Chapter 9:
Software Tools and Dashboards
Overview
Topics discussed

CRM Implementation Options
 Developing Software In-house
 Buying Licensed CRM Software
 Outsourcing a Managed Service

CRM Software and Applications
 Stage-Wise Implementation v. an Enterprise Wide CRM Solution
 Relationships and Flows between CRM Modules
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CRM Implementation Options

Developing Software In-House

Buying Licensed Software

Outsourcing a Managed Service
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Developing Software In-House
Requires the company to define all its requirements, pay for software
development, and internally bear all the R&D costs
 Advantage:
 Tailor-made solution fit to the current business practices
 Develop internal skills that allow them to develop the system each time the
company requirements change
 Avoid dependence on CRM software vendors
 Disadvantage:
 Most Expensive option (high development maintenance, and operating costs)
 Difficult to attract and retain the employees needed to solve data warehouse
challenges
 Long time commitment (One to two years)
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Buying Licensed CRM Software
Companies can license CRM software packages, which are sold as a block
(different modules) or as independent modules

Advantage:
 Many of these CRM software packages have a proven record of success
 CRM vendors will provide knowledge and training for the IT concepts

Disadvantage:
 Expensive option (high initial fees, licensing costs, and maintenance costs)
 Companies need to develop the IT infrastructure and integrate the new software with
existing applications
 Each time a new or upgraded version is released, companies have to repurchase and
retrain for them
 Resistance from employees in terms of adapting to the new system
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Outsourcing a Managed Service
Companies can outsource the CRM solution to a third-party company,
which provides the hardware, software, and human resources in exchange for a
monthly fee.

Advantage:
 Lowest upfront costs: no software licensing fee, hardware system, recruiting, or internal
IT system costs
 Pay-as-you-go approach: Pertinent for smaller companies or those with limited
marketing budget to benefit from CRM programs

Disadvantage:
 High dependency on the outsourcing CRM company
 Not viable for companies who need specific requirements in their CRM package
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Decision Process for Implementation
Stage wise
implementation
Purchase and
install a complete
CRM solution
from a vendor
Implement an
enterprise wide
CRM Program
Implement a
CRM project
Decision to
implement CRM
Yes
Do not
implement a
CRM project
Entirely
outsource the
CRM application
process
No
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CRM Software and Applications
Stage-Wise Implementation vs. an Enterprise Wide CRM Solution

CRM industry mainly offers two types of CRM software solutions based on the company’s
needs and processes:
 Stage Wise Implementation:
 Offered in different and independent modules
 Each module is adapted to a specific department needs
 Ex) the company buys the sales automation software and the contact management
module from different providers
 Enterprise Wide CRM Solution
 Composed of different modules from the same provider
 Modules may be adapted to each department’s needs, yet they are implemented
as a whole
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CRM Software and Applications
Relationship and flows between CRM Modules

CRM modules, whether implemented independently in phases or together in a
global solution, need to be integrated to have an integrated view of the customer
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CRM Software and Applications

Example of an Integrated CRM Configuration
Customer Contact Strategy
Call Center
Management
Store
Management
Sales Force
Online Sales
Data Mining Analysis
Business
Intelligence
Customer
Service
Sales Force
Management
Data Distribution Hub
Business Processes
Accounts
Payable/
Receivable
Distribution
Sales &
Marketing
Billing
Production
Customer Feedback
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Summary

CRM provides capabilities for firms to optimize their marketing budget and increase
revenue, however poor CRM implementation can have negative outcomes.

CRM implementation strategies are: (a) develop in-house software, (b) purchase licensed
software from a third party vendor, and (c) outsourcing to a managed service

These strategies can be implemented via:
 Stage wise implementation, which takes longer but allows firm to take
implementations one step at a time
 Enterprise-wide implementation, which is more risky but allows the firm to take
advantage of the whole system’s benefits much sooner
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