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INTRODUCTION
1. Reasons for choosing this research
Customer relationship management (CRM) plays an important role for businesses because customers are the biggest asset of the business. Any business that wants to survive and keeps sustainable development in the market must initially establish a set of existing customers, and rapidly developing potential ones. CRM is a strategy and processes with the aims of discovering potential subjects, turning them into customers and maintain them to valuable and loyalty customers. In the context of e-commerce explosion, CRM expands to eCRM (Electronic Customer Relationship Management). eCRM increases ability to capture, integrate and distribute customer data obtained through e-commerce transactions.
Competitive situation is going strongly in banking and financial sector of Vietnam. In order to increase its competitive advantages in the current context, commercial banks must strengthen its governance and improve service quality to retain their customers. Customers' understanding is the foundation for sustainable competitive advantages of the banking sector through the assessment of opportunities, improvement and maintenance of good relationships with customers and enhancement of customer value to create mutually sustainable relationships. Therefore, successful implementation of eCRM solution is considered an urgent need of current Vietnamese commercial banks in the context of strong competition, sustainable development requirements, along with customer-focused trend in business processes, proactive orientation of risk management by customers, enhancement of performance and productivity.
Although eCRM brings many benefits to organizations and businesses, it actually encounters many difficulties to be successfully implementation. According to the annual report by Gartner Group (2001-2014), nearly 50% of eCRM projects failed in the world. Such failure comes from many different aspects such as eCRM strategies of the business, business processes, corporate culture, customer data, top management commitments in the implementation process, etc.
On the other hand, eCRM solution at the commercial banks is information system solutions under complex, large management, high cost and lots of risks. Process for implementation of eCRM solution in the commercial banks appears to be stretching, complicated and involving all parts of the banks. The world has witnessed plenty of works which study the successful implementation process, factors affecting such
successful implementation of CRM/eCRM for the banks and just focus on one phase of the implementation process or a few influencing factors in a certain context scope. The results obtained from these works can be applied to the eCRM solution implementation process for Vietnamese commercial banks to some extents, but must be taken into account specific elements of Vietnam in terms of laws, culture, society, economy and technology infrastructure, etc. Meanwhile, according to the understanding of the author, most of the domestic studies have been focused only in summarizing roles and benefits of eCRM for the banks, or eCRM implementation experience in some banks.
Stemming from the above reasons, the topic "A study on factors affecting the successful implementation of electronic customer relationship management solution in Vietnamese commercial banks " is chosen in order to identify and evaluate influence level of factors affecting the successful implementation of eCRM solution, and determine the relationship between this successful implementation and efficiency of customer relationship in Vietnamese commercial banks.
2. Research overview
Many international case studies about the factors affecting eCRM solution successful implementation have been performed by Kim et al (2002); Goodhue et al (2002), Wilson et al (2002), Luis E. Mendoza et al (2007), King and Burgess (2008), Wang (2011), and Amilan Ganesamurthy (2012), Esmaeilpour and Dashti (2013), Ali et al (2015), along with certain conclusions on individual factors or groups of factors that affect the eCRM solution successful implementation. Factors determined by the research include: eCRM strategies; Top Management Commitment; Business processes; Consulting team; Project team; Banking culture; Users; Data quality; Technology infrastructure; Inspection, supervision and measurement; Knowledge management; Schedule and budget management; etc. In the research findings, these factors can be identified with inheritance and new development, in which their level of significance to the successful implementation may vary depending on the perception of the object to which the author carries out investigations and surveys, as well as location and context of the research period.
The in-depth researches on eCRM solution at commercial banks in the world are published in doctoral thesis, and prestigious academic journals. Doctoral thesis of Abd El Kader Nermine (2012) - Middlesex University - Britain launched a research model of factors (technology, banking culture, banking strategies, and customer awareness) which affect the level of readiness for eCRM solution and how readiness for eCRM directly impacts on the quality of banking services at commercial banks in Egypt. Research of
4. Research object and scope
- Research object: The research focuses on eCRM solution implementation and the factors affecting this successful implementation in Vietnamese commercial banks. - Research scope: + Research contents: Study the successful implementation of eCRM solution and any influencing factors of this successful implementation on the efficiency of customer relationships in Vietnamese commercial banks.
+ Research space: Vietnam commercial banks have been implementing eCRM solution.
+ Research period: Secondary data was collected from 2013-2016; primary data was collected from 2015-2016.
5. Research methods
Thesis research framework is followed by an applied basis under adjusted research frame for information systems of Von Alan R Hevner (2004) (Figure 1).
