Abstract

Over the past 10 years, a number of studies have pointed out that many e-CRM projects fail to deliver the expected benefits. In the business-to-business e-CRM market, many customers have faced issues with technology implementation, management of organizational change, and/or e-CRM effectiveness. However, none of these studies mentioned PeopleSoft. In fact, PeopleSoft’s e-CRM has been a best-of-breed solution. The purpose of this case study is to explain the determinants of the success of PeopleSoft’s e-CRM. This study was carried out in PeopleSoft’s Canadian subsidiary in 2004 (before the acquisition by Oracle). The findings reveal the superiority of PeopleSoft on the financial, marketing, and technological dimensions. In fact, the sustainable competitive advantage of PeopleSoft’s e-CRM lies in what is called a value-based business model. This unique business model is based on a 100% Internet architecture, a pricing model customized according to the value delivered to the customer (not the number of users), and the sharing of e-CRM risk with customers. This case study describes a striking reality: PeopleSoft’s CRM vision is the key success factor. Other e- CRM vendors, including Siebel, lack a vision for selling their e-CRM technology.

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