April 12, 2023 1

CRM Implementation Strategy in a Public Research Centre

Laurent Bravetti

Centre de Recherche Public Henri Tudor

Laurent.bravetti@tudor.lu

IFKAD 2010 - Matera

April 12, 2023 2

Summary

CRM – definitions Key Success Factors for CRM Schemes CRM Scheme Implementation Strategy in CRP Henri

Tudor Limitations and further research

April 12, 2023 3

CRM- Definitions

IFKAD 2010 - Matera

April 12, 2023 4

CRM-Definitions

Many authors try to define CRM.

CRM is defined as :a « management approach that enables organizations to identify, attract and increase retention of profitable customers by managing the relationships with them » [Hobby99] a « comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for company and customers » [Parvatyiar01]

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 5

Litterature review

Two litterature’s rewiews :[Ngai05]

A classification in fifth general category :- General and managerial- Marketing- Sales- Support- IT

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 6

Litterature review

Two litterature’s rewiews :[Romano 07]

A classification based on the different phases of CRM lifecycle :- Adoption- Acquisition- Implementation- Usage- Maintenance

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 7

A concept

CRM

Strategy Organisation IT

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 8

Why failures?

If failures arrive :

Could key success factors be generic? What are key success factors? Is-it possible to define a model that

guarantee a maximum success?

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

70% of the implementation projects failed.

(Gartner 03)

April 12, 2023 9

Key success factors for CRM schemes

IFKAD 2010 - Matera

April 12, 2023 10

Key Success Factors for CRM Schemes

We made a litterature review based on 25 journals of reference in marketing and IT areas.

We made an exploration of the summaries since 1997.

We selected papers in reference of CRM implementation to illustrate our classification.

4 major factors emerged.

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 11

The 4 key success factors

- Resistance to change : one of the barrier of organisational or IT new project

- Co-alignment : impact of external and internal variables on CRM success

- Market orientation approach : necessary but not sufficient condition

- Technological maturity : the complex one which mixes human and IT aspects

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 12

Resistance to change

Change arise due to disruption of habit, feelings of insecurity, fear of economic penalties or fear of unknown. With CRM implementation, many things change in a company :

- new strategy- new organisation- new IT

CRM is considered as a new way of life, it’s a paradigm change for a company. CRM implementations needs that people shares data on customers. Thats means should share knowledge

about customers, that means a risk to lose power or authority. A resistance to change could come with the fear of disconnection with the rest of the company.

Lewin 47 Lawrence 54 Van de ven 95

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 13

Resistance to change

[Zahrnt 02] : « a failure is linked with the classic change management problems »

[Payne 06] : « companies need a substantial organisational and cultural change. A critical dimension of any large CRM, therefore, is an effective change management programme »

[Wikström 04] : « in a case study, implementation of a new CRM system had been a major change event »

[Hewson 99] [Corner02]: « Two risks are directly linked with resistance to change : system user resists to change and the speed of change is high »

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 14

Resistance to change

[Xu02] : « employee’s resistance to change is one of the major risks associated with CRM implementation »

[Pries 04] : « two major problems : employee’s unwillingness to co-operate and senior’s management unwillingness to co-operate »

[Kale 05][Chen 03] : « successful change management programs prepare the organisation to accept correctly and implement CRM »

[Bohling 06] : « resistance to change at various level of the organisation is hurdles in CRM implementation »

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 15

Co-alignment

Burn 61 Venkatraman 84 Venkatraman 90

How and why context and structure of an organisation must fit together if it performed well?

Environnement has a clear impact on CRM implementations : in a growing or stable markets, companies are more focused on products, innovation. In an unpredictable market, companies should be more reactive.

In CRM implementation, organisations should use those external factors and align them with their strategy, organisation and IT.

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 16

Co-alignment[Liu07] : «in a bank case study, business

environnement, customer-oriented view and IT infrastructure must fit to embrace a CRM »

[O’Malley 02] : « a CRM implementation required a fit between managerial and cultural aspects and external factors»

[Reinartz 04] : « a significant interaction between the CRM-compatible organisational alignment and the CRM implementation successful. »

[Roberts 05][Nakata 06] : « alignement between 3 variables (Strategy, organisation and IT) is essential in achieving successful CRM deployment »

[Hart 06] : «a key factor for CRM implementation’s failure is the lake of alignment between business objectives and CRM software»

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 17

Market Orientation Approach

behavioral approach – cultural approach Through a CRM system, a company can create a picture of the costumers by

managing all the data. There is a strong link between organisation and customers through CRM

system that means the more the CRM is well used by collecting data end experiences with customer the more the organization is able to have the best interaction with customers.

