Information System For Management

Published Date: 02 Nov 2017

How CRM system can help an organization to grow? Explain with two examples.

Answer : Customer relationship management (CRM) is a model for managing a company’s interactions with their existing as well as future customers. It involves using technology to organize, synchronize and automate sales, marketing, customer service, and technical support.

CRM Software is one of the latest technologies which helps in building customer relationship which can help and shows new ways of providing better customer service.

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In today’s competitive world it is very difficult but very necessary to acquire new customers and repetitive business and sales through customer loyalty.

CRM system is loaded with information of each and every customer from name to issues he has with the organization. Anything related to organization and customer. With the information one can greet customers by name and make gift suggestion based on upcoming anniversaries or other occasions stored in a customer profile.

Customer relationship management (CRM) is one of the application of technology, which help in building strategy to learn more about the customer needs and behaviors and plan according to that in order to develop better relationships with the customer. It is kind of a business than a technical solution to deal with customers in a better and efficient way.Successful CRM relies on the use of technology.

Crm s/w can be setup according to company’s requirements.

A huge benefit can be created with the better relations with your existing customers, which can lead to:

Increasing the sales based on historic trends through better timing due to anticipating needs

CRM also identifies the customer needs more effectively by understanding their specific requirements.

It does cross-selling of other products by marking and showing better alternatives.

Communication becomes more effective and targeted marketing is done aimed specifically at customer needs

Moreover it is like a personal approach and the display of latest products and services is done in order to win more business in the future

Ultimately CRM leads to enhanced customer satisfaction and retention, making sure that your good reputation in the industry continues to rise and reach a new level.

It gives us a broad idea as per which customers are most profitable and how to deal with unprofitable customers in a cost effective way.

Every customer needs change over time, technology makes it easy to find out more in detail about customers and ensure that everyone in the organization can go through this information.

Below are two examples related to the CRM system which shows us how it helps a particular organization to grow and maintain its customers:

In a very simple case of a network company like Vodafone CRM is used on daily basis. With the help of CRM system entire details of all their customers is stored in a proper database. So the company can get in touch with its customers in a very easy manner, give them details about their current offers, try to get a feedback about their services, they may even get in touch with people using other networks and give them a detailed information about their services and try to gain customers in this way thus maintaining their existing and future customers in a very cost effective manner.

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Similarly the CRM system can also be used by an electronics company. The details of the customers can be kept and further be contacted for promoting new products, giving information about sale offers which are going on, giving best wishes on birthday anniversaries etc , ask if there is any servicing requirement and so on. Thus by promoting a product in a systematic manner using the CRM system the company can maintain their existing and future customers.

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Question 2 : Why do you think prototyping has become a popular way to develop new computer based business systems? Does prototyping replace or supplement traditional information systems development? Explain

Answer :

Prototyping is the process of building a model of a system. In terms of an information system, prototypes are designed to help system engineers build an information system that is direct and easily accessible to manipulate for end users. Prototyping is a process that is a part of the analysis phase of the systems development life cycle.

There are many benefits of prototyping which makes it a popular way to develop new computer based business systems. The first and the most important one is that it reduces the cost and time of development in an excellent manner. Also it requires user involvement so the developers receive a quantifiable user feedback from the customers then and there. It facilitates implementation of the system since users know what to expect beforehand so the chances of complaints later reduces tremendously. All these factors get along and result into high user satisfaction thus giving the business a much fast and better growth.

Yes, prototyping does replace or supplements the traditional information systems development.

Traditionally we never made a model as per how the project is going to go about. Now since we already have a brief idea as per how the process will be taken ahead the various points such as complaints from customers, cost required for the completion of project, time required, raw materials and each and every thing to be considered will be prepared beforehand.

Advantages of Prototyping:

Reduces development time & cost.

User involvement takes place.

Feedback is received by developer.

System implementation takes place since users expect to know the result.

High user satisfaction.

Developers are shown future system requirement which are potential.

Disadvantages of Prototyping

Can lead to insufficient information .

Users get angry if the performance of the new system is not the same as the older one.

Developers can become too attached to their prototypes.

Systems can be left incomplete before they are ready.

Incomplete documents leads to incomplete information.

For Eg. : While taking up a project of a building construction a complete prototype model can be made which will make it easy to understand as per how to go ahead with the project, what will be the overall cost, how much time will be required, amount of labor, material etc. Now since we will have all these information with us from the start we can work in a much more efficient manner and keep in mind the points where there are chances of excess expenditure and thus make the project more cost effective.

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