by : Shutao Dong & Kevin Zhu - 2006
Introduction
Firms are increasingly adopting customer relationship management (CRM) systems to improve their interactions with customers (Rigby et al. 2002). CRM systems are enterprise applications that manage business interactions with customers through integrating customer-oriented business processes, including marketing, sales, and customer services (Gefen and Ridings 2002, Karimi et al. 2001). Firms use CRM systems not only to automate customer-oriented business processes to reduce costs, but also to collect and analyze customer data to better fulfill customer needs and improve customer satisfaction (Karimi et al. 2001). Meanwhile, it remains unclear whether such investments can generate significant business payoffs in terms of productivity and profitability (Aral et al. 2005, Rigby et al. 2002). In fact, firms have seen vastly different outcomes of CRM investments. Firms such as First American Corporation and Harrah’s Entertainment have been successful in leveraging CRM systems to improve their customer understanding, product/service quality, cost efficiency, and thus profitability (Goodhue et al. 2002). Some other firms, however, have failed to derive business value from their CRM investment (Rigby et al. 2002). Large-sample data on CRM impact are difficult to get, but some evidence shows that 41% of the firms with CRM projects were either experiencing significant difficulties or close to failure (TDWI, 2000). The mixed evidence on the business value of CRM calls for more research in this important area. In light of this, we propose to investigate whether CRM systems generate productivity and profitability gains for firms, and how long it would take for such gains to materialize, i.e. the lag pattern of CRM value.
Measures of CRM and Its Business Impact
According to the CRM literature (Gefen and Ridings 2002), a CRM system consists of multiple modules including: operational CRM, which supports a variety of customer-oriented business processes in marketing, sales and service operations; and analytic CRM, which analyzes customer data and transaction patterns to improve customer relationships. Operational and analytic CRM modules provide the major functions of a CRM system. In addition to leveraging CRM functions, firms use CRM systems to realize collaborative interactions with customers and business partners through system integration. System integration links CRM systems with back-office enterprise systems (such as enterprise resource planning (ERP) and legacy systems) and web-based e-business applications via Internet-based communication protocols, and connects these systems with those of suppliers’ and customers’ based on common data standards. Further, leveraging CRM systems requires both IT and business managers to have sufficient technical and business skills for carrying out CRM-enhanced operations (Goodhue et al. 2002). More importantly, successful CRM implementation often entails significant organizational transformation due to the complexity of multiple operations involved in managing customer relationships (Karimi et al. 2001). Implementing a CRM system is only part of the needed change. To embrace the new ways of interacting with customers, firms need to align various organizational aspects with their CRM systems, e.g. business processes, strategies, top management support, and employee training . . . . . (baca_selengkapnya )
Firms are increasingly adopting customer relationship management (CRM) systems to improve their interactions with customers (Rigby et al. 2002). CRM systems are enterprise applications that manage business interactions with customers through integrating customer-oriented business processes, including marketing, sales, and customer services (Gefen and Ridings 2002, Karimi et al. 2001). Firms use CRM systems not only to automate customer-oriented business processes to reduce costs, but also to collect and analyze customer data to better fulfill customer needs and improve customer satisfaction (Karimi et al. 2001). Meanwhile, it remains unclear whether such investments can generate significant business payoffs in terms of productivity and profitability (Aral et al. 2005, Rigby et al. 2002). In fact, firms have seen vastly different outcomes of CRM investments. Firms such as First American Corporation and Harrah’s Entertainment have been successful in leveraging CRM systems to improve their customer understanding, product/service quality, cost efficiency, and thus profitability (Goodhue et al. 2002). Some other firms, however, have failed to derive business value from their CRM investment (Rigby et al. 2002). Large-sample data on CRM impact are difficult to get, but some evidence shows that 41% of the firms with CRM projects were either experiencing significant difficulties or close to failure (TDWI, 2000). The mixed evidence on the business value of CRM calls for more research in this important area. In light of this, we propose to investigate whether CRM systems generate productivity and profitability gains for firms, and how long it would take for such gains to materialize, i.e. the lag pattern of CRM value.
Measures of CRM and Its Business Impact
According to the CRM literature (Gefen and Ridings 2002), a CRM system consists of multiple modules including: operational CRM, which supports a variety of customer-oriented business processes in marketing, sales and service operations; and analytic CRM, which analyzes customer data and transaction patterns to improve customer relationships. Operational and analytic CRM modules provide the major functions of a CRM system. In addition to leveraging CRM functions, firms use CRM systems to realize collaborative interactions with customers and business partners through system integration. System integration links CRM systems with back-office enterprise systems (such as enterprise resource planning (ERP) and legacy systems) and web-based e-business applications via Internet-based communication protocols, and connects these systems with those of suppliers’ and customers’ based on common data standards. Further, leveraging CRM systems requires both IT and business managers to have sufficient technical and business skills for carrying out CRM-enhanced operations (Goodhue et al. 2002). More importantly, successful CRM implementation often entails significant organizational transformation due to the complexity of multiple operations involved in managing customer relationships (Karimi et al. 2001). Implementing a CRM system is only part of the needed change. To embrace the new ways of interacting with customers, firms need to align various organizational aspects with their CRM systems, e.g. business processes, strategies, top management support, and employee training . . . . . (baca_selengkapnya )
Artikel lengkap dikompilasi oleh/hubungi :
Kanaidi, SE., M.Si (Penulis, Peneliti, PeBisnis, Trainer dan Dosen Marketing Management). e-mail ke : kana_ati@yahoo.com atau kanaidi@poltekpos.ac.id
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