University of Fribourg, Switzerland Department of Informatics Information Systems Research Group CITIZEN RELATIONSHIP MANAGEMENT (CZRM) Evolution, drawbacks and how to resolve them. Seminar Authors: Chatton Marc Oueslati Moez Rte des Acacias 9 Avenue du Moléson 21 1700 Fribourg 1700 Fribourg Supervisors: Prof. Dr. Andreas Meier Luis Terán Fribourg, October 2011 Table of contents 1 Table of contents 1 ABSTRACT ............................................................................................................... 1 2 INTRODUCTION ....................................................................................................... 2 3 2.1 E-Government ................................................................................................ 2 2.2 E-Government: From Government to Citizens G2C ..................................... 3 CUSTOMER RELATIONSHIP MANAGEMENT AND CITIZEN RELATIONSHIP MANAGEMENT ........................................................................................................ 4 3.1 CRM Framework Customer Relationship Management (CRM) ................... 4 3.1.1 Collaborative CRM .............................................................................. 7 3.1.2 Operational CRM: ................................................................................ 7 3.1.3 Analytical CRM .................................................................................. 10 3.2 Citizen Relationship Management (CzRM)................................................. 11 3.2.1 CzRM Framework: ............................................................................. 12 3.2.2 CzRM Technology Framework ........................................................... 14 3.2.3 CzRM entities and functionalities ....................................................... 14 3.2.4 Benefits of CzRM ................................................................................ 18 3.3 Differences between CRM and CzRM ........................................................ 18 4 SOPHISTICATION OF THE CZRM PLATFORM ....................................................... 22 5 EVOLUTION OF CZRM ......................................................................................... 26 5.1 CzRM platform: Services and products ....................................................... 26 5.2 Example of 311 system in New York City (case study) .............................. 26 5.2.1 Implementing CzRM ........................................................................... 27 5.2.2 Services and products of 311 CzRM ................................................... 29 5.2.3 Impact of CzRM .................................................................................. 32 Table of contents 6 7 2 DRAWBACKS OF CZRM. ....................................................................................... 34 6.1 Cost .............................................................................................................. 34 6.2 Hyper-surveillance ....................................................................................... 34 6.3 Others Drawbacks ........................................................................................ 35 CRITICAL SUCCESS FACTORS ............................................................................... 36 7.1 Information Technology .............................................................................. 36 7.2 Organization ................................................................................................. 37 7.3 Political support ........................................................................................... 37 7.4 Top Management support ............................................................................ 37 7.5 Change Management ................................................................................... 38 7.6 Stakeholders culture ..................................................................................... 39 8 CONCLUSION ......................................................................................................... 40 9 REFERENCES ......................................................................................................... 41 Table of contents 3 Graphs FIGURE 3-1 CRM STEPS [M STAR INC 2011]................................................................................................ 5 FIGURE 3-2 CRM FUNCTIONALITIES AND INTERACTION WITH DIFFERENT COMPONENTS [M STAR INC 2011] ............................................................................................................................................................ 6 FIGURE 3-3 CLASSIFICATION OF CRM FUNCTIONALITY [TORGGLER 2009] .................................................. 7 FIGURE 3-4 CUSTOMER TOUCH POINTS [EZENDU 2010, P. 5] ....................................................................... 8 FIGURE 3-5 ENTREPRISE MARKETING AUTOMATION [TORGLER 2009, P. 166] ............................................. 8 FIGURE 3-6 SALES AUTOMATION [TORGLER 2009, P. 166-167] ................................................................... 9 FIGURE 3-7 SERVICE AUTOMATION [TORGLER 2009, P. 166-167] .............................................................. 10 FIGURE 3-8 ANALYTICAL CRM, FIELDS OF APPLICATION [TORGLER 2009, P. 166-167] ............................. 10 FIGURE 3-9 TOWARDS A CZRM RESEARCH FRAMEWORK [SCHELLONG 2005, P. 4] ................................... 12 FIGURE 3-10 CZRM FRAMEWORK [SCHELLONG 2007, P. 176] ................................................................... 12 FIGURE 3-11 CZRM TECHNOLOGY FRAMEWORK [SCHELLONG 2007, P. 177] ............................................ 14 FIGURE 3-12: CZRM SYSTEM [KANNABIRAN, XAVIER, ANANTHARAAJ 2004] .......................................... 16 FIGURE 3-14 COMMERCIAL AND GOVERNMENTAL DRIVERS FOR USING CRM [SAREMI 2009, P. 23] .......... 20 FIGURE 4-1 RELATIONSHIP BETWEEN QUALITY AND COST [COLEMAN 2005, P.21].................................... 23 FIGURE 4-2 SOPHISTICATION OF CZRM [SAREMI 2009] ............................................................................. 24 FIGURE 5-1 PRINT SCREEN OF THE SOFTWARE USED FOR 311 [SCHELLONG 2008] ...................................... 28 FIGURE 5-2 311 SYSTEM GOALS, OBJECTIVES, DELIVERABLES, % COMPLETE. [CITY OF MINNEAPOLIS 2006] ................................................................................................................................................ 31 FIGURE 7-1 STATE OF IT PROJECT MANAGEMENT IN THE UNITED KINGDOM [OXFORD UNIVERSITY, COMPUTERWEEKLY.COM, 2008] ...................................................................................................... 38 Abstract 1 1 Abstract The Customer Relationship Management has been the subject of many scientific and social researches, it has been applied and implemented in a number of private companies for years, and this has enabled them to increase their customer loyalty and to have improved efficiency and customize their services to clients. On the other hand, this service has governments. The only recently attracted emergence attention of e-government and the as a concept for general the tendency to transfer business concepts to the field of government will give birth to the concept of Citizen Relationship Management. Therefore it‘s necessary to present both concepts, enumerate the similarities and the differences and focus on the evolution of the CzRM. On the other side, and as mentioned above, the CzRM knows a lot of problems for its evolution. Different categories of problems are being faced by the governments. This kind of public platform must necessarily be accessible to all people for a high efficiency rate. So economic and social problems related to the accessibility of the online services for the whole territory and for each citizen (family) may occurs. Each citizen is supposed to own and know how to use an electronic means to have access to this platform. Implementation problems due to the heterogeneity of the products proposed (letters and forms, administered, election, civil status, military census). The following questions will be answered in our analysis: Which Importance of the CRM for the evolution of the CzRM? What are the differences between CRM and CzRM? What are the different problems encountered by the government for the development of the CzRM? What is the CzRM Critical Success Factor to avoid possible drawbacks? Introduction 2 2 Introduction 2.1 E-Government To present the Electronic Government, we will take these below definitions: E-Government' (or Digital Government) is defined as ‗The employment of the Internet and the world-wide-web for delivering government information and services to the citizens. [United Nations 2010] Electronic Government' essentially refers to ‗The utilization of IT, ICTs, and other web-based telecommunication technologies to improve and/or enhance on the efficiency and effectiveness of service delivery in the public sector. [Hai 2007] The Gartner report, 2000 defines e-Government as, "The continuous optimization of service delivery, constituency participation, and governance by transforming internal and external relationships through technology, the internet, and new media." There are different supports for the e-government. We can first easily think to the Internet (web services on a computer or mobile phone). But an electronic administration project can also rely on any form of telematics as the Near Field Communication, Bluetooth or RFID and the smartcard projects, possibly combined with biometrics and / or to RFID technology (electronic ID card, biometric passport, etc.) as well as procedures for electronic voting, or video surveillance which may converge with computers, the establishment of databases and biometrics facial recognition. SO, E-GOVERNMENT IS A DIGITAL INTERACTION BETWEEN THE GOVERNMENT AND OTHER ENTITIES LIKE : - CITIZENS - BUSINESSES - EMPLOYEES ACCORDING FOLLOWING: TO THIS , DIFFERENT MODELS AND [Hai 2007] CAN BE SUMMARIZED AS Introduction 3 From Government to Citizens : G2C From Government to Businesses : G2B From Government to Employees : G2E From Government to Government : G2G From Citizens to Governments: C2G On our analysis we will focus on the Government to Citizens model (G2C). 