Strategic Information System - Assignment Example

STRATEGIC INFORMATION SYSTEM goes here] [Your goes here] [Due the paper] Answer: A Relationship Management Before discussing the role of customer relationship management software in organizations, let us get a better understanding of what customer relationship management actually is. As Ueno (2006) states, “Customer relationship management (CRM) is a management strategy that unites information technology with marketing”. Managers of all small and large organizations give importance to effective customer relationship management because it is the key to customer retention. To nurture the stability of a company in today’s global market, managers need to respond efficiently to the changes in the scope of CRM that have occurred in the last couple of decades. It is such a business marketing system that has modernized the way companies introduce their products in market and sell them to the customers (Kokemuller n.d.). 2. Customer Relationship Management Software Customer relationship management software is a vital part of every organization because of offers a number of considerable benefits, such as, integrated customer data, maximized customer satisfaction due to personalized services, automated sales and marketing tasks, improved customer interaction, streamlines business processes, instant access to business information, well-managed /employees/vendors/business partners relationships, and improved collaboration of business processes. As Rossell (2011) states, “the customer relationship management process also tracks customer behaviors so that you can clearly identify and act on customer motivation that is unique to your client base”. These benefits help companies in improving overall customer experience which in turn results in improving the level of customer satisfaction with the company. 3. Efficient Usage of CRM Software Customer relationship management software provides many benefits to organizations if managed efficiently. For example, raw data can be put into a well-organized system using the CRM software in order to turn it into cohesive intelligence which can be further analyzed for forecasting trends and revenue of the firm, making key management decisions, finding growth opportunities for the business, and justifying marketing expenditures based on the analysis (Boyle 2009). Ease of use is one of the main elements of any CRM software. As the end users have different backgrounds, ages, and technological skills and abilities, the CRM software need to be user-friendly in order to be able to incorporate the needs of all users regardless of their skill-based differences. However, it should be flexible enough so that the company can customize it according to the long-range plans (Boyle 2009). Moreover, it should also be able to synchronize with the already stored information in the computer system. The more the CRM software will be easy to use for the employees; more will be the resulting benefits for the company. Therefore, companies should design such software which should be able to incorporate the needs of employees along with improving the overall customer service. Another main usage of CRM software in organizations is that it is able to track future prospects, existing clients, and referral sources along with making the stored information available to all users of the system with appropriate security safeguards (Boyle 2009). CRM software also serves more purposes than an electronic address book. An address book just keeps addresses, whereas CRM software not only stores detailed customer information but also helps managers in taking correct business decisions based on analysis. For example, some CRM packages, such as ContactEase is able to track countless details which helps companies in increasing the revenue and business while reducing the amount of time companies spend on launching marketing campaigns. An efficient CRM software also proves to be the central point for promoting the intelligence-based relationship between all users of the system (Boyle 2009). Obtaining new clients and increasing business through current clients are the two goals to accomplish while using CRM software to improve a firm’s productivity. The first step in this regard is to know the present customer base of the firm, the need and demands of the customers, and the ways the firm can improve the level of customer satisfaction. To do this, companies need to improve their customer service because customer service always has a direct impact on customer satisfaction. “Once input is complete, the firm can evaluate the type and volume of work done for any given client—a snapshot of current and prior work” (Boyle 2009). Managers of the firm can use the acquired information to determine the available options related to the provision of additional customer services. CRM software also helps companies in doing targeted marketing. Collecting data and information about customers from customer profiles and transactions, the marketing department of a company becomes able to locate the target market, introduce new products and services, rank potential and existing customers in accordance with the lifetime expected value, and tailor the marketing campaign accordingly. A well-designed CRM software is also able to track personal information of customer, such as, their hobbies and interest. This information is very useful in customizing the newly manufactured products in accordance with the needs of the customers. Similarly, the software also helps in keeping track of special occasions of clients, such as, their birthdays and anniversaries. Companies can send messages to their clients on such special occasions which can play a vital role in making the clients feel valued and recognized. CRM software does this job for companies by keeping track of all details of the customers. For example, when a person receives a message of best wishes for the birthday occasion from a company from where he/she purchased some products, it will build a relationship between that