The thesis is done on the basis of dialectical materialism and historical materialism, which is a combination of qualitative research and quantitative methods. Specific research methods of the thesis include: (1) Information analysis and synthesis; (2) Qualitative research; (3) Quantitative research.
Figure 1. Thesis research framework The thesis is carried out on the basis of empirical research method by which the author begins by defining research objectives, then presents the research overview on the factors affecting the successful implementation of eCRM solution at commercial banks and the practical implementation of eCRM solution at Vietnamese commercial banks in order to ensure objectivity, strictness and universality. Next, the the exploratory research is conducted at a commercial bank to determine the current state of implementation of the eCRM solution in Vietnamese commercial banks and the factors influencing the proposed model and research hypotheses. This is followed by the determination of variables that measure the research concepts. Lastly, the quantitative research is carried out to collect and process data to test hypotheses and report results according to the procedure shown in Figure 2.
Human Regulations, rules Competence Characteristic Organization eCRM strategies Culture & organization eCRM process eCRM solution deployment process Technology Infrastructure Core banking Technology solutions Application solutions Technological capacity for implementation
Foundation eCRM solution theories Frames of successful eCRM solution implementation Influencing factors and measurement criteria
Methodology Information analysis and synthesis Qualitative research Quantitative research
Context Research Knowledge base
Determination Factors affecting the successful implementation of eCRM and measurement criteria Construction Research model and hypotheses
Evaluation / Measurement Qualitative analysis Quantitative analysis
Business^ Assess^ Refine Needs (^) Applicable Knowledge
Application for eCRM solution implementation in commercial banks Additions to the Knowledge Base
scientific basis for Vietnamese commercial banks in Vietnam to deploy the eCRM solution successfully.
7. Thesis structure
The thesis is designed to include the introduction, conclusion and 4 chapters. Chapter 1. Theoretical issues about the study of factors affecting the successful implementation of electronic customer relationship management solution in commercial banks
Chapter 2. Situational analysis with the identification of factors affecting the successful implementation of eCRM solution at Vietnamese commercial banks.
Chapter 3. Findings of factors affecting the successful implementation of electronic customer relationship management solution in Vietnamese commercial banks
Chapter 4. Discussion on findings and propose solutions for the successful implementation of electronic customer relationship management solution in Vietnamese commercial banks.
CHAPTER 1. THEORETICAL ISSUES ABOUT THE STUDY OF
FACTORS AFFECTING THE SUCCESSFUL IMPLEMENTATION OF
ELECTRONIC CUSTOMER RELATIONSHIP MANAGEMENT
SOLUTION IN COMMERCIAL BANKS
1.1. Overview eCRM solution for commercial banks
1.1.1. eCRM solution
1.1.1.1. Customers and their roles
The concept of customers and their roles are clearly presented in the thesis.
1.1.1.2. Concept of CRM and eCRM
- Concept of CRM: CRM stands for Customer Relationship Management. "CRM is a set of strategic activities aimed at selecting, establishing, maintaining and developing good and long term relationships between businesses and customers on the basis of adapting interest creation processes of customers and businesses ". - Concept of eCRM: eCRM is an extension of the traditional CRM system integrated with new electronic transaction channels, such as Web, wifi, etc., and combined with the application of e-commerce business into strategies of the whole CRM system. - eCRM solution: eCRM solution is a comprehensive information system solution which helps organizations discover, build, maintain and develop sustainable relationships with customers on customer-focused basis to optimize benefits for customers and organizations.
1.1.1.3. History and development of eCRM
History of formation and development of eCRM solution are clearly stated in the thesis.
1.1.1.4. eCRM system structure
The research presents the structure of eCRM in the enterprise.
1.1.1.5. Technology platform of eCRM
There are 05 eCRM platform technologies presented in the research, including: Customer data warehouse, data analysis, personalization, communications and transactions.
1.1.2. eCRM solution in commercial banks
1.1.2.1. Commercial banks
The research presents the concepts of commercial banks and the characteristics of such commercial banks that affect eCRM solution_._
Successful eCRM solution is assessed through the customer relationship efficiency: satisfaction, trust, loyalty, commitments, willingness to introduce others people to use.
1.2.5. Experience of implementation of eCRM solution in the world's banks
Experience of implementation eCRM solution in Citibank, Royal Bank of
Canada, Wells Fargo, Malayan Banking Berhad are made use of to draw some
lessons for Vietnamese banks.
