To,
The Authors of the Business proposal of CRM
Subject – Noting the achievements of the new CRM system by the original authors
This email is in correspondence with the business proposal proposed by the original authors in relation to a new and improved CRM system for Tangle Corp. After reading and scrutinising the business proposal of the benefits of the new system, a clear assessment can be made that the idea of using a new vendor, Super CRM, for a new system may well be expensive but will go a long way for Tangle Corp. in realising its business objectives. The business proposal has been able to cover most of the aspects in creating a new system for the staffs and the customers. Removing the bottlenecks and paving way for a better tomorrow for Tangle Corp. was the fundamental objective of the business proposal prepared by the junior management team.
The proposal clearly mentions the cost involved in creating new IT infrastructure, new software, training staff, new vendor and a new way of catering to customers. Tangle Corp. business is expanding and with it, it needs a new CRM system that can provide information in real time at all the places. The junior management team clearly defines the role of the management, staffs and Super CRM for the betterment of the company.
The solution outlined by the team is the best possible solution for Tangle Corp., thought is expensive but will go a long way in building customer trust in the company. The junior team made itself available at all times to the management for the migration of the old to the new CRM system and are proactive in suggesting ways for the growth of the business. Thus, the SaaS model explained by the team is the best choice now for Tangle Corp. to emerge as a top widget manufacturing firm that serves its customers at all times.
Yours’ Sincerely.
Table of Contents
EMAIL. 2
INTRODUCTION.. 4
BACKGROUND.. 5
THE ISSUE. 6
In Case of Manufacturing. 6
In Case of Administration. 6
In Case of Sales. 7
THE SOLUTION.. 7
The IT Infrastructure. 8
The CRM Software System.. 8
The SaaS Model 8
Super CRM… 9
BENEFITS. 9
THINGS TO CONSIDER BEFORE MIGRATING TO A NEW SYSTEM… 10
CONCLUSION.. 12
REFERENCES. 13
INTRODUCTION
Customers are the sole and backbone of a business organization. Customers are the key base which provide a business with relevant information and capital to survive and prosper (Sant, 2004). In light of that, building a proper business environment for the customer to stick to is one of the essential part of a business model. All this can be done by an effective and channelized customer record management system. A business’s service capacity, profit making ability and future survival all depends on how it caters to its customers’ demands and makes follow-up service requests (McGregor, 2006).
The present report focusses on the CRM model of Tangle Corp., a leading company in the manufacturing and selling of widgets with major customers throughout Asia. Though they have their own CRM system, a line of junior management employees are of the view that the current model is outdated and needs proper and immediate facelift. Tangle Corp has operations throughout the world for the last 15 years and have a reputable image in the business industry. The top management wants this report to focus and outline the key aspects of the current CRM model and the viability of any replacement system if the company may wish to undertake (Greenberg, 2010).
BACKGROUND
Tangle Corp. is a business firm operating throughout Asia and as such has full line of employees and manufacturing processes. They have a full system of CRM that focusses on increasing customers and thus increase sales and revenue. For the last 15 years Tangle Corp. has been doing this quite effectively. But now, a new line of employees has been recruited who think otherwise. The present report underlines the view of the junior management team that wants a change in the present CRM system with a more robust and futuristic system that incorporates the sales, admin and the IT departments of the company.
To cater to more number of customers Tangle Corp acquired an Australian firm in 2011 but the company failed to build upon this purchase a more customer oriented company for its customers in Australia. Branches were opened in New Zealand, Singapore, Kuala Lumpur, Jakarta, Malaysia and Australia which helped Tangle Corp. to increase its revenue but there was no focus on any efficient CRM system for future prospects.
Major issues aroused at various business locations which hampered the image of Tangle Corp. to prospective customers related to cost of maintaining a branch, location of branches, service timings of branches, cubic area required for branch, etc. and all these added to the growing concerns of the junior management.
As a consequence of outdated CRM system, sales were on the decline, employee’s morale was also on the decline, and less integration of new and improved production processes, less specialization in widgets design, IT department was also outdated and had no benefit for the business profit maximisation (Kostojohn, et. al., 2011).
It is then that the junior management decided to prepare an extensive report on the replacement of the current CRM system outlining the disadvantages of the current system and making way for a more efficient system.
THE ISSUE
The issue with Tangle Corp. is the use of a CRM system that slows down the sales process and the revenue of the business. It reduces the cost-benefit ratio of the business related to time, effort, sales, manufacturing, etc. The junior management preparing the report has taken view of the departments and the personnel’s views regarding the current CRM system and have come up with a new system that may replace the old one (Goldenberg, 2008).
The team took note of the various requirement of the departments and presented the effect of CRM as per individual departments.
