Impact of Information Technology in CRM: A Study On

A STUDY ON
IMPACT OF
INFORMATION
TECHNOLOGY
IN CRM
SUBMITTED BY:
BHAVESH PANDYA
Prepared By: Bhavesh Pandya IILM BS, Mumbai 2|Page

MBA (INDUSTRY INTEGRATED)
SEMESTER – 3
PROJECT GUIDE:
MR.S.S.RANJAN
EASTERN INSTITUTE FOR INTEGRATED LEARNING IN

MANAGEMENT UNIVERSITY
EIILM UNIVERSITY
2009

CERTIFICATE
This is to certify that Mr. BHAVESH N PANDYA (Enrollment No:

EIILMU/08/681 has successfully completed a project / training entitled,
“IMPACT OF IT APPLICATION IN CRM ” in partial fulfillment for the
requirement of MBA (Industry Integrated) program.
Signature with Date
Project / Training Guide Dean
Examiner Stamp of IILM BS

ACKNOWLEDGEMENT
It took great deal of help, tolerance and understanding on the part of a variety of
people and organizations to prepare this project report. I would particularly thank
to MR. S.S.RANJAN as they provided me guide line and support during my
training.
My special thanks go to Mr.M.M.Aghase (Dean), Dr.Piyali Kar (Director) of
IILM Business School and its placement department for providing me such an
opportunity.
I would also thank to all my colleagues whose ideas and practice I adopted in the
project I wish to express my warmest appreciation for their help and support
along the way
INDEX
CHAPTER
TITLE PAGE
NO.
1 INTRODUCTION 06
2 SCOPE OF STUDY 12
3 METHODOLOGY 13
4 ANALYSIS & DISCUSSION 39
5 CONCLUSION 43
6 BIBLOGRAPHY 44
CHAPTER-1
INTRODUCTION
What is CRM?
DEFINATION:
“Customer relationship management (CRM) is defined to be the process of
establishing, maintaining and enhancing the relationships with the customers and
other partners at a profit, so that parties involved are met. This is achieved by
mutual exchange and fulfillment by of promises.”
Customer Relationship Management is a company-wide business strategy

designed to reduce costs and increase profitability by solidifying customer
loyalty. True CRM brings together information from all data sources within an
organization (and where appropriate, from outside the organization) to give one,
holistic view of each customer in real time. This allows customer facing
employees in such areas as sales, customer support, and marketing to make quick
yet informed decisions on everything from cross-selling and up selling
opportunities to target marketing strategies to competitive positioning tactics.
It's a strategy used to learn more about customers' needs and behaviors in order to
develop stronger relationships with them. After all, good customer relationships
are at the heart of 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, and
responsiveness and market trends.
If customer relationships are the heart of business success, then CRM is the valve
the pumps a company's life blood. As such, CRM is best suited to help businesses
use people, processes, and technology 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.
This sounds like a panacea, but CRM is not without its challenges. For CRM to
be truly effective, an organization must convince its staff that change is good and
that CRM will benefit them. Then it must analyze its business processes to decide
which need to be reengineered and how best to go about it. Next is to decide what
kind of customer information is relevant and how it will be used. Finally, a team
of carefully selected executives must choose the right technology to automate

what it is that needs to be automated. This process, depending upon the size of
the company and the breadth of data, can take anywhere from a few weeks to a
year or more. And although some firms are using Web-based CRM technologies
for only hundreds of dollars per month per user, large companies may spends
millions to purchase, install, and customize the technology required to support its
CRM initiative .
ADVANTAGES OF CRM IN BUSIBESS:

CRM processes that help identify and target their best customers, generate quality
sales leads, and plan and implement marketing campaigns with clear goals and
objectives
CRM processes that help form individualized relationships with customers (to
improve customer satisfaction) and provide the highest level of customer service
to the most profitable customers.
CRM processes that provide employees with the information they need to know
their customers' wants and needs, and build relationships between the company
and its customers.
Customer relationship management tools include software and browser-based

applications that collect and organize information about customers. For instance,
as part of their CRM strategy, a business might use a database of customer
information to help construct a customer satisfaction survey, or decide which new
product their customers might be interested in.
ROLE OF INFORMATION TECHNOLOGY IN BUSINESS:

