The Internet has changed the nature of business processes, the disciplines within an enterprise and the creative process of strategic planning. Interestingly, the Internet may be getting the blame and accolades for the change in business processes. Whether it is a savior of business or the cause of its troubles depends on ones point of view and ability to adapt. If one comes from a perspective of IT it probably is a message of positive change and if you are an operations person or even marketing the change brought on by the Internet has caused confusion and added complexity to these discipline processes. No matter, in the final analysis it is all about the customer. In the late 70’s it was said that the ATM was the culprit in causing neighborhood banks to close. Maybe the ATM was an accelerator to the normal flow of “process of change” and that is good

There are some givens that we must consider. We must never look at automation, be it the Internet or other form of automated processes, as an ideal solution to any and all situations. One size does not fit all. Many companies rushed to be considered ‘hip” and “with it” by jumping on the bandwagon of the Internet only to find it was not a solution and in fact was a detriment to business processes.

Airlines have always been in the forefront of automation innovation in interfacing with the customer. In the 1960’s there was the automation of the Reservation function, then the automation of retail travel agents and commercial accounts, then came the frequent flyer programs (all automated) and finally the Internet in the mid 1990’s. But, I submit that the real driver to current business change was not the Internet but rather the 1982 phenomenon call the frequent flyer programs that started in the US. Probably the most comprehensive use of the CRM process at the time.

The real driver of FFP’s was the evolution of automation of the commercial accounts and travel agents because it allowed airlines to reach out to the traveler directly. The profile systems inherent in automation/reservations systems (PARS, Apollo and Sabre) showed airlines the value of knowing their customers, the traveler, and that is at the heart of what CRM (Customer Relationship Management) has done to revolutionize travel. This was a natural transition when the Internet came in full glory. Basically, CRM was fully embraced by the Internet explosion.

Now the question is: What industry first came on the scene to embrace the Internet and utilize the majority of the potential of CRM? I submit it was travel. Remember Preview/AOL and ITN from the Silicon Valley. They pushed the Internet into the travel industry, not the other way around.

Ken Swanton, an on-line veteran from the early Internet days, has a different take on how CRM has impacted change in business processes. He says, “My ‘C’ stands for Consumer, my ‘R’ stands for Research and my ‘M’ stands for Marketing. My thesis is that web sites are spending far too much time and money on tracking their customers (i.e. someone who has made a purchase) versus focusing on how to convert consumers to customers. I believe the web site owner has to realize the Consumer is using the internet for Research and once you know what the consumer is interested in, you Market to them with directed offers.”

Are there lessons for everyone from travels experience with Internet/CRM? The reasons why travel worked/works on the Internet are obvious and have been well documented. The real underlying point is that it is CRM capabilities that have pushed the maturity of the Internet in the travel space. Also, the Internet has great flexibility, started off as an intellectual and then recreational tool, was available to the masses, and enhancements have come along at a rapid pace. Maybe branding was a new medium that pushed the internet…cheap, flexible, timely and instantaneous.

Change for change sake was never the driver in on-line travel. It was about distribution and most importantly, distribution at reduced costs. For other industries the Internet is a solution for branding, distribution, awareness building, competitive presence and customer service. However, for it to be an effective force in the enterprise some form of CRM needs to be part of the tool.

Today there are many CRM solutions other than stand alone and customized systems such s Siebel, PeopleSoft, J.D. Edwards, Oracle etc. Medium size sites should look into ASP (Application Service Providers) as alternatives to major systems. Bottom-line, any CRM solution that allows the company to manage their customer and business processes is important.