Professional Documents
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TABLE OF CONTENTS
5.1.e-CRM Solutions................................................................................................................................ 2
5.1.1.what is eCRM? ............................................................................................................................... 2
5.1.2.Difference between CRM and e-CRM ............................................................................................ 2
5.1.3. e-CRM strategy components ........................................................................................................ 3
5.1.4. Implementing and integrating eCRM work................................................................................... 3
5.1.5. Different levels of eCRM ............................................................................................................... 5
5.1.6. Mobile CRM .................................................................................................................................. 6
5.2. Data warehousing ............................................................................................................................ 8
5.2.1. What is Data warehousing? .......................................................................................................... 8
5.2.2. Data warehousing concepts .......................................................................................................... 8
5.2.3. Data warehousing components .................................................................................................... 9
5.2.4. Importance of Data warehousing ............................................................................................... 10
5.2.5. Roles of Data warehousing ......................................................................................................... 11
5.3.Data Mining..................................................................................................................................... 12
5.3.1.What is Data mining? ................................................................................................................... 12
5.3.2.What can data mining can do? .................................................................................................... 13
5.3.3.Roles of Data Mining in CRM system ........................................................................................... 13
5.3.4.CRM system design based on data mining .................................................................................. 16
5.3.5.Data mining implementation ....................................................................................................... 16
5.3.6.Importance of Data mining .......................................................................................................... 16
5.4.An introduction to CRM software packages ................................................................................... 17
5.5.ORACLE............................................................................................................................................ 20
5.6.SAP .................................................................................................................................................. 22
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5.1.e-CRM Solutions
5.1.1.what is eCRM? (2 mark)
The e-CRM or electronic customer relationship management encompasses all the CRM
functions with the use of the net environment i.e., intranet, extranet and internet.
Electronic CRM concerns all forms of managing relationships with customers making use
of information technology (IT). e-CRM is enterprises using IT to integrate internal
organization resources and external "marketing" strategies to understand and fulfill their
customers needs. Comparing with traditional CRM, the integrated information for e-CRM
intra organizational collaboration can be more efficient to communicate with customers.
Customer contacts
CRM – Contact with customer made through the retail store, phone, and fax.
eCRM – All of the traditional methods are used in addition to Internet, email, wireless,
and PDA technologies.
System interface
CRM – The client must download various applications to view the web-enabled
applications. They would have to be rewritten for different platform.
eCRM – Does not have these requirements because the client uses the browser.
CRM – Views differ based on the audience, and personalized views are not available.
Individual personalization requires program changes.
eCRM – Personalized individual views based on purchase history and preferences.
Individual has ability to customize view.
System focus
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CRM – System (created for internal use) designed based on job function and products.
Web applications designed for a single department or business unit.
eCRM – System (created for external use) designed based on customer needs. Web
application designed for enterprise-wide use.
Several CRM software packages exist that can help companies in deploying CRM activities.
Besides choosing one of these packages, companies can also choose to design and build their
own solutions. In order to implement CRM in an effective way, one needs to consider the
following factors:
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Recommend questions to be asked to help a customer solve a problem.
Track all aspects of selling to customers, as well as prospects.
Furthermore, CRM solutions are more effective once they are being implemented in other
information systems used by the company. Examples are transaction processing system (TPS)
to process data real-time, which can then be sent to the sales and finance departments in order
to recalculate inventory and financial position quick and accurately. Once this information is
transferred back to the CRM software and services it could prevent customers from placing
an order in the belief that an item is in stock while it is not.
Cloud solution
Today, more and more enterprise CRM systems move to cloud solution solution, "up from 8
percent of the CRM market in 2005 to 20 percent of the market in 2008, according to
Gartner". Moving managing system into cloud, companies can cost efficiently as pay-per-use
on manage, maintain, and upgrade etc. system and connect with their customers streamlined
in the cloud. In cloud based CRM system, transaction can be recorded via CRM database
immediately.
Some enterprise CRM in cloud systems are web-based customers don’t need to install an
additional interface and the activities with businesses can be updated real-time. People may
communicate on mobile devices to get the efficient services. Furthermore, customer/case
experience and the interaction feedbacks are another way of CRM collaboration and
integration information in corporate organization to improve businesses’ services.
