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Lesson#12
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CBIS from Functional View Point
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CBIS from Functional View Point
CBIS can be divided into subsystems based on how the users are
grouped in the organization. This
grouping of users is in terms of related tasks that are
performed. These conceptual systems are mirror
images of physical systems that are present. These systems are
collectively called Organizational
Information systems (OIS).
12.1 Organizational Information Systems (OIS)
The term OIS views organization as a combination of process
oriented groups whose information needs are
related but independent. All functional systems should work
together for problem solving since each system
specialises in specific domain of information.
12.2 Marketing Information Systems (MKIS)
MKIS is a type of Information System that helps the firm to
achieve following objectives:
o
Identification of
customers for firm‘s products and services.
o
Development of those
products and services to meet customers’ needs
o
Promotion of the
products and services, and
o
Provision of after sale
customer support
Types of Marketing Information
Every information system is designed to capture some sort of
information. Information requirements need
to be defined before the systems are made. While designing
marketing information system, following types
of information should be designed.
Organization
Marketing Information System
Manufacturing Information System
Financial Information System
Human Resource Information System
Marketing Department/Function
Manufacturing Department/Function
Finance Department/Function
HR Department/Function
Organizational
Information
Systems
Information Resource Information System IR/IT
Department/Function
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•
Marketing Intelligence –
information flowing from environment into the environment
•
Internal Information –
gathered within the firm
•
Marketing Communication
– Info flowing from firm to external environment
An MKIS help in proper management and dissemination of all three
kinds of information.
12.3 Benefits of Marketing IS
MKIS helps organizations in efficient channel management.
Following can be identified as some of the
benefits of MKIS.
1. Customer profiles need to be maintained focusing on their
habits and spending patterns. MKIS
helps in maintaining these profiles.
2. Information on what competitors have been upto is also a
critical marketing information. This
should not be taken as espionage on competitors.
3. Forecasts of demand is also a critical part of marketing
analysis. MKIS helps in achieving this as
well.
4. Field sales can also be monitored where sales agents are used
to market products.
5. Customers can be quickly updated based on their information
kept in MKIS.
6. Dealers involved in sale of product can also be monitored to
help enhance revenue.s
12.4 Management Levels in MKIS
MKIS should cater for information requirements at each level,
for instance
Strategic Level
1. Formulation of new sales products, and identifying new sales
opportunities.
2. Planning support for new products and services
3. Monitoring competitors
Knowledge Level
1. Market analysis based on demographics and customer behaviour
Management level
1. Sales performance analysis is required to monitor how to
enhance sales and address related issues.
2. Sales staff analysis is important to see how much of the
sales portion has been contributed by each
of the employees.
Operational Level
1. Taking comments from customers for measuring satisfaction is
a responsibility of the managerial
level.
2. Tracking sales, processing orders and customer support
12.5 New Dimensions in MKIS
Through extensive use of computers in marketing field, newer
concepts are emerging in marketing field,
which are revolutionising the way customers were dealt with.
o
Customer Relationship
management (CRM)
o
Sales Force Automation
(SFA)
o
Call Centres
Customer Relationship Management
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•
Businesses increasingly
talk about fostering relationships with their customers. This is important
because some modern businesses have literally millions of
customers. Hence keeping personal touch
with every individual customer is getting difficult to achieve.
•
Companies are clearly
eager to nurture relationships with their customers. Businesses need to
understand the extent to which consumers want to engage with
their brands. For some
businesses there is
•
Either a strong natural
need – banks
•
Or an emotional
attachment – Fashion retailer, car manufacturer
Benefits of CRM
•
Maintains and enhances
customer base
•
Encourages customer
loyalty
•
Gaining more customers’
wallet-share
•
The more effective a
company's customer retention and defection management strategy, the
less they need to plug the gap with new customers, who are
expensive to recruit.
•
CRM help in establishing
communication to encourage customers to share information about
their
•
Habits,
•
Tastes and preferences
•
Interests in Co’s brand
extension initiatives
•
CRM is a business
strategy that goes beyond increasing transaction volume.