1.3. Overview of factors affecting the successful implementation of eRCM
solution in commercial banks
1.3.1. Cause of failure to implementation eCRM solution
Summarization of causes with direct impact on implementation eCRM
solution failures through research results: "Lack of support from senior leaders of
the organization during implementation process; Poor eCRM strategies; Poor
change management; Poor customer-focused basis ; Poor customer data; Poor
business processes related to customer relationship management operations ".
1.3.2. Overview of CFSs affecting the successful implementation of eRCM
solution in commercial banks
Table 1.1. CFSs affecting the successful implementation of eRCM solution TT CSF factor Verified studies Quantity
1
Top management commitment
Kim et al. (2002); Goodhue et al. (2002), Wilson et al. (2002), Luis E. Mendoza et al. (2007), King and Burgess (2008), Wang (2011), Ganesamurthy and Amilan (2012), Esmaeilpour and Dashti (2013), Ali et al. (2015)
9
(^2) infrastructureTechnology
Radcliffe (2001), Croteau and Li (2003), Alt and Puschmann (2004), King and Burgess (2008), Almotairi (2010), Wang (2011), Ganesamurthy and Amilan (2012), Ali et al. (2015)
8
3 eCRM strategy
Radcliffe (2001), Luis E. Mendoza et al. (2007), King and Burgess (2008), Sivaraks et al. (2010), Almotairi (2010), Abd El Kader (2012), Ali et al.
7
4 Bankingculture
Chen et al. (2004), Payne and Frow (2006), King and Burgess (2008), Sivaraks et al. (2010), Garrido-Moreno and Padilla- Meléndez (2011), Abd El Kader (2012), Esmaeilpour and Dashti (2013)
7
5 Businessprocess
Radcliffe (2001), Chen and Popovich (2003), King and Burgess (2008), Garrido-Moreno and Padilla-Meléndez (2011), Esmaeilpour and Dashti (2013)
5
TT CSF factor Verified studies Quantity
6 Data quality Radcliffe (2001), Roh et al. (2005), Luis E. Mendoza et al.(2007), King and Burgess (2008), Almotairi (2010) 5
7
Inspection, supervision and measurement
Da Silva and Rahimi (2007), Eid (2007), Pan et al. (2007), Almotairi (2010), Ganesamurthy and Amilan (2012) 5
8 Users
Steve Mankoff (2001), Goodhue et al. (2002), Wilson et al. (2002), Payne and Frow (2006), Esmaeilpour and Dashti (2013)
5
9 Consultingteam^ Da Silva and Rahimi (2007), Eid (2007), Luis E.Mendoza etal. (2007), Esmaeilpour and Dashti (2013) 4
10 Project team Eid (2007), Luis E. Mendoza et al. (2007),Esmaeilpour and Dashti (2013) Almotairi (2010), 4
Source: From the research results composed by the author
SUMMARY OF CHAPTER 1
Chapter 1 generalizes the most common theoretical issues of eCRM solution and eCRM solution deployment for commercial banks. A prominent feature of Chapter 1 is the systematization of the factors affecting the successful deployment of eCRM solution at commercial banks through the results of mainly overseas studies: “(1) eCRM strategy; (2) Top management commitment; (3) Business process; (4) Consulting team; (5) Project team; (6) Banking culture; (7) Users; (8) Data quality; (9) Technology infrastructure; (10) Inspection, supervision and measurement”.
The rationale and literature review of these factors will be an important premise in empirical research to determine the factors involved, as well as their order of impact on the implementation of eCRM solution at commercial banks in Vietnam.
2.3.2.1. eCRM strategies
The research project demonstrate an analysis of the real situation of eCRM strategies at Vietnamese commercial banks based on customer-centric strategy and eCRM strategy levels: product-based sales; more excellent and detailed customer information; provision of additional support services; personalization.
2.3.2.2. eCRM technology
The research project analyzes the current status of eCRM application at Vietnamese commercial banks in terms of core banking system, customer support system, and application of professional CRM / eCRM solution.
2.3.2.3. eCRM implementation
The research conducts an analysis of the actual deployment of eCRM solution in commercial banks in Vietnam.
2.2.3. SWOT analysis in the eCRM solution implementation process in
Vietnamese commercial banks
Strengths, weaknesses, opportunities and threads in the eCRM solution implementation process in Vietnamese commercial banks are clearly analyzed in the research.
2.4. Exploratory research on the deployment of eCRM solution at Military
Commercial Joint Stock Bank
Military Commercial Joint Stock Bank is the most recent bank to successfully deploy the eCRM solution (2015) with initial effectiveness for customer relationship management and business operations of the bank. The research project present the exploratory research on the deployment process of eCRM solution in some aspects to clarify the implementation process of eCRM solution at commercial banks and identify the factors that affect the successful implementation of the solution.