There are multifarious cloud CRM services for enterprise to use and here are some hints to
the your right CRM system
1. Assess your company’s needs: some of enterprise CRM systems are featured
2. Take advantage of free trials: comparison and familiarization each of the optional.
3. Do the math: estimate the customer strategy for company budget.
4. Consider mobile options: some system like Salesforce.com can be combined with
other mobile device application.
5. Ask about security: consider whether the cloud CRM solution provides as much
protection as your own system.
6. Make sure the sales team is on board: as the frontline of enterprise, the launched CRM
system should be the help for sales.
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7. Know your exit strategy: understand the exit mechanism to keep flexibility.
vCRM
Channels through which companies can communicate with its customers, are growing by the
day, and as a result, their time and attention has turned into a major challenge. One of the
reasons eCRM is so popular nowadays is that digital channels can create unique and positive
experiences – not just transactions – for customers. An extreme, but ever growing in
popularity, example of the creation of experiences in order to establish customer service is
the use of Virtual Worlds, such as second life. Through this so-called vCRM, companies are
able to create synergies between virtual and physical channels and reaching a very wide
consumer base. However, given the newness of the technology, most companies are still
struggling to identify effective entries in Virtual Worlds. Its highly interactive character,
which allows companies to respond directly to any customer’s requests or problems, is
another feature of eCRM that helps companies establish and sustain long-term customer
relationships.
Personalized Web Pages where customers are recognized and their preferences are
shown.
Customized products or services.
CRM programs should be directed towards customer value that competitors cannot
match. However, in a world where almost every company is connected to the internet, eCRM
has become a requirement for survival, not just a competitive advantage.
Foundational services:
This includes the minimum necessary services such as web site effectiveness and
responsiveness as well as order fulfillment.
Customer-centered services:
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These services include order tracking, product configuration and customization as well as
security/trust.
Value-added services:
These are extra services such as online auctions and online training and education.
Many factors play a part in ensuring that the implementation any level of eCRM is
successful. One obvious way it could be measured is by the ability for the system to add
value to the existing business. There are four suggested implementation steps that affect the
viability of a project like this:
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through mobile medium for the purpose of building and maintaining customer relationships
between a company and its customer(s).
eCRM allows customers to access company services from more and more places, since
the internet access points are increasing by the day. mCRM however, takes this one step
further and allows customers or managers to access the systems for instance from a mobile
phone or PDA with internet access, resulting in high flexibility.
Since mCRM is not able to provide a complete range of customer relationship activities it
should be integrated in the complete CRM system.
There are three main reasons that mobile CRM is becoming so popular. The first is that the
devices consumers use are improving in multiple ways that allow for this advancement.
Displays are larger and clearer and access times on networks are improving overall.
Secondly, the users are also becoming more sophisticated. The technology to them is nothing
new so it is easy to adapt. Lastly, the software being developed for these applications has
become worthwhile and useful to end users.
There are four basic steps that a company should follow to implement a mobile CRM system.
By following these and also keeping the IT department, the end users and management in
agreement, the outcome can be beneficial for all.
Step 1 - Needs analysis phase: This is the point to take your times and understand all the
technical needs and desires for each of the users and stakeholders. It also has to be kept in
mind that the mobile CRM system must be able to grow and change with the business.
Step 2 – Mobile design phase: This is the next critical phase that will show all the technical
concerns that need to be addressed. A few main things to consider are screen size, device
storage and security.
Step 3 – Mobile application testing phase: This step is mostly to ensure that the users and
stakeholders all approve of the new system.
Step 4 – Rollout phase: This is when the new system is implemented but also when training
on the final product is done with all users.
1. The mobile channel creates a more personal direct connection with customers.
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2. It is continuously active and allows necessary individuals to take action quickly using
the information.
3. Typically it is an opt-in only channel which allows for high and quality
responsiveness.
4. Overall it supports loyalty between the customer and company, which improves and
strengthens relationships.
Dimensional data model: Dimensional data model is commonly used in data warehousing
systems. This section describes this modeling technique, and the two common schema
types,star schema and snowflake schema.
Slowly Changing Dimension: This is a common issue facing data warehousing practioners.
This section explains the problem, and describes the three ways of handling this problem with
examples.
Conceptual Data Model: What is a conceptual data model, its features, and an example of
this type of data model.
Logical Data Model: What is a logical data model, its features, and an example of this type
of data model.
