive consistency, measurement and sharing of best practice across Monash, and deliver the desired customer experience.

• Define all current (“as-is”) business processes that relate to all customer interactions, highlighting departmental boundaries, inefficiencies and activities that do not contribute to customer value.

• Prioritise these processes based upon the degree of customer and business impact

• Describe the objectives (ours and the customer’s), critical success factors and performance measures for each process.

• Specify the desired customer experience for each customer-facing process step. Develop desired ("to-be") businesses processes in the context of the Monash customer strategy, and potential technology & organizational capabilities.

• Describe information requirements for the "to-be" processes: that is - define what information is required to be presented and gathered for each process ste

• “Test” each process against a number of factors including the creation of value and focus on customer.

Technology

Application System Audit

In order to define the technical implementation roadmap for CRM at Monash, a detailed system audit is required encompassing all customer related applications in order to identify and prioritise those systems that should be targeted for:

• New implementation


• Replacement

• Future assimilation

• Retention and Integration

• Leave as-is / out of scope

The dimensions of the audit include:

• Degree of specialisation versus core CRM functions

• Compatibility with technical architecture standards

• Operating costs (maintenance, support)

• Degree to which the system is meeting current need (overall and specific areas)

• Degree to which the system is capable meeting future needs

• Identification of common needs outside of core CRM capability

• Degree of commitment/disruption

o Recent investment in terms of human and financial capital

o Degree of integration with other core systems

o User acceptance

The following framework would then be used to determine the appropriate implementation strategy for each system or area. The priority assigned would need to be based upon the degree to which each initiative contributes to the achievement of the overall objectives of the CRM program for the University

Characteristics Strategy

No current system in place Implement New

High degree of core CRM functions

Does not meet Technical Standards

High Cost

Limited capability (current or future)

Low commitment / low disruption

Replace with central CRM

High degree of commitment / Low disruption

Acceptable cost

Meeting current needs

Limited ability to meet future needs

High degree of core CRM functions

Future Assimilation into central CRM

High degree of specialisation Retain and Integrate


Meets current & future needs

Acceptable cost

Technically compliant

High Commitment / High disruption

Core CRM System Capability

With reference to the above, core CRM capability to be delivered as part of any foundation CRM system includes the following:

• Customer Knowledgebase

o Customer / Contact details, Interactions, Profile/Attributes (including value and interests), Contact preferences, personal and organisational relationships.

• Marketing

o Planning, Execution, Event Management

• “Sales”

o Leads, Opportunities, Pipeline, Account Planning

• Activity / Contact management

• Service Management

o Enquiries, Complaints, Fulfilment

Based upon the investigation performed to-date in the preparation of this strategy an initial assessment and suggested approach for each of the existing systems is shown in the following table. This approach must be validated as part of the more detailed review described above.

System Characteristics Plan

SAP Specialised application

Technical compliance

Potential Foundation CRM candidate

otherwise Retain & Integrate

Callista Specialised application

High Commitment / Disruption

Retain & Integrate

Callista – eAdmissions

Specialised application

High Commitment / Disruption

Retain & Integrate

Sunguard Advance / Blackbaud Raisers Edge

Specialised functions

High level of core CRM capabilities

Moderate Commitment

Limited capability to support future needs

Future Assimilation into central CRM – retain specialised donation processing functions if necessary

Ask.Monash High level of core CRM capabilities Replace underlying system but maintain web interface approach; expand to


(RightNow) Questionable technical compliance

Operating cost

encompass all service enquiries

HDR Admissions Specialised application Retain & Integrate

Streamline eTouchpoint UniCRM


High level of recent Commitment

Future Assimilation into central CRM

(Potential Foundation CRM candidate)

Business Intelligence (BI)

Specialist application

High commitment

Technically compliant

Retain & Integrate

TRIM Specialist Application Retain & Integrate

Salesforce.com High level of core CRM capabilities

Technical Compliance questionable

Operating cost

Low commitment/disruption


International Database


Low cost

Moderate commitment/Low disruption


Research Master Specialist Application Retain & Integrate

External Affairs & Industry Engagement

Not currently supported

High level of core CRM capability required

New Implementation using central CRM

Customer Information Plan

The development of a customer information plan is comprised of two key steps:

Information Source Audit

The Information Source audit seeks to establish current sources of data for Monash customers. This includes enterprise systems, local databases and individual spreadsheets, databases & hard copy records. An evaluation of the quality in terms of currency, completeness and relevance along with the suitability of the source as a future “master source” is required. Current maintenance practices such as change management, data cleansing, and validation along with security and privacy practices are to be assessed for adequacy and identification of gaps or best practice.

Information Quality Standards

This involves the establishment of clear standards relevant to Monash University's customer related data. These form part of the Customer Information Plan but must also be available to and agreed with the owners of all customer information systems. The quality standards should make clear how each element should be measured and the target level of achievement.

Information quality may be managed in terms of FRAC:

• frequency of update


• recency of update

• accuracy of the data

• completeness of the data.

Appropriate reports and analytics to monitor data quality in key areas are to be developed and published to the relevant faculties and Departments. The Customer Council shall set targets to be achieved, monitor performance and direct corrective action on an ongoing basis.

Business Case Summary

Approach

The business case for this program has been developed using the following general approach.

Benefits

An estimate of financial benefits has been constructed using READ Analysis techniques including

• estimated revenue enhancement gains

• expected operational efficiency gains and

• elimination of current infrastructure costs primarily associated with operating multiple stand-alone mini-CRM systems.

READ Analysis has been applied at the faculty level for each major student type and for Donors & Alumni. Given limited data this analysis was not performed for other customer revenue streams such as Industry, International or other research partners. Improvement rates for Retention, Acquisition and Development have been based on either identified gaps with other Go8 Universities as per the Internal Performance Index reports or CCA’s experience & generic benchmarks. The detailed analysis is available as spreadsheets provided separate to this report.

Cost saving estimates were derived from:

• Identifying existing operating costs associated with standalone CRM systems that will be assimilated or integrated with the core CRM system.

• Quantifying efficiency gains through the elimination of non-value adding tasks or costs (error correction, manual reporting, double handling and communication with other divisions and faculties, dead mail etc.)

Program Costs

The estimate of program costs is based upon:

• Estimates provided by CRM technology vendors who responded to a Request for Information (RFI) for the provision of CRM software and implementation services. Cost figures will be subject to final negotiation with vendors. Further details of the RFI process and analysis are contained in Appendix 11.

• Bottom-up estimating of consulting and education costs based upon the proposed Program content and timing


• Application of generic benchmarks or experience for other elements of cost such as Integration, Program Management and hardware.

The program cost analysis comprises the following cost elements:

• Software Purchase

• Software Maintenance (annual)

• Hardware & Infrastructure

• Integration

• Vendor Estimate; Development, Implementation & Training

• Implementation Contingency

• CRM Education and Consulting

• Program Management

• Travel and Sundry

General Inputs & Assumptions

General inputs to the construction of the business case include:

Annual Revenue, $M $ 1,389

Weighted Average Cost of Capital 7.5%

Incremental Margin * 17%

Percentage of cost savings realised 50%

Percentage of revenue benefits realised 75%

An example of a cost saving opportunity is as follows:

“Reduce manual information handling time through automation of information flow between departments, removal of duplication, and ease of retrieval. Remove data transcription, stand-alone electronic documents and databases”

It should be noted that the model is conservative, in that opportunities for improvement have been identified, but only a proportion of the opportunity has been claimed. Benefits are then reduced as indicated above to reflect that not all of the claimed opportunity may be realised.

The realisation of benefits have apportioned over several years to align with the phased deployment of capability. Furthermore, the realisation of benefit for each phase is not immediately achieved as it takes some time until staff behaviours, business processes become embedded and customers respond. The percent uptake of benefit per phase is shown below.

Year 0 & 1: 0% - the majority of year one will be implementation

Year 2 : 20% - Commence realisation of Faculty Pilot and Account Management practices

Year 3 : 40% - Further capabilities and areas implemented.

Year 4 : 70% - Further capabilities and areas implemented, further experience

Year 5 : 100% - Several Years experience and university wide integration for 1 year


* A margin of 17% has been used to convert revenue gains into incremental contribution to overall profit. This value may be understated, however this is in keeping with the conservative approach taken.

Outcomes

The financial business case for CRM at Monash is compelling. The principal areas of benefit include:

Benefit Estimated Value per annum

Improvements in retention rates for students especially undergraduates $4M

Increasing the rate at which students elect to commit to further post graduate study

$3.4M

Improved account and opportunity management performance to win a greater share of competitive research grants, bequests and donations

$2.3M

This business case is in line with other documented implementations of CRM. The payback period for Monash University is approximately 30 months, as compared to an average figure of 15 months. This longer payback period is a result of the conservative program schedule necessitated by the diversity and complexity of the program and the degree of organisational or cultural change that is required.

The full business case model is summarised below and presented in detail in Appendix 10.

Monash University CRM Program Return on Investment Analysis Prepared by: Customer Connect Australia

Benefit - Cost Summary Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Phase 0 Phase 1 Phase 2 Phase 3

Total Bottom Line Benefits Per Year 0 $0 $2,780,817 $5,561,634 $9,732,859 $13,904,084

Cumulative Benefits, Present Value $0 $0 $2,586,806 $7,399,469 $15,234,037 $25,645,422

Weighted Average Total Costs Per Year $160,000 $1,630,981 $2,485,329 $2,504,579 $1,925,230 $436,129

Cumulative Costs, Present Value $160,000 $1,790,981 $4,102,914 $6,270,208 $7,819,942 $8,146,516

Net Cash Flow -$160,000 -$1,630,981 $295,488 $3,057,055 $7,807,628 $13,467,956Cumulative Net Present Value Cash Flow -$160,000 -$1,790,981 -$1,516,108 $1,129,261 $7,414,094 $17,498,907

Internal Rate of Return 123%

Net Present Value, 5 Years $17,498,907Return on Investment, Present Value, 5 Years 215%

Cumulative Net Present Value Cash Flow

-$5,000,000

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Figure - Business Case Summary


Breakdown by area is summarised as follows:

Benefits by Area by Year

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

Year 1 Year 2 Year 3 Year 4 Year 5

Serv ice Management

Revenue Benefit

Serv ice Management

Cost Benefit

Relationship

Management Revenue

BenefitRelationship

Management Cost

BenefitMarketing Revenue

Benefit

Marketing Cost Benefit

Figure - Benefits by Area

Breakdown by general initiative is summarised as follows:

Annual Benefits by Initiative

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

Cost Benefit Revenue

Benefit

Contact Centre &Portals

Analytics &Performance Measures

Account_ ContactManagement

Marketing Automation

CustomerKnowledgebase

Figure - Benefits by Initiative Type


Appendix 1 – Context for the Strategy Our proposal includes comprehensive coverage of Monash’s stated requirements. Based on discussions with Monash, we are proposing a streamlined approach in which we will work alongside key Monash personnel in a collaborative engagement that produces a number of deliverables over a three month period.

Our approach also removes the need for a formal Request for Proposal (RFP) to be developed at this stage of the project. We are recommending a shorter, less onerous Request for Information (RFI) process be undertaken, sufficient to inform the business case. The RFP process can then be conducted later in 2008, on more up-to-date information.

The following sections outline the activities that CCA will undertake to deliver Monash’s requirements. These activities are fully costed into the fixed-price investment summary outlined later in our proposal.

Identify and analyse the current situation

Review existing business strategies, directions and frameworks

Review existing relationship management systems

Review IT strategies

Review historic customer and employee survey results

Situation assessment, optionally using CMAT™.

Interaction diagrams, 5 (one per major stakeholder)

Major process scope map

Interaction prioritisation chart

Recommend a strategy for University-wide relationship management

Develop vision and goals for RM

Develop initiatives

Governance / team structures

Program Resilience Plan (QA & Risk)

Develop performance measures

Finalise and present RM Strategy Document

Develop the business case for enterprise relationship management (including Request for Information process)

Develop vendor RFI (commence earlier, after situation analysis)

Conduct market survey; gather indicative costings

Develop staffing estimates

Gather / quantify potential benefits

Develop 5-year TCO

Develop benefit estimates using cost savings and READ analysis


Finalise business case

Prepare Implementation Plan

Identify and agree milestones and calendar of external drivers

Confirm resources and team structure

Scope project activities and schedule

Develop implementation plan

Project Management, Planning and Sundry

Engagement planning and scoping

Engagement management over the 6 week period

Travel, airfares and accommodation to support the above activities.


Appendix 2 – Interviewees and Source Documents The following people and documents provided input to this strategy:

Interviewee Position

Jeremy Du Ve Director Applications Services, ITS Division

Lindsay Macdonald Manager, Integrated Administrative Systems, ITS Division

Merran Evans Pro VC Planning

Allan McMeekin Exec Dir ITS

Max King Pro VC Research

Bronwyn Shields Faculty of Arts

Rod Hill Pro VC Industry Engagement and Commercialisation

Sarah Newton Director, Industry Engagement

Peter Yates Div Dir Student and Community Services

Gerard Toohey Dir Student Administration and Systems

Rowan Crosbie-Goold Marketing Manager, Faculty of IT

Caroline Knowles Postgrad Recruitment Mgr, Marketing & Student Recruitment

Eliana Hruby Director, International Recruitment Services

John Kearsey Director, Donor, Alumni & Community Relations

Christina Klopfer Student Communications (ask.monash)

Peter Marshall VP Administration

Phillips KPA Consultants - HDR Process Review

Sally Joy Assoc Prof Business & Economics

Caroline Parsons Group Manager, Industry Engagement, BusEco

Robert Willis Academic Director, Caulfield and Clayton

Andrea Heyward Director, Planning and Performance

Ian Kiddell Director, Workforce Information Systems

Stephanie Fahey DVC International

Kate Roth Director International Education

Damien Farrell Director, External Relations

Adam Shoemaker DVC and VP Education

Norm Wall Group Manager, Marketing, Bus Eco

David Albon Web Content Manager, Marketing, Bus Eco


Document

Monash Directions 2025

Excellence and Diversity Strategic Framework 2004-2008

Senior Management Chart

Monash University Pocket Statistics 2007

www.monash.edu.au – various extracts

WES Survey Results Breakdown

Client Relationship Plan 2007

Postgraduate Marketing and Recruitment Plan 2008

International Admissions Unit 2007 Business Plan

Marketing and Student Recruitment Division 2007 Plan

Marketing and Student Recruitment Plan 2007-2010

Student & Community Services Division Operational Plan 2006-2008

Streamline Solutions CRM Presentation 20th June 2007

Callista Training Guide

Customer e-Service (RightNow) Project Concept

CRM & Telephony (UniCRM) Project Charter

eAdmissions Project Charter

Industry Engagement and Commercialisation CRM Requirements

Business Intelligence Strategy 2006

HDR Admissions Improvement Project

ITS Strategic Plan 2008-2010

IT Architecture 2006ask.Monash Service Monthly Report

Ask.Monash Screen Shots

2007 University-Wide KPI Report

2007 Internal Performance Indicators Report

ITS Web Strategy

Annual Report - 2006

Annual Report - 2007

Annual Plan and Budget - 2008

Academic Plan 2006-2010


Appendix 3 – CRM Vendor Market CRM software vendors can be described as Enterprise, Midmarket or Specialised.