2.4.1. Overview of Military Commercial Joint Stock Bank
2.4.2. Situation of deploying eCRM solution at Military Commercial Joint
Stock Bank
The research project shows analysis of the implementation of eCRM solution at Military Commercial Joint Stock Bank in terms of: Customer relationship management in the bank prior to deploying the solution; Objectives of the solution; Implementation of eCRM solution at Military Commercial Joint Stock Bank results achieved in the course of successful implementation; risks during project implementation.
2.5. Identify the factors affecting the successful implementation of eRCM
solution in commercial banks of Viet Nam
By analyzing the current situation of eCRM implementation in Vietnamese commercial banks combined with the overall result of Chapter 1:10 factors and 50 criteria are identified as having a significant impact on the successful implementation of eCRM solution in Vietnamese commercial banks.
2.5.1. Strategies of electronic customer relationship management
Scales include: eCRM strategies of the banks: (1) demonstrate customer- focused philosophy; (2) is oriented by development strategies of the banks; (3) determine the full range of objectives to be achieved; (4) is communicated to all units of the banks; (5) express clarity and completion. Among these scales, scale (4), (5) are under new development.
2.5.2. Top management commitment
Scales include: (1) commitments to restructuring business processes; (2) participation in directing and administering the eCRM solution implementation process; (3) support of disagreements and disputes resolution among departments in the implementation process, timely response to negative reaction of the users. (4) Visions in eCRM solution; (5) approval of estimates and eCRM solution implementation plans. Among these scales, scale (1) is under new development.
2.5.3. Business processes
Scales include: (1) Restructuring of business processes under customer-focused basis; (2) Business processes of the banks: full design; (3) Under effective control and assessment; (4) under official issue and implementation by the banks; (5) subject to documentation and consistence across all channels of customer transactions.
2.5.4. Implementation consultants
Scales include: (1) Understanding of banks' business operations; (2) Understanding of customer and customer relationship management in the banks; (3) Experience in eCRM solution implementation in the banks; (4) Excellent analysis system; (5) Supporting activities and maintenance of eCRM solution.
2.5.5. Project team
Scales include: (1) Adequate personnel for functional units engaged; (2) High level of expertise and understanding of customer relationship management; (3) Proper and adequate determination of any requirements of processes in the customer relationship management; (4) Ability to coordinate with implementation consultants; (5) Understanding of assessment and control of eCRM process.
H 4 : Capacity, skills and experience of consulting team have positive impacts on successful implementation of eCRM
H 5 : Capacity, skills and experience of project team have positive impacts on successful implementation of eCRM
H 6 : Banking culture has positive impacts on successful implementation of eCRM
H 7 : Skills, understanding, compliance of users have positive impacts on successful implementation of eCRM
H 8 : Data quality has positive impacts on successful implementation of eCRM
H 9 : IT infrastructure has positive impacts on successful implementation of eCRM
H 10 : The processes of Inspection, supervision and measurement during the implementation and operation have positive impacts on successful implementation of eCRM
H 11 : Successful implementation of eCRM solution has positive impacts on the customer relationship efficiency
Figure 2.1. Research model
SUMMARY OF CHAPTER 2
Chapter 2 analyzes the current status of operations, IT applications and eCRM solution at Vietnamese commercial banks. From these points, the author identifies the factors that affect the successful implementation of the eCRM solution and proposes a research model to test the impact of such factors.
H 2 +
H 1 +
H 3 +
H 4 +
H 5 +
H 6 +
H 7 +
H 8 +
H 9 +
H 10 +
Cam kết của lãnh đạo cấp cao
Chiến lược eCRM eCRM
Quy trình kinh doanh
Nhà tư vấn triển khai
Đội dự án
Văn hóa ngân hàng
Người sử dụng
Nhân viên
Chất lượng dữ liệu
Hiệu quả
mối quan
hệ khách
hàng
Triển
khai
eCRM
thành
công
Hạ tầng công nghệ
Giám sát, kiểm soát, đo lường
H 10 + H 11 +
eCRM strategies
Consultants
Business Process
Top Management Commitment
Project team Banking culture Users
Data quality
Technology infrastructure
Inspection, supervision, and measurement
Successful Implementation eCRM
Customer relationship efficiency
CHAPTER 3. FINDINGS OF FACTORS AFFECTING THE
SUCCESSFUL IMPLEMENTATION OF ELECTRONIC CUSTOMER
RELATIONSHIP MANAGEMENT SOLUTION IN VIETNAMESE
COMMERCIAL BANKS
3.1. Research sample
- Survey participants: Members involved in implementing eCRM solution at Vietnamese commercial banks
- The minimum sample size of the research project is 305 observations.