2.2 E-Government: From Government to Citizens G2C In this model, the G2C model applies the strategy of Customer Relationship Management (CRM) but in the public sector, named Citizen Relationship Management (CzRM). By managing their citizen relationship, the government can provide the needed products and services fulfil the needs from citizen. So, G2C model covers all the services proposed by the Government to the Citizens in order to offer to them a better quality of Service and for reducing administration cost. To achieve such goals, the government uses the concept of a very well known service on the private sector Customer Relationship Management called in the public sector: Citizen Relationship Management. On the next section, we present both concepts and the differences between them. Customer Relationship Management and Citizen Relationship Management 3 4 Customer Relationship Management and Citizen Relationship Management CRM Framework Customer Relationship Management (CRM) 3.1 History Managing the customer relationships is a very old practice: They used to check the ability of the ancient artisans and traders to design, manufacture and deliver customized and appropriate products for their clients. These artisans and traders remarkably know their customers and have developed their business without having ever theorized about the CRM. So, they established the practice of customer relationship management by creating and managing Customized products for loyal clients and based on a long-term relationship. However, the concept of customer relationship meets a clear revival since the late twentieth century and particularly since the early 2000s. The CRM "builds on the principles of relationship marketing. Unlike transaction marketing which focused on the selling process." [Wikipedia 2011] Definition Customer Relationship Management can be defined as a holistic management approach, enabled by technology with a broad customer focus, to s tart, maintain and optimize relationships and to make customers more loyal /profitable. CRM requires a customer centric business philosophy and culture to support effective marketing, sales and service processes. The main goal is to optimize the customer value within the customer lifecycle. [Schellong 2005] So, the CRM can be defined as a set of tools and techniques designed for businesses to capture, process and analyze information related to the customers and prospects, in order to retain them by offering the best service. Mainly with the expansion of the new network technologies in different domain, new opportunities were created for the CRM features. So, it allow companies a better understanding of their customers and earning their loyalty by using their information in such a way to better understand their needs and therefore better respond. Customer Relationship Management and Citizen Relationship Management 5 CRM Components: To implement a CRM solution in an enterprise is not just to install ad-hoc software, but to change the organization of the whole enterprise. Figure 3-1 CRM Steps [M Star Inc 2011] Indeed the introduction of a CRM strategy requires a deep revision of its culture, attitude, structural changes, skills (training) and behaviors; a redesign of the business process of the company: marketing, IT, Customer Service, Logistics, Finance, Production, Research & Development and Human Resources Management; and the establishment IT infrastructure for a better controlled processes and investment in human resources. The CRM aim to provide technological solutions to enhance communication between the company and its customers to improve the relationship with them by automating its various components: From a pre-sales point of view: it is marketing. The analysis of information collected on the client allows the company to review its product specifically to meet their expectations. From Sales point of view: it‘s the prospecting efforts like management of initial contacts, appointments, and raises. Customer Relationship Management and Citizen Relationship Management 6 Management of customer service: the aim is to let the customer feels recognized by the company and does not have to summarize his expectation and history for each contact in the company. The after-sales service, consist in providing assistance to the customer through the establishment of different means of communication. Therefore, a CRM aspire to allow each business sector to access the information system to be able to improve the knowledge of the customer and to provide products or services that best meet their expectations. Figure 3-2 CRM Functionalities and interaction with different components [M Star Inc 2011] Based on the components of a CRM system, a wide range of functions can be identified as following: Operational CRM Collaborative CRM Analytical CRM Customer Relationship Management and Citizen Relationship Management Analytical CRM Compaign Execution Coampaign Controlling Marketing Analysis Order Management Sales Force Support Product Configuration Sales Analysis Customer Interaction Center Service Automation Campaign Development eCRM / Internet Sales Automation Operational CRM Contact Management Marketing Automation Collaborative CRM 7 Helpdesk Complaint Management Service Requests Service Analysis Figure 3-3 Classification of CRM functionality [Torggler 2009] 3.1.1 Collaborative CRM The Collaborative customer relationship management focuses on exploiting interaction with customers through customer touch-points for enhancing customer self-service. It covers the control and integration of all communication channels between the company and its customers. [Ezendu 2010, p. 15] Due to the use of different communication channels, it is possible to optimize the exchange of information between the customer and the enterprise: ―eCRM and Internet: Online services for enhancement of convenience and cost reduction (e.g. online availability checks, user tracking, real time customer identification, virtual shop assistants). Customer Interaction Center: Effective communication through many channels including automated phone, email and internet. Contact management: profiling customer information during customer interaction. In most cases all customer data are recorded and stored in a central database in order to provide these data for all customer-oriented processes in the company.