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University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP MANAGEMENT (CZRM) Evolution, drawbacks and how to resolve them. Seminar Authors: Chatton Marc Oueslati Moez Rte des Acacias 9 Avenue du Moléson 21 1700 Fribourg 1700 Fribourg Supervisors: Prof. Dr. Andreas Meier Luis Terán Fribourg, October 2011

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Page 1: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

University of Fribourg, Switzerland

Department of Informatics

Information Systems Research Group

CITIZEN RELATIONSHIP MANAGEMENT (CZRM)

Evolution, drawbacks and how to resolve them.

Seminar

Authors:

Chatton Marc Oueslati Moez

Rte des Acacias 9 Avenue du Moléson 21

1700 Fribourg 1700 Fribourg

Supervisors:

Prof. Dr. Andreas Meier

Luis Terán

Fribourg, October 2011

Page 2: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Table of contents 1

Table of contents

1 ABSTRACT ............................................................................................................... 1

2 INTRODUCTION ....................................................................................................... 2

2.1 E-Government ................................................................................................ 2

2.2 E-Government: From Government to Citizens G2C ..................................... 3

3 CUSTOMER RELATIONSHIP MANAGEMENT AND CITIZEN RELATIONSHIP

MANAGEMENT ........................................................................................................ 4

3.1 CRM Framework Customer Relationship Management (CRM) ................... 4

3.1.1 Collaborative CRM .............................................................................. 7

3.1.2 Operational CRM: ................................................................................ 7

3.1.3 Analytical CRM .................................................................................. 10

3.2 Citizen Relationship Management (CzRM) ................................................. 11

3.2.1 CzRM Framework: ............................................................................. 12

3.2.2 CzRM Technology Framework ........................................................... 14

3.2.3 CzRM entities and functionalities ....................................................... 14

3.2.4 Benefits of CzRM ................................................................................ 18

3.3 Differences between CRM and CzRM ........................................................ 18

4 SOPHISTICATION OF THE CZRM PLATFORM ....................................................... 22

5 EVOLUTION OF CZRM ......................................................................................... 26

5.1 CzRM platform: Services and products ....................................................... 26

5.2 Example of 311 system in New York City (case study) .............................. 26

5.2.1 Implementing CzRM ........................................................................... 27

5.2.2 Services and products of 311 CzRM ................................................... 29

5.2.3 Impact of CzRM .................................................................................. 32

Page 3: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Table of contents 2

6 DRAWBACKS OF CZRM. ....................................................................................... 34

6.1 Cost .............................................................................................................. 34

6.2 Hyper-surveillance ....................................................................................... 34

6.3 Others Drawbacks ........................................................................................ 35

7 CRITICAL SUCCESS FACTORS ............................................................................... 36

7.1 Information Technology .............................................................................. 36

7.2 Organization ................................................................................................. 37

7.3 Political support ........................................................................................... 37

7.4 Top Management support ............................................................................ 37

7.5 Change Management ................................................................................... 38

7.6 Stakeholders culture ..................................................................................... 39

8 CONCLUSION ......................................................................................................... 40

9 REFERENCES ......................................................................................................... 41

Page 4: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Table of contents 3

Graphs

FIGURE 3-1 CRM STEPS [M STAR INC 2011]................................................................................................ 5

FIGURE 3-2 CRM FUNCTIONALITIES AND INTERACTION WITH DIFFERENT COMPONENTS [M STAR INC 2011]

............................................................................................................................................................ 6

FIGURE 3-3 CLASSIFICATION OF CRM FUNCTIONALITY [TORGGLER 2009] .................................................. 7

FIGURE 3-4 CUSTOMER TOUCH POINTS [EZENDU 2010, P. 5] ....................................................................... 8

FIGURE 3-5 ENTREPRISE MARKETING AUTOMATION [TORGLER 2009, P. 166] ............................................. 8

FIGURE 3-6 SALES AUTOMATION [TORGLER 2009, P. 166-167] ................................................................... 9

FIGURE 3-7 SERVICE AUTOMATION [TORGLER 2009, P. 166-167] .............................................................. 10

FIGURE 3-8 ANALYTICAL CRM, FIELDS OF APPLICATION [TORGLER 2009, P. 166-167] ............................. 10

FIGURE 3-9 TOWARDS A CZRM RESEARCH FRAMEWORK [SCHELLONG 2005, P. 4] ................................... 12

FIGURE 3-10 CZRM FRAMEWORK [SCHELLONG 2007, P. 176] ................................................................... 12

FIGURE 3-11 CZRM TECHNOLOGY FRAMEWORK [SCHELLONG 2007, P. 177] ............................................ 14

FIGURE 3-12: CZRM SYSTEM [KANNABIRAN, XAVIER, ANANTHARAAJ 2004] .......................................... 16

FIGURE 3-14 COMMERCIAL AND GOVERNMENTAL DRIVERS FOR USING CRM [SAREMI 2009, P. 23] .......... 20

FIGURE 4-1 RELATIONSHIP BETWEEN QUALITY AND COST [COLEMAN 2005, P.21] .................................... 23

FIGURE 4-2 SOPHISTICATION OF CZRM [SAREMI 2009] ............................................................................. 24

FIGURE 5-1 PRINT SCREEN OF THE SOFTWARE USED FOR 311 [SCHELLONG 2008] ...................................... 28

FIGURE 5-2 311 SYSTEM GOALS, OBJECTIVES, DELIVERABLES, % COMPLETE. [CITY OF MINNEAPOLIS

2006] ................................................................................................................................................ 31

FIGURE 7-1 STATE OF IT PROJECT MANAGEMENT IN THE UNITED KINGDOM [OXFORD UNIVERSITY,

COMPUTERWEEKLY.COM, 2008] ...................................................................................................... 38

Page 5: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Abstract 1

1 Abstract

The Customer Relationship Management has been the subject of many scientific and

social researches, it has been applied and implemented in a number of private

companies for years, and this has enabled them to increase their customer loyalty and

to have improved efficiency and customize their services to clients. On the other

hand, this service has only recently attracted attention as a concept for the

governments. The emergence of e-government and the general tendency to

transfer business concepts to the field of government will give birth to the concept

of Citizen Relationship Management.

Therefore it‘s necessary to present both concepts, enumerate the similarities and the

differences and focus on the evolution of the CzRM.

On the other side, and as mentioned above, the CzRM knows a lot of problems for its

evolution. Different categories of problems are being faced by the governments.

This kind of public platform must necessarily be accessible to all people for a high

efficiency rate. So economic and social problems related to the accessibility of the

online services for the whole territory and for each citizen (family) may occurs. Each

citizen is supposed to own and know how to use an electronic means to have access to

this platform.

Implementation problems due to the heterogeneity of the products proposed (letters

and forms, administered, election, civil status, military census).

The following questions will be answered in our analysis:

Which Importance of the CRM for the evolution of the CzRM? What are the

differences between CRM and CzRM?

What are the different problems encountered by the government for the

development of the CzRM?

What is the CzRM Critical Success Factor to avoid possible drawbacks?

