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Teknologi​ ​och​ ​Samhälle 

Datavetenskap 

Examensarbete 

15​ ​högskolepoäng,​ ​grundnivå 

Transitioning​ ​to​ ​a​ ​new​ ​Customer​ ​Relationship​ ​Management​ ​System: 

Challenges​ ​and​ ​Recommendations

 

Per​ ​Hansson 

Anton​ ​Persson 

Examen:

​ ​Kandidatexamen​ ​180​ ​hp​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​Handledare:​ ​Aleksander​ ​Fabijan,

Huvudområde:

​ ​Datavetenskap​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​Helena​ ​Holmström​ ​Olsson

Program:

​ ​Informationsarkitekt​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​Examinator:​ ​Nancy​ ​Russo

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Abstract (English) -     ​Efficient ​Customer Relationship Management       (CRM) is critical      for successful understanding and collaboration with Customers. Companies                frequently change or update their CRM systems in order to increase their work                          effectiveness. Customers and markets are always evolving and in order to keep                        up with increasing amounts of data and competition, companies should use                      efficient ways of working, regarding assistance in making data more accessible. If                        companies do not successfully integrate their CRM systems they risk falling                      behind other possible competitors and deteriorate. Change is often approved by                      those who are commanding it and questioned by those who receive it. The                          recipients of the change often experience uncertainty and hesitation. In this                      thesis, we describe how our research of CRM process, CRM systems and the                          stakeholders within the case company lead to finding challenges and needs. Our                        main contribution is the analysis of recommendations based on our findings,                      which can be used as a basis for creating a requirement specification in the                            context of integrating a new CRM system. With the empirical data collected in                          our thesis, and with the literature that we reviewed, we aim to assist the case                              company and other organizations in their process of implementing a new CRM                        system.                                                       

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Abstrakt (Svenska) - ​Vikten av att ha effektiv hantering av kundrelationer (CRM)                        inom företag väger mycket, för att på ett lyckat sätt öka förståelsen och                          samarbeten med kunder. Företag ändrar eller uppdaterar sina CRM system för                      att kunna öka arbetseffektiviteten. Kunder och marknad utvecklas ständigt, och                    för att kunna följa upp med större datamängder och ökad konkurrens bör företag                          använda sig utav effektiva sätt att arbeta på, när det gäller hjälp med att göra                              data mer tillgängligt. Om företag inte framgångsrikt integrerar sina CRM system                      kan de halka efter och försämras. Ett byte gällande CRM är oftast bestämt av                            ledning och ifrågasatt av de faktiska användarna. Mottagarna av förändringen                    upplever ofta osäkerhet och tvivel. I denna avhandling beskriver vi hur vår                        forskning kring CRM processer, CRM system och intressenterna i fallföretaget,                    leder till att hitta utmaningar och behov. Vårt främsta bidrag är vår analys av                            rekommendationer baserade på våra resultat, som kan användas som underlag                    för att skapa en kravspecifikation av fallföretaget. Med de empiriska uppgifter                      som samlas in i vår avhandling strävar vi efter att hjälpa fallföretaget och andra                            organisationer​ ​i​ ​deras​ ​process​ ​att​ ​implementera​ ​ett​ ​nytt​ ​CRM​ ​system. 

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Table​ ​of​ ​content 

 

1. Introduction  ​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​4 

1.1. Purpose​ ​and​ ​Ambitions  ​ ​4 

2. Background  ​ ​6 

2.1. Customer​ ​Relationship​ ​Management  ​ ​7 

2.2. Customer​ ​Relationship​ ​Management​ ​Challenges​ ​and​ ​Success​ ​Factors  ​ ​7 

2.2.1. Known​ ​Challenges​ ​from​ ​earlier​ ​research  ​ ​8 

2.2.2. Known​ ​Success​ ​Factors​ ​from​ ​earlier​ ​research  ​ ​8 

2.3. Customer​ ​Relationship​ ​Management​ ​Systems  ​ ​9 

2.4. effectiveness​ ​of​ ​CRM​ ​system​ ​on​ ​Management​ ​Process  11 

3. Research​ ​Methodology  13 

3.1. Case​ ​Study  13 

3.2. Case​ ​Company​ ​Description  13 

3.3. Data​ ​Collection  14 

3.4. Data​ ​Analysis  17 

3.5. Threats​ ​to​ ​validity  18 

4. Results  19 

4.1. Existing​ ​State  19 

4.2. Challenges​ ​with​ ​current​ ​CRM  20 

4.2.1. Common​ ​Challenges  20 

4.2.2. Common​ ​Challenges​ ​in​ ​Sales  22 

4.2.3. Common​ ​Challenges​ ​in​ ​Marketing  23 

4.2.4. Common​ ​Challenges​ ​in​ ​Customer​ ​Operations  23 

4.3. Transition​ ​to​ ​a​ ​new​ ​CRM  23 

4.4. Common​ ​Challenges  25 

5. Analysis 27 

5.1. Relating​ ​common​ ​Challenges 27 

5.2. Produced​ ​Common​ ​Challenges​ ​in​ ​Sales 29 

5.3. Produced​ ​Common​ ​Challenges​ ​in​ ​Marketing 30 

5.4. Produced​ ​Common​ ​Challenges​ ​in​ ​Customer​ ​Operations 30 

5.5. Prioritization​ ​of​ ​recommendations   31 

6. Conclusion   35 

Acknowledgements 38 

References  Appendices 

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1.​ ​Introduction 

 

To this day, there are many companies which have invested or are planning to invest huge       

amounts of resources in implement customer relationship management strategies, tools,       

and infrastructure in order to win the constant battle in the increasingly competitive       

economy [1]. As a result, the growth in demand for CRM solutions has been increasing [1].        In this thesis, we study a case company and their transition from an existing customer        relationship​ ​management​ ​system​ ​to​ ​a​ ​new​ ​system​ ​used​ ​by​ ​the​ ​company's​ ​owners. 