‖ [Torggler 2009, p. 166] 3.1.2 Operational CRM: Operational customer relationship management facilitates communication with customers and connects to customer touch points. [Ezendu 2010, p. 4] It offers tools which support day-to-day business in the areas of marketing, sales and service (e.g. Customer Relationship Management and Citizen Relationship Management 8 campaign management, sales force support or complaint management) by automating all processes associated with customer relations. [Torggler 2009, p. 166] Blog Wiki Email Snail Mail Phone Web Personal Physical Customer Touch Points Media Fax Figure 3-4 Customer Touch Points [Ezendu 2010, p. 5] We can distinguish three different general areas of Operational CRM: 1. Enterprise Marketing Automation: This involves application of technology to marketing processes for provision. This facilitates appropriate campaign planning, campaign engagement and campaign control in order to ensure a continuous interaction with the customers. [Ezendu 2010, p. 10] Campaign Planning: provide support both in the planning of marketing activities (e.g. objectives of a campaign, dates and milestones, process definitions, channel selections). automatic Campaign Execution: systems offer Campaign Controlling: Campaign applications provide controlling deals mainly with the appropriate content for the selected monitoring and analysis of on-going communication In or already completed campaigns. addition, the system can be used to The results of the analyses can be automate used which the channels. execution management of campaigns. and in the planning of later campaigns. Figure 3-5 Entreprise Marketing Automation [Torgler 2009, p. 166] 2. Sales Automation: This involves the whole sales process. It includes the support of all sales activities associated with individual customer contact. Customer Relationship Management and Citizen Relationship Management 9 [Ezendu 2010, p. 7] It involves the order management Sales Force Support and Product Configuration. Order Management: A central Sales Force Support: Sales force Product Configuration: The main sales function of a CRM system is support purpose of order and supply provides streamlining management, opportunities for companies as order which covers the planning and entry and the planning of sales implementation of all sales activities. activities can be done online and the The functionality palette includes data is directly available for the sales and services to the wishes and assistance in the processing of department. The sales force is also needs of a customer in customer requests (e.g. lead and supported by a function which opportunity management), the sales matches appointments and activities process (e.g. contract terms, pricing) in real time thus the available time as well as the tracking of orders. for each customer visit can be both for the individual design of optimally exploited. the products and for configurators is the individual matching of products the context of a sales call. Configurators can be used the presentation of product combination possibilities or product alternatives. Figure 3-6 Sales Automation [Torgler 2009, p. 166-167] 1. Service Automation: supports the service department of a company, which is a key success factor for the maintenance of long-term customer relationships. This involves automation and coordination of all the service operations and customer support processes which include service requests, product returns, customer complaints, and enquiries. These services and support can be provided through contact center, call center, web portal, or face-to-face interaction at a remote location in the field. [Torgler 2009, p. 166-167], [Ezendu 2010, p. 9] Helpdesk: The helpdesk is often the Complaint first point of contact for customers in Complaint an component of the service process, service incoming important medium which generates the role of a CRM system involves automatically feedback from customers and can be all service activities in the context of assigned to the appropriate staff (e.g. used a service center. The primary on the basis of expertise). To find an satisfaction through a positive image appropriate solution of the enterprise. customer‘s problem, requests. requests can The be for the various functions are available such as automatic problem identification, case based reasoning or databases CRM to Management: management increase systems complaint systematic the is customer Service Requests: With this objective is to offer a quick and straightforward can process assist the through the collection solution to the customer‘s problem. The information and categorization of complaints and the system can support the Customer Relationship Management and Citizen Relationship Management with previous cases and solutions. automatic management of customer requests. 10 administration of service data including historical requests and service contracts as well as the administration of the service staff. Figure 3-7 Service Automation [Torgler 2009, p. 166-167] 3.1.3 Analytical CRM The analytical CRM consists of all actions, tools, methods and applications for analyzing the data of the customer relationship. It‘s used to discover customer behavior patterns, identify targets, potential additional sales, the value of customer life, etc. The methods used in the analytical CRM are, among others, modeling, data mining, scoring… [Torgler 2009, p. 167] Referring to the areas in the operational business three fields of application can be distinguished: Marketing Analysis: The analytical Sales Analysis: Analyses of and Service Analysis: The analyses of components in marketing deal primarily reports on sales activities provide service with the evaluation of current campaigns. indicators for the optimization of sales evaluation of the different services and To review campaign success, various processes (e.g. sales-pipeline analyses, products (e.g. service cycle analyses, dimensions can be taken into consideration shopping-card analyses, sales cycle damage analyses, quality analyses) as (e.g. cross/upselling analyses, click-stream analyses) indicators well as controlling functions whose role analyses). In addition, functions which concerning lost orders and future sales is to monitor the processes and staff measure customer satisfaction (e.g. churn potentials. Thus, these data represent a (e.g. analyses, key element in the planning of future shortages) sales activities. forecasting and warning systems to share-of-wallet analyses, customer retention rate) are often included in software packages. as well as processes human in includes resources, combination avoid possible bottle necks. Figure 3-8 Analytical CRM, fields of application [Torgler 2009, p. 166-167] So the ―basic principles of CRM are personalization (products, information, services), integration (planning processes, business process reengineering, product development), the product with Customer Relationship Management and Citizen Relationship Management 11 interaction (channels, long term communication, surveys), and selection (identify the top 20% of customers who make 80% of the profit).‖ ―While identifying and retaining the most profitable customers in a commercial sens cannot be the objective of public sector CRM, delivering high quality citizen oriented public services is on the agenda of the government‖. [Schellong 2007, p. 175] 3.2 Citizen Relationship Management (CzRM) The term Citizen Relationship Management is derived from Customer Relationship Management. So it refers to a cluster of management practices, channel and IT solutions that seek to use private sector CRM in the public sector. [Schellong 2007, p. 174] When people see efficient systems in the business world, they tend to expect the same from the government departments also. Governments around the world have to recognize the need to provide better, more efficient public services in a more timely and cost-effective way. They recognize the need to improve their relationship with the citizens, and to put the citizens' needs at the center of all government thinking, providing one-to-one services for citizens; services that cut across departmental hierarchies and which the citizen can access 24 hours a day, seven days a week through a single point of contact. [Kannabiran, Xavier, Anantharaaj 2004] Being able to provide a single contact in response to all requests of citizens requires the installation and integration of different new applications and systems. With the implementation of a system of CIRM, the public offices have the ability to store and access centrally to the huge amount of data available to the government on the citizens of complete information to obtain a complete profile of the citizens. This should allow a better understanding of citizens and their needs. So, the main goal of CiRM is to create and optimize the relationship with citizens. Citizens are a valuable asset in service planning and provision. A responsive, accessible and citizen focused public administration that creates opportunities for participation can build a close citizen relationship strengthening democracy and legitimating its role. [Schellong 2007, p. 176] Customer Relationship Management and Citizen Relationship Management 3.2.1 12 CzRM Framework: According to the previous definition of CzRM, the following steps will help the analysis and the implementation of this citizen concept: Figure 3-9 Towards a CzRM research framework [Schellong 2005, p. 4] Figure 3-10 CzRM Framework [Schellong 2007, p. 176] ―According to the figures above and Schellong analysis, the CiRM is about: Organization (change) Customer Relationship Management and Citizen Relationship Management Culture Processes Structure Responsibilities Networked governance Cross-boundary collaboration Interactions Channels Participation Service range Offering Insights Analysis Segmentation Personalization Performance measurement‖ [Schellong 2007, p. 176] 13 Customer Relationship Management and Citizen Relationship Management 3.2.2 14 CzRM Technology Framework Figure 3-11 CzRM Technology Framework [Schellong 2007, p. 177] The above CzRM technology framework enables public managers to respond in an accurate and appropriate manner to citizen inquiries. The public servants have