ERP CRM Case Study Report
Content
1
BBA-ERP, PAF-KIET (city campus)
Student: Muhammad Owais Saleem Khan Reg # 4405
Table of Contents
CRM conditions ............................................................................................................................................. 2 How CRM impacts Toyota ............................................................................................................................. 2 Toyota’s viewpoint ........................................................................................................................................ 2 Toyota in Lean CRM ...................................................................................................................................... 2 Toyota - before and after Lean CRM............................................................................................................. 3 CRM strategy success story....................................................................................................................... 3 CRM system vendor details “Salesforce.com” .............................................................................................. 5 Force.com Platform and the AppExchange .................................................................................................. 6 Implementation Details ................................................................................................................................ 7 Top management commitment ........................................................................................................ 7 CRM strategy ..................................................................................................................................... 7 Data management ............................................................................................................................ 7 Culture change .................................................................................................................................. 7 Process change/structure redesign .................................................................................................. 7 IT systems.......................................................................................................................................... 7 Skilful, Motivated, and trained staff ................................................................................................. 7 Customer involvement/consultation ................................................................................................ 7 Monitoring, controlling, measuring, and feedback .......................................................................... 8 Inter-departmental integration ........................................................................................................ 8
OBSERVATIONS in Toyota’s successful implementation of CRM system ..................................................... 8 Local Scenario Implication ............................................................................................................................ 9 Business Needs of local bank .................................................................................................................... 9 Solution through CRM vendor’s partner................................................................................................. 10 Benefits of CRM in local bank ................................................................................................................. 11
2
ERP-CRM case study report
CRM conditions
Toyota as a company and the customers both have sets of conditions to consider when building the relationship, such as wants and needs of both partiesToyota needs to make a profit to survive and grow Customers buying automobiles want good service, a quality product and an acceptable price
How CRM impacts Toyota
CRM has a major impact on Toyota as an automobile manufacturer through: Shifting the focus from product (here automobiles) to customer Streamlining the offer to what the customer requires, not what Toyota can make Highlighting competencies required for an effective CRM process
Toyota’s viewpoint
The old viewpoint in automobile industry was: 'Here's what we can make - who wants to buy our product?' The new viewpoint recognized by Toyota is: 'What exactly do our customers want and need?' and 'What do we need to do to be able to produce and deliver it to our customers?' This is a significant change of paradigm and a quantum leap in terms of how Toyota looks at their business activity.
Toyota in Lean CRM
Lean CRM as the name suggests provides a lean ‗efficient‘ approach and embodies best practice solutions which are scalable, repeatable and offers customers a proven business model with rapid delivery and return on investment.
3
Lean CRM contains the functions needed to manage the entire life cycle of customer relationships, from planning and monitoring the first marketing activities, to the sales process, and functions for managing ongoing customer service and customer relations. Lean CRM‘s functions and features are: maintaining and classifying customer and supplier data maintaining and classifying contact person data Managing information about contact interests etc. forming mailing lists lead management offer management order management contact and action management customer feedback management
A company‘s CRM assets will be part of its market valuation. So learning how to grow those assets is a quite challenge. Yet studies show that 60-70 per cent of companies are still struggling to achieve benefits. So this report states how Toyota jumped over hurdles and successfully implemented Lean CRM.
Toyota - before and after Lean CRM
CRM strategy success story
In 2003, Toyota carried out an audit of customer management in its European markets. It identified a number of key customer management processes that, if improved, would contribute significantly to its bottom line. But rather than start an inside-out reengineering project immediately, company management decided to canvas Toyota dealers in the affected markets to see what they thought. After all, they are the ones who have daily contact with drivers. They are Toyota‘s internal customers. To anyone who has worked in the automotive industry, canvassing dealers for their thoughts is practically unheard of. Dealers were a little suspicious at the start, but 20 pilot dealers were persuaded to work closely with Toyota in an advisory board. Many discussions, visits and workshops were held to identify ways to radically improve the processes. They identified a whole host of things dealers were already doing to improve the processes that Toyota management had no idea about. These ideas were to form the foundation of the whole Lean CRM program.
