Week 7: CRM, Business Intelligence and Knowledge Management MIS5001: Management Information Systems

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
Agenda

Prior Lecture Recap

Customer Relationship Management

Business Intelligence

Knowledge Management Discussion (time
permitting)

Case: American Express

Next Week
2
Prior Lecture Recap
Prior Lecture Recap

ERP
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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
4
Customer Relationship
Management
Your most unhappy customers are your greatest source
of learning.
Bill Gates, Business @ The Speed of Thought
US computer software designer & industrialist (1955 - )
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:

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Marketing:

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Evolved from “Contact Management”
Usually includes live connection to “back-end” applications.
Business Intelligence
Data Mining
Customer Service:
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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
9
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.
10
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
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Business Intelligence
Many difficulties which nature throws in our way, may be
smoothed away by the exercise of intelligence.
Titus Livius
Roman author & historian (59 BC - 17 AD)
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

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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 nonexistent
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Legacy Systems Issues: Integration
decisions
Strategy
Production
Tactics
data
data
data
Operations
data
data
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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:

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Actuate
Crystal Reports
Information Builders /
WebFocus

Information Builders Overview
OR

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Information Builders Demo
OLAP (Data Mart and Cube
Based):
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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?


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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.
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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?
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Knowledge Management
The only source of knowledge is experience.
Albert Einstein
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
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Next Week
Managing Project Priorities