Page 6: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Introduction 2

2 Introduction

2.1 E-Government

To present the Electronic Government, we will take these below definitions:

E-Government' (or Digital Government) is defined as ‗The employment of the

Internet and the world-wide-web for delivering government information and

services to the citizens. [United Nations 2010]

Electronic Government' essentially refers to ‗The utilization of IT, ICTs, and

other web-based telecommunication technologies to improve and/or enhance on

the efficiency and effectiveness of service delivery in the public sector. [Hai

2007]

The Gartner report, 2000 defines e-Government as, "The continuous

optimization of service delivery, constituency participation, and governance by

transforming internal and external relationships through technology, the internet,

and new media."

There are different supports for the e-government. We can first easily think to the

Internet (web services on a computer or mobile phone). But an electronic administration

project can also rely on any form of telematics as the Near Field Communication,

Bluetooth or RFID and the smartcard projects, possibly combined with biometrics and /

or to RFID technology (electronic ID card, biometric passport, etc.) as well as

procedures for electronic voting, or video surveillance which may converge with

computers, the establishment of databases and biometrics facial recognition.

SO, E-GOVERNMENT IS A DIGITAL INTERACTION BETWEEN THE GOVERNMENT AND

OTHER ENTITIES LIKE:

- CITIZENS

- BUSINESSES

- EMPLOYEES

ACCORDING TO THIS, DIFFERENT MODELS AND CAN BE SUMMARIZED AS

FOLLOWING: [Hai 2007]

Page 7: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Introduction 3

From Government to Citizens : G2C

From Government to Businesses : G2B

From Government to Employees : G2E

From Government to Government : G2G

From Citizens to Governments: C2G

On our analysis we will focus on the Government to Citizens model (G2C).

2.2 E-Government: From Government to Citizens G2C

In this model, the G2C model applies the strategy of Customer Relationship

Management (CRM) but in the public sector, named Citizen Relationship Management

(CzRM). By managing their citizen relationship, the government can provide the needed

products and services fulfil the needs from citizen.

So, G2C model covers all the services proposed by the Government to the Citizens in

order to offer to them a better quality of Service and for reducing administration cost.

To achieve such goals, the government uses the concept of a very well known service

on the private sector Customer Relationship Management called in the public sector:

Citizen Relationship Management.

On the next section, we present both concepts and the differences between them.

Page 8: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Customer Relationship Management and Citizen Relationship Management 4

3 Customer Relationship Management and Citizen

Relationship Management

3.1 CRM Framework Customer Relationship Management (CRM)

History

Managing the customer relationships is a very old practice: They used to check the

ability of the ancient artisans and traders to design, manufacture and deliver customized

and appropriate products for their clients. These artisans and traders remarkably know

their customers and have developed their business without having ever theorized about

the CRM. So, they established the practice of customer relationship management by

creating and managing Customized products for loyal clients and based on a long-term

relationship.

However, the concept of customer relationship meets a clear revival since the late

twentieth century and particularly since the early 2000s. The CRM "builds on the

principles of relationship marketing. Unlike transaction marketing which focused on the

selling process." [Wikipedia 2011]

Definition

Customer Relationship Management can be defined as a holistic management approach,

enabled by technology with a broad customer focus, to s tart, maintain and optimize

relationships and to make customers more loyal /profitable. CRM requires a customer

centric business philosophy and culture to support effective marketing, sales and service

processes. The main goal is to optimize the customer value within the customer

lifecycle. [Schellong 2005]

So, the CRM can be defined as a set of tools and techniques designed for businesses to

capture, process and analyze information related to the customers and prospects, in

order to retain them by offering the best service. Mainly with the expansion of the new

network technologies in different domain, new opportunities were created for the CRM

features. So, it allow companies a better understanding of their customers and earning

their loyalty by using their information in such a way to better understand their needs

and therefore better respond.

Page 9: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Customer Relationship Management and Citizen Relationship Management 5

CRM Components:

To implement a CRM solution in an enterprise is not just to install ad-hoc software, but

to change the organization of the whole enterprise.

Figure 3-1 CRM Steps [M Star Inc 2011]

Indeed the introduction of a CRM strategy requires a deep revision of its culture,

attitude, structural changes, skills (training) and behaviors; a redesign of the business

process of the company: marketing, IT, Customer Service, Logistics, Finance,

Production, Research & Development and Human Resources Management; and the

establishment IT infrastructure for a better controlled processes and investment in

human resources.

The CRM aim to provide technological solutions to enhance communication between

the company and its customers to improve the relationship with them by automating its

various components:

From a pre-sales point of view: it is marketing. The analysis of information

collected on the client allows the company to review its product specifically to

meet their expectations.

From Sales point of view: it‘s the prospecting efforts like management of initial

contacts, appointments, and raises.

Page 10: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Customer Relationship Management and Citizen Relationship Management 6

Management of customer service: the aim is to let the customer feels recognized

by the company and does not have to summarize his expectation and history for

each contact in the company.

The after-sales service, consist in providing assistance to the customer through

the establishment of different means of communication.

Therefore, a CRM aspire to allow each business sector to access the information system

to be able to improve the knowledge of the customer and to provide products or services

that best meet their expectations.

Figure 3-2 CRM Functionalities and interaction with different components [M Star Inc

2011]

Based on the components of a CRM system, a wide range of functions can be identified

as following:

Operational CRM

Collaborative CRM

Analytical CRM

Page 11: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Customer Relationship Management and Citizen Relationship Management 7

Collaborative CRM

Contact Management eCRM / Internet Customer Interaction

Center

Operational CRM

Mar

keti

ng

Au

tom

atio

n

Campaign Development

Sale

s A

uto

mat

ion

Order Management

Serv

ice

Au

tom

atio

n

Helpdesk

Compaign Execution

Sales Force Support

Complaint Management

Coampaign Controlling

Product Configuration

Service Requests

Analytical CRM Marketing Analysis Sales Analysis Service Analysis

Figure 3-3 Classification of CRM functionality [Torggler 2009]

3.1.1 Collaborative CRM

The Collaborative customer relationship management focuses on exploiting interaction

with customers through customer touch-points for enhancing customer self-service. It

covers the control and integration of all communication channels between the company

and its customers. [Ezendu 2010, p. 15]

Due to the use of different communication channels, it is possible to optimize the

exchange of information between the customer and the enterprise:

―eCRM and Internet: Online services for enhancement of convenience and cost

reduction (e.g. online availability checks, user tracking, real time customer

identification, virtual shop assistants).

Customer Interaction Center: Effective communication through many channels

including automated phone, email and internet.

Contact management: profiling customer information during customer

interaction. In most cases all customer data are recorded and stored in a central

database in order to provide these data for all customer-oriented processes in the

company.‖ [Torggler 2009, p. 166]

3.1.2 Operational CRM:

Operational customer relationship management facilitates communication with

customers and connects to customer touch points. [Ezendu 2010, p. 4] It offers tools

which support day-to-day business in the areas of marketing, sales and service (e.g.