 

In the case study we investigate there has been an ongoing project to phase out the        currently used CRM system and to move everything into the new system that is used by the        company's owners, the Radiometer Group, but it has not really been prioritized. Our case       

company recognizes the benefit of having a common CRM system and have therefore       

decided to initiate the project again. There should be no doubt regarding the importance for        companies, with their abilities to determine where exactly they need to be in the future, but        also how to manage all the different changes required to get there [12]. To accelerate this        transition, they asked us to analyze the needs of the different stakeholders in terms of use        for​ ​making​ ​their​ ​work​ ​as​ ​efficient​ ​as​ ​possible. 

 

We solve this task through observations, interviews, face to face meetings, phone meetings,        and Skype calls. We will analyze the data collected, and examine if it is possible to find       

common themes regarding challenges from interviewees, and come to conclusion with       

possible​ ​recommendations.   

1.1​ ​Purpose​ ​and​ ​ambitions 

 

The entirety of the company’s project is in a first phase, divided into three areas. The first       

area is making a gap analysis on the company’s CRM system and their owners CRM       

system, which has already been made. The second area is making analyses and       

prioritization, in order so that the case company may proceed in making their requirement        specification. The third and final area is developing a requirement specification based with        input from different stakeholders. Our purpose in this entire project is to assist in finalizing       

the ​second area​, including interviewing stakeholders in order to understand the needs         

and​ ​challenges​ ​that​ ​they​ ​might​ ​have​ ​in​ ​a​ ​new​ ​CRM​ ​system.    

Change process to a new CRM system can be seen as an extremely important factor in an       

environment of high competition to achieve success. However, a previous study shows a       

failure rate of nearly 70% of all change projects. The extremely high rate of failure is based        on the absence of structured framework of how to handle the process of change within an        organization​ ​[12].  

 

Our ambition is that after completing our task, the case company will be able to move        forward with decisions and planning, for finalizing their requirement specification for the       

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Our​ ​research​ ​questions​ ​for​ ​this​ ​thesis​ ​are:  

 

RQ1. What are the key challenges that the stakeholders experience with the                        existing​ ​CRM​ ​process​ ​and​ ​system? 

  

We will answer this question with the combination of a literature review and the analysis of       

the empirical data collected through interviews, observations and other methods from the       

stakeholders.​ ​The​ ​complete​ ​list​ ​of​ ​stakeholders​ ​is​ ​visible​ ​in​ ​Figure​ ​2.   

RQ2. How can we make the use of the new CRM system more efficient for the                                stakeholders​ ​based​ ​on​ ​the​ ​identified​ ​challenges​ ​and​ ​recommendations? 

  

This question will be answered by our literature review where we will research what       

recommendations can be used to solve the experienced challenges, and supported by the       

empirical​ ​data​ ​from​ ​our​ ​interviewees. 

 

Companies that are in a change process often experience challenges along the way. In our       

case, the problem which the company is experiencing is managing changes to the CRM       

system, in terms of ensuring that different stakeholders needs are fulfilled since our case        company's​ ​system​ ​differs​ ​from​ ​that​ ​which​ ​their​ ​owners​ ​use. 

 

The remainder of this thesis is structured as follows. In the following section, we present        the background for our thesis. Specifically, we describe what CRM and CRM system is, and       

how efficiently it may or may not provide an improvement on several points of work       

effectiveness. In section three, we describe our research methods on how we worked with        the case company and important key stakeholders in order to gain understandings of what        needs to be analyzed and summarized. In section four we show our results and present an        explanation of the different factors which have affected these result, both with the case        company’s existing CRM problems and what could be major issues when transitioning to a       

new CRM system. In section five, we analyse our findings in relation to the related       

research.​ ​We​ ​conclude​ ​our​ ​​ ​thesis​ ​in​ ​section​ ​six. 

 

 

 

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2.​ ​Background 

 

In this section, we present the background for our thesis. First, we start with an illustration        of a funnel providing a description of our background review process. Next, we describe       

what customer relationship management is, and also typical purposes involving the area.       

Next, we describe known challenges and success factors which can be of importance       

regarding CRM implementations. Afterward, we describe what a customer relationship       

management system is and what typical purposes of such are, and also how change       

management is of great importance for companies to have when renewing the company       

structure.​ ​​Detailed​ ​literature​ ​review​ ​protocol​ ​can​ ​be​ ​seen​ ​in​ ​Appendix​ ​A.   

In Figure 1. Background Review        , we illustrate with a funnel how our research starts wide       

in Customer Relationship Management, goes narrow towards Customer Relationship       

Management System Challenges and Success Factors, continues towards Customer       

Relationship Management Systems and finishes with Effectiveness of CRM System on       

Management​ ​Process. 

Figure1.BackgroundReview

 

 

 

 

 

 

 

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2.1​ ​Customer​ ​Relationship​ ​Management 

 

CRM is a customer focused based strategy which integrates marketing, sales and customer        care service in order to create and add value for companies and their customers. The        concept of CRM has been around for a long time, and is a further development of a       

well-known concept in the marketing sphere: relational marketing [16]. CRM differs from       

relational marketing in such a way that it integrates earlier mentioned sales, marketing,        and​ ​customer​ ​service. 

