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Business Process Reengineering For CRM

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The fruits of successful Business Process Reengineering for CRM are reduced costs, shorter cycle times, improved quality and -- arguably most important -- happier customers.

The fruits of successful Business Process Reengineering for CRM are reduced costs, shorter cycle times, improved quality and -- arguably most important -- happier customers.

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  • 1. Cognizant CRM Insights BPR for CRM: Driving Business Performance to the Next Level By Christina Pruitt If you are like most executives, chances are you processes that are chronic pain points for would love to get more value from your customer customers. relationship management (CRM) investment. One proven way to increase the returns is to For example, in the retail banking industry, the reengineer CRM business processes. Most process of bringing on new customers has companies conduct a business process traditionally been problematic, both for banks reengineering (BPR) effort when embarking on a and for their customers. The on-boarding process CRM installation. But even if you are years into can be made quicker and easier for the customer, your CRM implementation, it pays to stop and take signaling that the bank respects the customer’s a closer look at your customer-related business time. And since this exchange is likely to be the processes, reengineering where necessary. consumer’s first exposure to the bank, the process could be designed to emphasize Fundamental analysis and customer preferences. Of course, consumers The fruits of successful BPR radical redesign of customer- won’t stay with a bank just because the account for CRM are reduced costs, related business processes will creation process went smoothly. But getting the shorter cycle times, improved help you achieve significant very front end of the customer experience right quality and -- arguably most improvements in process will go far toward creating loyalty. performance. That’s because important -- happier Another case in point: the processing of business processes are the customers. engines of enterprise value healthcare insurance claims. Often, claims are delivery and the key drivers of still processed by agents with minimal training business performance. The fruits of successful working on antiquated applications. The agent BPR for CRM are reduced costs, shorter cycle may not understand the nuances of a particular times, improved quality and –– arguably most patient’s coverage, and it is not uncommon for important -- happier customers. different agents to come to different results, leaving customers confused and anxious. Business processes require constant scrutiny to Similarly, each agent may interpret a doctor’s remain fresh, responsive and flexible. This is even visit or hospital procedure differently and more true when it comes to customer-facing reimburse for the same item at a different rate. processes. Customers who struggle with any Obviously, BPR can’t solve all of the ills in our aspect of your business are not likely to stick country’s healthcare system, but streamlining around for long to figure it out. BPR for CRM can processes in which agents interact with patients help by pinpointing (and then revamping) and providers is a step in the right direction. CRM Insights
  • 2. BPR for Multiple CRM Systems tomer delivery. Then, you take an objective (such as “improve the customer experience”) and Though organizations of any size can benefit determine which related from BPR for CRM, global enterprises may have a processes are ripe for reengi- BPR for CRM can help by special need. Often, these large organizations neering. The processes most pinpointing (and then end up with complex, nonstandard, inflexible likely to be targeted are any- business processes and multiple, disparate CRM revamping) processes thing involving a customer systems. This complexity arises from mergers touchpoint (including the Web that are chronic pain and acquisitions and organizational restructuring, as well as from business processes site, e-mail and call center). points for customers. that cross time zones and cultures. The BPR analyzes business processes at different challenge, therefore, is to define CRM processes levels to find improvement opportunities. In our that represent an appropriate level of client engagements, we use the following steps in commonality across the organization. our process reengineering methodology: The best approach for CRM multi-system process I Project planning and kick-off consolidation reviews duplicate processes and integrates the disparate CRM systems across the I Understand current processes enterprise to deliver effective support to I Analyze current processes activities such as sales, marketing and service. I Design improved processes The aim is to reduce duplication of effort and streamline customer-related activities. When I Implement improved processes finished, the BPR effort should result in an all- To this end, we recently helped companies in the around view across all customer touchpoints with financial services and security products corresponding improvements in customer industries to reengineer their CRM processes. experience. Toward Business Process Management BPR in Financial Services The focus of this engagement was to assess and BPR is one component of business process enhance this client’s member satisfaction management (BPM), a new way of looking at a measurement process. We first examined the business operation. BPM merges the technology company’s customer satisfaction data to pinpoint that enables the process with the business side areas of importance to for which the process exists. BPM pulls members and to discover everything together, providing a way of looking at where focused