Executive Summary for Implementation of CRM in XYZ Global Pvt. Ltd
XYZ Global Pvt. Ltd decided to implement the CRM project using their high end product of project management methodology. However, due to complexity and budget of the project it requires in-depth analysis of critical factors for CRM implementation and support of top management.The project management, change management and sponsorship is identified as crucial factors in getting green signal for the implementation of CRM project.(Reinartz, Kraft& Hoyer, 2004).
The present paper discusses statistical interpretation of research data to find whether CRM project is worth pursuing given the strength of firm’s project management capability along with market evaluation of CRM implementation.
Market analysis shows that 47% of the company finds that inadaptability of the end-user with CRM applications put the project in jeopardy(Coltman and Devinney, 2007). Data is analyzed for implementation of CRM through different vendors for companies of all range from less than $750K to over $10M.It consists of implementation statistics over the past 10 years.
To analyze research data, Bayes’ theorem is selected as the probability model that was close to implementation of CRM project. Statistics and Probability Tutorial(n.d.) states that Bayes’ theorem looks appropriate in the context as it provides logical inference to calculate the degree of confidence based on already gathered evidence.
Statistical result of data reflects that the probability of project being failed by a project management methodologyis 47%. Conditional probability calculation shows that if there is established project management methodology in the firm there was a 16% chance the project would fail.The CRMresearch analyst additionally stated that even though a project management is not adequate, failure is not always imminent. Failure also depends on the subjective nature of the organization adoption of new technology. The probability of the project being not being failed due to lack of project management methodology is .35.
Posterior probability according to Bayes’ shows us the probability of CRM implementation failure given project management methodology is already in place. The value turns out to be equal to 0.47. Now, if project management methodology is adequate provided that the market research positively identifies a status of project management methodology in the firm, then the probability of CRM implementation failure decreases from 0.47 to 0.2884.
Reference
Bibliography
Coltman T. and Devinney, T. M. (2007): Customer Relationship Management, Market Orientation and Firm Performance, AGSM working paper, Centre for Corporate Change, University of New South Wales.
Reinartz, W., Krafft M., and Hoyer W. D. (2004): The Customer Relationship Management Process: Its Measurement and Impact on Performance, Journal of Marketing Research, 41 (August), pp. 293–305.
Web Site
Statistics and Probability Tutorial: Introduction. (n.d.). Retrieved July 29, 2009, from STAT Trek:
CRM Landmark. (n.d.). Retrieved July 29, 2009, from CRM Survey: