Private sector sees CRM as too complex

Many private sector organisations are questioning customer relationship management (CRM) projects because of the complexity involved. But a shareware project instigated by Newham Council in East London could bring substantial benefits to authorities across the country.

Peter Hunter, consultant for the consulting division of the Society of IT Managers (Socitm), said that Newham used its considerable in-house IT skills to build its own CRM system for use in council contact centres and One Stop shops.

Newham first started work on the project about four years ago in partnership with a vendor which Richard Steel, head of ICT at Newham, did not wish to name.

"We developed a spec together and our 'partner' came back with a quote which we hadn't asked for. The cost was double what we'd envisaged, as was the development time. They wouldn't even discuss shared intellectual property rights. So we decided to do it ourselves," he said.

Steel explained that sharing the software with other authorities was the next logical step. "What's in it for us is sustainability," he said. "In a diverse business like local government, CRM is never finished and we now have the scope to share the cost of development."

He maintained that his project was unique at the time, but that some commercial CRM packages bear similarities. "We had seen technology vendors to discuss other projects, so it's not altogether surprising," he said.

Hunter added that there was a philanthropic element too. The community of IT managers in the public sector relies on idea sharing, and Socitm's seminars and website contain a wealth of knowledge. This also happens in the commercial sector, but too often common technology goals are obstructed by the need to compete with business rivals.

Moulded to fit

The CRM system was initially offered to other councils in its original form, but it became apparent that it would have to be moulded to fit individual council requirements. Newham was not in a position to develop and market the project, but it wasn't suitable for smaller councils with a lower level of IT expertise.

In the spring of 2001, Socitm Consulting (SC) was invited to conduct a feasibility study into the project being extended to interested councils. It was dubbed the Shareware Club and SC now has 33 councils contributing funds.

Parallel to considering the technical issues, SC looked into the kind of entity the shareware project should become. "There are intellectual property rights to consider, plus maintenance, support and ongoing development. We're considering using a commercial vendor to supply one or more of those elements," said Hunter.

So far the signs are encouraging, but it hasn't been a smooth ride. Hunter warned that the process had taken longer than some shareware club members had hoped. "It is tricky, but we have to get it right. Councils must have confidence in the technology," he said.

"The real challenge is not technical, it is the culture change," explained Steel. "We're trying to break down the silo culture that exists in some departments. CRM must reach into every department."

As the commercial sector has discovered, unless CRM reaches into every nook of an organisation, much of the technology's value is prone to dribble away.

Changing staff culture and working practices is the pivotal issue. "While we're keen to maintain e-government momentum, there are personnel issues in assessing and identifying what the actual needs are," said Hunter.

Socitm said that early signs indicated the one-off cost of obtaining the system could be as little as £10,000, although many will want to buy into ongoing support and development.

Progress despite difficulties

Hunter said the difficulties the project had encountered were indicative of how potentially useful the end product could be. When asked how confident he was that the shareware project would deliver, he said it depended whether you caught him on a pessimistic or optimistic day.

"We had hoped for a bit more progress by now but it's clear that, in an e-government age, this kind of system is likely to become a core technology for councils. It will need to interoperate with back office systems like benefits and council tax," he said.

And could it be used as a template for a new kind of public sector system development? "That's certainly something in the minds of some of the councils that have met with us," said Hunter.