Page 12: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Customer Relationship Management and Citizen Relationship Management 8

campaign management, sales force support or complaint management) by automating

all processes associated with customer relations. [Torggler 2009, p. 166]

Figure 3-4 Customer Touch Points [Ezendu 2010, p. 5]

We can distinguish three different general areas of Operational CRM:

1. Enterprise Marketing Automation: This involves application of technology to

marketing processes for provision. This facilitates appropriate campaign

planning, campaign engagement and campaign control in order to ensure a

continuous interaction with the customers. [Ezendu 2010, p. 10]

Campaign Planning: provide

support both in the planning of

marketing activities (e.g. objectives

of a campaign, dates and milestones,

process definitions, automatic

channel selections).

Campaign Execution: systems offer

applications which provide

appropriate content for the selected

communication channels. In

addition, the system can be used to

automate the execution and

management of campaigns.

Campaign Controlling: Campaign

controlling deals mainly with the

monitoring and analysis of on-going

or already completed campaigns.

The results of the analyses can be

used in the planning of later

campaigns.

Figure 3-5 Entreprise Marketing Automation [Torgler 2009, p. 166]

2. Sales Automation: This involves the whole sales process. It includes the

support of all sales activities associated with individual customer contact.

Customer Touch Points

Media

Physical

Phone

Wiki

Blog

Email

Snail Mail

Web Personal

Fax

Page 13: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Customer Relationship Management and Citizen Relationship Management 9

[Ezendu 2010, p. 7] It involves the order management Sales Force Support and

Product Configuration.

Order Management: A central

sales function of a CRM system is

order and supply management,

which covers the planning and

implementation of all sales activities.

The functionality palette includes

assistance in the processing of

customer requests (e.g. lead and

opportunity management), the sales

process (e.g. contract terms, pricing)

as well as the tracking of orders.

Sales Force Support: Sales force

support provides streamlining

opportunities for companies as order

entry and the planning of sales

activities can be done online and the

data is directly available for the sales

department. The sales force is also

supported by a function which

matches appointments and activities

in real time thus the available time

for each customer visit can be

optimally exploited.

Product Configuration: The main

purpose of

configurators is the individual

matching of products

and services to the wishes and

needs of a customer in

the context of a sales call.

Configurators can be used

both for the individual design of

the products and for

the presentation of product

combination possibilities or

product alternatives.

Figure 3-6 Sales Automation [Torgler 2009, p. 166-167]

1. Service Automation: supports the service department of a company, which is a

key success factor for the maintenance of long-term customer relationships. This

involves automation and coordination of all the service operations and customer

support processes which include service requests, product returns, customer

complaints, and enquiries. These services and support can be provided through

contact center, call center, web portal, or face-to-face interaction at a remote

location in the field. [Torgler 2009, p. 166-167], [Ezendu 2010, p. 9]

Helpdesk: The helpdesk is often the

first point of contact for customers in

service requests. The incoming

requests can be automatically

assigned to the appropriate staff (e.g.

on the basis of expertise). To find an

appropriate solution for the

customer‘s problem, various

functions are available such as

automatic problem identification,

case based reasoning or databases

Complaint Management:

Complaint management is an

important medium which generates

feedback from customers and can be

used to increase the customer

satisfaction through a positive image

of the enterprise.

CRM systems can assist the

complaint process through the

systematic collection and

categorization of complaints and the

Service Requests: With this

component of the service process,

the role of a CRM system involves

all service activities in the context of

a service center. The primary

objective is to offer a quick and

straightforward

solution to the customer‘s problem.

The information

system can support the

Page 14: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Customer Relationship Management and Citizen Relationship Management 10

with previous cases and solutions.

automatic management of customer

requests.

administration of service data

including historical requests and

service contracts as

well as the administration of the

service staff.

Figure 3-7 Service Automation [Torgler 2009, p. 166-167]

3.1.3 Analytical CRM

The analytical CRM consists of all actions, tools, methods and applications for

analyzing the data of the customer relationship. It‘s used to discover customer behavior

patterns, identify targets, potential additional sales, the value of customer life, etc. The

methods used in the analytical CRM are, among others, modeling, data mining,

scoring… [Torgler 2009, p. 167]

Referring to the areas in the operational business three fields of application can be

distinguished:

Marketing Analysis: The analytical

components in marketing deal primarily

with the evaluation of current campaigns.

To review campaign success, various

dimensions can be taken into consideration

(e.g. cross/upselling analyses, click-stream

analyses). In addition, functions which

measure customer satisfaction (e.g. churn

analyses, share-of-wallet analyses,

customer retention rate) are often included

in software packages.

Sales Analysis: Analyses of and

reports on sales activities provide

indicators for the optimization of sales

processes (e.g. sales-pipeline analyses,

shopping-card analyses, sales cycle

analyses) as well as indicators

concerning lost orders and future sales

potentials. Thus, these data represent a

key element in the planning of future

sales activities.

Service Analysis: The analyses of

service processes includes the

evaluation of the different services and

products (e.g. service cycle analyses,

damage analyses, quality analyses) as

well as controlling functions whose role

is to monitor the processes and staff

(e.g. human resources, product

shortages) in combination with

forecasting and warning systems to

avoid possible bottle necks.

Figure 3-8 Analytical CRM, fields of application [Torgler 2009, p. 166-167]

So the ―basic principles of CRM are personalization (products, information, services),

integration (planning processes, business process reengineering, product development),

Page 15: Evolution, drawbacks and how to resolve them. · 2011-12-13 · University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP

Customer Relationship Management and Citizen Relationship Management 11

interaction (channels, long term communication, surveys), and selection (identify the

top 20% of customers who make 80% of the profit).‖

―While identifying and retaining the most profitable customers in a commercial sens

cannot be the objective of public sector CRM, delivering high quality citizen oriented

public services is on the agenda of the government‖. [Schellong 2007, p. 175]

3.2 Citizen Relationship Management (CzRM)

The term Citizen Relationship Management is derived from Customer Relationship

Management. So it refers to a cluster of management practices, channel and IT solutions

that seek to use private sector CRM in the public sector. [Schellong 2007, p. 174]

When people see efficient systems in the business world, they tend to expect the same

from the government departments also. Governments around the world have to

recognize the need to provide better, more efficient public services in a more timely and

cost-effective way. They recognize the need to improve their relationship with the

citizens, and to put the citizens' needs at the center of all government thinking,

providing one-to-one services for citizens; services that cut across departmental

hierarchies and which the citizen can access 24 hours a day, seven days a week through

a single point of contact. [Kannabiran, Xavier, Anantharaaj 2004]

Being able to provide a single contact in response to all requests of citizens requires the

installation and integration of different new applications and systems. With the

implementation of a system of CIRM, the public offices have the ability to store and

access centrally to the huge amount of data available to the government on the citizens

of complete information to obtain a complete profile of the citizens. This should allow a

better understanding of citizens and their needs.

So, the main goal of CiRM is to create and optimize the relationship with citizens.

Citizens are a valuable asset in service planning and provision. A responsive, accessible

and citizen focused public administration that creates opportunities for participation can

build a close citizen relationship strengthening democracy and legitimating its role.

