MIS - CRM Customer Relationship Management

Success in today’s business world means finding and having customers while making sure they are happy with your product or service. That is why good CRM (customer relationship management) software is key to your company whether it is large, small or just you.

An organization’s Management Information Systems (MIS) is typically divided into functional areas that each support the company’s objectives and goals. One is the Marketing MIS and for this paper we will focus on a subset called customer relationship management (CRM). “CRM programs … help a company manage all aspects of customer encounter.” (1) It involves using computer technology to capture, organize, retain, coordinate and recall information about a customer or prospect at a click of a mouse. A company that is in the business to sell a product or service needs to have customers. A small company needs to keep them even more because they have less and can’t afford to lose any. The importance of those customers is invaluable to the success of that company. So it makes sense that a company would spend the time and effort to identify a software package that can provide them with the necessary functions and tracking tools for success. “One of the best ways for these businesses to retain their customers is through the use of customer relationship management (CRM) technology.” (2) CRM not only provides customer service benefits, but it can be used in others way to assist the company. CRM systems make handling the customers complaints easier too by providing an efficient way to get to the stored data on the customer, track their orders and assistance them to solve the problem. It can be used as a sales tool that can give the competitive edge over another company. While the software captures the customer’s information, i.e. address, phone, product/service purchase date, it can be a sales tool for the company to market to new customers. New data can be loaded into the system for sales people to use to call and sell to others. And now with the ability to access “cloud computing” a company doesn’t have any excuses that the application of CRM is too much of a hassle because of the need for additional software and hardware. “The best CRM applications allow users to store data efficiently. When using traditional software methods, businesses risk losing data because of computer malfunctions. Any CRM application needed is offered on the Web and is purchased on-demand. More importantly, vendors that provide these applications through cloud computing maintain data themselves. Businesses no longer fear loss data and insufficient software programs because storage responsibilities are taken on by vendors” (3)

Some think that the growth of SaaS (Software as a Service) is due to the need to compete in a slow economy and companies see it as a way to maximize their capital. CRM products have seen the need to be available for today’s companies on the “cloud”. “…companies are exploring new mediums to enhance the customer experience through the adoption of SaaS-based CRM. According to a report on forresterresearch.com, SaaS will more than double from 7% of software investment in 2010 to 16% in 2013.” (4)

 

One company that is ahead of the curve is Salesforce. They offer a “cloud” solution that “Forbes names salesforce.com “World’s Most Innovative Company”. (5) Salesforce gives you the ability to manage your customers and prospects by putting together business processes, people and technology. A good CRM combines the needs of customer service and marketing to further a company’s success. “With Salesforce CRM software as a service and our Force.com cloud computing platform, you can mind your customers and your budget at the same time.” (6)

A company’s success is having good relationships with their present and future customers making CRM software a key element for your company’s success. “Customer CRM solutions empower companies to deliver a better, more convenient experience to existing and potential clients. With customer CRM, businesses can significantly increase acquisition, satisfaction, and loyalty.” (7)

CRM is only a small piece of the MIS pie. MIS stands for management information systems which is information that is required to run a company. Marketing is only one of 5 areas that MIS encompasses those being Financial, Manufacturing, Human Resource, Marketing and Others. Marketing MIS is critical for company’s success because we need computer systems to do marketing research, analyze product needs and development, evaluate promotions and advertising, compare and evaluate price points and perform sales reporting. Decisions that need to be made by management require knowledge that the Marketing MIS will supply from information it receives from the outside, the customers and prospects. Knowing how to get and keep the customers is key to the total success of a company.

(1) Stair, Ralph M., and George Walter Reynolds. "Chapter 6/page 264." Fundamentals of Information Systems. Boston: Course Technology, 2010. Print.

