LECTURE 5
18/10/11
Types of Business Information Systems
Salesforce.com Executive Team Dashboard
Illustrated here are some of the capabilities of Salesforce.com, a market-leading provider of on-demand customer
relationship management (CRM) software. CRM systems integrate information from sales, marketing, and customer service.
Customer Relationship Management Systems
•
What is customer relationship management?
• Knowing the customer
•
In large businesses, too many customers and too many ways
customers interact with firm
• Customer relationship management (CRM) systems
•
Capture and integrate customer data from all over the
organization
•
Consolidate and analyze customer data
•
Distribute customer information to various systems and
customer touch points across enterprise
•
Provide single enterprise view of customers
Customer Relationship Management Systems
Customer Relationship Management (CRM)
Figure 9-7
CRM systems examine customers from a
multifaceted perspective. These systems
use a set of integrated applications to
address all aspects of the customer
relationship, including customer service,
sales, and marketing.
Customer Relationship Management Systems
•
CRM software packages
• More comprehensive packages have modules for:
• Partner relationship management (PRM)
• Employee relationship management (ERM)
• Most packages have modules for
•
Sales force automation (SFA): Sales prospect and contact
information, and sales quote generation capabilities; etc.
•
Customer service: Assigning and managing customer service
requests; Web-based self-service capabilities; etc.
•
Marketing: Capturing prospect and customer data, scheduling and
tracking direct-marketing mailings or e-mail; etc.
Customer Relationship Management Systems
How CRM Systems Support Marketing
Figure 9-8
Customer relationship management
software provides a single point for users to
manage and evaluate marketing campaigns
across multiple channels, including e-mail,
direct mail, telephone, the Web, and
wireless messages.
Customer Relationship Management Systems
CRM Software Capabilities
Figure 9-9
The major CRM software products support
business processes in sales, service, and
marketing, integrating customer information
from many different sources. Included are
support for both the operational and
analytical aspects of CRM.
Customer Relationship Management Systems
Analytical CRM Data Warehouse
Figure 9-11
Analytical CRM uses a customer
data warehouse and tools to
analyze customer data collected
from the firm’s customer touch
points and from other sources.
Customer Relationship Management Systems
•
Business value of customer relationship management
• Increased customer satisfaction
• Reduced direct-marketing costs
• More effective marketing
• Lower costs for customer acquisition/retention
• Increased sales revenue
• Reduced churn rate
•
Churn rate:
•
Number of customers who stop using or purchasing
products or services from a company.
•
Indicator of growth or decline of firm’s customer base
Enterprise Applications: New Opportunities and Challenges
•
Enterprise application challenges
• Highly expensive to purchase and implement enterprise
applications – total cost may be 4 to 5 times the price of
software
• Requires fundamental changes
•
Technology changes
•
Business processes changes
•
Organizational changes
• Incurs switching costs, dependence on software vendors
• Requires data standardization, management, cleansing
11
Knowledge Management…
12
Knowledge Management
13
KM, it’s like riding a bicycle…
Systems That Span the Enterprise
•
Knowledge management systems
• Support processes for acquiring, creating, storing, distributing,
applying, integrating knowledge
• Collect internal knowledge and link to external knowledge
• Include enterprise-wide systems for:
• Managing documents, graphics and other digital knowledge objects
• Directories of employees with expertise
15
Definitions
Knowledge
Knowledge is a fluid mix of framed
experience, values contextual
information and expert insight that
provides a framework for
evaluating and incorporating new
experiences and information
(Davenport and Prusak, 1998)
 Explicit Dimension
 Tacit Dimension
Knowledge Management
An organisation’s ability to
effectively acquire, create, retain,
deploy and leverage knowledge
16
Knowledge Hierarchy
Knowledge
Information
Data
17
The Knowledge Continuum
18
The Knowledge Evolution
• Hard and soft data (Mintzberg, 1975)
• Managers get more information and knowledge
from face to face meetings than they do from
documentation/ repositories (Kefalas,1973;
Keegan, 1974; Mintzberg, 1975; Eisenberg,
1984; Davenport, 1994; Davenport et al., 1998)
• “Knowing who to consult” (Keegan, 1974; Simon,
1977)
19
The Knowledge Evolution…
• Strategic Scanning (El Sawy, 1985)
• Accommodation Information
• Assimilation Information
• Proposed Solution:
• “Programs that allow users to record their creative ideas, provide
editing, organizing, and outline facilities that later rearrange those
thoughts into topics and give each topic a separate heading and
sub-heading”.
