Who needs CRM?

Picture this scenario :-

Adam Baxter has setup a bakery shop. He is the only guy manning it.
He specializes in making bread.

He has started getting customers in his neighbourhood who come regularly and buy from his shop. Adam knows them all by face, after all it is a small neighbourhood.

News of Adam's Special Bread spreads and enquiries start pouring in. Adam diligently starts taking notes in his small paper-notebook. He has attended a few seminars and has taken notes too. He has also met some potential investors who would like to fund him to so that he can expand his business. He was asked to make some business plans and come and discuss with them sometime in the coming month.

Suddenly one day, his notebook is missing and he does not know what to do. In the midst of the panic, a  potential customer - now what was his name - is on the phone enquiring about the delivery that he had commited to for the coming day. And that is not all, there is also some big expansion plans that he had noted down in the notebook to discuss with the potential investors- now what were their names, they were 6 of them. All are lost. Where is the damn notebook???!!!

Also he has been invited to speak at a function to share his knowledge. Hell, this is a good platform to reach out to more potential customers! Oh God! Where is the notebook now!!!

Adam needs CRM.

The above is probably an oversimplification but typically CRM is needed where one needs to have a proper control on business. CRM is a value add.
CRM cannot replace your business, it boosts your business effectivity. You get more thing done with much less effort, thereby directing your effort in what needs your attention.
This does not mean they are a record-keeping replacement. CRM systems help you add intelligence into the system by providing workflows and certain system-generated rules which provide a sense of direction and purpose to your business.
These help streamline business and improve overall efficiency.
CRM systems can generate reports and show where your business stands as on a particular instant visually through Dashboards and Charts.
A 360' view of the market is always readily available putting the businessman in a better position to do business.

Let us build on this example. I welcome you all to add your own variation of example and answers to this.