LECTURE 5 18/10/11. Salesforce.com Executive Team Dashboard Illustrated here are some of the capabilities of Salesforce.com, a market-leading provider.

LECTURE 518/10/11

Salesforce.com Executive Team Dashboard

Illustrated here are some of the capabilities of Salesforce.com, a market-leading provider of on-demand customer relationship management (CRM) software. CRM systems integrate information from sales, marketing, and customer service.

Types of Business Information Systems

• What is customer relationship management?

• Knowing the customer

• In large businesses, too many customers and too many ways customers interact with firm

• Customer relationship management (CRM) systems

• Capture and integrate customer data from all over the organization

• Consolidate and analyze customer data

• Distribute customer information to various systems and customer touch points across enterprise

• Provide single enterprise view of customers

Customer Relationship Management Systems

Customer Relationship Management (CRM)

Figure 9-7CRM systems examine customers from a multifaceted perspective. These systems use a set of integrated applications to address all aspects of the customer relationship, including customer service, sales, and marketing.

Customer Relationship Management Systems

• CRM software packages

• More comprehensive packages have modules for:

• Partner relationship management (PRM)

• Employee relationship management (ERM)

• Most packages have modules for

• Sales force automation (SFA): Sales prospect and contact information, and sales quote generation capabilities; etc.

• Customer service: Assigning and managing customer service requests; Web-based self-service capabilities; etc.

• Marketing: Capturing prospect and customer data, scheduling and tracking direct-marketing mailings or e-mail; etc.

Customer Relationship Management Systems

How CRM Systems Support Marketing

Figure 9-8Customer relationship management software provides a single point for users to manage and evaluate marketing campaigns across multiple channels, including e-mail, direct mail, telephone, the Web, and wireless messages.

Customer Relationship Management Systems

CRM Software Capabilities

Figure 9-9The major CRM software products support business processes in sales, service, and marketing, integrating customer information from many different sources. Included are support for both the operational and analytical aspects of CRM.

Customer Relationship Management Systems

Analytical CRM Data Warehouse

Figure 9-11Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm’s customer touch points and from other sources.

Customer Relationship Management Systems

• Business value of customer relationship management

• Increased customer satisfaction

• Reduced direct-marketing costs

• More effective marketing

• Lower costs for customer acquisition/retention

• Increased sales revenue

• Reduced churn rate• Churn rate:

• Number of customers who stop using or purchasing products or services from a company.

• Indicator of growth or decline of firm’s customer base

Customer Relationship Management Systems

• Enterprise application challenges

• Highly expensive to purchase and implement enterprise applications – total cost may be 4 to 5 times the price of software

• Requires fundamental changes

• Technology changes

• Business processes changes

• Organizational changes

• Incurs switching costs, dependence on software vendors

• Requires data standardization, management, cleansing

Enterprise Applications: New Opportunities and Challenges

Knowledge Management…

11

Knowledge Management

12

KM, it’s like riding a bicycle…

13

• Knowledge management systems• Support processes for acquiring, creating, storing, distributing,

applying, integrating knowledge• Collect internal knowledge and link to external knowledge• Include enterprise-wide systems for:

• Managing documents, graphics and other digital knowledge objects• Directories of employees with expertise

Systems That Span the Enterprise

DefinitionsKnowledge Knowledge is a fluid mix of framed

experience, values contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information (Davenport and Prusak, 1998)

Explicit Dimension Tacit Dimension

Knowledge Management An organisation’s ability to effectively acquire, create, retain, deploy and leverage knowledge

15

16

Data

Information

Knowledge

Con

text

Knowledge Hierarchy

The Knowledge Continuum

17

The Knowledge Evolution• Hard and soft data (Mintzberg, 1975)

• Managers get more information and knowledge from face to face meetings than they do from documentation/ repositories (Kefalas,1973; Keegan, 1974; Mintzberg, 1975; Eisenberg, 1984; Davenport, 1994; Davenport et al., 1998)

• “Knowing who to consult” (Keegan, 1974; Simon, 1977)

18

The Knowledge Evolution…• Strategic Scanning (El Sawy, 1985)

• Accommodation Information • Assimilation Information

• Proposed Solution: • “Programs that allow users to record their creative ideas, provide

editing, organizing, and outline facilities that later rearrange those thoughts into topics and give each topic a separate heading and sub-heading”.

