Customer Relationship Management or Enterprise Resource Planning Systems - Case Study Example

 high note group case study Contents 1.0: Part A 2 1.0.1: Introduction 2 2.0 Main Section 3 2.0.1: The changes that will be required to business processes 3 2.0.2: How these changes can be supported by the use of new Open Source packages such as a CRM or ERP system 5 2.0.3: Recommendations 8 2.0.4: Conclusion 9 3.0: Part B-Reflection 10 4.0: References 12 1.0: Part A 1.0.1: Introduction The entry of High Note group into other wider markets signifies the expansion of the company’s operations beyond its local boundaries. Going into the European market, High Note Group must have a clear insight on the specific entry strategy to apply in the event of venturing into the vast market. In addition to that, the partnership of HNG with the Live Art Network presents a myriad of opportunities and challenges for the HNG Company. With these factors put under consideration, the shifts in the business processes of HNG will signify the impact of its activities in the larger global market (Mukherjee, 2012). Primarily, the expansion of operations by many firms has completely changed the manner in which the world operates. The barriers that hindered the abilities of people to interact and communicate across borders have diminished gradually. Therefore, the decision by HNG to enter wider markets is a step forward towards realizing potential and exploring supplementary opportunities that the company could not have enjoyed with the previous stalemate posed by inadequate communication platforms (Koch, 2011). This paper, therefore, sets to dissect the changes in the business processes that HNG will have to undergo in order to blend its strategy fully with the market conditions and organizational expectations. Besides, it will explore how the shift in the business processes will benefit from the implementation of open source packages such as the Customer Relationship Management (CRM) and the Enterprise Resource Planning (ERP) systems. 2.0 Main Section 2.0.1: The changes that will be required to business processes Consequently, the transformation in the channels and patterns of distribution significantly contribute to the changes in the business processes. These adjustments concern both the strategies of the firm and the infrastructure of distribution. Previously, HNG was a supply firm that capitalized on enhancing distribution services while facing the challenges of lowering the costs of distribution as per the requirements of the customers. However, with the partnership of Live Art Networks, the company aims at capturing larger markets and shifting the supply of equipment to the sale of equipment. The above contradictory objectives could be realized by the opportunities availed by the technical development. According to the first requirement of Kotter's 8-Step Change Model, the author emphasizes the need to include urgency in the organization. Globalization obligates companies to embrace technology as part of the process of doing business internationally. Open sourcing is a community driven software movement that enables companies and individuals to make their source codes available online (Asundi, Carare and Dogan, 2012). Through such services, other people have the opportunity to contribute to the company. HNG may come up with a new software product that they may decide to make an open source. Through this platform, the company gains knowledge and expertise from experts and specialists located anywhere around the world for no fee. Such a change in the company helps the business to cut the costs associated with hiring consultants on a vast variety of issues. The horizontal integration of retailers, suppliers and customers is the next shift that will affect the business processes of HNG. Supply chaining, as it is known, enables faster and accountable movement of supply amongst the stakeholders in the supply chain. As the company widens its territorial market, the supply chain also grows. Global standards of managing a successful global supply chain require that the company adopt this process as a method of reducing the frequent frictions between retailers, suppliers and the customers (James, 2007). The advancement in technology affects the operations of businesses globally. The combination of these developments creates a level global market place. Therefore, the progress will oblige HNG to adopt new skills, habits and processes that enable them to maintain an advantage and compete in the global market. The above trends correlate with the ability of information technology to create standardized platforms for global computing. In addition to that, the company must create a viable human resource team that will oversee the recruitment and retention of employees. Given the drastic competition in the wider market, innovation remains a pillar in many organizations. Therefore, employee retention programs encourage the spirit of innovation within the company (Pries and Stone, 2004). Indeed, such platforms guarantee the existence and operation of the company beyond such barriers as geography, time, distance and culture. However, in as much HNG will require incorporating technology in its operations, it must be understood that companies just using one technology are not guaranteed of success in the global landscape. HNG has to boost its productivity by blending and combining the available technologies with new styles of doing business. Concerning TCS Organizational Change Management Components, the change of business processes requires a sufficient supply of infrastructure. As such, HNG needs to capitalize on the powerful and new platforms that are the disposal of the firm. Consequently, the relationship between the new business process and the information technology is a cyclical one. The new business process makes information technology more valuable, while the new and advanced technologies make the new business process more valuable. The shift in the business process illustrates how information technology has become a determining factor in the globalization and expansion of territorial markets. Indeed, information technology has evolved to achieve an integral part of a firm’s business strategy. Technology provides the means by which the firm can operate in the wider global marketplaces. The commitment by HNG to globalization must coincide with the firm’s dedication to infrastructural development, changes in corporate and organizational strategies, and the shifts in business processes. Failure to match the strategy to the above factors will render the company unable to compete in the global marketplace. 