1Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003

An Integrative Implementation Framework for Electronic Customer Relationship Management:Revisiting the General Principles of Usability and Resistance

Jerry FjermestadNJIT

Nicholas C. Romano, Jr.Oklahoma State University

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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What is eCRMeCRM is about:

retaining customers improving customer service attracting and keeping economically

valuable customers repelling and eliminating economically

invaluable ones

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Market growth for eCRM $20.4 billion 2002 $46 billion by 2003 to $125 billion by 2004

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Problems with eCRM More than half of all eCRM projects

are not expected to produce a measurable ROI

19% of CRM users decided to stop funding their eCRM projects

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Objective of this paper To analyze the secondary data

available in published sources business trade magazines academic journals

In the context of the basic usability and resistance principles

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Outline

Introduction to eCRM General usability and resistance

principles Build an integrative framework Present our analysis Conclusions & Recommendations for

successful eCRM implementations

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Basic principles of usability design:

Gould and Lewis, 1985

  Early focus on users and tasks   Empirical measurement   Iterative design 

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Basic principles of usability design: Nielsen, 1992

Pre- Design Design Post- Design

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Basic principles of resistance:Markus, 1983

People determined Technology determined Interaction theory

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Integrative Framework

Resistance | Usability

Pre-designKnow the usersCompetitive analysisSetting usability goals

Design

Participatory designCoordinated designGuidelines & heuristic analysisPrototyping & empirical testingIterative design

Post-design

Collect feedback from users

People Determined . System champion. Train users . Educate users. Change people. Job rotation. Coerce users. User participation to gain

commitment. Restructure user incentives

. Add users & modules slowly. Pilot projects. Work closely with teams 

. Create credibility

. Develop long term plans 

System Determined . Understand the technology

. Improve systems efficiency. Improve data entry. Improve human factors. Understand and simplify organizational procedures & processes

.Iterative, incremental implementations

Interaction Theory . Integrate with existing technology

. Use cross functional teams. Use positive users in pilots

. Build systems for valid business reasons. Fix organizational problems. Restructure relationships. Assign a system champion

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Paper Company Details of Problem

Patton, 2001The Truth about CRM

Monster.comInitial failure resulted in millions of dollars in added expenses and months of effort to re-implement the system.

Rolled out a high-end software package to provide its telephone sales representatives with instant information on prospective customers

  Telecommunications company Launched a CRM to 1,000 sales reps at a cost of &10,000 per user. 1 year later only 10% were using the system.

  Barclay Global Investors A successful implementation.

Deck, 2001CRM Made Simple

Hewlett-Packard HP was not using the web effectively. There was no central program or strategy for e-mail marketing.

  Student Connections Developed a CRM project to better understand how its products were being used and to maximize ROI.

Example eCRM Implementations

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Reasons for Limited eCRM Success

Company Resistance | Usability Pre-design Design Post-Design People- Determined . Field reps locked out of the

system . Inexperienced consultants

System- Determined . Slow systems, reps were unable to help customers

Monster.com

Interaction Theory . Complex systems People- Determined System- Determined

Telecommunications Company

Interaction Theory . 10 percent of the intended users were using the system . No clear support from top management

People- Determined . The company did not articulate its needs . Sales force refused to use the system . Inexperienced/poor consultants

System- Determined . Slow access to system by remote sales people . Data unavailable for the sales reps

Mshow

Interaction Theory

Second implementation . Hired consultants first . Implemented small scale CRM . Required sales people to use the system

People- Determined

System- Determined . Complex system . ASP failed to provide support

CopperCom

Interaction Theory

Second implementation . Focus on users throughout the process . Incentive plan to encourage use . Iterative and prototype development

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Reasons for eCRM Success

Company Resistance | Usability 

Pre-design Design Post-Design

Barclays People- Determined    

System- Determined . Survey the technology 2 years ahead of time

. Iterative, incremental  

Interaction Theory . Found a solution that works with existing software

   

Fingerhut People- Determined      

System- Determined   . Pilot tested the system on 10% of its customers for 1 year. Looked fore pieces instead of trying to fit into one solution.

 

Interaction Theory      

RadioShack

People- Determined   . Plans to add sales force gradually.

Guarded approach based on past struggles failure reports.

System- Determined   . Pilot projects. 20 people in first roll out.

. Past success were completed in “bite-size pieces.”

Interaction Theory . Developing multiple small CRM projects

   

Tipper Tie People- Determined . Soft sell to management. Interviewed sales reps. Interviewed call center staff. Interview consultants to find the best fit

. Worked closely with consultants. Team members work the system then made presentations to other users

 

System- Determined      

Interaction Theory   . Piloted the systems with “positive upbeat” people. Semiweekly progress updates. Cross functional pilot teams- the key to success

 

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Reasons for limited eCRM success

People Determined (Examples). Field reps locked out of the system. Inexperienced consultants . The company did not articulate its needs . Sales force refused to use the system

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Reasons for limited eCRM success

System Determined. Slow systems, reps were unable to help customers . Slow access to system by remote sales people. Data unavailable for the sales reps

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Reasons for limited eCRM success

Interaction theory (second time around). Required sales people to use the system . Iterative and prototype development

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Reasons for eCRM Success People determined

. Soft sell to management

. Interviewed sales reps

. Interviewed call center staff

. Interview consultants to find the best fit

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Reasons for eCRM Success System Determined

. Pilot tested the system on 10% of its customers for 1 year

. Looked for pieces instead of trying to fit into one solution. Controlled project

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Reasons for eCRM Success Interaction theory

. Learned from one Implementation and applied to the next. Implementing the next technology based upon a successful implementation

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Conclusions The integrated eCRM framework

provides guidelines for systems designers and the corresponding management team to improve usability and reduce resistance

focusing on usability can reduce resistance (training and educating users)

focusing on resistance can improve usability (use of pilot programs and prototyping)

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Conclusions organizations that experienced limited success in

implementing eCRM did not initially realize how much of an effect people could have on system success

Monster.com and Mshow did not design the systems

around their primary customer contacts:field representatives sales force

both implemented systems with inexperienced consultants.

The second time around, people were given the primary focus; thus minimizing or eliminating resistance and involving people with the design.

Fjermestad and Romano Integrative Implementation Framework for eCRM HICSS 2003Business process Management Journal, 9 (5), 2003, 572-591.

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Conclusions: key reasons for successful eCRM implementations

focus on people iterative (small step) incremental approaches