Session 3:Assignment One Question

This week we talked about Customer Relationship Management (CRM) as a process and as a software application. Based on the CRM concepts learned, answer the following questions:

1. List the customer data elements generated when a customer interacts with an airline by (a) making a reservation, (b) using frequent flyer miles, and (c) completing a flight. How does information from CRM improve these interactions?
2. What are the benefits of integrating the sales, marketing and customer support function using a single software package and a centralized database?

Answer

1a. The economic engine of an airline is its reservation system. Using customer relationship management systems and managed services, this critical revenue engine can be transformed from an internally focused, product-based system to a customer-centric, service-based system.
By focusing on the complete customer life cycle (engage, transact, fulfill and service) or "total customer experience" and by implementing CRM strategies across customer touch points enterprise-wide, airlines will gain a comprehensive view of their customers and be able to deliver innovative, differentiated and personalized services. Through a highly secure, interoperable environment, taking a CRM approach will result in increased customer acquisition, retention, lifetime value and operational efficiency.

1b. CRM has enabled much up-selling of higher-end offerings and cross-selling of other product lines to existing accounts. Now, cross-selling and up-selling are fine, as long as the customer wants to know about those other offerings. Otherwise, they may feel a bit taken advantage of, and for good reason. If customer loyalty is to be encouraged by rewarding and not penalizing, then additional selling should be done with discretion and by invitation. It also matters how loyalty is achieved using customer information. There are those that would seek to buy customer loyalty. Through frequent flyer miles, discounted long distance service, and other means of discounting or coupons, customers are incentivized to buy a certain credit card, airline, or long-distance carrier. In the case of airlines, one could say that as the chance to win miles has gone up, the quality of service has declined. A further irony has occurred in airlines, long distance, and credit cards, when the offered price is better for the light user or prospect than it is for the loyal customer. Once again, this isn't exactly a case of rewarding loyalty.

1c. Establishing and strengthening long-term relationships with airline's customers is the key to success. It's the focus of a well-structured and coordinated process of customer relationship management.

The information can increase the profitability of a customer base; acquire more customers, optimize the value of existing customers, or retain the right customers longer. All of these benefits must be achieved with lower costs. As the economic climate continues to become more competitive, the fight over customers intensifies. Of the three choices above, acquiring new customers is the most expensive. Research shows that acquiring new customer costs 5 to 10 times more than retaining an existing one. Studies also show that loyal customers will buy more over their lifetime and are willing to pay a premium for doing business with someone they like and trust. Therefore, while organizations will clearly continue looking for new customers, once acquired, they now know that it is worth a significant investment to keep them. CRM is a way to do that.

2. The benefit of CRM single software package as below:

* Gain a 360-degree view of each customer to easily identify new selling opportunities and make recommendations.
* Enforce efficient and consistent sales processes across sales teams.
* Automate manual processes including lead routing to streamline efficiency and cut the cost of selling.
* Seamlessly process items from initial quote through to invoice within a single interface.
* Easily communicate new offers and products launches by email and mail.
* Create and manage marketing lists that can be used to generate a new source of leads.
* Profile individual contacts to select the right contacts for each marketing message.
* Track the results from phone calls and other communications with contacts

Session Two: Assignment One Answer

Session Two: Assignment One Question





1. Which departments within the company are integrated within the Order-to-Delivery process?
Sales department and warehouse are integrated within the Order-to-Delivery process.

2. Which steps are included in the Order-to-Delivery process?
Salesman received the order from the customer and need to confirm the inventory is enough. They can create the sales order from the SAP system after check the inventory and pricing is correct. Sales department save the record in SAP System, the warehouse can check the order from computer at same time. The storekeeper pick up the goods and completed the order at sales invoice and need to check the customer’s delivery address and schedule. When the storekeeper completed the process, sales department will create the delivery note and packing list from the SAP system. Also email the invoice and delivery note to customer that inform the client what tracking number for this order.

3. What factors would you consider when deciding whether ERP is suitable or not for a small business?
If the SMB (small and medium business) have mass production for different orders in large quantities, it is suitable to be used. For examples, the vendor can deliver the materials on time; the customer can give you adequate lead time for production, etc.
However, if the quantities are small and it has only small quantities in a batch production, ERP may not be the best solution. Many of the SMB is facing small various orders meeting different delivery date even for the same items. If one of the vendors cannot meet the delivery date, the matter production plan will be in chaos and needs to be regenerated every day. The business volume is other criteria to be consider in using ERP. SAP can be the best but it costly for basic set up. The cost for developing the system will be very high especially for company which does not has high turnover. There is other solution but it is not cheap at all.

Session one assigment answer

Session 1: Assignment One Question
This week we talked about the role of information systems in a business (Slide 9 of Lecture 1).Think of a business or organization that you admire, then describe two examples of how that business is supported by information systems. For example, do they use it for operational excellence ? Or do they use it to create new products and services ?

Answer:
I would like to cite two example of information systems for e-commerce website and most useful for client to choose their buying product for easier.
ESDLIFE (http://www.esdlife.com) is provided a services platform for the customers to select their demand like the wedding service, financing, health, shopping and travelling information. They built up several categories to help the consumers organize the difference information and take more choice to select their buying products. Also can save the times to search which company carry what products and the pricing are suitable for them. Most vendors are glad to provide their product information for this website because ESDLIFE always promoted their firm and make some offer at periodical. It can attract more people to browse their website at regular time.
Dell computer (http://www.dell.com.hk) is also a powerful website for the e-commerce and e-business platform for consumer products. This company was a pioneer just use the internet to sell their computer through their website and no need any reseller or retailer to help the distribution. Customer only browses their website that can choose easier for the configuration and budget for the computer products. They provided more optional parts with pricing for the customer select and automatically to create the Proforma invoice to alert the client how much need to pay. At recently, they add on the maintenance and on-site services to provide more service option to their customers.
Both website had the SSL (Secure Socket Layer) function that make security for the transaction and payments and the customers feel relieved to precede their bills by credit card or PayPal system. In the future, most company would like to use the website platform to promote or selling their products in the website that it can save more times to integrate the marketing information and breakthrough the geographical delivery problems.

Grasp learning

Hello everybody,

Some people said we learnt knowledge from school or college also can not apply for our work or daily life. Like pure mathematics, geography or history, most are not useful to help us that built up the career. But sometimes we discuss some topical subject with others, I felt my tank is empty that means did not sensible someone the talking point. Try to think deeply, what is the majority of our learn career in academy ? High marks ? Discipline ? Graduate ? Although these reason is most important for study but I think my aim is how to raise up our appetite for knowledge. If you keep on try to think, try to do, your experience will increase too fast to other people. Think postive !!!