person and the company which will be very fruitful for the company in future. Similarly, companies can send holiday cards and surveys to the customers based on the tracking the CRM software performs. The software maintains complete database of the customers of the company to interact with whenever required. For example, a company can send direct emails to the customers regarding any marketing event. Direct marketing plays a critical role in the success of a marketing campaign because it makes customers feel valued when a company sends personalized emails to its customers. Another benefit of using CRM software in organizations is that it can provide complete and accurate background information about clients and employees which helps companies in facilitating account-staff turnovers, as well as other transitions. Similarly, CRM software helps the marketing department of companies in tracking metrics on all aspects of the target market. Companies can define entire marketing strategies through the metrics tracked by the CRM software. For example, CRM can perform analysis of the target population’s geographical location to pinpoint the areas to pursue the marketing campaign. Increased revenue and profitability is another benefit that companies gain through the implementation of CRM software. The software helps in increasing the revenue of a company by improving the level of customer satisfaction. When customers will be satisfied with the company because of improved customer service, they will become regular customer of the company and will also bring more customers with them which will not only expand the customer base but also will increase the company’s revenue as a result. CRM software reduces marketing and customer management costs for a company while increasing the level of revenue. “CRM is viewed primarily as a revenue enhancer, but cost savings are also factored into marketing and other areas” (Kokemuller n.d.). One of the main points of considerations regarding CRM software is that it attempts to improve the overall customer experience, which results in increasing the long-term profits per customer, as well as customer loyalty. CRM software also leads to improved organizational effectiveness, business efficiency, and reliability of information when sending out tax alerts, newsletters, and other mailings (Boyle 2009). When using direct marketing technique to create awareness among customer, CRM software can pile up and track the stored email addresses in an efficient manner which not only saves precious time but also creates customer value. In traditional settings, it takes weeks to prepare mailing list because concerned staff has to do it without any electronic assistance. Tracking email addresses and mailing lists through the use of CRM software provides a firm with much needed competitive intelligence, as well as provides the right direction towards future marketing efforts. CRM software also tracks the information about new business opportunities that occur through referrals. Tracking of businesses helps companies know the affiliation between their clients and new businesses. It also helps in tracking incoming recommendations which in turn helps in maintaining an equally advantageous relationship with other business professionals and clients. CRM software also helps companies know the response of customers regarding the use of any particular product or service. For example, Debenhams Plc, which is a UK-based retail company, uses customer feedback mechanism to know the response of customers. The company sends a survey form to every client that helps the company know whether the customers are satisfied with the reliability and quality of the products or not. The company also uses the CRM software to deal with customers’ concerns in a timely manner in order to improve the level of customer satisfaction. For example, if a customer registers a complaint about working of a product, the company responds to the customer in a very short time. All of this has become possible due to the implementation of CRM software which tracks customers’ complaints and generates regular alerts to the company’s officials regarding the complaints. These were some of the benefits that companies gain by implementing the customer relationship management software. The only thing that managers need to do to gain these CRM benefits is to effectively implement well-designed and well-planned CRM software with the support of higher authorities. Answer: B 1. Information Systems Before investigating the role of information-systems strategy in organizations, let us get a basic overview of what information system actually is. An information system is basically a collection of computer programs, algorithms, methodologies, and mechanisms to convert raw data into useful information. The processed information is used by relevant organizational authorities in carrying out different business activities. Information systems incorporate the use of information technology and software and hardware products to make the system efficient and fully functional (Carry 1988). Some of the main areas or fields for which information systems are mostly used in organizations include system analysis and design, software engineering, health informatics, artificial intelligence, databases, decision making, project management, and knowledge management. In today’s world of competition, no company or organization can ever be successful without implementation of a perfect information system because information is needed in every business operation in order to run the business effectively. Some of the main tasks of an efficient information system include processing of data into information. Proper management of business related information, documentation of processed information, and assisting managers in taking critical business decisions. The main purpose of designing an information system is to make an effective use of IT tools that can help managers, decision makers, and employees in effective processing of information, as well as in carrying out different tasks and business operations. Information system is now considered an essential part of any company and organization because it establishes a useful link between technology and organizational departments, as well as speeds up organizational processes and activities. 