In Case of Manufacturing
Manufacturing needs information such as customer order history, correct order information, understanding the customer’s demands and making the widget as per their orders. However upon evaluation it was found that the CRM system failed to provide the necessary information. Management level communication was also missing and the required paperwork were inadequate (Woodcock, Stone & Foss, 2003). CRM system was functioning below par in providing the staff with information related to customers and there orders, thus slowing the whole manufacturing process.
In Case of Administration
The administration department was also effected by the current CRM system. The process of acquiring customer information was slow and the admin staff were losing efficiency in catering to customer enquiries. Waiting time was relatively large and was slowing the speed and accuracy of the staff. Even the details entered were incorrect or missing due to lack of a proper record keeping mechanism. Current CRM system had glitches with software errors with the information not being relayed in a timely and centralised manner (Blumberg, 2003).
This subsequently slows down the admin department and their efficiency with no information being available in real time. Customer’s issues need to be resolved as fast as possible which the current system failed to do (Stauss & Seidel, 2004). The need is a more responsive system that increases the reaction time to customer’s enquiries and also reduces their manpower wastage.
In Case of Sales
The sales team was headed by a very efficient staff and this resulted in a wide approach in terms of the CRM requirements of the sales department. According to the sales team, the most important drawback of the present CRM system was the amount of time it needed to update customer information and this was five to ten times more than other successful systems (Goodey, 2013). The availability was also an issue as the information was only available to the local branch but not in real time via a centralised medium. The CRM system failed to provide customer payment history, their order history, contact information, etc.
All these factors resulted in a lack of morale of the sales team to indulge with the present CRM system and made the need of a new and improved CRM system more concurrent (Homburg, Schäfer & Schneider, 2012). If the relevant sales information was available quickly and efficiently than the sales team would have performed much better and this will create a stable sales strategy for Tangle Corp.
THE SOLUTION
After looking at the proposed difficulties faced by the staffs of Tangle Corp. because of the outdated CRM system, the need for a new system was imminent. The management team then were on the lookout for the best possible system that could mitigate the current flaws and help the company achieve its objectives (Gentle, 2002).
The most important work now is to look at the needs of the company with respect to CRM and the most fundamental is to provide information in real time at various places simultaneously. This will enable Tangle Corp. to update its various departments and increase efficiency with respect to billing, inventory control, management communication, etc. Building upon this improved infrastructure Tangle Corp. will be able to modernise its CRM system (Molineux, 2002).
The junior management team prepared a plan for the implementation of a new CRM system according to the needs of Tangle Corp. But in order to prove its metal, the team first focussed on developing some key areas of the company.
The IT Infrastructure
The most important aspect of CRM system is its ability to provide information in real time and for that it would need a developed IT network infrastructure that supports the growing need of the new CRM system. By this data will flow in real time and at places not serviceable by the current system (Bligh & Turk, 2004). And with modern and improved IT infrastructure other key areas of Tangle Corp. will also benefit. Though the initial cost will be huge but Tangle Corp. will benefit in the long run and the new infrastructure will support any requirement of the new CRM system.
The CRM Software System
The junior team main proposal for the CRM system was a dedicated software which will be centrally located and will be available at all branches of Tangle Corp. The CRM software will have its own dedicated network facility to help garner maximum reach and efficiency (Peel, 2002). The software will not only be reliable but secure from breach and will help Tangle Corp. to build a customer friendly environment (Kim, 2004).
The team decided that the central location will be the Brisbane head office for the CRM software and from there any staff will have access to it via the centralised network infrastructure (Jamsa, 2013). The software maintenance will be done by Super CRM who will supervise this system and will also give the necessary licence for the computer accessing the CRM database.
The SaaS Model
Today, four out of ten CRM systems are SaaS based and companies throughout the world are using it. The main focus area of SaaS based CRM model being acquiring customers, analyse customer pattern and thus increasing staff efficiency according to customer needs (Parker, 2008).
Generally referred to as the Software-as-a-Service model which serves as a base for centralised software maintenance (Blokdijk, 2008). Super CRM is the company responsible for the maintenance and support of the CRM system and will provide services ranging from data servers, site maintenance and will log individual access to the software. As the data will be centrally located and available throughout by any authorised user, Super CRM will have full responsibility for the access of the CRM software.
According to this model, there is no one-time payment but a monthly service fee to be paid based on the number of authorised and potential users. Even the hardware requirements of the company will be service based having no fixed capital requirements and Tangle Corp. will have operating expenses only in creation of the new CRM model (Hatch, 2008).
Super CRM
The proposed vendor for the creation and maintenance of the new CRM system will be Super CRM. Super CRM is in the business of providing software solution for many years to many developed companies. They understand the widget industry and will be helpful for Tangle Corp. in mitigating its CRM flaws. Super CRM will help build a modern CRM software solution that will be the most suitable for Tangle Corp.