3.2. Data collection and processing
3.2.1. Questionnaire design
3.2.2. Data collection
3.2.3. Data analysis methods
Quantitative data analysis method is described through the use of: scale assessment by Cronbach's alpha; exploratory factor analysis EFA; confirmatory factor analysis CFA; structural equation modeling SEM.
3.3. Data analysis
3.3.1. Scale assessment by Cronbach's alpha
Results of scale verification by Cronbach's alpha eliminate factors "Business processes" (α = 0.455), "eCRM users" (α = 0.394), "Inspection, supervision and measurement "(α = 0.419) due to coefficient α <0.6. In addition, a number of observed variables having correlation coefficient of total variation <0.3 are also eliminated including: CL 5 , CK 4 , CK 5 , DA 5 , DL 4 , VH 3 , VH 5 , HT 5 , TC 5 , HQ 6.
3.3.2. Exploratory factor analysis
Exploratory factor analysis EFA is analyzed in the research. As can be seen from the results, 2 scales, namely TV 4 and TV 5 continue to be excluded due to a smaller weighting factor than 0.4. The second exploratory factor analysis is conducted with the results as follows: KMO = 0.792 p -value in Bartlett's test is significant (sig <0.05), seven groups of factors are extracted with 60.837% of total variance extracted from 25 observed variables.
3.3.3. Confirmatory factor analysis
Confirmatory factor analysis is analyzed under the model: there are 7 factors (25 observed variables) affecting the successful implementation of eCRM solution ( observed variables), successful implementation of eCRM affects the customer relationship efficiency (5 observed variables). According to the results, DA 2 has a
Figure 3.1. Structural equation modeling
3.3. Research findings
- Research findings confirm that 07 factors measured by 24 criteria have powerful impacts on the successful implementation of eCRM solution in Vietnamese commercial banks. 07 factors belong to 3 groups: eCRM strategies, human factor (Top Management Commitment, Consulting team, Project team, Banking culture), technology factor (Technology infrastructure, Data quality). - Impact level of the factors affecting the successful implementation of eCRM solution is arranged by the following order: "eCRM strategies, Top Management Commitment, data, project team, consulting team, technology infrastructure, banking culture" in which the first factor shows its strongest influence. These factors explain 51% of the variance in the "successful implementation of eCRM solution". - It is also confirmed that the "successful implementation of eCRM solution" has certain influences on " customer relationship efficiency " in the commercial banks. The concept of "successful implementation of eCRM solution" explains 15.3% of the variance in the " customer relationship efficiency " in the commercial banks. - These scales for the factors affecting the successful implementation of eCRM solution, assessment of successful implementation of eCRM solution, customer
relationship efficiency achieve "unidirectional property, convergence, reliability and highly differentiated value ".
- Research findings give a "matching model to market data" with standard statistical indicators. - Accept the hypotheses H 1 ,H 2 ,H 4 ,H 5 , H 6 ,H 8 ,H 9 ,H11; reject the hypotheses H 3 ,H 7 ,H 10. - As can be indicated from the results of scales testing, hypothesis testing that 03 newly-included variables are appropriate: CL 4 , CK 1 , VH 4.
SUMMARY OF CHAPTER 3
Chapter 3 presents the results of the research project including the results of
verifying scales, testing hypotheses of the research model. The thesis presents the
research sample, data collection and processing methods. With a sample of 308
leaders and employees of commercial banks involved in the implementation of the
CRM / eCRM solution, the research project conducts a Cronbach Alpha reliability
rating, EFA exploratory factor analysis, CFA confirmatory factor analysis, structural
equation modeling and hypothesis testing of the research model. The results obtain 07
factors “ eCRM strategies, Top Management Commitment, Data, eCRM project team,
Implementation Consulting team, IT infrastructure and Banking ” with proportional
effect on “s uccessful implementation of eCRM solution ”. These factors are measured
by 24 criteria and account for 51% of the variation of "successful implementation of
the eCRM solution”. As indicated by SEM model “s uccessful implementation of eCRM solution ” has proportional effect on “ customer relations effectiveness ” and
explains 15.3% variability of " customer relations effectiveness " at the commercial
banks. Bootstrap test with N = 1000 is used in the research project to verify that the
SEM model can be reliably estimated.
