Transcript IS and the Customer

Information Systems and
Organisations
Lecture 10:
IS and the Customer
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.2
Scope and Coverage
This topic will cover:
• IS to support and create customer value
• Customer relationship management
• eBusiness
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.3
Learning Outcomes
By the end of this topic students will be able to:
• Understand how IS are relevant when dealing with
customers in a variety of ways
• Critically analyse the changing world of organisation
and customer interaction
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.4
Contents
• IS and customers
• Customer Relationship Management (CRM)
• eBusiness and eCommerce
• Emphasis – People, Organisation and
Technology
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.5
Sales?
• What is Sales ?
• Dealing directly with INDIVIDUAL Customers
• Making Sales
• Managing Customer Experience
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.6
Marketing?
• What is Marketing ?
• Understanding the Market
• Promotion of Products and Services
• Matching Products and Services to Customer
Needs
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.7
Marketing and Sales in the
Enterprise
Feedback
Suppliers
V1.0
Purchases
OPERATIONS
Products
(inputs)
What we Do
with inputs
& Services
(outputs)
Sales
Markets and Customers
Marketing
© NCC Education Limited
IS and the Customer Lecture 10 - 10.8
Sales and Marketing - Information
Flows
Existing
Customers
Marketing
- Campaigns
- Promotions
- Advertising
Sales
- Account Mgt
- Sales Calls
- Personal Selling
- Target Driven
V1.0
Potential
Customers
(leads)
© NCC Education Limited
IS and the Customer Lecture 10 - 10.9
Performance Measures
Sales and Marketing
SALES
• Revenue
• Individual Targets
• Prizes for Success
• Short Term (Weekly,
Monthly)
V1.0
MARKETING
• Revenue and Profitability
• Products
• Effectiveness of
Campaigns
• Longer Term (Quarterly,
Yearly)
© NCC Education Limited
IS and the Customer Lecture 10 - 10.10
Enterprise Applications
Sales and Marketing
SALES
• Product Details
• Sales Recording
• CRM
-
V1.0
Diary
Scheduling
Customer Details
Sales Force monitoring
Commission Management
MARKETING
• Product Details
• Product Sales
Performance
• CRM
- Customer Details
- Campaign Management
- Customer Buying Behaviour
© NCC Education Limited
IS and the Customer Lecture 10 - 10.11
CRM
• Many types of CRM
• Analytical (understanding customers)
• Transactional (managing customer processes)
• An introductory discussion of CRM principles can
be found at the URL below:
- http://www.businessballs.com/crmcustomerrelationshipm
anagement.htm
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.12
Customer Service
Part of CRM
Products
Customer
& Services
Service
(outputs)
Applications
Record Keeping
MIS and Performance
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.13
eBusiness / eCommerce
• eBusiness - customers are other businesses and
organisations:
- Long history of electronic data interchange (EDI) of business
transactions between organisations
- Increasing business use of Internet beyond this
• eCommerce - customers/consumers interact with
businesses and organisations via Internet, mobile
devices and other type of interface:
- Purchasing products and services
- The recipients of marketing messages
- Customer service of various sorts
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.14
Intermediation and Bundling 1
• The Internet makes shopping for individual
components of a ‘bundle’ possible/much easier for
the consumer
• Leads to dis-intermediation and pressure on
intermediaries’ margins
- (e.g. Customer buying part of a holiday separately)
• Internet increases market visibility, prices, potential
suppliers etc. for the consumer
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.15
Intermediation and Bundling 2
• Third parties exist as intermediaries between the
customer and suppliers/sellers
• Intermediaries can ‘bundle’ packages of products
and services to make them easier to buy (e.g. travel
agent)
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.16
The ‘Unbundled’ World
• In practice customers may choose to buy a package
in some cases and buy unbundled in
others....depending upon price, convenience etc.
• With the Internet, ‘Buyer Behaviour’ needs to be
thought of partially as ‘User Behaviour’ in IS terms
(Topic 9)
• Customer value proposition embraces the whole
buying and service experience – not just the
product
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.17
Typical EC Business Models 1
- Online direct marketing
- Electronic tendering
systems.
- Name your own price
- Find the best price
- Affiliate marketing
- Viral marketing
- Group purchasing
- Online auctions
- Product and service
customization
- Electronic marketplaces and
exchanges
V1.0
- Information brokers
(informediaries)
- Bartering
- Deep discounting
- Membership
- Value-chain integrators
- Value-chain service
providers
- Supply chain improvers
- Social networks,
communities, and blogging
- Direct sale by manufacturers
- Negotiation
© NCC Education Limited
IS and the Customer Lecture 10 - 10.18
Typical EC Business Models 2
• Online direct marketing
- Selling products or services online
• Electronic tendering (bidding) system (reverse
auction)
- Model in which a buyer requests would-be sellers to
submit bids; the lowest bidder wins
• Name-your-own-price model (demand-collection
model)
- Model in which a buyer sets the price he or she is willing
to pay and invites sellers to supply the good or service at
that price
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.19
Typical EC Business Models 3
• Find the best price (search engine model)
- An intermediate company locates the lowest price (e.g.
Confused.com)
• Affiliate marketing
- An arrangement whereby a marketing partner (a
business, an organization, or even an individual) refers
consumers to the selling company’s Web site (by a
banner ad or logo)
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.20
Typical EC Business Models 4
• Viral marketing
- Web-based Word-of-mouth marketing in which
customers promote a product or service to friends or
other people
• Group purchasing (volume-buying model, e-co-ops)
- Quantity (aggregated) purchasing that enables groups of
purchasers to obtain a discount price on the products
purchased
• Online auctions
- The highest bidders win (e.g. eBay)
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.21
Typical EC Business Models 5
• Product and service customisation
- Creation of a product or service according to the buyer’s
specifications (e.g. Dell)
• Electronic marketplaces and exchanges
- Virtual marketplace in which sellers and buyers meet and
conduct different types of transactions (emalls)
• Information brokers (imformediaries)
- Information brokers that provide privacy, trust, matching,
search, content and other services (e.g. Bizrate.com)
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.22
Typical EC Business Models 6
• Bartering
- Exchanging products (e.g. Web-barter.com)
• Deep discounting
- Companies offering products and services at deep
discounts, as much as 50% of the retail price
• Membership
- Only members get a discount
• Value-chain integrators
- Adding value by aggregating products into more
complete packages for customers e.g. car-selling +
financing and insurance
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.23
Typical EC Business Models 7
• Social networks, communities and blogging
- Websites that connect people with specified interests by
providing free services such as photo presentation, email, blogging, etc. (e.g. Facebook)
• Direct sales by manufacturers
- The manufacturer eliminates all intermediaries, selling
directly to customers
• Negotiation
- Offering negotiation capabilities between individuals or
companies; also facilitated by Intelligent Agents
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.24
Customers and the Networked
World
• In the last 20 years Information Systems have
started to pervade our lives
• Increasingly the way in which organisations deal
with customers is being transformed
• Example, Government. In the U.K. in the last year
the author has used the Internet to:
-
V1.0
Buy Car Tax
Apply for a New Passport
Submit a Tax Return and Pay Tax due
..... many information searches on Government websites
© NCC Education Limited
IS and the Customer Lecture 10 - 10.25
References
• http://www.businessballs.com/crmcustomerrelationshipmana
gement.htm
• Chaffey, D. (2007) E-Business and E-Commerce
Management. Pearson Prentice Hall.
V1.0
© NCC Education Limited
IS and the Customer Lecture 10 - 10.26
Lecture 10 – IS and the Customer
Any Questions?
V1.0
© NCC Education Limited