Enterprise CRM suites comprises vendor solutions primarily targeted toward organisations with revenues of more than US$500 million per year and/or more than 500 employees. CRM vendors focused on enterprise-class organisations typically offer a full range of modules, can scale to serve large user populations, and offer support for many industries, languages and currencies. They offer their products primarily through the traditional on-premise license model, however, several of the leading players now offer hosted deployment options.

Midmarket CRM suites comprise vendor solutions primarily targeted toward small and medium-sized businesses. CRM vendors in this group also offer a breadth of CRM capabilities, but these are often limited in specific areas and are simpler to use than solutions built for the large enterprise market. These vendors are less suitable for large-scale global deployments.

CRM speciality applications comprise vendors that offer solutions with narrow functional breadth but deep specialty capabilities, for both enterprise and midmarket organisations. They typically do not offer a full range of modules (for example, they may support contact management and marketing, but not service, support or call centre), or may have solutions tailored for a specific sector. This category also includes vendors that focus on CRM analytics.

The following CRM Software vendors are active in the Australian market:

Enterprise CRM suites

Infor CRM E.piphany

Onyx CRM

Oracle’s E-Business Suite CRM

Oracle’s Siebel CRM

Oracle’s PeopleSoft CRM

mySAP CRM

StayinFront

Midmarket CRM suites

Microsoft Dynamics CRM

NetSuite

Oracle’s Siebel CRM On-Demand

Pivotal CRM

RightNow

Sugar Enterprise CRM

SageCRM

salesforce.com (incl. Studentforce)

Saleslogix

Streamline eTouchpoint


Specialist Applications

Donor management

Blackbaud - Raisers Edge

ASI iMIS

University / Higher Education

Talisma

Sunguard Advance

Marketing automation

Aprimo

Unica

Data mining and analytics

SAS

SPSS

Teradata


Appendix 4 – CRM at Other Higher Education Institutions

Web Search Results: University CRM Solution Notes

University of Adelaide Raisers Edge (Alumni only) Alumni database. Also implementing iModules for eCommunity with Alumni

Australian National University

Raisers Edge (Alumni only) Raiser's Edge is a tool used within Marketing and Communications to manage Alumni records

University of Melbourne Rightnow Some faculties and admin units

University of NSW None Goal: 1. To implement a Customer Relationship Management (CRM) system to provide a common view of each student record.

University of Sydney AIMs for Alumni, Sunguard Advance for Donors

University of Queensland Raisers Edge (Alumni only) The UQ INSIGHT project has market research, strategic planning and customer relationship management components. It will provide more reliable data about students, potential students, alumni and other groups

Southern Cross University Streamline eTouchpoint End to end university-wide CRM

University of Southern Queensland

RightNow

Open Universities Australia PeopleSoft CRM Selected in 2006

Council of Australian University Directors of Information Technology Survey Results:

The survey was conducted through the Council of Australian University Directors of Information Technology in April 2008. Twenty Australian and New Zealand universities responded to the survey, including University of Melbourne, University of Sydney and ANU.


5. Please describe how your CRM program is addressing policy, governance and organisational issues.

Policy - determine responsibility for contact. Governance - allows for a single view of the customer. Org Issues - provides a mechanism to bring together disparate information and system. Program is very basic at present. We need to do a great deal more work to have a CRM program that manages all of our customer groups.

We recognise that unless these processes are in place there is no point in implementing a technology solution that will try to cater for poorly defined organisation-wide needs. It's early stages yet, but we will tackle policy, governance and processes before we proceed with stage two i.e. an organisation-wide implementation of a CRM.

Currently via Student Experience Steering Committee

Currently under review as part of Student Management Project

The key driver for the project in 2008 is the capture of student interactions into one system and the actions taken to fulfil those inquiries. The project is taking small steps and will progressively bring areas of the University and functionality on-board.

Currently interactions with students (both prospective and current) are managed in numerous ways and by multiple systems.

The CRM solution purchased is seen as an enterprise wide solution, but will be implemented progressively across different areas of the University. The directive being given to the University is that this solution will be the Deakin wide solution, although areas and functions will be developed over time.

Common approach to Student customer service, alumni, stakeholders and fund raising.

Traditionally, CRM is often driven by the Marketing team at universities and as a matter of fact, in most corporations. However at Bond, we have recently embarked on a significant project which not only focuses on CRM but the streamlining of our overall business processes and integration to the existing Student Management System. Our CRM aims to be enterprise in nature with numerous touch-points along the various stages of Bond’s Student Lifecycle model. As such, the CRM will impact almost every administrative department and all faculties across the university with the focus on the student from lead generation till graduation and ultimately when the student becomes our alumni. Moving through this project will address several organisational and cultural issues. From the business process angle, this project will definitely help in defining a proper governance structure with a single-view to all policies and procedures.

6. What CRM software / systems are being implemented?

a. for marketing and events TouchPoint, Raisers Edge RaiserEdge SugarCRM Outsourced probably Sugar CRM (initially) Microsoft CRM Dynamics 4.0 Rightnow

b. for contact and account management Raisers Edge SugarCRM probably Sugar CRM (initially) iMIS

c. for service / contact centre Rightnow


RightNow SugarCRM Agent 99 (in place) iMIS (only in one area of University) Talisma

d. for CRM analytics SugarCRM Microsoft Analytics


Appendix 5 – The Four Cultures (Competing Values Framework)

ClanPersonal, like a familyMentoring, facilitating, nurturingTeamworkConsensus, and participationDevelopment of human resourcesTeamwork, concern for people

AdhocracyEntrepreneurial

Risk takingInnovative

FreedomIndividuality

Unique / new products and services

HierarchyControlled and structured Coordinating, organizingEfficiency orientedSecurity, conformityPredictable, dependableLow cost

MarketCompetitive

Achievement orientedNo-nonsense, aggressive

Results orientedWinning in the marketplaceOutpacing the competition

ClanPersonal, like a familyMentoring, facilitating, nurturingTeamworkConsensus, and participationDevelopment of human resourcesTeamwork, concern for people

AdhocracyEntrepreneurial

Risk takingInnovative

FreedomIndividuality

Unique / new products and services

HierarchyControlled and structured Coordinating, organizingEfficiency orientedSecurity, conformityPredictable, dependableLow cost

MarketCompetitive

Achievement orientedNo-nonsense, aggressive

Results orientedWinning in the marketplaceOutpacing the competition


Appendix 6 - Industry Engagement and Commercialisation CRM needs and issues The following information was provided by Rod Hill, Pro Vice Chancellor Industry Engagement and Commercialisation:

CRM (Contact Management) Requirements

• Name of the Monash person who has initiated the business contact (not conference contact) and their role at Monash and to which Faculty, Department Unit etc they belong(these entries need only be made over a certain size of negotiation TBD)

• Starting date of interaction

• Discipline or cross discipline area under discussion

• Type of discussion; eg Research – Contract, Grant, Donation etc, or Education – Scholarships, internships, sponsorship etc, or a combination or other