(2) http://www.businesscrm.net/small-business-crm/how-does-crm-technology-affect-a-small-business-owner.html

(3) http://www.businesscrm.net/small-business-crm/how-does-crm-technology-affect-a-small-business-owner.html

(4) http://blog.sikichtechnology.com/post/2011/03/17/Understanding-the-Growth-of-Software-as-a-Service-%28SaaS%29-for-CRM.aspx

(5) http://www.salesforce.com/

(6) http://www.salesforce.com/

(7) http://www.business-software.com/crm/what-is-crm/what-does-crm-mean.php

T3.6 Electronic Business

 T3.6 Electronic Business

The predicted growth of Electronic Business or e-business is the driving force behind all the excitement and interest in doing business over the Internet.  One of the better definitions I found of electronic business is “E-business (electronic business), derived from such terms as "e-mail" and "e-commerce," is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners.” (1)  I think up until now we all thought of e-business to include the buying and selling part of business.  But there are other aspects of e-business that we should not over look. 

One of the articles I found was from the U.S. Census Bureau and it related a different view on e-business. “It is useful to think of the electronic economy as having three primary components--supporting infrastructure, electronic business processes (how business is conducted), and electronic commerce transactions (buying and selling).” (2)  Looking at this perceptive, first there is the infrastructure is the hardware, software, and people power that is used to make the processes work. Second is the use of the computer to conduct any kind of business dealings, ie customer focus programs – email blasts, customer support; company process  - such as internal training, videoconferencing, recruiting, company webinars, and company focused programs like inventory tracking, payment processes, links to suppliers.  Finally, the e-commerce transaction is where the computer is used to complete a transfer of ownership of goods or services. And this is where the amazing growth is happening.

It is this e-commerce part of electronic business that is at an all time growth. “This according to Forrester, which is predicting that by 2014 US online retail will grow at a 10 percent compound annual growth rate  to reach nearly $249 billion. Correspondingly, the major Western European nations will grow at an 11 percent CAGR, hitting €114 billion in five years' time.” (3)  The article goes on to present a retail forecast to achieve these numbers:

•   “Online shopping will account for 8 percent of total retail sales by 2014.
•    Three product categories dominate online retail: apparel, footwear, and accessories; consumer electronics; and consumer hardware, software, and peripherals. Together, these represent over 40 percent of total online retail sales.
•    By 2014, 53 percent of total retail sales will be influenced by ecommerce as consumers increasingly use the web to research before purchasing.” (4)

So if e-business is good for the business to business environment, is it good for the consumer market?  Or should we be concerned that this increase on buying goods primarily off the Internet will hurt or close the brick and mortar stores.  Or perhaps this existence of selling and buying over the Internet will be good for business by creating a competitive environment where hopefully the buyer comes out the winner.  Of course time will be the answer.

I refer back to Market America and the site I have talked about before.  They were one of the first to give “cash back” offer to the people who bought from their site.  They are growing in leaps and “ …  was named to Internet Retailer’s Top 500 guide, ranking 54^th in the nation, up from the 66^th spot it held 2008. (5)   Go see what they have.  They do not cater to only one store, but they are the “cyber mall” that is talked about in the book.  Maybe this is how we will shop in the future. All the stores in one place, everyone gets back cash for their efforts, UPS delivery trucks comb the country side and e-business has it hold on all that we do.

E-business is a combination of business hardware and software, people, processes, selling and buying.  It’s not just the buying and selling as many may think. To think that one of the first times “electronic business” term was used was back in 1997 by IBM.  What a long way we have come…and are going.

(1)   http://searchcio.techtarget.com/definition/e-business     

(2)   http://www.census.gov/epcd/www/ebusines.htm

(3)   http://econsultancy.com/us/blog/5702-double-digit-growth-for-online-retail-in-us-w-europe

(4)   http://econsultancy.com/us/blog/5702-double-digit-growth-for-online-retail-in-us-w-europe 

(5)   www.internetretailer.com/top500guide/      www.marketamerica.com/pjsplace

Web Auctions

Web auctions are now one of the top leading ways to sell and buy items. One of the best parts of Web auctions is it brings buyers and sellers together without ever having to meet with each other. Instead of having to go to the store to look at an item that you want and pay full price for, can look at it online on one of the many leading auction sites such as “top 3 rated sites today 1.eBay, 2.uBid, and 3.Bidz.com.”(1)

eBay was the first Web auction site to be created, back on September 3, 1995 by French-born Iranian computer programmer Pierre Omidyar. The first item that was sold on eBay was a broken laser pointer for $14.83. “Omidyar contacted the winning bidder to ask if he understood that the laser pointer was broken. In his responding email, the buyer explained: "I'm a collector of broken laser pointers."”(3) Omidyar knew he had struck a gold mine from that day forward and eBay is now present in over 30 countries with a total asset of 22.003 billion dollars.

