What are the main causes for perceived failure in CRM system implementation projects?

Abstract

As the importance of having good CRM has increased, so has the importance of having good CRM technology. However, despite the benefits these solutions bring, many CRM projects result in failure. The aim of this study was to analyse CRM technology and CRM system implementation projects to gain a better understanding of the underlying factors leading to perceived project failure, and to identify which the main causes that lead to this outcome are. The theoretical framework aimed at analysing CRM technology and project related resources and elements, change management models, project prioritisation and business strategy methodologies. The empirical part of the study was conducted in the form of qualitative research, as a case study. Data was gathered by conducting three in-depth semi-structured interviews and by studying project management related documents provided by a CRM consultancy. Based on this study, the most common reasons for perceived project failure are people related, and the main underlying factor is communication. While companies aim is to meet all project goals, the results of this study suggests that there are clear differences between how they are prioritised. Meeting the quality target is the highest priority, while time can be sacrificed as long as other targets can be met by doing so. The quality target does however have a strong correlation to cost related goals. Thus, the definition for project failure in a sentence is a final product that does not work or that does not meet business expectations.