In Search of CRM Success - Report Example

Racing Hard- Crashing Harder? Submitted By: [Student Id & Full Name] I acknowledge that this is my own work and that all materials used are attributed and referenced. Student Signature: Date due: 3rd of September 2014 Lecturer: Dr. Chadi Auon Tutor: [Tutor’s Name] Tutorial Time: [Tutorial Start Time] Table of Contents Table of Contents 2 Introduction 3 1.Immediate Integration Recommendation 3 2.Justification 3 Fig 1. Systems Development Life Cycle 4 3.Alternative methodology 5 3.1 Recommendation 5 3.2Justification 5 4.Risks and Mitgations 6 4.1 Risk assessment 6 4.2Mitigation measures 6 5.Determining success 7 Conclusion 8 References 9 Introduction Customer Relation Management Systems have a number of functions that if well utilized can be extremely beneficial to a business. The CRM system is able to process a company’s use to track and organize the contacts with the current as well as prospective customers. The data concerning customers is stored in a single database which aids in avoiding customer data errors. A Customer Relation Management system is able to integrate all the business activities that are primary making the everyday business processes more efficient. Additionally, it is able to prioritize its customers based on the purchase history and in this way, a business is able to delineate which customers are significantly important and put most of their efforts towards them (Mishra and Mishra, 2009). There are so many more ways in which a fully efficient CRM can be beneficial to a company as long as it is well developed and has the right rules that govern it. If a company’s CRM s not yielding the anticipated benefits, then there are a number of things that have to be put into consideration and one of them is rethinking the concept behind the resource. This reports seeks to explain the measures that are being taken by AusRaceCorp (ARC), analyze them and determine whether they are the right measures to be taken into consideration. 1. Immediate Integration Recommendation Immediate integration would be a good idea considering that ARC seeks to benefit from WinCarz clientele however, the time frame given would lead to more problems than solutions. 2. Justification The traditional Systems Development Life Cycle involves 5 processes: Planning, Analysis, Design, Implementation and maintenance. The concept of systems development refers to a number of hardware as well as software configurations because a system can either be comprised of software, hardware or both software and hardware. Traditionally, the CIO will have to go through the following procedures to achieve a cost effective end product: Fig 1. Systems Development Life Cycle AusRaceCorp and WinCarz have two independent CRMs that have undergone the procedures described by the diagram. To come up with a common CRM that incorporates both the CRMs using the traditional method, the above procedures have to be followed carefully. This plan ensures that mistakes are avoided and considering that the consumers also have a right to contribute to the final product, a month is not sufficient for this to happen. A new CRM has to be built that incorporates both the systems from the two different companies and traditionally, the developer will have to look at it as if they are developing a new system from the ground up. There are points in the systems that may agree and some that may not and it is up to the developer to come up with one code that marries the two systems. All things considered, it is a good idea to integrate the two systems but time is a factor that has to be carefully looked at. 3. Alternative methodology 3.1 Recommendation To ensure a speedy, quality and proper delivery of the services needed, Joint Application Development (JAD) methodology is the best to implement (Kuchmistaya, 2001). Comparing with the traditional method, JAD is faster in terms of development and guarantees client satisfaction because the end user who is the client is involved in all the phases of the development life cycle. Additionally, when compared to the traditional method of development, the developer is able to investigate the requirements of the system to develop the application with the client having an input into the system. The input is acquired through a series of interviews. 3.2 Justification ARC and WinCarz already have two fully functioning CRMs. One seems to be doing better than the other in terms of clientele and returns. If ARC decides to go for the rapid integration, it may not be able to achieve the end goal which is to improve business and expand its customer base. Additionally, because of the hasty decision made, it may even loose some of the clients it has obtained from WinCarz. Going the traditional way as explained earlier will leads to so many errors. The Joint Application Development methodology will give ARC a chance to carry out JAD workshops that will help answer some of the questions that ARC may not have answer to for example, why the business is not doing well yet they have a fully functioning CRM. Also, ARC will be able to get views from WinCarz clientele and understand why it does so well with its consumers (Kuchmistaya, 2001). At the end of the day, the company will have a n idea of what it is doing wrong and what needs to be done to make sure that the end user is satisfied. In as much as WinCarz is doing well, it may have shortcomings that need to be addressed to have an end product that does not become obsolete. 