There are many advantages to using Web auctions to both buy and sell items. One of the advantages is the fact that most of the time the item is cheaper than it is in the store. Also you have a wide selection of infinite items and many times more than one of the same item so you can pick which item you feel is a better deal, where as when you go to a physical auction there are only a certain amount of items for sale and usually only one of each item. Another advantage is time and effort, “Web auctions present great savings in terms of the time and effort required to purchase items. With a physical auction, you have to physically travel to the venue of the auction, which will cost you money and time. You can participate in a Web auction from the comfort of your living room or office, as long as you have a computer and Internet connection.”(2) When using Web auctions it allows for easy and secure payments whether it is using Paypal, a credit card or a money order, you are protected by the auction site, where as when you go to the auction most of the time you need to have physical cash on you.

On the flip side of things there are also many disadvantages to using Web auctions to buy and sell items. One disadvantage is when a seller either over describes an item or under describes an item. An example of this is when a seller describes an item and tells you ever detail that it has/comes with and when you get a physical item its only half of those things, or when they post an item and the only description it gives is “New” and when you get the item its clearly not “New”. Another disadvantage is the authenticity of an item, especially autographed items. The seller might say it is real and it is indeed real, but it’s a real “copy” of the original autograph. One disadvantage to sellers is fictitious buyers. They bid on your item and win it and then send you an email saying that they live in a foreign country and they are sending a money order and need you to ship it to a fake address and then they never pay you. If you ship it then you lose out on the item and won’t get your money because they delete their account after it. But with how security of the sites and fraud protection is getting better by the day many of these issues are getting resolved without the seller or buyer getting burned.

After people realized eBay was a gold mine and there was money to be made, many more sites began to pop up mimicking around the set up of eBay. With over 85 million eBay users today, Web auctions are still growing and more and more people are using them each year. Today there are now more than 100 different Web auction sites and more are being developed/discovered yearly. Though Web auctions may have some of its disadvantages, the advantages it carries out weighs them tremendously. Overall Web auctions are one of the fastest growing ways to sell and buy items from all over the world at a fraction of the cost.

1. http://auctions.nettop20.com/

2. http://www.ehow.com/info_7814636_advantages-using-auction-purchase-items.html

3. http://en.wikipedia.org/wiki/EBay

T3.3 Research Forum 1 – Cloud Computing

Is Cloud Computing technology worth a company and you taking a deeper look into? The answer would be a resounding YES. Take a look at IBM alone, “Growth in IBM's cloud offerings are also providing a source of growth, as management has noted that cloud related revenue is expected to double in 2011. “ (1) Cloud computing is becoming a major part of the business world today, and a savor for many small companies. With your local computer not needing to do all of the work, your hardware and software costs are decreased. Now your main concern is that your computer is running a good interface software, a Web browser. I like FireFox, but you can use Internet Explorer and others. Interesting, you are probably using Cloud Computing now if you have accounts with Gmail, Yahoo or Hotmail. Unlike AOL which installs application software on your computer, these other email services you are login into their Cloud Computing cluster of computers.

So a business can now sign up for Cloud Computing where its users would log into a Web based service that hosts the applications needed. “The software and storage for our account doesn’t exist on your computer – it’s on the service’s computers cloud.” (2) To further understand, think of the cloud being 2 parts: a front end, the users computer, and a back end, the computer clusters that the cloud company handles. The front end uses the browser to get to the Internet – Firefox – and the back end provides the servers, applications, and data storage. Not to complicate things, but there is another software that is needed to make this work and it is called “middleware, which allows networked computers to communicate. It follows a set of rules called protocols that administer the process.” ( 3)