• Name of the Industry Contact; their title and role in the organisation, and(if available) the name of that organisation’s R&D decision maker and the industry contact’s position in relation to the organisational R&D decision maker

• A link to all current discussions being held with that organisation,

• A link to all past and present projects with that organisation and

• Whether the negotiation is successful, pending, unsuccessful, or on-going and value of deal

• A reporting function that can report on such things as number of interactions with a particular organisation, success rate of interactions etc(reports would need to be thought through)

• For casual contacts (eg; Conferences) - a record of industry contacts via relevant discipline area

Issues to overcome:

Internal (Monash)

Business intelligence

Acceptance of the value of multi-discipline offerings

Poor communication between researchers; multiple points of engagement

Culture of competition between schools, departments and faculties

Culture of academic freedom, and personal ownership of contacts

Unclear levels of authority and delegation

Poor historical data on contacts, interactions, revenues

Poor uptake of centralised systems, even if implemented

No clear point of contact for specific organisations, ie named account manager

No coordination or strategy for engagement, ie account plan

No overall management plan for opportunities, ie pipeline management


No clear agreement on the value proposition across Monash, specific faculties, or by Customer

Need to move from a transaction focus to a relationship focus over time

Need to move from “inside-out” relationship management to “outside-in”

External (Customers)

Constantly changing contact points

Competition between internal R&D groups

Need to coordinate multiple points of engagement

Movement between companies of key contacts

Inability to link our capabilities to the customer’s strategy, needs and issues

Need for world class capability in the research provider

No loyalty to Australian research providers

Short term transaction / project focus


Appendix 7 – CRM Program Cycle – Key Activities. Key Activity Objective

Establish Project Team, Charter & Education

Establish Project team resources. Develop a final Project Charter (Scope Definition) to guide the execution of the project. Develop understanding of CRM principles.

Business Process Definition

Document current business process workflows

Identify required processes & key opportunities for inclusion in system design.

Business Process Refinement Workshops

Design desired business processes and workflows. Preliminary definition of data requirements

Process Gap Analysis Workshops

Identify gaps between desired processes and software applications.

Determine how gaps will be resolved and commence the development of detailed design specifications for the CRM applications and the supporting policy/procedure & organisational change requirements.

System Design (incl. Prototype)

Prepare and present preliminary system design including user interface. Validate system design prior to commitment of technical development. Refine, review and finalise functional and technical specification and overall scope to be implemented.

System Development Configure and integrate the CRM application based on agreed functional and technical specifications.

Develop required business changes including policy, procedures and work practices.

Develop data migration, end user training and SIT & UAT plans, detailed approaches and scripts.

System Acceptance Perform comprehensive system testing to confirm design, functionality, data conversion etc.

Achieve end user and technical “sign-off”.

Confirm ability to go-live with pilot.

Pilot Confirm system operation in Live Field test prior to company wide rollout. (Implement system for limited number of users to validate use. Refine critical system issues if necessary)

Rollout Production rollout for all user groups. Validate rollout process and assess initial customer reaction. Launch logical groups of users on a supportable basis with regards initial training, in-field support and technical capacity.

Post Implementation Review

Evaluate project outcomes, including achievement of business objectives, user acceptance and on-going training/support needs revised or new functional or infrastructure requirements.

Appendix 8 – Current Customer Systems Map Current Systems Individual (Lifecycle) Organisation

Prospect (Aust.)

Prospect (Int’l) UG Student GPG Student HDR Student Alumni Indiv. Donor Suspect/ Prospect

Corporate Govt Partner

Marketing Planning MS Word (partial)

MS Word (partial)

MS Word (partial)

Campaign Mgmt UniCRM (partial)

UniCRM Advance / RE

Advance / RE

Event Mgmt UniCRM (partial)

UniCRM UniCRM (partial) UniCRM (partial) UniCRM (partial) Advance / RE

Advance / RE Int’l DB (partial)

Pipeline Mgmt

Enquiry / Lead Mgmt UniCRM (partial)

UniCRM TBA (project) Advance / RE

Advance / RE S/sheets & email

S/sheets & email

S/sheets & email

S/sheets & email

Opportunity Mgmt

Contact / Account Mgmt UniCRM (partial)

UniCRM (partial)

Callista (partial) Callista (partial) Callista (partial) Advance / RE


Salesforce (partial)


Int’l DB (partial)

Application / Admission N/A N/A Callista eAdmissions

Callista eAdmissions

Callista eAdmissions

N/A N/A N/A N/A N/A N/A

Enrolment N/A N/A Callista Callista Callista / N/A N/A N/A N/A N/A N/A

Course Management N/A N/A Callista Callista Research Master N/A N/A N/A N/A N/A N/A

Billing / Donation / Funds Processing

N/A N/A Callista / SAP Callista / SAP Callista / SAP SAP Advance / RE N/A

Activity Management S/sheets & email

S/sheets & email

S/sheets & email S/sheets & email S/sheets & email Advance / RE




Int’l DB (partial)

Service Enquiry / Case Mgmt RightNow (partial)

RightNow (partial)

RightNow (partial)

Self-Service (Portal) RightNow, WES RightNow, WES WES

Complaint / Feedback Mgmt

Customer Analysis & Segmentation

Callista (partial) Callista (partial)

Incentives & Measurement UniCRM (partial)

UniCRM (partial)

KPIs (partial) KPIs (partial) KPIs (partial) RM Advance / RE

Advance / RE


Appendix 9 – Program Schedule (First 18 months) ID Task Name Duration

1 Monash CRM Program 390 days

2 Phase 0 - Foundation 130 days

3 Governance/Strategy 130 days

4 Establish Project Structures 20 days

5 Team Education (CRM in HE, CRM Governance) 20 days

6 Develop Phase 1 Charter 10 days

7 Technology 120 days

8 CRM Evaluation & Selection & Contracts 120 days

9 Technology Audit 40 days

10 Data Audit 40 days

11 Process 50 days

12 Scope & Prioritise Customer related processes 10 days

13 Refine core processes for demonstation scenarios 20 days

14 Customer Experience Design 20 days

15 Validate & Prioritise Customer Interaction models 20 days

16 People 40 days

17 Develop Commuincations Plan 20 days

18 CRM In HE Overview Education 20 days

19

20 Phase 1 - Establish CRM Platform 260 days

21 Governance/Strategy 60 days

22 Establish Customer Council 20 days

23 Develop Value based Segmentation Model 40 days

24 Review, define and pubish Monash Value Proposition 40 days

25 Technology 260 days

26 Core CRM capability and Faculty Pilot 230 days

27 Specify & Build 90 days

28 Industry Engagemnent & Commercialisation 90 days

29 External Affairs 90 days

30 Gap Year Passport Project 90 days

31 Callista Integration/Student Admin 90 days

32 Faculty Pilot 90 days

33 Implement 70 days

34 Test 20 days

35 Pilot 40 days

36 Go-lIve 10 days

37 Support & Review 70 days

38 Support 20 days

39 Post Implementation Review 10 days

40 Embed Implementation and Prepare for next phase 40 days

41 Customer Information & Measurement 100 days

42 Develop Customer Information Plan 60 days

43 Review Business Intelligence Model and infrastructure 40 days

44 Build CIP Metric reports 20 days

45 Process 120 days

46 Business Process Refinement 30 days

47 Document As-Is Business Processes (Phase 1) 10 days

48 Business Process Refinement Workshops 20 days

49 Customer Experience Design 120 days

50 Develop Customer Lifecycle Model (s) 60 days

51 Prospect/Student/Alumni 20 days

52 Donors 20 days

53 Industry Partners / Research 20 days

54 Research and Define Moments of Truth 60 days

55 Students 40 days

56 Prospects 20 days

57 Alumni 20 days

58 Donors 20 days

59 Industry Partners 20 days

60 People 180 days

61 Customer Management (CM) Competency 100 days

62 Develop CM competency framework 40 days

63 Performance CM competency assessment 60 days

64 Account/Contact Management 80 days

65 Define Account Prioritisation model & Management Methodology 40 days

66 Account Management / Methodology Education 40 days

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

2009


Appendix 10 – Business Case Details 1) Summary

Monash University CRM Program Return on Investment Analysis Prepared by: Customer Connect Australia

