This essay will mention some of the advantages and disadvantages of some innovation approach, and argue in favor of innovation is useful in several aspects. First, Oxford dictionary give the definition of innovation that ” Innovation is changes in something already existing, as by introducing new methods, ideas, or products “. (Karabas, A. 2001: p206) There are so many innovation and changes in nowadays and these innovations are important to many different aspects. New technology creates many advantages and disadvantages. In IT industry has a very high rapid pace of changing.
Computer technology has been invented for a long time from DOS into e -Commerce. Computer technology involve with a great variety of industry and in many different details. Business industry now uses technology to upgrade the business into online business, such as online marketing, online advertising and online money transfer. In some kind of businesses sell both products and services or only services, therefore relationships with customers is very important point in the enterprises’ point of view.
Customer Relationship Management, or CRM, is an information technology industry term for methodologies, strategies, software, and other web-based capabilities that help an enterprise organize and manage customer relationships. (Karabas, A. 2001: p10) Many companies utilize this approach to gain a better understanding of their customer’s wants and needs. CRM not only help to retain existing customers but also help to expand to new customers.
To begin with advantages of CRM (Customer Relation Management), Customer delight is the only key to success in the business battles. The focus on customers and giving them exactly what they want has been there in almost all organizations. “Customer is the king” (Karabas, A. 2001: p208) maybe can explain how important of customers to the business enterprise. With a general slowdown of the global economy companies are finding it hard to survive with high profit . Now information is the key to success.
Information about the customer made available to the person coming in contact with the customer can go a long way not only in clinching the deal but also creating a very good relationship with the customer for future business. Organizations over the past had products as their key focus. But nowadays, companies have begun to focus on the customers. This not only brings a change in focus, but also changes the way the entire organization works. The better understanding of the customers and what they expect from the organization, the more customers’ satisfaction. It needs to be understood that not all customers are equally profitable. The key herein lies in identifying the customers who pay you more for the kind of services that you offer and focusing your valuable efforts into taking special care of those customers.
The advantages being that the knowledge gathered by a particular person who has been interacting with the customer, now necessary for the organization and not with the person alone. With sales representative’s mobility increasing day by day, it is difficult to expect the same person to come in and contact with the customer all the time. Now when a new person from the organization goes to the customer he has to go to re-inventing the new information in order to establish a relationship with the customer.
This is a risky process when the chances of either the customer getting bored, trying to explain his needs to a new person each and every time or the sales representative failing to establish a good relationship is high. All this increases the organization’s risk of retaining a new customer. Thus the organization ends up presenting right information to the customer no matter with home they come in contact with your organization. This is something the customer greatly appreciates. This is what that will differentiate your organization from other companies.
True CRM is the collection and distribution of ‘all’ data to ‘all’ areas of the business industry. The data can then help company’s market and company itself, create individual globalisation for web users, help to trace existing customers, understand customers better so that can give customers better service, allows company’s customer to interact with company by whatever means they are happiest, reduces campaign time and wastage, allows self service via the web.
The roles for the data are endless. But some companies may have no need to provide service via their web site, having no need for a call centre as they deal with only few companies or already have a marketing suite in place. New data mining tools are being created every day leading to more and more uses for CRM. To show all of the possibilities of a large working system would take a very large diagram. My diagram concentrates on the flow and storage of data within a company structure.
It’s lamentable fact that, all data can’t be easily collected. Every role created by placing a CRM system into a company needs sound business acumen; otherwise you will be collecting data for data’s sake and could run into the problem of having a different company voice from different interaction points, offering different marketing objectives, costs or service. This runs the risk of creating more problems than solving and in some cases magnifying customer confusion. Another disadvantage, a company’s business infrastructure and business methods have to be reviewed along with their existing IT infrastructure before CRM should be considered. The choice of which CRM vendor and whose interface is good, is less important than getting your company data integrated and the company strategy implemented.
CRM is play important role in many business industry, which data can help company’s market and company itself, create a good relationship together in finally lead to retain the existing customer and find new customers for the sake of enterprise. But some changes in adopt this new system consume a great amount of time because of difficulty in collect all data. In some case, enterprise has to change computer system into the new system, this changing cause very expensive expenses and time consuming. In the light of such consideration, it’s a worth system to establish a very high performance marketing and relationship to customers. If you don’t adopt this innovation, the other will adopt this system and make profit in this point. In this situation, your company will lose market share and low profit in the end.