  

There are several different definitions of CRM [7], [13], [15], [16]. The most representative        Chalmeta [16] describes the concept of CRM as ‘‘a coherent and complete set of processes       

and technologies for managing relationships with current and potential customers and       

associates of the company, using the marketing, sales and service departments, regardless        of​ ​the​ ​channel​ ​of​ ​communication’’. 

 

Not surprisingly, plenty of resources are spent in order to attract new customers. However,        according to Lambert [15], managements of several companies can often be self-satisfied in        terms of nurturing existing customers to build and strengthen relationships with them. For        most companies, existing customers represent the greater opportunities for possibilities to       

gain beneficial growth. Customer relationship management becomes a critical business       

process due to high pressure towards competition, needs to gain cost effectiveness in terms        of high quality and low costs and understandings of differences between customer equality        in​ ​terms​ ​of​ ​profitability​ ​[15]. 

 

When examining the domain of a CRM there are three perspectives which were dominant       

[7]. The first perspective relates to a ​better understanding of the customer base by                   

identifying various customer segments and gaining knowledge on their needs. A primary       

motivation for companies to implement good customer relationship management and CRM       

systems is to track customer behavior to gain insight into customer tastes and evolving       

needs [13]. The second perspective includes ​opening up different channels of               

communication​. The reason given was to enable the customer to access products and        services whenever they want, the relevance may differ from different companies and their       

work methods. The last perspective is based on ​building a knowledge base of               

information that is required to provide assistance by combining customer interaction data       

to offer the customer a strengthened experience in terms of service [7]. Customer       

relationship​ ​management​ ​is​ ​classified​ ​as​ ​operational,​ ​analytical​ ​and​ ​collaborative.  

 

2.2. Customer Relationship Management System challenges and

 

 

 

 

 

 

 

success​ ​factors 

 

In this subsection, we present known challenges with CRM systems and success factors,       

which is already known through previous surveys to have major impact on an       

implementation.   

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2.2.1​ ​Known​ ​challenges​ ​from​ ​earlier​ ​research 

 

Changing into a new CRM system is proven to be difficult [8], [10]. Building customer        relationships is very complex since it is no longer adequate to only focus on the customers        themselves. Nguyen et al. [8] mention in a survey that according to several cases, managers        are becoming deeply concerned about potentially losing customer loyalty, due to competitors       

attract them with lower prices and purchasing encouragements [8]. Companies face much       

more thoroughly different landscape. The market today demand companies to be much       

more conscious of how they might be doing business in such a competitive environment,        both​ ​culturally,​ ​ethically​ ​and​ ​socially. 

 

CRM systems have come to be very popular and many companies choose to implement       

them. A previous survey of more than 200 CRM projects discovered that only 30% of the        organizations felt that they had achieved a more efficient way to sell and service their        customers​ ​[10]. 

 

A major study conducted by Mendoza et al. [10] shows that 70% of companies that       

implement​ ​CRM​ ​will​ ​ultimately​ ​fail.​ ​The​ ​survey​ ​reveals​ ​that​ ​[10]:   

Companies​ ​underestimate​ ​the​ ​complexity​ ​of​ ​CRM, 

They​ ​lack​ ​clear​ ​business​ ​objectives, 

Invest​ ​inadequately​ ​in​ ​the​ ​provision​ ​of​ ​CRM​ ​software. 

 

Another conducted survey of over 700 companies [17] regarding the different causes of       

failures​ ​showed​ ​that​ ​the​ ​main​ ​causes​ ​were:   

Organizational​ ​change, 

Company​ ​policies, 

Little​ ​knowledge​ ​of​ ​CRM, 

Poor​ ​skills​ ​in​ ​CRM. 

 

This result shows an importance of describing CRM as a business strategy and taking the        change of environment of the working people into account. Next, we present a number of       

known success factors that can play part to make the CRM implementation work       

efficiently. 

 

2.2.2​ ​Known​ ​success​ ​factors​ ​from​ ​earlier​ ​research 

 

There are major success factors regarding customer relationship management. For       

example, two of them are to focus on key customers and to manage knowledge [9]. These        can have a significant effect on customer satisfaction level. However, it is of great value to        take into consideration that customer satisfaction itself is not directly affected by how       

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Another survey mentions the basis of customer relationship management to be a process of        creating relationships and also to create a value between companies and their significant        customers. By doing so, it can become a win-win situation for both factions, where it        increases​ ​the​ ​profitability​ ​of​ ​firms​ ​and​ ​enhances​ ​customer​ ​value​ ​for​ ​life​ ​[8]. 

 

A CRM application combines people, processes, and technology with a purpose of       

understanding the company’s customer base. Further relevant aspects to known success       

factors​ ​are​ ​[8],​ ​[9],​ ​[10]:    

Structures. Project managers, directors, etc, need to have a clear view of achieving       

full commitment, which includes participation from all involved management levels.       

There also needs to be a clear set of criteria and work methods to ensure       

stakeholders​ ​are​ ​working​ ​with​ ​the​ ​system​ ​on​ ​equivalent​ ​terms.   

Objectives.       It is of great importance to establish general and specific objectives.       

These objectives need to cover all the areas of work and should be sorted as short,        medium​ ​and​ ​long-term​ ​objectives. 

 

Automation.  Stakeholders have to be able to fully utilize all of the existing       

information regarding customers in the most efficient way possible. Stakeholders       

need to be able to interact with systems and departments of a company which is        involved​ ​with​ ​customer​ ​data. 

 

Company nature. Companies need well structured, easily understanding means of       

communicating the CRM strategy used, as well as commitment from staff to use a        customer​ ​relationship​ ​management​ ​system​ ​to​ ​its​ ​fullest. 