Benefit - Cost Summary Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Phase 0 Phase 1 Phase 2 Phase 3

Total Bottom Line Benefits Per Year 0 $0 $2,780,817 $5,561,634 $9,732,859 $13,904,084

Cumulative Benefits, Present Value $0 $0 $2,586,806 $7,399,469 $15,234,037 $25,645,422

Weighted Average Total Costs Per Year $160,000 $1,630,981 $2,485,329 $2,504,579 $1,925,230 $436,129

Cumulative Costs, Present Value $160,000 $1,790,981 $4,102,914 $6,270,208 $7,819,942 $8,146,516

Net Cash Flow -$160,000 -$1,630,981 $295,488 $3,057,055 $7,807,628 $13,467,956Cumulative Net Present Value Cash Flow -$160,000 -$1,790,981 -$1,516,108 $1,129,261 $7,414,094 $17,498,907

Internal Rate of Return 123%

Net Present Value, 5 Years $17,498,907Return on Investment, Present Value, 5 Years 215%

Cumulative Net Present Value Cash Flow

-$5,000,000

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5


2) Benefits Summary

Benefit AnalysisPercent Benefit Achieved Per Year 0% 20% 40% 70% 100%

Business Area Type

Realised Benefit

per year Year 1 Year 2 Year 3 Year 4 Year 5Marketing Cost Benefit $1,514,819 $0 $302,964 $605,928 $1,060,373 $1,514,819

Revenue Benefit $470,302 $0 $94,060 $188,121 $329,211 $470,302Relationship Management Cost Benefit $2,925,000 $0 $585,000 $1,170,000 $2,047,500 $2,925,000

Revenue Benefit $7,422,089 $0 $1,484,418 $2,968,835 $5,195,462 $7,422,089Service Management Cost Benefit $421,875 $0 $84,375 $168,750 $295,313 $421,875

Revenue Benefit $0 $0 $0 $0 $0 $0Admin & Infrastructure Cost Benefit $1,150,000 $0 $230,000 $460,000 $805,000 $1,150,000

Revenue Benefit $0 $0 $0 $0 $0 $0

Total Cost Benefits Per Year $6,011,694 $0 $1,202,339 $2,404,678 $4,208,186 $6,011,694Total Revenue Benefits Per Year $7,892,390 $0 $1,578,478 $3,156,956 $5,524,673 $7,892,390Total Benefits Per Year $13,904,084 $0 $2,780,817 $5,561,634 $9,732,859 $13,904,084Total Benefits, Present Value $0 $2,586,806 $4,812,663 $7,834,568 $10,411,385Cumulative Benefits, Present Value $0 $2,586,806 $7,399,469 $15,234,037 $25,645,422

Benefits by Area by Year

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

Year 1 Year 2 Year 3 Year 4 Year 5

Service Management

Revenue Benefit

Service Management

Cost Benefit

Relationship

Management RevenueBenefit

RelationshipManagement Cost

Benefit

Marketing RevenueBenefit

Marketing Cost Benefit

Annual Benefits by Initiative

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

Cost Benefit Revenue Benefit

Contact Centre & Portals

Analytics & PerformanceMeasures

Account_ ContactManagement

Marketing Automation

CustomerKnowledgebase


3) Cost Summary

Cost Analysis

Cost Schedule (Oracle) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Software Purchase $0 $209,657 $735,000 $562,500 $0 $0

SW Maintenance $0 $44,124 $188,129 $339,879 $436,129 $436,129

Hardware & Infrastructure $0 $35,000 $45,000 $45,000 $45,000 $0

Integration $0 $200,000 $300,000 $300,000 $300,000 $0

Vendor Estimate; Integration and Implementation $0 $160,000 $260,000 $320,000 $271,729 $0

Implementation Contingency $0 $40,000 $50,000 $80,000 $65,173 $0

CRM Consulting, Education $150,000 $245,000 $200,000 $150,000 $100,000 $0

Project Management $150,000 $150,000 $150,000 $150,000 $0Travel and Sundry $10,000 $30,000 $40,000 $40,000 $40,000 $0

Staff Backfill $517,200 $517,200 $517,200 $517,200

Total Costs Per Year $160,000 $1,630,981 $2,485,329 $2,504,579 $1,925,230 $436,129

Total Costs, Present Value $160,000 $1,630,981 $2,311,933 $2,167,293 $1,549,735 $326,573Cumulative Costs, Present Value $160,000 $1,790,981 $4,102,914 $6,270,208 $7,819,942 $8,146,516

Average weighting factor 100%

Vendor Comparison over 5 Years

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

Oracle Streamline

Contingency

Implementation

Maintenance

Software

Vendor Comparison Year 1

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Oracle Streamline

Contingency

Implementation

Maintenance

Software


4) Cost Worksheet (External)

Option 1 Cost Estimates (Oracle) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Software Purchase $219,313 $1,200,000 $0 $0 $0

SW Maintenance $48,249 $312,257 $312,257 $312,257 $312,257

Hardware & Infrastructure $50,000 $50,000 $50,000 $50,000 $0

Integration $200,000 $300,000 $300,000 $300,000 $0

Vendor Estimate; Integration and Implementation $200,000 $400,000 $400,000 $303,458 $0

Implementation Contingency $20,000 $40,000 $40,000 $30,346 $0

CRM Consulting, Education $175,000 $200,000 $150,000 $100,000 $0

Project Management $100,000 $150,000 $150,000 $150,000 $0Travel and Sundry $40,000 $40,000 $40,000 $40,000 $0

Total Costs Per Year $1,052,562 $2,692,257 $1,442,257 $1,286,061 $312,257

Total Costs, Present Value $1,052,562 $2,504,425 $1,248,032 $1,035,228 $233,818

Cumulative Costs, Present Value $1,052,562 $3,556,987 $4,805,019 $5,840,247 $6,074,065

Option 2 Cost Estimates (Streamline) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Software Purchase $200,000 $270,000 $1,125,000 $0 $0

SW Maintenance $40,000 $64,000 $367,500 $560,000 $560,000

Hardware & Infrastructure $20,000 $40,000 $40,000 $40,000 $0

Integration $200,000 $300,000 $300,000 $300,000 $0

Vendor Estimate; Integration and Implementation $120,000 $120,000 $240,000 $240,000 $0

Implementation Contingency $60,000 $60,000 $120,000 $100,000 $0

CRM Consulting, Education $175,000 $200,000 $150,000 $100,000 $0

Project Management $100,000 $150,000 $150,000 $150,000 $0

Travel and Sundry $20,000 $40,000 $40,000 $40,000 $0

Total Costs Per Year $935,000 $1,244,000 $2,532,500 $1,530,000 $560,000

Total Costs, Present Value $935,000 $1,157,209 $2,191,455 $1,231,590 $419,328

Cumulative Costs, Present Value $935,000 $2,092,209 $4,283,664 $5,515,254 $5,934,582