4
Most large companies have many different departments that deal with customers. The division into marketing, sales and service is typical. Toyota had the three, plus a number of others. All would have to be involved in the Lean CRM program if it was to be a success. The program sponsors from marketing set out the problem, its origins, the chosen solution and how it would be implemented on a single sheet of A3 paper. The Lean CRM A3 was then discussed with each of the affected departments through a process Toyota calls ―Nemawashi.‖ Nemawashi is part of the fabled ―Toyota Way.‖ Through this process, a problem or opportunity is explained in detail, with each party committing to support the program in the form of a binding signature on the A3. One by one, each of the departments signed up to the Lean CRM A3 and agreed to loosely coordinate their own customer management activities with the program. Big bang implementations of CRM don‘t work. There are too many variables that just can‘t be controlled. Toyota decided to go for a step-by-step approach that would still shoot for the big Lean CRM prize but one shot at a time. A series of back-to-back pilot projects were developed in close collaboration with the pilot dealers. The first pilot involved extracting whatever data was available from source systems in Toyota and the pilot dealers, loading it into an analytical data mart and analyzing the data to see what could be done with it. Once the step had been piloted and proven, it was industrialized for general use by the program. Each subsequent step, thus, built upon the infrastructure, experience and knowledge developed in the previous steps. This iterative approach allowed the program use what had already been developed to create value immediately through eliminating costly waste on the one hand and expeditionary marketing campaigns that create revenue on the other. It also allowed the program to alter its direction when a piece of technology ran significantly over budget and was cancelled. As the Lean CRM program progressed through a number of industrialized steps, other groups were integrated into it. Chief of these was the marketing agency that ran the Toyota Customer Contact Program. Other programs, such as the Toyota Experience Program, were also integrated into it. A part-time CRM coordinator had been recruited from within the business to manage the collaboration required within the program, and with other partners and programs. Toyota management also established a customer management forum alongside the dealer advisory board to provide a framework to manage collaboration on a larger scale, now that the program was already delivering results. The more successful the program was, the more other departments wanted to piggyback on its success and closely integrate their own customer management activities with the program. Each time one of the earlier steps in the program was industrialized, it went through a ―Kaizen‖ process. Formal lean tools were applied to identify waste, to remove it at the source and to increase its efficiency and effectiveness. This wasn‘t carried out by a
5
special Kaizen team but by the program team members, themselves. As the Lean CRM program proceeded, Kaizen was increasingly applied as a daily activity by all those involved in the program‘s activities. The Lean CRM program is a success within Toyota. It now manages all of Toyota‘s outbound contacts with customers and an increasing number of inbound ones. The efficiency and effectiveness of marketing activities have been greatly increased, with a halving of costs and a doubling of response rates to marketing campaigns. Dealer contacts with customers are shortly to be brought into the program. And other parts of Toyota are now being integrated into the program at a managed rate. Other Toyota national marketing and sales companies are also interested to see how they can implement it at home. The secret of success was not only the new CRM capabilities introduced through Lean CRM, but also the step-by-step way in which the changes associated with the program were implemented. Just as with individuals in everyday life, corporate change does not have to be painful.
CRM system vendor details “Salesforce.com”
Salesforce.com is an enterprise cloud computing company headquartered in San Francisco that distributes business software on a subscription basis. Salesforce.com hosts the applications off-site. It is best known for its Customer Relationship Management (CRM) products and, through acquisition, has expanded into the "social enterprise arena." One of the world's largest vehicle manufacturers utilizes the Force.com Platform-as-aService to deploy fully integrated sales environment in less than three months. Salesforce.com, the market and technology leader in on-demand business services announced in late 2007 that Toyota Motor has standardized on salesforce.com's multitenant on-demand service and deployed a fully integrated sales environment in less than three months. Toyota Motor can now automate many day-to-day processes which allow its sales territories to work together more efficiently resulting in a substantial increase in customer responsiveness. Account managers at Toyota Motor headquarters in Belgium, as well as Toyota National Sales and Marketing companies throughout the world, use the multi-tenant on-demand service to target, acquire and manage day-to-day relationships with multi-national fleet customers. Utilizing the Force.com platform, Toyota Motor customized the system to meet its unique needs enabling the company to automate many day-to-day processes. One of the main reasons for choosing the on-demand Salesforce application is its ability
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to integrate with back office systems and external sources of information regarding vehicle data. The Force.com platform offers the flexibility to integrate with any enterprise application or system-offering faster, easier, and more cost effective integration.
