INTRODUCTION
As we move from the industrial economy to the knowledge-based economy, the focus of production
efficiency is shifted to value creation throughout the entire value chain. Customer relationship management is a key
ingredient in the value creation strategy. While CRM technologies have matured in the last decade, their
implementation failure rates are high, ranging from 55 to 75 percent according to the Meta Group (Johnson 2004).
Key reasons for failure include the failure to create an enterprise-wide CRM strategy, the inability to integrate with
legacy systems, and not having an approach to analytics (McKenzie 2001, Greenberg 2002, and Bannan 2004). It
seems that history does repeat itself with enterprise applications. Lewis (2001) points out that ERP implementations
also suffer the 70-perscent failure rate. One of the key lessons learned from ERP implementations is that they are not
just software implementations. They come with built-in business processes (Lewis 2001). Business process and
integration issues that haunted many ERP implementations are also leading causes of failure for CRM
implementations. The issues with CRM can be compounded by disparate views of customers through different
channels, processes and systems. Information about customers can be captured through various transactional
systems and got buried in their respective silos. CRM technologies can also come in multiple flavors. As pointed out
by Bannan (2003) that many CRM deployments are specific applications providing point solutions such as
automated alerts and email, or handling segment predictive modeling. Furthermore, there exist many types of CRM.
The Meta Group described three CRM ecosystems: operational CRM, analytical CRM and collaborative CRM
(Kelly 1999). Web-based applications and wireless applications further yield classifications in eCRM and wireless
CRM.
Johnson (2004) points out that CRM is more than just technology. While technology is a key enabler, it is
only a means to the end. McKenzie (2001) articulates that CRM is a combination of strategy and information system
aimed at focusing attention on customers in order to serve them better. An integrated business model that ties
together business organizations, processes, information and technologies along the entire value chain is critical to
the success of CRM strategies. The holistic view of customers must include information from various customer
interactions with the firm through sales and marketing, call centers, customer service, the Web, distribution channels
and alliance partners. McKenzie (2001) points out the importance of integration along the value chain to provide
better customer service, by organizing, aligning and integrating the organization processes all the way from the point
of customer contact, through the organization and back through the supply chain. The CRM enterprise model