New technologies are changing the way we conduct business, communicate with each other, build personal and commercial relationships, and even the way we live. People have access to more instant information and are using that information to make decisions about everything from child rearing to health care to personal finance. Businesses, also, have access to more information and technology than ever before and are using these tools to build brands, increase efficiency and profits, and attract-and keep-customers.
Today’s vision of a new and bigger “network of networks” consists of a network that not only transports existing voice, data and video applications, but also administers and monitors services that increase the reliability, security, quality of service and interconnectivity between applications and platforms.
This new network needs to be capable of fulfilling communication needs in an intelligent and proactive way-integrating business policies as well as user needs and preferences. These advanced services will enable the network to adapt itself in real time to provide the security, bandwidth, reliability, and quality that new business applications demand.
From ERP to CRM
Enterprise resource planning (ERP) is a business management system that integrates all facets of a business, including planning, manufacturing, sales, and marketing. As the ERP methodology has become more popular, software applications have emerged to help business managers implement ERP. The traditional approach of ERP applications has focused on optimizing and automating business processes. This requires a communication network capable of supporting and integrating different types of systems and platforms.
Usually, the ERP applications were designed to be integrated in a traditional data communication network environment. Integrating a different source of information, such as video, documents or images, required the creation of new customized interfaces. However, the interaction with processes that involve the use of various communication tools-such as the telephone, facsimile, e-mail, personal organizers or personal paging systems-had not been taken in consideration within the basic scope of work.
Customer relationship management (CRM) represents the next step. It involves the total integration of an enterprise’s business applications and processes, information sources and communication channels. In essence, CRM joins the enterprise connectivity and automation of the ERP applications with the interactivity and content richness of the communication systems. At the same time, the CRM approach aligns all enterprise operations around the customers.
“Anymedia” Integration The “Anymedia” system by Avaya Communication allows a business to integrate its sales, support and service operations under a unified communication environment. A customer interaction center supported by an “Anymedia” network is capable of handling each and every one of a bank’s customer requests, regardless of the communication device used by the customer. The work experience always remains the same, without a need to learn new names, web addresses or telephone numbers.
This network environment avoids task duplication and lowers the cost of operation, thus turning the contact center into a profit center-instead of a cost center. Furthermore, this type of network also supplies management with detailed information not only on statistics about the operation of the customer interaction center, but also on the customer profile, including their preferred communication method, so they can use this information for future reference. This is the first step towards creating “markets of one” so banks can market new products and services to customers who are most likely to purchase them.
Tri-dimensional CMR Approach
Communications tools are not the only elements that need integration for the ERP applications to be part of the CRM model. A complete approach to the full integration of both concepts includes all the back office applications, the classic ERP applications, supply chain management applications, and the sales force/front office applications.The CRM model explains and defines interactions between applications and platforms and should include modules for intelligent work management, customer interaction, and enterprise infrastructure. CRM is the component that provides real value and business sense to the series of transactions that happen between the different business elements.
Avaya’s CRM Central 2000 is a software tool that allows users to design intelligent interfaces between different applications (back office, front office, databases, messaging systems, directory services, network resources, etc.). With the software, it is possible to create, in and easy and intuitive way, the workflow that each commercial or services transaction has to follow from the first customer contact to fulfillment. For customers of banks that implement the system, the first perceived change is a sense of increased intimacy and confidence with bank agents. There is only a single point of contact to fulfill all their needs. There is no need to jump from department to department to get the service or support that the customer is looking for. It doesn’t matter what type of process is involved, whether it’s sales, service or technical support. It doesn’t matter what type of communication device is used, whether it’s a telephone, fax, e-mail, or web page. And it doesn’t matter what time of day it is.
This is possible because the bank has a detailed record of each of the customer interactions. These records build a database that becomes a source of competitive advantage, not only because it has detailed information on the customer profile and behavior, but also because it allows the bank to look at each transaction at any moment in real time. This system acts as a powerful microscope that allows the bank to identify process bottlenecks, delivery delays, changes in the business environment, new business opportunities, etc. This can be translated into exceptional customer service, more and better sales, new customers, lower operating costs, and generally speaking, an increased organizational efficiency and profits. Financial institutions interested in implementing this work model have to be aware of the following points:
CRM is a concept, not a product. The customer interaction centers, front and back office applications, databases, workflow management applications and professional services that are needed to integrate the complete solution are only some of the elements of a strategy or work philosophy. The bank has to adopt the entire strategy with the objective of optimizing its operation and increasing its competitive advantage.
No single company has all the elements needed for a complete CRM strategy. Companies such as Microsoft, Sun Microsystems, ORACLE, SAP, Siebel, IBM and Avaya provide only some of the required elements for successful CRM implementation. Partnering with the right companies is the key to success.
CRM has an implied commitment by the institution to align all operations around customer service. This statement seems obvious, but in reality it may mean a series of operational changes within the institution. Aligning the institution around the customer means changing the way it works and builds relationships with suppliers, partners and employees.
Consultants and global system integrators–supported by software, hardware and services vendors-will play a major role in about 80% of the CRM strategy implementations. A deep knowledge and understanding of the customer business and the market environment is imperative in the CRM world.
CRM changes the way businesses, organizations and institutions operate, by integrating different applications and databases to provide customers and suppliers with a consistent work experience. The importance of the integration of the contact points with the ERP applications and enterprise connectivity systems is critical. Joe Outlaw of the Gartner Group predicts that by the year 2001, 25% of all customer contacts will be through the Internet, e-mail and World Wide Web and that by 2003, the enterprises that don’t support customer-preferred communication channels will not succeed.
Recognition of the need for integration of applications within the business model is changing the way business designs and implements their communication networks. According to Dr. Lynn Denoia, vice president of OnSource Consulting, “a third of the enterprises recognize that their competitive position in the marketplace depends on having the maximum advantage of their business applications through the network. They will be supporting new integrated applications, such as the ERP applications, or web-enabling their critical business applications.”
In a recent report presented by Dataquest, it was found that the implementation of an integration strategy of business applications (such as ERP and CRM) has already been started in 59% of the companies listed in the Fortune 1000. The report also shows that the companies’ preference is to select “best-of-breed” applications, instead of getting everything from just one vendor. This preference shows the market demand for professionals and technicians to manage the consulting and integration of the enterprise solutions.
Roberto De La Mora is the Definity® Solutions offer manager for the Caribbean and Latin America region at Avaya Communication (formerly the enterprise networks group of Lucent Technologies).