BENEFITS
The benefits that will be enjoyed by Tangle Corp. after the implementation of the new CRM system can be summarised by the following points:
- New and improved customer service by collaboration with modern technology of cloud-based platform for the management of customers by the staff (Kavis, n.d.).
- Improved reach and serviceability to customers from any branch at any time.
- Improved staff efficiency for the speediness in the system and efficiency in terms of automation of services and its integration with other systems for catering to more number of customers (Goldenberg, 2003).
- Improved sales and revenue digits catering to more number of customers in given time.
- Improved services for as and when required by customers because the real time data available. Proper analysis and visualisation of data will enable the company to tailor services according to customer’s needs (Berson, Smith & Thearling, 2000).
- A new and improved CRM system also increases accountability of the staff regarding their duty towards their customers and any shortfall can be quickly forecasted and measures can be made for mitigating the mistakes (‘Manage customer service CRM-based technologies’, 2014).
After developing the CRM system, other areas of the company can also be focussed upon and data can be made available in real time. Areas such as inventories, billing, warehouse, communication systems, etc. (Perna & Baraldi, 2014). New and improved systems throughout the company will increase the market position of the company and competitors of Tangle Corp. will be resilient of the new system.
THINGS TO CONSIDER BEFORE MIGRATING TO A NEW SYSTEM
According to modern reports, any good CRM system will need modification or replacement in 5 to 8 years. But in case of Tangle Corp. it looks as if the matter of years is no longer relevant as their present CRM is not serving its purpose (Finnegan & Willcocks, 2007). The present system is not in sync with the sales and marketing efforts. Thus, in order to decide whether to replace the old system, Tangle Corp. will have to look in certain key areas.
Business Progress – Tangle Corp. is growing and a growing progressive company will need a more robust CRM strategy. The CRM system will also need progress in terms of its existing or new services (Raisman, 2010).
New Custom Software – Tangle Corp. will have to invest in a new and technologically advanced software for the new CRM system (Starling, 2004). But they will have to do this keeping in mind the cost involved. Making the new software compatible with the old data is a tough task and will be a pre-requisite for Tangle Corp.
Scalability – The slow work progress of Tangle Corp. is not always because of a depleting CRM system, but sometimes it is the overloading of the hardware or misconfigured CRM system. A sudden or gradual loss of performance of the CRM system can be fixed by just adjusting the
configuration of the CRM, re-setting the parameters, fixing the amount of virtual memory, etc. (Kracklauer, Mills & Seifert, 2004).
Hardware – CRM system software is different from its hardware and many-a-times the hardware can be replaced without even touching the software (Choudhury & Harrigan, 2014). Nonetheless, hardware changes are expensive but can improve the overall progress of the CRM system without having to replace the whole CRM system. Careful analysis will reveal the amount of hardware changes required as per the CRM system (Blumberg, 2002).
Team – The most important question while replacing the CRM system is the choice of the vendor for the new system. One can choose the old vendor of the old system or build upon a new vendor and start fresh (Whitehead & Sutton, 2006). All this depends on the previous experience Tangle Corp. has had with the old vendor. In the opinion of the junior management, a new vendor is the need of the hour and the most suitable candidate is Super CRM.
Costs – Before indulging in the task of replacing the CRM system, Tangle Corp. must take into account the amount of cost needed for the migration. The above mentioned pre-requisites have cost involved from software to hardware changes, staff training, data management, new vendor, etc. (Sohn & Lee, 2006)
As the service will be a monthly affair and not a one-time purchase, major decisions would have to be made related to the cost involved (Newell, 2003). Looking at the efficiency and growth benefits of the new CRM system it is adamant that a new system is necessary and that would cover the value for the money.
A new CRM system will not be cheap as it is central to the growth of the business and will be in resemblance to the productivity of the business (Vaish, n.d.). The junior management team compares estimates from four different vendors and then chose Super CRM which was in the middle and provided value for money for the CRM system. And the benefit Tangle Corp. will have from the new system in terms of accuracy and customer satisfaction will be a total cost-benefit progress and costs will be overcome in the long run.
Finally, the new system can be taken on and there would be more knowledge about the new CRM system. The staff will be more apt in solving customer queries and the management will also be able in fast processing the company’s future (Al-Shammari & Burstein, 2005).
