Implementing SAP® CRM: The Guide for Business and Technology Managers, 1st Edition (Hardback) book cover

Implementing SAP® CRM

The Guide for Business and Technology Managers, 1st Edition

By Vivek Kale

Auerbach Publications

513 pages | 35 B/W Illus.

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pub: 2014-12-03
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In today's competitive business environment, most companies realize that the better they can manage their customer relationships, the more successful they will become. Customer Relationship Management (CRM) software systems are key tools for companies to manage the customer-facing processes of their businesses. However, many companies have resisted implementing this most critical customer-oriented application due in large part to the lack of a single-point resource on implementing a CRM system. This book attempts to fill that gap.

Implementing SAP® CRM will help technologists and managers come to grips with the vision, concept, and technology of CRM. It begins by laying out the groundwork for understanding CRM. It explains the concept and context of CRM and the tangible business benefits of CRM adoption. Demonstrating a professional approach to the evaluation and selection of SAP, it details the critical success factors (CSFs), patterns, and anti-patterns of a successful SAP CRM implementation.

CRM implementations can add significant benefit to the company’s bottom line only if the company first transforms itself into a customer-centric and customer-responsive enterprise. This book explains what it means to be a customer-centric and responsive enterprise, and provides a framework for business operations based on customer relationships, rather than the traditional four Ps (product, positioning, price, promotion). It further spells out business process reengineering (BPR) strategies to configure internal business processes and operations with SAP CRM to improve customer-facing strategies, services, and relationships.


"Vivek Kale’s book is an authoritative and wide-ranging commentary on SAP CRM's value to business adopters. A much welcomed addition to my CRM library."

— Dr. Francis Buttle, Professor, Consultant, and Author of Customer Relationship Management: Concepts and Technologies

"Vivek Kale’s book provides a significant and exceptional contribution to the body of knowledge for Customer Relationship Management (CRM). The book is unique in that it explains the role that software technology has in implementing and sustaining a robust CRM business program. It is written with a comfortable style and does an excellent job of explaining the nuances of CRM."

— Gary Cokins, Founder, Analytics-Based Performance Management LLC, Author of Predictive Business Analytics and Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics

Table of Contents




The Relationship-Based Enterprise

SAP: Company and Its CRM Product

Concept of CRM

Customer Centricity

Customer Responsiveness

Compelling Customer Experiences

Customer Loyalty

Customer Relationships

Customer Life Cycle (CLC)

Customer Value Management (CVM)

Customers as Lifelong Investments

Management by Collaboration

The Relationship-Based Enterprise (RBE)

The Information-Driven Enterprise

The Process-Oriented Enterprise

The Value-Add Driven Enterprise

Enterprise Change Management

The Learning Enterprise

The Virtual Enterprise

The Agile Enterprise


Customer Relationship Management (CRM) System

Introduction to Customer Relationship Management (CRM) Systems

CRM Transforms an Enterprise into an Information-Driven Enterprise

CRM Perceives an Enterprise as a Global Enterprise

CRM Reflects and Mimics the Integrated Nature of an Enterprise

CRM Fundamentally Models a Process-Oriented Enterprise

CRM Enables the Real-Time Enterprise

CRM Enables the Intelligent Enterprise

CRM Elevates IT Strategy as a Part of the Business Strategy

CRM Advances on the Earlier Approaches to Performance Improvement

CRM Represents the New Department Store Model of Implementing Computerized Systems

CRM Is an End-User-Oriented Application Environment

Anatomy of a CRM System

Application Maintenance–Related Systems

User-Interface-Related Systems

Application Management–Related Systems

Application Support–Related Systems


Types of CRM Systems

Closed-Loop CRM

Why Use CRM?

ERP versus CRM

CRMs as Keepers of Customer Knowledge Assets

Collaborative Enterprise

Extended Collaborative Enterprise

Extended Relationship Management (ERM)

Electronic Customer Relationship Management (eCRM)

Data Warehouse and Customer Analytics (ERM)

Data Mining

Customer-Triggered Company

Event-Driven Business Systems


CRM Evaluation

Capital Budgeting Models

Payback Method

Accounting Rate of Return on Investment

Net Present Value (NPV)

Cost–Benefit Ratio

Profitability Index

Internal Rate of Return (IRR)

Economic Value Added (EVA™)

Total Cost of Ownership (TCO)