2.0.2: How these changes can be supported by the use of new Open Source packages such as a CRM or ERP system The fitful growth of the economies in Europe lure many companies to look forward to expanding their top line revenues while optimizing their operations with the aim of improving cost management and enhancing efficiency. HNG manager, Jack, realizes that timely information and technology are critical in obtaining the above business objectives. Therefore, the automation of processes enables technology to bring complete information to the business units, ranging from the sales and marketing to the accounting management (Balka, Raasch and Herstatt, 2010). Therefore, automation guarantees the standardization of processes and enhances the visibility of information throughout the business operations. Customer Relationship Management falls under the Enterprise Information technology, which is an application that allows companies to configure the interactions between business partners, employees and customers (Behera, 2011). The Customer Relationship Management is perhaps the most significant and beneficial technology that global companies can utilize. The Customer Relationship Management allows the firm to redesign the business processes to lower the operational costs while increasing the value of the company. CRM is based on three fundamental areas, the help desk application, the call centre systems and the sales force automation. Depending on the operations of HNG, the consolidation of functionality of the CRM enables the faster and easier access by the customers. The call centre system enables the company to take the concerns and queries of the customers. Besides, the operation of the call centre may be in HNG’s home country, England, or in the host country. Furthermore, the helpdesk application provides the customers with the comfort of having their problems solved by a qualified and trained person. The help desk application enhances the efficiency of the company’s software, while eliminating the errors and flaws that are encountered by customers. On the other hand, the sales force automation task relates to the keeping of purchase and sales related records. With increased need to improve efficiency, Michael Porter’s states that companies engage CRM to gain competitive advantage in the industry. CRM enables managers to monitor the activities and events of the employees more effectively. The information provided by the CRM applications is accessible to the managers at any time, in addition to being accurate and updated (Harrigan and Miles, 2014). This information gives an insight of the happenings within the organization, further emphasizing the importance of this tool in the extraction of crucial information that concerns consumer taste and preferences. Venturing into wider markets presents challenges in the desired consumer behaviours. However, with the Customer Relationship Management, it becomes easier for the management to analyse the most common trends registered by the costumer views and use this information on establishing a dominant consumer behaviour. In business today, customer service, just like corporate social responsibility contributes largely to the success of an entity. Enterprise Resource Planning software, on the other hand, is an enterprise technology system that integrates all processes and data across an organization in an identical structure (Beheshti, 2006). These systems typically and analytically cover all the basic functions through the organization. In previous years, companies had different systems installed for each business unit within the organization. In such systems, each business unit had unique standards and distinctive processes that could not integrate easily with the systems and operations of other units. However, the improvisation of technology presents ERP, which enables businesses to replace separate independent systems. Besides, with an ERP system, an organization can combine different business unit systems into one fully integrated system. HNG can integrate common units such as the supply chain, warehouse management, the financials and human resource management. As depicted, the firm will have to consolidate the supply chain as part of the larger strategy to adopt a new business process. Live Art Networks is a supply out souring company that HNG has collaborated with to restructure the supply chain. The ERP system is considered a back end system that does not involve the customer directly. The system instead, has its tasks and roles dedicated to the running of the company. With an ERP system, HNG can look forward to integrate the customers, partners and suppliers, improve partner and customer satisfaction, reduce cost s of administration, establish an asset recovery services brand, enhance business controls and lower the costs incurred in Information Technology operations as well as those incurred in system maintenance (Johansson, 2012). The ERP structure will move HNG from the geographically disbursed business to one venture that has integrated processes. Consequently, HNG has managed to outsource its marketing needs with Live Art Networks to control the marketing, supply and tendering processes. An ERP system has profound effects on global business. Speed and agility in the business processes are a necessity for maintaining a competitive advantage over other firms competing in the industry (James, 2007). For that reason, the ERP systems facilitate the integration of business units and processes to allow the company to gather data effectively and efficiently. The system also enables the easy extortion of important data, hence providing information that can help in the implementation and planning of a global strategy to help the company not only to add value but also to obtain a significant competitive advantage. 