[Schellong 2007, p. 176]

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Customer Relationship Management and Citizen Relationship Management 12

3.2.1 CzRM Framework:

According to the previous definition of CzRM, the following steps will help the analysis

and the implementation of this citizen concept:

Figure 3-9 Towards a CzRM research framework [Schellong 2005, p. 4]

Figure 3-10 CzRM Framework [Schellong 2007, p. 176]

―According to the figures above and Schellong analysis, the CiRM is about:

Organization (change)

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Customer Relationship Management and Citizen Relationship Management 13

Culture

Processes

Structure

Responsibilities

Networked governance

Cross-boundary collaboration

Interactions

Channels

Participation

Service range

Offering

Insights

Analysis

Segmentation

Personalization

Performance measurement‖ [Schellong 2007, p. 176]

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Customer Relationship Management and Citizen Relationship Management 14

3.2.2 CzRM Technology Framework

Figure 3-11 CzRM Technology Framework [Schellong 2007, p. 177]

The above CzRM technology framework enables public managers to respond in an

accurate and appropriate manner to citizen inquiries. The public servants have access to

citizen profiles and knowledge base while they are in contact with them. Currently most

relevant channels are counter-one-stop service centers, inbound telephone, web self-

service, automated email response. [Schellong 2007, p. 177]

Administrators can build new and real-time databases for future orientation. By corss-

referencing citizen surveys with service usage can offer more personalized information,

services and identify emerging problems, process or policy improvements. [Schellong

2007, p. 177]

3.2.3 CzRM entities and functionalities

A system of CIRM, in the most advanced phase / sophisticated to be able to

deliver services to citizens in a proactive and participatory. The model proposed

by CIRM Kannbiran et al. distinguishes four fundamental entities that must

incorporate a concept of CIRM: [Kannabiran, Xavier, Anantharaaj 2004]

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Customer Relationship Management and Citizen Relationship Management 15

Government

Service providers

Banks and payment systems

Technology providers

The entity "government" includes different levels of government, legal system in force,

the objectives and roles of government. This entity's mission is to maintain an updated

database of information about citizens, including the list of classes of citizens for which

the administrative services are addressed. These data will be used by ―service

providers‖; this includes both government and private providers of variety of services

such as transport, health, education, grants and benefits. These service providers have to

interact for accessing information relating to different classes of citizens.

―Banks and payment systems‖ are also an important element of the system when it is

necessary to transfer money between service providers and citizens.

Finally, ―technology providers‖ are responsible for routing service delivery and

information through the system. [Kannabiran, Xavier, Anantharaaj 2004]

CzRM includes four main functionalities, namely Identify, Design, Serve and Protect,

which are very similar to CRM functionalities namely Marketing, Sales, Delivery and

Service.

As shown on the figure below we can distinguish these 4 functionalities:

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Customer Relationship Management and Citizen Relationship Management 16

The importance of these four functionalities under CzRM is described in the following

sections:

Identify

The first function, "identify", aims to recognize the citizen with a single login procedure

should then be possible to provide all the services desired in a personalized way. This is

similar to establishing product-market relationship in businesses. This requires a

centralized data previously stored locally by each department which resulted in waste of

time for both parties and unnecessary duplication of information. So the database should

be established in order to obtain an image as complete as possible with all the attributes

of a citizen, such as date of birth, full name, his employer, its license plate, blood type,

his travels etc. It would be easier to target specific groups of citizens in for some social

policies, including customizing the information and the services offered to citizens.

Banks and

payment

systems

Services

Provider

Government

Relation Management

System Citizen

Protect

Serve Design

Identify

Technology

Provider

Figure 3-12: CzRM System [Kannabiran, Xavier, Anantharaaj 2004]

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Customer Relationship Management and Citizen Relationship Management 17

However, the system must be able to manage access rights to information to ensure data

protection. [Kannabiran, Xavier, Anantharaaj 2004]

Design

It is also a feature attached to a system CIRM. The agencies are responsible for

designing of mechanisms to ensure that only appropriate classes of citizens get serviced.

This entity essentially includes data about the services/schemes and configures services

for distinct classes of citizens. It includes the creation and formatting of content

according to the citizens to whom the service, but also control that only citizens which

is intended service can access. [Kannabiran, Xavier, Anantharaaj 2004]

Serve

The third function for the system is CzRM "serve". The Service deliverers use a

combination of online and off-line technologies to create easy and versatile interface

with citizens. This function includes different means of communication available to the

citizen to obtain information or services: telephone, e-mail, Interactive Voice Response

and The World Wide Web. The "self service" is an important element that can be added

to this feature which allows citizens to register in order to subsequently set its services

and receive help and support at any time. Such a system not only reduce costs but also

improve the quality of service offered to citizens. . These technologies and tools

together are called Citizen Interface Centers (CIC). [Kannabiran, Xavier, Anantharaaj

2004]

Protect

The fourth function for the protection of citizens against risk that one of the benefits is

not or poorly delivered. It is important that the citizens can easily get help and support

in a quick and competent way that, especially when we are dealing with areas that are

very sensitive and important for the citizens such as health or safety. Thus, a call center

with a unique number to obtain information about all administrative services and make

complaints, comments and feedback is a solution that can be deployed. [Kannabiran,

Xavier, Anantharaaj 2004]

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Customer Relationship Management and Citizen Relationship Management 18

3.2.4 Benefits of CzRM

The benefits of bringing CRM approaches to public services are obvious. These are

some instances of these benefits:

―The data are captured only once and can be reused each time we need them.

The preferences of the citizens can be identified throught the analysis of their

past action.

Services can personalized based on geography, life stage, or specific eligibility

requirements

Applications, filings, payments, or other interactions can be simplified by

enabling them online.

Automatic notification can be made of license expirations, renewal due dates or

other time sensitive

Interactions can be transacted on-line.

Data can be shared across government agencies and levels in order to facilitate

dealings with the citizens.

Quick detection and prevention of identity theft and other fraud attempts can be

enabled. It‘s easier and quicker to detect such kind of fraud.‖ [Saremi 2009]

On the next sub-section we will present the main differences between the Customer

Relationship Management and the Citizen Relationship Management.

3.3 Differences between CRM and CzRM

As we have noted in previous sections, the concept of Citizen Relationship Management

is taken from the concept of Customer Relationship Management and even though the

two concepts seem very close to each other, in this section we will highlight the

differences between them.

The first difference between both concepts is that CRM is belonging to Private sector

and CzRM to the public sector. According to this, we can distinguish the following

differences summarized on the following table:

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Customer Relationship Management and Citizen Relationship Management 19

Private Sector Public Sector

Competition (Some) Monopoly

Market orientation Jurisdiction

Million relationships Millions / Billion relationships

Homogeneous product range / controllable

quantity

Huge number of heterogeneous products

(services) / uncontrollable due to political

decision making

Personalization ―One size fit all‖ approach

Segmentation (Pareto rule 28-80) Segmentation possible / no termination of

unprofitable customers

Budget / sunk costs Budget / sunk costs

Legacy Systems (IT) Legacy Systems (IT)

Poor service image

Organization culture Organization culture

Human resource (lack of knowledge,

salaries not competing with private sector)

Laws Laws

Accountability / Federalism

Political Influence (planning cycle)

Profit orientation / maximizing the

shareholder value

Democratic understanding / philosophy

Figure 3-13 Major differences between CRM in the private and the public sector

[Kannabiran, Xavier, Anantharaaj 2004]