•
Its objectives are to
increase profitability, revenue, and customer satisfaction.
•
To achieve CRM, a
company wide set of tools, technologies, and procedures promote the relationship
with the customer to increase sales.
•
Thus, CRM is primarily a
strategic business and process issue rather than a technical issue.
Reasons for adopting CRM
•
Customers now prefer to
execute transaction in an electronic environment through online-trading.
Also the establishment of customer services centers has also
removed the inconvenience to access
vendor’s physical locations.
•
Due to absence of
physical contact, companies are curious to keep a soft touch in an efficient
manner.
This requires keeping a customer-wise online track of past
correspondence and transactions.
•
CRM reduces cost of
sales and distribution by
•
Targeting advertising to
customers to increase the probability that an offer is accepted.
•
Using web applications
to decrease the number of direct sales people and distribution
channels needed
•
Managing customer
relationships rather than manage products (a change in marketing)
•
CRM minimize customer
support costs by
•
Making information
available to customer service representatives so they can answer any
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query
•
Automating the call
centre so that representatives have direct access to customer history
and preferences and therefore can cross-sell
12.6 Key CRM Tasks
•
Customer Identification
-- Identifying customer through
•
Marketing channels,
•
Transactions,
•
Interactions overtime,
•
Customer Differentiation
– Segregating customers, with respect to.
•
Their lifestyles
•
Attitudes
•
Perception about Co.’s
products
•
Customer Interaction –
Efforts made to retain customers for long-term profitability and relationship.
•
Customization /
Personalization
“Treat each customer uniquely” is the motto of the entire CRM
process. Through the personalization
process, the company can increase customer loyalty.
12.7 CRM Issues
•
Customer Privacy
Customer privacy is an important issue in CRM. CRM deals with
large amounts of customer data
through various touch points and communication channels. The
individual firm is thus caught in an
ethical dilemma – collecting as much information as possible but
still respecting limits for personal
privacy.
•
Software issues
There is little standardized technologies and protocols for CRM
implementation in the market.
Vendors publish new versions of CRM software as frequently as
they can thus adding to client’s
expenses. CRM software requires highly integrated environment
for high productivity, which is rarely
available.
Sales Force Automation
It automates some of the company's critical sales and sales
force management functions, for example,
•
Customer account
management,
•
Forecasting sales,
•
Sales administration,
•
Keeping track of
customer preferences,
•
Sales staff performance.
SFA empowers the sales force to close deals at the customer’s
office and to configure marketing strategies
at home. SFA is providing tools for very highly evolved sales
organizations, organizations that are basically
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marketing machines.
12.8 Call Center
Due to its direct contact with customers, call center is widely
gaining popularity. It refers to a department
within a company or a third-party organization that handles
telephone sales and/or service. Call centers use
automatic call distributors (ACD’s) to route calls to the
appropriate agent. In addition to a call centre,
collective handling of letters, faxes, and e-mails at one
location is known as a contact centre. As computers
gain more and more involvement in marketing field, presence of a
highly efficient and integrated call center
has become inevitable. Call centers should have direct access to
every customer’s track record so as to help
them handle queries in an efficient manner. Modern day call
centers, record the telephonic conversation
with the customers, extract a summary of it, and display it
every time the customer calls so as to help
attendant review entire record.
Call Center-Challenges
Call centre agents are challenged daily to navigate disparate,
non-integrated applications as they attempt to
resolve customer service requests. The call centre should offer
an integrative solution so that customers can
be responded efficiently. Call canter should help cut long
processing times which add to customer
frustration and dissatisfaction with the company.
Manufacturing Information Systems
It is an information system which deals with the
o
Planning, development
and maintenance of production facilities
o
Establishment of
Production goals
o
Availability of
production materials
o
Scheduling
Management Levels in Manufacturing Information System
Strategic level
1. Locating new plant which can save cost
2. Investment in new manufacturing technology
Knowledge Level
1. Distribute knowledge to drive the production process
2. Innovating new forms of manufacturing processes
Management level
1. Monitoring production costs and resources
Operational Level
1. Status of production tasks |
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