Advanced Information Systems Management - Essay Example

?ADVANCED INFORMATION SYSTEM MANAGEMENT Introduction Ku p. 1085) explains that advancement in information and communication technology has led to increased adoption and implementation of information systems within business organizations, institutions, public agencies, companies and small businesses. The implementation of information system is basically motivated by the efficiency and effectiveness which is provides in the management of data and information and the enhancement of communication processes (Khodakarami and Chan, 2011, p. 253). A Customer Relationship Management System (CRM) is a form of information system which involves the application of various hardware and software applications for effective management of information and data on clients or customers with a view of achieving the goals and objectives of the organization. This essay gives a critical analysis and discussion of the value that CRM systems within government owned organization in the UK public sector. The essay includes concepts of contemporary application of information systems in the public sector. More specifically the essay illustrates knowledge management through decision support and application of expert systems in data mining. Customer Relationship Management System (CRM) In accordance to Shanks, Jagielska and Jayaganesh (2009, p. 263), CRM is an information system based business strategy which is designed to help users to achieve an understanding the needs of customers. The CRM also helps in anticipating customer needs and applying technological application to manage them with a view of meeting the expectations of customers (Ku, 2010, p. 1087). The implementation or application of CRM involves processes of interaction among people, technology and business processes. Therefore it is through the adoption and application of CRM that effective integration of core processes of customer service, sales and marketing is achieved (Khodakarami and Chan, 2011, p. 256). It is apparent that CRM is a contemporary phenomenon which has been employed within the public sector. This technology is therefore replacing the orthodoxy and less efficient approaches which were employed by government organizations in delivery of services to the public (Wilson, Daniel and McDonald, 2002, p. 195). Figure 1: CRM Value of CRM within Government Organizations in the UK Stjepanovic (2010, p. 273) argues that the value of CRM to a government organization is basically the efficiency which characterizes the use of information system. For example the use of database management systems and application within a CRM framework leads to speedy retrieval and presentation of data and information to clients when they need it. Within a government organization, customer service involves retrieval and presentation of data to customers upon request. This information or data is often retrieved from government databases through the process of data mining (Wilson, Daniel and McDonald, 2002, p. 198). If for instance a customer requests for data on taxation, salaries or benefits, the government owned organizations are mandated to provide it immediately. Nonetheless, the efficiency of data mining and presentation data to the client or customer depends on the level of expertise, skills and knowledge that a government employee has (Stjepanovic, 2010, p. 276). The skills that are required include the use of various software applications within the CRM system such as Microsoft Word Excel and database management applications. Shanks, Jagielska and Jayaganesh (2009, p. 264) point out that CRM is valuable to a government organization because it reduces the costs that are associated with business activities or office processes. Within the UK and the EU in general, government organizations are increasingly competing for public funds or government funding. Because of this, many organizations require to reduce the costs of operations in order to achieve effective utilization of the resources available to them. Technology reduces costs of operation because of the electronic forms of communication and exchange of information and data (Khodakarami and Chan, 2011, p. 254). Electronic forms of communication are much cheaper as compared to the traditional paper based transactions which was also slower. This can be demonstrated by the retrieval of data from the government database and sending it directly to the customers who request for it via electronic mail. Additionally online communication is much cheaper as compared to the use of telephone services which are characterized by hefty bills. It is however to note that the initial acquisition and installation of CRM and the related hardware and software is very costly (Wilson, Daniel and McDonald, 2002, p. 196). Regardless of this, CRM is in the long run cost saving and hence valuable. Ku (2010, p. 1095) says that the adoption and implementation of CRM helps government organizations to increase or achieve the satisfaction of customers to their services. This is attributed to the fact that the application of data mining technologies and software in addition to decision support system allows employees within a government agency to provide customers which exactly what they require. Therefore, CRM allows government organizations to exceed the expectation of customers. Decision support systems for instance are knowledge based and as a result allow employees within government organizations to combine documents, data, knowledge and skills to identify, understand and solve the problems which are presented to them by clients (Shanks, Jagielska and Jayaganesh, 2009, p. 267). It is in this regard that the value of CRM to government organizations in meeting or exceeding the expectations of customers is evident. In return, government organizations which meet the expectations of customers are ranked among the best performing agencies which leads to benefits and more funding from the government. The use of decision support system in solving customer related problems would be complex and hence requires human expertise. This challenge can however be overcome through employee training and development. According to Stjepanovic (2010, p. 278), CRM is valuable to organizations because it allows them to maximize on the opportunities that are available to them. This includes increased services to their clients or customers. Technological tools such as simulations and artificial intelligent tools can be used to expand the services that are offered to customers. It is therefore reflective that CRM allows government organizations to provide variety of services which leads to their ability to meet unique and special needs of their customers (Khodakarami and Chan, 2011, p. 260). For instance expert systems can be used to enable machine customer interaction and as a result provide the needs of users in a unique and specialized way. More importantly interactive software applications designed for people with disabilities such as the blind can be used to aid service delivery. This includes talking machines which guide users to access various functionalities and retrieve data in the process of data mining even though the user would be blind. Other services such as referrals are achieved through the application of CRM systems. This involves the maximization of the computer resources within the organization by referring customers to be aided by interactive multimedia (Wilson, Daniel and McDonald, 2002, p. 195). Regardless of these benefits, it is necessary to consider that the implementation of socialized services within CRM systems is a very complex and time consuming process. Additionally, computer literacy skills of customers may not be sufficient to allow them to utilize interactive systems and application software. CRM facilitates the interaction of government organizations to the external environment. Stjepanovic (2010, p. 276) explains that the application of information within an organization facilitates and makes communication with suppliers and customers efficient. Government organizations within the UK use government funds to purchase various supplies which are critical for effective functioning of business activities. Through the connection of CRM systems with the online services, government agencies and organizations are able to interact with suppliers and vendors through their website (Ku, 2010, p. 1085). For instance, the process of tendering can be made effective and efficient through online submission of bids for the supply of equipment and other supplies to the organization. On the other hand, Wilson, Daniel and McDonald (2002, p. 201) argue that the use of information systems in communication via the internet exposes organizations to security issues. This is due to the fact that the internet exposes organizations to attackers or hackers and malware which would sabotage the functioning of the system. (Ku, 2010, p. 1086) adds that the security issue in the use of information systems within CRM must be managed well because the privacy and confidentiality of customer data could be exposed to unintended persons through unauthorized access to the system by talented hackers through loopholes in the system. Nonetheless, this problem can be overcome through the design and implementation of a security policy. This would lead to the installation of preventive measures against unauthorized entry into the system. These measures include cryptography, encryption and use of authentication passwords, biometrics and firewalls. Government organizations are characterized by large volumes of data and information that are kept within their disposal. This includes data on demographics of a specific area, municipality or population. This demonstrates the value of CRM to these organizations. This is related to the use of knowledge management systems to increase the efficiency of processing data and presenting it in the most understandable manner. This is demonstrated by the analysis of census data within government organizations which is facilitated by knowledge management systems within CRM implementation. Knowledge management systems interact with decision support systems to employ knowledge and data in solving problems regardless of the volumes of data involved. This would be impractical in manual processing of data and also very slow. It is in the light of this observation that the value of CRM to organizations within the public sector cannot be underestimated. Regardless of these advantages which reflect the value of CRM, it is argued that the usability of the various applications and subsystems within CRM is very low especially in the public sector (Khodakarami and Chan, 2011, p. 253). It is therefore noted that government organizations have not utilized fully the values and benefits of CRM in enhancing service delivery. Figure 2: Applications of CRM According to Stjepanovic (2010, p. 280), organizational control, management or leadership is enhanced through the adoption and implementation of CRM system. This includes the application of management support systems which enhance the level at which the performance of employees is monitored. As a result, the leadership of government organizations is able to ensure that customer services are offered effectively, ethically and in adherence to the standards and objectives of the organization (Ku, 2010, p. 1089). In addition, the value of CRM within organizations is demonstrated by the control that is achieved through proper and effective management of customer complaints. For instance decision support systems can be used to analyze problems and as a result determine the responsibility of employees in these problems. This guides the management or leadership of an organization to make informed decisions such as termination of employment or rewarding exemplary employees (Wilson, Daniel and McDonald, 2002, p. 210). However, the management may misuse information systems within an organization to infringe the privacy rights of employees during the monitoring and control processes (Shanks, Jagielska and Jayaganesh, 2009, p. 269). Nevertheless, the automation of managerial and leadership processes is generally valuable to organizations. Wilson, Daniel and McDonald (2002, p. 197) disclose that CRM systems within government organizations can be used to add value into the training process and employee development. This