5) Benefits Worksheets

Marketing (incl. Advancement) No of people 80

Average Salary $ 80,000

On cost 25% REALISED $ 1,514,819 $ 470,302

Proportion of time accounted for 40% People Cost 8,000,000$ TOTAL 3,029,638$ 627,069$

Initiative / Opportunity

Time

Factor

Estimated

Opportunity Rationale

Estimated

Improvement Cost Saving

Margin

Enhancement

Customer Knowledgebase $ 480,000 $ -

Proportion of time spent filing, managing and retrieving paper-

based customer information. Proportion of time spent

transcribing customer data, creating and maintaining

spreadsheets or stand-alone databases 10% $ 800,000

Reduce manual information handling time

through automation of info flow between

departments, removal of duplication, and ease of

retrieval. Remove data transcription, stand-alone

electronic documents and databases 20% $ 160,000 Proportion of time spent correcting errors due to manual data

handling 5% $ 400,000 Removal of transcription and duplication will

remove the opportunity for handling errors 80% $ 320,000

Marketing Automation $ 2,189,638 $ 627,069

Proportion of time spent communicating with other

departments/faculties via telephone, email, list validation etc 5% $ 400,000

Automate marketing communications using

workflow and shared data, centralised list

generation and common campaign/event

calendar 80% $ 320,000 Proportion of time spent manually creating and maintaining

account plans, Monash brochure materials, market information

etc 5% $ 400,000 Automation tools for content management, re-

use, and distribution will reduce manual effort 20% $ 80,000

Total marketing spend on campaigns, across broad audience $ 29,827,300

Reduce cost of marketing campaigns currently

distributed to low probability targets, through

tighter segmentation on a relevance / value basis,

and feedback. 3% $ 894,819 Total marketing spend on campaigns, across multiple channels

without visibility and /or co-ordination across departments and

faculties $ 29,827,300

Reduce cost of marketing campaigns through

improved and co-coordinated leverage of low-cost

channels (email, web, mail) 3% $ 894,819

Margin Lift - Acquisition - driven by marketing spend; increase

effectiveness through more specific targeting $ 627,069

Better targeting to receptive customer segments

will reduce "noise" and increase the effect of the

message, increasing the number of campaigns,

conversion rate and impact on revenues. 100.0% $ 627,069

Contact Management $ - $ -

$ -

Analytics & Performance Measures $ 240,000 $ -

Proportion of time spent performing analysis using manual or

stand-alone tools 10% $ 800,000

Centralised, cross-channel analytics will

streamline access to information, and accelerate

the learning process 30% $ 240,000

Contact Centre and Portals $ 120,000 $ -

Proportion of time spent in manual telephone and email

handling with customers and other divisions and faculties 5% $ 400,000

Integrated contact centre capability and

complaints management will allow more efficient

handling and recording of customer

communications 30% $ 120,000


Contact / Account

Management No of people 1000


On cost 25% REALISED $ 2,925,000 $ 7,422,089

Proportion of time accounted for 28% People Cost 100,000,000$ TOTAL 5,850,000$ 9,896,118$


Time

Factor

Estimated


Estimated


Margin

Enhancement

Customer Knowledgebase $ 3,400,000 $ -

Proportion of time spent filing, managing and

retrieving paper-based customer information 5% $ 5,000,000



departments, removal of duplication, removal of

paperwork, and ease of retrieval 20% $ 1,000,000

Proportion of time spent transcribing customer

information, creating and maintaining

spreadsheets or stand-alone databases 5% $ 5,000,000 Remove data transcription, stand-alone electronic

documents and databases 20% $ 1,000,000 Proportion of time spent correcting errors due to

manual data handling 2% $ 2,000,000 Removal of transcription and duplication will


Proportion of time spent manually managing

contact details (addresses, relationships, contact

records) 5% $ 5,000,000

A central and accessible Customer

knowledgebase capability will provide customer

contact details quickly, removing the need for

manual work-arounds. 20% $ 1,000,000

Marketing Automation $ 250,000 $ -

Proportion of time spent communicating with

marketing via email or telephone 1% $ 1,000,000

Automate marketing communications using

workflow and shared data, centralised list

generation and common campaign/event

calendar 25% $ 250,000

Contact Management $ 600,000 $ 9,896,118

Proportion of time spent in ineffective contact

management activities, due to poor targeting or

low value customers 1% $ 1,000,000

Filtering and targeting of customer & marketing

information to suit individual customers will make

contact management more effective 20% $ 200,000 Proportion of time spent in the office, or

performing administration, due to manual forms

and processes 2% $ 2,000,000

Automation of information and work flows will

reduce the amount of time spent with paperwork

and meetings. 20% $ 400,000

Revenue Lift, Development (per READ Table) $ 3,384,037

Increased access and openness to customer

contact management initiatives based on higher

levels of satisfaction and differentiation on

service, resulting in higher % of students electing

to extend studies 100.0% $ 3,384,037

Revenue Lift, Retention (per READ Table) $ 4,069,921

Segment or customer specific plans, activities and

campaigns aimed at ensuring high relevance,

engagement and satisfaction with existing

students. Improved consistency of interactions

and improved sensing capabilities to recognise

and manage at risk students (such as complaints

management) 100.0% $ 4,069,921 Revenue Lift, Development Donors & Alumni (per

READ table) $ 92,754 100.0% $ 92,754

Revenue Lift, Retention - Donors and Alumni (per

READ table) $ 23,783

Segment or customer specific plans, activities and

campaigns aimed at ensuring high relevance,

engagement and satisfaction with existing alumni

and donors. Improved consistency of interactions

and improved sensing capabilities to recognise

and manage at risk donors (such as complaints

management) 100.0% $ 23,783

Revenue Lift - Competitive Research Grants $ 106,893,000

Improved Account Management and Opportunity

Management practices and tools. Improved

understanding of customer interests and co-

coordinated management across faculties and

divisions 2.0% $ 2,137,860

Revenue Lift - Bequests/Foundations (Research) $ 9,388,100

Improved Account Management and Opportunity

Management practices and tools. Improved

understanding of customer interests and co-

coordinated management across faculties and

divisions 2.0% $ 187,762

Analytics & Performance Measures $ 1,000,000 $ -

Proportion of time spent performing analysis

using manual or stand-alone tools 5% $ 5,000,000



the learning process 20% $ 1,000,000


Proportion of time spent in manual telephone

and email handling with customers 2% $ 2,000,000

Integrated contact centre capability and

complaints management will allow more efficient

handling and recording of customer

communications 30% $ 600,000

Increase MU share from

8.1% to Go* Average 9.2.