Force.com Platform and the AppExchange
Force.com reinvents the traditional development, deployment and distribution of any business application with Platform-as-a-Service. Developers, customers and partners can use Force.com to easily create a new generation of on-demand applications and deploy them worldwide as a service. Force.com allows applications to be easily shared, exchanged and installed with a few simple clicks via salesforce.com's AppExchange marketplace, enabling all the innovation that Force.com unleashes to be easily distributed to the entire on-demand community. The AppExchange economy continues to expand, with thousands of customers installing thousands of applications via the AppExchange. Customers of all sizes can quickly and easily extend Salesforce with additional on-demand business applications available on the AppExchange, found at http://www.salesforce.com/appexchange. With 100,000+ customers, salesforce.com is the enterprise cloud computing company that is leading the shift to the social enterprise. Social enterprises leverage social, mobile and open cloud technologies to put customers at the heart of their business. Based on salesforce.com's real-time, multitenant architecture, the company's platform and application services include: Salesforce Chatter, a private social network for your business Salesforce Sales Cloud, for sales force automation and contact management Salesforce Service Cloud, for customer service and support solutions Salesforce Radian6, for social media monitoring and engagement Salesforce Data.com, the most complete source of accurate business data AppExchange, the leading marketplace for enterprise cloud computing applications Force.com, for custom application development Heroku, for building social and mobile apps in Ruby Database.com, the world‘s first enterprise cloud database
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Implementation Details
Critical Success Factors for Lean CRM Implementation:
Top management commitment
This factor focuses on the willingness of the top level management to provide sufficient and necessary recourses needed to the implementation process.
CRM strategy
This factor focuses on the clear definition of CRM strategy and its alignment to the organization‘s general strategy.
Data management
This factor focuses on acquiring and analyzing the right quantity and quality of information on customers to help to meet customer‘s needs.
Culture change
The ability of the organization to transform into customer-oriented and to consider CRM as an organization philosophy that is shared organization-wide.
Process change/structure redesign
This factor focuses on developing necessary changes in the organization‘s structure and the related process to fit CRM compatibility including the hierarchy and reporting relations
IT systems
This factor focuses on the availability and management of technological resources including data warehouse management, ERP capabilities, internet facilities, and software selection and configuration.
Skilful, Motivated, and trained staff
This factor focuses on the availability of experienced and qualified personnel and the ability of providing training programs.
Customer involvement/consultation
8
This factor focuses on consultation, interaction, and communication with customer through enhancing interaction between the organization and the customers.
Monitoring, controlling, measuring, and feedback
This factor focuses on creating and implementing measurements for CRM implementation and CRM impact on the organization‘s performance as well as developing appropriate channels to gain feedback for enhancing the learning process of CRM implementation for required improvements
Inter-departmental integration
This factor focuses on the integration of different departments and areas of the organization to meet the general objectives of CRM and the main company‘s objectives as well as the objectives of these departments.
OBSERVATIONS in Toyota’s successful implementation of CRM system
Clear Vision Define correct goals Accomplishable expectations Gather requirements carefully Effective work in search & collect information about CRM vendors and their benefits Correct calculation of ROI (return on investment) Set the implementation strategies carefully Motivate HR for enterprise wide change in work Ensure quality data to transfer in new system from traditional one Efforts for continuous improvements
9
Local Scenario Implication
Unfortunately automotive industry sector there is no organization in local country on which the implication of CRM can be explained in successful manner because of that fact I choose banking sector in local scenario to show a case where CRM is successfully implemented because of the factors considered by that organization carefully as almost same as like Toyota did during his implementation phase of CRM. Previously mentioned observations in successful implementation of CRM system in Toyota is also found almost as same in efforts of KASB bank in its homework before taking every step of implementation of CRM system.
KASB Bank Bank Strengthens Market Opportunities with Enhanced Customer Service Tools determined to offer customers a more flexible, personalized service; Pakistan‘s KASB Bank deployed Microsoft Dynamics® CRM 4.0 business management software. Microsoft® Gold Certified Partner Maison Consulting & Solutions customized the technology to streamline collections management and integrate it with call centre systems. The bank‘s customers now benefit from a faster, more efficient service.