20
Explicit and Tacit Knowledge
• Explicit Knowledge
• formal / codified
• documents, best practices, databases, proposals
• Tacit Knowledge
• informal / uncodified
• experiential, within employee’s head,
• hard to effectively capture and share
21
Knowledge Economy/Society
ENTERPRISE
LAND
KNOWLEDGE
CAPITAL
LABOUR
The Knowledge Management Landscape
• Sales of enterprise content management software for
knowledge management expected to grow 15 percent
annually through 2012
• Information Economy
• 55% U.S. labor force: knowledge and information workers
• 60% U.S. GDP from knowledge and information sectors
• Substantial part of a firm’s stock market value is related to
intangible assets: knowledge, brands, reputations, and
unique business processes
• Knowledge-based projects can produce extraordinary ROI
Management Information Systems
Chapter 11 Managing Knowledge
The Knowledge Management Landscape
U.S. Enterprise Knowledge Management
Software Revenues, 2005-2012
Figure 11-1
Enterprise knowledge
management software
includes sales of content
management and portal
licenses, which have been
growing at a rate of 15
percent annually, making it
among the fastest-growing
software applications.
24
KM, a fad?
• Knowledge is not new
• People in organisations have always sought, used and
valued knowledge
• Companies hire for minds rather than hands
25
What’s your Strategy for Managing Knowledge?
(Hansen et al., 1999)
• Codification Strategy
• Computer centred
• Captured and stored in database
• Personalisation Strategy
• Associated with an individual
• Shared person to person
26
People Broker
• Locate “experts” to help solve business problems
• Link “knowledge holders” to “knowledge seekers”
• Transfer valuable “Tacit” Knowledge
27
Role of the Chief Knowledge/Learning Officer
• Build organisational knowledge culture
• Create knowledge management infrastructure
• Make it all pay off
28
Learning Organisation
• “the sum of individual knowledge used in the value
creation process and the knowledge embedded in
collective action”. (Von Krogh et al.,1996, pp.227)
• Organisations ability to :
• Have a memory
• React
• Make decisions
29
Knowledge Management and IS
• “‘Techknowledgy’ is clearly part of Knowledge
Management” (Davenport and Prusak, 1998)
• KM is 80% about organization, and 20% about IT
30
Basic Features of a Knowledge Management
System (KMS)
• Storage
• Publishing
• Subscription
• Reuse
• Collaboration
• Communication
31
Searching and Filtering Knowledge
• Knowledge should be
• Intuitively accessible
• Searchable to find relevant knowledge
• Inform how things get done
• Alternatively you should be able to connect to experts
32
33
KM Technology
• Solution which complements strategy
• Technology is an enabler
• Customized solutions which integrate with work
processes
• Non invasive
• Build on Web and Email platforms
• Combination of tools and technology
• Search / Categorization / Messaging / Collaboration
34
Examples of implemented KMSPharmaceutical
• Business
• Prosthetics manufacturer
• Technology
• LINK (Leveraging Internal Knowledge)
• Web tool facilitates
• Expert finder
• Describes people who might be working on things that you might be
working on
• Ability to index sent items folder
• Enables a user to build a personal work profile
• “Brokers Discussions”
35
Continued…
• Making it pay
• Reduced length of time to uncover knowledge related to a clinical
trial by finding existing experts in the area within the organisation
36
Manufacturing (1)
• Business
• Box design and manufacturer
• Technology
• InnoBook: An interactive database of box design concepts,
continually updated by over 300 designers
• Utilised by 250 sites across Europe
• Each design department has access to all
designs and uses the system to search for base
designs when an order is placed
37
Continued…
• Designers motivated to contribute their box
designs to the repository
• Initial reluctance to the utilisation of designs
contributed to the system by other departments,
question mark over the quality of the design not
produced by the local team
• Making it pay
• overcomes localisation of box design knowledge
• avoiding ‘reinventing the wheel’
38
Manufacturing (2)
• Business
• Multinational data storage device manufacturer
• Technology
• Primus a knowledge repository for customer solutions
• Implemented by Customer Service Team in two locations
– European and US
39
Manufacturing (2)
• Objective
• to manage customer support knowledge issues by breaking down a
problem or situation into its knowledge components
• to classify knowledge about the problem received or add new
knowledge about the problem
40
Continued…
• Making it pay
• build a knowledge base of solutions and
solve customer’s problems in a more time
efficient and effective manner
• to provide an integrated approach to
problem resolution and a solution for
managing the knowledge across the CS
group
41
Conclusions?
• People are the key to successful knowledge management
• IS may be identified as one factor that can enable the
capture, storage, creation and dissemination of
organizational knowledge
42
But:
The focus on utilising organizational knowledge should be
on a dialogue between two individuals or a community of
practice and not knowledge objects stored in a database
(Hansen et al., 1999)
43