ubiquitous crm njit

8/12/2019 Ubiquitous CRM NJIT

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Ubiquitous Organization:A New Paradigm for CRM

Presented by:

Rado Kotorov, Ph.D.M. F. Smith & Associated, Inc.

1201 Mt. Kemble Ave.

Morristown, NJ 07960

Tel.: 973-425-4912

Fax: 973-425-0800

E-mail: [email protected]

www.mfsmith.com


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Cost to Snag a Single Sale

Amazon.com $103

Bluefly.com $245

Garden.com (gone) $71

Pets.com (gone) $200

Furniture.com (gone) $500 Shoebuy.com $15Source: Inc. Tech 2001, No. 1, E-Tailing by the Numbers


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Some transactions produce

saving only - InvoicingInvoice delivery

On- line $1.65 Manual $5.00Dispute resolution

E-mail $10.00 Phone $20.00

Fund TransferElectronic $1.90 Check $5.00

FedEx Shipping Charges $20,000 annually

Source: PC World, April 20. Manage Your Invoices Over the Internet, by Jennifer deJong


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Fig. 1

Scale and Scope Effects

1

1

2

2

3

Increased transaction flexibility

Scale

A: Scale Effect


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1

1

2

2

3

3

Increased transactionflexibility

Scale

New transactions

Fig. 1

Scale and Scope Effects

B: Total effect - increase transaction capabilities

Total effect


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Three Questions ThatConcerned Executives

Ponder What are the emerging

technologies?

How would the emergingtechnologies change customerbehavior?

How would the emergingtechnologies change our socialorganizations?


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Emerging Technologies

(ET) Until 1980 the emerging

technologies were product focused:

The assembly line (Ford) Industrial robots (Fanuc)

The newly emerging technologies,

however, are collaboration andcustomer focused:

KM

e-CRM and predictive-CRM


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How Would ET Change the

Corporation The emerging corporation is ubiquitous.

Many technologies have evolved to

become ubiquitous: The electric motor operates hidden in

almost every appliance

The microchip obscurely controls andmonitors how our appliances perform

Organizations follow the sameevolutionary path.


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The Profound Change In CRM is:Service Everywhere, Everything,

Every-way Anywhere:Multiple channels - personal contact, web,

phone, web phone, etc (Merita Bank, Finland).

beware of channel conflicts (Charles Schwab)

Anytime: On Demand:Have a 360 view of the customer -

needs, preferences, expectations. Manage

information to anticipate and predict customer

changes (AXA Inc.).

beware of privacy issues, dont be obtrusiveness

beware of information overload and confusion

(AT&T).


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It Is Already Happening:

Stock Brokerage A person can access a transaction

processing engine/technology from a

personal computer, PDA, phone, etc. Transactions can be completed from

anywhere, at any time, andinstantaneously.

Service is offered and deliveredcontinuously and unobtrusively ondemand.


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It Is Already Happening:

Kinkos Promotional materials can be uploaded

on a server from anywhere and at

anytime. Promotional materials can be accessed,

modified, printed and deliveredsimultaneously to multiple locations.

Service is offered and deliveredcontinuously and unobtrusively ondemand.


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The Efficiency Paradox

Corporations are designed for growth,and not for the customers.

Horizontal and vertical segmentationincrease productivity, lower prices, butalso make the labyrinth bigger.

Efficiency paradox: It takes less time

produce a product than to service it(mass production), but this is not validformula for products with layered

information services.


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Evolution of CRM

Generation I CRM: 100 Focus on thecustomer - mostly contact data. Customer recognition and low level service

personalization.

Generation II CRM: 360 Degrees view ofthe customer -full descriptive profile. Learn more about the customer and develop

expectations of the customers future needs.

Generation III CRM: Ubiquitousorganization. Be the customers genie.


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Core CRM Concept:100% Focus on the Customer


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Core CRM Concept:360 Degree View of the Customer


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Core CRM Concept:Ubiquitous Organization


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Organizational Changes

Generation I and II do not requireorganizational changes:

Add information technologyAdd analytics and predictive software

Generation III cannot be achieved

without organizational andtechnological transformation.


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External Functional

Overview

CustomerDataFlow

EmergencyServices

Vendor

TransactionFlow

AccessMechanism

ProcessingMechanism


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CRM Organizational

Design Benchmarks The customer-end architecture is a

mirror view of the CEO-end

architecture. A cross-functional process service

layer is added, analogous to thefunctional layer underneath the

CEO, with the purpose to: Design self-service processes.

Broker in real-time services not

handled by a self-service processes.


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CEO/President

Functional Areas (Finance/Planning)

Div 3Div 2Div 1 Div 4EfficiencyLayers

Cross Functional Service Provision

Self-Service Real Time InternalService Brokerage

Self-Service Design

CustomerE

ffectiveness

Layers

CEOV

iew

CustomerView

C

ustomersvie

w

isamirro

rimageofC

EOv

iew


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Business Drivers

The more ubiquitous theorganization, the more desirable its

services become. The more customers demand, the

more diverse needs they express.

The more diverse demands, themore other companies seekalliances and revenue sharing withthe ubiquitous organization.


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CEO/President

Functional Areas (Finance/Planning)

Div 3

Div 1&2

InternalIntegration Div 4

Cross Functional Service Provision

Customer

PartnersAlliance

Revenue SourcesShared Revenue Sources


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Sources of RevenueGrowth

Revenue Growth

SharedRevenue

sGrowth

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