 

2.3​ ​Customer​ ​Relationship​ ​Management​ ​Systems 

 

A customer relationship management system is a software system used to achieve and       

maintain relationships   with customers or clients [6]. The purpose of a CRM system is to        increase the effectiveness of the CRM process. These systems guarantee that you don’t lose        track of all the different tasks required to maintain and nurture the relationship with the        customers. Every customer or client has different needs and by using a tailored treatment       

for every customer, the chances of maintaining an ongoing relationship will most likely       

increase. As a result of this the total profit and effectiveness of the company has the        potential​ ​to​ ​increase.  

 

The core of the CRM approach is based on three different concepts in marketing: customer        orientation, relationship marketing, and database marketing [9]. In today's society, it is        difficult to reach out to customers because of a large amount of advertising emanating from        multiple channels, this, in turn, led to customers losing their uniqueness. As a result of        this, companies are losing the individual needs of their customers. To regain, achieve and        nurture​ ​good​ ​relationships​ ​with​ ​customers,​ ​companies​ ​are​ ​using​ ​CRM​ ​applications.  

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CRM applications provide the ability to target customers accurately [9][11]. The use of       

CRM application can lead to increased profit and effectiveness by providing lower       

operational costs, higher revenue, increased customer satisfaction, reduced detention rates       

by customers, and asses customer loyalty and profitability measured by repeat purchases,       

money​ ​spent​ ​and​ ​longevity​ ​[11].    

A typical CRM system has many different features and functionalities, therefore the       

different systems can vary depending on the organization or the team using it. The most        common​ ​CRM​ ​features​ ​are​ ​the​ ​following: 

 

Managing contacts. A CRM system allows you to establish groups with your        contacts​ ​or​ ​any​ ​context​ ​that​ ​fits​ ​the​ ​case. 

 

Case management. Managing every customer individually with a tailored        treatment​ ​to​ ​improve​ ​the​ ​customer's​ ​satisfaction. 

 

Sales Data. The CRM can convert sales and the customer's data into convenient        pieces that can be used later on to inform other data that a decision has to be made.        This will simplify the process of determining what measures that have to be made        by​ ​considering​ ​the​ ​collected​ ​data. 

 

CRM​ ​Data​.​ ​Storing​ ​the​ ​data​ ​properly​ ​to​ ​access​ ​it​ ​efficiently​ ​whenever​ ​it​ ​is​ ​needed.    

According to a survey regarding CRM implementation [6], only approximately 20 to 30       

percent of companies asked were able to successfully achieve improvement after       

implementing a CRM system. The other 70 to 80 percentage resulted in either losses or no       

bottom line improvement at all, in terms of organization performance. Manufacturing,       

logistics, etc. have been able to perform great results in both failures and success. It is no        big surprise that the risk of failure can be great. After all, big changes mean big chance for        failure. 

 

In recent years the success and failures in implementing CRM systems have attracted lots        of publicity [6]. In fact, there is a close relation between successfully and failed CRM        implementations​ ​[1].​ ​The​ ​successful​ ​systems​ ​managed​ ​to: 

 

Observe​ ​the​ ​change​ ​management​ ​disciplines,​ ​while​ ​the​ ​failed​ ​ones​ ​did​ ​not. 

● The ones who succeeded were planned carefully with pretty much every aspect       

involved​ ​covered. 

The​ ​employees​ ​were​ ​the​ ​right​ ​people​ ​for​ ​the​ ​project​ ​itself. 

The​ ​company​ ​worked​ ​great​ ​with​ ​the​ ​external​ ​suppliers​ ​as​ ​a​ ​team.   

The opposite of these marks mentioned, could be involved and eventually be classified as        failed​ ​projects​ ​or​ ​such​ ​who​ ​were​ ​only​ ​partly​ ​successful​ ​with​ ​their​ ​implementation. 

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Change management has been studied for several years in order to identify challenges for       

processes similar to our case company. But what exactly defines change management? It       

can be specified as a process for continuously renewing a company’s structure, direction and        capabilities [12]. The need for change within an organization is often unpredictable and        usually​ ​occurs​ ​when​ ​the​ ​organization​ ​is​ ​experiencing​ ​a​ ​crisis. 

 

2.4​ ​Effectiveness​ ​of​ ​CRM​ ​system​ ​on​ ​management​ ​process  

 

A customer relationship management system favors organizational learning about       

customers by enabling companies to analyze purchasing behavior throughout transactions       

through different channels and also points of customer contact [13]. Companies with a good        distribution of CRM system have a greater position in terms of influencing their stock of       

accumulated experience and knowledge into support processes of customers. In fact, they       

are​ ​efficient​ ​in​ ​their​ ​customer​ ​management​ ​process.   

Proposed​ ​sub-components​ ​that​ ​CRM​ ​systems​ ​could​ ​have:   

Customer​ ​Interaction​ ​Systems 

Integrated​ ​Channel​ ​Management​ ​Systems 

Analytical​ ​tools 

 

Other explored observations have a similar categorization. For example, classifying CRM       

systems as a set of modules: analytical, operational and collaborative. Some also had a       

proposition which mentioned modules could be added to assist with marketing campaigns       

[7]. The lack of CRM strategic framework from which to define success could be viewed as        reasons for disappointing results. In order to succeed, a full commitment must be held from       

involved leading parties. Payne et al. [14] mention in their study about customer       

relationship management, that a series of supporting conditions is greatly valuable in       

terms of implementing CRM system. They are helpful as they consider implementation       

issues.​ ​The​ ​considered​ ​conditions​ ​are​ ​[14]:     

Culture​ ​and​ ​leadership 

Procurement​ ​processes 

Human​ ​resource​ ​management​ ​processes 

IT​ ​&​ ​Data​ ​management​ ​processes 

Organizational​ ​design 

 

To summarize, Customer Relationship Management implementation is a complex ​process.       

