Implementation sa CRM system into a health organisation: case study A company's attempt to implement a new CRM system proved to be a disaster, resulting in the loss of 6% of its health care memberships and 40% stock value in twelve months. The new company CIO implemented an ambitious plan to collaborate the firm's outdated IT systems in 2001 so that they could use an integrated system to process enrolment, eligibility and claims. The advantages of this system would be faster processing of medical claims and customers would receive one consolidated bill Therefore, two integrated systems were needed to achieve this one for company customers and one for the finan's indemnity products. To implement the new CRM, a completely new AS400 infrastructure had to be built Although a majority of this work was completed in-house, a third party was hired to successfully implement the new business management processes and new customer-orientated applications that members could use for enrolment, to check the status of their claims and to select offerings. To manage the call centre tasks, Siebel software was employed without sufficient planning For several reasons, the company found itself under significant time pressure to implement the new systems. Firstly, thousands of national doctors were in the process of suing the company for delayed payments for patient care. Secondly, a promise was made by the sales team to implement an improved customer service system by carly 2002 in a bit to acquire large employer accounts. Lastly, the management team was forced to cut costs following dismal company figures in the second quarter of 2001 The company began moving members over to the new system in 2001, around the same time that customer service staff started being laid off by the company. As new members joined the company and existing ones renewed their memberships in January 2002, many customers were simultaneously moved onto the new system. This caused significant problems with customers suddenly experiencing problems when attempting to obtain health coverage. Moreover, ID cards with incorrect information and missing prescription icons were issued to members. This means that customers were unable to obtain their prescriptions at local pharmacies. This led information and missing prescription icons were issued to members. This means that customers were unable to obtain their prescriptions at local pharmacies. This led to a wave of calls to the customer service centre, which was already struggling due to the layoffs Customers were placed on hold for extensive periods, only to reach u representative who was now and insufficiently trained in using the new system. Nonetheless, the company has overcome the initial tocthing problems and the CRM system is now efficiently used to process medical claims and address customers' needs. Questions: 1. What were the reasons for CRM Implementation failure in the first place? Explain at least 2 reasons. 2. How could this failure has been avoided? Explain in 3 valid points. 3. Explain in 3 valid points the benefits of CRM if the CRM implemented well? Implementation of a CRM system inte a health organisation case study A company's attempt to implement a new CRM system proved to be a disaster, resulting in the loss of 6% of its health-care memberships and 40% stock value in twelve months. The new company to implemented an ambitious plan to collaborate the firm's outdated IT systems in 2001 so that they could use an integrated system to process enrolments, eligibility and claims. The advantages of this system would be faster processing of medical claims and customers would receive one consolidated bill Therefore, two integrated systems were needed to achieve this, one for company customers and one for the firm's indemnity products. To implement the new CRM, a completely new AS400 infrastructure had to be built Although a majority of this work was completed in-house, a third party was hired to successfully implement the new business management processes and new customer-orientated applications that members could use for enrolment to check the status of their claims and to select offerings. To manage the call centre tasks Sicbel software was employed without sufficient planning For several reason, the company found itself under significant time pressure to implement the new systems. Firstly, thousands of national doctors were in the proces of suing the company for delayed payments for patient care. Secondly, a promise was made by the sales team to implement an improved customer service system by early 2002 in a bit to acquire large employer accounts. Laily, the management team was forced to cut costs following dismal company figures in the second quarter of 2001 The company began moving members over to the new system in 2001, around the same time that customer service staff started being laid off by the company. As new members joined the company and existing ones renewed their memberships in January 2002, many customers were simultaneously moved onto the new system. This tamed significant problems, with customers suddenly experiencing problems when attempting to obtain health coverage. Moreover, ID card with incorrect information and missing prescription icons were issued to members. This means that customers were unable to obtain their prescriptions at local pharmacies. This led to a wave of calls to the customer service centre, which was already struggling due to the layoffs. Customers were placed on hold for extensive periodu, only to reach to a wave of calls to the customer service centre, which was already struggling due to the layotis a representative who was new and insufficiently trained in using the new system. Nonetheless, the company has overcome the initial teething problems and the CRM system is now efficiently used to process medical claims and address customers' needs. Questions: 1. What were the reasons for CRM Implementation failure in the first place? Explain at least 2 reasons. 2. How could this failure has been avoided? Explain in 3 valid points. 3. Explain in 3 valid points the benefits of CRM if the CRM implemented well