E L PROBLEMA DEL DASEIN O CÓMO SE REEXPRESA UNA IDEA

Customer Relationship Management (CRM) implementation is an ongoing process at HSB-Norr at this time. According to the VD, the process has consisted of 1 year of planning and 6 months of implementation so far. However, HSB has gone through the

various stages of CRM implementation by way of restructuring the entire business process and the people component and implementing some of the technology. The definition of CRM by Goldenberg (2000) could then be recognized and the process has shown already a clear resemblance to the theory though it is not complete. Furthermore, the lack of a clear definition of the CRM concept (Kotorov, 2003) is not so perceivable at HSB since the process was clearly thought before starting the implementation. It did not come out as a result of the circumstances but as recognition of a need and all the steps have been clearly thought of. So the implementation at HSB has followed an integral restructuring of the company and clearly intends to place the customer at the center.

Kotorov (2003) describes a handful of companies that have proven to be successful with the implementation of CRM. At HSB, even though the process is not complete, the VD described his overall satisfaction level as very good, since they have already obtained important benefits out of the implementation process.

6.2.1 How can a firm’s major reasons and benefits of implementation of CRM be described?

The major reason and benefits of firms implementing CRM stated by Curry and Kkolou (2003) and Swift (2001), have taken place at HSB. According to the VD, benefits that have already taken place in terms of cost and profit have to do with an easier, more effective way of communication with the customers which has resulted in an increase in sales. Curry and Kkolou (2003) don’t mention anything about product development specifically, but this has come up as a major benefit under the experience of HSB. According to the VD, customer satisfaction has also increased and been manifested in the various meetings as they feel taken into account for future decisions that will affect them directly. In the case of retention and loyalty, mentioned by Swift (2001), it is still to be seen what HSB can accomplish once the whole process has taken place. This is a very important topic for them since until now their relationship with the boards had been unquestioned and now, it is not only questioned but also the time to renegotiate the contacts is soon to arrive. By that time, the results of implementing CRM will be easily measurable.

The theory by Bristol group (2004) on value creation is identified at HSB. The value HSB creates for its customers can to a large extent be described as functional as well as emotional. According to the VD, the fact that “HSB does not compete on price” supports the emotional value creation perspective. However, creating value through their local presence, product quality and technology can be associated with functional value. There was no empirical finding to support social value as noted by Chi et al (2004).

6.2.2 How can the components of CRM implementation (i.e. people, process and technology) be described?

In line with Goldenberg (2002), all the three components of CRM implementation have

been identified at HSB. HSB has a firm belief in technology to assist in the CRM

technology to bring change in the work process. HSB is about to put in place a new switchboard of telephone interconnection that will link all service centers at different cities. Other IT technologies currently in operation, which give access to customers, include web invoices, emails consulting and communication, online reports and ordering services online. What is important is that HSB makes effective use of the Internet in this regard and this supports Peppers and Roger (2000) view of the use of Internet in building lasting relationships with e-customers by offering services in traditionally impossible way. IT has then been an enabling tool for HSB to re-design its entire organization and thus affirms the theory by Hammer and Champy (1993). It must however be pointed out that even though Goldenberg (2002) emphasizes the need to have all the three components in place, HSB is yet to put in place a new CRM system. As result confirmation of the extent of operational and analytical CRM (Trepper, 2000) could not be made. Even though Goldenberg (2002) warned about shopping for CRM systems, HSB has already purchased a system from an external company and it intends to be fully functional by the summer. The business processes at HSB has been reorganised as an important component and has required a long period of redesigning. According to Goldenberg (2002), taking inappropriate steps in this area could easily lead to chaos. HSB has been conscientious about this and has taken a long time to plan and study the optimal way for restructure to take place. This was considered as the first step of the process. According to the VD, HSB has restructured almost completely. The changing process at HSB has not been easy for the company to adapt to and this supports theory about the complexity and difficult nature of changing business process. Goldenberg (2002) stressed the need to eliminate non- optimal process and this was found out at HSB.