So the business world is looking at the impact of Cloud Computing for their use. It’s purpose is to provide easy access to computer resources and services. But the term covers any host services that are provided over the Internet. One of the categories is Software-as-a-Service (SaaS) that we studied in the last chapter. This on demand software is accessed by thru the Web. It’s applications include “most business applications, including accounting, collaboration, customer relationship management (CRM), enterprise resource planning (ERP), invoicing, human resource management (HRM), content management (CM) and service desk management. More importantly its growth: According to a Gartner Group estimate, SaaS sales in 2010 have reached $9B, up 15.7% from 2009, and are projected to increase to $10.7b in 2011, up 16.2% from 2010. Gartner Group also estimates that SaaS applications, which accounted for a little more than 10% of the total enterprise software market last year, would represent at least 16% of worldwide software sales by 2014.” (4) The strength in this category is that because the application and the data are hosted in the cloud, the end user can use the service anywhere they can access a computer. 

“Who's Who in Cloud Computing? Some of the companies researching cloud computing are big names in the computer industry. Microsoft, IBM and Google are investing millions of dollars into research. Some people think Apple might investigate the possibility of producing interface hardware for cloud computing systems.” ( 5 )

So in researching the Cloud Computing concept, I discovered that the possibilities are endless. The pros for this kind of computing range from cost savings, to increased ability to access your programs wherever you are and by all those in the company, to the ability to use powerful software applications that you may have been limited to because of costs. Cloud computing may have seemed to be the future, but it is the ‘today’ of computer processing. So checked it out now, do so not only for your usage, but if you are involved in a business, for your business success and growth. Cloud Computing is the future here today, learn it’s strengthens and use it.

I have added an article below that was just published by today on the effect of Cloud Computing on our carbon foot print for you to read. “The results show that by 2020, large U.S. companies that use cloud computing can achieve annual energy savings of $12.3 billion and annual carbon reductions equivalent to 200 million barrels of oil – enough to power 5.7 million cars for one year. “ (6)

Cloud Computing - The IT Solution for the 21st Century

Carbon Disclosure Project

Published July 20, 2011

Email | Print

Tags: Cloud Computing, Energy & Climate, More... Cloud Computing, Energy & Climate, Reduce Emissions

Across business, executives are looking for ways in which they can operate more sustainably and thereby increase their competitive edge. Information Communications Technology (ICT) is seen as a key area of focus for achieving sustainability goals. This report shows that business use of cloud computing can play an important role in an organization's sustainability and IT strategies: improving business process efficiency and flexibility whilst decreasing the emissions of IT operations.

This study used detailed case study evidence from 11 global firms and assessed the financial benefits and potential carbon reductions for a firm opting for a particular cloud computing service. It also demonstrates how projected cloud computing adoption could drive economy-wide business benefits from a financial and carbon reduction perspective in the US.

The results show that by 2020, large U.S. companies that use cloud computing can achieve annual energy savings of $12.3 billion and annual carbon reductions equivalent to 200 million barrels of oil – enough to power 5.7 million cars for one year.

The report also delves into the advantages and potential barriers to cloud computing adoption and gives insights from the multi-national firms that were interviewed.

(1) http://www.thestreet.com/story/11183437/1/ibms-growth-fueled-by-cloud-computing.html

(2) http://computer.howstuffworks.com/cloud-computing.htm

Home > Tech >Computer >Computer Hardware >Networking

(3) http://computer.howstuffworks.com/cloud-computing.htm

Home > Tech >Computer >Computer Hardware >Networking

(4) http://en.wikipedia.org/wiki/Software_as_a_service

(5) http://searchcloudcomputing.techtarget.com/definition/cloud-computing

(6) http://www.greenbiz.com/business/research/report/2011/07/20/cloud-computing-it-solution-21st-century

T2.5 DB Research

What is DB? The term "database" refers both to the way its users view it, and to the logical and physical materialization of its data, content, in files, computer memory, and computer data storage. (1)

In working for a company doing marketing I was introduced to a DB software called ACT by Sage. This company used the Act software to capture leads for calling into and setting appointments for their sales force. 

