The CRM CoE Master Framework Glossary

Most of the terminology in this framework consists of standard U.S. English words with meanings that may vary based on context. To clarify distinctions specific to the CRM CoE, we provide precise definitions—such as differentiating between Talent Development and Talent Management, which may not be immediately apparent. This glossary serves as a reference to ensure consistency in how these terms are used within the framework.

A

Agile framework function

Developing and adopting the Agile framework by the organization.

Artificial Intelligence (AI)

AI refers to the simulation of human intelligence processes by machines, especially computer systems. These processes include learning, reasoning, and self-correction. AI applications include expert systems, natural language processing, speech recognition, and machine vision.

B

Business continuity function

Building a resilient CRM infrastructure for business continuity.

Business outcomes

Tangible results and impacts achieved through CRM initiatives within a CoE. These include reducing risk, improving user adoption, lowering operational expenses, increasing the Net Promoter Score, and growing revenue.

Business value

Created by effectively managing customer relationships, driving revenue growth, reducing costs, and enhancing the overall customer experience, contributing to the organization ’s long-term success.

C

Capabilities

Specific areas of expertise within each domain that deliver organizational value, including vision and strategy, go-to-market, innovation, PMO (project management office), change management, alignment, risk management, DevOps, and data architecture and governance.

Change control function

Introducing CRM changes systematically and safely.

Continuous development function

Ensuring frequent delivery of well-tested incremental changes to CRM production.

Cost avoidance

Financial strategies that prevent unnecessary expenses by implementing measures that preempt potential costs.

Cost optimization

Analyzing and adjusting spending to maximize value and efficiency, ensuring that each dollar spent contributes effectively to business goals.

Cost reduction

Lowering current expenses and operational costs to improve the organization ’s financial performance through streamlined processes, eliminating waste, negotiating better terms, and implementing efficient technologies or practices.

CRM CoE (customer relationship management Center of Excellence)

A CRM CoE is the team assigned to systematically drive business outcomes via the CRM platform(s). It is the strategic and operational hub responsible for driving CRM excellence, aligning CRM initiatives with business objectives, and fostering continuous improvement in customer relationship management practices

CRM CoE Framework

A structured approach designed to optimize and manage CRM initiatives, integrating CoEs with overarching business objectives and providing a unified language for assessment and enhancement.

CRM CoE realm of interest

Encompasses the comprehensive scope of the CRM CoE ’s interests, responsibilities, and areas of impact and control, including the domains of customer centricity, operations, and foundation.

Customer centricity domain

Focuses on aligning CRM initiatives with customer needs and expectations, enhancing customer experiences and satisfaction.

D. Data architecture and governance capability

Ensures strategic data management, design, and optimization.

Data Cultural Aspect

Emphasizes data quality, integrity, and security to enhance CRM effectiveness.

Data integration function

Efficiently integrates CRM systems with other systems to reduce data silos and enhance customer data analysis.

Data quality function

Prevents and reduces duplicative data, maintaining data cleanliness and usefulness.

Data standardization function

Maintains standardized data naming, definitions, and usage across systems.

DevOps capability

Integrates software development with IT operations to enhance CRM system performance.

Domains

Broad categories within the CRM CoE realm of interest that group related capabilities and functions. Domains include foundation, operations, and customer centricity.

E

Economic optimization

The strategic process of efficiently using resources to achieve the best possible financial outcomes, aligning CRM activities and investments with business objectives to maximize revenue, minimize costs, and enhance overall value.

Experimentation function

Developing a culture of testing new ideas through experimentation.

F

Five business outcomes

Key benchmarks measuring the effectiveness of CRM strategies: reducing risk, improving user adoption, lowering operational expenses, increasing NPS, and growing revenue.

Five Cultural Aspects

Sets of functions across capabilities and domains shaping the CRM CoE ’s identity and operational framework, ensuring balanced, sustainable CRM maturity. They include data, people, process, technology, and agility.

Five-Step Process to CRM CoE refinement

A systematic approach to maturing a CRM CoE that involves selecting functions for refinement, drilling down into selected functions, defining ideals, executing improvements, and validating results.

Functions

Actionable task areas within each capability driving the CRM CoE toward strategic goals, including goal setting and prioritizing, transparency, value driven, marketing, sales operation, ideation, experimentation, value creation, talent management, budget, product road map, change control, adoption, Agile framework, workflow/process map, simplification, maintainability, risk mitigation, access control, business continuity, continuous development, testing and automation, talent development, integration, data quality, and data standardization.

G - H

Generative AI

A subset of artificial intelligence focused on creating new content or data resembling human-generated output, enhancing creativity, productivity, and innovation in various fields.

Goal setting and prioritizing function

Defining and communicating CRM objectives to ensure alignment with business value.

Hub-and-spoke governance model

A CRM operating model where a central CoE (hub) sets strategy and standards while decentralized teams (spokes) adapt these to their specific needs.

I - L

Innovation capability

Evaluating and implementing new methods or products to keep the organization ahead.

Integration function

Managing the effective integration of the CRM with other systems.

Leadership evolution

The shift from traditional, tactical management roles to strategic visionary leadership within CRM CoEs is necessary to navigate complex technological landscapes and drive sustained CRM excellence.

Lowering operational expenses business outcome

Reducing costs associated with CRM operations through efficient processes and resource optimization.

M - O

Reducing costs associated with CRM operations through efficient processes and resource optimization.

Maintainability function

Maintaining evolving systems without adding complexity or risk.

Marketing function

Focusing on outreach as supported by the CRM.

Nurture skill acquisition and expertise sharing pillar

Developing and managing the CRM CoE team's skills and knowledge to ensure effective CRM system operation and continuous improvement.

Operations domain

Manages and optimizes the operational aspects of CRM implementations, including project management and change management.

P

People cultural aspect

Fostering a culture of continuous improvement and innovation, focusing on the development and engagement of personnel.

PMO (project management office) capability

Ensures efficient resource allocation and timely project delivery.

Process cultural aspect

The systematic approach to managing CRM workflows and operations, enhancing efficiency, and aligning with strategic goals.

Product road map function

Creating and managing a timeline for delivering business functionalities.

O - R

Reducing risk business outcome

Implementing strategies to minimize potential risks associated with the CRM system, ensuring stability and security.

Risk management capability

Identifying and mitigating risks to maintain the integrity of operations.

Risk mitigation function

Limiting or removing risk to or from CRM systems.

ROI realization

The process of achieving and demonstrating the financial benefits of CRM initiatives, supporting continued investment in the CRM system.

S. Sales operation function

Managing sales processes as supported by CRM.

Service center function

Managing service processes supported by CRM.

Simplification function

Reducing system complexities.

Six Pillars

Core work of the CoE. These include 1) drive strategic alignment 2) establish governance 3) measure ROI realization 4) incorporate collaboration and interoperability 5) hone strategy stewardship and serve as an innovation hub, and 6) nurture acquisition of skills and expertise sharing

Strategy stewardship and innovation hub pillar

Focused on maintaining strategic consistency and fostering innovation within the CRM CoE.

T

Creating and maturing employee talent development programs aligned with company needs.

Talent development function