For example, the CRM is based on market conditions competitive while the government

acts as a monopolist and governments are not involved in the acquisition of their

customers, who have no other choice but to turn to the Office issuing the public service

they need. Also, governments must follow the democratic philosophy, all the "clients"

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Customer Relationship Management and Citizen Relationship Management 20

of the State should be served, and not identifying and retaining only the most profitable

clients or citizens

Both entities are facing same pressure to deliver a good quality of services while the

driving forces are different. So we need to identify the driving force for using the CRM:

Commercial Drivers to Using CRM Government Drivers to using CRM

Increase top line by increasing revenue

and sales

Meet performance and service goals at the

lowest cost to taxpayers

Increase bottom line by reducing the cost

of sales and service

Budgetary pressures – improve quality of

service within a shrinking budget

Improve customer satisfaction to increase

customer retention

Improve citizen satisfaction at the lowest

Cost

Increase customer insight to maximize

revenue potential from top customers

Improve operating efficiency by focusing

the government‘s resources on the citizens

that need the services the most

Figure 3-14 Commercial and governmental drivers for using CRM [Saremi 2009, p. 23]

We can also note some other differences:

CRM systems rely heavily on databases and establishing connections to legacy

systems. To be efficient, information systems should be able to talk horizontally

and vertically on all state levels. [Saremi 2009, p. 22]

―Because the government is a monopoly provider of the services, the citizens are

ofter legally forced to use services such as registering a change address‖ [Saremi

2009, p. 22]. While on the private sector, we are in a competitive market where

the company is making a huge effort for prospecting and encouraging customers

to buy her products or use its services.

The aim of the private sector is maximization of profit and cannot be the object

of public sector. [Saremi 2009, p. 22] The public sector does not have profit as it

must do its utmost to ensure that citizens have access to the services offered by

the administration to facilitate their interaction with the various public bodies.

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Customer Relationship Management and Citizen Relationship Management 21

Different public administrations are not commercial competitors. They should

therefore have no compunction about sharing experiences and software and

interchanging data. [Saremi 2009, p. 22] Indeed, the various organs of public

administration should not act as competitors but must interact and the data

collected must be accessible in all public offices to facilitate service to citizens

wherever they are. In the case of the private sector, the various offices are acting

as competitors in the marketplace and their data are not exchanged because each

company does its best to retain and get profitable customers.

The organization approach should toward to be citizen-oriented. [Saremi 2009,

p. 22]

Differential marketing, offering a different grade of services to different is

undemocratic, or violate regulations regarding transparency and fair treatment of

citizens. [Saremi 2009, p. 22] Every citizen should get the same service from the

government, which is not the same thing as the businesses.

The public service missions defined in political terms and not entrepreneurial;

[Saremi 2009, p. 23] Which is not like the private sector where the missions and

decisions are taken by the shareholders or the direction of the company.

Prosecution of general interest to the public service against the special interests

to the private sector.

The responsibility of a public service to the government or citizens is different

from the liability of corporate executive facing shareholders who expect profits.

As we have seen, even if the Citizen Relationship Management seems to have the same

concept as the CRM, a lot of differences were identified between them according to

their different sector, domains and notion of clients.

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Sophistication of the CzRM platform 22

4 Sophistication of the CzRM platform

Governments nowadays are moving increasingly to the proposed services via new

technologies. The basic model established in the previous sections will allow us to

analyze better the evolution of CzRM and talk about citizen engagement. Engaging

citizens in CzRM process is a sound investment in the design and delivery of better

public service and a core element of good governance. To achieve best value for the

public corporation of the Government, policy makers must understand the importance

of involving citizens in the design and implementation of service delivery. [Zamanian,

Khaji, Emamian 2011, p. 8912]

The Organisation for Economic Co-operation and Development (OECD) (2003) has

developed a three stage maturity model for government engagement with citizens:

Stage 1: Information stage; a simple one-way relationship in which government

delivers information to citizens.

Stage 2: Consultation stage; a two-way relationship in which citizens provide

feedback on issues defined by government.

Stage 3: Active participation stage; a collaboration in which citizens actively

shape policy options, but where government retains the responsibility for final

decisions. [Zamanian, Khaji, Emamian 2011, p. 8912]

Stage 1 Government Citizen

Stage 2

Government Citizen

Stage 3

Government Citizen

According to the previous analysis, we remark that most government website start off

by providing basic information for the citizens only. This automation is used for cost

minimization, effective governance, and efficient administration. This is related to the

first stage, defined as a simple one-way relationship and its goal is to provide

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Sophistication of the CzRM platform 23

information for their citizens. There is no interaction between the citizen and the

agency.

The increase in demand for quality services as well as the advance in technology will

force governments to be more citizen-centric.

In the citizen-centric stage, the government will try to provide various services to their

citizens by using multiples channels with their different department and should develop

their network capacities. So, at this level, agencies will enable to people an easy access

and consolidate the various offers. [Esichaikul, Komolrit 2005, p. 323]

The multi-channel service within CzRM provides a higher quality of service at a lower

cost.

Figure 4-1 Relationship between Quality and Cost [Coleman 2005, p.21]

As we can remark, this figure show that a providing a higher quality of service in CzRM

tend with a lower service at a lower cost. This argument is that personal assistance types

of service like face-to-face contact or telephone are expensive, whereas self-service on a

website is less expansive.

The next level involves sophisticated data-mining tools to analyze and proactively

anticipate the needs of citizens, customized to their individual needs. Also citizens will

participate in the setting of public policies and regulations. This phase transaction is a

proactive approach with citizens in which new opportunities are developed to increase

the democratic participation of citizens. In addition, governments and politicians can

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Sophistication of the CzRM platform 24

better assess the consequences of their decisions on people and react accordingly.

[Esichaikul, Komolrit 2005, p. 323]

Figure 4-2 Sophistication of CzRM [Saremi 2009]

Facilitate communication and make information available independently of space and

time where we are. To achieve this point the technology can play an important role as a

catalyst to bring forth a more democratic world.

For this the following conditions are absolutely necessary for a meaningful and quality

e-consultation: ―

• Quality in e- participation can also be attained by involving named individuals and

allowing sufficient time period for participation, surveys, and responses to take place.

So number does not necessarily mean that a great number of persons involved in the act.

• Each citizen should have an access to the technology and provide equality for

participation for all of them. Providing technologies is important but also taking down

the barriers of language and abilities is very necessary for the future use of CzRM. It‘s

also important to integrate different systems and technologies to enable the participation

through letters fax or phones or other means of communication.

People should be able to access background information, view the comments of others,

and decide on their own.

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Sophistication of the CzRM platform 25

•The database needs to be sophisticated in order to organize, reference and analyses the

large volume of data in responding to participants. The interactivity should pertain to

participating getting feedback within 1-2 weeks. Moreover, participants should be

allowed to set agendas, make responses, and defend their stance, sentences and their

ideas.

• Quality will also be determined by the perceived effect. Any form of participation

must be clearly defined with specific purposes. People can track government thinking

and decision-making through a consultation process, which will bring about real

transparency and accountability. The process needs to be evaluated in terms of who

participated, why they participated, how they felt, the effectiveness of their

participation, and the outcome, to keep a record and to make improvements.‖

[Esichaikul, Komolrit 2005, p. 324]

After describing the different maturity stage of the CzRM and presented the different

level of sophistication and involvement of the citizens in the public sector, on the next

section a description of the evolution will be presented with a case study as a base.

