Enterprise relationship management or ERM is a business method in relationship management beyond customer relationship management .
ERM – Enterprise Relationship Management is a business strategy for value creation that is not based on cost containment, but rather on the leveraging of network-enabled processes and activities to transform the relationships between organizations and their internal and external constituencies maximize current and future opportunities.- Galbreath, 2002
Relationship management is not an entirely new concept. In fact, it has taken over many forms that address specific organizational constituencies (customers, channel partners, specialized service providers, employees, suppliers, etc.). The most obvious form is CRM ( customer relationship management ), which focuses on improving top-line growth by maximizing an organization’s ability to identify sales and business opportunities with its customers. CRM’s little brother PRM ( partner relationship management ), focuses on optimizing opportunity and downstream order management for an organization’s channel partners (eg CISCO and its partner lead and referral management process) On the back end, we have ERP ( enterprise resource planningto manage internal operations including manufacturing, finance, HR, sales and distribution, etc. Specialized HRM ( human resources management ) solutions for collective employee benefits, collective agreements, performance reviews and so forth. And lastly, SCM ( supply chain management , or ERP module or a stand-alone application) to manage the product flow, up and down a firm value chain, with external partners / suppliers.
However, according to Galbreath (2002), “for the most part CRM, human resource management (HRM), enterprise resource planning (ERP), supply chain management (SCM), partner relationship management (PRM), and similar programs have paid very little to the relationships that underpin those processes, or to the intangible – relationship – assets embedded in them. ”
Norman and Ramirez (1993) state, “One of the chief strategic challenges of the new economy is to integrate knowledge and relationships” (Competencies are the technologies, specialized expertise, business processes and techniques that a company has accumulated and customers and keep that fit current. ” Galbraeth (2002) adds that “success in the relationship age requires a deliberate process of creating intangible, relationship assets, growing them and monetizing them”.
Galbreath (2002) suggests that enterprise relationship management is a process that harmonizes and synergizes the organization of business. Harbison et al. (2000) did some research on the performance of alliances and the following statistics in their study:
- “Strategic alliances have consistently produced a return on investment of nearly 17 percent among the top 2,000 companies in the world for nearly a decade. Harbison et al. (2000)
- “The 25 companies most active in alliances achieved a 17.2 percent return on equity – 40 percent more than the average return on equity of the Fortune 500.” – Harbison et al. (2000)
- “The 25 companies least active in alliances lagged the Fortune 500, with an average return on equity of only 10.1 percent.” – Harbison et al. (2000)
- “Successful alliances recognize 20 percent profitability improvements as compared to 11 percent for the less successful companies.” – Harbison et al. (2000)
- “Revenue generation from highly successful alliances equates to 21 percent of overall firm sales as compared to 14 percent for the most successful alliances.” – Harbison et al. (2000)
In a similar study Conducted beg for the side (of results Efficiently run supply chains based on electronic integration and quality processes) by Solomon Smith Barney Analyst Report, Teagarden [ this quote needs a citation ] (2000) presents The Following statistics for suppliers:
- Inventory levels reduced by as much as 50 percent. [ quote needed ]
- Inventory turns doubled. [ quote needed ]
- Stock outs reduced ninefold. [ quote needed ]
- On-time deliveries as increased by 40 percent. [ quote needed ]
- Cycle times decreased by as much as 27 percent overall. [ quote needed ]
- Supply chain costs reduced by as much as 20 percent. [ quote needed ]
- Returns increased by as much as 17 percent. [ quote needed ]
When looking at these numbers, it becomes very attractive. But success in business, as in many other pursuits, is dependent on motivation, investment, trust, discipline and repeatability.
Tools and methodologies
ERM frameworks are needed because they are becoming more prevalent and more integral to an organization’s success. ALTHOUGH Establishing inter-enterprise links is far from a new science, Klambach and Roussel [ this quote needs a citation ] (1999) affirmed That Nearly 60% of business alliances do not deliver Anticipated benefits while Lovallo & Kahneman [ this quote needs a citation ] (2003) Selden and Colvin & [ this quote needs a citation ] (2003) estimate M & a (Mergers & Acquisitions) ranks failures entre 70% and 80%.
