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SUBMITTED TO A. RAJYA LAKSHMI ASSISTANT PROFESSOR NIFT HYDERABAD
SUBMITTED BY AVINASH KUMAR ROLL NO-4 MFM- 3rd SEM
automate. and technical support. and reduce the costs of marketing and client service. When an implementation is effective. increasing expertise and reducing costs. The overall goals are to find. widely-implemented strategy for managing and nurturing a company’s interactions with customers. This knowledge increases the opportunities for sales and the effectiveness of customer service. entice former clients back into the fold. It involves using technology to organize. To enable front office staff to perform sales. service and marketing tasks more efficiently as a team. people. customer service. This improves customer satisfaction and customer retention. 3 Key Elements of CRM What is CRM? CRM or Customer Relationship Management is a corporate strategy composed of applications. and reduce operational costs.Customer relationship management (CRM) is a broadly recognized. To enable your customers to have a consistent view of your enterprise. attract. technology and products that fulfill three essential requirements: • • • To give your enterprise a 360° view of each customer for consistent and unified contact with that customer whenever anyone anywhere in the enterprise deals with that customer. processes. nurture and retain those the company already has. and technology work in synergy to increase profitability. . and synchronize business processes—principally sales activities. regardless of the way the customer contacts you. Customer relationship management denotes a company-wide business strategy embracing all client-facing departments and even beyond. but also those for marketing. clients and sales prospects. and win new clients.
shipping and customer service and support. Let us take a quick look at some of the measurable benefits that your organization can gain by implementing a CRM solution. Customer stays. you need a centralize customer database. better brand • . that captures most of the information from your entire customer facing departments and partners. • Strategic Consistency Because CRM offers business and technological alignment. if they are provided with value. throughout all stages of their life cycle. To make profits. thereby increasing profit and revenue generation capabilities. from contact to contract to customer service.) to him. Increase Customer Lifecycle Value In most businesses. • Execution Control Once the business strategy is put into motion. CRM solutions enable you to do that. accurate forecasts and more.CRM describes a strategy used to manage and report customer/prospect/partner/contact interactions with enterprise contacts including inside and outside sales. up sell. billing. Advantages of CRM CRM solutions help companies boost their business efficiency. higher customer satisfaction. like enhanced sales realization. Integrated CRM solutions. like CRMnext enable you to manage customer information. the cost of acquisition of customers is high. during his lifecycle. The benefits include a clearer visibility of the sales pipeline. it is important to keep the customer longer and sell him more products (cross sell. quality service and continuity. etc. it enables companies to achieve strategic company goals more effectively. you need to know them better. • Customer Lifecycle Management To keep the customers happy. CRM solutions provide management with control and a scientific way to identify and resolve issues. the management needs feedback and reports to judge how the business is performing. marketing. At the minimum.
Sales force is a popular CRM application provided through an Internet connection on the company's domain. Overhead . use local backups to avoid record loss.management and more. For example. The disadvantage of this type of CRM is that the company does not have control of the data. it becomes easier to identify the bottlenecks. A CRM can be pre-packaged or custom created by a software development company. addresses. the alignment results in a more consistent customer communication creating a feeling of continuity. their causes and the remedial measures that need to be taken. they also have some disadvantages. Record Loss Some CRM applications use remote Internet connections to save customer records. the company is unable to retrieve records. and if the remote CRM system has an outage. Additionally. Although CRM applications have their advantages. it can mean several thousands of dollars in lost revenue. orders and shipping information. • Business Intelligence Due to the valuable business insights that CRM provides. When using a remote CRM application hosted by another company. If the company chooses a small CRM application that is not stable. CRMnext provides realtime business focus dashboards with extensive drill down capabilities that provide the decision makers with the depth of information required to identify the causes and spot trends. Disadvantages of CRM A customer relationship management (CRM) application is one that small to large businesses use to keep track of customer contact information. The complexity of the software depends on the business rules and size of the company.