This process can be supported with various CRM systems that enable companies to become       

more efficient with customer relationship. However, integrating CRM systems is a       

challenging tasks where many companies struggle to gain improved effectiveness due to       

lack​ ​of​ ​knowledge​ ​or​ ​lack​ ​of​ ​clear​ ​business​ ​objectives,​ ​etc.    

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The aim of this thesis is to ​analyze the challenges of the different stakeholders in terms of        use for making their work as efficient as possible, so that the case company will be able to        move forward with decisions and planning, for finalizing their requirement specification for        the new CRM system integration. In the next section, and to achieve our objective, we        present​ ​our​ ​research​ ​methodology.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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3.​ ​Research​ ​methodology 

 

In this section, we provide a description of our research methodology. We explain how we       

approached the key stakeholders order to conduct our research. We managed to obtain       

valuable information from twenty interviewees to base our findings from a wide variety       

work departments. We received support from our case company supervisors to contact their        departments​ ​in​ ​other​ ​countries,​ ​including​ ​India,​ ​England,​ ​South​ ​Africa​ ​and​ ​Finland.  

 

We start by providing an introduction to case studies. Secondly, we describe the case       

company we conducted our research for. Next, we present our data collection techniques       

(specifically: interviews, observations and also CRM data collections). Later, we explain our        data analysis, where we describe how we analyzed every fraction of data collected from        interviews​ ​and​ ​observations,​ ​etc.​ ​Finally,​ ​we​ ​discuss​ ​our​ ​threats​ ​to​ ​validity. 

 

3.1​ ​Case​ ​study 

 

Case studies are powerful empirical methods [5]. Primarily, they are used for exploratory       

investigations, in an attempt to understand and explain a phenomenon or construct a       

theory. In general, they are observational or descriptive in their nature, however, they can        be relational as well [5]. Case studies become more popular and are frequently used in       

papers in order to acquire an understanding or to demonstrate possible new methods,       

techniques, processes etc[5]. Since case studies encompass a wide set of techniques(​CRM       

system analysis, data collections, joint meetings, recordings, observations and                  reporting of results​), they can be based on both quantitative or qualitative evidence [2].          We conducted an in-depth case study with a single case company. In the sections below, we        describe​ ​our​ ​case​ ​company.  

 

3.2​ ​Case​ ​company​ ​description 

 

HemoCue is a subsidiary company who is conducting work regarding medical diagnostics       

with a base of operation in Ängelholm, Skåne, with 200 employees in Sweden alone. They       

are currently developing, producing and selling instruments for measuring hemoglobin,       

glucose, and albumin. For these instruments, HemoCue is also developing their own micro       

cuvettes for analytical testing on liquid substances. HemoCue, which became part of the       

parent company Radiometer Group on the 13th of April 2013, is selling medical products to       

more than 130 countries around the world, involving several clinical areas. They are       

continuously developing more microcuvette methods, using vast knowledge and experience       

in​ ​advanced​ ​chemistry,​ ​in​ ​order​ ​for​ ​them​ ​to​ ​be​ ​of​ ​use​ ​for​ ​future​ ​important​ ​analyses.   

The subsidiary company have decided to implement a new CRM system. Due to the benefits        that they recognize with CRM systems at the crown company, they want to work with the        same​ ​system​ ​as​ ​the​ ​crown​ ​company​ ​currently​ ​is​ ​using.  

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The objective for the stakeholders of the subsidiary company is to be more effective when       

working with the new system and to be integrated into the crown companies working       

methods​ ​since​ ​they​ ​have​ ​been​ ​successful​ ​with​ ​the​ ​implementation​ ​of​ ​the​ ​system. 

In order for the project to work as flexible as possible, a consideration was made early for        applying time to work at the case company with the assignment given, but also to deliver        continuable updates for our supervisors. Due to our time limit of twenty hours a week, an        arrangement was made for a flexible schedule, where time could be put aside to study on        our analysis at the company and conduct interviews, but also to find the time and work        with​ ​reporting​ ​the​ ​thesis​ ​to​ ​the​ ​university.​ ​In​ ​the​ ​next​ ​subsection​ ​we​ ​explain​ ​case​ ​studies.  

3.3​ ​Data​ ​collection 

 

In order for us to retrieve a large amount of information about the CRM system and all the        potential challenges of different types of stakeholders around the company, we decided in        an agreement with the supervisors from the company that interview meetings were to be        conducted. In our case study, we chose to use semi-structured interviews to get results of a       

qualitative nature. We considered multiple data-collection techniques for example       

questionnaire however, we decided to conduct interviews. Since we interviewed       

stakeholders from different departments within the company, these types of interviews       

suited​ ​us​ ​very​ ​well​ ​as​ ​they​ ​enabled​ ​us​ ​to​ ​investigate​ ​the​ ​area​ ​of​ ​interest​ ​in​ ​greater​ ​detail.    

In our interviews, we used a list of questions and topics, but the scheme and content were        tailored to match the interviewee's roles and answers. If we decided to use a survey, it        would not have resulted in the same type of qualitative response. Since stakeholders work        in different areas, they have different uses in the system, so we created a set of questions       

for every department to get a more comprehensive picture of the different needs and       

challenges​ ​within​ ​the​ ​area.   

