E-Business Models and Customer Relationship Management - Essay Example

?E-commerce By Question No E-Business Models The business model is basically an operational depiction which comprises the broad information regarding the functions of a company. A model is actually an idea to generate money. The elements which are controlled inside a business model will tackle the overall tasks of a company, counting such aspects like the expenditures, profits, working policies, business formation, and trade and advertising techniques. In other words, something that has to perform with the daily operational capabilities of the company can be supposed to be element of the business model (Tatum, 2011). For this report, I have selected four business models which will be discussed below: Online Portal The first business model that I have chosen is online portal. An online portal is built to take advantage of an online publicity platform. With the intention to perform that, the majority thriving portals support website registered and unregistered users in a different way. Hence portal contribution to websites produces importance from both the customer’s perspective and the supporters. In this scenario, customers disburse not through cash (entire web-site material is open) however through details and the time. Additionally, they spend their precious time visiting website pages, electronic mails and RSS feeds, therefore generating publicity record which could be utilized to trade the contributor’s business products (inside publicity) and/or advertised to 3rd party (business outside publicity) on the basis of a CPM (cost per minute), CPC (cost per click) or CPA (cost per action) mechanism. For instance, a well-known web portal Yahoo.com is one of the huge web surfing and information gateways. The web site material/content is organized from external supplies however identified with the Yahoo! title (e.g., Yahoo! Cars, Yahoo! Shows, Yahoo! Horoscopes, and Yahoo! Tourism. Moreover, these web portals derive profits from publicity and finances (Zarem, 2011). Auction sites The second model that I have chosen is about Auction sites. In this scenario, Ebay is a well-known Auction site. These auctions sites use many-to-many business model for generating profits. In addition, Elance is an additional high-quality instance of a flourishing many-to-many business model. It connects freelancers with their users/clients. In this way, both providers (freelancers) and clients communicate over a web technology based group of people (Starak, 2011). Moreover, it seems that more than 100,000 persons at the moment perform eBay businesses activities to earn a good share. Ebay posted an ad to offer a course to study how to establish an eBay business proficiently. Thus, that advertisement is attracting additional sellers and additional purchasers to eBay business. It is open TV publicity for eBay business performance (Starak, 2011). Dynamic Pricing Model A dynamic pricing business model engages changeable costs of business products or services on the basis of identifiers for instance flavor, accessibility and manufacturing costs. Additionally, this model was established by a famous airline company and it is currently utilized by more productions, comprising selling stores, as per stated by Virginia Commonwealth University. In addition, dynamic pricing model facilitates traders to adapt their advertising or records to their users, possibly making it hard ever as compared to a fixed-price model. So providing what users/consumers need at a particular cost they are prepared to disburse at that explicit time lessens consumption of business resources as well as, consequently, some sort of overhead (Fraser, 2011). B2B Exchange With the appearance of the web based technology like internet as an innovative technique of performing business activities and operations arrive an overflow of capitalists with massive useful thoughts for the upcoming period. A lot of these capitalists determined to spend inside the plan of the B2B sharing. Fundamentally, these distributions were only the web-sites somewhere plenty of companies appeared jointly to purchase from and trade with more individuals. The essential plan was that the B2B Exchange would present an easier way for these businesses to locate the business services or products they required, to full communication, as well as to keep cash via the other rivalry or large amount of business products being traded or purchased from other sources. In addition, the B2B Exchange scheme was extremely sizzling that during the year 2001 there were over 1500 of these web-sites over the web based technology. However, within only two years that volume crashed to slighter than a number of hundreds. Consequently of the unexpected turn down, a lot of persons were missing to speculate what’s wrong was happened (Epiq Technologies, Inc., 2011). Moreover, the B2B Exchange model is considered to be a ready effect in a number of diverse models, every with its personal profits stream. These comprise: (PAWAS, 2011) Relationship or Contribution: permanent yearly bill or handling contribution base. Percentage of Operation: distribution of operation based on pre-approved business model. Recommendation charges: percentage based on decided bill basis. Sale: based on sale regulations intended for purchasers and traders of business products inside the substitute. Attainment of business services/products: on the basis of business rules established earlier than incoming and contributing inside the exchange. Suggestion to improve e-commerce activity There exist a number of reasonably easy tasks we are able to perform in an attempt to enhance the functions of ecommerce website to augment sales with no impact on our costs. Below is a list of several recommendations we are able to devise to augment sales without minimizing our business product’s costs. Some of the recommendations comprise: (Rich Page , 2008) Businesses need to decrease the extent and complication of their business products using the web based technology Companies need to offer the customers an actual cause to purchase their products Companies have to present associated products throughout surf and depart Businesses need to enhance surf and explore outcomes of business products Businesses need to present an active messaging service while business products surfing and selection Question # 2 Report on CRM Executive Summary CRM (customer relationship management) is considered to be an information business expression for methods, application programs, and typically web based potentials that assist corporations manage customer relationships within a planned manner. Such as, a company is able to develop a database regarding its clients that defines associations inside adequate factors for administration, sales-individuals, and persons offering services (Williams, 2006). This report presents an overview of customer relationship management systems. This report will analyze the implementation of CRM at Kensington College of Business. This report will analyze the benefits and characteristics of CRM systems for Kensington College of Business. Customer relationship management Customer relationship management for the businesses can be perceived as a corporate based business plan built to lessen expenses and augment productivity by congealing client devotion. Correct CRM conveys mutually information as of the entire data sources inside a business to provide distinct, holistic outlook of every client in synchronized manner. This facilitates consumers countenancing workers within such domains like trade, client help and support, and promotion to build swift yet conversant decisions from cross-selling and up-selling prospects to focus on promotion policies to challenging plans (CRM Media, 2010; Ward, 2010; Turban et al., 2005). Features and characteristics of CRM There exist 2 vital features which enable a good CRM arrangement. First feature is the system on its own. It has to be built for the company to run their projects. In this scenario, the prime characteristic among CRM systems is that the mainstream is built for businesses those trade valuable products based on the business framework. Additionally, the minor is planned for businesses that do not trade goods, however they sell their workers time and expertise for project based companies. The point is imperative that we decide a system which is planned for our activity based company. It will typically be extremely accessible plus let us to implement our actions, make suggestions along with service estimations in a resourceful way. Secondly, the description of a high-quality CRM structure will vary from business to business. This overall framework is reliant on how we desire to make use of the business system. In this scenario, a high-quality system will be an easy to use system which offers us the data and information we generally require (Verlinden, 2010; Vetter, 2009). Important characteristics of CRM for Kensington College of Business CRM system at Kensington College of Business will involve following characteristics: (SiteGround.com Inc, 2011) 1. Initially it will discover and state every communication with a student or faculty member, telling the students’ awareness or requirements. It will as well state the varying requirements of the students as well as the manner Kensington College of Business manage issues efficiently. 2. Additionally, the CRM will be a worldwide tool for gathering educational data regarding the students’ requirements, information and resources access, approval and invoices. 3. Inside the 3rd feature, the CRM will be capable to determine the college’s performance based on inner targets. 4. Finally the CRM will assist the operational procedures by stressing on the optimistic and prohibit the pessimistic performance within our students’ care center. Hence it is observed that CRM systems will offer the Kensington College of Business the useful contrivances to capitalize on their communications with students and faculty members. In addition, CRM will incorporate and coordinate their information, advertising, customer support service and college overview to attain better students’ associations and increased effectiveness (eHow, 2011). Components of CRM for Kensington College of Business Software The computer technology based software presented to the companies intended for CRM is developed in 2 essential varieties: incorporated contact administration software which is setup over the site, as well as web technology based CRM systems. Moreover, web technology based systems are frequently known as the innovative cloud computing systems implemented widely at the moment. In this scenario, cloud computing systems are turning into additional smart like a CRM alternative. In addition, these systems are payment based, in order that companies which are utilizing them don't need to buy and retain costly computer programs. Moreover, these systems are simply utilized by business employees by means of a laptop or PC (eHow, 2011). Sales Automation golden sales image by Alessia from Fotolia.com There are some scenarios when our sales employees do much more than selling business products. On a daily basis they are out-meeting business customers and collecting information. In this scenario, prior to the preamble of computerized sales