Key Application Components of Mitsubishis Customer Relationship Management System - Assignment Example

1. Describe the key application components of Mitsubishi’s CRM system. Explain the business purpose of each of them. The key application components which have been applied as Mitsubishi Motors’, customer relationship management (CRM) system include a focus on sales of the company , promotion of marketing for the expansion of sales , fulfillment of the needs of the customer’s , provision of customer service in professional manner , customer support as part of the strategy , focus on contact and account management, retention of the trained staff , and implementation loyalty programs for the staff and all other stakeholders. The company is multinational manufacturing unit in the automobile sector with the production of first Mitsubishi automobile in 1917. The company is responsible for the manufacturing, finance, distribution and marketing of the brand products through a network of dealers in the countries like United States of America, Canada, Mexico and the Caribbean. CRM is a cross functional enterprise system that has the capacity to integrate in sales of the company, marketing and customer’s service for the implementation of the business strategy of the company for a specific time period. CRM system includes a family of software modules that has the potential to provide the tools that enable the business too consistently for their promotion to the highest levels of service as in favor of the company. The company has applied CRM with an articulated and integrated approach to help all the stakeholders in customer-focused businesses. The company has applied CRM through a strategic decision as the executives of the company had felt that the company lagged a customer-focused approach and the previous strategies were not in a position to deliver the desired results as in the form of sales as well as revenue in favor of the company. The key application components of the CRM have helped in the promotion of customer relationship through enhanced sales, better marketing tools, improved customer services and customer support for the retention of the employees. The sales of the company were supported and managed through the application of components of the CRM with better sales activities. These components have optimized cross selling with an up-selling to the customers. These components have also helped in the shape of better contact and excellent account management. Application of the components has helped in tracking the relevant data about every past and planned contact. These tools have also helped for the development of a network of a prospect for its utilization to promote help for the customers in the sales and marketing with efficient services as delivered by the professional. The marketing professional has accomplished direct marketing campaigns through automating such tasks as making sure that all the calls are returns. These components have provided for the promotion of services to the customers to make them sure that all the calls will be call back as in accordance with the customer’s needs. These components have helped in the retention of the employees and for the implementation of the loyalty programs through identification, reward and market assessment. 2. Discuss the business benefits to an organization and its customers of a CRM system like Mitsubishi’s. Identify any negative aspects also. Customer relationship management system as applied by the Mitsubishi Company was implanted through the creation of an IT framework of web-enabled software and data basis that has integrated different components of the company in a comprehensive manner. Major backbone of the CRM systems includes a family of software modules that has provided the highest level of services to the customer. CRM system includes a set of software modules that provide the tools that enable a business company to provide the highest level of services. The CRM mechanism was implemented through the utilization of a project team that included members from different sections of the business like sales, marketing, IT departments and finance. The team has formulated guidelines on what type of CRM software would be acquired for its utilization and implementation of the system. The team from the very beginning has focused a set of approaches like outsourcing their basic level customer service calls. The strategy has benefitted to the company in all its components in early 2001. The company has introduced a digital phone switch that has allowed a flexible skills-based call routing which in term has benefitted the company as about half of the customer calls were now handled by an interactive voice response unit rather than the conventional personal arrangement. As part of strategy, the company has introduced in March 2001 a user interface upgrade mechanism that has provided operators access to a number of screens of the customer information as on one screen. In June 2001, the company has adopted work force management software that has benefitted the company in the shape of hourly forecast call-center coverage. As a benefit, the system has provided an arrangement that has routed the calls as to benefit and fulfill needs of the customers. The benefits also includes like shared or distributed data has been increased, the execution cost has been reduced better customer services and better customer retention. All of these steps has worked together as in synergetic pattern as in the shape of better marketing of the products and introduction of new customers on the list of the company. CRM system has a set of benefits for the whole business cycle as in favor of all the stakeholders. Major stakeholders as included in a company like Mitsubishi are the owners of the business entity, the administrators, employees and the general customers. The system has benefitted to all the stakeholders like: a) Owners of company are benefitted in the shape of better sales, enhanced revenues and more profits through the execution of the business strategy, b) The