“Databases are designed to offer an organized mechanism for storing, managing and retrieving information. They do so through the use of tables…. Databases are actually much more powerful than spreadsheets in the way you’re able to manipulate data.” (2) This is so true. We would download the names, addresses, phone numbers and more from Excel spreadsheets. You could also import other data, but we used excel or .xls format. As you know these are tables with columns and rows. But now we could sort the info into workable tables. In ACT we could set up filters that would allow a person to work on a certain group of records. These records could be by state, city or zip, industry, any critique that we chose. The great part about ACT was that you could capture the notes of the calls in the records. This became key in our ability to set up the appointments. Often the person we needed to talk was not the initial person on the call so we needed to call back. With the notes, you had more info than on the first call so we had better hit rates.

Act is totally customizable, meaning that you can take an “off the shelf” software package and make it fit into your business. It is not only for larger companies but can also be smaller companies or a single user. “ACT Database Software is a contact and customer manager which can assist you in organizing daily responsibilities, managing contact information, and communicating more efficiently to expand your business' productivity.” (3) And this DB software does just that. Because of our ability to customize, we became much more productive for the sales represents. Our efforts on the phone allowed them to concentrate on the selling while we managed the leads and set up the “qualified” appointments.

1. http://en.wikipedia.org/wiki/Database
2. http://databases.about.com/od/specificproducts/a/whatisadatabase.htm

3 http://www.avidian.com/act-software/act-database-software.aspx

“Answers to the Questions”

1. The challenges were few. The flexibility if this software was so great that we could make changes as we went. Meaning that if a field needed to be added to the records, we could do so right there and then. Of course the software had an administrator not just anyone could make these changes.
2. The competitive advantages are enormous. Just with the notes section alone, we could profile our accounts and be steps ahead of anyone calling into these accounts to sell the same thing if they did not have a system like ACT.
3. None. Act has become a #1 seller in the contact management field because they have listened to its users. I haven’t had a reason to change anything in my use of the product.

Hardware and Software

Storage

 

Magnetic Disks – A company needs to protect its data and systems by backing up their work. Choosing a backup that provides fast retrieval is key for the company to respond quickly when data is needed. Magnetic disks will provide the company security of not losing their value information. This second storage will be easy for a small company.

 

Input Device

 

Digital Camera – moving into the mobile arena means the need for more pictures. People are move responsive to a visual than just words. Goes back to basic marketing that a picture is worth a 1000 words.

 

Output Device

 

Digital Audio Player – the advancement in this device will make is invaluable for a small company to move into integrating mobile technology into their organization. The ability to show a client the information right on the spot will be invaluable. These devices are so powerful and so manageable that each sales person will need their own.

 

Software

 

Personal Application software – Software Suite – a company needs to stay with the software up grades to stay competitive. With the need to continually update the sales force products they use to sell, the Microsoft Office Suite is a must. This will aid in the use of the digital pictures and the displaying of the product for sale at the customer location. It can also be used to show examples in a spread sheet of the effect of the product/service on customers who are already clients.

 

Workgroup Application software – Microsoft Office 365 – This software will provide the needed access for the company personnel to access the programs no matter where they are working. This will give them access to their Outlook and calendars can be coordinated when necessary. And internal emails can be used to keep everyone aware of activities.

T1. 5 Monitoring Social Networks

I am a new business owner of a local bar/restaurant in my town. We cater to all age groups and all types of people. Our main objective is to make awareness of our bar and to get our name out. We are going to promote all of our different specials and “theme” nights through Facebook, Twitter, Myspace and Four Square.

Through using Facebook we want people to become fans of our page and to “like” us. By doing this it will give us a way to communicate with them and let them know all the things going on at the bar. We also will run contests through our page for various prizes, which in turn will help us to get more business. We will also encourage all of our customers to “check-in” while at our bar, this way it can show who is there and we can capture their info if they are not going thru our Facebook yet. 

With Twitter being a more short sentences and posts, we will use it as friendly reminders as to what is going on that day at the bar. Such as “Monday- All you can eat wing night $10.95!! Come enjoy Monday Night Football!” or “Thirsty Thursday!! Karaoke all night, sing your heart out while you enjoy $2.00 drafts all night!!” Short posts and friendly reminders will help to promote our business and raise awareness to everything that is happening at the bar that day/night.

We will use Myspace to connect more with bands and artists. It will help us attract good bands or artists to come perform live at the bar. By doing so we hope that people who follow the band closely will come and watch them perform and enjoy their time out, to the point where they want to come back again with or without the band.