Interviews: We conducted a total of twenty interviews to ensure that potentially valuable        information from different departments that will be affected, were involved in participating.        A large reason to why interviews ​became the best way to achieve success in finding              information, was mainly due to support from senior superiors who have been involved in        advancing​ ​the​ ​integration​ ​to​ ​CRM​ ​system​ ​further​ ​forward. 

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In

 Figure 2   we illustrate the key stakeholder areas of the company’s CRM system that they        wanted us to observe and analyse. Note that the different areas of work contain many        different​ ​roles. 

 

Figure2.​​TheKeyStakeholderAreasWith AssociatedRolesIn TheCaseCompany. 

With assistance from Director of Customer Operations, Business IT and Sales Support       

Manager, we created our first draft of interview questions which were tested beforehand on       

the last mentioned stakeholder (see appendix for interview templates). The interview       

questionnaire was to be used in consultation with each and every interviewee that were to        join for our cause. Even with core objectives, finding out about possible similarities between        needs​ ​or​ ​challenges​ ​could​ ​prove​ ​to​ ​be​ ​more​ ​challenging​ ​than​ ​expected. 

 

The data collection for this specific case could differ in terms of answers since different key        persons or stakeholders could have considerably different needs from a CRM system. This        study can, therefore, provide a deeper insight into aspects which can be investigated to       

develop or confirm possible theories which explain our observations [2]. Note that the       

structures may vary, simply because some interviews were conducted with more than one       

interviewee, while some other were performed via phone, skype etc. It may be of value to       

understand that not every interview was conducted alike, due to several reasons. For       

example, some interviewees had their base of operation in different countries and could       

therefore only be available through a link. Also, the time it took for each interviewee to        respond and find an available spot for joining in on our task could differ from each and        every person. To get in contact with specifically recommended key persons could also vary        due to their role in the company, which of course causes them to have other assignments        and​ ​important​ ​errands​ ​which​ ​needed​ ​their​ ​attention. 

 

Table 1.1, 1.2 and 1.3 on the next page illustrates the different interviewees roles, what             

department they belong to, the type of interview conducted and the duration of the       

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Table1.1. 

Department:​ ​Sales  Type  Duration​ ​(minutes) 

Vice​ ​President​ ​Sales  Phone​ ​Conference  20 

Regional​ ​Sales​ ​Managers  Skype  30 

General​ ​Manager​ ​Sweden  Skype  20 

Sales​ ​Development​ ​Specialist  In-person  25 

Sales​ ​Area​ ​Manager  Phone​ ​Conference  25 

Sales​ ​Representatives  In-person,​ ​Skype  25 

 

Table1.2. 

Department:​ ​Marketing  Type  Duration​ ​(minutes) 

Global​ ​Campaign​ ​Manager  In-person  35 

Marketing​ ​and​ ​Event​ ​Project 

Manager  In-person  35 

Technical​ ​Manager​ ​DM​ ​and 

Connectivity  In-person  35 

 

Table1.3. 

Department:​ ​Customer 

Operations  Type  Duration​ ​(minutes) 

Vice​ ​President​ ​Customer 

Operations​ ​and​ ​Supply​ ​Chain  Phone​ ​Conference  25 

Director​ ​Customer​ ​Operations  In-person  45 

Business​ ​IT​ ​manager  In-person  45 

Sales​ ​Support​ ​Manager  In-person  20 

Customer​ ​Operations​ ​Coordinator 

and​ ​Trade​ ​Compliance  In-person  25 

Export​ ​Coordinator  In-person  25 

Customer​ ​Complaint​ ​Manager  In-person  50 

Customer​ ​Service  In-person  25 

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The participants were all familiar with the research topic, however, the knowledge of the        topic differed between interviewees, due to different needs and or previous expertise in        terms​ ​of​ ​use​ ​of​ ​a​ ​CRM​ ​system. 

 

Observations:  Observations were made on a couple of different stakeholders(e.g.        salespersons) of the system, as some of them showed us how they performed their daily       

tasks in CRM. This gave us the opportunity to identify how working methods differs       

between various stakeholders of the system. During these observations, stakeholders also       

described from their point of view how missing functionalities of the existing system could        be implemented in the newer system according to them, in order to simplify their daily        tasks. 

 

CRM Data Collection: We were able to obtain accessibility to the case company's existing          CRM system in a student environment, meaning we had the option to explore some of its        different features and settings without risks of hurting valuable data. The reason for giving        us an opportunity to navigate through the system was in order for us to acquire a general       

understanding of how tools could work and also for us to have a clear idea what       

interviewees​ ​described​ ​when​ ​they​ ​explained​ ​how​ ​they​ ​could​ ​be​ ​using​ ​the​ ​CRM​ ​system.   

3.4​ ​Data​ ​analysis 

 

We read our raw data, meaning that we analyzed each and every document, emails, taped       

recordings, etc. All word by word from which we had gathered information from our       

interviews. By scanning our files from each interviewee, we had speculations that we could        enable greater findings in terms of vital data for acquiring a common thread. After our first        performed interview we analyzed the data in order to highlight and try to find different        topics​ ​which​ ​emerged. 

 

The biggest reason for why it was made several times, was to try and find a certain pattern       

for how upcoming interviews could be conducted. More or less discovering potential new       

critical information and how we could develop our questions deeper depending on the       

interviewee's​ ​position​ ​at​ ​work.                           

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3.5​ ​Threats​ ​to​ ​validity 

 

Construct validity: ​To increase the validity of the case study, we used several data         

collection techniques (interviews, observations). We got the opportunity of interviewing       

multiple roles from three different departments. By conducting the study in this way, we       

have constructed a comprehensive understanding of how different stakeholders work with       

the​ ​CRM​ ​system​ ​and​ ​what​ ​challenges​ ​and​ ​needs​ ​they​ ​experience.   