CONCLUSION
After understanding all the key factors associated with the current CRM system the junior management is more adamant about the replacement of the system. The benefits are far too many to ignore the fact that the outdated CRM system is hampering the growth model of the business. It is effecting its sales, revenue, personnel morale, etc. (Dyché, 2002). The report encompasses each and every detail that is to be noted before implementing a new system. Tangle Corp. has seen the worst effects of its outdated CRM system and needs serious attention as per this report. Even if Tangle Corp. decides not to follow the report they must come up with an alternative that best suits their business objectives (McGimsey, 2004).
The report is extensive and the junior management team has been able to present a well-rounded report of the aforesaid problems of the business. Now it is upon the top level management to make a wise and effective decision as to the CRM replacement system as soon as possible for the benefit of the business and its employees.
REFERENCES
BOOKS
Al-Shammari, M., & Burstein, F. (2005). Implementing knowledge-enabled CRM strategy in a large company. Hershey, PA: Idea Group Pub.
Berson, A., Smith, S., & Thearling, K. (2000). Building data mining applications for CRM. New York: McGraw-Hill.
Bligh, P., & Turk, D. (2004). CRM unplugged. Hoboken, N.J.: Wiley.
Blokdijk, G. (2008). Software as a service. [Place of publication not identified]: [publisher not identified].
Blumberg, D. (2003). Managing high-tech services using a CRM strategy. Boca Raton, FL: St. Lucie Press.
Dyché, J. (2002). The CRM handbook. Boston: Addison Wesley.
Finnegan, D., & Willcocks, L. (2007). Implementing CRM. Chichester: John Wiley & Sons.
Gentle, M. (2002). The CRM project management handbook. London: Kogan Page.
Goldenberg, B. (2003). CRM automation. Upper Saddle River, NJ: Prentice Hall PTR.
Goldenberg, B. (2008). CRM in real time. Medford, N.J.: Information Today.
Goodey, P. (2013). Salesforce CRM. Birmingham: Packt Publishing.
Greenberg, P. (2010). CRM at the speed of light. New York: McGraw-Hill.
Hatch, R. (2008). SaaS architecture, adoption and monetization of SaaS projects. [Brisbane, Australia]: Art of Service.
Homburg, C., Schäfer, H., & Schneider, J. (2012). Sales excellence. Berlin: Springer.
Jamsa, K. (2013). Cloud computing. Burlington, MA: Jones & Bartlett Learning.
Kavis, M. Architecting the cloud.
Kostojohn, S., Johnson, M., Paulen, B., & McKinnie, T. (2011). CRM fundamentals. [New York, N.Y.]: Apress.
Kracklauer, A., Mills, D., & Seifert, D. (2004). Collaborative customer relationship management. Berlin, Germany: Springer-Verlag.
McGimsey, C. (2004). CRM on CRM. Fayetteville, Ark.: Arkansas Archeological Survey.
McGregor, J. (2006). One billion customers. New York: Free Press.
Molineux, P. (2002). Exploiting CRM. London: Hodder & Stoughton.
Newell, F. (2003). Why CRM doesn’t work. Princeton, N.J.: Bloomberg Press.
Parker, P. (2008). The 2009-2014 world outlook for customer relationship management (CRM) software. [San Diego, Calif.]: Icon Group International.
Peel, J. (2002). CRM. Amsterdam: Digital Press.
Perna, A., & Baraldi, E. (2014). CRM systems in industrial companies. Basingstoke: Palgrave macmillan.
Raisman, N. (2010). Customer service factors and the cost of attrition. Columbus, OH: Administrator’s Bookshelf.
Sant, T. (2004). Persuasive business proposals. New York: AMACOM.
Starling, R. (2004). Checklist of CRM system requirements. Chatham: Axia Consulting.
Stauss, B., & Seidel, W. (2004). Complaint management. Cincinnati: Thompson/South-Western.
Whitehead, M., & Sutton, A. (2006). Implementing SugarCRM. Birmingham, U.K.: Packt Pub.
Woodcock, N., Stone, M., & Foss, B. (2003). The customer management scorecard. Sterling, Va.: Kogan Page.
JOURNALS
Choudhury, M., & Harrigan, P. (2014). CRM to social CRM: the integration of new technologies into customer relationship management. Journal Of Strategic Marketing, 22(2), 149-176. doi:10.1080/0965254x.2013.876069
Kim, H. (2004). A process model for successful CRM system development. IEEE Softw., 21(4), 22-28. doi:10.1109/ms.2004.1
Manage customer service CRM-based technologies. (2014). Automation And Control In Technical Systems, (1.2). doi:10.12731/2306-1561-2014-1-17
Sohn, S., & Lee, J. (2006). Cost of ownership model for a CRM system. Science Of Computer Programming, 60(1), 68-81. doi:10.1016/j.scico.2005.06.004
Vaish, P. Looking Beyond CRM. SSRN Electronic Journal. doi:10.2139/ssrn.1709352