computer software based systems, this implied moving plenty and placing a lot on document. Additionally, through CRM sales employees are able to communicate with fewer customers and data might take an extensive time to retrieve to the domestic workplace. In addition, sales employees at the moment utilize laptop computers and latest PDAs, video conferencing technology and electronic channels to cooperate with customers and future customers. In this scenario details about every sale, every client, now retrieved to the home workplace within few minutes instead of extensive period even days. Accordingly by implementing computerized CRM, the sales employees are more successful, and the information desired to act useful promotion and customer support service exceed is gathered within a sensible way. Therefore, the consequence is elevated efficiency and earnings (eHow, 2011). Marketing Automated CRM systems permit marketing efforts to be synchronized and integrated. Additionally, instant email, direct mail, direct mail and print campaigns are tracked in real time and the results analyzed will allow better allocation of advertising dollars to produce more effective marketing. In addition, the automated system integrates marketing with sales, operations and customer service to improve operation of your business. Moreover, through CRM products get to the customers more quickly, customer service issues are dealt with promptly and profits go up (eHow, 2011). People Another imperative component in facilitating CRM effort for our company is our employees. In this scenario, to be efficient, we must produce a shared environment inside our company. Additionally, implement IT contrivances to overpass the breaks among the trade, selling and business sections. In this scenario, a high-quality case of this can be that a consumer service agent perceives a concern that, through a few less alterations, is able to actually enhance one of our business products. Moreover, organizations utilize CRM to change an issue into earnings (eHow, 2011). Benefits of CRM for Kensington College of Business A correctly applied CRM system is able to carry considerable advantages to organizations. However the moment we consider to implement a system, we typically indicate the 3 P's, the absolute group of persons (workers, background), actions (method of conducting the business) and diverse programs (corroborating functions), not only a computer program executing over a PC. Moreover, the businesses perceive benefits that a Customer Relationship Management system is able to introduce comprising: (CustomerServicePoint, 2009). 1. Distributes or collective data Since businesses understand that associations with clients are occurrence on a lot of points (not only with client support service or a web existence), they initiate to appreciate need for distributing the entire accessible data and information all through the company. Moreover, a CRM system is also facilitator for formulating up to date decisions and summarize, over the entire diverse levels (CustomerServicePoint, 2009). 2. Decrease in Expenses A bold idea in CRM is that it facilitates the customer or an associate within our company, not only it deals with an issue. Since clients are performing their personal order entrance mechanism, and are authorized to discover the statistics they require acquiring such as judgment, small fraction of order entry procedure and customer service support employees are required as well (CustomerServicePoint, 2009). 3. Enhanced Customer Service All the business data regarding communication with clients is centralized. Therefore the section of customer support service is able to get advantage from this, since they comprise the entire details they required instantly. Furthermore, with the implementation of push-technology, department of customer support service agents is able to guide the client to the details they demand. In addition to many occasions, the customer is able to perform this by himself/herself, since the CRM system (keep in mind, the 3 P's) is increasingly capable to expect the necessity of the business clients. In this scenario business can experience that customer knowledge is really improved (CustomerServicePoint, 2009). 4. Augmented Customer Contentment In this competitive environment a business customer thinks that he/she is further "fraction of the employees" rather than only an issue for sales and advertising (the recognizable figure), customer support service is enhanced, his/her requirements are estimated. In addition, there exists no hesitation that customer contentment will definitely mount. So when the business products traded surpasses the customer’s anticipation, certainly, no CRM system is able to assist us with sloppy business products and services. We should perceive that just pleased customers have a huge altitude of allegiance (CustomerServicePoint, 2009). 5. Enhanced Customer Preservation When a CRM system is able to facilitate to captivate clients, this will augment customer allegiance, as well as they will stay replying to purchase many times, hence business customer withholding or preservation is definitely augmented (CustomerServicePoint, 2009). 6. More repetitive processes More customers are approaching from the pleased customers, who are averted hesitant customers into devoted supporters (CustomerServicePoint, 2009). 7. An Additional Innovative Business When we are offering a decisive customer care, then this aspect will start the rumor buzzing that has the power to generate additional income with innovative capabilities (CustomerServicePoint, 2009). 