AustCo - Consumer Relationship Management - Assignment Example

Question 1: A. AustCo must think twice and rethink the project before going ahead with it given arguments have been put forward for the failure of CRM systems. It has been suggested by researchers that the primary reason for failure of projects where CRM is concerned would be the issue of an absence of strategic planning prior to the implementation of CRM. This is the case with the AustCo plan at the moment which signifies that the issue should be worked out before being launched (Das, 2007).   B. Problems of implementation according to the traditional modes of systems integration, could, in most cases, range from issues related to execution of technological plans (Maselli, 2001) to an absence of organisational integration along with problems of consumer orientation. It has also been stated that in most cases problems that crop up with respect to such failures could be traced back to pitiable design, preparation and depth of understanding with respect to CRM projects. Researchers have also said that getting hold capturing the wrong customer information, unclear goals, inappropriate selection and use of technology, inability to integrate people and processes and use of misleading metrics or improper measurement approaches are the major barriers in implementing and managing CRM projects.   The process the CRM process is supposed to be inclusive of phases such as discovery of knowledge, planning the market and segmentation, along with segmentation of market forces, interactions with consumers, and refinement of the process, along with analysis at a macro level. The first variable would mean that inclusion of an analyses of information about the market from sources such as the consumer segments along with research agencies. There is also the need to set up interactions with consumers given the cultural affinities and variations that happen with geography. There can be no one-fit-all formula that could be applied in such cases. The knowledge discovery phase of CRM can be as specific and focused or as broadly defined as required by each of the system subsets. Any customer contact information useful in making the system more customer- and market-centric should be included in CRM. The approach that AustCo is aiming at, presently could be termed as the Big Bang Approach. The risk of the approach could be quantified in terms of the fact that all the requisites for the successful implementation of the project would need to be fulfilled at the very beginning of the planning or the development stage and there is no room for mistakes. The fact that this project is a pilot project for the company, and a merging of two prior different and heretofore un-witnessed events would mean that there are high chances of errors occurring. There is no time for testing or analyses, the feedback mechanism is not in place and the every ramifications of a new acquisition has not even settled down yet. A waterfall model on the other hand would be more suited given the fact that it would be a sequential process aimed at the development of a software in which development flows steadily step by step.       Question 2: One of the best known hypotheses on Consumer relationship management comes from Kale (2004. the research came up with an identification of the ‘seven deadly sins’ which would affect CRM failure. These sins, one would be well informed in taking as a excellent backdrop from one would be able to view the things that are recommended for the construction of a CRM system along with the things that are absolutely barred for the development, implementation or the sustenance of a viable CRM network which would provide assistance for the attainment of the goals that a supply chain sets for the overall business. The seven reasons given for unsatisfactory CRM outcomes are:   1. Perception of CRM only as a tool for technical assistance and innovation: one would have to understand the fact that while it is correct that a pivotal role is played by technology in the manner of setting up and the manner in which a CRM system functions, to assume that the system could be understood and worked upon solely as a technological innovation would be a mistake, given the human part of its operations that could never be discounted.   2. Absence of a consumer-oriented vision-for the system to achieve any level or measure of success, it is important that the consumer be made the central attraction and decision making factor in the CRM process of decision-making. In cases where the CRM system is not ‘founded’ in the intricacies of the demands of the consumer, the prima facie would invariably falter and more often than not, result in failure.   3. Understanding the real importance of the lifetime value of customers. Given the effort to acquire customers, it is incumbent upon organizations to go the extra mile to retain them. The concept of the lifetime value of customers must be taught and ingrained into the culture.   4. Absence of a authentic and continued support from higher-ranking officials in the management is a  problem especially in cases where the implementation of the plan has not taking the conseus of the management into account, or in cases where there is an absence of training wherein the management is not even aware of the benefits of the CRM system. For the system to success, it is essential that senior managers be willing to understand CRM and commit to its success.   5. Process re-engineering. In CRM to be successful, it the implementing agency will have to evaluate closely every process and procedure directly or indirectly related to consumers in an internal or external manner.   6. Data mining and integration. It is also important that key partners comprehend nature of the information and its related requirements in the market segments to make the CRM system work.   7. Securing loyal customers. Development and sustenance of long lasting relationships with consumers could be enhanced with a properly functioning CRM system.   