2. Importance of Information Systems in Organizations In today’s world of competition, information systems are considered to be one of the most important success elements for any company or organization because it helps companies in taking business decision regarding any matter based on stored information. Information systems not only collect raw data and convert it into information but also process, categorize, and send the collected information to concerned authorities (Earl 1988). The system works in such a way that all information that it presents to the concerned departments is in the form of a well-documented report. Information systems help companies in setting and achieving long-term strategic goals and objectives (Earl 1996). The system helps managers in doing effective planning regarding accomplishment of the goals. It helps managers in many critical areas, such as, budgeting, planning, and forecasting future scenarios. Information systems are also used in financial organizations to keep a complete and accurate record of all financial activities. Similarly, retailers also use such systems to keep track of market changes, product development, and all other activities related to product and store management. Without the use of an efficient information system, employees cannot properly access or use the information required for any particular business activity because it take a lot of time and effort to produce relevant information from data. Information systems not only speed up business processes but also play a key role in strategic business development and decision making. As Summers (2010) states, “upgrading your business information system is a necessary process that every successful organization should implement”. This statement shows that IS should be upgraded frequently in order to get efficient results. Almost all organizations make use of information systems to effectively manage and process the data. For example in online bill payment system, people provide necessary information to the bank which is stored automatically in the bank’s information system database. The system then processes the information and updates the database in accordance with the transaction. Having discussed the importance of information systems, let us discuss the role of information systems strategy in organizations, as well as the changes that managers need to make in organizations to implement the strategy properly. The main purposes of implementing an information system strategy in organizations include effective management of expensive and critical organizational assets, establishing a link between business direction and information system, effective allocation of information system resources, improving interaction between IS department and the business, ensuring effective use of information, reducing costs and time needed to carry out business activities, and planning efficient information flow between different departments. By implementing information systems strategy in organizations, managers and employees become able to integrate the use of technology with all information activities in such a way that they face no difficulty in taking critical business decisions, and to use all information quickly and effectively to make efficient business decisions. Another benefit of implementing an information systems strategy in organizations is that it increases interactive communication between two different departments, as well as within the departments. Information systems also play a vital role in promoting a culture of innovation in organizations. Employees use the information stored in the system to enhance their knowledge about new developments and create new technologies. Knowledge sharing is an important aspect of information systems strategy. Users of the system share knowledge with one another creating a collaborative learning environment at the workplace. Information systems bring a number of benefits for organizations which include both tangible and intangible benefits. Some of the most considerable benefits of information systems strategy include improved inventory control, increased level of production, improved customer loyalty, improved customer service, enhanced interaction between organizational departments, enhanced pubic perception about the company, and reduced operational and administrative costs. Moreover, information systems also help companies in doing various types of data processing which include classification, rearranging, summarizing the data, selecting data based on some common factor, and performing accurate calculations. Information systems strategy also helps organizations in forming a sound strategy regarding investment in new business opportunities. For example, Debenhams Plc makes use of its accounts and management information systems to analyze new business markets before opening its retail stores in other countries. The planning team of the company uses the information system to assess the feasibility of new ventures and reports to the higher authorities which take the final franchising decision. The information system of the company also helps it become aware of new investment opportunities and associated threats. The system assists the management of the company in tackling the challenges in a timely manner. Companies use information systems for taking calculated decisions and developing effective business strategies regarding different business matters. Information systems establish a useful link between people and information technology. Information systems involve the use of computer systems for collecting data, processing of data into information, and generating reports for decision-making purposes. Therefore, we can say that information systems strategy provides great assistance to companies by providing them with accurate and complete information regarding any business matter. Data processing is one of the main functions of information systems strategy. As Aoms (2010) states, “processing of the information becomes significant for better performance of managerial functions”. Information systems bring automation in business processes because of which managers and employees become able to take quick business decision based on properly forecasted scenarios and accurate calculations. 