Customer Resource Life Cycle Framework - Assignment Example

RESOURCE LIFE CYCLE FRAMEWORK By Location The Development Resource Life Cycle FrameworkEvery organization in the business sector wants to have a competitive advantage over other players in the same line of business. Information systems offer an organization a competitive advantage over others. The Customer Resource Life Cycle (CRLC) model came into being when a need arose for a more detailed model that could help find opportunities for successful application of Information System Technologies (IST). CRLC is used to explain the use of IST in a competitive strategy. The development of customer resource life cycle framework materialized as the other models were descriptive in nature. The CRLC model can help provide a more detailed way for categorizing IST strategic applications. It does this by focusing on the differentiation of a product from a firm, from the products of competitors based on customer service. The model can serve as a vehicle that identifies important opportunities for applying IST competitively (Ives & Learmonth 1984). There are a number reasons that led to the development of CRLC Model. CRLC model was developed due to the changes in the business environment. The business environment is ever changing; this means that an organization has to devise a framework that will give it an advantage over other organizations. Every business deal demands that there should be a good relationship between a firm and its customers. CRLC model helps to enhance this relationship. The model enhances this relationship by the application of IST (Ives & Learmonth 1984). Information technology gives an opportunity to invigorate customer service. With Information Technology, a firm can easily personalize services, enhance the service that goes with the products and ensure that they meet the customers’ needs. It will then transform the business practices of a firm to be robust and fulfil the desires of a demanding consumer population (Ives & Mason 1990). IT revitalizes customer service by sustaining the life situations that surround a customers experience with an organization and its products. Porters analysis failed to address IST. Thus, there arose need to identify a model that could address IST. Researchers had to come up with a customer resource life cycle that could address the existing loopholes. The CRLC model helps organizations link to their customer, hence better ways to offer services to customers (Porter 2001). The application of IST can provide an organization with an advantage. IST can help an organization become a low-cost producer of a service or product, may help to define and service a defined market niche. It can also differentiate a firm’s product offering from competitors. IST is geared towards giving firms an edge over competitors. Description of customer resource life cycle framework In modern days, many companies execute World Wide Web (WWW) in order for them to compete more successfully. The Customer Resource Life Cycle is a framework that explains how organizations can use information technology to implement WWW. Organizations expect their websites to assist customers obtain resources rather than to decide the requirements for resources. Customers use sites mainly for requirement’s determination rather than for acquisition. The web helps organizations compete in an approach that is largely expected. For customers to obtain products that are from their perspective, the customer needs to go through a resource life cycle. This framework is important for categorizing competitive information systems and also a tool for generating new applications. The following are the stages of CRLC: (Ives & Learmonth 1984) 1. Establish requirements: In this stage, there is an establishment for the resources to be acquired. It involves estimating future needs for the resource. 2. Specify: In this stage, the customer specifies the attributes of the required resource. 3. Select a source: the customer acquires an appropriate source for the resource that is required. Application of Information System Technology (IST) opportunities are in an intermediary organization that links customers with suppliers. It involves the matching of the client’s needs with appropriate suppliers. 4. Order: After selection of source, customers must place orders. Among the earliest IST support systems were reservation systems that helped in order taking. It has become an important strategic weapon for airlines. 5. Authorize and pay for: Before the acquisition of a resource, authority for expenses must be obtained, and payment arranged. 6. Acquire: Information Technology (IT) can provide different ways for customers to acquire products or resources directly or have them delivered quickly. Some of these ways include Automated Teller Machines (ATMs), new magazines that include Mentor, Dial-up networks, and INC telecommunications. 7. Test and accept: A third party or customer need to verify the accessibility of a new resource before using it. 8. Integrate into and manage inventory: Once a resource is acquired and accepted for use, it must be added to the existing inventory of resources and its uses managed. 9. Monitoring of usage and behavior: customers of a resource need to ensure that it is accepted while in the inventory. 10. Upgrade if needed: If requirement changes, it is necessary to upgrade resources. Upgrading of a resource ensures that it remains updated. 11. Maintain: Suppliers need to make repairs in order to keep resources in an operational condition that is good. This is a requirement of a transaction or good business practice. 12. Transfer or dispose of resources: Resources will eventually be transferred or disposed. It usually happens after some time; suppliers may not be involved in it. An exception may occur when resources are rented or returned to suppliers for any reason. 13. Account for: Customers need to monitor the money spent for resources. How to use customer resource life cycle framework An organizational service or product goes through a well-defined life cycle. A life cycle of a model goes through the following stages: Ascertaining the requirements of the product. Users of the product must be able to identify the requirements of the product. This helps one to know how to handle the product. Manufacturing or developing the product. This is an important stage of the framework. This is where the product is developed according to the needs of the organization. Managing products/services in inventory: an organization must be able to devise a way to manage the product. Normally, expert skill is acquired to manage the product. Termination of responsibility for organizational product: A given product is used for a particular purpose. When the product performs its task successfully, then the organization must bring it to an end. The CRLC is important for categorizing competitive information systems. The model is explained through examples that can demonstrate its descriptive power (Feurer & Chaharbaghi 1994). In connection with Porters work, CRLC model focuses on the relationship between the provider of services and goods and the customer. IST can assist in the implementation of the strategies, but they are useful for differentiation of a product based on service to customers (Porter 2000). In order to implement this framework, customers must be in the forefront to ensure its success. Many organizations in modern days use websites to give information concerning their services or products. CRLC help customers and organizations to communicate in an effective manner. Effective communication ensures that products purchased by customers are beneficial to them. With the fast changing technology, better models will be developed in the future. References Feurer, R. & Chaharbaghi, K 1994, Defining competitiveness: a holistic approach. Management decision, 32 (2), pp. 49-58 Ives, B & Learmonth, GP 1984, The information System as a competitive weapon. Reports and articles, 27 (12) Ives, B & Mason, RO 1990, Can information technology revitalize your customer Service? Academy of Management Executive, 4(4) Porter, ME 2001, Strategy and the Internet. Harvard Business Review. Read More