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Press Release

SMARTCARDS IN UK WILL CHALLENGE CRM AND GOVERNMENT INITATIVES

Lancaster, May 21st 2002 — A new report by the Teleconomy Group and Logica plc has found that although the growing use of SmartCards gives Government and organisations the ability to store large quantities of information about a consumer, adoption of the medium is likely to meet with increased concern and ultimately rejection.

The report - How smart are we on SmartCards? — also reveals that current Government e-initiatives and CRM data consolidation contain a fundamental flaw, because they consider the citizen as a single recipient of services. Smartcard technologies fail to take account of consumer behaviours and attitudes and any attempted introduction of a national ID card for example, could well backfire on the commercial use of the technology, as well as trigger a civil liberties debate.

"Underlying consumer attitudes will render many, if not all, CRM programmes ineffective," commented Michael Hulme, chairman of the Teleconomy Group, "and the track record to date shows little return for massive CRM investment".

The research provides insight into the apparent willingness of consumers to reveal information about themselves in order to allow a transaction to go forward or to deliver a service. But consumers do not trust either branded organisations or Governments to hold a complete view. Similarly, CRM systems are justified by their capabilities to predict through previous behaviours and imputed attitudes. However, the research demonstrated that individuals compartmentalise their activities and are not inter-related.

The report is available from Teleconomy email enquiry@teleconomy.com and priced at £350.00 (hard copy and £495.00 (pdf or cdrom)

Clients seeking to improve the performance of their existing customer facing systems please contact Sandra Hunter at Logica on + 44 (0) 207 446 9111.

About Teleconomy Group plc

For further information please contact enquiry@teleconomy.com

Teleconomy Group Plc
Research House
Caton Road
Lancaster
LA1 3PE
Tel: 01524 382000

Teleconomy seek to understand and comment on organisational and consumer behaviours. Central to our approach is the understanding of evolving behaviours to inform future-oriented forecasting. Teleconomy employ a multi-disciplinary approach to our research, interpretations and consultancy. This approach combines insights and theory from academic fields including sociology, anthropology, psychology, management science, business research, literary theory and philosophy with empirical data collection/studies and practical understandings of the commercial issues and challenges facing organisations.

Teleconomy is a member company of the British Market Research Association, a founding member of the Call Centre Association Research Institute, and in conjunction with Lancaster University developed the Certificate in Management in the Call and Contact Centre Industry.

Logica plc and Logica Consulting

Logica Consultingis the management advisory arm of Logica plc. Logica (LOG.L) is a leading global solutions company providing management and IT consultancy, systems integration, products, services and support. Logica's clients operate across diverse markets including telecoms, financial services, energy and utilities, industry, distribution and transport and the public sector. The company has over 12,000 staff in 31 countries worldwide. Founded in 1969, Logica is listed on the London Stock Exchange where it is part of the FTSE100 index of the largest UK listed companies.

More information can be found at http://www.logica.com and

http://www.logicaconsulting.com

 

 
© Teleconomy Group Plc Research House Caton Road Lancaster LA1 3PE UK
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