Information technology (IT) refers to the management and use of information
using computer-based tools. It includes acquiring, processing, storing, and
distributing information. Most commonly it is a term used to refer to business
applications of computer technology, rather than scientific applications. The term
is used broadly in business to refer to anything that ties into the use of computers.
Mostly businesses today create data that can be stored and processed on
computers. In some cases the data must be input to computers using devices such
as keyboards and scanners. In other cases the data might be created electronically
and automatically stored in computers.
Small businesses generally need to purchase software packages, and may need to
contract with IT businesses that provide services such as hosting, marketing web
sites and maintaining networks. However, larger companies can consider having

their own IT staffs to develop software, and otherwise handle IT needs in-house.
For instance, businesses working with the federal government are likely to need
to comply with requirements relating to making information accessible .
The constant upgrade in information technology, along with increasing global

competition, is adding difficulty and hesitation of several orders of scale to the
business and trade. One of the most widely discussed areas in recent business
literature is that of new organizational network structures that hold survival and
growth in an environment of growing complexity.
Effective implementation of information technology would decrease liability by

reducing the cost of expected failures and increase flexibility by reducing the cost
of adjustment. The businesses reaction to the environment remains to be the vital
determinant for its effectiveness. The capabilities and flexibilities of computer-
communication systems make them gradually more appropriate to businesses by
being able to respond to any specific information or communication requirement.
Information Technology is having impact on all trade industries and businesses,

in service as well as in manufacturing. It is affecting workers at all levels of
organizations, from the executives to middle management and clerks.
Information technology is increasingly becoming a basic factor of all types of
technologies such as craft, engineering, routine, and non-routine.
The advances in Information Technology would result in remarkable decline in

the costs of synchronization that would lead to new, concentrated business
structures. It enables the business to respond to the new and urgent competitive
forces by providing effective management of interdependence.
In the near future businesses would be facing a lack and a redundancy of

information called information glut. To solve the information-glut companies will
need to introduce methods for selective thinning out of information.
Improvements in telecommunications will make it easier to control business units
dispersed over different parts of the world. Advances in telecommunications,
would result in increased distance-communication. Indirect communication
would be preferred for well-structured information for routine, preprogrammed
and decision processes.
Running Businesses with Information Technology:

Small scale businesses need to buy software packages that would cater to their

specific management, operational, and functional needs. For this purpose, they
need to approach firms and IT manufacturers who deal in such software
applications. Other IT services include Internet marketing and Email marketing,
web hosting and promotions, and maintaining client networks. Larger businesses
on the other hand have their own operational and functional employees who
develop software applications and work on several IT needs of the businesses.
They usually purchase ERP softwares to coordinate different processes and
functions into a single application, which is actually more convenient.
Manufacturing businesses may make use of servers and databases to store their
vast data regarding inventory, B2B, B2C, FMCG (in the retail business sector),
etc. Automobile manufacturers use computers to guide manufacturing and
designing tools to function in a precise manner, ruling out the possibilities of any
human error. Businesses all around the globe have to take the aid of information
technology in some way or the other to keep themselves in sync with the market
and the world. There are several departments in business organizations such as
HR and recruitment, finance and payroll, administration, and security. All these
departments utilize IT to carry out their respective operations in a productive
manner and efficient manner.
The information technology role in business sector certainly is of a great

importance, which enables businesses to effectively and successfully plan,
manage, execute strategies which lead to profit. Moreover, the impact of
information technology on business is on the rise, as several advancements are
focused on to be implemented in various business processes.
SOME OF THE ADVANTAGES OF INFORMATION TECHNOLOGY

INCLUDE
Globalization: -
IT has not only brought the world closer together, but it has allowed the world's
economy to become a single interdependent system. This means that we can not
only share information quickly and efficiently, but we can also bring down
barriers of linguistic and geographic boundaries. The world has developed into a
global village due to the help of information technology, allowing countries like
Chile and Japan who are not only separated by distance but also by language to
share ideas and information with each other.
Communication
Prepared By: Bhavesh Pandya IILM BS, Mumbai 10 | P a g e

With the help of information technology, communication has also become
cheaper, quicker, and more efficient. We can now communicate with anyone
around the globe by simply text messaging them, or sending them an email, for
an almost instantaneous response. The internet has also opened up face-to-face
direct communication from different parts of the world, thanks to the help of
video-conferencing
Cost Effectiveness:-
Information technology has helped to computerize the business process, thus
streamlining businesses to make them extremely cost effective money-making
machines. This, in turn, increases productivity, which ultimately gives rise to
profits; that means better pay and less strenuous working conditions.
Bridging the cultural gap: -