Training If the company is small.If the company decides on a local CRM application. system administrators and maintenance people to keep the software running. There may also be system downtime. DELL COMPANY PROFILE . The training requirements can be as short as a few hours or can take up to several days. These extra functions are also required learning. which adds an expense to running a personalized CRM application. training issues may be a small disadvantage. Having a local personalized or proprietary CRM system also requires the owner to do system upgrades and security patches to ensure the integrity of the system. It's also important to keep backups of the information. the company needs to pay software developers. Training takes away time for productivity. If the software is proprietary. For large-scale CRMs. because most CRMs have specialized functions for managers and executives. there are overhead costs associated with running the software. Large corporations need to roll out training schedules for all their employees. so it is a disadvantage for brand-new CRM systems. The CRM training is also different for managers compared to regular staff. this can mean hiring professionals to train employees in groups.
Dell also sells HDTVs. Dell is listed at #38 on the Fortune 500 (2010). It is the 2nd largest non-oil company in Texas (behind AT&T) and the largest company in the Austin area. Michael Dell.000 people worldwide. Fortune Magazine listed Dell as the 38th largest company in the United States and the 5th largest company in Texas by total revenue. 2010. Michael Dell. Dell has grown by both organic and inorganic means since its inception —notable mergers and acquisitions including Alienware (2006) and Perot Systems(2009). the company sold personal computers. Other board members include Don Carty. is a multinational information technology corporation based in Round Rock. Shareholders elect the nine board members at meetings. sells and supports computers and related products and services. software. As of 2009. On May 3. The company is well known for its innovations in supply chain management and electronic commerce. and Sam Nunn. MP3 players and other electronics built by other manufacturers. which will . network switches. Klaus Luft. United States. and computer peripherals. Commercial aspects Organization A board of directors of nine people runs the company. and those board members who do not get a majority of votes must submit a resignation to the board. Texas. printers. data storage devices.Alex Mandl. serves on the board. Michael A. Bearing the name of its founder. servers. Fortune also lists Dell as the #5 most admired company in its industry. Judy Lewent. the founder of the company. employing more than 96. that develops. Miles. cameras. the company is one of the largest technological corporations in the world. William Gray.Dell Inc.
In 2006. which handles financial matters such as proposed mergers and acquisitions. including auditing and reporting.2% market share.7 to 4. the Governance and Nominating Committee. the Internet. Sheskey (vice president and Chief Information Officer). including David Marmonti for EMEA and Stephen J. As of 2007. other officers included Martin Garvin (senior vice president for worldwide procurement) and Susan E. Some of Dell Inc's marketing strategies include lowering prices at all times of the year. which attempts to prevent company practices from violating antitrust laws.3 percent. and to move its customer-care division to India and El Salvador. To maintain its low prices. this also cut profit-margins by more than half. Marketing Dell advertisements have appeared in several types of media including television. The Dell Global Executive Management Committee sets strategic directions. which approves compensation for the CEO and other employees of the company. Dell continues to accept most purchases of its products via the Internet and through the telephone network. and the Antitrust Compliance Committee. Dell has regional senior vice-presidents for countries other than the United States. The board of directors usually sets up five committees having oversight over specific matters. However. from 8. Felice for Asia/Japan. and offering free shipping in order to encourage more sales and to stave off competitors. the Finance Committee. which handles various corporate matters (including nomination of the board). which handles accounting issues. The corporate structure and management of Dell extends beyond the board of directors. magazines. offering free bonus products (such as Dell printers). . These committees include the Audit Committee. catalogs and newspapers. Dell cut its prices in an effort to maintain its 19.subsequently choose whether or not to accept the resignation. the Compensation Committee.
sometimes even including the Dell logo on the monitors. Also in 2007. In July 2007. The ads featured music from the Flaming Lips and Devo who re-formed especially to record the song in the ad "Work it Out".A. a lightly mischievous blond-haired youth who came to the assistance of bereft computer purchasers. It used as a tagline the common term in Internet and gamer slang: "FTW". you're gettin' a Dell!" A subsequent advertising campaign featured interns at Dell headquarters (with Curtis' character appearing in a small cameo at the end of one of the first commercials in this particular campaign).A popular United States television and print ad campaign in the early 2000s featured the actor Ben Curtis playing the part of "Steven". Dell Inc.E. A Dell advertising campaign for the XPS line of gaming computers featured in print in the September 2006 issue of Wired. However. several computers visible on desks within the game have recognizable Dell XPS model characteristics. soon dropped the campaign. Dell began using the slogan "Yours is here" to say that it customizes computers to fit customers' requirements. In the first-person shooter game F. Each television advertisement usually ended with Steven's catch-phrase: "Dude. . meaning "For The Win". Dell released new advertising created by Mother to support the Inspiron and XPS lines. In 2007. Dell switched advertising agencies in the US from BBDO to Mother.R. Extraction Point.
