The Impact of Technological Change on Business Activity | jogglerwiki.info
The better a business can manage the relationships it has with its customers Customer relationship management (CRM) is not just the application of technology, but is a A half-way house between custom and outsourced solutions, this involves Does the supplier offer any form of evaluation software so that you can try. Technology has revolutionized the way companies conduct business by enabling small businesses to level the playing field with larger. Large amounts of resources have been and continue to be invested in information technology (IT). Much of this investment is made on the basis of faith that.
Stage 1 - Collecting information The priority should be to capture the information you need to identify your customers and categorise their behaviour. Those businesses with a website and online customer service have an advantage as customers can enter and maintain their own details when they buy.
Stage 2 - Storing information The most effective way to store and manage your customer information is in a relational database - a centralised customer database that will allow you to run all your systems from the same source, ensuring that everyone uses up-to-date information.
Stage 3 - Accessing information With information collected and stored centrally, the next stage is to make this information available to staff in the most useful format.
Stage 4 - Analysing customer behaviour Using data mining tools in spreadsheet programs, which analyse data to identify patterns or relationships, you can begin to profile customers and develop sales strategies. Stage 5 - Marketing more effectively Many businesses find that a small percentage of their customers generate a high percentage of their profits. Using CRM to gain a better understanding of your customers' needs, desires and self-perception, you can reward and target your most valuable customers.
Stage 6 - Enhancing the customer experience Just as a small group of customers are the most profitable, a small number of complaining customers often take up a disproportionate amount of staff time. If their problems can be identified and resolved quickly, your staff will have more time for other customers.
Potential drawbacks of CRM There are several reasons why implementing a customer relationship management CRM solution might not have the desired results.
There could be a lack of commitment from people within the company to the implementation of a CRM solution. Adapting to a customer-focused approach may require a cultural change.
There is a danger that relationships with customers will break down somewhere along the line, unless everyone in the business is committed to viewing their operations from the customers' perspective. The result is customer dissatisfaction and eventual loss of revenue.
Poor communication can prevent buy-in. In order to make CRM work, all the relevant people in your business must know what information you need and how to use it. Weak leadership could cause problems for any CRM implementation plan. The onus is on management to lead by example and push for a customer focus on every project.
If a proposed plan isn't right for your customers, don't do it. Send your teams back to the drawing board to come up with a solution that will work. Trying to implement CRM as a complete solution in one go is a tempting but risky strategy. It is better to break your CRM project down into manageable pieces by setting up pilot programs and short-term milestones.
Consider starting with a pilot project that incorporates all the necessary departments and groups but is small and flexible enough to allow adjustments along the way. Don't underestimate how much data you will require, and make sure that you can expand your systems if necessary.
You need to carefully consider what data is collected and stored to ensure that only useful data is kept. Avoid adopting rigid rules which cannot be changed. Rules should be flexible to allow the needs of individual customers to be met.
Therefore it is vital to choose your supplier carefully. Making the wrong choice could be expensive and even jeopardise your business. Before implementing a solution based on CRM technology, you might want to ask any potential suppliers the following questions: How long has the supplier been established?
What are the specific costs associated with the product, i. Does the supplier offer any form of evaluation software so that you can try before you buy? How much is charged for technical support? Does the supplier provide consultancy and, if so, at what rates? Is the system scalable? If your customer base grows will the system expand to cope? Can the supplier recommend any third-party developers that make use of their core CRM products? Is there an active independent user group where experience and ideas can be freely exchanged?
Can the supplier provide references for businesses in your industry sector using their software? Does it offer training in the CRM solution and, if so, at what typical cost? During the selection process, an effort was made to include companies from sectors that have been affected by the recent recession, such as the manufacturing and building industries.
Effort was also made to select several companies from the newly privatised utilities, water and electricity, and from sectors that had been affected by government legislation, such as the recently deregulated television and financial sectors.
Additional financial measures used include turnover, profitability, and market share.
- Building the relationship between sales and marketing
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The Sample Following the selection procedure twenty-five companies from a range of industrial sectors manufacturing, media, leisure, retail, financial, water and electricity were contacted to be included in this study. As a result of the contact procedure, the following twelve companies agreed to take part in the project: The data collected were analysed within the framework of the research model.
This analysis concentrated on the variables which lead into effective information systems, namely: An attempt was then made to determine to what extent the organisations surveyed had developed effective information systems. Technology All companies had invested heavily in information technology IT as a delivery mechanism for information provision.
The key points identified in this analysis are given below: The majority of companies surveyed see IT as essential to their business. Companies have emphasised the importance of balance between involvement of user departments and technical IS or IT functions in the design of information systems. The majority of companies benefited from top management commitment to IT and information in general. IS development in the more successful companies has been led by the CEO.
On the whole, company libraries have been slow to take on board new technology.
The Relationship Between Sales and Marketing and the Impact to Your Business • PureMatter
Company Knowledge Base An attempt was made to identify what constitutes the knowledge base of the companies surveyed. The extent to which this knowledge base is at risk through dependency on individuals rather than on systems was also assessed.
The main conclusions were as follows: All the companies surveyed felt their knowledge base relied more on individuals rather than on systems.
All the companies acknowledged the problems associated with having a knowledge base which relies on individuals. One company is taking steps to systematise its knowledge base.
The need to conform to industry regulations along with the sensitivity of staff and customers has prevented some firms from introducing recent IT developments for information systems.
Company libraries are underfunded and understaffed, and are therefore reluctant to take on a larger role in the organisations. Company libraries see themselves as service departments sitting on the fringe of the organisations.
Information Sensitivity In order to assess the information sensitivity of key staff a number of questions were asked.
The Impact of Technological Change on Business Activity
It is here defined by the extent to which senior staff are able to discriminate between internal and external information, and their view of the relationship between internal and external information resources. Linked to this is the sophistication of their understanding of the concept of information management. Senior staff in the more successful companies surveyed are taking on board information management issues. The majority of the companies circulate information on a regular basis, however the major part of this information is generated internally.
An increasing number of companies are using information technology to support their information gathering and dissemination. A number of companies hold information at too high a level within their organisations. Information Ethos This section examined how far the companies surveyed can be described as having an information ethos, through which the value of information of information is conveyed to all workers.
This is an area of research highlighted in recent literature as important is assuring business success  . Information is seen as a valuable asset by the majority of the companies surveyed.
The creation of an information ethos or culture is seen as an important step towards ensuring continued success by the majority of the companies surveyed. This creation of an information ethos is part of an ongoing process of change management, partly initiated by the widespread introduction of information technology into the workplace.
Those companies which have successfully implemented change and created an information ethos have done so with the backing and leadership of the senior managers, and the CEO in particular.
Conclusions This research has highlighted some important issues that companies now face in the modern business environment. The recent mass introduction of IT has confused the issue of information management and information provision.
In the majority of the companies surveyed, the traditional information specialist is playing a diminishing role in information provision.
The role is being taken over by IT personnel who put the emphasis on effective storage and retrieval of information, rather than the quality of the information itself. However, many of the senior staff in the more successful companies surveyed are now taking information management issues on board.
The view that information is a valuable asset is almost universally accepted by the companies surveyed. Top management commitment to information as an asset has emerged as a major factor in the implementation of successful information systems.
The research has also highlighted the emphasis many companies put on internally-generated information. One reason for this may be that the companies surveyed are high performers in their sector.
The research proved the legitimacy of the research model and validated the interconnected variables studied in the model.