administrators has been facilitated in the shape of a viable and workable customer relation mechanism with all its tools and the complex process were formulated as in simple and flexible mechanism, c) The employees of the company have received more revenues as part of their perks and privileges and, d) The customers were benefited from the introduction of the CRM system through a coordinated and articulated business strategy with all its necessary details. Implementation of the CRM has a negative component as the company had to focus on the acquisition and adoption of the new system with extra financial burden in the shape of research and development and training of the existing as well as newly hired staff members. However, the negative aspects of the CRM system is so negligible that cost-benefit ratio is in favor of the benefits and more profits, therefore, the company has selected for the implementation of the CRM system with all its necessary information technological tools. 3. Discuss the effectiveness of Mitsubishi’s approach to acquiring and installing its CRM system. Mitsubishi has applied CRM system for the establishment of happier customers. The effectiveness of the system has been improved as a satisfaction rate has increased by 8%. The system has benefitted all the employees through career growth and higher pay for the employees of the call centers. The system has greatly reduced the call center turnover from the previous 20% to the current 7%. The application of the CRM system has promoted effectiveness of the company through 66% reduction in the cost per call and has handled 38% more calls as in favor of the company. The acquisition of the CRM has enhanced the effectiveness of the company in all its fields of operations like production of the automobiles by the company, establishment of a network of customers as on international basis. The promotion of sales has facilitated the company through better and enhanced revenues in a business year; therefore, the adoption of CRM has provided a system of all other manufacturing units a similar system for acquiring the associated benefits. The implementation of the CRM system was slow and gradual during its early stages for understanding and effective implementation of the newly acquired business tools as in the form of CRM system. The strategy has favored the company as no major change was required by the company for its abrupt and quick adoption. The employees of the company were not in favor of the adoption of the new system as in the form of CRM system, however, the company has adopted a strategic decision. The decision as in form of introduction of CRM system in the company has proved to be profitable and viable as the introduction of new technologies has promoted a soft and dynamic outlook of the company among all its stakeholders. The company has gained an arrangement as in the form of lower cost per call, higher customer satisfaction and acceptance of the system by all the stakeholders through its adoption. 4. Discuss how Mitsubishi’s system may overcome some of the common people (employee) management and performance issues often associated with call/customer service centers. The application of the CRM system as applied by the Mitsubishi has the potential to solve the problems of common people especially relating to the issues in the fields of management and performance and their association with the call/customer service centers. The system has applied hardware, software and human resources for the establishment of call centers as for the promotion of sales and other products of the company. The same strategy and components could be applied by common people and other similar organizations for similar results. Tangible, intangible, technological and human resources have been put together for the establishment of a business center. All these key areas are applied on the supply side of the system through their incorporation in the shape of a strategy with defined objectives and targets. Implementation of the business strategy as applied by Mitsubishi has the capacity to deliver the desired results within specific period. All the companies and the individuals need to identify their business proposals through the utilization of information technology. The application of technological resources along with human resources and financial resources will help the individuals as well to the organizations for the achievement of the results as are linked with the application of the business strategy. The individuals/ organizations need to focus on the following major steps for the achievement of their objectives and successful implementation of the business programs: 1) The identification of the goals and targets will determine the tone and direction of the business cycle along with the determination of the business opportunities, 2) Analysis of all the available options and resources as for their utilization in the business cycle. These resources will include financial human as well as technological resources in the form of software and hardware. The organizations need to apply relevant software programs for lowering the cost per call, simplification of the procedures and high rate of inbound and outbound calls, 3) Implementation of the business plan as in accordance with all its details and subcomponents. Business strategy will serve as a central tool for the utilization of all the resources, and 4) Review and evaluation of the whole business cycle for modifications and changes if required for the successful implementation of the business strategy. The steps offered will promote confidence and understanding of the individuals as well as for the business organizations for a system like CRM system. References: 1. Hart-Davidson, William, Grace Bernhardt, Michael McLeod, Martine Rife, and Jeffrey T. Grabill. 2008. "Coming to Content Management: Inventing Infrastructure for Organizational Knowledge Work." Technical Communication Quarterly 17, no. 1: 10-34 2. Pennington, Lori L. 2007. 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