access to citizen profiles and knowledge base while they are in contact with them. Currently most relevant channels are counter-one-stop service centers, inbound telephone, web selfservice, automated email response. [Schellong 2007, p. 177] Administrators can build new and real-time databases for future orientation. By corssreferencing citizen surveys with service usage can offer more personalized information, services and identify emerging problems, process or policy improvements. [Schellong 2007, p. 177] 3.2.3 CzRM entities and functionalities A of CIRM, in system the most advanced phase / sophisticated to be able to deliver services to citizens in a proactive and participatory. The model proposed by CIRM Kannbiran et al. distinguishes four fundamental entities incorporate a concept of CIRM: [Kannabiran, Xavier, Anantharaaj 2004] that must Customer Relationship Management and Citizen Relationship Management 15 Government Service providers Banks and payment systems Technology providers The entity "government" includes different levels of government, legal system in force, the objectives and roles of government. This entity's mission is to maintain an updated database of information about citizens, including the list of classes of citizens for which the administrative services are addressed. These data will be used by ―service providers‖; this includes both government and private providers of variety of services such as transport, health, education, grants and benefits. These service providers have to interact for accessing information relating to different classes of citizens. ―Banks and payment systems‖ are also an important element of the system when it is necessary to transfer money between service providers and citizens. Finally, ―technology providers‖ are responsible for routing service delivery and information through the system. [Kannabiran, Xavier, Anantharaaj 2004] CzRM includes four main functionalities, namely Identify, Design, Serve and Protect, which are very similar to CRM functionalities namely Marketing, Sales, Delivery and Service. As shown on the figure below we can distinguish these 4 functionalities: Customer Relationship Management and Citizen Relationship Management Government 16 Services Provider Relation Management Design Identify Citizen Banks and Serve Protect System Technology Provider payment systems Figure 3-12: CzRM System [Kannabiran, Xavier, Anantharaaj 2004] The importance of these four functionalities under CzRM is described in the following sections: Identify The first function, "identify", aims to recognize the citizen with a single login procedure should then be possible to provide all the services desired in a personalized way. This is similar to establishing product-market relationship in businesses. This requires a centralized data previously stored locally by each department which resulted in waste of time for both parties and unnecessary duplication of information. So the database should be established in order to obtain an image as complete as possible with all the attributes of a citizen, such as date of birth, full name, his employer, its license plate, blood type, his travels etc. It would be easier to target specific groups of citizens in for some social policies, including customizing the information and the services offered to citizens. Customer Relationship Management and Citizen Relationship Management 17 However, the system must be able to manage access rights to information to ensure data protection. [Kannabiran, Xavier, Anantharaaj 2004] Design It is also a feature attached to a system CIRM. The agencies are responsible for designing of mechanisms to ensure that only appropriate classes of citizens get serviced. This entity essentially includes data about the services/schemes and configures services for distinct classes of citizens. It includes the creation and formatting of content according to the citizens to whom the service, but also control that only citizens which is intended service can access. [Kannabiran, Xavier, Anantharaaj 2004] Serve The third function for the system is CzRM "serve". The Service deliverers use a combination of online and off-line technologies to create easy and versatile interface with citizens. This function includes different means of communication available to the citizen to obtain information or services: telephone, e-mail, Interactive Voice Response and The World Wide Web. The "self service" is an important element that can be added to this feature which allows citizens to register in order to subsequently set its services and receive help and support at any time. Such a system not only reduce costs but also improve the quality of service offered to citizens. . These technologies and tools together are called Citizen Interface Centers (CIC). [Kannabiran, Xavier, Anantharaaj 2004] Protect The fourth function for the protection of citizens against risk that one of the benefits is not or poorly delivered. It is important that the citizens can easily get help and support in a quick and competent way that, especially when we are dealing with areas that are very sensitive and important for the citizens such as health or safety. Thus, a call center with a unique number to obtain information about all administrative services and make complaints, comments and feedback is a solution that can be deployed. [Kannabiran, Xavier, Anantharaaj 2004] Customer Relationship Management and Citizen Relationship Management 3.2.4 18 Benefits of CzRM The benefits of bringing CRM approaches to public services are obvious. These are some instances of these benefits: ―The data are captured only once and can be reused each time we need them. The preferences of the citizens can be identified throught the analysis of their past action. Services can personalized based on geography, life stage, or specific eligibility requirements Applications, filings, payments, or other interactions can be simplified by enabling them online. Automatic notification can be made of license expirations, renewal due dates or other time sensitive Interactions can be transacted on-line. Data can be shared across government agencies and levels in order to facilitate dealings with the citizens. Quick detection and prevention of identity theft and other fraud attempts can be enabled. It‘s easier and quicker to detect such kind of fraud.‖ [Saremi 2009] On the next sub-section we will present the main differences between the Customer Relationship Management and the Citizen Relationship Management. 3.3 Differences between CRM and CzRM As we have noted in previous sections, the concept of Citizen Relationship Management is taken from the concept of Customer Relationship Management and even though the two concepts seem very close to each other, in this section we will highlight the differences between them. The first difference between both concepts is that CRM is belonging to Private sector and CzRM to the public sector. According to this, we can distinguish the following differences summarized on the following table: Customer Relationship Management and Citizen Relationship Management Private Sector Competition (Some) Monopoly Market orientation Jurisdiction Million relationships Millions / Billion relationships 19 Public Sector Homogeneous product range / controllable Huge number of heterogeneous products quantity (services) / uncontrollable due to political decision making Personalization ―One size fit all‖ approach Segmentation (Pareto rule 28-80) Segmentation possible / no termination of unprofitable customers Budget / sunk costs Budget / sunk costs Legacy Systems (IT) Legacy Systems (IT) Poor service image Organization culture Organization culture Human resource (lack of knowledge, salaries not competing with private sector) Laws Laws Accountability / Federalism Political Influence (planning cycle) Profit orientation / maximizing the Democratic understanding / philosophy shareholder value Figure 3-13 Major differences between CRM in the private and the public sector [Kannabiran, Xavier, Anantharaaj 2004] For example, the CRM is based on market conditions competitive while the government acts as a monopolist and governments are not involved in the acquisition of their customers, who have no other choice but to turn to the Office issuing the public service they need. Also, governments must follow the democratic philosophy, all the "clients" Customer Relationship Management and Citizen Relationship Management 20 of the State should be served, and not identifying and retaining only the most profitable clients or citizens Both entities are facing same pressure to deliver a good quality of services while the driving forces are different. So we need to identify the driving force for using the CRM: Commercial Drivers to Using CRM Government Drivers to using CRM Increase top line by increasing revenue Meet performance and service goals at the and sales lowest cost to taxpayers Increase bottom line by reducing the cost Budgetary