1. Prepare an outline of the benefits that DH might expect to obtain from this CRM project. Use categories to organize your list of benefits; for example, you might identify benefits that will accrue to DH's account managers, operations staff, IT staff, and professional staff. Because DH's clients will also benefit, you might be able to identify benefits that will accrue to DH's Marketing and Sales departments or to DH's New Product Development department. Be sure to include any long-term benefits that you think might occur after the CRM system has been in place for several years.
2. Estimate the dollar value of each benefit you identified in the first part of your answer.
3. Prepare a one-page memorandum to the DH board of directors in which you argue against using ROI as the primary method for evaluating this project. Keep in mind that these directors have little time to review your arguments and are very much inclined to use ROI for all project evaluations.
Davis Humanics (DH) is a company founded in 1982 that provides human resources services to about 7000 companies with a total of nearly 100,000 employees. These services include payroll processing, tax filing, health insurance and claims management, and retirement plan management. DH has annual sales of $2 billion and about 1000 employees. DH has grown rapidly and has clients of all sizes, ranging from smaller companies with fewer than 50 employees to Fortune 500 companies.
This question was answered on: Jul 11, 2017
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