Physical Data Model: What is a physical data model, its features, and an example of this
type of data model.
Conceptual, Logical, and Physical Data Model: Different levels of abstraction for a data
model. This section compares and contrasts the three different types of data models.
Data Integrity: What is data integrity and how it is enforced in data warehousing.
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5.2.3. Data warehousing components
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database are designed to overcome any limitations placed on the warehouse by
the nature of the relational data model
• The data sourcing, cleanup, transformation, and migration tools perform all of the
conversions, summarizations, key changes, structural changes, and condensations
needed to transform disparate data into information that can be used by the decision
support tool
Not only that but the business execs can query the data themselves with little or no support
from IT saving more time and more money. That means the business users won’t have to wait
until IT gets around to generating the reports, and those hardworking folks in IT can do what
they do best keep the business running.
The purpose of the Data Warehouse in the overall Data Warehousing Architecture is to
integrate corporate data. It contains the "single version of truth" for the organization that has
been carefully constructed from data stored in disparate internal and external operational
databases.
The amount of data in the Data Warehouse is massive. Data is stored at a very granular level
of detail. For example, every "sale" that has ever occurred in the organization is recorded and
related to dimensions of interest. This allows data to be sliced and diced, summed and
grouped in unimaginable ways.
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Contrary to popular opinion, the Data Warehouses does not contain all the data in the
organization. It's purpose is to provide key business metrics that are needed by the
organization for strategic and tactical decision making.
Decision makers don't access the Data Warehouse directly. This is done through various
front-end Data Warehouse Tools that read data from subject specific Data Marts.
The Data Warehouse can be either "relational" or "dimensional". This depends on how the
business intends to use the information.
5.3.Data Mining
5.3.1.What is Data mining? (2 mark)
The practice of examining large pre-existing databases in order to generate new information.
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Data mining derives its name from the similarities between searching for valuable
information in a large database and mining a mountain for a vein of valuable ore. Both
processes require either sifting through an immense amount of material, or intelligently
probing it to find where the value resides.
Although data mining is still in its infancy, companies in a wide range of industries -
including retail, finance, health care, manufacturing transportation, and aerospace - are
already using data mining tools and techniques to take advantage of historical data. By using
pattern recognition technologies and statistical and mathematical techniques to sift through
warehoused information, data mining helps analysts recognize significant facts, relationships,
trends, patterns, exceptions and anomalies that might otherwise go unnoticed.
For businesses, data mining is used to discover patterns and relationships in the data in order
to help make better business decisions. Data mining can help spot sales trends, develop
smarter marketing campaigns, and accurately predict customer loyalty. Specific uses of data
mining include:
Market segmentation - Identify the common characteristics of customers who buy the
same products from your company.
Customer churn - Predict which customers are likely to leave your company and go to
a competitor.
Fraud detection - Identify which transactions are most likely to be fraudulent.
Direct marketing - Identify which prospects should be included in a mailing list to
obtain the highest response rate.
Interactive marketing - Predict what each individual accessing a Web site is most
likely interested in seeing.
market basket analysis - Understand what products or services are commonly
purchased together; e.g., beer and diapers.
Trend analysis - Reveal the difference between a typical customer this month and last.
Data mining uses some mature algorithms and technologies in artificial intelligence, such
as artificial neural networks, genetic algorithms, decision tree, neighboring search methods,
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rule-based reasoning and fuzzy logic. According to the different functions, the analyzed
methods of data mining can be divided into the following types: classification, valuation,
correlated analysis and clustering.
Data mining technology is not only the simple retrieval, query and transfer faced to special
database, it also should do microcosmic and macroscopically statistics, analysis, synthesis
and reasoning to guide the solving of practical problems, find the relationship between
events, and even use the existing data to predict future activities.
