Egomaniac execs and shoddy tech hampering UK business

British businesses, take note - you're getting an F when it comes to managing your customers. A survey of UK firms has found bosses' secretive attitudes and mishandling of customer data are leading to companies missing out on vital new business.

Technological Ludditism coupled with egotistical management seems to be the main thorn in the side of business, according to new research from BT.

The survey, which questioned business development and marketing managers, found that 'share and share alike' wasn't an axiom by which they set much store.

Enthusiasm for introducing electronic databases or CRM applications exists - 58 per cent of those questioned think such technology is the best way to record and store customers' details - but when it comes to putting the theory into practice, it's a different story.

Less than half the companies questioned have a system that lets them find contacts' details with ease, and nearly two-thirds have no idea about a client's history of business with the company.

Although a general technological ignorance might be easily explained, if not forgiven, it seems some bosses are taking the wheel off intentionally. The survey found that head honchos are all too content to store essential customer information in a non-networked way, such as on their mobiles or PDAs or even - no really - with paper and pen. Those that are handheld-happy accounted for 29 per cent of respondents, while those getting old skool with paper systems made up 12 per cent.

Paul White, head of CRM at BT Major Business, told silicon.com: "CRM solutions have had a bad name in the past in many respects - people have been put off traditional applications by the complexity, the cost overrun and the question of 'is there any ROI?'"

While the associated costs and 'IT headaches' have been easier to bear for larger companies, SMEs have not fared so well, with CRM being "prohibitively expensive" for small or medium-sized companies, White said. Indeed, a recent study by IDC showed that the average initial investment for companies in a CRM suite is $426,000. Which is why, White said, the future of CRM is on-demand, giving "the little guys the same tools as the big guys".

A move towards on-demand is hardly surprising. "With on-demand you get immediate ROI. You can buy five or 10 seats of it; if you don't like it, you can turn it off the next month."

While a cautiousness about implementing new technology or a disinclination to use it often goes hand in hand with the top job - think Bill Clinton and his two emails in eight years in the White House - that doesn't seem to be the motivation here.

Around 29 per cent of execs questioned didn't like the idea of sharing such information with their underlings, and half of the companies had witnessed a situation where an employee had left and taken a bulging list of contacts with them.