performance When finished, the BPR effort the business from a work rather than an improvement efforts would should result in an all-around organizational perspective. increase overall member view across all customer For example, the genesis of a new product satisfaction to meet its target touchpoints with corresponding offering may be marketing or R&D. Then it will go of 95% satisfaction. We through ideation and, ultimately, a service or analyzed the client’s improvements in customer product will be created. At that point, the task is current customer satisfaction experience. to figure out how to deliver the product or measurement data for its service. Product delivery will involve sales, credit card offering and identified those metrics marketing, manufacturing production, with the strongest potential impact for increasing warehousing, logistics and call center, as well as the overall member satisfaction rate. virtually every other company group. The process We developed a roadmap of recommendations to usually starts in one part of the organization and guide the client in optimizing its member then flows to other parts in a semi-controlled or satisfaction measurement process, as well as a uncontrolled manner. new data architecture for effective issue analysis, BPM refers to the management of a set of inter- including tracking and reporting issues, as well as related processes, such as new product delivery. monitoring trends. The data architecture allows You look at the whole chain, from ideation, to the client to effectively identify process implementation, to production, to sales, to cus- inefficiency for ongoing improvement. The CRM Insights 2
  • 3. operational area processes and sub-processes significant reduction of effort, labor, time to are linked to satisfaction metrics for immediate quote and speed of sale, which, in turn, drove an root-cause analysis. impressive increase in sales. As a result of this BPR effort, the financial servic- To remedy the situation, we Happier customers are es company was able to raise customer satisfac- identified enhancements to the most significant tion rates to the target level of 95%. The improve user adoption by benefit of successful BPR company expects to continuously improve its removing unused fields in the measurement process to enable further increas- application, matching list and for CRM. Reduced costs, es in customer satisfaction. form applet fields, removing shorter cycle times and general complexity, pre- improved quality are the populating common fields, Security Industry Company icing on the cake. reducing the number of items in A leading provider of security products came to the list of values (LOVs), and us for help when employees complained of poor matching screen and data flow to end-user CRM application usability. Specifically, users had workflow. After the usability improvements, end- difficulty with screen navigation, data entry, user adoption rose considerably, enabling more workflow issues and coping with the application’s consistent customer service and leading to a more overall complexity. In short, they were unhappy satisfying customer experience. Other benefits with the usability of the application and were not included overall streamlined processes for pricing using it. and service delivery. We conducted an end-user analysis, reviewing Wherever you find yourself in your CRM journey, the application from the end-user perspective reengineering customer-related business and how they actually used the application. We processes will help you achieve significant reviewed end-user workflow processes and improvements in process performance. Business compared these to the application workflow to processes are the engines of enterprise value identify gaps. There were significant gaps in the creation and the drivers of business use of best practices, such as with its Quote-to- performance. Happier customers are the most Cash process, which took some users days to significant benefit of successful BPR for CRM. complete instead of a few minutes to do online. Reduced costs, shorter cycle times and improved Redesigning this business process resulted in a quality are the icing on the cake. About the Author Christina Pruitt is Cognizant's Director of CRM Strategic Consulting. She has 25 years of experience in the CRM space. Christina can be reached at Christina.Pruitt@cognizant.com. About Cognizant Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process outsourcing services. Cognizant's single-minded passion is to dedicate our global technology and innovation know-how, our industry expertise and worldwide resources to working together with clients to make their businesses stronger. With over 50 global delivery centers and more than 68,000 employees as of September 30, 2009, we combine a unique onsite/offshore delivery model infused by a distinct culture of customer satisfaction. A member of the NASDAQ-100 Index and S&P 500 Index, Cognizant is a Forbes Global 2000 company and a member of the Fortune 1000 and is ranked among the top information tech- nology companies in BusinessWeek's Hot Growth and Top 50 Performers listings. Start Today For more information on how to drive your business results with Cognizant, contact us at inquiry@cognizant.com or visit our website at www.cognizant.com. World Headquarters European Headquarters India Operations Headquarters 500 Frank W. Burr Blvd. Haymarket House #5/535, Old Mahabalipuram Road Teaneck, NJ 07666 USA 28-29 Haymarket Okkiyam Pettai, Thoraipakkam Phone: +1 201 801 0233 London SW1Y 4SP UK Chennai, 600 096 India Fax: +1 201 801 0243 Phone: +44 (0) 20 7321 4888 Phone: +91 (0) 44 4209 6000 Toll Free: +1 888 937 3277 Fax: +44 (0) 20 7321 4890 Fax: +91 (0) 44 4209 6060 Email: inquiry@cognizant.com Email: infouk@cognizant.com Email: inquiryindia@cognizant.com © Copyright 2009, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners.