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Knowledge Creation Laboratory by CRM(xRM)

CRM Possibilities: Two CRMs

While our website features information on the necessity of CRM , this blog, being the "Knowledge Creation Research Lab," will focus on the future possibilities of CRM .

The necessity of CRM : http://www.arcuss-japan.com/first

Before we get into that, let's go back a little in time and look at the CRM boom around the 2000s.
This was the early days of the IT revolution, when the Internet had yet to mature. Rationalization, the IT utilization model that supported the early IT revolution, was gaining momentum, and package systems were gaining popularity. It was during this time that the CRM system was born. (This was the first CRM system, or what I call "package CRM.")
This CRM system was born at a time when IT had only reached the stage of rationalization, and functionally it was only able to cover the vertical CRM in the "CRM model" (see Figure 1 below), so the overall picture was far removed from the original CRM. This is why for a time it was said that "CRM" and "CRM system" were different things.

Figure 1 CRM model
-?CRM - The Customer is There (by Toru Murayama/Koji Mitani + Accenture)Excerpt from -

CRM is a management method that originally originated from a marketing technique called relationship marketing, and was developed with the aim of meeting consumer needs on a one-to-one basis.
Naturally, as the CRM model shows, the basis of this idea is the concept of achieving "total optimization" of a company, so CRM systems that can only be applied to a portion of the lowest level (only partial optimization) have naturally developed into systems with different characteristics, and various markets have been created.

Simply put, there are two types of CRM in the current era, as shown below, which may be why the market is less clear than ERP.

A.CRM as a management method: Has the property of global optimization.
Two.CRM evolved from IT systems: It has the properties of partial optimization (or overall rationalization).

The second type of CRM is the commonly seen IT system CRM (Siebel, SAP CRM, Salesforce.com, etc.), and it seems that many people in Japan still refer to this type when they say CRM.

It has long been said that the Japanese are good at optimizing parts, and in the phase of rationalization through IT, Japan was a leading IT nation that spearheaded the world, as evidenced by comparisons with GDP published by the Ministry of Economy, Trade and Industry. However, it seems that Japan remains weak when it comes to overall optimization, as it stagnates in Model 2 (realizing services that do not exist) of Gartner's " Bimodal IT " model, and now it is not making effective IT investments (proactive IT investments), and it would not be an exaggeration to say that Japan has fallen to a level where it is an IT laggard.

While IT is essential for its implementation, CRM unfortunately branched into two distinct approaches. However, thanks to the development of current IT systems, it has been reborn as a " platform-type CRM (xRM) " system that realizes the original "CRM as a management method," making it easy to initiate overall optimization through "ValueOps"!

As I've stated in past interviews , Japan is a country where CRM culture, such as traditional ledger systems and hospitality, is deeply rooted. Therefore, I believe that if we properly optimize the entire system, Japan can definitely become one of the world's leading IT advanced nations.

The CRM market is still not clearly defined as a mix of packaged CRM and platform-based CRM, and currently only a few companies are benefiting from CRM. However, I want to use the expertise I've cultivated since the first CRM boom as a consultant and engineer, combined with my product knowledge of "Dynamics CRM," a platform-based CRM that I've been using since its release, to create a suite of solutions based on a "personalized CRM (customer relationship management) solution methodology" that will empower my customers and, by extension, Japan as a whole.

Person who wrote this article
Shinsuke Matsubara

Arcus Japan Representative Director / CRM Consultant
Click here for detailed profile
He has worked as a system engineer, architect, and consultant at Accenture and other companies, an evangelist at Infragistics (Microsoft MVP for Dynamics CRM (now Microsoft MVP for Business Solutions)), and a solutions specialist at Microsoft (in charge of Dynamics CRM products).He currently leads a service team specializing in CRM, supporting CRM implementation and business launches for companies of all sizes.At the same time, he works as a CRM evangelist, spreading the idea of "true" CRM through events and article contributions.
Having learned CRM at Accenture, and having advocated and globally popularized CRM 2.0 (platform-based CRM) at Microsoft, he is a legitimate successor to CRM and the longest-serving active CRM expert (CRM consultant/CRM doctor), having received an award at Worldwide.
Since then, as a leading expert in CRM who advocates CRM 3.0 (Personalized CRM) and CRM 4.0 (Creative CRM), he has been interviewed and received numerous awards both domestically and internationally from publications such as The Wall Street Journal, Newsweek, TIME, WORLDCOM, Mainichi Shimbun (Weekly Economist), and Nippon Cultural Broadcasting. He has also been selected as a representative company of the Kansai business community by "Keizaikai" for four consecutive years.
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