is demonstrated by the application of information system capabilities such as software to design and present training multimedia such as demonstration videos and animations to develop the skills and knowledge of employees (Ku, 2010, p. 1085). CRM facilitated training will in turn lead to effectiveness and quality in provision of customer care services and meeting the expectations of clients. More importantly, technology within information systems such as online tutorials can be used to train employees so that their skills and knowledge on the job are widened. Through the training process, employees are allowed to adjust to and adapt to the changes in the business environment (Khodakarami and Chan, 2011, p. 258). Furthermore, employees would be rained on presentation of data through the use of computer applications and educational software that is specifically designed to meet the training needs within the organization. It is therefore recommended for government organizations to invest more on training programs that are facilitated by technology and the use of information systems. CRM is valuable to government organizations and agencies within the public sector because they motivate employees through a desirable working conditions and the efficiency which is enabled through the use of information systems. Stjepanovic (2010, p. 276) explains that information systems ease work activities which motivate employees to be more productive, focused and creative. In addition, a motivated work force and the implementation of an information system within work activities leads to a positive image about the organization. The quality and efficiency of a motivated work force is the adjunct to an enhanced organizational image. It is however important for managers to consider the importance of matching the implemented technology with the culture of the organization. This is because lack of cultural congruence with the implemented technology would lead to negative implications on the motivation of employees in their work activities (Ku, 2010, p. 1101). It is therefore recommended for managers within government organizations to motivate the change of attitudes among employees towards the implemented CRM systems so that they would accept them and encouragingly employ them to achieve high performance. This will as a result allow the organization to meet its goals and objectives with efficiency and effectiveness. Examples of Valuable CRM Applications Examples of information systems and CRM applications include personalized services such as multimedia messages, emails, online chat sessions, phone calls and interactive feedbacks on the website of the organization (Wilson, Daniel and McDonald, 2002, p. 195). These examples demonstrate the value of CRM for organizations both in the public and private sectors. For instance, database management system and data mining applications can be used to access and retrieve customer data such as contacts from the organizational databases and use it to alert them of various issues, news and services (Shanks, Jagielska and Jayaganesh, 2009, p. 263). The ethics of information use within organizations must be adhered to especially in preservation of the confidentiality of client private information and data. This means that the process of data mining and knowledge management should not lead to misuse of client data for unintended purpose without permission. Internal and external social media are other examples of CRM and information system applications within organizations. Internal social media such as bulletin boards have facilitates communication within organizations. Additionally, information systems that are linked to the internet are used to access external social networking sites through which organization market their services or products. Figure 3: Levels and phases of CRM (Khodakarami and Chan, 2011) Conclusion In the light of the above analysis, discussion and illustrations, it is evident that CRM systems are greatly valuable to organizations especially within the public sector. CRM is an information system based business strategy which is designed to help users to achieve an understanding the needs of customers. The value of CRM to a government organization is basically the efficiency which characterizes the use of information system. Additionally, CRM is valuable to a government organization because it reduces the costs that are associated with business activities or office processes. Moreover the adoption and implementation of CRM helps government organizations to increase or achieve the satisfaction of customers to their services. More importantly, CRM is valuable to organizations because it allows them to maximize on the opportunities that are available to them. Furthermore CRM facilitates the interaction of government organizations to the external environment. Organizational control, management or leadership is also enhanced through the adoption and implementation of CRM system. It is further notable that CRM systems within government organizations are used to add value into the training process and employee development. Regardless of these benefits, there are security, privacy and implementation issues which challenge the use of CRM and information systems within public organizations. References Khodakarami, F and Chan, Y 2011, 'Evaluating the Success of Customer Relationship Management (CRM) Systems', Proceedings of the European Conference on Information Management and Evaluation, pp. 253-262 Ku, ES 2010, 'The impact of customer relationship management through implementation of information systems', Total Quality Management and Business Excellence, 21, 11, pp. 1085-1102 Shanks, G, Jagielska, I, and Jayaganesh, M 2009, 'A Framework for Understanding Customer Relationship Management Systems Benefits', Communications of AIS, 2009, 25, pp. 263-287 Stjepanovic, Z 2010, 'Expert Systems and Their Influence on Customer Relationship Management. (English)', Zbornik Radova Ekonomskog Fakulteta U Istocnom Sarajevu, pp. 273-292 Wilson, H, Daniel, E, and McDonald, M 2002, 'Factors for Success in Customer Relationship Management (CRM) Systems', Journal of Marketing Management, 18, 1/2, pp. 193-219 Read More