CRM, if it’s working right, is a tool for destroying the 80-20 business equation.

The best examples of CRM wrecking 80-20 rule are experienced when methodology is formalized, integrated into business processes and encoded within software. Few examples to illustrate the point are dramatic improvements in

• margin via elimination of excessive discounting caused by inadequate forecasting methods and practices;
• new sales hires retention and rump up enabled by clearly stated process guidance, terminology, and definitions; 
• lead conversion ratio since streamlining of pipeline management eliminates “stale” leads;
• customer satisfaction, i.e. retention enabled by flowing customer (contact/person) information across departments/sales teams/customer support/marketing, etc. within a proper context.

That makes CRM initiatives such a high risk/but much higher return proposition - if done right the ROI is much higher and faster than most of other options.

Let’s face it - primary responsibility of IT today is a risk management, not investment into loosely defined concepts like Enterprise 2.0. (more…)

This is my reaction to a post of Vinnie Mirchandani and an interview with JP Rangaswami, link to which I found there.

I am a subscriber to JP blog, and largely agree with most of what is discussed in this interview on a strategy level. However I have a big problem with an execution side of this E2.0 philosophy.

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