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Evolution of CzRM 26

5 Evolution of CzRM

The CzRM concept has not been studied in details by experts or even been applied to

achieve its full potential. It is quite an emerging concept in public administration.

[Schellong 2008, p.68]

However, the best way to set up an efficient CzRM system varies from country to

country and it also depends on the will or the possibility of citizens to use electronic

means to communicate with their government.

The objectives also vary greatly: as we will see with the example of New York City

311, never a government has gone so far in the use of CzRM.

5.1 CzRM platform: Services and products

CzRM services are all about citizens‘ preferences and expectations of public services

and administration since the only goal for CzRM is the increase of the citizens'

satisfaction. But it is quite impossible to enumerate services due to the lack of a

common conceptualization of CzRM. It implies that almost all the services and products

provided by the government could be included into this chapter, as long as they are

integrated into a largest concept. The chapter 5.2.2 gives some examples of what an

accomplished CzRM project can provide to the citizens.

5.2 Example of 311 system in New York City (case study)

Given the size and complexity, the City of New York (NYC) is currently "the biggest

CzRM attempt in the world on the municipal level" (the city‘s population is 8.2 million,

with an additional 19 million in the surrounding metropolitan area). In addition, "New

York’s public administration carries out tasks that are usually the domain of higher

jurisdictions". [Schellong 2008, p.68]

The 311 CzRM initiative is a study object of choice, according to the number of citizens

to serve and the complexity of NYC public administration.

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Evolution of CzRM 27

5.2.1 Implementing CzRM

All began with the administration of Mayor Rudolph Giuliani in the late 90s: eager to

see the 911 call volume reduced, he proposed a dedicated number for non-emergency.

At that time, it appeared that the effects on the 911 would only be symbolic (5%

decrease), thus the New York Police Department (NYPD), which had jurisdiction over

these calls, put its veto.

It's only in 2002, when Michael Bloomberg became mayor, that the project was

launched. He stated :

"“Open Government” is not just a slogan; it’s the only effective way to deal with

complicated problems. As part of “Open Government,” we will create a Citizen Service

Center that will allow New Yorkers to reach all services by calling one phone number,

311. This will make city government accessible to every resident of this great city. Right

now, New York City operates more than 40 separate call centers and hotlines, which

can be an obstacle course for the average citizen. There are 11 pages of listings in the

phone book under NYC. No one can be knowledgeable enough to find his or her needle

in a haystack that big! It will take time, but eventually New Yorkers will have only two

numbers to reach government: 911 for emergencies and 311 for everything else."

[Schellong 2008, p. 93]

The aim of the team project and the mayor's intentions were that the 311 should offer

directory assistance, information provision and service request intake. It was supposed

to allow citizens to report problems (e.g. dead animals or holes on the street). The 311

system was supposed to "route the information to the appropriate agency, and the

caller is provided with a tracking number to follow up on the status." [Schellong 2008,

p. 95] They planned a total budget of $25 million for that project.

One of the first prerequisite was that they had to make sure that the hardware and

software were compatible with the legacy systems released around the city. Siebel was

chosen as the best software solution, basing on criteria such as the scale of operation,

the knowledge management, the telephony integration, the multi-channel management,

etc.

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Evolution of CzRM 28

Figure 5-1 Print screen of the software used for 311 [Schellong 2008]

The New York City Department of Information, Technology and Telecommunications

(DoITT) began the transition to 311 on September 30, 2002. Departments with the ten

largest call centers and over 250 employees were gradually added to 311. They planned

to disconnect the old agency service numbers over time. [Schellong 2008, p. 96]

Mayor Bloomberg officially launched the 311 operations on March 23, 2003. A wide

marketing campaign was organized for the purpose of informing people about 311, and

to try to "change the citizens’ expectations about government interactions" [Schellong

2008, p. 97] and finally to try to decrease 911 non-emergency phone calls. Since the

311 service went live it has received almost 14 million calls a year.

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Evolution of CzRM 29

5.2.2 Services and products of 311 CzRM

Besides the phone channel, citizens can use physical service centers maintained by the

various agencies. The Web portal (nyc.gov), the SMS service (311NYC), Skype, the

311 Blog, the TTY, Twitter or the iPhone application are (for the moment) the

numerous ways to interact with the government. [NYC gov 2011]

The 311 system offers citizens access to information and online services such as e-

payments getting financial resources and public benefits, applying for a job, getting

licenses, permits or certificates, complaining about: heat, noise, illegal burning, traffic

light, dead animal removal, potholes,..., subway/rails/bus services, or simply paying a

parking ticket. "One-stop shop approach can also be found on the Web portal." [NYC

gov 2011]

It is difficult to be exhaustive in view of the fact that the number of services is important

However, the following chart shows concisely the goals and objectives of a 311 project

(in Minneapolis), and its degree of completion. We can therefore have a better vision of

what can be improved, and mainly: what could be the upcoming services provided by

the city.

Goals Objectives Deliverable %

complete

Improve citizen

satisfaction through

ease of use and

access to 311

A central body in

the city handles

citizen questions and

concerns

One telephone number to

access services

100

Simplified access to

city non-emergency

services and

information

24x7 access to city services 50

Phone, web, e-mail,

fax, walk-in, and

kiosk access to city

services

Service level expectations

are set at the time of service

request

90

Citizen satisfaction

with city services is

improved

Requests for information are

resolved by 311

90

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Evolution of CzRM 30

Citizen satisfaction is

measured and shared

between 311 and city

departments

Tracking number given

to callers to track request

through completion

90

Consolidate existing

resources/develop

efficiencies

Obtain cost

efficiencies to fund

ongoing operations

Pool existing resources

in a central call intake,

management, and resolution

system

90

Central source of

real-time information

and history of activity

Consolidate existing call

centers and voice response

units

60

Improve service

request routing and

tracking

Improve service

request traceability

Requests for service are

tracked by a universally

deployed tool

75

Improve internal

request handling

Service requests are

routed to the appropriate

department

90

Integrate phone, web,

counter, and kiosk

services

Service requests can

be routed for

crossdepartmental

collaboration

25

Simple information requests

are handled by 311 rather

than transferring to other,

more costly, department

experts

90

A central data repository

about service fulfillment and

historical data by property is

created

50

Improve city services

through results

management

Monitor timeliness of

service delivery

Record and track responses

to improve processes,

people, and technology

25

Provide accountability

for timely service

Develop performance

measures to support

implementation of a

resultsbased

accountability model

75

Use data to facilitate

long-term planning

and development of

goals and priorities

for the city

Develop enterprise standards

and eliminate shadow and

duplicate systems by creating

a single front-end CRM tool

75

Improve management

reporting capability

(trends, service peaks,

cross-functional

analysis)

50

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Evolution of CzRM 31

Use 311 to improve

homeland security

Offer accurate

information about

disaster situations:

where to go for help,

what to do, where to

find shelter, how to

find a missing person

Locate facilities in another

precinct so 311 can be

the secondary emergency

response site in case the

main 911 center is destroyed

100

Act as the single point of

contact during a disaster

90

Use to dispatch emergency

personnel to emergency sites

in case of disaster

90

Improve 911/

dispatch services

Handle

nonemergency

questions and keep

911 open for true

emergencies in a crisis

Reduce nonemergency calls

to 911 by 33%

25

Eliminate the need

for police dispatch

for low priority calls

(10,400 per year)

Offload nonemergency calls

to 911 (1/3 of all calls)

50

Decrease police

dispatches to nonemergency

situations

Provide real-time

information to first

responders—reverse 911,

e-mail listserv, etc.)