With statistics like these, the need to improve Many authors have addressed these issues from different perspectives, including technology enabling a firm, reviewing or re-designing operational and administrative processes, and transforming the culture to be more collaborative. As Galbreath (2002) and Norman & Ramirez [ this quote needs a citation ] (1993) state, co gold Rather the effective leveraging of relationship resources to create new sources of value, is a process of learning and Developing new mental models and Competencies ( Senge [ this quote needs a citation ] , 1991) as well as through new means clustering Obtaining resources / sources.
ERM is still a relatively new field and few players stand-out ERM methodology and tools. Nevertheless, a host of best practices and methodologies exist to carry out an ERM implementation, but they are not integrated. ERM tools can be viewed as enablers of an ERM methodology.
Fundamentally adopting ERM is a cultural and change management issue more than a technology or process one. Therefore, regardless of the methodology or tools that one can use when integrating with outside firms, they must maintain a focus on the human side of the equations. The figure below illustrates the benefits of focusing on the human, cultural and change aspect of a project, notably deploying ERM in this case.
Practical methodologies and frameworks
RIIM and PowerScope
RIIM (Relationship Intelligence and Influence Management) is a registered method of Perfluence.  It is a systemic approach based on the assumption that each relationship can be seen as a linear combination of five different kinds of common relationships. This method can be used “stand alone” or within the SaaS software PowerScope that carries out each concept developed in the RiiM method. It allows an accurate and detailed view of influence maps or relationship matrices, especially with graphic visualizations.
Velox ERM is a product of Partnerz Technology.  It integrals ONA – organizational network analysis ,  process re-design , IS / IT strategy , change management , beg relationship management , customer relationship management , and risk and business continuity management into a comprehensive and simple framework That People Media and organizations in repeatably / consistently: [ citation needed ]
- Mapping and understanding collaborative processes and networks within and across organizational boundaries [ citation needed ]
- Benchmarking collaborative capability [ citation needed ]
- Identifying and selecting the best partners and collaborators to minimize risk and improve the agility of the business network [ citation needed ]
- Understanding and deploying collaborative best practices [ citation needed ]
- Aligning and leveraging new and existing business relationships to business objectives [ citation needed ]
- Accelerating / Facilitating the adoption of business change related to processes, policies, systems and culture changes. [ quote needed ]
- Accelerating decision making resulting in corporate responsiveness to changing market conditions [ citation needed ]
Also available in a searchable knowledge base tool that supports managers and business professionals to understand and use collaborative best practices and accelerates the adoption of ERM. [ quote needed ]
VNA – Value network analysis
- Enterprise feedback management (EFM)
- Business relationship management (BRM)
- Extended relationship management (XRM)
- Enterprise planning systems
- Galbreath, Jeremy (2002). “Success in the Relationship Age: Building Quality Relationship Assets for Market Value Creation”. The TQM Magazine . 14 (1). doi : 10.1108 / 09544780210413219 .
- Inmon, WH, et al. (2001). Data Warehousing for E-business . John Wiley & Sons, New York, NY
- Kalmbach, Charles, Jr., and Charles Roussel (1999). “Outlook by Issue: 1999, Special Edition: Dispelling the Myths of Alliances”. Accenture.com
- Lovallo, Dan; Daniel Kahneman (2003). “Delusions of Success” . 81 (7). Harvard Business Review: 56-63.
No matter how detailed, the business scenarios used in planning is inadequate.
- Normann, Richard, and Rafael Ramirez (1993). From Value Chain to Constellation Value: Interactive Strategy Design. Harvard Business Review on Managing the Value Chain . Harvard Business School Press, 2000, 185-220.
- Torkia, Eric (2005). “Velox ERM: Building an Enterprise Relationship Management Framework”. Montreal: UQAM ( University of Quebec in Montreal ).
- Harbison, JR, Pekar, P.J., Viscio, A. and Moloney, D. (2000) The Allianced Enterprise: Breakout Strategy for the New Millennium, BoozAllen & Hamilton.
- Gretchen Teagarden, Solomon Smith Barney, 2000