Social Network is the key to spreading the word and getting the awareness of my new bar out into the surrounding areas to draw the business. Utilizing each in its own special way will be the key to success.

T1.4 General System Concepts

Chapter 1 took the straight approach to spelling out the various types of system software available today. I believe the largest growth will be in the e-commerce or m-commerce areas in the business information systems. By definition, “E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet, especially the World Wide Web. In practice, this term and a newer term, e-business, are often used interchangeably. For online retail selling, the term e-tailing is sometimes used.” (1) Bottom line, all Information Systems collect data, process or manipulate the data so that the end result is information that can be used to accomplish the tasks at hand. The value of this information is totally dependent on how this information helps or effects the decisions being made when using the info. The ability to buy something for your company through use of emails and electronic transfers of information has exploded. No longer is it just limited to between companies, it is now available for business to business, business to consumers, and consumers to consumers.

Today businesses have taken that ability to electronically process orders thru the computer and even a mobile phone and exploded it. They have created ways to gather information – process an order – confirm payment – verify shipping – and collect all the data on you to make you a customer and retain your loyalty. The e-commerce is being used on the Internet by every company that has anything to sell. And now they are adding the m-commerce because our mobile phones are becoming so intelligent. “This impact will only grow as mobile technology, social networking, interactive television and other forms of addressable messaging take hold, and as the generation embracing these technologies becomes tomorrow’s adult consuming populace.” (2)

The concept of e-commerce is all about using the Internet to do business better and faster. It is about giving customers controlled access to your computer system and letting people “serve” themselves. The Internet is like how the phone use to be, a way to communicate to each other. Only now it is without a human being involved. And at the same time you are providing a service to people, you are gathering the necessary data to turn into value information to build and grow your business. This is where the other Information Systems come into play and are needed for your organization to grow: management information systems, MIS; decision support systems, DSS transaction processing systems, TPS; knowledge management systems, KMS.

Below are 2 pictures I copied from the search I did on e-commerce. The one is a clear picture of how e-commerce chain of events is laid out. The other is a representation of how a website – storefront – can process a credit card towards a purchase. As I stated in the first writing, Market America has all of this built into their e-commerce part of the website. They have gone even further and offer you the ability to get cash back on items you buy thru their site to hundreds of store you shop at now. So they are a one stop shopping for 100’s of other stores who have their own e-commerce. E-commerce is here to stay. The unknown is where it will take us tomorrow.

Example of E-Commerce (3)

Example of credit card processing (3)

1 http://searchcio.techtarget.com/definition/e-commerce

2 2 http://www.spencerstuart.com/practices/ecommerce/

3 http://www.bing.com/images/search?q=picture+of+E-Commerce+process&qpvt=picture+of+E-Commerce+process&FORM=IGRE

Week 1. Task 2

As a full time student who works part time in various jobs, I have not been exposed to the business world yet. I do use the computer a lot to do various applications such as paying bills, search for items and answers, and buying items online. So for this assignment I will talk about e-commerce and the effect it has on companies who have turned to using it.

I am involved with an online company called Market America. They started as a small company of people who came up with several products and started to sell door to door, person to person and so on. Today they are one of the leading online retailers in the country. They discovered beyond one on one and took their website to a level that have been talked about on the heels of Amazon.com. Market America started with the people and telecommunications, using the telephone to set up appointments and take orders. Their data was simple, name, address, phone number, and product, but the process to collect and organize the information didn't exist. Then the accuracy of orders, the timeliness of getting the order to headquarters to be filled became a major hurdle that needed to be addressed in order to grow.

Market America needed a ordering system that provided flexibility to be used around the world and was reliable and secure. Their initial software was good but through feedback of users has become a slick user friendly site. Market America realized that the input of data, customers information and their orders, was critical to growth. So they took their e-commerce system added speed, ease, cash-back value, reliable and overall accessibility. Today Market America is growing at a rate faster than Amazon.com did. Their e-commerce is also m-commerce with a cash-back program equal to the big credit card companies and far more diversified. To see more log onto www.marketamerica.com/pjsplace.