As noted by Chen and Popovich (2003), HSB has not found it easy to effectively manage the people aspect of the change CRM implementation requires. The VD explained that some have adapted quickly and others haven’t. HSB has project teams working on the various aspects with leader guiding, training and inspiring them in the new task. This is supported by Chen and Popovich (2003). Cap Gemini IDC (1999) theory is seen to be in place at HSB as the implementation team is made up of representatives from sales, marketing and information technology and customer service. At HSB, to some degree, all employees have been involved in the process but some with a measure of resistance. About 80% of management team was changed before the process started and this affected the whole company environment. After this, many functions and tasks were either eliminated or re-assigned when the CRM process began; which agrees with Chen and Popovich (2003). Despite the resistance, management at HSB is using seminars and meetings to educate the employees, which moves in line with theory. The VD´s explanation of the resistance faced among employees especially the administrative staff is due to the fact that they perceive administrative functions (dealing with papers) as more important than attending to customers’ concerns. This situation of perception of tasks among the staff was never mentioned in the theory studied.

According to Limayem (2004) the right mix of CRM components in terms of effort should be 70% people, 20% process and 10% technology. This is illustrated below in Figure 18 and figure17 show the mix estimated at HSB, which have 50% process, 40% people and 10% technology.

people 70% process 20% technology 10%

Figure 17: Developing the right mix of people, process, and technology (Limayem, M., 2004)

40%

50%

10%

people process technology

Figure 18: CRM components as assessed by HSB-Norr (personal interview)

The above figures show that HSB does not consider CRM as centred in technology since it gives 10% effort to it, which agrees with what Limayem (2004) stated. However, the effort HSB assign for both people and process fell short of the right mix as demonstrated in figure above 17.

6.2.3 How can the key factors of CRM implementation (i.e. strategy, leadership and integration) be described?

The theory by Bull (2003) about CRM implementation factors was evidenced at HSB- Norr. CGI Inc. (2004) and Jill Dyche´s (www.crm2today.com) view of CRM is present at HSB-Norr since the CRM ongoing process has had and continues to have a strategic

perspective of CRM. Several specific actions support this idea, for example, changing the focus to have the customer as the center and provide personalized services, considering the internal cultural differences, categorizing the customers depending on their size and profitability, among other. This is in tune also with CRM Guru (2003).

Pinto and Slevin (1987) refer to new forms of leadership being required for the CRM process to take place and at HSB-Norr, this factor was clearly visible not only in the style, but also in the physical change of the leaders. As it was stated by the VD, before he came to HSB-Norr, drastic decisions had taken place in terms of changing the management team. The average age went from 60 to 32 and only this brought a big switch in mentality, management styles and vision to HSB-Norr. The CRM process begun after this and thanks to the strategic view and vision, the leaders have been able to implement it

with great benefits. All aspects cited by Galbreath and Rogers (1999) when referring to CRL (customer relationship leadership) were found to be true at HSB also. The importance of the leaders being technology savvy shows in the efforts to connect back and front office, the new phone system, the new Internet applications for customers. The need of building teams to act in cooperation with each other shows in every department and, as stated by the VD, it is especially successful in the new sales team. And finally, the atmosphere of innovation has been promoted by integrating all the staff in the reconstruction of the processes, assignment of the new tasks and product development. To some extent, Senge´s (1990) concept of “localness” is also recognizable since some functions will be shared and delegated to the local offices around Norrbotten. Finally, it is important to mention also that the decisions regarding CRM have been launched directly by the VD and top management team who have also been an active part of the process and have had cooperation of team leaders in some areas.

Integration within the organization has also been a key concept for HSB-Norr, as stated by the VD and in accordance with Greenberg (2001). The route of bringing together the three companies that HSB-Norr was divided into, as well as integrating the functions of the departments, bringing together some tasks by geographical area, the integration of the front and back office functions into an all rounded service centre (which is now ongoing) and finally the intention of installing an IT system that will integrate all functions and locations.