Page 512 - Handbook of Modern Telecommunications

Network Organization and Governance 4-43

relationships has changed. Consumers have many choices to meet their needs, and aggressive advertising
or access to the Internet increasingly broadens a consumer’s horizons for competing products.
Companies are competing for the same customer, and successful businesses must provide a supe-
rior relationship with customers to stand out. In a way, the rise of CRM systems and methodologies
that exploded in the late 1990s was merely a desire to return to “traditional” customer relationships.
Successful corporations win and keep customers and prospects by establishing direct, sustainable, and
manageable relationships.

4.3.7.1 Customer Data in the Telecommunications Industry
The telecommunications industry is a good example of how vital customer knowledge is to compete
more effectively and nurture customer loyalty. Business managers and decision makers are constantly
facing the need to answer fundamental business questions such as, “Who are our most profitable cus-
tomers?” “What makes them profitable?” and “Which marketing campaigns should be developed to tar-
get this segment?” in order to monitor customer base evolution and behavior, define the most adequate
marketing strategies, and assess the overall operational performance.
However, the intelligence required to answer this type of question is spread across several operational
databases (billing, CRM, mediation, provisioning, enterprise resource planning [ERP], etc.) that do not
support the ability to easily query, report, and analyze business data. Moreover, it is extremely complex
to cross data coming from different systems. For instance, correlating traffic and customer data would
be very useful to define the most competitive pricing plans.
4.3.7.2 Customer Relationship Management (CRM)
CRM is the alignment of business strategy, organizational structure and culture, and customer infor-
mation and technology so that all customer interactions can be conducted to the long-term satisfac-
tion of the customer and to the benefit and profit of the organization. To implement a coordinated,
customer-focused business strategy, an organization must have business strategies that promote CRM
across functional boundaries. Goals that include phrases such as “customer-focused” or “customer sat-
isfaction” are indicators that CRM is important. However, if there are no underlying strategies in place
that force a customer view across business functions, the organization is not likely to move far from the
traditional product focus.
Telecommunications companies having the desire for customer-focused initiatives must implement
enterprise strategies for moving the company in that direction. It should create a CRM-friendly organi-
zational structure (see Figure 4.3.4). The overall organizational structure must promote cross-functional
cooperation. Independent product-oriented business units, multiple marketing and sales organizations,
and distributed customer care centers can all inhibit an organization’s ability to determine and carry
out the next promotion or service activity for the customer. With the autonomy and control possessed
by each business unit executive, the telecommunications companies may lack the organizational struc-
ture required to implement cross-department initiatives.
4.3.7.2.1 CRM-Savvy Organizational Culture
Culture is a critical but often overlooked factor that can have a strong influence on the success or failure
of any CRM endeavor. There are three predominant aspects to consider: (1) the organization’s ability
and willingness to effect change in business and thought processes, (2) the degree to which the busi-
ness units work together, reach compromise, and facilitate shared strategies, and (3) it is important that
executives support CRM.

4.3.7.2.2 Integrated Customer Information Environment
Customer information is the cornerstone of a successful CRM program. This information must provide
a common customer view and must be distributed across the organization to facilitate both operational
and analytical uses. This always requires a technology architecture that integrates multiple applications,