pressures – improve quality of of sales and service service within a shrinking budget Improve customer satisfaction to increase Improve citizen satisfaction at the lowest customer retention Cost Increase customer insight to maximize Improve operating efficiency by focusing revenue potential from top customers the government‘s resources on the citizens that need the services the most Figure 3-14 Commercial and governmental drivers for using CRM [Saremi 2009, p. 23] We can also note some other differences: CRM systems rely heavily on databases and establishing connections to legacy systems. To be efficient, information systems should be able to talk horizontally and vertically on all state levels. [Saremi 2009, p. 22] ―Because the government is a monopoly provider of the services, the citizens are ofter legally forced to use services such as registering a change address‖ [Saremi 2009, p. 22]. While on the private sector, we are in a competitive market where the company is making a huge effort for prospecting and encouraging customers to buy her products or use its services. The aim of the private sector is maximization of profit and cannot be the object of public sector. [Saremi 2009, p. 22] The public sector does not have profit as it must do its utmost to ensure that citizens have access to the services offered by the administration to facilitate their interaction with the various public bodies. Customer Relationship Management and Citizen Relationship Management 21 Different public administrations are not commercial competitors. They should therefore have no compunction about sharing experiences and software and interchanging data. [Saremi 2009, p. 22] Indeed, the various organs of public administration should not act as competitors but must interact and the data collected must be accessible in all public offices to facilitate service to citizens wherever they are. In the case of the private sector, the various offices are acting as competitors in the marketplace and their data are not exchanged because each company does its best to retain and get profitable customers. The organization approach should toward to be citizen-oriented. [Saremi 2009, p. 22] Differential marketing, offering a different grade of services to different is undemocratic, or violate regulations regarding transparency and fair treatment of citizens. [Saremi 2009, p. 22] Every citizen should get the same service from the government, which is not the same thing as the businesses. The public service missions defined in political terms and not entrepreneurial; [Saremi 2009, p. 23] Which is not like the private sector where the missions and decisions are taken by the shareholders or the direction of the company. Prosecution of general interest to the public service against the special interests to the private sector. The responsibility of a public service to the government or citizens is different from the liability of corporate executive facing shareholders who expect profits. As we have seen, even if the Citizen Relationship Management seems to have the same concept as the CRM, a lot of differences were identified between them according to their different sector, domains and notion of clients. Sophistication of the CzRM platform 4 22 Sophistication of the CzRM platform Governments nowadays are moving increasingly to the proposed services via new technologies. The basic model established in the previous sections will allow us to analyze better the evolution of CzRM and talk about citizen engagement. Engaging citizens in CzRM process is a sound investment in the design and delivery of better public service and a core element of good governance. To achieve best value for the public corporation of the Government, policy makers must understand the importance of involving citizens in the design and implementation of service delivery. [Zamanian, Khaji, Emamian 2011, p. 8912] The Organisation for Economic Co-operation and Development (OECD) (2003) has developed a three stage maturity model for government engagement with citizens: Stage 1: Information stage; a simple one-way relationship in which government delivers information to citizens. Stage 2: Consultation stage; a two-way relationship in which citizens provide feedback on issues defined by government. Stage 3: Active participation stage; a collaboration in which citizens actively shape policy options, but where government retains the responsibility for final decisions. [Zamanian, Khaji, Emamian 2011, p. 8912] Stage 1 Government Citizen Stage 2 Government Citizen Government Citizen Stage 3 According to the previous analysis, we remark that most government website start off by providing basic information for the citizens only. This automation is used for cost minimization, effective governance, and efficient administration. This is related to the first stage, defined as a simple one-way relationship and its goal is to provide Sophistication of the CzRM platform 23 information for their citizens. There is no interaction between the citizen and the agency. The increase in demand for quality services as well as the advance in technology will force governments to be more citizen-centric. In the citizen-centric stage, the government will try to provide various services to their citizens by using multiples channels with their different department and should develop their network capacities. So, at this level, agencies will enable to people an easy access and consolidate the various offers. [Esichaikul, Komolrit 2005, p. 323] The multi-channel service within CzRM provides a higher quality of service at a lower cost. Figure 4-1 Relationship between Quality and Cost [Coleman 2005, p.21] As we can remark, this figure show that a providing a higher quality of service in CzRM tend with a lower service at a lower cost. This argument is that personal assistance types of service like face-to-face contact or telephone are expensive, whereas self-service on a website is less expansive. The next level involves sophisticated data-mining tools to analyze and proactively anticipate the needs of citizens, customized to their individual needs. Also citizens will participate in the setting of public policies and regulations. This phase transaction is a proactive approach with citizens in which new opportunities are developed to increase the democratic participation of citizens. In addition, governments and politicians can Sophistication of the CzRM platform 24 better assess the consequences of their decisions on people and react accordingly. [Esichaikul, Komolrit 2005, p. 323] Figure 4-2 Sophistication of CzRM [Saremi 2009] Facilitate communication and make information available independently of space and time where we are. To achieve this point the technology can play an important role as a catalyst to bring forth a more democratic world. For this the following conditions are absolutely necessary for a meaningful and quality e-consultation: ― • Quality in e- participation can also be attained by involving named individuals and allowing sufficient time period for participation, surveys, and responses to take place. So number does not necessarily mean that a great number of persons involved in the act. • Each citizen should have an access to the technology and provide equality for participation for all of them. Providing technologies is important but also taking down the barriers of language and abilities is very necessary for the future use of CzRM. It‘s also important to integrate different systems and technologies to enable the participation through letters fax or phones or other means of communication. People should be able to access background information, view the comments of others, and decide on their own. Sophistication of the CzRM platform 25 •The database needs to be sophisticated in order to organize, reference and analyses the large volume of data in responding to participants. The interactivity should pertain to participating getting feedback within 1-2 weeks. Moreover, participants should be allowed to set agendas, make responses, and defend their stance, sentences and their ideas. • Quality will also be determined by the perceived effect. Any form of participation must be clearly defined with specific purposes. People can track government thinking and decision-making through a consultation process, which will bring about real transparency and accountability. The process needs to be evaluated in terms of who participated, why they participated, how they felt, the effectiveness of their participation, and the outcome, to keep a record and to make improvements.