Week 7: CRM, Business Intelligence and Knowledge Management MIS5001: Management Information Systems David S. McGettigan Adapted from material by Arnold Kurtz, David Schuff, and Paul Weinberg
Dec 27, 2015
Week 7: CRM, Business Intelligence and Knowledge Management MIS5001: Management Information Systems
David S. McGettigan
Adapted from material by Arnold Kurtz, David Schuff, and Paul Weinberg
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Agenda Prior Lecture Recap
Customer Relationship Management
Business Intelligence
Knowledge Management Discussion (time permitting)
Case: American Express
Next Week
Prior Lecture Recap
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Prior Lecture Recap ERP
From the “ground up” integration of business processes Software solutions include: SAP and Oracle A single application ties together multiple business
functions Benefits of Integration Drawbacks: Cost, Complexity, Culture
Customer Relationship Management
Your most unhappy customers are your greatest source of learning.
Bill Gates, Business @ The Speed of ThoughtUS computer software designer & industrialist (1955 - )
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Customer Relationship Mgmt Use of technology and human resources to
gain insight into the behavior of customers and their value
Objective is to understand customer’s needs, ultimately enhancing service and profitability.
Brings together information regarding customers, sales, marketing, and products
http://www.cio.com/research/crm/edit/crmabc.html
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Customer Relationship Management Multiple Contact Points
The goal is to provide a single, integrated view of all customer activity, available to all employees who interact with the customer.
Feedback, Individual Needs, and Cross Selling Having better information enables workers to
provide better service, meet the individual needs of each customer.
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CRM Supports Three Major Functions Sales:
Evolved from “Contact Management” Usually includes live connection to “back-end” applications.
Marketing: Business Intelligence Data Mining
Customer Service: Computer – Telephone Integration Work flow Data Sharing
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CRM Demonstration SAP Customer Relationship Management
Compliant Handling for Logistics Service Providers
Improving Order Management
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CRM: Management Issues Data Sharing and Data Ownership:
Sales force may not want to share. Some customer service data might not be suitable
for sharing. Privacy Issues
Technology Issues: As with any ERP, CRM can be a high cost, high
risk undertaking.
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CRM: Myths CRM System Guarantees Marketing Success
CRM must be organized by Customer rather than Product
CRM Requires a Large Customer Database
CRM is a “turnkey product”
Source: Gray, Paul. Manager’s Guide to Making Decisions about Information Systems
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Why Does CRM Fail?
50% of implementations fail: Clearly defined objectives Data capture Integration with other systems Complexity of implementation Clarity of ownership Support (especially w/ sales
force) Budget Emphasis on technology
Note: Siebel Systems are now part of Oracle
Business Intelligence
Many difficulties which nature throws in our way, may be smoothed away by the exercise of intelligence.
Titus LiviusRoman author & historian (59 BC - 17 AD)
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Goals of Business Intelligence Knowledge about your customers, competitors, partners,
competitive environment, and internal operations
Enables users to identify and understand the key trends and events driving their businesses
Allows employees to sift through and analyze large amounts of data that the company makes available for them
Also known as Data Mining and OLAP (Online Analytical Processing) Finding non-obvious patterns in data
Data Mining generally implies using statistical techniques correlation analysis clustering to find patterns and relationships in large databases
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What is BI Used For? To perform trend analyses on product, sales,
event (i.e. promotions and advertising campaigns) and financial information. Sales per office or region and then drill down to
lower level details to uncover what is driving the trends.
It is also used for exception-reporting and for budgeting, planning, and forecasting.
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Challenge: Legacy Systems Most organizations (and business units)
historically developed their own custom information systems
These systems need to be connected when Business buy other businesses Business units merge Organizational structure changes
What were the challenges faced by Wendy’s fast food chain in this CIO Article?
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Legacy Systems Issues Technical – How do we hook these things
together? Different systems may have conflicting data
values and formats
Personnel – How do we find people skilled in older technologies?
Documentation may be out of date or non-existent
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Legacy Systems Issues: Integration
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Legacy Systems Issues: Integration Example: what information would we need to assess this gas
station’s performance and understand if it requires additional investment or should be divested?
Source: freephoto.com
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Some Leading BI Vendors Enterprise Query/Reporting:
Actuate Crystal Reports Information Builders /
WebFocus Information Builders Overview
OR Information Builders Demo
OLAP (Data Mart and Cube Based): MicroStrategy (shown right) Hyperion SAP Business Objects Cognos
http://www.microstrategy.com
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Case: American Express Consider, as a whole, American Express’
social strategy. Name and describe the major components of their social strategy? What were the goals of each component? How does each component serve their overall
corporate strategy? How does it tie to their strengths as an organization? What are some of the tangible benefits American
Express hoped to garner from its social strategy? Be specific (i.e., don’t just say “increased revenue”).
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Case: American Express Consider American Express’ use of
external social media platforms. How did their use of Facebook and Twitter differ
from their use of Foursquare? What kinds of data can the company gather by
looking at activity in these social networks? What insight could the company gain into its
customers by analyzing this data? If you were Berland, would you choose the “broad”
option or the “deep” option, as outlined at the end of the case?
Knowledge Management
The only source of knowledge is experience.
Albert Einstein
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Knowledge Management Knowledge is comprised of Insights and experiences
comprise knowledge, either embodied in individuals or embedded in organizational processes or practice
Knowledge management comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences.
Tools include: company intranets, document management, search engines, e-learning, communities of practice, blogs and wikis.
http://en.wikipedia.org/wiki/Knowledge_management
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Communities of Practice Concept
Groups of people who share a concern or a passion for something they do and learn how to do it better as they interact regularly.
What types of problems do they address in the organization?
What are the implications of joining?
How does this differ from Communities of Interest?
http://www.ewenger.com/theory/index.htm
Next Week
Managing Project Priorities