INTRODUCTION The computer industry encompasses computer software. and Gateway. Dell’s collaboration with other computer software companies has allowed it to become a leader in customer relationship management (CRM) and supply-chain management (SCM). Dell is in the business of manufacturing computers and servers. as well as the production of computer components. and the provision of information technology services. Its competitors are Hewlett Packard/Compaq. Apple. According to Dedrick and Kraemer (2006). This . Dell is “aiming to combine the cost advantages of horizontal specialization with close coordination of vertical integration”. The new trend in the computer industry is to become a virtual corporation and Dell is leading the way. while continuing to meet the demands and requirements of its customers. IBM. In the early 1990’s.CRM IMPLEMENTATION OF DELL ABSTRACT Dell is one of the most successful and profitable computer corporations in history. as well as streamlines the flow of its products throughout the supply chain. which profiles and targets its customers. assembly. marketing. These initiatives have resulted in net revenues of between $30 and $60 million over the last five years. sales. It decided to focus on improving customer service and support by allowing customers to place and custom configure orders directly. logistics distribution. This paper will examine how Dell implements enterprise-wide computing software. computer hardware. it is faced with the challenge of how to maintain its customer relationships and inventory management. Dell shifted gears and tried to distribute its products through retail outlets. later realizing how unprofitable this approach was. It has been known for its innovative customer service and product custom configuration. As it continues to grow.
Dell had to find a way to overcome these obstacles and then provide a service that would build a reputation for superior business to consumer efficiency. This new idea of “building-to-order” and ordering over the phone was a major risk. Since Dell is a global wide company.com).com). it was out of his dorm-room.resulted in a unique strategy. where customers preferred to purchase products from retail outlets. He had limited cash and purchased most of the supplies needed to build his first computers after the sales were made. Dell has one simple concept: to sell computer systems directly to customers. regions and customer segments” (http://www. Facing these challenges. small businesses. synonymous with Dell. The first obstacle was to create a need on part of the customer to desire the purchase of a customized computer. When Michael Dell started Dell in 1984. The mission statement for Dell is “to be the most successful computer company in the world at delivering the best customer experience” (htttp:\\www. The second hurdle was having customers call a toll free number to order the product. Well-established computer manufacturers like IBM had a lock on the computer market.dell. large businesses. customization. reducing inventory levels while still meeting customer demands? IMPLEMENTATION OF A CRM STRATEGY . Nearly one out of five standards-based computer systems sold in the world today is a Dell. and what technology will it need to implement to accomplish this goal? How can Dell streamline its supply chain to further enhance planning and execution. such as schools and hospitals. Dell’s customers are global wide and range from individuals. and institutional organizations. Dell had to answer the following questions: How can Dell maintain its customer relationship management. its “direct approach is relevant across product lines.dell.
Dell utilizes database software. Dell has developed a strong relationship with both its suppliers and customers that allow it to ensure that computer components are available from suppliers to meet customer demands. people went to an electronic or retail store to buy computers. which a company uses to get products and services to its customers. their interests.Customer relationship management (CRM) is used to define the process of creating and maintaining relationships with business customers or consumers (Moon. Dell pioneered the concept of interacting with the customer by phone or by way of the Internet to custom-build a computer specific to that customer’s needs and delivering that computer in a very timely matter. marketing. This direct customer focus resulted in Dell’s competitive advantage. and a system that benefits the sales. financial and management segments of Dell. 2003). of raw materials to the end product. Before Dell’s concept of building made-to-order computers. The databases would include customer information. It also ensured that a system was in place to get the product shipped and delivered to the customer effectively and efficiently. There are three types of software that facilitate Dell’s CRM: marketing automation software. A long-term relationship with the customer insures their repeat business. The customer database helps increase profits because the database contains client information that . custom designed Web pages containing purchase data. SCM is the term used to describe the management of the flow. It costs more money to gain new customers than it does to retain current ones. These salespeople were not as knowledgeable about the product since they were not involved in building the computers. There was no interaction with the manufacturer. only with the salesperson of that particular store. Dell’s goal is to provide customers with their technological. and products. Dell created a supply chain management (SCM) system that ensured that the right computer parts were always available when and where needed. These particular databases store tables of data that can be mined for information about clients and used to generate promotional campaigns. which is effective and efficient with customer relationship management. as well as customer service needs.