The basic data mining process is composed by the following steps
Data mining technology is not only the simple retrieval, query and transfer faced to
special database, it also should do microcosmic and macroscopically statistics, analysis,
synthesis and reasoning to guide the solving of practical problems, find the relationship
between events, and even use the existing data to predict future activities. In order to achieve
data mining, now a number of software tools have been developed and formed many aspects
of a number of products in the customer relationship management, such as customer
evaluation and subdivision, customer behavior analysis, customer communication and
personalized services. The action of data mining in CRM is represented as the following
aspects:
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Customer characteristics multi- dimensional analysis
It refers to analyzing the customer characteristic demand. The customer attribute
description should include address, age, sex, income, occupation, education level, and many
other fields, and can be carried multi-dimensional combination analysis and quickly
presented with the list and the number of customers which accord with the conditions. For
example: customer subdivision model is an effective tool of typical customer identification
and analysis and the compendia data provides the basis for customer categorization and
subdivision.The course, a subdivision standard must be defined firstly, for example,
according to the profit
contribution of the customers they can be subdivided into high-profit customer groups, the
profitable customer groups, profit margin customer groups, non-profit customer groups
and deficit customer groups, which separately corresponding to gold customer, emphasis
customer, hypo-emphasis customer, common customer and deficit customer.
Customer behavior analysis
It refers to analyzing the consuming behavior of certain customer group
combining customer information. And according to different consuming behaviors changes,
individuation marketing strategies will be established and the emphasis customer or the
customer with the trend of loss will be selected.
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and methods. At the same time, it also analyzes the different effects of different customers to
business benefit, analyzes the effects of customer behavior to business benefit, this makes the
relationship between business and customer.
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stored may not consist of what is relevant to you. There is a need to sort this out and develop
a new one by employing data mining tools that are acclaimed in precise data collection.
Data analysis: The process consists of probing for information related to consumers on
various rostrums such as forums, review sites and many other social media networks.
Relevant data is collected and analyzed for the application and construction of business
models, thus, leading to the development of a good predictive model. Consultants are
appointed so that the data can be amalgamated and arranged in appropriate formats. An
effective use of this unique information is through CRM solutions - users can view an
analysis of each record along with cross sell effectively. Visualization tools and graphing
techniques may be used to display the information in a more palpable format.
Identify correct model: After analysis of customers’ data, one can visualize a model
conceding to behavior and trends like demand, purchasing patterns, investments and
incomes. The model created should be monitored right away for assistance in decision-
making regarding the firm’s relationship management.
There are many reasons why CRM software has become the most important software in the
last 10 years. The competition has become highly competitive in the global market, and it has
become easier for clients to switch companies if they are not happy with the service they
receive or want the product with the low price. One of the primary goals of CRM solution is
to retain clients and protect them from competitor’s temptations. When CRM is used
effectively, an organization will be able to build a relationship with their clients that can last a
lifetime. It is so important to realize that CRM system solution is more than just software.
This CRM introduction aims to explaining what the CRM is in a nutshell and making it easier
to realize the tremendous benefits of purchasing a Customer Relationship Management
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software that will help drive more customers thus more profit towards you and makes your
life easier.
There are many things the ideal CRM solution should have; it should enable the organization
to find the factors that interest their clients the most. Any corporation must realize that it is
impossible for them to succeed if they do not cater to their client’s desires and needs. CRM
software solution is a powerful system that will enable them to do this.
With CRM strategy, the customer is always right, and they are the core factor in the success
of the company. It is important for any corporation to use reports that are dependent on their
client’s data. This will greatly tip the odds of success in their favor.
The Customer support cycle is an internal part of CRM system, when a client sent
complaints; they must be handled efficiently and in a timely manner. The corporation should
also seek to make sure those mistakes are not repeated. When sales are complete, they should
be tracked so that the corporation can analyze them from various aspects and produce reports.
The analytical aspect of CRM system deals with analyzing client’s information and using if
for business intelligence purposes.
Once thought of as a type of software, CRM has evolved into a customer-centric philosophy
that must infiltrate an entire organization. There are three important key elements to a
successful CRM initiative: people, process, and technology. The people throughout a
company, from the CEO to each and every customer service representative need to buy in to
and support CRM. A company's business processes must be reengineered to strengthen its
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CRM initiative, often from the view of ―How can this process better serve the customer?‖
Firms must select the right technology to drive these improved processes, provide the best
data to the employees, and be easy enough to operate that users won't hesitate to use. If one
of these three foundations is not solid and sound, the entire CRM structure will crumble.
A brief introduction to the Customer Relationship Management is that it’s a strategy used to
learn more about customers' needs and behaviors in order to develop stronger business
relationships with them. After all, good customer relationships are the heart of any business
success. There are many technological components to CRM, but thinking about CRM in
primarily technological terms is a mistake. The more useful way to think about CRM is as a
process that will help bring together lots of pieces of information about customers, sales,
marketing effectiveness, responsiveness and market trends together to complete your
business puzzle in order to bring the harmony into your work force.