Preparing a Business Case for CRM

Financial Approach

Cost Reduction Approach

Strategic Approach

CRM Acquisition Decision Process

General Considerations of CRM Evaluation

Checklists for CRM Evaluation

Checklists for CRM Functional Requirements

Significant Issues To Be Considered while Evaluating CRM

CRM Product Functionality and Features

Vendor Credibility

CRM Architecture and Technology

CRM Implementation and Use

Investments and Budgets

CRM Infrastructure

CRM Implementation Time


CRM Selection

SAP CRM for the Small and Medium Enterprises

CRM Selection Process

Selection Team

Functional Team

Technical Team

Technology Team

Commercial Team

CRM Core Selection Methodology

Process Selection

Enterprise Process Mapping

Script Tests

Stress Test

CRM Vendors and Products

Application Suites or Best in Class

Industry-Specific Functionality

Large Enterprises

Small and Mid-market Enterprises

CRM Products Comparison

CRM Selection Report

CRM Systems Comparative Chart

Script and Stress Test Reports

Recommendation Report


SAP CRM Solution

SAP the Company




R/3 Enterprise

SAP NetWeaver

mySAP Business Suite

Small and Medium Business Enterprise


Significance of SAP

Customer Relationship Management (CRM)

Employee Relationship Management

Partner Relationship Management (PRM)

N-Tier Principle

Comprehensive World-Class Functionality

Lowest Total Cost of Ownership (TCO)

Customization and Upgrades

Highly Interactive Browser Interface

Internationalization and Localization

SAP Architecture

SAP Repository

Comprehensive Application Development Environment

Open Architecture

SAP Worldwide Services

Partnering for Growth

Other Significant Aspects of SAP

SAP Document

Recording by Example (RBE)


Drill-Down Reporting

SAP Strategic Initiatives

Accelerated SAP (ASAP) Implementation Methodology


SAP CRM Implementation Project Cycle

Mission and Objectives of the SAP CRM Project

Examples of Cited Reasons for Implementing SAP CRM

Guiding Principles for CRM’s Best Practices

Project Initiation and Planning

Critical Success Factors

Direct Involvement of Top Management

Clear Project Scope

Covering as Many Functions as Possible within the Scope of the SAP CRM Implementation

Standardizing Business Processes

Proper Visibility and Communication on the SAP CRM Project at All Stages

Allocation of Appropriate Budget and Resources

Full-Time Deputation of Key Managers from All Departments

Completing Infrastructural Activities on Time and with High Availability

Instituting a Company-Wide Change Management Plan

Training of SAP CRM Team Members

Training of User Members

Scheduling and Managing Interface of SAP CRM with Other Systems

Transition Plan for Cutover to SAP CRM

Implementation Strategy

Big-Bang Implementation of SAP CRM Components

Base Components Implemented First

Implementation of SAP CRM Standard Functionality

Pilot Site Deployment Followed by Rollouts at Other Sites

Utilize External Consultants to Primarily Train In-House Functional and Technical Consultants

Centralized or Decentralized SAP CRM Configuration

User-Driven Functionality

SAP CRM Implementation Project Bill of Resources (BOR)




Time Period


Implementation Environment

Implementation Methodology

Accelerated SAP (ASAP) Methodology

Project Management

Project Organization

Project Control

SAP CRM Implementation



SAP CRM Support

SAP CRM Deployment

Why Some SAP CRM Implementations May Sometimes Be Less than Successful


SAP CRM and Enterprise Business Process Re-engineering

Background of Business Process Re-engineering (BPR)

Value-Added View of Business Processes

Business Process Re-engineering (BPR)

Enterprise Agility

Enterprise Change Management with SAP

Enterprise BPR Methodology

Strategic Planning for Enterprise BPR

Selecting Business Processes for BPR

Creating Process Maps

Analyzing Processes for Breakthrough Improvements

Innovative Breakthrough Improvement in Processes

Implementing Reengineered Processes

Measuring the Performance of Reengineered Processes

BPR and SAP CRM Implementation

Reference CRM Processes

Changeability of SAP-Driven Enterprises

Changeability Embedded in SAP

Converting Changed Business Processes into SAP Functionality

SAP CRM and Change Management

Change Champions: Core Team

Change Facilitators: Super Users

Change Agents: End Users



SAP CRM Enterprise Applications

SAP CRM Marketing

Salient Features

Feature Details


Salient Features

Feature Details

SAP Service

Salient Features

Feature Details

SAP Interaction Center

Core Business Processes

Capabilities of SAP CRM Interaction Center

SAP CRM Partner Channel Management

Partner Management

Industry-Specific Solutions

SAP CRM Mobile Applications

SAP CRM Mobile Sales

SAP CRM Mobile Service


SAP E-Business Applications

What Is E-Business?