and real-time monitoring of customer and market trends” (Moon. efficient marketing communications. and lapsed quotes can be acted on. ensuring that better service is offered. Dell states that the idea behind Premier Pages was to “gain less information about customers – they already know about them – and more to create a real win-win situation” (Levey. The PC is built after the customer orders it. This also gives Dell free advertising – word of mouth. A second type of software that Dell uses is a transparent online system called “Premier Pages. The final system that Dell is using to maximize CRM is the Dell South Africa’s implementation of an enhanced CRM system with the help of IS Partners. This means that Dell has to have a direct relationship with the customer. The bottom line to CRM systems is that it directly impacts its customer base. resulting in positive and negative areas of business being clearly highlighted.za). financial and management segments benefit significantly from this software. The software that Dell uses to increase relationship marketing is made by Hotlink. with an overview of each sales team.co. “ProClarity offers in-depth analytical abilities.helps determine effective and efficient ways to target and segment the customers. Sales are also broken down by region. Sales. 2003) This program strengthens the sales-customer relationship. with the customer’s existing technology configurations already captured. customer sales history and trade relationships. which would streamline the supply chain process by linking Dell’s suppliers and planners together to meet demand and customer requirements. marketing. an information systems company. Dell’s business strategy focuses on creating one of the most effective supply chain management systems via the i2. Hotlink is a marketing automation software program used to aid e-marketers in “effective targeting.” which are custom-designed Web pages containing purchase data.itweb. The marketing . This system also has a paperless ordering process. The Dell staff has easy access to the detailed demographic information about customers. Sales management can track activity within accounts. 1999) the process of knowing the customer begins when the customer orders a PC. enabling Dell to measure trends and successes” (http://www.
product sales. the best ideas bubble to the top. Dell manages a large number of internal and external recommendations for key technology partnerships. Over $200 million in deals submitted by partners have been approved and all serviced using salesforce. Salesforce CRM Partner Networks helps us work more closely with our partners and keeps us from unintentionally competing with each other. . We’re able to gather all our customer feedback in one place and use the robust management tools to track and implement the ideas.department can track customer activity. The company relied on multiple homegrown opportunity management solutions in each region.com’s partner relationship management tool.” Challenge • • • • • • Dell--a leading global systems and services company--wanted a CRM solution capable of providing a global view of its pipeline and a way to collaborate across global sales teams. Executives wanted a centralized location they could go to to determine the status of current and past technology partnership evaluations. and marketing mixes. The company wanted a flexible and easy-to-use system that was globally consistent.com Platform to Drive Innovation and Success "Cloud computing makes global scale a lot easier. And with Salesforce CRM Ideas. The technology giant also needed a scalable way to collect feedback from its community. For example. Dell interacts with more than three million customers every day. Dell Harnesses the Power of Salesforce CRM and the Force. helping the company capture feedback and drive innovation. IT was building out a centralized solution but found it costly.
000 users in 12 weeks in the United States with help from Salesforce.com Training & Certification also created eLearning courses and other curriculum to provide ongoing training for instructors and users.com to map its business process and build an application for tracking technology partnerships in less than 4 weeks.com Premier Support for 24x7 technical support. The global Salesforce. it contracted delivery to a select group of companies who had worked closely with Dell in the past.com Training & Certification managed up to 140 instructor-led classes.• • • • The company wanted to create a secure employee community to capture candid feedback from 80.000 employees from across the globe.000 users in 5 weeks.com Premier Suppport team is leveraged by Dell internal support help desk which is the company’s first point of technical contact for supporting its complex implementation. Varied channel-facing business units had disparate needs. Salesforce.com Premier Support. and the ability to deploy worldwide.” Dell needed to gain the trust of valueadded resellers.000 users over 18 months globally. training over 3. With help from Salesforce. Dell also developed a plan to launch a global partner program in less than 6 months. In addition to the online communities. Dell leverages Salesforce. Considered “anti-channel. Solution • • • • • Dell selected Salesforce CRM for its ease of use. This is now 15. leveraging Salesforce. The company rolled out Salesforce CRM to 4. Salesforce. Dell managed the overall user training program.com Consulting. flexibility. The .com Training & Certification programs as well as a sales process consulting firm. Dell leveraged Force.