8. Additional Earnings Business at fewer expenses definitely earns more revenue for the company (CustomerServicePoint, 2009). Case Application: Kensington College of Business At Kensington College of Business we will implement the SAP based customer relationship management systems that will offer a great deal of support and facilities through automated management of Kensington College’s operations. This system will be able to manage the students’ compliments and demands in a much better way. The business arrangement will offer a great deal of better and enhanced support for the effective management of college operations. This system will be helpful for the following operations: Student’s complaints management Marketing support Automated responding system Easy management of new reports publishing Better support to corporate operations Fast response at all operations Quick tasks reporting Quick processing of tasks Easy job processing Less human resource required However, in order to implement this system we will require establishing separate department that will manage and process the overall operations and tasks of the college. This department will encompass the technical staff and operational management personnel who will manage the overall operations in a great deal better way. This also offers superior support for possible operations and tasks. Moreover, some of the main technical aspects those are involved in management of operations and tasks are about the better management of this implementation process. In this scenario we will customize the SAP system for Kensington College’s main needs and requirements. This will involve the customization of overall operations and tasks of the Kensington College’s new CRM systems that can handle and manage the possible students’ operations. Furthermore, for the new CRM system we will implement a constant system updating system that will manage the updates in overall business operations. This new system will manage and process corporate processes and tasks with a great deal better technology based framework. In this way the Kensington College of business will be able to improve the overall performance of staff and students tasks’ management and its performance will be improved. Conclusion CRM (customer relationship management) is considered to be an information business expression for methods, application programs, and typically web based potentials that assist corporations manage customer relationships within a planned manner. Such as, a company is able to develop a database regarding its clients that defines associations inside adequate factors for administration, sales-individuals, and persons offering services. This report has presented the implementation of CRM system for Kensington College for Business. For this implementation we have chosen SAP’s customer relationship management systems. This report has shown how a CRM system can help the organizations to manage relationship with the customers. Bibliography CRM Media, 2010. What Is CRM? [Online] Available at: http://www.destinationcrm.com/Articles/CRM-News/Daily-News/What-Is-CRM-46033.aspx [Accessed 23 May 2011]. CustomerServicePoint, 2009. Benefits of a CRM system. [Online] Available at: http://www.customerservicepoint.com/crm-system.html [Accessed 25 May 2011]. eHow, 2011. What Are the Components of CRM? [Online] Available at: http://www.ehow.com/list_6304621_components-crm_.html [Accessed 26 May 2011]. Epiq Technologies, Inc., 2011. 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[Online] Available at: http://rich-page.com/website-optimization/7-ways-to-improve-ecommerce-sites-and-sell-like-its-black-friday-everyday-without-reducing-your-prices/ [Accessed 19 May 2011]. SiteGround.com Inc, 2011. Customer Relationship Management. [Online] Available at: http://www.siteground.com/crm.htm [Accessed 23 May 2011]. Starak, Y., 2011. eBay and the advantages of a many-to-many business model. [Online] Available at: http://www.entrepreneurs-journey.com/64/ebay-and-the-advantages-of-a-many-to-many-business-model/ [Accessed 24 May 2011]. Tatum, M., 2011. What is a Business Model?. [Online] Available at: http://www.wisegeek.com/what-is-a-business-model.htm [Accessed 26 May 2011]. Trombly, R., 2000. E-Business Models. [Online] Available at: http://www.computerworld.com/s/article/54589/E_Business_Models [Accessed 24 May 2011]. Turban, E., Leidner, D., McLean, E. & Wetherbe, J., 2005. Information Technology for Management: Transforming Organizations in the Digital Economy. New York: Wiley. Verlinden, C., 2010. Characteristics Of A Good CRM System. [Online] Available at: http://blog.kpi-insight.com/PSA-Software-Introduction/bid/37969/Characteristics-Of-A-Good-CRM-System [Accessed 24 May 2011]. Vetter, R., 2009. CRM Characteristics for the Midmarket. [Online] Available at: http://www.destinationcrm.com/Articles/Web-Exclusives/Viewpoints/CRM-Characteristics-for-the-Midmarket-53866.aspx [Accessed 25 May 2011]. Ward, S., 2010. CRM (Customer Relationship Management ). [Online] Available at: http://sbinfocanada.about.com/cs/marketing/g/crm.htm [Accessed 23 May 2011]. Weill, P. et al., 2005. Do Some Business Models Perform Better than Others? A Study of the 1000 Largest US Firms. [Online] Available at: http://ccs.mit.edu/papers/pdf/wp226.pdf [Accessed 23 May 2011]. Williams, E., 2006. CRM (customer relationship management). [Online] Available at: http://searchcrm.techtarget.com/definition/CRM [Accessed 22 May 2011]. Zarem, J., 2011. The Portal Subscription Website Business Model. [Online] Available at: http://www.mequoda.com/articles/subscription_websites/the-portal-subscription-website-business-model/ [Accessed 23 May 2011]. Read More

 

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