25

Improve ability

to respond to 911

emergency calls

Expand 911 services to

nearby suburbs

0

Develop 911

emergency overflow

and backup capability

90

Improve policing

capabilities

Offset reduction in

CCP/Safe officers

Track suspicious activity

and provide a repository

of problem properties by

address

100

Track and flag

emerging trends in

activity, including

disease outbreaks and

suspicious activity

Take Police E-Report calls

to improve customer service

100

Streamline business

processes to offset

reductions in Public

Safety staff

Provide real-time

information to officers to

enhance tactical response

and non-emergency requests

0

Figure 5-2 311 System Goals, Objectives, Deliverables, % Complete. [City of

Minneapolis 2006]

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Evolution of CzRM 32

We can see that the system is already working, but it can (and will) always evolve and

be improved: the people's expectations and the technologies change very quickly.

In this regard, we can take the "Street Conditions Observation Unit" (SCOUT) as an

example of the improvements to the NYC 311 service. SCOUT was quite recently

introduced by the mayor and costs the city about $1 million a year [Rivera 2007]. A

squad from five different city agencies patrols the streets to report any kind of issue

(e.g. damaged city property, homeless people in need of aid, etc.). Each member has a

GPS and a Smartphone to enter the information directly into the 311 system. [Schellong

2008, p. 98]

More recently (January, 2011), The Bloomberg administration announced a new

Internet tool for the New York City citizens that encourages people to do what they like

the most: complain. Stephen Goldsmith, the deputy mayor for operations, provided a

citywide map that references all the 311 service requests, which can be viewed by

location (Council District, Community Board or address) as well as by type (a noise

complaint, or property damage). [NY Times Blog 2011]

This new tool will allow the identification of the most "dangerous", "noisy", "dirty"

districts (even houses). One can imagine (despite the "Privacy Policy 311" supposed to

guarantee the respect of private data [NYC gov 2011]) that such tools will eventually

give the identity of each "problematic" persons, as well the place where this person

lives. This is definitively a slippery slope, see chapter 6.2 on the hyper-surveillance

about this subject.

5.2.3 Impact of CzRM

It's a fact that government is a bigger organization than any private corporation: the

services provided by a government exceed from far those found in the private sector (in

term of quantity and complexity). [Schellong 2008, p. 102] It is therefore quite

impossible to know the profits, especially as they are often intangible.

However, in December 2004 Mayor Bloomberg stated: “New York City’s 311 system

not only provides everyday citizens with better access to government but also makes

government more accountable and better able to respond to the changing needs of the

population.” [Schellong 2008, p. 100]

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Evolution of CzRM 33

Nevertheless, we can give some examples of specific improvements related to the

implementation of 311 in NYC, including several agencies working hand in hand with

this system.

E.g. the Department of Transportation (DOT) started changing its strategy after it had

analyzed the information given by 311 system. The potholes are now filled thanks to the

data provided by the 311 callers. DOT used to organize itself by setting a fixed schedule

to repair the streets, if a pothole was announced in an area scheduled for some other

time, those potholes would stay unfilled for a month (or more). After the change, even if

citizens report about three times more potholes than in the past, they managed to fill

them within 18 days or less by planning directions more efficiently and reorganizing

their resources. [Schellong 2008, p. 101]

Another example came after an analysis of the citizen call data which revealed that

noise was the number one complaint; the Bloomberg administration subsequently

legislated and actualized the city‘s 30-year-old noise law. [Lueck 2007]

With an operating budget of $25 million, the government has never tried to save money

with its 311 project, it was only a tool to improve customer/citizen service, even if it

"may lead to budget or responsibility gains for some departments" [Schellong 2008, p.

132] (see the DOT example). Finally (according to [Schellong 2008, p. 130] ) we can

say that if the CzRM can reduce the complexity of interactions between citizens and the

government, it will definitively increase the citizen's trust in government.

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Drawbacks of CzRM. 34

6 Drawbacks of CzRM.

The disadvantages of the CzRM are more or less comparable to the CRM since the

goals are similar: collect data to understand customers / citizens better, and thus

improve the way to serve them.

6.1 Cost

Sort, copy and scan a prodigious amount of data is very expensive, and this is without

taking into consideration the tools used to collect this information (software developers,

system administrators, maintenance people to keep the software running, call

centers,...). Moreover, the result is very difficult to quantify and sometimes it is even

unsatisfactory. [Gartner 2011]

The use of new tools involves significant costs for training, such as the commitment of

professionals to train employees of the group and the expected loss of productivity

during this training period. [eHow.com 2011]

It is also essential for a governmental system to keep backups of all this information,

and have absolute security for the protection of data. The loss of personal information

by government would be disastrous for the credibility of the people in charge. The

example of the "buzz" caused by the computer failure in the canton of Vaud during the

last federal elections in October 2011 is the proof: people expect from government a

reliable system.

6.2 Hyper-surveillance

The hyper-surveillance problem can be attributed to e-government as a whole. Citizens

will be forced to have a permanent electronic contact with their government, once the

technological barrier to entry resolved. We can also expect that the government will

provide software particularly keen on personal information, resulting to a lack of

privacy for the citizens. We are still far from this scenario, at least in Switzerland, but

this trend is being confirmed with the arrival of the biometric passport. Strict rules

should be set up to avoid a totalitarian system. [Singel 2007]

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Drawbacks of CzRM. 35

Moreover, if the public administration collects and analyzes the data, it's obvious that

the domain of public administration will be politicized by CzRM. "Data ownership,

control and validity or trustfulness of results could be a central battleground in the

future." [Schellong 2008, p. 143]

6.3 Others Drawbacks

This concept is theoretical and there are a lot of extern factors that could perturb the

application of such system. A very important point is for example the human resource

element. In fact, the deployment of CzRM system needs a huge change in an

organization and culture of these two entities, government and people. The employees

working in the administration should be trained, as mentioned on the previous sections,

to work on the system and the citizens should evolve while facing a change of mentality

in their relationship with the government.

It is also important to note that the heterogeneity and uncontrollability of the services

offered by the system could represent a problem. Indeed, a various offer of services is a

good aspect of the CzRM but it might, also, represent a problem as the system will

interact with a huge number of domains and services (letters and forms, administered,

election, civil status, military census). We could also say that these services are

uncontrollable due to political influence and changes. This will require a high level of

customization and high flexibility of the system.