‖ [Esichaikul, Komolrit 2005, p. 324] After describing the different maturity stage of the CzRM and presented the different level of sophistication and involvement of the citizens in the public sector, on the next section a description of the evolution will be presented with a case study as a base. Evolution of CzRM 5 26 Evolution of CzRM The CzRM concept has not been studied in details by experts or even been applied to achieve its full potential. It is quite an emerging concept in public administration. [Schellong 2008, p.68] However, the best way to set up an efficient CzRM system varies from country to country and it also depends on the will or the possibility of citizens to use electronic means to communicate with their government. The objectives also vary greatly: as we will see with the example of New York City 311, never a government has gone so far in the use of CzRM. 5.1 CzRM platform: Services and products CzRM services are all about citizens‘ preferences and expectations of public services and administration since the only goal for CzRM is the increase of the citizens' satisfaction. But it is quite impossible to enumerate services due to the lack of a common conceptualization of CzRM. It implies that almost all the services and products provided by the government could be included into this chapter, as long as they are integrated into a largest concept. The chapter 5.2.2 gives some examples of what an accomplished CzRM project can provide to the citizens. 5.2 Example of 311 system in New York City (case study) Given the size and complexity, the City of New York (NYC) is currently "the biggest CzRM attempt in the world on the municipal level" (the city‘s population is 8.2 million, with an additional 19 million in the surrounding metropolitan area). In addition, "New York’s public administration carries out tasks that are usually the domain of higher jurisdictions". [Schellong 2008, p.68] The 311 CzRM initiative is a study object of choice, according to the number of citizens to serve and the complexity of NYC public administration. Evolution of CzRM 5.2.1 27 Implementing CzRM All began with the administration of Mayor Rudolph Giuliani in the late 90s: eager to see the 911 call volume reduced, he proposed a dedicated number for non-emergency. At that time, it appeared that the effects on the 911 would only be symbolic (5% decrease), thus the New York Police Department (NYPD), which had jurisdiction over these calls, put its veto. It's only in 2002, when Michael Bloomberg became mayor, that the project was launched. He stated : "“Open Government” is not just a slogan; it’s the only effective way to deal with complicated problems. As part of “Open Government,” we will create a Citizen Service Center that will allow New Yorkers to reach all services by calling one phone number, 311. This will make city government accessible to every resident of this great city. Right now, New York City operates more than 40 separate call centers and hotlines, which can be an obstacle course for the average citizen. There are 11 pages of listings in the phone book under NYC. No one can be knowledgeable enough to find his or her needle in a haystack that big! It will take time, but eventually New Yorkers will have only two numbers to reach government: 911 for emergencies and 311 for everything else." [Schellong 2008, p. 93] The aim of the team project and the mayor's intentions were that the 311 should offer directory assistance, information provision and service request intake. It was supposed to allow citizens to report problems (e.g. dead animals or holes on the street). The 311 system was supposed to "route the information to the appropriate agency, and the caller is provided with a tracking number to follow up on the status." [Schellong 2008, p. 95] They planned a total budget of $25 million for that project. One of the first prerequisite was that they had to make sure that the hardware and software were compatible with the legacy systems released around the city. Siebel was chosen as the best software solution, basing on criteria such as the scale of operation, the knowledge management, the telephony integration, the multi-channel management, etc. Evolution of CzRM 28 Figure 5-1 Print screen of the software used for 311 [Schellong 2008] The New York City Department of Information, Technology and Telecommunications (DoITT) began the transition to 311 on September 30, 2002. Departments with the ten largest call centers and over 250 employees were gradually added to 311. They planned to disconnect the old agency service numbers over time. [Schellong 2008, p. 96] Mayor Bloomberg officially launched the 311 operations on March 23, 2003. A wide marketing campaign was organized for the purpose of informing people about 311, and to try to "change the citizens’ expectations about government interactions" [Schellong 2008, p. 97] and finally to try to decrease 911 non-emergency phone calls. Since the 311 service went live it has received almost 14 million calls a year. Evolution of CzRM 5.2.2 29 Services and products of 311 CzRM Besides the phone channel, citizens can use physical service centers maintained by the various agencies. The Web portal (nyc.gov), the SMS service (311NYC), Skype, the 311 Blog, the TTY, Twitter or the iPhone application are (for the moment) the numerous ways to interact with the government. [NYC gov 2011] The 311 system offers citizens access to information and online services such as epayments getting financial resources and public benefits, applying for a job, getting licenses, permits or certificates, complaining about: heat, noise, illegal burning, traffic light, dead animal removal, potholes,..., subway/rails/bus services, or simply paying a parking ticket. "One-stop shop approach can also be found on the Web portal." [NYC gov 2011] It is difficult to be exhaustive in view of the fact that the number of services is important However, the following chart shows concisely the goals and objectives of a 311 project (in Minneapolis), and its degree of completion. We can therefore have a better vision of what can be improved, and mainly: what could be the upcoming services provided by the city. Goals Improve citizen satisfaction through ease of use and access to 311 Objectives Deliverable % complete A central body in the city handles citizen questions and concerns One telephone number to access services 100 Simplified access to city non-emergency services and information 24x7 access to city services 50 Phone, web, e-mail, fax, walk-in, and kiosk access to city services Service level expectations are set at the time of service request 90 Citizen satisfaction with city services is improved Requests for information are resolved by 311 90 Evolution of CzRM Consolidate existing resources/develop efficiencies Improve service request routing and tracking Improve city services through results management 30 Citizen satisfaction is measured and shared between 311 and city departments Tracking number given to callers to track request through completion 90 Obtain cost efficiencies to fund ongoing operations Pool existing resources in a central call intake, management, and resolution system 90 Central source of real-time information and history of activity Consolidate existing call centers and voice response units 60 Improve service request traceability Requests for service are tracked by a universally deployed tool 75 Improve internal request handling Service requests are routed to the appropriate department 90 Integrate phone, web, counter, and kiosk services Service requests can be routed for crossdepartmental collaboration 25 Simple information requests are handled by 311 rather than transferring to other, more costly, department experts 90 A central data repository about service fulfillment and historical data by property is created 50 Monitor timeliness of service delivery Record and track responses to improve processes, people, and technology 25 Provide accountability for timely service Develop performance measures to support implementation of a resultsbased accountability model 75 Use data to facilitate long-term planning and development of goals and priorities for the city Develop enterprise standards and eliminate shadow and duplicate systems by creating a single front-end CRM tool 75 Improve management reporting capability (trends, service peaks, cross-functional analysis) 50 Evolution of CzRM Use 311 to improve homeland security Improve 911/ dispatch services 31 Offer accurate information about disaster situations: where to go for help, what to do, where to find shelter, how to find a missing person Locate facilities in another precinct so 311 can be the secondary emergency response site in case the main 911 center is destroyed 100 Act as the single point of contact during a disaster 90 Use to dispatch emergency personnel to emergency sites in case of disaster 90 Handle nonemergency questions and keep 911 open for true emergencies in a crisis Reduce nonemergency calls to 911 by 33% 25 Eliminate the need for police dispatch for low priority calls (10,400 per year) Offload nonemergency calls to 911 (1/3 of all calls) 50 Decrease police dispatches to nonemergency situations Provide real-time information to first responders—reverse 911, e-mail listserv, etc.) 25 Improve ability to respond to 911 emergency calls Expand 911 services to