19

Explicit and Tacit Knowledge• Explicit Knowledge

• formal / codified• documents, best practices, databases, proposals

• Tacit Knowledge• informal / uncodified• experiential, within employee’s head, • hard to effectively capture and share

20

Knowledge Economy/Society

21

LAND CAPITAL LABOUR

ENTERPRISE KNOWLEDGE

The Knowledge Management Landscape

• Sales of enterprise content management software for knowledge management expected to grow 15 percent annually through 2012

• Information Economy

• 55% U.S. labor force: knowledge and information workers

• 60% U.S. GDP from knowledge and information sectors

• Substantial part of a firm’s stock market value is related to intangible assets: knowledge, brands, reputations, and unique business processes

• Knowledge-based projects can produce extraordinary ROI

U.S. Enterprise Knowledge Management Software Revenues, 2005-2012

Figure 11-1Enterprise knowledge management software includes sales of content management and portal licenses, which have been growing at a rate of 15 percent annually, making it among the fastest-growing software applications.

Management Information SystemsChapter 11 Managing Knowledge

The Knowledge Management Landscape

KM, a fad?• Knowledge is not new

• People in organisations have always sought, used and valued knowledge

• Companies hire for minds rather than hands

24

What’s your Strategy for Managing Knowledge? (Hansen et al., 1999)

• Codification Strategy • Computer centred• Captured and stored in database

• Personalisation Strategy• Associated with an individual• Shared person to person

25

People Broker• Locate “experts” to help solve business problems

• Link “knowledge holders” to “knowledge seekers”

• Transfer valuable “Tacit” Knowledge

26

Role of the Chief Knowledge/Learning Officer

• Build organisational knowledge culture

• Create knowledge management infrastructure

• Make it all pay off

27

Learning Organisation • “the sum of individual knowledge used in the value

creation process and the knowledge embedded in collective action”. (Von Krogh et al.,1996, pp.227)

• Organisations ability to :• Have a memory • React• Make decisions

28

Knowledge Management and IS

• “‘Techknowledgy’ is clearly part of Knowledge Management” (Davenport and Prusak, 1998)

• KM is 80% about organization, and 20% about IT

29

Basic Features of a Knowledge Management System (KMS)• Storage • Publishing• Subscription• Reuse• Collaboration• Communication

30

Searching and Filtering Knowledge

• Knowledge should be • Intuitively accessible• Searchable to find relevant knowledge• Inform how things get done

• Alternatively you should be able to connect to experts

31

32

KM Technology

• Solution which complements strategy• Technology is an enabler

• Customized solutions which integrate with work processes• Non invasive• Build on Web and Email platforms

• Combination of tools and technology• Search / Categorization / Messaging / Collaboration

33

Examples of implemented KMS- Pharmaceutical

• Business• Prosthetics manufacturer

• Technology • LINK (Leveraging Internal Knowledge)

• Web tool facilitates• Expert finder

• Describes people who might be working on things that you might be working on

• Ability to index sent items folder • Enables a user to build a personal work profile

• “Brokers Discussions”

34

Continued…• Making it pay

• Reduced length of time to uncover knowledge related to a clinical trial by finding existing experts in the area within the organisation

35

Manufacturing (1)• Business

• Box design and manufacturer

• Technology• InnoBook: An interactive database of box design concepts,

continually updated by over 300 designers

• Utilised by 250 sites across Europe

• Each design department has access to all designs and uses the system to search for base designs when an order is placed

36

Continued…• Designers motivated to contribute their box designs to the repository

• Initial reluctance to the utilisation of designs contributed to the system by other departments, question mark over the quality of the design not produced by the local team

• Making it pay• overcomes localisation of box design knowledge• avoiding ‘reinventing the wheel’

37

Manufacturing (2)• Business

• Multinational data storage device manufacturer

• Technology• Primus a knowledge repository for customer solutions

• Implemented by Customer Service Team in two locations – European and US

38

Manufacturing (2)

•Objective• to manage customer support knowledge issues by breaking down

a problem or situation into its knowledge components

• to classify knowledge about the problem received or add new knowledge about the problem

39

Continued…• Making it pay

• build a knowledge base of solutions and solve customer’s problems in a more time efficient and effective manner

• to provide an integrated approach to problem resolution and a solution for managing the knowledge across the CS group

40

Conclusions?

41

• People are the key to successful knowledge management

• IS may be identified as one factor that can enable the capture, storage, creation and dissemination of organizational knowledge

But:

The focus on utilising organizational knowledge should be on a dialogue between two individuals or a community of practice and not knowledge objects stored in a database (Hansen et al., 1999)

42

43