Bland (2003) identifies similar approaches to realizing the full benefits of CRM. In particular, Bland recommends: identifying current CRM strengths and weaknesses; setting a CRM budget; starting out small and then progressing to larger CRM initiatives; approach vendors with a specific problem statement (this delineates the scope of the project); understand the significance of CRM integration; and measure the success of CRM, but be patient. Each of these hints for success provides opportunities for specific actions that allow organizations to realize the full potential of CRM. Progressive supply professionals are in constant pursuit of concepts, methodologies, and techniques that encourage performance enhancement across the supply system. CRM provides an overarching methodology that accommodates individual supply partner demands by systematically integrating network-wide customer-centric discipline. Sustained supply success is inextricably connected to its capacity to pull together the CRM-like willpower required for long-term performance growth.   3. What is a CRM system There is an absence of consensus where the definition of CRM is concerned (Payne and Frow, 2005). It might also be remembered that a definition of CRM that is narrow, forms a contributing factor to a failure of most CRM projects across the world. In cases where the perspectives on CRM focus on the limited technological sense of it, the result is often fragmented. The system itself is a tool for business management that has its roots in technology, and is useful in leveraging company’s understanding of consumer requirements for nurturing, maintaining, and strengthening profitable relationships with customers (Desjardins, 2009).   The idea therefore is that a CRM system would an innate part of a global business strategy that has its emphasis on the creation of value for the shareholders through a process of development of suitable relationship with key clientele and consumer segments (Buttle, 2001). The idea underlying the basic principle of CRM is that there is the need for creation of customer knowledge in so that the company is effectively able to segment its target audience; there is a development and maintenance of relationships that transcend barriers of time, with consumers that are profitable; there is also the need for determination of the manner in which unprofitable consumers are managed; and last, for the customization of offerings that the company spends in the market and the promotional offers that its comes up with (Srivastava, et al., 1999). It is through the creation and the better utilisation of consumer information, the consumer association and customer allegiance would witness improvement. Consumer relationship management could find categorization in terms of operational or analytical CRM.   While the aim of operational CRM is the reduction of operating costs whilst ensuring facilitating areas of work to provide value additions for consumers, analytical CRM concerns the technologies that aggregate customer information and provide analysis of the customer data to improve managerial decision makings and actions. It is based on technologies such as data warehousing and data mining.   4. SSM suitable for integrating two CRM systems?   A soft systems methodology (SSM) is usually used for providing flow of activities for finding and implementing a solution in a sot situation. This methodology is of the phenomenological kind used extensively in humanities disciplines, but no less so in hard sciences and often in engineering. The process of SSM begins with the problem and its identification as being unclear and lacking an obvious reductionist solution. As a start it would invariably contain a large people element. The kinds of purposeful activities are then identified and conceptual models generated and compared with the former starting point of the real situation.   Extreme differences are then rectified in that model and the implementation is adjusted to take it sufficiently acceptable to the people involved in the necessary process of change This type of modeling is not nearly as precise as found in conventional hard sciences but could be found as being satisfactory. The overall loop of the design is then closed by implementing a plan that is best available at that moment. This process is then repeated until reasonable success is achieved. Considerable iteration may be needed to reach and acceptable situation.   In the context of this case, the model would be far from acceptable given the fact that the idea inherent in the model to take things as they are, and work best with the resour5ces available. The idea would be perfect in cases where there is a problem to be solved, but in an instance where the focus is on the implementation of a new scheme and not on a problem, the approach is a bad idea, especially given the fact that it tends to work on issues where the problem at hand is unclear and vague. Second, seeing the problem as a purely technical endeavor is a mistake given the cultural and organizational ramifications that it is bound to have later.   5. Does successful CRM automatically mean success There can be no successful implementation of the plan in case it is just a CRM initiative. Reasons could be outlined as follows (Get the best out of your CRM choice): 1.      Employees Acceptance: a lack of employee acceptance which is inevit6able in case, the there is a lack of communication, typical to projects that have been processed in a hurry. An effort at restructuring employees could not be done that easily and requires a lot of time and effort. 2.      Phased implementation: There would an automatic requirement for an implementation plan in effect that works in a phased manner so that problems that exist in one place could be dealt with elsewhere. 3.      Training and rewards: there is a need to have a training mechanism in place so that they have knowledge and ability to deal with customers, and make use of the new system of software management. Training can be undertaken in a variety of ways and depends solely on the discretion of the company. 4.      Finally, there is a need for Feedback, given the fact that there is a need to monitor regularly the results of the process which has been instituted, so that the process could be ascertained and scrutinized. This is needed so that there is a scope in searching for searching for discrepancies.     