nearby suburbs 0 Develop 911 emergency overflow and backup capability Improve policing capabilities 90 Offset reduction in CCP/Safe officers Track suspicious activity and provide a repository of problem properties by address 100 Track and flag emerging trends in activity, including disease outbreaks and suspicious activity Take Police E-Report calls to improve customer service 100 Streamline business processes to offset reductions in Public Safety staff Provide real-time information to officers to enhance tactical response and non-emergency requests 0 Figure 5-2 311 System Goals, Objectives, Deliverables, % Complete. [City of Minneapolis 2006] Evolution of CzRM 32 We can see that the system is already working, but it can (and will) always evolve and be improved: the people's expectations and the technologies change very quickly. In this regard, we can take the "Street Conditions Observation Unit" (SCOUT) as an example of the improvements to the NYC 311 service. SCOUT was quite recently introduced by the mayor and costs the city about $1 million a year [Rivera 2007]. A squad from five different city agencies patrols the streets to report any kind of issue (e.g. damaged city property, homeless people in need of aid, etc.). Each member has a GPS and a Smartphone to enter the information directly into the 311 system. [Schellong 2008, p. 98] More recently (January, 2011), The Bloomberg administration announced a new Internet tool for the New York City citizens that encourages people to do what they like the most: complain. Stephen Goldsmith, the deputy mayor for operations, provided a citywide map that references all the 311 service requests, which can be viewed by location (Council District, Community Board or address) as well as by type (a noise complaint, or property damage). [NY Times Blog 2011] This new tool will allow the identification of the most "dangerous", "noisy", "dirty" districts (even houses). One can imagine (despite the "Privacy Policy 311" supposed to guarantee the respect of private data [NYC gov 2011]) that such tools will eventually give the identity of each "problematic" persons, as well the place where this person lives. This is definitively a slippery slope, see chapter 6.2 on the hyper-surveillance about this subject. 5.2.3 Impact of CzRM It's a fact that government is a bigger organization than any private corporation: the services provided by a government exceed from far those found in the private sector (in term of quantity and complexity). [Schellong 2008, p. 102] It is therefore quite impossible to know the profits, especially as they are often intangible. However, in December 2004 Mayor Bloomberg stated: “New York City’s 311 system not only provides everyday citizens with better access to government but also makes government more accountable and better able to respond to the changing needs of the population.” [Schellong 2008, p. 100] Evolution of CzRM 33 Nevertheless, we can give some examples of specific improvements related to the implementation of 311 in NYC, including several agencies working hand in hand with this system. E.g. the Department of Transportation (DOT) started changing its strategy after it had analyzed the information given by 311 system. The potholes are now filled thanks to the data provided by the 311 callers. DOT used to organize itself by setting a fixed schedule to repair the streets, if a pothole was announced in an area scheduled for some other time, those potholes would stay unfilled for a month (or more). After the change, even if citizens report about three times more potholes than in the past, they managed to fill them within 18 days or less by planning directions more efficiently and reorganizing their resources. [Schellong 2008, p. 101] Another example came after an analysis of the citizen call data which revealed that noise was the number one complaint; the Bloomberg administration subsequently legislated and actualized the city‘s 30-year-old noise law. [Lueck 2007] With an operating budget of $25 million, the government has never tried to save money with its 311 project, it was only a tool to improve customer/citizen service, even if it "may lead to budget or responsibility gains for some departments" [Schellong 2008, p. 132] (see the DOT example). Finally (according to [Schellong 2008, p. 130] ) we can say that if the CzRM can reduce the complexity of interactions between citizens and the government, it will definitively increase the citizen's trust in government. Drawbacks of CzRM. 6 34 Drawbacks of CzRM. The disadvantages of the CzRM are more or less comparable to the CRM since the goals are similar: collect data to understand customers / citizens better, and thus improve the way to serve them. 6.1 Cost Sort, copy and scan a prodigious amount of data is very expensive, and this is without taking into consideration the tools used to collect this information (software developers, system administrators, maintenance people to keep the software running, call centers,...). Moreover, the result is very difficult to quantify and sometimes it is even unsatisfactory. [Gartner 2011] The use of new tools involves significant costs for training, such as the commitment of professionals to train employees of the group and the expected loss of productivity during this training period. [eHow.com 2011] It is also essential for a governmental system to keep backups of all this information, and have absolute security for the protection of data. The loss of personal information by government would be disastrous for the credibility of the people in charge. The example of the "buzz" caused by the computer failure in the canton of Vaud during the last federal elections in October 2011 is the proof: people expect from government a reliable system. 6.2 Hyper-surveillance The hyper-surveillance problem can be attributed to e-government as a whole. Citizens will be forced to have a permanent electronic contact with their government, once the technological barrier to entry resolved. We can also expect that the government will provide software particularly keen on personal information, resulting to a lack of privacy for the citizens. We are still far from this scenario, at least in Switzerland, but this trend is being confirmed with the arrival of the biometric passport. Strict rules should be set up to avoid a totalitarian system. [Singel 2007] Drawbacks of CzRM. 35 Moreover, if the public administration collects and analyzes the data, it's obvious that the domain of public administration will be politicized by CzRM. "Data ownership, control and validity or trustfulness of results could be a central battleground in the future." [Schellong 2008, p. 143] 6.3 Others Drawbacks This concept is theoretical and there are a lot of extern factors that could perturb the application of such system. A very important point is for example the human resource element. In fact, the deployment of CzRM system needs a huge change in an organization and culture of these two entities, government and people. The employees working in the administration should be trained, as mentioned on the previous sections, to work on the system and the citizens should evolve while facing a change of mentality in their relationship with the government. It is also important to note that the heterogeneity and uncontrollability of the services offered by the system could represent a problem. Indeed, a various offer of services is a good aspect of the CzRM but it might, also, represent a problem as the system will interact with a huge number of domains and services (letters and forms, administered, election, civil status, military census). We could also say that these services are uncontrollable due to political influence and changes. This will require a high level of customization and high flexibility of the system. Many disadvantages could still be attributed to the implementation of the CzRM system, as evidenced by an abundant literature on the subject. However, it is less about the effectiveness of the system than the inability of managers or the lack of commitment of employees in charge of its implementation. We can refer to Critical Success Factors (next chapter) for the main points to focus on, but it is obvious that if we ignore one of these factors, it can turn into a Critical Weakness/Failure Factor and lose the benefits of such systems: "The key understanding it's preparation for a successful roll-out that can eliminate the drawbacks." [Justin Hitt 2006] Critical Success Factors 7 36 Critical Success Factors Critical Success Factors (CSF) can be defined as ―the limited number of areas in which satisfactory results will ensure successful competitive performance for the individual, department, or organization‖. [Rapidbi 2007] It should be noted that the CSFs are not the same in public administration or in the private sector. One simple explanation is that the resource allocations are directly influenced by politics, not by the laws of business. The