Assignment 7
XYZ Companys CustomerRelations Management (CRM) Project
Six months ago, the Executive Committee of XYZ Company madea decision to install a Customer Relations Management (CRM) system tostreamline its operations. Specifically, XYZ expected that the CRM project wouldenable it to integrate its order fulfilling and sales and marketing processesthat had always operated as separate functional units. As a result,communication between these units has regrettably been minimal. For example,the order-fulfilling unit did not have any information about the customerswhose orders they fulfilled. Similarly, the sales and marketing unit could notanswer customer inquiries about the status of their orders because they did nothave the information from the order fulfilling people. The Executive Committeeassigned responsibility for the project to the IT department, which in turnappointed Steve McMahon as the focal person for the project. The ExecutiveCommittee also decided that the project should be outsourced to an outside contractorwith a good track record in implementing CRM solutions.
Steve developed the initial requirements for theproject. He then called a focus groupmeeting to review the requirements statement he had developed. The groupconsisted of middle managers from marketing and sales, IT, operations, financeand engineering. The meeting improved upon Steves requirements statement anddeveloped the business requirements for the project from it. The focus grouplater became the projects steering committee. A Statement of Work (SOW) andthen a Request for Proposal (RFP) were developed based upon the businessrequirements. At the end of the solicitation process, Computer SoftwareSolution, Inc. won the contract, and started implementation of the project asdefined by the SOW.
Two months later, Steve was sitting in his office reviewingthe latest status reports on the project the contractor had submitted. He wassatisfied with the projects performance so far. At that moment, Roger Smith,the Vice President (V.P) for marketing and sales phoned Steve and asked for abriefing on the project. At the end of the briefing, the V.P told Steve that hewas distressed about the suitability of the final product. He protested thatthere was by far too much emphasis on order fulfillment instead of customerprofiling. He bluntly told Steve the product, as you have described it, wouldnot be an effective market research tool as I expected it to be.
He then hung up. Moments later, he was on the phone again,but this time with Francis Gray, the contractors project manager. Roger toldFrancis that what he expected to see at the end of the project was a productthat would enable his unit to undertake effective market research. He thereforespecifically gave Francis the go ahead to make changes in the productsfeatures to include customer profiling that would enable him to achieve hisgoals. Francis politely told Roger that the prototype of the product was 40%completed and that his request would require a major redesign of the product.This would extend the project by another two months and would result inbudgetary overruns. Francis also told Roger that before he (that is, Francis)could make any design changes, he needed to consult with Steve and othermembers of the projects steering committee. This was more than Roger couldtake and he quickly shot back: I am the customer. I demand that the productinclude the customer profiling features, period.
When Steve learned of Rogers demands on the contractor, hegrew confused. He didnt know what to do.
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