If customer relationships are the heart of business success, then the CRM is the valve the
pumps a company's life blood. As such, Customer Relationship Management is best suited to
help businesses use people, processes, and technology to gain insight into the behavior and
value of customers. This insight allows for improved customer service, increased call center
efficiency, added cross-sell and up sell opportunities, improved close rates, streamlined sales
and marketing processes, improved customer profiling and targeting, reduced costs, and
increased share of customer and overall profitability.
Every business organization depends on customers for sustenance, the question is how to
create and maintain customer satisfaction. Every business communicates with their clients in
many different ways, especially in our technology rich and information based society. How
we treat all of this information is where CRM plays a key role.
CRM acts as a central repository of information on your clients and potential clients.
Customer relationship management software hones in on the relationship. As in many
publications of late on one to one marketing, cyclical selling and counselor selling the
mainstay is the relationship and how we recognize it.
Salesboom.com CRM tools use technology to organize information you receive about your
customers and record it in an orderly manner. Online, hosted, web based CRM software helps
you understand your customer needs and helps you recognize the processes in place to
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achieve your business goals. Customer loyalty has a significant impact on both the top and
bottom line. To maintain customer loyalty is to be informed on where you have been and
where you are going. The first step in your CRM strategy is to take a snapshot of where you
are currently. From this base you can design streamlined, customized and fully automated
business processes in Sales boom Cloud CRM.
Just think of Cloud CRM as a tool that when you open a customer’s account, you can see all
the consolidated data about that account: contact information, account history, sales, cases,
invoices, quotes, files, emails, faxes, letters, notes and any other pertinent information. All of
this information is readily available online, anywhere the Internet is available.
Salesboom.com harnesses the power of the Internet and places its Cloud CRM solutions at
your disposal. If you are doing business tasks anywhere, whether it is a sales person or the
CEO that needs a crucial piece of correspondence, phone number, quarterly forecasts or a
simple brochure, access is available through Salesboom.com. With the advent of these Cloud
CRM tools your business becomes more customer-centric. A customer-centric strategy is
created with the intention of increasing both your customer satisfaction, and customer
loyalty.
5.5.ORACLE
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Oracle's Complete CRM solutions offer the broadest and deepest capabilities that help
organizations drive sales, marketing, loyalty, and service effectiveness. And in combination
with Oracle's Commerce solutions, they deliver a unified cross-channel experience for
consumers. Oracle CRM on Demand enables organizations of all types and sizes to:
Oracle CRM On Demand[ was released in 2006. CRM On Demand[ is a CRM solution
accessible over the internet and paid for by a monthly subscription charge. This method of
using software is often called software as a service (SaaS) and is available to authorized users
with a web browser. The benefits of a SaaS solution are that there is no hardware requirement
and minimal set-up costs. The disadvantage of a SaaS solution is the inability to customize
the application to meet unique business needs. Although the depth of functionality available
is not yet comparable to on premise solutions, the lower cost and faster implementation times
appeal to many customers.
Social CRM
Oracle Social CRM was released in 2008 and combines traditional enterprise CRM
capabilities with social networking and web 2.0 technologies. The applications are designed
to reflect the way sales people work by helping them identify qualified leads, develop sales
campaigns and collaborate with colleagues to close more deals.
Other Social CRM Applications include Oracle Sales Prospector, Sales Campaigns and Sales
Library. These applications are designed to work with any CRM applications, not just those
from Oracle. These applications are provided using SaaS and paid for by a monthly
subscription.
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business processes, customer strategies, and success criteria for organizations. PeopleSoft
merged with Oracle in 2005 and integrated product lines under the Oracle PeopleSoft name.
5.6.SAP
The SAP CRM application is an integrated customer relationship management (CRM)
software manufactured by SAP AGthat targets business software requirements of midsize and
large organizations in all industries and sectors.
Support all facets of your customer service organization – from contracts to marketing – with
SAP Customer Relationship Management (SAP CRM) service functionality. Provide a
positive user experience and resolve issues quickly with real-time support and complaint
management. And give reps the tools they need to retain valuable customers and drive
engagement.
SAP's CRM solution includes several modules that support key functional areas including:
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