Information System and Management Strategy of Customer Relationship
Information System and Management Strategy of Customer Relationship Management
Zhong-hong Sun 1 The Computer Center, Lu Dong University,264025,Yantai sun_zhonghong@sina.com Abstract
This report explores CRM’ s implication on information, business strategy, as well as an issue which will influence successful implementation of CRM . Furthermore, this report analyzes factors which will barrier or promote information flow within organization. Through facilitating information flow across organization, CRM systems can assist organizations to have better understanding of customers, therefore to increase customer satisfaction, boost customer loyalty and maximize customer lifetime value through delivering tailored products and personalized services. Additionally, organizations can use customer knowledge to support business strategy’s implementation. However, in order to effectively manage the generation, dissemination and sharing of customer knowledge, which is very crucial in retaining competitive advantage of organization, organizations cannot solely depend on the technology components of CRM and should integrate CRM with knowledge management tools. Moreover, successful implementation of CRM systems requires change of organizational culture. example, in 2001, the failure rate of CRM projects was estimated to between 55 and 75 percent. (Kotorov, 2003). One of the major reasons which caused this failure was lack of understanding of what CRM initiatives entail (Goldenberg, 2000 cited in cited in Chen & Popovich 2003). These failing organizations believed that CRM was only a technological solution. However, like other information technology, the implementation of CRM will have many impacts on organizations and require many changes within organizations. In order to enable CRM’s successful implementation and achieve business objective, Organizations need to adopt the changes. Therefore, the aim of this report is to facilitate the comprehension of the CRM through using MIT
Zhong-hong Sun 1 The Computer Center, Lu Dong University,264025,Yantai sun_zhonghong@sina.com Abstract
This report explores CRM’ s implication on information, business strategy, as well as an issue which will influence successful implementation of CRM . Furthermore, this report analyzes factors which will barrier or promote information flow within organization. Through facilitating information flow across organization, CRM systems can assist organizations to have better understanding of customers, therefore to increase customer satisfaction, boost customer loyalty and maximize customer lifetime value through delivering tailored products and personalized services. Additionally, organizations can use customer knowledge to support business strategy’s implementation. However, in order to effectively manage the generation, dissemination and sharing of customer knowledge, which is very crucial in retaining competitive advantage of organization, organizations cannot solely depend on the technology components of CRM and should integrate CRM with knowledge management tools. Moreover, successful implementation of CRM systems requires change of organizational culture. example, in 2001, the failure rate of CRM projects was estimated to between 55 and 75 percent. (Kotorov, 2003). One of the major reasons which caused this failure was lack of understanding of what CRM initiatives entail (Goldenberg, 2000 cited in cited in Chen & Popovich 2003). These failing organizations believed that CRM was only a technological solution. However, like other information technology, the implementation of CRM will have many impacts on organizations and require many changes within organizations. In order to enable CRM’s successful implementation and achieve business objective, Organizations need to adopt the changes. Therefore, the aim of this report is to facilitate the comprehension of the CRM through using MIT