Is PRM the new CRM?


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I recently spent some time with Josh Greenbaum, renowned industry analyst, blogger and principal of Enterprise Applications Consulting. We had a fascinating discussion and he made a statement that really struck a chord with me. He said, Relationship Management is the new ERP. He went on to explain that ERP was seen to be the most strategic component of a company’s enterprise but now we’re all concluding that relationship management – both up- and down-stream is the most critical activity for business success. Executing well in relationship management should be the number one business priority.

Think about that for a moment and then consider this: Most companies have invested in CRM strategies and systems at some point in time over the last 10-15 years; however most appear to rely upon them largely for salesforce automation – record and contact management, lead management, sales pipeline management and reporting. Some (but only some) have gone further and implemented marketing automation systems as well. But in almost every case I have encountered, the relationship management activity is focused on customers. But what of the other relationships that could be considered of strategic importance? What about supply chain partners; raw materials suppliers, component suppliers, contract assemblers, labor providers? What about OEM partners, technology alliances, strategic go-to-market alliances? Wholesalers, distributors and franchisees? And what about resellers, retailers, e-tailers, VAR’s and sales agents? Aren’t those relationships just as important to any business?

Most company’s still manage their non-customer relationships using (dwindling) human resources, spreadsheets and software mash-ups. They waste time and money, deliver a poor, inconsistent experience to their relationship partners and fail to leverage organizational best practice. There is a solution. It’s called PRM.

So if as Josh said “Relationship Management is the new ERP”, then perhaps Partner Relationship Management is the new CRM?

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Republished with author's permission from original post.

Mike Morgan
Mike has over 20 years of ICT, OA and CE channel sales and marketing management experience and is responsible for Relayware's global go-to-market strategy as well as the sales and marketing functions while overseeing the company's operations worldwide. Mike is recognized as one of the industry's leading experts in indirect go-to-market strategy best practice.


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