6. Systems development methodology   A methodology for the development of a system would be understood as being the path or procedure by way of which a developer goes from a problem of a certain class to a solution of a certain class (Jackson, 1981). In trivial cases, the method may be fully algorithmic; for example, there is an algorithmic procedure for obtaining the square root of a nonnegative number to any desired degree of accuracy. In more interesting cases, such as the development of computer-based systems for purposes such as data processing or process control, we do not expect to find an algorithmic method: the goal of the development is not precisely defined, and neither the problem nor the set of possible solutions is sufficiently well understood. But a method, to be worthy of the name, must at least decompose the development task into a number of reasonably well-defined steps which the developer can take with some confidence that they are leading to a satisfactory solution (Brooks and Dunn, 2009). 7. DFDs used in SDLC 1. A data store defined in a DFD can be automatically inserted as an entry in the data dictionary, increasing productivity of the SDLC. This would in turn increase the consistency of the development of effort across projects 2. The tools usually enforce consistency across different phases by providing automated consistency checking between DFDs and the data dictionary to ensure that the attributes and data structures have been named and defined consistently across all of them. 3. DFIDs are the most common way of documenting the process of system design, especially in light of the fact that they could be used for coming up with descriptions on the manner in which the transformation of information could be brought about by the system. The help in coming up with a definition of the manner in which the information is defined and processed along with aiding storage of information, thereby belong with the identification of the nature of information flowing through processes. 4. Another reason for the popularity of DFDs is because of the fact that they are primarily a pictorial way of showing the flow of data into, around and out of a system. DFDs do not give detailed description of modules, but graphically describe a system’s data and how the data would interact with the system. 5. Finally, these are used because of the fact that they are able to predict the origins and the passage routes of the as it passes through the system; it also is able to decode the journey and the outcome of the data once it has entered the system in the form of inputs and before it leaves the system (i.e., the outputs). The system also predicts and understands delays.   8. Deontology and teleology: Difference in approaches Deontology is literally, the study of the duties that people have toward one another. Thus, Deontological ethics is often also known as duty based ethics, having its basic citing in the notion of “what one ought to do”. This is representative of a thought that is familiar to us all. This approach to ethics refers to matters of both individual morality and public policy, emphasizing the fact that sometimes the correct path is decided, not by consequences but by duties. These are synonymous with concepts of obligations, commitments and responsibilities. The approach faults utilitarianism for thinking that our acts should always be judged by their consequences to the overall good. Deontology denies the utilitarian belief that the ends do justify the means. It holds that there are some things that we should, or should not do, regardless of the consequences (Desjardins, 2009).   A teleological approach would be understood as an account rooted in philosophy which is a proponent of the theory that the final causes exist in nature. This means that the manner of thought and action that defines the human nature is to have its roots in the analogous inherent nature. The word itself has its roots in the Greek word telos, which means “end, purpose”. The idea was explored by Plato and Aristotle and later by Immanuel Kant in his work Critique of Judgment. The idea is that things, processes or actions are teleological when they came about keeping the end in mind. The two types of final causes that the theory talks about are the intrinsic finality and extrinsic finality (Brooks and Dunn, 2009)   9. Importance of knowledge of information system to accountants One would have to understand the fact that a knowledge of information systems is of essential importance to any student of accountancy given the largely technology based approach of accounting in the present day and age. Most accounting traditions have made a shift from books and ledgers to computer based accounts, with softwares like tally having come into the picture. The systems based approach also aids the process of accounting because of the fact that it helps in increase of accuracy, and speed which ultimately helps in the reduction of labor costs. More significantly, the factors of computer based accounting, signify the presence of a powerful tool in the hands of the accountant given the fact that they allow the accounting professional to easily have access to data which could be extracted for the preparation of reports aiding the analyses of information. Reviewing and acting upon a well designed, comprehensive set of reports (in addition to the Financial Statements) will help keep the company on the right financial path. Access to, and knowledge of the system would mean that the process of communication and transfer of data would also be made a lot easier, given the fact that it aids the transfer of data making work easier.                                   Reference:   Desjardins, (2009). An Into To Business Ethics 2E. Tata McGraw Hill. p38   Brooks, L.J., and Dunn P., (2009). Business & Professional Ethics for Directors, Executives & Accountants. Cengage Learning. p.149.     Kale, S. H. (2004), “CRM Failure and the Seven Deadly Sins”, Marketing Management, 13, (September/October), 42-46.   Buttle, F. A. (20010, “The CRM Value Chain”, Marketing Business, (February), 52-55.   Sirivastava, R. K. Shervani, T.A. and Fahey, L. (1999), “Marketing Business Process, and Shareholder Value: An Organizationallly Embedded View of Marketing Activities and Discipline of Marketing,” Journal of Marketing, 63(4), 168-179.   Bland, V., (2003). “10 Steps to CRM Heaven,” Management. May Issue   Get the Best out of Your CRM Choice. Retrieved September, 9, 2010,   Jackson, M. A., (1981). ‘A system of methodology development method’. Nice Journal. P1-25 Das, S., (2007). Customer Relationship Management. Excel Books. pp132-140 Maselli, J. (2001) 'People problems', InformationWeek, 9 July, pp.35–42. Payne, A.F.T. and Frow, P., 2005. A strategic framework for customer relationship management. Journal of Marketing, Volume 69 (4), Read More