CRM

CRM/KM Initiatives at 3M

Jayanti PaulParomita ChakrabartySharmila Chakraborty

History of 3M

• Minnesota Mining and Manufacturing Co. (3M) set up in 1902• Sales surpassed $1mn in 1917• 1920s marked with expansion of facilities & sales network• Central research laboratory established in 1930s • Listed on NYSE in 1946• 1950s heralded global expansion• Sales crossed $5 bn by the end of 1980s• Emerged as a $17 bn company by the end of 2000• Acquired popularity for its constant experimentation & innovation• Practiced the ’15% rule’s

CRM

CRM can be defined as a process or methodology that assists an enterprise in managing its customer relationship in an organized way. It involves the use of various

tools ,technologies and business procedures to attract and retain customers, prospects and business partners. This includes Contact Management, Sales Force Automation,

Opportunity Management, Relationship Management, Marketing Automation , Company Websites, Telesales and Telemarketing System.

OBJECTIVESStrengthening relationship with existing customers

Using customer information to provide better serviceCreating customer value and loyalty

Implementing integrated CRM solution strategy

KM

Knowledge Management is a process through which organizations generate value from their intellectual and knowledge based assets . The goal of KM is to improve

the organization ability to execute its core processes more efficiently.

OBJECTIVES

Create knowledge repositoryimprove knowledge assets

enhance the knowledge environmentmanage knowledge as an asset

CRM/KM

• Managing customer relationships in organized manner• Better handling of customers leading to maximization of profits• Managing customer relationships electronically – eCRM• Available across different modules• ERP-CRM bridging

Reasons for Deploying CRM/KMDissatisfied

Customers/R&

D Ham

pered

Launch

Launch of complex products

Agents not fully

equipped

Calls transferred

to R&D experts

Customers forced to

repeat their stories

Implementation of CRM/KM• Creation of 14-member task force customer service managers call center agents IT analysts documentation developers

• Evaluation of available software• Selection of Remedy Action Request System (RARS) for CRM• Selection of Primus eCRM for KM• Deployment of RARS & eCRM in internal IT customer service center before organization-wide deployment

Why RARS?

-- Easy implementation with leading KM solution products

-- No requirement of additional programming before implementation

Why Primus eCRM?

-- Compatibility with 3M’s existing hardware & software infrastructure

-- Supported flexible workflow

--Eliminated need for separate offline knowledge engineering process

-- Powerful search, retrieval & authoring capabilities

Working of the New SystemCustomer

callsAgent checks system to view

customer information

Agent feeds customer’s problem

details into the system

Software generates list of probable

solutions

Details stored in knowledge base

Expert synthesizes new solution

New solution incorporated into knowledge base

Agents provides customer with

solution

Agent clicks onscreen button

Impact of Implementing CRM/KM

-- Higher percentage of calls resolved-- Call-transfers to experts reduced significantly (by 55%)-- Productivity of agents increased (by 13%)-- Improvement in accuracy and consistency-- Training time & costs for new agents declined (by 35%)-- Problem resolution hastened-- Customer satisfaction increased-- Customer profiling and problem categorization & subsequent identification became easier-- Innovation in products & improvement of existing products-- Financially the company’s sales increased along with an increase in economic profit by about 200% along with a increase in ROI by about 6% and increase in stock prices. Also there was reduction in working capital needs, total debt to capital ratio and R&D and related expenses. -- Overall improvement of organization

3M’s status as of 2009 end• 3M is one of 30 companies in the Dow Jones Industrial Average and also is a component of the Standard &

Poor's 500 Index.• Sales Worldwide ………………………… $23.123 billion• Net income .................…………..….… $3.193 billion• Earnings per share –diluted .................. ............. $4.52 R&D and Related Expenditures : Total for last five years ……………...... $6.861 billion• Employees• Worldwide ……………………………………. 74,835• United States .……………………………..…... 31,513• International .………………………………….. 43,322• Leadership• • George W. Buckley Chairman, President and Chief Executive Officer

CONTD…..Organization has more than 35 business units, organized into six businesses:•Consumer and Office•Display and Graphics•Electro and Communications•Health Care•Industrial and Transportation•Safety, Security and Protection ServicesOperations in more than 65 countries – 35 international companies with manufacturing operations, 35 with laboratories. In the United States, operations in 28 states.Technology 45 technology platforms, including:•Adhesives, Abrasives, Light Management, Micro replication, Nonwoven Materials, Nanotechnology, Surface Modification6,700 researchers worldwide; 3,400 in the United States. U.S. Patents Awarded ………………… 518U.S. Community GivingIn 2009, 3M and the 3M Foundation donated nearly $50 million in cash and products to U.S. educational and charitable institutions.

CONCLUSION

On the success of CRM/KM solution,3M also decided to implement:

1)Self service Intranet within an enterprise2)Self service Extranet to securely share part of a business information3)Increase the usage of the system by making it accessible to the company’s distributor and reseller network.4)Continuous updation of the knowledge base.