Business Needs of local bank
Part of KASB Group, KASB Bank is one of Pakistan‘s leading financial services organizations. It aims to build and retain stronger customer relationships through more flexible products and services, and by offering a diverse range of delivery channels that make banking easier. Over time, KASB Bank introduced locally developed IT systems, including a customer relationship management (CRM) solution. As the organisation grew, this system struggled with the complex needs of a large bank. For example, the information of just one quarter of the bank‘s customers—those who held debit cards—was managed by the system. As a result, detailed, historical customer data was simply not available to employees, making it difficult for them to respond quickly to customer requests. This lack of information also restricted internal processes. In particular, collections management was difficult to control. With no system in place to track products taken up by the customer, such as finance and instalment loans, the bank found it hard to forecast revenue accurately. Mujtaba Habib, Vice President IT Division, KASB Bank, says: ―This is an issue that, if improperly managed, can cost businesses millions of dollars. To minimise risk and improve customer satisfaction, we needed faster, more
10
accurate ways of identifying potential revenue issues, such as outstanding loan payments.‖
Solution through CRM vendor’s partner
Maison Consulting & Solutions is a Microsoft Gold Certified Partner that specializes in integrating Microsoft Dynamics solutions. In a series of consulting sessions, the organization introduced KASB Bank to Microsoft Dynamics CRM 4.0—management software that helps bring together all areas of a business. Habib says: ―We looked at implementing a Siebel solution or other locally developed technologies, but our colleagues at Maison Consulting & Solutions showed us how Microsoft Dynamics CRM could resolve our problems more cost effectively.‖ As an existing Microsoft Enterprise Agreement customer, KASB Bank is entitled to savings on new software licenses. Habib says: ―We also have a Microsoft infrastructure in place and the deployment of Microsoft Dynamics CRM 4.0 has helped us standardize IT across the enterprise and reduce the need for training.‖ Maison Consulting & Solutions developed a collections management module on Microsoft Dynamics CRM, which merges collections activities with sales activities. For example, calls from customers with defaulted loans are automatically routed to the collections management department. The partner also developed a Microsoft .NET–based solution, which integrates with certified technology that extracts information from core banking. Sultan Hamdani, Senior Consultant and Chief Operating Officer, Maison Consulting & Solutions, says: ―Any user of Microsoft Dynamics CRM with authorized access can provide account balances or carry out funds transfers and bill payments in real time, over the telephone.‖ Microsoft Dynamics CRM was easily customized to support a complaints management system that routes and escalates calls automatically. It works with Microsoft Office Outlook® 2007, which triggers workflows and tracks complaints, and the bank‘s call centre solution, which automates the distribution of calls between agents who can process requests such as pay orders and debit card replacements. Munawar Jaffrani, Executive Vice President and Head of Service Quality and Remote Banking, KASB Bank, says: ―The integration capabilities available in Microsoft Dynamics CRM have made it easy for us to create end-to-end automation in the contact centre.‖ The solution also integrates with interactive voice response technology from Genesys. This touch-tone system uses speech recognition for automated conversational exchange and works with Microsoft Dynamics CRM to identify and resolve customer
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queries. Requests for new financial instruments, for example, can be taken care of electronically, reducing some of the call load and freeing staff to handle other inquiries.
Benefits of CRM in local bank
Today, KASB Bank employees can respond to customer needs quickly and provide a more personalized service. Waqar A. Khan, Group Executive Operations and Technology, KASB Bank, says: ―CRM is the prime focus of this bank. Microsoft Dynamics CRM ensures that the entire KASB Bank team can achieve excellence in managing customer relationships.‖ Customer needs are met quickly. Customers can carry out most of their financial transactions over the telephone instead of having to come into the branch. Queries can be dealt with faster and more efficiently in one call, by one advisor. Bank minimizes risk. The solution flags behaviors that put customers at risk, such as late loan payments, giving employees time to take proactive steps to minimize problems. ―The Microsoft Dynamics CRM module for collections management has worked so well, we‘re applying it to all other group companies, such as the bonds and securities divisions, and in other areas such as operations and card production,‖ says Habib. Employees can increase targeted selling. With a clear view of customer history at their fingertips, customer relationship officers use relevant data for targeted cross-selling of more sophisticated products, helping the bank to increase revenues. Tabish Sabah, Enterprise Partner Group Lead, Microsoft, says: ―Microsoft Dynamics CRM supports KASB Bank in the promotion of its services. Using this technology, bank employees can make a true impact on the market.‖ Bank retains valuable customers. ―Using Microsoft Dynamics CRM, employees can identify the bank‘s most profitable customers and implement effective retention strategies such as building a better understanding of their portfolios,‖ says Saeed. Employees work more efficiently. Automated call systems help to relieve pressure from employees, meaning the bank can take on a greater number of customers without employing additional call centre staff. In some cases, employees can be redeployed to other areas of the business.
