Effects of implementing crm systems

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Effects Of Implementing Crm Systems And Its Strategic Issues In An Organisation


Definition Of CRM:

Any organisation will profit from adopting a definition of what CRM means in strategic terms for their business and ensuring that this definition is used in a regular manner all the way through their organization.

One of the most important definitions of a CRM has been given by Davenport et al. (2001), stating that CRM systems are “all the tools, technologies and procedures to control, manage and improve or facilitate sales, support and related interactions with customers, and business partners throughout the enterprise”.

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According with Siebel, (one of the mayor players in the CRM market) “CRM is an integrated approach to identifying, acquiring, and retaining customers. By enabling companies to deal with and coordinate customer interactions across several channels, departments, lines of business, and geographies, CRM helps organizations maximize the value of every customer interaction and drive superior corporate performance.”

Another concept about CRM, provided by John Wiley, author of the book “CRM unplugged”, is “CRM is not about technology, it’s about attracting and serving clients in more attractive ways”.


Many organisations in recent years identified the importance to become friendlier with the customers facing with increased worldwide competition. Therefore Customer Relationship Management (CRM) has risen to the agenda of many organisational strategies. Customer Relationship Management systems can be viewed as information systems meant to enable organisations to realise a customer focus. An increasing number of organisations are adopting CRM yet surveys are beginning to highlight the potential risks. Although CRM systems are proving an extremely popular choice for implementation. It is obvious that there is still a need for further observed studies of CRM but, only a few are available.

Now a day in the business market, management finds that customers are the central part of a business and that a company’s success depends on effectively managing relationships with them. So, one of the initial goals that management has its employees to achieve is based on a saying such as “the customers are always right,” “do whatever it takes to deliver your promise” or something similar. All objectives are decided to one crucial goal that is to make customers satisfy because they are the ones who keep the business run. Not too long ago, many companies did not consider this an important factor and often uncared for their customers with the result that many of these customers did not come back. Frequently, these objectives become constraints for businesses and their employees when they do not have suitable tools, equipment, or methods to achieve this goal. Now a day, technology provides to the businesses with systems that can help companies track customers’ communications with the firms and allow the firms’

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