Is PRM the new CRM?

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?