External validity: ​The result/main contribution of our case study cannot directly translate          to other case companies. However, some of our findings such as the importance of a well        structured way of communicating the CRM strategy, establish clear objectives, achieve full        commitment from the different stakeholders and a clear set of criteria and work methods to        ensure stakeholders are working with the system on equivalent terms, can partially relate        to​ ​other​ ​companies​ ​as​ ​they​ ​are​ ​challenges​ ​which​ ​often​ ​occur​ ​in​ ​change​ ​processes. 

 

Internal validity: ​In our case study, we do not determine if there is a cause-and-effect         

relationship and therefore we cannot exclude that external variables in addition to the       

independent​ ​variable​ ​might​ ​affect​ ​the​ ​dependent​ ​variable. 

 

 

 

 

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4.​ ​Results 

 

In this section we present our results. First, we describe the current CRM practices.       

Second, we present the overall common challenges followed by common challenges within       

different departments of the case company. Next, we describe the transition to a new CRM       

where we present our suggested recommendations to mitigate the challenges. Finally, we       

present a table of every challenge, showing how many times they were mentioned in the        interviews​ ​and​ ​which​ ​recommendation​ ​it​ ​is​ ​linked​ ​to.   

 

4.1​ ​Existing​ ​state

 

 

The current CRM used by the case company is mainly used as a storage database where        stakeholders​ ​can​ ​access​ ​information​ ​about​ ​customers​ ​or​ ​distributors.  

 

“IusetheCRMsystemasareferencetool.”  

- CustomerOperationsCoordinatorandTrade   

Compliance   

“Idon’tuseCRMthatmuch,Ionlyuseitto accesscustomerinformation.” 

- SalesRepresentative 

   

“IonlyuseCRMwhenIneed toaccessinformation aboutnewcustomers” 

ExportCoordinator 

 

The system is therefore not fully used and to make up for missing functionality multiple       

systems and communication channels are being used instead. In this case the       

communication between stakeholders is complicated since most of the data and       

documentation are mainly distributed throughout regular mails that are sent between       

colleagues. A key functionality of a CRM should be accessing detailed information about        customers with ease, although that is not how the existing system is being used. In some        cases, the CRM system is mostly used as a contact list, which salesmen use to have a look        upon information regarding possible customers they will associate with, in order to see        what​ ​kinds​ ​of​ ​items​ ​could​ ​be​ ​needed​ ​for​ ​the​ ​customer. 

 

“Weuseseveraldifferentprogramstoperformwork thatcouldbedoneintheCRM” 

SalesRepresentative 

 

“Functions as calendar and notebook are not cooperating with one another, the reason for                           

inactivityisthatCRMisnotthemain sourceofdeliveringdata,salesorprices” 

- RegionalSales

  Manager 

 

 

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4.2​ ​Challenges​ ​with​ ​the​ ​current​ ​CRM 

 

Our conducted interviews were performed in consultation with supervisors at the case       

company and stakeholders from several work divisions, whom were all mentioned earlier at        chapter 2, subheading 2.5. Based on our analysis of the data, we present the common        challenges next. These challenges answer our first research question: ​“What are the key             

challengesthatthestakeholdersexperiencewiththeexistingCRMprocessandsystem?” 

 

4.2.1​ ​Overall​ ​common​ ​challenges 

 

Challenge​ ​1:​ ​​Lack​ ​of​ ​assistance   

We questioned the interviewees regarding how the CRM system helped them, or could help        them perform with their respective daily objectives. Numerous interviewees told us that it        would be of great value to be able receive some sort of assistance with upcoming objectives,        sort of being able to keep track of different activities in order make sure that stakeholders        get​ ​reminded​ ​of​ ​what​ ​actions​ ​to​ ​perform. 

 

“I want to be able to keep track of my customers, if I have not visited my customer in six                                       

months,Iwantthesystemtoremindmeofthis”  

-SalesDevelopmentSpecialist 

 

Challenge​ ​2:​ ​​Inaccurate​ ​information 

 

All of our interviewees told us that they mostly use the existing system to collect data from        customers or distributors. However, the information that is logged into the system is not        always correct. There is no history of previous meetings or activities and if a customer have        more than one installation they are not able to view all of the different installations. The        information that gets logged into the system easily gets out of date and can therefore lead        to complications for the stakeholders if they have access to inaccurate information about a        customer​ ​or​ ​distributor​ ​when​ ​contacting​ ​them. 

 

“​There is currently a lot of out of date information in the system and no one is responsible                                   

for keeping the system up to date, therefore I can never trust the system to give me the correct                                     

information” 

-Customer  Operations  Coordinator,  Trade 

Compliance 

 

 

 

 

 

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Challenge​ ​3:​ ​​Various​ ​work​ ​methods   

It is of no larger revelation that due to the fact of important key stakeholders having        different needs of the CRM system, is partially because of all the distinctive work methods       

used. Assignments are performed and data is being documented through Excel by some,       

depending on assignments of course, while others could be using CRM partially. Different        working methods lead to stakeholders being uncertain about what their obligations to the        system are and what information they need to put in the system since there’s no standard        way​ ​of​ ​working. 