BBA-ERP, PAF-KIET (city campus)
Student: Muhammad Owais Saleem Khan Reg # 4405
Table of Contents
CRM conditions ............................................................................................................................................. 2 How CRM impacts Toyota ............................................................................................................................. 2 Toyota’s viewpoint ........................................................................................................................................ 2 Toyota in Lean CRM ...................................................................................................................................... 2 Toyota - before and after Lean CRM............................................................................................................. 3 CRM strategy success story....................................................................................................................... 3 CRM system vendor details “Salesforce.com” .............................................................................................. 5 Force.com Platform and the AppExchange .................................................................................................. 6 Implementation Details ................................................................................................................................ 7 Top management commitment ........................................................................................................ 7 CRM strategy ..................................................................................................................................... 7 Data management ............................................................................................................................ 7 Culture change .................................................................................................................................. 7 Process change/structure redesign .................................................................................................. 7 IT systems.......................................................................................................................................... 7 Skilful, Motivated, and trained staff ................................................................................................. 7 Customer involvement/consultation ................................................................................................ 7 Monitoring, controlling, measuring, and feedback .......................................................................... 8 Inter-departmental integration ........................................................................................................ 8
OBSERVATIONS in Toyota’s successful implementation of CRM system ..................................................... 8 Local Scenario Implication ............................................................................................................................ 9 Business Needs of local bank .................................................................................................................... 9 Solution through CRM vendor’s partner................................................................................................. 10 Benefits of CRM in local bank ................................................................................................................. 11
2
ERP-CRM case study report
CRM conditions
Toyota as a company and the customers both have sets of conditions to consider when building the relationship, such as wants and needs of both partiesToyota needs to make a profit to survive and grow Customers buying automobiles want good service, a quality product and an acceptable price
How CRM impacts Toyota
CRM has a major impact on Toyota as an automobile manufacturer through: Shifting the focus from product (here automobiles) to customer Streamlining the offer to what the customer requires, not what Toyota can make Highlighting competencies required for an effective CRM process
Toyota’s viewpoint
The old viewpoint in automobile industry was: 'Here's what we can make - who wants to buy our product?' The new viewpoint recognized by Toyota is: 'What exactly do our customers want and need?' and 'What do we need to do to be able to produce and deliver it to our customers?' This is a significant change of paradigm and a quantum leap in terms of how Toyota looks at their business activity.
Toyota in Lean CRM
Lean CRM as the name suggests provides a lean ‗efficient‘ approach and embodies best practice solutions which are scalable, repeatable and offers customers a proven business model with rapid delivery and return on investment.
3
Lean CRM contains the functions needed to manage the entire life cycle of customer relationships, from planning and monitoring the first marketing activities, to the sales process, and functions for managing ongoing customer service and customer relations. Lean CRM‘s functions and features are: maintaining and classifying customer and supplier data maintaining and classifying contact person data Managing information about contact interests etc. forming mailing lists lead management offer management order management contact and action management customer feedback management
A company‘s CRM assets will be part of its market valuation. So learning how to grow those assets is a quite challenge. Yet studies show that 60-70 per cent of companies are still struggling to achieve benefits. So this report states how Toyota jumped over hurdles and successfully implemented Lean CRM.
Toyota - before and after Lean CRM
CRM strategy success story
In 2003, Toyota carried out an audit of customer management in its European markets. It identified a number of key customer management processes that, if improved, would contribute significantly to its bottom line. But rather than start an inside-out reengineering project immediately, company management decided to canvas Toyota dealers in the affected markets to see what they thought. After all, they are the ones who have daily contact with drivers. They are Toyota‘s internal customers. To anyone who has worked in the automotive industry, canvassing dealers for their thoughts is practically unheard of. Dealers were a little suspicious at the start, but 20 pilot dealers were persuaded to work closely with Toyota in an advisory board. Many discussions, visits and workshops were held to identify ways to radically improve the processes. They identified a whole host of things dealers were already doing to improve the processes that Toyota management had no idea about. These ideas were to form the foundation of the whole Lean CRM program.
