Last week we listened in as the CIO of the Amazingly Bright Colors Corp. briefed the IS leadership team on the company’s new business strategy. The bug I placed seems to be working well. The chief marketing officer (CMO) has just joined the meeting and is about to explain the new strategy.

CMO: Thanks for inviting me to join you. I’m going to start with a question: What do you know about customer relationship management – CRM – and one-to-one?

Process redesign manager: It means treating our customers better. We’re going to re-engineer our core processes to improve customer service, reduce cycle time, improve quality, and reduce costs. Uh … doesn’t it?

Database manager: You’re really looking for a customer database or data warehouse, aren’t you? Something that supports demographic analysis, target marketing campaigns, screen pops in the call center, stuff like that. One-to-one I know something about – it’s one of the four basic data relationships in relational design.

Application development manager: Or are you just looking for us to install a CRM package? I’ve been keeping track of that market and we have several good ones to choose from.

CMO: I guess we have some work to do. First of all, we’re calling our strategy “molecularization.” Get used to the word – you’re going to be hearing it a lot.

Operations manager: Why not something more pronounceable?

CMO: If you can pronounce “molecularization,” I’ll know you’re not drunk. OK, the real reason is that we didn’t want to just grab an industry buzzword. We’re combining the best ideas from several sources and putting them together. It’s molecularization because in the end, each thing we do becomes an atom and we put the atoms together flexibly to create a custom “molecule” for each customer. Another way of looking at it: We’re Cheers, and every customer is Norm.

Process redesign manager: The place to start is to identify and redesign our core processes.

CMO: How is it you don’t understand the problem, but you do understand the solution?

Process redesign manager (confidently): Everything’s a process.

CMO: No, it isn’t. Process redesign is going to be important, but it isn’t the centerpiece. The customer relationship is the centerpiece. It’s our primary asset. We’re going to assess its value, invest in it, and derive returns from it. Our products are important because they help us maintain these relationships. So is customer service. So is marketing … at least, I sure hope so! But the customer relationship is the centerpiece, so we’re going to start by redesigning that, and the customer experiences that affect it. Process redesign comes later.

“One-to-one” describes our relationship with each customer. We’re going to personalize every interaction, with every customer, through every communication channel, and we’re going to personalize our products and services, too. We’re going to be just as personal as Cheers. Only much bigger.

Operations manager (incredulous): That’s impossible.

CMO: Then how come two of our competitors are succeeding at it? It is possible. The question is how to make it happen.

App dev manager: Well, I’m unencumbered by any facts, but this smells like a five-year project to me.

CMO: Better get your nose checked. We have three years, and we need some tangible results in half that time.

App dev manager: I don’t know if our boss has explained the facts of life to you, but systems development and integration projects just don’t happen that fast. We can make a lot of promises right now, but if we do we’re setting all of us up for failure. I suggest the first thing we do is put together a more realistic schedule.

CMO: Let me explain the facts of life to you: With your “realistic schedule” we’ll be out of business before we’re ready to compete.

I have to go. I’m due in manufacturing. But don’t worry – we’ll be seeing a lot of each other.

Next week: The dramatic conclusion.

Note from Bob: I bugged the CIO of the Amazingly Bright Colors Corporation (yes, the ABC Corporation you see in software demos). ABCCo is about to launch its new business strategy, which is fully buzzword compliant, but still pretty good. We’re going to listen in to the IS planning meeting. If you haven’t participated in a meeting like this one, chances are you will.

I think you’ll find the ABCCo experience instructive.

CIO: Okay, kids, let’s get started. I just got back from the executive retreat and we have a major change in direction to deal with.

Application Development Manager (ADM): Again? I thought that’s what we got last year. (Snorts and chuckles from around the room.)

CIO: I understand your skepticism, but I think they’re serious this time.

Operations Manager (OM): I’ll believe it when we see the money.

CIO: They’ve budgeted $20 million a year for the next three years.

ADM: Do we get any of it?

CIO: About a third.

(Whistles, grunts, throat-clearing.)

Database Administration Manager (DBA): Are we finally getting into eCommerce?

CIO: Yes, in a way, but let’s keep things straight. eCommerce isn’t a business strategy. It’s an enabler. Let me take five minutes to lay out the new strategy for you. Then we need to map out a plan.

First, let me give you some background: We’re crashing.

Process Redesign Manager (PRM): Crashing? We had record profits last year!

CIO: Profits are a rear-view mirror. Our leading indicators are all trending down. Our markets are fragmenting, our products are turning into commodities, and two whole industries we used to ignore compete with us in our best growth areas. If we don’t make some major changes in the next couple of years, all we’ll be is someone else’s subsidiary.

ADM: And the strategy is?

CIO: Depending on your guru, it’s called one-to-one or customer relationship management.

ADM: That’s it? Big deal — we’ll choose one of the big CRM packages and we’re done. I was hoping for something more substantial.

PRM: Don’t be a putz. It isn’t just software. We win by treating our customers better. That means process redesign and culture change programs, not just a software package.

DBA: And why do you want to buy a package, anyway? Every time we buy a package we have more problems with integration.

OM: Maybe, but every time we try to build something, the project ends up costing twice as much and taking twice as long as we thought … and all of the features we promised end up going into the “next release”.

CIO: Okay, stow it. You’re shooting at the wrong target anyway. It’s more than customer service enhancement. Marketing is going to redesign the way we relate to our customers. The CMO will join us later so everyone hears it the same way. To give you a hint of what we’re in for, his favorite saying is, “From now on, we’re Cheers, and every customer is Norm.”

We’re going to take a multi-pronged approach to this. Marketing and customer service are going to put together the customer relationship design. I wouldn’t be surprised if the two merged into one organization within a few months, by the way, but don’t spread that around.

Once they’ve put some shape to the new customer relationship, we’re going to figure out how our internal processes will have to change so the new relationship design isn’t built on a lot of empty promises.

That’s when we find out exactly what we have to do here in IS.

Here’s what we know for sure — we’re going to personalize customer interactions, we’re going to customize our products and services, we’re going to be working in marketing time, and our job is to stay off the critical path — nobody waits for us.

OM: Wait a minute. Marketing time?

CIO: Yes, marketing time. Have you heard of Internet time?

OM: Sure.

CIO: This is faster. Okay, let’s start planning …

That’s all we have time for this week. Stay tuned — next week, we overhear The Plan.