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