com platform and Force. and operations. comments and voting ensure the most popular ideas bubble up to the top. Dell allows venture capital firms and others to submit new evaluation submissions via a simple email form. manage. by the first month it had collected 2. the company had launched Dell IdeaStorm—built with Salesforce CRM ideas in 3 weeks—to give customers and enthusiasts a chance to “walk the halls of Dell” and share ideas that influence product development.com that he immediately wanted one rolled out at his company. Customer feedback on IdeaStorm led the company to build select consumer notebooks and desktops pre-installed with the Linux . in the first two weeks of launching it had gathered more than 700 ideas. Results • • • With the Force. With help from Salesforce. Dell IdeaStorm had collected more than 500 ideas. allowing the company to identify pain-points and hone in on areas that need improvement and enhancement. Posted ideas compete on equal footing. and manage key evaluations in real time.500 ideas. Using Force. track.com code. EmployeeStorm is a secure community that allows employees to post ideas regardless of where they sit within the company.com. services.• • • • • • • application allows a team of 75 technology evaluators to track.com Consulting. Workflow and analytics enable users and executives to easily generate reports to quickly identify. Dell CEO Michael Dell was so impressed with Salesforce CRM ideas communities and the way they drive product development at salesforce. Ideas bubble up through IdeaStorm. Within the first week. the Dell CTO team can quickly adapt the technology partner evaluation application to track key technology trends. and report on evaluations.
Dell leverages the wisdom of crowds to evaluate and prioritize customer feedback. Over $200 million in deals submitted by partners have been approved and serviced using Salesforce CRM. Dell would be able to create custom-branded portals for its 44. for example. EmployeeStorm breaks down the silos natural in corporate life and increases collaboration—allowing. Dell is experiencing more than a thousand partner registrations a month via Salesforce CRM Partners. Dell’s partner community applauds Salesforce CRM’s simplicity and ease of use. Texas. Executive-level confidence drives home the message that IdeaStorm is an important way to engage customers and broaden innovation. . Dell’s new global deal registration program would use Salesforce CRM Partners to push leads to partners and to manage channel conflict. Dell also decided to continue offering Windows XP as a pre-installed operating system option in response to customer requests.000 partners.com Consulting. Looking ahead. Ideastorm also engages employees at every level to comment on their area of expertise and to participate in the discussion. tech support employees in Asia to communicate and share ideas with sales reps in Round Rock. Dell customers and enthusiasts have a chance to be a part of the product development process—to tell the company what they want to see in future releases. Average turnaround time is reduced to just 36 hours. Dell is considering an extension to its implementation through Salesforce CRM Partners with help from Salesforce.• • • • • • • • • platform.
while at the same time increasing efficiency. These lessons can be transferred to other companies in the industry. Dell has used CRM to its advantage. Dell has become an industry leader in service and reliability.CONCLUSION CRM integration strives to satisfy and promptly deliver products to customers. Ensure better customer service is offered. Extend the connection from the customer to the supplier Dell was able to extend its build-to-order model from suppliers to the customer while continuing to maximize operational efficiency . This minimized the risk. then Dell added other components in stages. As one part became more efficient. ensuring availability of the product and maintaining profitability of the manufacturer. It set-up mock environments to develop. Dell ensured that each stage of the process performed will and allowed for future growth before rolling out the entire system. Implement technology in a phased fashion Dell tested key tasks in each of its regions prior to deployment. Dell was able to bring on one piece of the i2 system at a time. There are many lessons learned from Dell’s experience. By custom-building a computer that the customer desires. This has instilled trust into their customers. test. this has created a very strong relationship with the customers. and support the i2 systems in patches without disrupting the live version.
information with suppliers about customer demands and buying patterns. no excess inventory or inventory shortages. . in real-time. Customers were able to save money while being able to purchase a customized machine because Dell passed on the savings. which resulted from efficient inventory management.and customer satisfaction. It was able to share.
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