High-tech associates (B) : accept the CRM challenge?

Abstract

In late 1998, Singapore-based High-Tech Associates Pte. Ltd. (High-Tech) embraced the e-business challenge by developing a new stream of services designed to satisfy two key client groups: upstart 'dot coms' promising to offer new and innovative ways of doing business and 'old economy' companies interested in using the Internet to achieve greater cost and business process efficiencies. Over the next 15 months, the marketing consultancy enjoyed strong demand for these services as Internet usage and penetration continued to skyrocket.

However, beginning in March 2000, investor sentiment towards Internet ventures turned sharply downward as serious doubts set in concerning the long-term viability of many related initiatives. Consequently, many public companies lost a great deal of their market value, while many IPO aspirants who failed to make it to the public markets in time scaled back their operations significantly or went bankrupt.

In the ensuing 18 months, global economic activity began to slow. This slowdown was exacerbated by terrorist attacks carried out in New York City and Washington D.C. on September 11, 2001, which sent shock waves around the world. Singapore was particularly hard hit by the global downturn because so much of its economy was export-dependent. This left companies like High-Tech scrambling to find new revenue streams to support their operations. By December 2001, Sarah Fraser, now High-Tech's sole director, claimed that a "general malaise" had set in Singapore's business scene. This prompted her to consider developing a completely new service line - Customer Relationship Management consulting and project implementation. The question that now needed to be answered was whether or not this was a viable growth opportunity for High-Tech. Period covered 1998 – 2002