International companies will tend to centralize IT-applications where possible and it appears that CRM-solutions are now being targeted.  This may seem reasonable but there are many arguments against centralization in this area. One recent example I found in a large pharmaceutical concern. A regional manager was looking for a CRM-solution for his agents in the Middle East, the agents being anything from a one-man company to a specialized sales organization with up to 15 employees. The manager was told by his IT, that the only CRM-solution allowed in the company was SAP. I need not comment on that. The manager was determined to find a solution and in fact did – the solution he found was not declared as a CRM-system.

The point is, that CRM-solutions are only effective when the local sales processes can be supported and a one-man company just does not have the same processes as the German operation with many thousands of employees and a gigantic sales force.

Adapting an enterprise application to suit local conditions has two major disadvantages:

  • the cost of customizing is extremely high, and
  • the massive customizing produces an application nothing like the original.

It is in fact often more effective and much less costly, to install suitable products in each country and to generate interfaces as required.

It is also absolutely essential to analyze and react to local requirements, even within Europe methods and processes change from country to country. Further, requirements vary according to the size of the sales operation. One memorable near-fail of a project occurred for example when a company in the automotive industry assumed that all vehicles could be identified for their lifetime by the registration number – the system designers were based in the UK.

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