project manager must first identify the factors that may influence the course of the project, to ensure the achievements of these objectives from the beginning. [Garner 1986] It is specified in the CSF definition that these factors should be limited to a small number, in order to focus on the factors having the greatest impact on the project. D.R. Daniel evokes more precisely 3 to 6 factors [Daniel 1961]: in this work, six of them will be put forward, each with a different weight depending on the chosen project. Information Technology 7.1 Everything about CzRM is information technology-driven. In fact, CzRM is software extending across all the governmental structure. When a government decides to move towards a citizen-oriented strategy, it must expect to accumulate a large amount of digital data, whether in back-office (statistics, accounting, logisitics, back-end databases,... ) or in front office (call centers, programs to interact with citizens) [Reynolds 2002, cited by Azari 2008] However, to be effective, Information Technology (IT) must have some key features in order to provide adequate service to its citizens. IBM [IBM 2001] generates two main features to increase reliability: Flexibility You should know that most of the software dedicated to CzRM are designed by private companies (i.e. Microsoft), it is mandatory to ensure that the various programs purchased are compatible with each other. Citizens, other governments, suppliers and partners must be able to interact on the same technology base. Critical Success Factors 37 Scalability e-government (by extension the CzRM) is taking an increasingly important place and the technical means should follow this growth. We can imagine systems designed to support the increase of data. 7.2 Organization To be effective, the government's organizational structure need to be understood. Government which want to be more "citizen centric" doesn't need to integrate only citizen service functions. A high degree of cross-functional collaboration is requested in order to serve citizen in a better way: the different departments have to work closely together and have to improve therefore the internal communications. 7.3 Political support It is obvious that without the support of politics, any governmental project is doomed to failure. It is therefore very important to ensure that no political shift will interfere with the course of a CzRM project. In addition, through its process, it can enhance the application of democracy in allowing "transparency and accountability" inducing the citizens to participate more fully in political life. [ISEING.org 2003] 7.4 Top Management support The Top-Management is one of the crucial step to achieve a project. Paul Dorsey even states that in all studies of information systems conducted so far, the support of Top Management is the major reason for the success or the failure of any project. [Dorsey 2001] Figure 7.1 also puts forward the "Critical Failure Factors" research into the state of IT project management in the United Kingdom. It proves (if needs) that without the full investment (both on a financial and human aspect) of the Top-Management, the project may stop at any time during its life cycle. In fact, an IT project begins with an executive-level manager / project leader. This is the person making the bridge between Top Management and developers + other team members. His role will be to inform the Top Management about the progress of the Critical Success Factors 38 project and hire qualified people for its proper process. His commitment through the development of the system is crucial as it will directly influence the Top-Management. [Mooney, Mahoney, 2008 Wixom] 1. Lack of top management 2. Misunderstanding of scope/ 3. Lack of client/end-user commitment objectives/requirements commitment/involvement 4. Changing scope/objectives 5. Poor planning/estimation 6. Inadequate project management 7. Failure to manage end-users expectations 10. Lack of adequate change control 8. Conflict among stakeholders 9. Change is senior management ownership 11. Shortage of knowledge/ skills in 12. Improper definition of roles and the project team responsibilities 13. Artificial deadlines 14. Specification not frozen 16. Employment of new technology 17. Poor control against target 19. Lack of effective methodologies 20. Staff turnover 15. New or radically business process/task 18. Number of organisational units involved 21. Multiple vendors Figure 7-1 State of IT project management in the United Kingdom [Oxford University, ComputerWeekly.com, 2008] 7.5 Change Management As said in chapter 7.2, the implementation of CzRM technologies implies changes to the organizational structure. CzRM initiatives require global view and every employee must understand the purpose and the changes that CzRM will bring. [Saremi 2009] Implementation of CzRM means that some jobs will be significantly changed, that training program and on-going education will be organized, and that cultural changes will be required. It is clearly a people oriented effort and the adaptation of all the workers need to be followed by the Top-Management to avoid change resistance from employees. Critical Success Factors 7.6 39 Stakeholders culture Companies using a CRM system often target a specific group of clients (rich / young / Educated / catholic /...). By comparison with CzRM, even if sometimes the government must also focus on a particular segment of its population (accident and occupational, unemployment insurance, admission to the University,...), the majority of services includes all citizens, whether they are digitally educated or not. Therefore, "egovernment implementation may require a change in public culture and new methods of providing services" [Cohen, Eimicke 2002]. For this purpose, one of the priorities is to overcome the digital divide. Digital divide refers to "the gap or imbalance that exists between those who have access to Information and Communications Technology and also to the unequal access of resources." [ICT4D 2008] Many have feared grave consequences for those unable to access the power of the Internet (Seniors that tend to be excluded from the digital revolution or lower socioeconomic groups who are excluded through the high complexity [Schellong 2008, p. 130]; however, recent reports suggest that this divide is narrowing, rather than expanding. [NTIA 2000] Conclusion 8 40 Conclusion After many pages trying to define, explain, develop or give examples on the CzRM system, only one thing is certain - CzRM is not definable in one word: it is not just a "hardware" or "software", it is not just an advanced Website, it is not just a "call center". It is a full integration of the following elements/components: the culture of the organization, how the organization is structured, IT, people, it is a whole in order to meet the citizens / customers . Now it is necessary to have the right tools to achieve it, and an adapted culture of organization to obtain appropriate results. CzRM is not only one thing, it is a lot! [Schellong 2008] Communication between the various entities in a society has become very important in recent decades; in fact, we are living in a world where it has become necessary to manage the large flow of information for a better customer / citizens relationship management. As we have seen throughout our analysis in this paper, the Customer Relationship Management, which tends to optimize the relationship between customer and businesses, forms the basis of Citizen Relationship Management which provides better services for citizens to Government to create more participatory and closer relationship between the government and their citizens. However, certain factors must be considered as the government should keep in mind its public status and that persons that they are dealing with are citizens and not customers. The evolution of the services offered should not adversely affect the core values and drivers of the public sector. Finally, an optimal use of this system also requires an online access for all these people, by taking barriers down and also by improving the capacity and skills of people either by training people, recycling, and a strategic educational system in general . References 9 41 References [City of Minneapolis 2006], Building a 311 System: A Case Study of the City of Minneapolis, http://www.cops.usdoj.gov/files/RIC/Publications/e08086159- Minneapolis311.pdf , (retrieved 10.11.2011) [Cohen, Eimicke 2002], S. Cohen, W. Eimicke, 2002: The Future of E-government: A project of Potential Trends and Issues, Proceedings of the 36th Hawaii International Conference on SystemSciences (HICSS'03) IEEE [Coleman 2005], Coleman, 2005: " Critical Success Factor in Citizen Relationship Management" [Daniel 1961], D.R. Daniel, 1961: Management Information Crisis, Harvard Business Review, Vol. 39,No. 5, Sept/Oct.,pp. 111-121. [Dorsey 2001], Paul A. 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