Introduction
With the dynamic nature of the global business environment and increasing competitive pressure, organizations are shifting from product-focused strategy to consumer-focused strategy. With the advent of internet, consumers are becoming more knowledgeable and more aware of the various opportunities available to them. The internet has provided easy access to new products and access to more options leading to an expanded competitive advantage for the
consumers, greatly enhancing their choices, value and pricing flexibilities in many cases.
Customer retention and loyalty has become a nightmare to many organizations, and organizations are now involved in what can be termed “a relationship competition” between organizations and their clients, as customers can switch from one product to the other at the
click of the computer mouse. In order to counter this phenomenon organizations are investing heavily in technologies enabling a customer-focused relationship marketing strategy. With tremendous growth in e-business and web-based services, organizations are therefore shifting to an internet based customer relationship management, hence the birth of electronic customer
relationship management (E-CRM).
In this report a comprehensive analysis of how IBM uses electronic customer relationship management (ECRM) to gain insight and understanding of their customer’s needs and want is carried out and also how to improve customer’s relationship by satisfying those needs.
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Table of Contents
1 Introduction
2 E-CRM Backgrounds and Related Theory
2.1 What is E-CRM?
2.2 Elements of E-CRM
2.3 Different Approaches to E-CRM
2.3.1 Operational CRM
2.3.1.1 Sales Force Automation
2.3.1.2 Customer Service and Support
2.3.1.3 Enterprise Marketing Automation
2.3.2 Analytical CRM
2.3.3 Collaborative CRM
2.4 A Single View to Customer
3 Introduction to IBM
3.1 Problem Background
3.2 Old Way of Interacting with Customers
3.3 Understanding the Customers
3.4 Re-engineering of customers relationship
3.5 Impact of E-CRM on IBM Operations
4 Conclusion
5 Recommendation
Objectives and Topics
The report aims to analyze how IBM leveraged information technology to re-engineer its traditional customer relationship management processes, transitioning to an electronic-based system ("Inside IBM") to regain market share, enhance customer satisfaction, and provide a unified, customer-focused organizational identity.
- The transition from product-focused to consumer-focused business strategies.
- The core concepts and functional components of E-CRM.
- IBM's historical shift in customer interaction and service delivery.
- The role of technology in knowledge management and process re-engineering.
- Strategic outcomes and benefits of implementing an integrated, network-centric CRM platform.
Excerpt from the Book
3.4 Re-engineering of customers relationship
With a better understanding of customers and their needs, the task force set form to design and implement an electronic based CRM (E-CRM) called “inside IBM”. They reasoned that, the new CRM should be customer-focused instead product-focused and set about leveraging information technology, internet and IBM intranet to accomplish customer relationship management. The task force aimed to design a system that will present IBM as single entity to its customers and to replace the broken link between it and the customer with the aim of increasing customers’ satisfaction, sales, profitability, market shares and return on investment (Massey et al, 2001).
Inside IBM was designed in such a way to interface seamlessly with customers who are able to access the online service on a 24 hours basis. It provided services such as announcement, product information, educational services, and order fulfillment etc, hence increasing customer’s awareness of knowledge-based resources. Inside IBM provided support to varying degrees of customers need. Human contact was made to be a last resort for those who actually needed such contact. It provided a single interface to the customers as queries and enquiries are directed to an expert who provided ready response interactively to the customer. Through inside IBM, a database of customers was created, updated and maintained and this information was made readily available to service and support personnel. Inside IBM helped IBM to gain a more understanding of its customers and their products need and to be able to design a customer-based product and service (Massey et al, 2001).
Chapter Summaries
1 Introduction: Provides an overview of the global business shift toward consumer-focused strategies due to internet growth and increasing market competition.
2 E-CRM Backgrounds and Related Theory: Explains the definition of E-CRM, its key elements, and the three main approaches: operational, analytical, and collaborative CRM.
3 Introduction to IBM: Details the company's historical background, the specific market challenges it faced, and the subsequent re-engineering process via the "Inside IBM" initiative.
4 Conclusion: Summarizes the necessity of adopting E-CRM as a strategic response to changing market environments and customer needs.
5 Recommendation: Offers practical guidance for organizations, emphasizing management support and the importance of viewing technology as a medium for building customer relationships.
Keywords
E-CRM, IBM, Customer Relationship Management, Information Technology, Knowledge Management, Market Share, Customer Loyalty, Re-engineering, Operational CRM, Analytical CRM, Collaborative CRM, Inside IBM, Consumer-focused Strategy, Business Process, Digital Transformation
Frequently Asked Questions
What is the primary focus of this report?
The report examines how IBM utilized Electronic Customer Relationship Management (E-CRM) technology to overcome a decline in market share and improve customer interactions.
What are the core components of an E-CRM system?
The core elements include a customer interaction system, integrated management channels, and analytical tools for capturing and sharing knowledge.
What was the main research objective?
The objective was to analyze how IBM re-engineered its customer relationship processes by implementing the "Inside IBM" system to become a more customer-focused entity.
Which methodologies are discussed in the context of IBM's CRM?
The report covers the use of cross-functional task forces, customer satisfaction surveys, and the integration of front- and back-office processes through information technology.
What topics are covered in the main body?
The body covers E-CRM theory, the historical context of IBM's market struggles, the problem-solving approach taken by the task force, and the resulting operational impacts.
How would you characterize the keywords of this document?
The keywords highlight the intersection of digital technology, business strategy, and effective customer relationship management.
Why did IBM decide to launch the "Inside IBM" project?
IBM needed to address declining sales and market share caused by increased competition and an outdated, fragmented approach to interacting with customers.
What was the specific goal of the "Inside IBM" interface?
The goal was to present IBM as a "single entity" to the customer, providing seamless, 24/7 access to services and support while reducing the need for direct human intervention unless necessary.
How does the author define the shift in organizational strategy?
The shift is described as a transition from a "product-focused" strategy to a "consumer-focused" strategy, necessitated by the empowerment of customers through the internet.
- Quote paper
- BA Christian Uwagwuna (Author), 2011, The IBM Model of Electronic Customer Relationship Management, Munich, GRIN Verlag, https://www.grin.com/document/170555
