XRM is not a product; it is a strategic approach to building a unified system that connects all aspects of a business together.
XRM is the natural evolution of Customer Relationship Management (CRM).
Over a decade ago it started with a rolodex. Then someone decided to create a software version of a rolodex which led to contact managers and personal information managers. As people and companies began to see and feel the tremendous value that these tools were bringing, they wanted more. This incessant appetite to always want more, track more, do more, report on more, created the CRM industry which has been going strong for about a decade.
Software developers and business analysts commonly define XRM in one of two ways.
In the first definition, the “X” in XRM refers to extended relationship management, which represents the extension of CRM platforms far beyond customer relationship management. In the second definition, the “X” is an algebraic variable that can represent almost any relationship that a business needs to manage. In both definitions, expanding the functionality of the CRM platform is the key. An XRM solution can manage more than relationships with customers; it can manage suppliers, employees, partners, assets, knowledge bases, and just about anything else a company might wish to manage in a relational database.