3. Benefits of IS Strategy in organizations 3.1 Timeliness Quick collection of data and processing of data into information is one of the main jobs of an efficient information system. Information system is able to quickly collect data from various sources and make it usable for the concerned authorities. Timeliness is of extreme importance for an efficient IS because it saves time of the users. Timeliness not only involves quick collection of data but also involves quick editing of the collected data and generation of reports. 3.2 Accuracy Accuracy is another key element of an efficient information system. Information systems are able to perform accurate calculations. Accurate reports generated by the system help organizations in planning for future investment opportunities, as well as in taking critical business decisions. Accuracy of internal controls is of extreme importance for efficient functioning of an information system. 3.3 Completeness Completeness is also one of the main elements of an organization’s information system. Using IS, companies are able to retrieve complete information regarding any business. However, completeness does not mean that the generated reports contain irrelevant details; rather the system provides the users with only relevant and pertinent information. These were some of the main benefits of using information systems strategy in organizations. Although there exist some challenges, such as, training of employees and cost of implementing the information system, but the role that IS plays in refining organizational processes overshadows the problems in implementing the use of information systems strategy within organizations. Companies can tackle all challenges by providing proper training to employees regarding the use of the system before actual implementation of the system. Answer: C 1. Role of IS Planning Tools Information system planning needs collaboration of managers and employees in doing efforts in implement a well-designed IS strategy. The purpose of IS planning tools is to design such a strategy that should set direction within a competitive business environment. The strategy also provides consistency, focus, and efficiency to business processes. “Information systems is offering opportunity to reorganize every aspect of business model and business processes” (Alshamlan 2006). 2. Significance of IS planning in Creating an IS Strategy in Debenhams Plc Robson, Cassidy, and Ward and Peppard play a significant role in creating any kind of information strategy for an organization. In case of Debvenhams Plc, a UK-based retail company, it is critically important to design such a strategy which should be able to provide the company with competitive advantage against its main competitors. Therefore, the main things which will be taken into consideration while developing the information technology include firm’s readiness for information management, people responsible for information management, way to communicate the way of changing the current system to the concerned people, the things users will do with the system, the way managers will operate the system, the way data will be added to the system for processing, required collaboration tools and technologies, and the type of connection which will be established between the system and departments. All of these factors are the basic elements of IS planning framework and will play a critical role in designing an efficient information system strategy for Debenhams Plc. I would consult the managers of the company first in order to identify their needs regarding information management. After knowing the needs, I would explore the working of each of the company’s retail outlets in order to know the connection that exists between them. Then I would develop an entity-relationship diagram which would help me in determining the relationships between people, technologies, and processes. Based on the analysis of the relationships, I would develop an efficient information system strategy for the company. References Alshamlan, A 2006, ‘Information Systems Strategies: Prospective Demand and Supply’, viewed 22 March 2013, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=924149 Aoms, P 2010, ‘Management Information System (MIS) In College Management Software’, viewed 22 March 2013, http://ezinearticles.com/?Management-­Information-­System-­(MIS)-­In-­College-­Management-­Software&id=3804507 Carry, J 1988, Human Factors in Management Information Systems, Alex Publishing Corporation, U.S.A. Earl, M 1996, Information Management: The Organizational Dimension, Oxford University Press, New York. Earl, M 1988, Information Management: The Strategic Dimension, Oxford University Press, New York. Summers, I 2010, ‘Guide to Upgrading Your Business Information Systems’, viewed 22 March 2013, http://ezinearticles.com/?Guide-­to-­Upgrading-­Your-­Business-­Information-­Systems&id=3720773 Boyle, M 2009, ‘Using CRM Software Efficiently’, viewed 22 March 2013, http://www.nysscpa.org/cpajournal/2004/704/perspectives/p17.htm Kokemuller, N n.d., ‘What Are the Benefits of Using CRM?’, viewed 22 March 2013, http://www.ehow.com/list_6893424_benefits-using-crm_.html Rossell, C 2011, ‘Discover Benefits of Customer Relationship Management’, viewed 22 March 2013, http://ezinearticles.com/?Discover-Benefits-of-Customer-Relationship-Management&id=6324920 Ueno, S 2006, ‘The Impact of Customer Relationship Management’, viewed 22 March 2013, http://www.wcfia.harvard.edu/us-japan/research/pdf/06-13.ueno.pdf Read More