4
Most large companies have many different departments that deal with customers. The division into marketing, sales and service is typical. Toyota had the three, plus a number of others. All would have to be involved in the Lean CRM program if it was to be a success. The program sponsors from marketing set out the problem, its origins, the chosen solution and how it would be implemented on a single sheet of A3 paper. The Lean CRM A3 was then discussed with each of the affected departments through a process Toyota calls ―Nemawashi.‖ Nemawashi is part of the fabled ―Toyota Way.‖ Through this process, a problem or opportunity is explained in detail, with each party committing to support the program in the form of a binding signature on the A3. One by one, each of the departments signed up to the Lean CRM A3 and agreed to loosely coordinate their own customer management activities with the program. Big bang implementations of CRM don‘t work. There are too many variables that just can‘t be controlled. Toyota decided to go for a step-by-step approach that would still shoot for the big Lean CRM prize but one shot at a time. A series of back-to-back pilot projects were developed in close collaboration with the pilot dealers. The first pilot involved extracting whatever data was available from source systems in Toyota and the pilot dealers, loading it into an analytical data mart and analyzing the data to see what could be done with it. Once the step had been piloted and proven, it was industrialized for general use by the program. Each subsequent step, thus, built upon the infrastructure, experience and knowledge developed in the previous steps. This iterative approach allowed the program use what had already been developed to create value immediately through eliminating costly waste on the one hand and expeditionary marketing campaigns that create revenue on the other. It also allowed the program to alter its direction when a piece of technology ran significantly over budget and was cancelled. As the Lean CRM program progressed through a number of industrialized steps, other groups were integrated into it. Chief of these was the marketing agency that ran the Toyota Customer Contact Program. Other programs, such as the Toyota Experience Program, were also integrated into it. A part-time CRM coordinator had been recruited from within the business to manage the collaboration required within the program, and with other partners and programs. Toyota management also established a customer management forum alongside the dealer advisory board to provide a framework to manage collaboration on a larger scale, now that the program was already delivering results. The more successful the program was, the more other departments wanted to piggyback on its success and closely integrate their own customer management activities with the program. Each time one of the earlier steps in the program was industrialized, it went through a ―Kaizen‖ process. Formal lean tools were applied to identify waste, to remove it at the source and to increase its efficiency and effectiveness. This wasn‘t carried out by a
5
special Kaizen team but by the program team members, themselves. As the Lean CRM program proceeded, Kaizen was increasingly applied as a daily activity by all those involved in the program‘s activities. The Lean CRM program is a success within Toyota. It now manages all of Toyota‘s outbound contacts with customers and an increasing number of inbound ones. The efficiency and effectiveness of marketing activities have been greatly increased, with a halving of costs and a doubling of response rates to marketing campaigns. Dealer contacts with customers are shortly to be brought into the program. And other parts of Toyota are now being integrated into the program at a managed rate. Other Toyota national marketing and sales companies are also interested to see how they can implement it at home. The secret of success was not only the new CRM capabilities introduced through Lean CRM, but also the step-by-step way in which the changes associated with the program were implemented. Just as with individuals in everyday life, corporate change does not have to be painful.
CRM system vendor details “Salesforce.com”
Salesforce.com is an enterprise cloud computing company headquartered in San Francisco that distributes business software on a subscription basis. Salesforce.com hosts the applications off-site. It is best known for its Customer Relationship Management (CRM) products and, through acquisition, has expanded into the "social enterprise arena." One of the world's largest vehicle manufacturers utilizes the Force.com Platform-as-aService to deploy fully integrated sales environment in less than three months. Salesforce.com, the market and technology leader in on-demand business services announced in late 2007 that Toyota Motor has standardized on salesforce.com's multitenant on-demand service and deployed a fully integrated sales environment in less than three months. Toyota Motor can now automate many day-to-day processes which allow its sales territories to work together more efficiently resulting in a substantial increase in customer responsiveness. Account managers at Toyota Motor headquarters in Belgium, as well as Toyota National Sales and Marketing companies throughout the world, use the multi-tenant on-demand service to target, acquire and manage day-to-day relationships with multi-national fleet customers. Utilizing the Force.com platform, Toyota Motor customized the system to meet its unique needs enabling the company to automate many day-to-day processes. One of the main reasons for choosing the on-demand Salesforce application is its ability
6
to integrate with back office systems and external sources of information regarding vehicle data. The Force.com platform offers the flexibility to integrate with any enterprise application or system-offering faster, easier, and more cost effective integration.
