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PostImplementation Evaluation of the Effectiveness of the CRM Systems' Softwares - Essay Example

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PostImplementation Evaluation of the Effectiveness of the CRM Systems' Softwares

Though, this study would address all the three perspectives listed above, the intonation on the technology will be higher. As defined by Lin, (2003) CRM systems would help a company maximise its profits by reducing the overall cost to the company and increases revenue by streamlining customer centric work flows. This would also help the company in achieving and furthering its business goals. On the other hand, it can be defined as managerial efforts to combine/integrate technologies and business processes used to understand a company's customer and to satisfy the needs during any given interaction (Kim et al., 2003; Bose, 2002). This means that the technology is there to automate the existing business processes (Haag et al., 2006). Therefore, CRM is both information-based and technology based system.
Several studies show that organisations are investing heavily in implementing CRM software tools to support their processes. A newly study released by IDC (2005) shows that the CRM applications market returned to positive growth in 2004 with a CRM market grew 8%, resulting in total market revenues of $8.8 billion, and that buyers' intentions to implement CRM remain high in 2005. Also according to a survey's responses performed by Low (2002) show that spending levels on CRM are forecast to rise from $9.7 billion in 2001 to $16.5 billion in 2006. However, despite the growing increase in the adoption of CRM system software, there is a debate about the effectiveness of CRM and that CRM systems and projects are failing and that organisations are disappointed from their CRM performance (McCalla et al.,2003; Verhoef and langerak, 2002b; Woodcock and Starkey, 2001). Further more, Gartner Group (2002) predicted that 55% of all CRM projects would fail to meet their objectives over the next five years. Thus, this presents a problem for justifying the billions of dollars spent by organisations in implementing CRM systems.

Smithson and Hirschheim (1998), defined IS evaluation as 'the assessment or appraisal of the value, worth or usefulness of an information system". DeLone and McLean (2002) point out that the measurement of IS success/effectiveness is essential for understanding the value/efficacy of IS management actions and investment, in 1992 they developed their famous IS success model for measuring the complex dependent variable in IS research, and they updated it in 2003 based on changes in the role and management of information systems. Evaluation can be classified into two categories (Willcocks and Lester, 1994; Eldabi et al., 2003). Pre-implementation evaluation is done prior to an IT/IS investment and Post-implementation evaluation is done after an IT/IS investment. Al-Yaseen et al. (2004) indicated that the post evaluation should help the organisations to ensure and identify the extent to which the system has met the business objectives originally intended. He also says that such evaluations would also help in furthering the techniques employed during the development and the operational stages of the new system. Furthermore, Klompe et al. (1999) mentioned that post implementation ...Show more

Summary

Customer Relationship Management (CRM) is now one of the leading business strategies, and one of the dynamic IT topics today (Bose, 2002; Kim et al.; 2003; Bose and Sugumaran, 2003). CRM means different things to different people. Naturally, researchers, companies and vendors define CRM from their own perspective…
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PostImplementation Evaluation of the Effectiveness of the CRM Systems Softwares essay example
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