Many disadvantages could still be attributed to the implementation of the CzRM

system, as evidenced by an abundant literature on the subject. However, it is less about

the effectiveness of the system than the inability of managers or the lack of commitment

of employees in charge of its implementation. We can refer to Critical Success Factors

(next chapter) for the main points to focus on, but it is obvious that if we ignore one of

these factors, it can turn into a Critical Weakness/Failure Factor and lose the benefits of

such systems: "The key understanding it's preparation for a successful roll-out that can

eliminate the drawbacks." [Justin Hitt 2006]

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Critical Success Factors 36

7 Critical Success Factors

Critical Success Factors (CSF) can be defined as ―the limited number of areas in which

satisfactory results will ensure successful competitive performance for the individual,

department, or organization‖. [Rapidbi 2007]

It should be noted that the CSFs are not the same in public administration or in the

private sector. One simple explanation is that the resource allocations are directly

influenced by politics, not by the laws of business. The project manager must first

identify the factors that may influence the course of the project, to ensure the

achievements of these objectives from the beginning. [Garner 1986]

It is specified in the CSF definition that these factors should be limited to a small

number, in order to focus on the factors having the greatest impact on the project. D.R.

Daniel evokes more precisely 3 to 6 factors [Daniel 1961]: in this work, six of them will

be put forward, each with a different weight depending on the chosen project.

7.1 Information Technology

Everything about CzRM is information technology-driven. In fact, CzRM is software

extending across all the governmental structure. When a government decides to move

towards a citizen-oriented strategy, it must expect to accumulate a large amount of

digital data, whether in back-office (statistics, accounting, logisitics, back-end

databases,... ) or in front office (call centers, programs to interact with citizens)

[Reynolds 2002, cited by Azari 2008]

However, to be effective, Information Technology (IT) must have some key features in

order to provide adequate service to its citizens. IBM [IBM 2001] generates two main

features to increase reliability:

Flexibility

You should know that most of the software dedicated to CzRM are designed by private

companies (i.e. Microsoft), it is mandatory to ensure that the various programs

purchased are compatible with each other. Citizens, other governments, suppliers and

partners must be able to interact on the same technology base.

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Critical Success Factors 37

Scalability

e-government (by extension the CzRM) is taking an increasingly important place and

the technical means should follow this growth. We can imagine systems designed to

support the increase of data.

7.2 Organization

To be effective, the government's organizational structure need to be understood.

Government which want to be more "citizen centric" doesn't need to integrate only

citizen service functions. A high degree of cross-functional collaboration is requested in

order to serve citizen in a better way: the different departments have to work closely

together and have to improve therefore the internal communications.

7.3 Political support

It is obvious that without the support of politics, any governmental project is doomed to

failure. It is therefore very important to ensure that no political shift will interfere with

the course of a CzRM project. In addition, through its process, it can enhance the

application of democracy in allowing "transparency and accountability" inducing the

citizens to participate more fully in political life. [ISEING.org 2003]

7.4 Top Management support

The Top-Management is one of the crucial step to achieve a project. Paul Dorsey even

states that in all studies of information systems conducted so far, the support of Top

Management is the major reason for the success or the failure of any project. [Dorsey

2001] Figure 7.1 also puts forward the "Critical Failure Factors" research into the state

of IT project management in the United Kingdom. It proves (if needs) that without the

full investment (both on a financial and human aspect) of the Top-Management, the

project may stop at any time during its life cycle.

In fact, an IT project begins with an executive-level manager / project leader. This is the

person making the bridge between Top Management and developers + other team

members. His role will be to inform the Top Management about the progress of the

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Critical Success Factors 38

project and hire qualified people for its proper process. His commitment through the

development of the system is crucial as it will directly influence the Top-Management.

[Mooney, Mahoney, 2008 Wixom]

1. Lack of top management

commitment

2. Misunderstanding of scope/

objectives/requirements

3. Lack of client/end-user

commitment/involvement

4. Changing scope/objectives 5. Poor planning/estimation 6. Inadequate project management

7. Failure to manage end-users

expectations 8. Conflict among stakeholders

9. Change is senior management

ownership

10. Lack of adequate change control 11. Shortage of knowledge/ skills in

the project team

12. Improper definition of roles and

responsibilities

13. Artificial deadlines 14. Specification not frozen 15. New or radically business

process/task

16. Employment of new technology 17. Poor control against target 18. Number of organisational units

involved

19. Lack of effective methodologies 20. Staff turnover 21. Multiple vendors

Figure 7-1 State of IT project management in the United Kingdom [Oxford University,

ComputerWeekly.com, 2008]

7.5 Change Management

As said in chapter 7.2, the implementation of CzRM technologies implies changes to the

organizational structure. CzRM initiatives require global view and every employee must

understand the purpose and the changes that CzRM will bring. [Saremi 2009]

Implementation of CzRM means that some jobs will be significantly changed, that

training program and on-going education will be organized, and that cultural changes

will be required.

It is clearly a people oriented effort and the adaptation of all the workers need to be

followed by the Top-Management to avoid change resistance from employees.

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Critical Success Factors 39

7.6 Stakeholders culture

Companies using a CRM system often target a specific group of clients (rich / young /

Educated / catholic /...). By comparison with CzRM, even if sometimes the government

must also focus on a particular segment of its population (accident and occupational,

unemployment insurance, admission to the University,...), the majority of services

includes all citizens, whether they are digitally educated or not. Therefore, "e-

government implementation may require a change in public culture and new methods of

providing services" [Cohen, Eimicke 2002]. For this purpose, one of the priorities is to

overcome the digital divide. Digital divide refers to "the gap or imbalance that exists

between those who have access to Information and Communications Technology and

also to the unequal access of resources." [ICT4D 2008]

Many have feared grave consequences for those unable to access the power of the

Internet (Seniors that tend to be excluded from the digital revolution or lower

socioeconomic groups who are excluded through the high complexity [Schellong 2008,

p. 130]; however, recent reports suggest that this divide is narrowing, rather than

expanding. [NTIA 2000]

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Conclusion 40

8 Conclusion

After many pages trying to define, explain, develop or give examples on the CzRM

system, only one thing is certain - CzRM is not definable in one word: it is not just a

"hardware" or "software", it is not just an advanced Website, it is not just a "call center".

It is a full integration of the following elements/components: the culture of the

organization, how the organization is structured, IT, people, it is a whole in order to

meet the citizens / customers . Now it is necessary to have the right tools to achieve it,

and an adapted culture of organization to obtain appropriate results. CzRM is not only

one thing, it is a lot! [Schellong 2008]

Communication between the various entities in a society has become very important in

recent decades; in fact, we are living in a world where it has become necessary to

manage the large flow of information for a better customer / citizens relationship

management.

As we have seen throughout our analysis in this paper, the Customer Relationship

Management, which tends to optimize the relationship between customer and

businesses, forms the basis of Citizen Relationship Management which provides better

services for citizens to Government to create more participatory and closer relationship

between the government and their citizens.

However, certain factors must be considered as the government should keep in mind its

public status and that persons that they are dealing with are citizens and not customers.

The evolution of the services offered should not adversely affect the core values and

drivers of the public sector.

Finally, an optimal use of this system also requires an online access for all these people,

by taking barriers down and also by improving the capacity and skills of people either

by training people, recycling, and a strategic educational system in general .

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References 41

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