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Implications of change management in public administration

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Revista T<strong>in</strong>erilor Economişti (The Young Economists Journal)<br />

use people, processes, and technology to ga<strong>in</strong> <strong>in</strong>sight <strong>in</strong>to the behavior and value <strong>of</strong><br />

customers.<br />

"There's no such th<strong>in</strong>g as CRM," said Jim Dickie, partner for Insight<br />

Technology Group, a CRM benchmark<strong>in</strong>g firm that specializes <strong>in</strong> analyz<strong>in</strong>g how<br />

companies are re<strong>in</strong>vent<strong>in</strong>g how they market, sell to, and service customers. "Siebel<br />

Systems, alone, has 117 different CRM applications each bred to address different<br />

problems." The trick is f<strong>in</strong>d<strong>in</strong>g the best solution for your job.<br />

To understand each party's problems, needs, and capabilities, both bus<strong>in</strong>ess<br />

managers and IT pr<strong>of</strong>essionals must familiarize themselves with the other side <strong>of</strong> the<br />

CRM equation. Bus<strong>in</strong>ess managers can come up to speed on CRM technology, and IT<br />

pr<strong>of</strong>essionals can ga<strong>in</strong> <strong>in</strong>sight on how to become more familiar with CRM bus<strong>in</strong>ess<br />

issues.<br />

Worldwide CRM market revenue totalled $9.15 billion <strong>in</strong> 2008, a 12.5 percent<br />

<strong>in</strong>crease from 2007 revenue <strong>of</strong> $8.13 billion, accord<strong>in</strong>g to Gartner Inc. Analysts said<br />

that market growth was driven by enterprise <strong>in</strong>vestments <strong>in</strong> technologies focused on<br />

customer retention, analytics and on-demand solutions. “Despite f<strong>in</strong>ancial market<br />

volatility, the worldwide CRM market enjoyed its fifth consecutive year <strong>of</strong> double-digit<br />

growth as bus<strong>in</strong>esses cont<strong>in</strong>ued to <strong>in</strong>vest <strong>in</strong> solutions across all subsegments,” said<br />

Sharon Mertz, research director at Gartner.<br />

SAP cont<strong>in</strong>ued to be the market leader account<strong>in</strong>g for 22.5 percent <strong>of</strong><br />

worldwide CRM s<strong>of</strong>tware revenue <strong>in</strong> 2008 (see Table 1), but this is down from a 25.5<br />

percent share <strong>in</strong> 2007. Micros<strong>of</strong>t experienced the strongest growth rate among the top 5<br />

vendors, as its revenue <strong>in</strong>creased 75 percent <strong>in</strong> 2008.<br />

Table 1. Worldwide Vendor Revenue Estimates for Total CRM S<strong>of</strong>tware (Mill. $)<br />

Company<br />

2008<br />

Revenue<br />

2008 Market<br />

Share (%)<br />

2007<br />

Revenue<br />

2007 Market<br />

Share (%)<br />

2007-2008<br />

Growth (%)<br />

SAP 2,055 22.5 2,072 25.5 -0.8<br />

Oracle 1,475 16.1 1,320 16.2 11.8<br />

Salesforce.com 965 10.6 676 8.3 42.7<br />

Micros<strong>of</strong>t 581 6.4 332 4.1 75.0<br />

Amdocs 451 4.9 419 5.2 7.6<br />

Others 3,620 39.6 3,311 40.7 9.3<br />

Total 9,147 100.0 8,130 100.0 12.5<br />

Source: Gartner (July 2009)<br />

While the CRM market rema<strong>in</strong>s highly concentrated <strong>in</strong> Western economies,<br />

emerg<strong>in</strong>g markets are grow<strong>in</strong>g rapidly and now account collectively for nearly 16<br />

percent <strong>of</strong> the worldwide market, up from approximately 13.8 percent <strong>in</strong> 2006.<br />

Although both North America and Europe underperformed <strong>in</strong> terms <strong>of</strong> CRM market<br />

growth <strong>in</strong> 2008, their share <strong>of</strong> the market rema<strong>in</strong>ed high at 52.5 percent and 31.6<br />

percent, respectively.<br />

The three phases <strong>in</strong> which CRM support the relationship between a bus<strong>in</strong>ess<br />

and its customers are to:<br />

- Acquire: CRM can help a bus<strong>in</strong>ess acquire new customers through contact<br />

<strong>management</strong>, sell<strong>in</strong>g, and fulfillment.<br />

- Enhance: web-enabled CRM comb<strong>in</strong>ed with customer service tools <strong>of</strong>fers<br />

customers service from a team <strong>of</strong> sales and service specialists, which <strong>of</strong>fers<br />

customers the convenience <strong>of</strong> one-stop shopp<strong>in</strong>g.<br />

- Reta<strong>in</strong>: CRM s<strong>of</strong>tware and databases enable a bus<strong>in</strong>ess to identify and<br />

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