The present report looks closer at the eBusiness model, the Creative Kitchen, which was developed in a previous assignment in the subject HGM 554 eBusiness Design for Competitive Advantage. The Creative Kitchen is a virtual community targeted at people that are interested in cooking and meeting others with the same interest. The aim of the business model is to facilitate personal atmosphere and to build up contacts among the community members. The Creative Kitchen is an interactive website that constantly collects information about its users to answer their individual needs and wants. Partnerships with six cooking schools in Germany, with sellers of kitchen accessories and utensils and with the online bookshop "amazon.de" are formed.
The main aim of this report is to focus on a specific business function within the business model. The Customer Relationship Management (CRM) side of the business model is looked upon in detail. The main reason for choosing to focus on CRM is the growing importance for a business to be able to handle the large amount of information and data it has access to and can create in today′s society (Bergeron, 2002).
The focus on CRM include looking at what kind of information that needs to be collected from the customer, how it is collected and what it is going to be used for. The collected data are; user recognition data, demographic customer data, site traffic and usage, purchasing behaviour, customer feedback and informational needs. Further the report describes the needed CRM operations and the benefits created for customer, partners and for Creative Kitchen itself. This includes multi channel contact centre, e-mail response management and coordinated campaign management.
The report concludes with underpinning that the technological applications are simply the mean to generate strong relationships for mutual benefit between customers and the networked business of the Creative Kitchen. However, by understanding both the limitations and advantages of implementing a CRM system, it can help Creative Kitchen to become a sustainable business for the future.
Table of Contents
Executive Summary
1 Introduction
2 Description of the Creative Kitchen’s business model
3 System Components
3.1 Resources
3.1.1 Architecture and related costs
3.1.2 Infrastructure
3.2 The Creative Kitchen as a system
4 Creative Kitchen – a virtual community supported by CRM
4.1 Key Success Factors
5 Scalability and sustainability of the Creative Kitchen
5.1 Profitability
5.2 Differentiation from Competitors
5.3 Competitive advantage
6. Customer data collected on the website
7. Outsourcing of the CRM functions
8. CRM cooperation with the business partners
8.1 Centralized contact center
8.2 Coordinated campaign management
9. Partner Relationship management
10. Internal knowledge management and decision support systems
11. Considerations
12. Conclusion
Objectives and Topics
This report aims to analyze the integration of Customer Relationship Management (CRM) within the eBusiness model of "The Creative Kitchen," a virtual community for cooking enthusiasts. It explores how CRM strategies and technological applications can effectively manage customer data to build sustainable business relationships and generate competitive advantages in a "click-only" market environment.
- Analysis of CRM implementation within a virtual community business model.
- Methods for collecting and leveraging customer data to enhance service delivery.
- Strategic importance of partner collaboration and knowledge management.
- Evaluation of scalability, sustainability, and competitive differentiation through technological integration.
Excerpt from the Book
1 Introduction
This report is initiated to develop an eBusiness model design for a selected business function. Based on the Creative Kitchen, a virtual community for cooking lovers, the focus shifts toward the implementation of customer relationship management (CRM). The CRM market is predicted to grow from $8 billion in 1999 to more than $24 billion by 2003 (Dyché 2002). In comparison to the traditional product orientation with its major concern to sell as many products and services as possible, the integration of CRM requires a customer-centric business philosophy. Although today’s worldwide companies are declaring themselves to be customer-focused and support this statement by investing millions of dollars in CRM-related technologies, they often neglect that there is more than just buying the right technology. CRM is not only about technological applications, but also about the creation of strong relationships that increase customer value and motivate customers to remain loyal to the business (Dyché 2002). The Creative Kitchen is a virtual community that integrates customer information with business action and views CRM as a coherent business strategy embedded in the culture and way-of thinking of the business.
The focus on CRM was chosen because of the growing importance of being able to handle the large amount of information and data that an eBusiness company has access to and can create in today’s society (Bergeron, 2002). To be able to handle this information in such a manner that it becomes a competitive advantage for the business is one of the key focus points for the Creative Kitchen. By collecting information and utilising it to it’s fully potential it can help a company to become better at offering the right product or service to the right customer at the right time and price, via the right contact point (Kalakota and Robinson, 2001). Since the Creative Kitchen is a “click-only” business, the strategic assets of the company mainly lie in how they are able to build and maintain relationships externally and internally. By successfully understanding and implementing CRM, the Creative Kitchen can become a competitive and sustainable business for the future.
Summary of Chapters
1 Introduction: Provides an overview of the report's focus on CRM integration as a core strategic element for the virtual community "The Creative Kitchen."
2 Description of the Creative Kitchen’s business model: Outlines how the website functions as a virtual community that creates value through user-contributed content and strategic partnerships.
3 System Components: Details the tangible, intangible, and human resources required to underpin the business value and technological architecture.
4 Creative Kitchen – a virtual community supported by CRM: Defines the critical success factors for the community, emphasizing interaction, customization, and relationship management.
5 Scalability and sustainability of the Creative Kitchen: Examines revenue streams, differentiation strategies, and the attainment of competitive advantage.
6. Customer data collected on the website: Categorizes the types of customer data collected and explains how they are leveraged to improve the business.
7. Outsourcing of the CRM functions: Discusses the strategic decision to outsource CRM operations to Siebel Systems Inc. to manage expertise and cost effectively.
8. CRM cooperation with the business partners: Analyzes the implementation of a centralized contact center and coordinated campaign management between the partners.
9. Partner Relationship management: Highlights the importance of collaborative information sharing between the community and its business partners to foster mutual benefits.
10. Internal knowledge management and decision support systems: Explains how the company transforms collected data into tacit knowledge for effective decision-making.
11. Considerations: Addresses essential challenges such as privacy, data protection, and building trust in an electronic commerce environment.
12. Conclusion: Synthesizes the importance of CRM as a pillar for building a sustainable business through strong, mutually beneficial relationships.
Keywords
eBusiness, Customer Relationship Management, CRM, Virtual Community, Competitive Advantage, Data Collection, Partner Relationship Management, Customer Loyalty, Knowledge Management, Web Architecture, Sustainability, Business Strategy, Customer-centric.
Frequently Asked Questions
What is the core focus of this report?
The report focuses on the implementation of Customer Relationship Management (CRM) within the eBusiness model of the virtual community "The Creative Kitchen."
What are the primary thematic areas covered?
Key themes include CRM strategies, data collection and utilization, partner collaboration, internal knowledge management, and the technical and ethical considerations of running an eBusiness.
What is the ultimate goal of the business model?
The aim is to facilitate personal atmosphere and build relationships among community members, while providing expert knowledge and services via strategic partnerships.
Which methodology is employed in the study?
The study uses an analytical framework to interpret the company as a holistic system, evaluating how CRM functions support customer-centric business strategies.
What does the main body address?
It covers system components, scalability, CRM operations (such as centralized contact centers and campaign management), and the transformation of data into actionable knowledge.
Which keywords best characterize this work?
The work is best characterized by terms such as eBusiness, CRM, virtual community, competitive advantage, and customer loyalty.
How does "The Creative Kitchen" generate revenue?
Revenue is generated through commissions on cooking classes and kitchen accessories, a percentage of book sales via amazon.de, and displayed advertising.
Why is privacy considered a significant factor in this business model?
Privacy is prioritized because the CRM system relies on collecting high levels of personal data, necessitating compliance with data protection laws to maintain customer trust.
- Quote paper
- Dipl. Betriebswirtin, MBA Sandra Burgemeister (Author), 2000, The Creative Kitchen, Munich, GRIN Verlag, https://www.grin.com/document/10545