Force.com Platform and the AppExchange
Force.com reinvents the traditional development, deployment and distribution of any business application with Platform-as-a-Service. Developers, customers and partners can use Force.com to easily create a new generation of on-demand applications and deploy them worldwide as a service. Force.com allows applications to be easily shared, exchanged and installed with a few simple clicks via salesforce.com's AppExchange marketplace, enabling all the innovation that Force.com unleashes to be easily distributed to the entire on-demand community. The AppExchange economy continues to expand, with thousands of customers installing thousands of applications via the AppExchange. Customers of all sizes can quickly and easily extend Salesforce with additional on-demand business applications available on the AppExchange, found at http://www.salesforce.com/appexchange. With 100,000+ customers, salesforce.com is the enterprise cloud computing company that is leading the shift to the social enterprise. Social enterprises leverage social, mobile and open cloud technologies to put customers at the heart of their business. Based on salesforce.com's real-time, multitenant architecture, the company's platform and application services include: Salesforce Chatter, a private social network for your business Salesforce Sales Cloud, for sales force automation and contact management Salesforce Service Cloud, for customer service and support solutions Salesforce Radian6, for social media monitoring and engagement Salesforce Data.com, the most complete source of accurate business data AppExchange, the leading marketplace for enterprise cloud computing applications Force.com, for custom application development Heroku, for building social and mobile apps in Ruby Database.com, the world‘s first enterprise cloud database
7
Implementation Details
Critical Success Factors for Lean CRM Implementation:
Top management commitment
This factor focuses on the willingness of the top level management to provide sufficient and necessary recourses needed to the implementation process.
CRM strategy
This factor focuses on the clear definition of CRM strategy and its alignment to the organization‘s general strategy.
Data management
This factor focuses on acquiring and analyzing the right quantity and quality of information on customers to help to meet customer‘s needs.
Culture change
The ability of the organization to transform into customer-oriented and to consider CRM as an organization philosophy that is shared organization-wide.
Process change/structure redesign
This factor focuses on developing necessary changes in the organization‘s structure and the related process to fit CRM compatibility including the hierarchy and reporting relations
IT systems
This factor focuses on the availability and management of technological resources including data warehouse management, ERP capabilities, internet facilities, and software selection and configuration.
Skilful, Motivated, and trained staff
This factor focuses on the availability of experienced and qualified personnel and the ability of providing training programs.
Customer involvement/consultation
8
This factor focuses on consultation, interaction, and communication with customer through enhancing interaction between the organization and the customers.
Monitoring, controlling, measuring, and feedback
This factor focuses on creating and implementing measurements for CRM implementation and CRM impact on the organization‘s performance as well as developing appropriate channels to gain feedback for enhancing the learning process of CRM implementation for required improvements
Inter-departmental integration
This factor focuses on the integration of different departments and areas of the organization to meet the general objectives of CRM and the main company‘s objectives as well as the objectives of these departments.
OBSERVATIONS in Toyota’s successful implementation of CRM system
Clear Vision Define correct goals Accomplishable expectations Gather requirements carefully Effective work in search & collect information about CRM vendors and their benefits Correct calculation of ROI (return on investment) Set the implementation strategies carefully Motivate HR for enterprise wide change in work Ensure quality data to transfer in new system from traditional one Efforts for continuous improvements
9
Local Scenario Implication
Unfortunately automotive industry sector there is no organization in local country on which the implication of CRM can be explained in successful manner because of that fact I choose banking sector in local scenario to show a case where CRM is successfully implemented because of the factors considered by that organization carefully as almost same as like Toyota did during his implementation phase of CRM. Previously mentioned observations in successful implementation of CRM system in Toyota is also found almost as same in efforts of KASB bank in its homework before taking every step of implementation of CRM system.
KASB Bank Bank Strengthens Market Opportunities with Enhanced Customer Service Tools determined to offer customers a more flexible, personalized service; Pakistan‘s KASB Bank deployed Microsoft Dynamics® CRM 4.0 business management software. Microsoft® Gold Certified Partner Maison Consulting & Solutions customized the technology to streamline collections management and integrate it with call centre systems. The bank‘s customers now benefit from a faster, more efficient service.
