Analyse the case study of Nike "ERP system failure".
CRM is implemented in the organizations for having a good relationship with the customers and attaining profits from them. According to customer desires and needs the firms has to deliver the best technology and methods in best ways, which led to the usage of an analytical tool called CRM Customer Relationship Managementwhere a database is created for the different type of customer information which helps to have a competitive advantage with other firms Raab et al, Retaining the old customers to the company is a difficult task in the present world.
Goals and aims of customer relationship management is took at the customer in four stages are durable, to attract new customers, having good and healthy relationship with profitable customers Raab et al, According to BandStrategy and Customer relationship Management goes hand in hand because it produces efficiency and other operational gains which give a firm a competitive edge over other firms.
The report is focussed on the impact of CRM as an application which is related to information, information use and business strategy. CRM can be treated as an application which focuses on customer relationship and other technologies by collecting and storing the information given by the customer.
CRM is not only technology for solving problems; they have kept the customers in the centre as they are the main target of business organisations Raab et al, The importances of information flow in an organisation, knowledge and business strategy are explained in detail within the report.
It is grounded on high quality customer data and enabled by IT". CRM can be categorized in different sectors where CRM is applied, IT firms view CRM as an application that can stimulate the business process in terms of marketing, maintenance and software development.
CRM is a software application used by the firms to be in touch with their current customers and their future customers. Information Technology has helped CRM where it has accelerated and enabled a better coordination of business process Raab et al, Using CRM retaining the old customers is five times more profitable than finding a new one Buchanan and Gilles ; Reichheld cited in Becker, Ribbert and Dreiling, According to Peppers, Rogers and Dorf excessively large number of firms were not appropriately prepared to implement CRM, because of this significant number of IT projects failed.
Knowledge management can be defined as "the process of critically managing knowledge to meet existing needs, to identify and exploit existing and acquired knowledge assets and to develop new opportunities" Quintas, Lefrere and Jones, cited in Dous et al. The important role being played by KM systems in the current customer centric business environment, Particularly in the context of marketing decisions there is lack of a easy and overall framework to integrate the traditional CRM functionalities with the management and application of the customer related knowledge.
The Meta model is closely related to Ontology where it explains "Consists of a representational vocabulary with precise definitions of the meanings of the terms of this vocabulary plus a set of formal axioms that constrain the interpretation and well formed use of these firms" Campbell and Shapiro ; cited in Becker, Ribbert and Dreiling, According to Bunge ; cited in Becker, Ribbert and Dreiling, ontological theory is an answer to an ontological question with a tremendously broad scope.
The CRM Meta model is explained with an example of an airline company, For the airline company to penetrate the global market and get their precious customers, the airline firm brought the "earn points for a mile" on business class flights where the customers can redeem when they reach miles for a free intercontinental business class upgrade Becker, Ribbert and Dreiling, Based from the Meta model figure, the facts are built from customer reference objects, where they would have given the complete details about them such as their interest, type of diet, etc.
Customer knowledge is reinterpreted of customer relationship campaign and customer category value. In the Year the airline firm decided to consider all the customers and segmentation in two groups for the customer reference.
For the customer preference, the customers are divided in two groups; the first group is fulfilling all the conditions and others in the other group. Customer relationship campaign can have properties such as products, promotion, means of promotion and advertisement. Customer relationship campaign target group defines customer knowledge, customer value category and customer relationship campaign Becker, Ribbert and Dreiling, Strategy is necessary for the growth of the business.
According to Wallace Business strategy are carried out in technology for creating competitive benefit, differentiating products and services from other customers in cost, quality, customer relationship and delivery on time.
CRM is used by the firm for segmentation of customers to concentrate on retaining profitable and valuable customers Hamid and Kassim, CRM is implemented in a firm to focus on attracting and maintaining customers is one way of business strategies Smithcited in Coate, Evaluation of Nike’s CRM programme Nike’s Rationale for implementing CRM programme In nowadays business world, Customer Relationship Management (CRM) .
CRM (Customer Relationship Management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise . Nike, Inc.
NIKE, Inc. “was founded by William Jay Bowerman and Philip H. Knight in and is headquartered in Beaverton, OR” (Nike, Inc.).
NIKE, Inc. concentrates on NIKE Brand and Jordan Brand products divided in seven key categories: Nike sportswear, football, action sports, women and men’s training, basketball and running.
Nike uses a mix of relationship and relationship marketing. Nike as a global brand is in the maturity phase of the product life cycle.
At this level, relationship marketing aiming at customer retention and loyalty is most suitable. On the other hand, Nike constantly released new kaja-net.com: Jul 05, · Customer Relationship Management is the core business strategy that integrates internal processes and functions and external networks, to create and deliver value to targeted customer at a profit.
It is based on high quality customer-related data and enabled by information technology.
Nike currently sells shoes, shorts, jerseys etc. for Athletics, baseball, cricket, ice hockey, football and lacrosse. 2) Manufacturing Process of Nike Shoes: Nike follows vertically integrated model for the manufacture of its footwear.
The process takes place in two stages.