(Top = 12%)

Increase MU share from 8.3% to

Go8 Average of 10.1% (Top =

18.3%)


Contact Centre No of people 50


On cost 25% REALISED $ 421,875 $ -

Proportion of time accounted for 43% People Cost 3,750,000$ TOTAL 843,750$ -$


Time

Factor

Estimated


Estimated


Margin

Enhancement

Customer Knowledgebase $ 693,750 $ -


based customer information 3% $ 112,500




retrieval 50% $ 56,250 Proportion of time spent transcribing customer information,

creating and maintaining spreadsheets or stand-alone

databases 10% $ 375,000 Remove data transcription, stand-alone electronic

documents and databases 50% $ 187,500 Proportion of time spent correcting errors due to manual data

handling 10% $ 375,000 Removal of transcription and duplication will

remove the opportunity for handling errors 80% $ 300,000 Proportion of time spent communicating with other Monas staff

via telephone, email, etc 5% $ 187,500 Automate marketing communications using

workflow and shared data 30% $ 56,250 Proportion of time spent adminstering logins, passwords,

integration, data cleanliness, backups etc of customer

databases 5% $ 187,500

Centralised systems will reduce much of the

duplication of effort in administering the current

multitude of customer databases 50% $ 93,750

$ -








Proportion of time spent transcribing information, and

managing, data cleanliness, backups etc of web sites & contact

centrew. 5% $ 187,500


duplication of effort in administering and co-

ordinating the current disparate contact channels. 50% $ 93,750


Admin & Infrastructure No of people 200


On cost 25% REALISED $ 1,150,000 $ -

Proportion of time accounted for 32% People Cost 15,000,000$ TOTAL 2,300,000$ -$


Time

Factor

Estimated


Estimated


Margin

Enhancement

Customer Knowledgebase $ 1,700,000 $ -


based customer information 3% $ 450,000




retrieval 50% $ 225,000 Proportion of time spent transcribing customer information,

creating and maintaining spreadsheets or stand-alone

databases 2% $ 300,000 Remove data transcription, stand-alone electronic

documents and databases 50% $ 150,000 Proportion of time spent correcting errors due to manual data

handling 10% $ 1,500,000 Removal of transcription and duplication will


Proportion of time spent communicating with other Monash

staff via telephone, email, etc 5% $ 750,000

Central knowledgebase of all customer

information supported by workflow and shared

data 30% $ 225,000 Proportion of time spent administering logins, passwords,

integration, data cleanliness, backups etc of customer

databases 2% $ 300,000


duplication of effort in administering the current

multitude of customer databases 50% $ 150,000

Costs Monash incur by running multiple “mini-crm” systems in

different departments and faculties $ 650,000

Establish a foundation CRM which eliminates the

ongoing operating costs of the mini CRM systems

as these are replaced/assimilated. 100% $ 650,000








Proportion of time spent transcribing information, and

managing, data cleanliness, backups etc of web sites & contact

centre. 5% $ 750,000


duplication of effort in administering and co-

coordinating the current disparate contact

channels. 50% $ 375,000


6) READ Summary

Current

Revenue Retention Acquition Development Total Margin Nett Contribution

Domestic Undergraduate $318,432,638 $14,284,625 $1,576,242 $12,737,306 $28,598,172 17% $4,861,689International Undergraduate $139,107,132 $6,259,821 $695,536 $5,564,285 $12,519,642 17% $2,128,339Domestic GPG $19,534,565 $355,889 $191,439 $195,346 $742,673 17% $126,254International GPG $59,987,476 $1,079,775 $587,877 $599,875 $2,267,527 17% $385,480HDR $53,853,996 $969,372 $266,577 $538,540 $1,774,489 17% $301,663Fee Paying Undergraduate $21,031,685 $388,155 $104,107 $105,158 $597,420 17% $101,561Fee Paying GPG $33,118,131 $603,079 $163,935 $165,591 $932,604 17% $158,543Donors & Alumni $13,323,900 $139,901 $102,927 $545,614 $788,442 17% $134,035

Total $658,389,523 $24,080,616 $3,688,639 $20,451,714 $48,220,969 $8,197,565

READ Summary

Appendix 11 – Request for Information

Background

An initial survey of CRM vendors indicated that a number of CRM vendors could satisfy Monash high level business and commercial objectives. A long list of candidates for the RFI was further developed based on overall business and technical requirements and included vendors who offered “buy” or “Software as a Service” (SaaS) solution offerings.

Several vendors offer a hosted approach that permits access to their standard or complete solution along with a migration path should Monash elect to bring the application in-house in the future.

Approach

The primary objective of the RFI was to provide Monash with an understanding of the capabilities of solution providers in Australia and assist in the preparation of baseline business case costs

The approach taken to the Market survey involved the development of a Request For Information that was based on the general requirements identified:

• during the conduct of interviews with Monash management, operational and technical staff and

• from a review of Monash technical environment and other documentation

The RFI was issued to the following vendors :

Oracle, Salesforce.com, Sage, SAP, Onyx, Talisma, SugerCRM, Blackbaud, Microsoft, eStreamline, StayinFront, NetSuite, RightNow, ASI,

Each RFI submission was evaluated against a set of generic scoring criteria that covered the following:

• business functional capabilities such as marketing, relationship management and service applications,

• vendor strength including, local presence and Higher Education experience

• technical considerations including database compatibility, integration standards & ease of customisation

• cost analysis by category and total cost of ownership over 3 & 5 years and

• implementation & support capabilities.

General Findings

Eight of the fourteen RFI candidates responded with formal submissions.

The respondents submitted proposals from different perspectives, and with differing cost models. Furthermore, the vendors provided widely varying estimates for implementation effort and costs or did not provide details at all. Most did not include costs for database licences.

For these reasons, we have provided our best estimates of the true capabilities and costs of the respective vendors in the following analysis. It should be recognised that at this early stage, the evaluation cannot be considered precise. Further evaluation and analysis of the shortlist vendors will remove a lot of this uncertainty.

Results and Recommendations

The results and high level recommendations are summarised in the following tables and graphs:

� Scoring summary and recommendation by vendor & category

� Cost analysis detail spreadsheet

� Overall vendor score summary graph

� 5 Year Cost Comparison graph

� Vendor Score Detail table


Vendor Solution

*O

fferi

ng

Hoste

d I

n

Ven

dor

Score

Bu

sin

ess F

un

cti

on

al

Score

Tech

nic

al S

core

Serv

ices S

core

Tota

l Score 5 Year TCO

(Buy)

5 Year TCO

(Hosted)

Recommendation Rationale / Notes

Max 75 275 100 50 500

StayinFront StayinFront CRM Buy 33 182 75 35 325.0 $1,688,224 $1,975,128 Investigate No HE credentials

RightNow RightNow CRMSaaS

47 178 70 25 320.0 $2,631,283 $4,018,805 Do not proceedHigh 10 year TCO, Integration and configuration limits

Oracle PeopleSoftBuy

67 208 95 40 410.0 $3,659,632 $4,284,146 Include in Evaluation

Program Functional coverage. HE Experience

Sage Sage CRM Buy 0 0 0 0 0.0 $0 $0 Do not proceed Did not respond

SugarCRM SugarCRM Host 30 0 0 20 50.0 $0 $0 Late response (to be completed)

Microsoft MS DynamicsBuy

60 128 65 40 293.0 $999,824 $1,139,824 Investigate Aggressive pricing & Oakton's expereince in HE v's

limited functionality

Streamline UniCRMBuy



Blackbaud BBE CRMBuy

55 192 72.5 30 349.5 $3,900,000 $4,500,000 Include in Evaluation


Talisma Buy 0 0 0 0 0.0 $0 $0 Do not proceed Did not respond

SAP SAP CRMBuy


Program Functional coverage. Agreesive pricing

Salesforce.com SFDC SaaS Do not proceed Did not respond

Advance Solutions iMIS Buy Do not proceed Did not respond

Onyx Onyx CRM Buy Do not proceed Did not respond

NetReturn NetSuite SaaS Do not proceed Did not respond

CATEGORY Max.

