Understanding the technology and organizational elements of customer relationship management systems

Abstract

To build a clear understanding of the management of the technology and organizational elements of CRM systems, this research tries to form propositions based on literature findings and experts` experiences to explain (1) the elements of the technology and organizational sides of a CRM system, and (2) how the technology and organizational elements interrelate to create effective CRM operation. The goal is to build in-depth knowledge of the dynamics of CRM systems and to suggest lasting organizational capabilities that are adaptive to environmental changes. Adopting the socio-technical view, the technology and organizational elements of CRM are closely interrelated in the operation of a business. The technology elements of an enterprise-wide CRM system can be organized into three parts: communicational CRM that coordinates all channels of customer contacts, execution CRM that consists of all value chain activities that execute customer relationship establishment and maintenance, and intelligent CRM that consolidates business intelligence about customers. The three interrelated elements provide a technical structure for customer value-generation activities. While the organizational resources including structure, processes, culture, and user abilities are elements that need to be aligned and coordinated with CRM technologies. Management of a CRM system, therefore, can be considered as managing an organism that requires interdependent elements to work together to maintain a continuous capability of creating and sustaining customer relationships.