 

“You have to develop a standardized way to work with the system to get the right                               

informationintothesystemandensurethattherightpeopleadd therightinformation”  

- SalesRepresentative 

 

Challenge​ ​4:​ ​​State​ ​of​ ​training   

After analysing our performed interviews, a general correlation to why workers use       

different methods of performing tasks became clear. No actual training were made on how       

to work with different tools in the case company's CRM system. More specifically was       

regarding which information has to be there or needs to be put in, and what information        should absolutely not be in the system. What more is that it could be problematic to add or        remove contacts in the system. ​Regional managers needs to follow up more with CRM as        well​ ​according​ ​to​ ​some,​ ​since​ ​people​ ​are​ ​not​ ​working​ ​with​ ​it​ ​willingly. 

 

“Help stakeholders to familiarize themselves with the system and learn the key features” -                            SalesRepresentative 

 

Challenge​ ​5:​ ​​Limited​ ​accessibility​ ​of​ ​leads 

 

We asked our interviewees how they would describe the biggest obstacle to overcome to        achieve more effective sales, the interviewees answered that the access to view leads is        limited since they are not accessible for everyone. It is very important that everyone have        visual access to the leads in order to find out who is interested and who can drive the        business​ ​forward. 

 

“We need to make sure that everyone has access to the marketing module to get more                               

visibilityonourleads”-GlobalCampaignProductManager 

               

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Challenge​ ​6:​ ​​Traceability​ ​of​ ​products   

The ability to track the company’s products is very limited in the existing system. There is        a big chance that a customer has multiple products but it does not appear in the system. In        turn, this means that the sales representatives get inaccurate information from the system        because​ ​the​ ​products​ ​are​ ​not​ ​properly​ ​registered.  

 

“Only3000outof14000soldproductsgetsregisteredinthesystem”-SalesAreaManager 

 

4.2.2​ ​Common​ ​challenges​ ​in​ ​sales 

 

Challenge​ ​1:​ ​​Feature​ ​exclusion   

When asked about manually performed work which would presumably mainly reported to       

superiors, the answer was the sales funnels and adding customers or distributors to the        system. The reports are made manually in Excel because the sales funnel is not being used        in their CRM, for the simple reason of the CRM sales funnel visibility and functions not        being as effective as when based on the excel sheets reported by salesmen via e-mail.        According to the sales managers, that was considered the more efficient way to consolidate        the data. Though nearly all of the interviewees said that they wanted the funnel to be        included in the CRM system to be able to see where a customer is in the sales process. They        also wanted to be able to extract the data from the CRM instead of receiving it by e-mail to        get easier access to the data. Another challenge that users face because of insufficient        functions, is the duplication of work that needs to be done as a result of the current way to        report​ ​collected​ ​data.  

 

“What drives the sales is simple and clear recording of customer needs and data” - Regional                               

SalesManager 

 

Challenge​ ​2:​ ​​Mobility​ ​usage 

 

The stakeholders are currently incapable of creating accounts and tasks while out in the        field, because of that they need to add the gathered data from e.g. a customer meeting in        the​ ​system​ ​on​ ​their​ ​desktop​ ​instead​ ​of​ ​using​ ​the​ ​application​ ​directly.  

 

“There is a lot of work that has to be added to the CRM after the meeting when it could have                                         

beendoneduringit”-SalesAreaManager 

 

 

 

 

 

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4.2.3​ ​Common​ ​challenges​ ​in​ ​marketing 

 

Challenge​ ​1:​ ​​Categorization​ ​of​ ​customers   

There is no categorization of customers or distributors in the existing system, the only way        to see what type of customer you are dealing with is through the sales funnel. Classifying        the customers or distributors can help stakeholders take the right action and target their        marketing​ ​for​ ​specific​ ​needs​ ​of​ ​their​ ​customers.  

 

“Imissbeingabletoputthecustomerinascaleinthesales process”-ExportCoordinator 

 

4.2.4​ ​Common​ ​challenges​ ​in​ ​customer​ ​operation 

 

Challenge​ ​1:​ ​​System​ ​integration 

 

Another challenge that the stakeholders experience is the use of different systems since       

they do not interact with each other. This makes things complicated and is very       

time-consuming for stakeholders since they need to have the knowledge of how to operate        the​ ​different​ ​systems​ ​and​ ​know​ ​where​ ​to​ ​put​ ​in​ ​collected​ ​data​ ​and​ ​how​ ​to​ ​extract​ ​it. 

 

“We use several different systems, and they do not communicate with each other” - Marketing                             

andEventProjectManager 

 

4.3​ ​Transition​ ​to​ ​a​ ​new​ ​CRM 

 

Recommendation​ ​1​:​ ​Notifications 

 

The solution to lack of assistance is to make sure that stakeholders receives       

notifications when an activity needs to be performed. By using notifications       

connected to an account, stakeholders should be able to see the proposed action for        the customer when such an occasion occurs. This could for example occur when a        customer have a contract which is about to expire. Following actions should be to        contact the customer regarding a possibility of creating a new contract. This action        should​ ​be​ ​presented​ ​as​ ​a​ ​notification​ ​for​ ​the​ ​stakeholder. 

 

Recommendation​ ​2​:​ ​essential​ ​functionality 

 

To be able to use the system fully, all of the necessary functions that facilitates       

stakeholders everyday tasks needs to be implemented into the system. Stakeholders       

want to be able to get access to detailed information about their customers and        distributors, extract and edit statistics and have visual access to up to date leads.        These are the overall main functions that stakeholders want to see materialized into        a​ ​well​ ​defined,​ ​easy​ ​to​ ​use​ ​CRM​ ​system.  

Figure

Table 1.1, 1.2 and 1.3 on the next page illustrates the different interviewees roles, what                               department they belong to, the type of interview conducted and the duration of the                  interview. 
Table 1.     ​ Illustrates our search result throughout the different stages of the collection of                         relevant​ ​literature. 

References

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