2.0.3: Recommendations Therefore, the improved productivity of HNG may require the integration of CRM and ERP. This integration improves productivity by reducing the duplication of data entry tasks. Besides, it improves the organizational task management while empowering the employees with the correct information at the correct time. An integrated CRM and ERP system streamlines the business processes through automation of the workflow (Ghorbaninia, 2014). Furthermore, it helps in bridging the gaps between the departments. The firm should allocate funds to the implementation of the process. Besides, using the established local networks, the organization should adopt an organizational education exercise to enlighten the employees on the need to embrace the developments. Having evidence on the impact of these services on the overall organizational performance, HNG should look for alternative sources of finances that will facilitate the hiring and retention of experts to oversee the process. In addition to that, the company should have exclusive investment on marketing and promotion, in order to encourage customer buy in. the implementation of ERP and CRM systems lie between the users and the systems themselves. Therefore, all the tasks must be completed in a sequential manner to avoid a clash in the roles of each system. The management s should focus more on competitive innovation rather than on incremental improvement. This envisages the encouragement and conception of new experiments. The management should also design a wide e-organization idea that constitutes s large opportunities (Brunswicker and Vanhaverbeke, n.d.). The organization can overcome the lack of support from executive by improving financing and budgeting for exclusive IT proposals. 2.0.4: Conclusion The implementation of either CRM or ERP systems into the organization requires a strong gathering of requirements and skilled personnel to oversee the entire process. The individuals contracted to handle such processes should be well trained from the experts in the domains of CRM and ERP. Such obstacles prove the challenge in implementing the strategy into the business process, as inadequate human resources may translate into substandard implementation (Jungmin Lee and 전희준, 2013). The realization of ERP and CRM therefore poses a challenge to the business owner considering the fact that the implementation process encounters most problems and issues related to the cultural, organizational and structural challenges f the traditional business environment. Lack of expertise challenges the organization to abandon plans to employ the ERP and the CRM (Khaparde, 2012). Given HNG has been operational for over a decade, many employees may be unaware of the technological advancements that come with expansion onto wider markets. Therefore, inadequate business knowledge threatens to hinder the execution process. Finances associated with the establishment of credible and reliable system may pose a challenge to the business owner. The limitations over the overall costing of networking may prove to be deterrent to the entire process. Inadequate executive support from other stakeholders may hinder the overall process. Besides, the ERP and CRM software are difficult to customize without the help of experts. Such problems as limited project resources and lack of availability of resources hinder the implementation of the processes (CRM Scorecard - CRM Performance Measurement, 2012). 3.0: Part B-Reflection Before I started my research on the subject of open source, I assumed that the lack of information hindered the growth of global business. However, through my research, I came to highlight that the process of globalization was fastened not only by information but also by other factors as technology. In my paper, I indicate the traditional business environment in which HNG operates, and how to overcome the challenges posed by altering the business processes in line with the expansion of business territory. I can say, therefore, that for the management of both small and large business entities, the implementation of information technology networks is critical. In my analysis, the traditional business environment is a manual kind of environment that has provisions for human error that make it difficult to obtain efficiency. On the other hand, the automated business environments, the operations of the organization are integrated to envisage all the sectors of the business. Therefore, I highlight ERP and CRM as the possible solutions to the problem of expanding territorial market (James, 2007). In this study, I illustrate how the manager can avoid the pitfalls that may bring a company losses arising from operational inefficiency. Hence, the software discussed is developed through the consideration of all levels of the organization. The simplification of communication helps not only to increase productivity but also to limit fraud, to enhance efficiency and to improve coordination of units. In conclusion, I explain the advantages of implementing the systems into the organizational framework. 4.0: References Asundi, J., Carare, O. and Dogan, K. 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Critical factors underpinning the social CRM activities of SMEs. Small Enterprise Research, 21(1), pp.99-116. James, T. (2007). Fingertip control [enterprise resource planning]. Manufacturing Engineer, 86(2), pp.26-30. Johansson, B. (2012). Exploring how open source ERP systems development impact ERP systems diffusion. IJBSR, 6(4), p.361. Jungmin Lee, and 전희준, (2013). The effect of the CRM investment on CRM performance : through the mediating effect of CRM organizational competence and the moderating effect of industry.theebusinessstudies, 14(2), pp.129-154. Khaparde, V. (2012). Barriers of ERP while implementing ERP: a Literature Review. IOSRJMCE, 3(6), pp.49-91. Koch, S. (2011). Open source as a sourcing strategy for corporations. IJBIR, 5(1), p.1. Mukherjee, A. (2012). Social Efficiency of Entry with Market Leaders. Journal of Economics & Management Strategy, 21(2), pp.431-444. Pries, C. and Stone †, M. (2004). Managing CRM implementation with consultants—CRM or change management?. Journal of Change Management, 4(4), pp.351-370. Read More