4. Risks and Mitgations 4.1 Risk assessment There are three major risks that come with opting for JAD over the traditional methodology: Time wasting: Without proper for the JAD workshops as well as sessions, time can be wasted on addressing the wrong problems, the participants involved may not be the suitable ones and allocation of inadequate resources to solve problem. Team selection: The team involved in the input of the system are an integral and important part of the whole process. The variety as well as knowledge of the teams involved will either make or break the system Bias: The participants involved have an equal opportunity to participate but if the facilitator of the JAD workshops does not encourage everyone, whether vocal or not to participate, the end product may end up benefitting other people than others (Moreno and Lockett, 2013). 4.2 Mitigation measures To mitigate such risks the following should be done: The developer should “do their homework”: The developer should carry out proper assessment of the JAD sessions by making sure that the right professionals are involve, the right people are invited to participate in the workshops and make sure that adequate resources are allocated to solve problems. This can only be achieved if the right people are involved and the system being scrutinized is put in the fore front. Proper team selection: The teams that are selected for the JAD workshops have to include employees who are in a position to provide input on most if not all the required parts of a problem. The participants selected should not only come from the different departments that that will interact with the new system but also from various positions in the organizational ladder. Having a varying understanding on the thought process and even different point of view will allow the participants as well as developer to see the different ways to come up with a solution (Moreno and Lockett, 2013). Proper facilitator: The facilitator is believed to be the smoothing as well as motivational force. He has to ensure that the participants, vocal and non-vocal, air their opinions in order to have a fruitful end product. 5. Determining success A successful integration will in so many ways guarantee organizational success for ARC. The strategic analysis and implementation will play a major role in the whole process. CRM Technology: This is the key component of implementation. ARC and WinCarz already have two fully functioning CRMs. Successfully integrating the two systems will [lay to the advantage of the organization and its clientele. CRM technologies bring about massive benefits to the company since they create a single view of consumers, manage the relationships that the company has its consumers in a way that is integrated not considering the channel of communication used. This in the end improves the efficiency and effectiveness of the company (Tafti, 2002). Knowledge management: From a perspective that is knowledge based, consumer knowledge is a rare and very valuable asset to the business in such a way that it allows the business to respond rapidly to the needs of the customer as well as adapt to the changing markets. A successfully implemented CRM will have the capability to collect information about its consumers in a relationship context and offer consumers value that is superior based on the knowledge collected. This gives an organization a capacity that is distinct and makes it difficult to imitate. Capabilities of the company: For successful implementation of CRM, support from top management is crucial. Employees on the other hand are responsible for the everyday business processes and the support from top management ensures that there is no resistance to change from the employees. A culture that is focused on the customer would require employees to be convinced and motivated. When this happens, the consumer who is the end user gets their money’s worth which keeps up business. Financial capabilities: A successful CRM will ensure that a company minimizes the financial risks and maximizes the returns. With the right methodology adopted, there will be less cost incurred in the future in terms of maintenance and upgrade. An assessment over a monthly or a quarterly basis will shed some light on what is required to make the system work in a cost effective manner (Tafti, 2002). Market capabilities: All things considered, when a CRM is successfully implemented, the results are shown in the market base and capabilities. An increase in the market base due to consumer satisfaction is guaranteed. With an increase in the market base, business at ARC is boosted and returns maximized. Conclusion It would be in the interest of the company if the CEO gives some thought into the recommendations made by the CIO. The CEO is not fully equipped in the information technology sector to say what is best for the organization. The above mentioned should be considered and the right strategies implemented to make sure that an efficient and cost-effective system is developed. References Moreno, A. G. and Lockett, N. 2013. In Search of CRM Success: A Resource-base Perspective SME Service Companies in Spain and the UK, London: University of Leeds. JOHN WILEY AND SONS INC., Information Systems Development [Online] Available at: http://www.wiley.com/college/turban/0471073806/sc/ch14.pdf [Accessed 1 September 2014]. Kuchmistaya, S. B., 2001. www.umls.edu. [Online] Available at: http://www.umsl.edu/~sauterv/analysis/488_f01_papers/kuchmistaya.htm [Accessed 1 September 2014]. Mishra, A. and Mishra, D., 2009. Customer Relationship Management: Implementation Process Perspective. Acta Polytechnica Hungarica , VI(4), pp. 83-99. Tafti, M. H. A., 2002. Analysis of Factors Affecting Implementation of Customer Relationships Mangement Systems. Issues & Trends of Information Technology Management in Contemporary Organizations, I(1), Pp. 782-785. Read More