Business Needs of local bank
Part of KASB Group, KASB Bank is one of Pakistan‘s leading financial services organizations. It aims to build and retain stronger customer relationships through more flexible products and services, and by offering a diverse range of delivery channels that make banking easier. Over time, KASB Bank introduced locally developed IT systems, including a customer relationship management (CRM) solution. As the organisation grew, this system struggled with the complex needs of a large bank. For example, the information of just one quarter of the bank‘s customers—those who held debit cards—was managed by the system. As a result, detailed, historical customer data was simply not available to employees, making it difficult for them to respond quickly to customer requests. This lack of information also restricted internal processes. In particular, collections management was difficult to control. With no system in place to track products taken up by the customer, such as finance and instalment loans, the bank found it hard to forecast revenue accurately. Mujtaba Habib, Vice President IT Division, KASB Bank, says: ―This is an issue that, if improperly managed, can cost businesses millions of dollars. To minimise risk and improve customer satisfaction, we needed faster, more
10
accurate ways of identifying potential revenue issues, such as outstanding loan payments.‖
Solution through CRM vendor’s partner
Maison Consulting & Solutions is a Microsoft Gold Certified Partner that specializes in integrating Microsoft Dynamics solutions. In a series of consulting sessions, the organization introduced KASB Bank to Microsoft Dynamics CRM 4.0—management software that helps bring together all areas of a business. Habib says: ―We looked at implementing a Siebel solution or other locally developed technologies, but our colleagues at Maison Consulting & Solutions showed us how Microsoft Dynamics CRM could resolve our problems more cost effectively.‖ As an existing Microsoft Enterprise Agreement customer, KASB Bank is entitled to savings on new software licenses. Habib says: ―We also have a Microsoft infrastructure in place and the deployment of Microsoft Dynamics CRM 4.0 has helped us standardize IT across the enterprise and reduce the need for training.‖ Maison Consulting & Solutions developed a collections management module on Microsoft Dynamics CRM, which merges collections activities with sales activities. For example, calls from customers with defaulted loans are automatically routed to the collections management department. The partner also developed a Microsoft .NET–based solution, which integrates with certified technology that extracts information from core banking. Sultan Hamdani, Senior Consultant and Chief Operating Officer, Maison Consulting & Solutions, says: ―Any user of Microsoft Dynamics CRM with authorized access can provide account balances or carry out funds transfers and bill payments in real time, over the telephone.‖ Microsoft Dynamics CRM was easily customized to support a complaints management system that routes and escalates calls automatically. It works with Microsoft Office Outlook® 2007, which triggers workflows and tracks complaints, and the bank‘s call centre solution, which automates the distribution of calls between agents who can process requests such as pay orders and debit card replacements. Munawar Jaffrani, Executive Vice President and Head of Service Quality and Remote Banking, KASB Bank, says: ―The integration capabilities available in Microsoft Dynamics CRM have made it easy for us to create end-to-end automation in the contact centre.‖ The solution also integrates with interactive voice response technology from Genesys. This touch-tone system uses speech recognition for automated conversational exchange and works with Microsoft Dynamics CRM to identify and resolve customer
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queries. Requests for new financial instruments, for example, can be taken care of electronically, reducing some of the call load and freeing staff to handle other inquiries.
Benefits of CRM in local bank
Today, KASB Bank employees can respond to customer needs quickly and provide a more personalized service. Waqar A. Khan, Group Executive Operations and Technology, KASB Bank, says: ―CRM is the prime focus of this bank. Microsoft Dynamics CRM ensures that the entire KASB Bank team can achieve excellence in managing customer relationships.‖ Customer needs are met quickly. Customers can carry out most of their financial transactions over the telephone instead of having to come into the branch. Queries can be dealt with faster and more efficiently in one call, by one advisor. Bank minimizes risk. The solution flags behaviors that put customers at risk, such as late loan payments, giving employees time to take proactive steps to minimize problems. ―The Microsoft Dynamics CRM module for collections management has worked so well, we‘re applying it to all other group companies, such as the bonds and securities divisions, and in other areas such as operations and card production,‖ says Habib. Employees can increase targeted selling. With a clear view of customer history at their fingertips, customer relationship officers use relevant data for targeted cross-selling of more sophisticated products, helping the bank to increase revenues. Tabish Sabah, Enterprise Partner Group Lead, Microsoft, says: ―Microsoft Dynamics CRM supports KASB Bank in the promotion of its services. Using this technology, bank employees can make a true impact on the market.‖ Bank retains valuable customers. ―Using Microsoft Dynamics CRM, employees can identify the bank‘s most profitable customers and implement effective retention strategies such as building a better understanding of their portfolios,‖ says Saeed. Employees work more efficiently. Automated call systems help to relieve pressure from employees, meaning the bank can take on a greater number of customers without employing additional call centre staff. In some cases, employees can be redeployed to other areas of the business.