Score

Weighting

(%) Score

Wgt'd

Score Score

Wgt'd

Score Score

Wgt'd

Score Score

Wgt'd

Score Score

Wgt'd

Score Score

Wgt'd

Score Score

Wgt'd

Score Score

Wgt'd

Score Score

Wgt'd

Score Score

Wgt'd

Score

VENDOR 75.0 15.0 33.0 47.0 67.0 0.0 30.0 60.0 58.0 55.0 0.0 43.0

Financial/Organisation Strength 2.0 4.0 8.0 4.0 8.0 5.0 10.0 0.0 2.0 4.0 4.0 8.0 3.0 6.0 4.0 8.0 0.0 5.0 10.0

HE Experience 8.0 0.0 0.0 3.0 24.0 4.0 32.0 0.0 2.0 16.0 4.0 32.0 4.0 32.0 4.0 32.0 0.0 1.0 8.0 Local presence 5.0 5.0 25.0 3.0 15.0 5.0 25.0 0.0 2.0 10.0 4.0 20.0 4.0 20.0 3.0 15.0 0.0 5.0 25.0

BUSINESS FUNCTIONAL 275.0 55.0 182.0 178.0 208.0 0.0 0.0 128.0 198.0 192.0 0.0 198.0

Functional Areas

Marketing 10.0 4.0 40.0 4.0 40.0 4.0 40.0 0.0 0.0 3.0 30.0 4.0 40.0 4.0 40.0 0.0 4.0 40.0

Events 2.0 4.0 8.0 0.0 0.0 4.0 8.0 0.0 0.0 2.0 4.0 4.0 8.0 4.0 8.0 0.0 4.0 8.0

Service 12.0 3.0 36.0 5.0 60.0 4.0 48.0 0.0 0.0 3.0 36.0 4.0 48.0 4.0 48.0 0.0 4.0 48.0 Donation Processing 2.0 1.0 2.0 0.0 0.0 4.0 8.0 0.0 0.0 0.0 0.0 3.0 6.0 5.0 10.0 0.0 3.0 6.0

Opportunity Mngt 4.0 4.0 16.0 2.0 8.0 4.0 16.0 0.0 0.0 2.0 8.0 4.0 16.0 4.0 16.0 0.0 4.0 16.0 Contact/Acct Mngt 10.0 4.0 40.0 3.0 30.0 4.0 40.0 0.0 0.0 3.0 30.0 4.0 40.0 4.0 40.0 0.0 4.0 40.0

Student Admin 2.0 0.0 0.0 0.0 0.0 4.0 8.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Self Service 10.0 4.0 40.0 4.0 40.0 4.0 40.0 0.0 0.0 2.0 20.0 4.0 40.0 3.0 30.0 0.0 4.0 40.0

Segmentation/Knowledge Mngt/Other 3.0 2.0 6.0 2.0 6.0 4.0 12.0 0.0 0.0 3.0 9.0 4.0 12.0 3.0 9.0 0.0 4.0 12.0

TECHNICAL 100.0 20.0 75.0 70.0 95.0 0.0 0.0 65.0 75.0 72.5 0.0 95.0

Architecture (Web, Client Server) 5.0 4.0 20.0 5.0 25.0 5.0 25.0 0.0 0.0 4.0 20.0 5.0 25.0 4.0 20.0 0.0 5.0 25.0

Db/Operating System 5.0 3.0 15.0 5.0 25.0 5.0 25.0 0.0 0.0 2.0 10.0 2.0 10.0 2.0 10.0 0.0 5.0 25.0 Integration 5.0 4.0 20.0 2.0 10.0 5.0 25.0 0.0 0.0 4.0 20.0 4.0 20.0 4.0 20.0 0.0 5.0 25.0

Ability to customise / configure 5.0 4.0 20.0 2.0 10.0 4.0 20.0 0.0 0.0 3.0 15.0 4.0 20.0 4.5 22.5 0.0 4.0 20.0

SERVICES 50.0 10.0 35.0 25.0 40.0 0.0 20.0 40.0 25.0 30.0 0.0 35.0

Implementation

methodology/understanding 5.0 4.0 20.0 3.0 15.0 4.0 20.0 0.0 2.0 10.0 4.0 20.0 2.0 10.0 3.0 15.0 0.0 4.0 20.0

Resources (Number, skill, experience) 5.0 3.0 15.0 2.0 10.0 4.0 20.0 0.0 2.0 10.0 4.0 20.0 3.0 15.0 3.0 15.0 0.0 3.0 15.0

Total 500.0 100.0 325.0 320.0 410.0 0.0 50.0 293.0 356.0 349.5 0.0 371.0

Streamline SAP Blackbaud StayinFront RighNow Oracle Sage

Microsoft

Oakton Talisma SugarCRM


StayinFrontSalesforce.comPeopleSoft Siebel NetSuite Pivotal Accpac RightNow Saleslogix

## 320 410 0 50 293 356 0 #REF!

StayinFrontSalesforce.comPeopleSoft Siebel NetSuite Pivotal Accpac RightNow Saleslogix

## 1139.824 #REF! 0 1855 #REF! 0 4018.805 4284.146Score Summary

325.0 320.0

410.0

0.0

50.0

293.0

356.0 349.5

0.0

371.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

StayinFront

RightNow

Oracle

Sage

SugarCRM

Microsoft

Streamline

Blackbaud

Talisma

SAP

Score

Costs over 5 years

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

StayinFront

RightNow

Oracle

Sage / Accpac

Sugar CRM

Microsoft

Streamline

Blackbaud

Talisma

SAP

$000

Year 1 Cost 5 Year TCO 10 Year TCO


Vendor Cost basis Model Software

PA Usage

Charge Implemt'n Training

Total

Fixed Mtce Support

Total

Variable

pa

Year 1

Total

3 Year

TCO

5 Year

TCO

10 Year

TCO Notes

StayinFront Named users as per RFI.

Use of web application for

conatct management Buy 763,780 - 450,000 44,088 1,257,868 $120,696 $22,756 $143,452 $1,401,320 $1,688,224 $1,975,128 $2,692,388

RightNow To be confirmed SaaS - 693,761 500,000 50,000 550,000 $124,753 $693,761 $1,243,761 $2,631,283 $4,018,805 $7,487,610

Oracle Pricing based on overall

Business metrics Buy 1,419,313 - 1,200,000 103,548 2,722,861 $312,257 $0 $312,257 $3,035,118 $3,659,632 $4,284,146 $5,845,431

Support included in

maintenance fee

Sage / Accpac Buy - - $0 $0 $0 $0 $0 $0

Sugar CRM

Buy - - $0 $0 $0 $0 $0 $0

Vendor would not commit

to implementation and

training estimates.

Microsoft 700 users Buy 202,524 - 534,000 53,300 789,824 $70,000 $0 $70,000 $859,824 $999,824 $1,139,824 $1,489,824

Implementation costs are

low.

Streamline 5000 users Buy 1,600,000 - 600,000 50,000 2,250,000 $560,000 $0 $560,000 $2,810,000 $3,930,000 $5,050,000 $7,850,000

Support included in

maintenance fee

Blackbaud Pricing based upon

historical knowledge /

Enterprise Agreement Buy 1,500,000 - 1,500,000 - 3,000,000 $300,000 $0 $300,000 $3,300,000 $3,900,000 $4,500,000 $6,000,000

Talisma Buy - - $0 $0 $0 $0 $0 $0

SAP Industry Licence Buy 500,000 - 750,000 180,000 1,430,000 $85,000 $0 $85,000 $1,515,000 $1,685,000 $1,855,000 $2,280,000

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