Levitt 60 Levitt 69

Narver 90

Webster 89

Kohli 90CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 18

Market orientation approach[Xu 02] : «CRM implementation only works

when it’s supported by teh corporate culture that embraces customer-focused aims »

[O’Malley 02] : « a key success factor is the implementation of customer-centric organisation where the philosophy is mutual benefit, trust, commitment, and dialogue with customers»

[Chalmeta 06] : « CRM refers to a customer-focused business strategy »

[Raman 06] : « customer-centric orientation will enable CRM implementation success»

[Jain 05] : «true success of a CRM program is related to buliding a customer-centric organisation»

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 19

Market orientation approach

[Croteau 03] : « organizations have realised the importance of having a customer-oriented strategy that including a customer knowledge base »

[Chen 03] : « CRM is an entreprise-wide customer-centric business model »

[Plakoyiannaki 02] [Van Bentum 05]: « For a CRM implementation success, a cultural focus on customers is essential »

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 20

IT maturity

A human aspect : the capacity of the human resources to accept and use a new technology (TAM)

A technicological aspect : the capacity of the whole organisation to define, implement, measure, control and improve a new IS (IT project management)

Davis 89 Davis 92

Venkatesh 00 Humphrey 00

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 21

IT maturity

[O’ Malley 02] : « CRM implementation directly depends on the IT maturity of company»

[Ko 08] : « IS maturity is one of the key factor influencing CRM adoption »

[Landry 05]: « some companies may be more accepting technology than others because of theirs preexisting reliance upon technologies, in fact due to their technological maturity»

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 22

IT maturity

[Avlonitis 05] : « TAM model is tested on 240 sales persons »

[Sundaram 07] : « managing the acceptance for CRM systems encourages the use of system »

[Wu 05]: « extended Tam model is a factor to explain the success of CRM implementation but it seems to be incomplete »

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 23

CRM Scheme Implementation Strategy in CRP Henri Tudor

IFKAD 2010 - Matera

April 12, 2023 24

CRM Scheme ImplementationCRP Henri Tudor

Why implement CRM in a non-profit organization?- to enhance the quality of service rendered- to modernize- to adapt to new technology- to understand how to deal with increased competition- to be innovative with their services - to be more attentive to their customers’ expectations and demands

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

Primer 08 Hemsley-Brown06 Daradoumis 08

Pollard 08 Jayachandran 05

April 12, 2023 25

CRM Scheme ImplementationCRP Henri Tudor

Since 1987, CRP Henri Tudor contributes to the improvement and strengthening of the innovation capacity of enterprises and public organisations.

Staff at the end of 2008: 346 Income 2008: 32.28 M Euro Budget 2009: 35.1 M Euro Activities:

Applied and experimental research Doctoral research Development of tools, methods, labels, certifications and standards Technological assistance, consulting and watch services Knowledge and competences transfer, as well as incubation of high-

tech companies Training and high-level qualification

Number of RDI projects: 132

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 26

CRM Scheme ImplementationCRP Henri Tudor

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

Scientific and Technological Domains:

Information and communication technologies

Materials technologies

Business organisation and management

Environmental technologies

Health care technologies

Targeted Sectors:

Services Finance Production

Construction Health care and social security Public Sector

A particular attention is given to SME.

April 12, 2023 27

CRM Strategy

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

1 – Define New Strategy for Customer Relations Management

Customer Relationship History Analysis

Customer Life Cycle Analysis

2 – Define New Customer Relations Organization

2 – Change Management – Customer Culture Management

3 – Establish CRM System Specifications

4 – Roll out CRM System – User Training

Breakdowns/Improvements classified in the 4 categories

Fit/Coalignement

Fit/Coalignement/Market orientation/Resistance to change

Fit/Coalignement/IT Maturity/Resistance to change

Fit/Coalignement/IT Maturity/Resistance to change

Implentation’s Strategy Key factors

April 12, 2023 28

Customer Relationship History

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

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April 12, 2023 29

Customer Life Cycle

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

1- Reach

2- Acquisition

3- Conversion

4- Retention

5- Loyalty

1- Prospecting 1- Preliminary Approach

2- Listen-Present-Demonstrate

3- Conclusion 3- Realization

4- Follow-up

5- Loyalty

Adaptation of Cutler’s Model

April 12, 2023 30

Limitation and further research

IFKAD 2010 - Matera

April 12, 2023 31

Limitation and further research

We try to adopt a global approach based on the strategical, organisational and IT aspects of CRM

We are focused on the implementation not on the ROI

We don’t explore the different parts of CRM software (SFA, EMA, CC) and the different functions

It’s just an initial approach which need to be deeply investigated.

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 32

Limitation and further research

Our goal is to define a multi-variables model based on this approach and test it in an implementation.

This model should combine the differents factors because they are interdependant.

We need to define the variable and a metric scale to validate the success/failure of CRM implementation.

We have to define what is a success or a failure. We should demonstrate an impact on the bottom-line to validate if the implementation is a success or not.

CRM – definitions

Key Success Factors for CRM Schemes

CRM Scheme Implementation Strategy in CRP Henri Tudor

Limitations and further research

April 12, 2023 33

Questions???

IFKAD 2010 - Matera