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| Gartner Says a Majority of Businesses Will Underestimate Costs of CRM Projects by as Much as 40 Percent to 75 Percent Through 2006 |
| CRM project management discussed at Gartner's CRM Fall Summit 2001 |
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ORLANDO, Fla., September 11, 2001 - Many businesses are implementing customer relationship management (CRM) strategies, but a majority of them will underestimate the costs of CRM projects by as much as 40 percent to 75 percent, according to Gartner, Inc. (NYSE: IT and ITB).
Gartner analysts discussed the importance of CRM project management today at Gartner's CRM Fall Summit 2001, which runs through September 12 in Orlando, Florida. To control investments associated with CRM initiatives and avoid negative economic impact, Gartner advises businesses to develop and integrate key project management tools to guide decision-making throughout CRM initiatives. "Many businesses blindly pursue costly CRM initiatives without understanding the challenges and costs involved," said Beth Eisenfeld, research director for Gartner. "Project management tools are the key to managing the economic factors and keeping projects on track and profitable." Large businesses can spend between $30 million and $90 million over a three-year period investing in technology, labor, consulting services and training related to CRM initiatives. With businesses investing substantially in CRM initiatives, Gartner analysts said project management is becoming crucial to contain costs and increase successful CRM projects. CRM initiatives are most successfully managed by using a combination of four project management tools specifically designed to manage the intricacies of CRM projects. These tools include total cost of ownership (TCO), a holistic view of IT costs across the enterprise over time and includes people, process and technology; benefit projections; ROI projections; and work plans for the various implementations of technology that will enable CRM. Each of these tools is an input into the critical business case analysis that should be done prior to embarking on CRM initiatives to ensure the decision to pursue CRM is economically sound and a good investment. "By using these tools to increase overall success, project managers would be able to assess and prioritize project initiatives such as breadth and depth of functionality, use of external service providers, vendor selection, and a centralized versus distributed model," Eisenfeld said. "They would also be able to staff the project with the appropriate resources while understanding the consequences caused by improper staffing. It would also be possible to build best-case and worst-case scenarios to monitor ongoing activity and run numbers on a monthly basis for board approval and monitoring by senior management. Using these tools to manage CRM projects, in addition to using them for program justification, ties it all together." Gartner analysts will provide further analysis on this issue during the Gartner Symposium/ITxpo 2001, October 8-12, in Orlando, Florida. Attendees will be able to choose from more than 250 in-depth, analyst-led sessions that explore IT inside and out. Gartner analysts will show how companies can align and manage their IT strategies and investments for bottom-line advantage. More information on Gartner Symposium/ITxpo 2001 is available on the Gartner Web site at www.gartner.com/symposium/us. Members of the media can register by contacting Lisette Kwong at 212-320-2330 or at lkwong@tsicomm.com. About Gartner, Inc. Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions are Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Conn. and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenues of $855 million. For more information, visit www.gartner.com. |
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Contact: Danielle Westling Gartner 203-316-6754 danielle.westling@gartner.com |
