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2003_04_Chin

2003_04_Chin

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School Working Papers - Series 2003
SWP 2003/04
Organisational Transformation through CRMImplementation: A Descriptive Case Study
Authors:Carolyn Ye-Phern ChinMelissa DingChandana Unnithan
URL:http://www.deakin.edu.au/infosys/research/working_paper.htm
 
Deakin UniversitySchool of Information SystemsWorking Paper 2003/04
 
Organisational Transformation through CRMImplementation: a descriptive case study
Carolyn Ye-Phern ChinFax: +613 9552 3580cchin@mbox.com.auMelissa DingTel: +613 9244 6439; Fax: +613 9244 6928shd@deakin.edu.auChandana UnnithanTel:+613 9244 6930; Fax:+613 9244 6928chandana@deakin.edu.au
Abstract
CRM is becoming critical to organisations worldwide as global competitionincreases and technological innovations in communication continues to emerge. Inthis descriptive case study, we have investigated a utility provider – with ageographical monopoly, who has successfully implemented a complaint management system, as part of their CRM process transformation. We have used Ven de Ven and Poole(1995) process change theories to describe this successful organisation.
Keywords: CRM, Complaint Management System, CCMS
Introduction
Increasing competitiveness in the global economy is forcing organisations to placegreater emphasis on building valuable customer relationships.Customer relationshipmanagement or CRM is of vital importance to organisations and it requires customer-centric business approach to support effective marketing, sales and service processes.With the expansion of the Internet and the increasing number of tools available forcommunicating with customers, electronic CRM tools have become common inorganisations (Greenberg 2002). Many of these tools are off-the-shelf products,entailing automated management of customer information relating to themselves andthe products and services or organisations (Sanders & Jacobi 2002). The adoption of technology assisted relationship management tools such as call centre solutions,
 
enable companies to more effectively attract, retain and grow their customer base bydelivering premium customer service (Concerto 2002).CRM applications can enable effective customer relationship management, providedthat an enterprise has the right leadership, strategy and culture (Thompson 2002). Dueto the number of technological solutions available for CRM process automation, it isoften misconstrued as a piece of technology. Nevertheless, many organisations haverealised the strategic importance of CRM and subsequently, it is becoming a businessvalue-effort rather than a technology-centric effort. It is perceived as a businessstrategy that can positively impact profitability and customer satisfaction (see for eg.Alban 2002). Cohen (2002) advocated that the success of CRM is due, in part, to the skilful use of the customer contact centre as a primary means of communication between thecustomers and the company. The goal is to ensure that your contact centre optimizesrelationships with your customers and positively impacts revenue (Alban 2002).Market research studies have calculated that increasing customer retention by 1% canyield up to 8% increase in profitability (Ryan 2002). This paper is a descriptive casestudy of an organisation which has realised the strategic importance of CRM andinitiated a computer-based pro-active complaint management system integrating thecustomer service centres as part of their CRM strategy.
Methodology
Our main focus area in this investigation was to study the transformation of theorganisation or rather change within the organisation, with the CRM processinitiation, implementation and subsequent organisational transformation. There aretwo widely adopted research methods – action research and case studies - ininformation systems while embarking on organisational investigation to enrich them.Rapoport (1970:499) suggests that action research, which requires the subjectiveinvolvement of the researcher in the problem under investigation endeavours tocontribute both to the practical concerns of people in an immediate problematicsituation and to the goals of social science by joint collaboration within a mutuallyacceptable ethical framework. Baskerville and Wood-Harper (1998) identify theimportance of the “reflective” nature of action research, where action is typicallyfollowed by a stage in which the researchers reflect on the evaluation of the resultsand learning from the effects of the action.
 
The case study method does not require this reflective, iterative process of hermeneutic exploration, but rather endeavours to investigate a contemporaryphenomenon within its real life context (Yin 1994:13). The case study method, whichseeks to facilitate an understanding of complex real-life situations, by studying asituation in context (Yin 1994). The level of access, time and confidentiality issuesconcerned with this research made the action research method unsuitable for ourinvestigation. Therefore, we decided to favour a more traditional, positivist case studymethod, basing our understanding of the phenomena under investigation on Van deVen and Poole’s process theories, particularly the teleological theory (or purposiveaction towards a goal).
 
Within the category of case study research method, we havechosen the descriptive case approach, where the investigation begins with explanationof the theory (Tellis 1997) followed by its actual application in describing the case.

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