Basic E-Business Strategy Patterns

E-Business Challenges

E-Business Applications for a Customer-Centric World

SAP CRM Web Channel Enablement Solution

Salient Features

E-Business Applications


SAP CRM Application Environment

Distributed Applications

Distributed Application Requirements

N-Tier Application Architecture

Enterprise Architecture

Enterprise Application Integration (EAI)

Basic Concepts

Models of Integration

Service-Oriented Architecture (SOA)

Web Services

Enterprise Services

Enterprise Services Architecture (ESA)

SAP NetWeaver Overview

People Integration

Information Integration

Process Integration

Application Platform

SAP Solution Manager


SAP Tools and Programming

ABAP Custom Development

ABAP Genesis

ABAP Development Workbench

Programming in ABAP

ABAP Objects

Web Application Builder

Java Custom Development

SAP Java Development Infrastructure (JDI)

11.2.2 SAP NetWeaver Developer Studio (NWDS)

11.2.3 Java Application Development

11.3 Summary


Initiating the SAP Project

SAP Executive Sponsor

SAP Project Executive Committee

SAP Project Steering Committee

Roles of the Executive and Steering Committee Members

Mission and Objectives of the SAP Project

Deciding the Scope of the SAP Project

Initiating the SAP Project

SAP Project Management Structure

Chief Project Officer (CPO)

Site Project Managers

Module Leaders

Resource Manager

Training Manager

Project Management Policies and Guidelines

Project Strategy

Project Planning and Monitoring

Project Resource Requirements

Project Training Requirements

Risk Management in a SAP Project

Selecting the Most Critical Processes

Implementing Best-of-Business Processes

Centralized Base Reference Configuration

Accelerated SAP (ASAP) Methodology

Change Management in a SAP Project

Roles of the SAP Project Team Members

SAP Project Team

External Consultants Team

SAP Administration Team



SAP ASAP Methodology

Introducing the ASAP Methodology

Why Are SAP Implementation Programs So Complex?

SAP ASAP Methodology

Project Preparation

Business Blueprint


Final Preparation

Go Live and Support

SAP ASAP Methodology 7

Value Delivery Considerations

Business Process Management Considerations

Service-Oriented Architecture (SOA) Considerations

Success Patterns for SAP Implementation Projects



Supporting and Enhancing SAP CRM

SAP Deployment

Continuous Change

Customer Center of Expertise (CCOEs) Program

Help Desk

Upgrading SAP CRM Applications

Retaining and Retraining SAP Consultants

Retention Horizon

Extending the Boundaries of Expertise

Privacy and Security




Business Disruption

Application Outsourcing (AO)

CRM Application Service Providers (ASPs)

SAP Business ByDesign (BBD)

Private ASPs

Mobilizing the Enterprise and Relationships

Context-Aware Applications

Decision Patterns as Context

Big Data Analytics

What Is Big Data?

Big Data Appliances

Tools, Techniques, and Technologies of Big Data




Valuing the Relationship-Based Enterprise

Enterprise Stakeholders

From Built to Last to Built to Perform Organizations

Aspects of Enterprise Value

Value to Customers

Value to Shareholders

Value to Managers

Value to Employees

Value to Vendors

Economic Value Added (EVA)

Value-Based Management

Time Value of Customers and Shareholder Value

Balance Scorecard (BSC)

Financial Perspective

Customer’s Perspective

Internal Business Processes Perspective

Learning and Growth Perspective

Performance Prism

Performance Prism Framework

Customer-Centric Activity-Based Revenue Accounting (ABRA)

CRM Metrics

Enhancement of Measures of Performances by SAP CRM


Beyond the Relationship-Based Enterprise

Intelligent Customer-Centric Enterprise

How Intelligent Is Your Enterprise?

Decisions on Desktops (DoD)

Prospects for the Future: Relationships on Demand!


Appendix A: Selecting SAP CRM Implementation Partners

Appendix B: CRM Industry Analysts



About the Author

Vivek Kale has more than two decades of professional IT experience, during which he has handled and consulted on various aspects of enterprise-wide information modeling, enterprise architectures, business process redesign, and e-business architectures. He has been group CIO of Essar Group, the steel, oil, and gas major of India, as well as Raymond Ltd., the textile and apparel major of India. He is a seasoned practitioner in transforming the business of IT, facilitating business agility, and enabling the process-oriented enterprise.

He is the author of Implementing SAP R/3: The Guide for Business and Technology Managers (2000), A Guide to Implementing the Oracle Siebel CRM 8.x (2009), Guide to Cloud Computing for Business and Technology Managers: From Distributed Computing to Cloudware Applications (2014), and Inverting the Paradox of Excellence: How Companies Use Variations for Business Excellence and How Enterprise Variations Are Enabled by SAP (2014).

Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Customer Relations
COMPUTERS / Database Management / General
COMPUTERS / Information Technology