Information technology has helped to bridge the cultural gap by helping people
from different cultures to communicate with one another, and allow for the
exchange of views and ideas, thus increasing awareness and reducing prejudice.
More time: -
IT has made it possible for businesses to be open 24 x7 all over the globe. This
means that a business can be open anytime, anywhere, making purchases from
different countries easier and more convenient. It also means that you can have
your goods delivered right to your doorstep without having to move a single
muscle.
.
Creation of new jobs: -
Probably, the best advantage of information technology is the creation of new
and interesting jobs. Computer programmers, Systems analyzers, Hardware and
Software developers and Web designers are just some of the many new
employment opportunities created with the help of IT.
SOME DISADVANTAGES OF INFORMATION TECHNOLOGY:

Unemployment:-
While information technology may have streamlined the business process, it has
also crated job redundancies, downsizing and outsourcing. This means that a lot
of lower and middle level jobs have been done away with, causing more people
to become unemployed.
Privacy:-

Though information technology may have made. Communication quicker,
easier and more convenient, it has also brought along privacy issues. From cell
phone signal interceptions to e-mail hacking, people are now worried about their
once private information becoming public knowledge
Lack of job security:-

Industry experts believe that the internet has made job security a big issue, since
technology keeps on changing with each day. This means that one has to be in a
constant learning mode, if he or she wishes for their job to be secure.
Dominant culture: -
While information technology may have made the world a global village, it has
also contributed to one culture dominating another weaker one. For example, it is
now argued that US influences how most young teenagers all over the world now
act, dress and behave. Languages too have become overshadowed, with English
becoming the primary mode of communication for business and everything else.
CHAPTER-2
SCOPE STUDY
ORGANIZATION POINT OF VIEW:

Extended customer relationships
Competitive services delivering high value
Improved product and service delivery processes
Better customer knowledge and insight
Smooth, efficient customer service
Profit maximizing
Time consuming
To increase economic goal
To connect the whole market with low Effort
CONSUMER POINT OF VIEW:
To satisfied the need
To understand product feature
To know the companies specialty
To know the service provide by the companies Employment
CHAPTER-3

METHODOLOGY
MARKET RESEARCH
“Marketing research is a systematic problem analysis, model
building and fact finding for the purpose of important decision
making and control in the marketing of goods and services.”
--PHILIP KOTLER
TYPE OF RESEARCH:
Descriptive Research.
Analytical Research.
Applied Research.
Fundamental Research.
Exploratory Research.
Experimental Research.
Conceptual Research.
Empirical Research.
Comparative Research.
Laboratory or Library Research.
Individual or Group Research
RESEARCH APPROACH IS OF TWO TYPES:

1. Qualitative Approach – Deals with qualitative phenomenon related to quality
or kind.
It is based on subjective assessment of Behaviour, Attitude, Opinion, Impressions
etc.
2. Quantitative Approach – It is based on measurement of quantity or amount. It

is applicable to phenomena expressed in terms of quality.

STEPS INVOLVE IN MARKET RESEARCH:
Purpose of study
Gathering the information
Determining the specific information
Determining the source of information
Research method for collecting the data
Analysis of the data Taking optimal decision
CRM Formation Process:

In the formation process, three important decision areas relate to defining the
purpose (or objectives) of engaging in CRM, selecting parties (or customer
partners) for appropriate CRM programs and developing programs (or relational
activity schemes) for relationship engagement with the customer.
Team Structure
Purpose
 Prepared
IncreaseBy: Bhavesh Pandya IILM BS, Mumbai 15 | P a g e
Effectiveness
Role specification
Planning Process Relationship
Performance
Planning Process
 Strategic
 Financial
 Marketing
Process Alignment  Retention
Programs
 Satisfaction
 Account Management  Loyalty
Monitoring
 Retention Marketing
 Co-op Agreements
Communication
Partners
 Criteria
 Process
Employee Motivation
Employee Training
Evolution
 Enhancement
 Improvement
-
CRM PROCESS WITH TECHNOLOGY:

CRM IN BUSINESS WITH TECHNOLOGY:

Technological Tools for CRM:
 Customer database:

A good customer information system should consist of a regular flow of
information, systematic collection of information that is properly evaluated and
compared against different points in time, and it has sufficient depth to understand
the customer and accurately anticipate their behavioral patterns in future. The
customer database helps the company to plan, implement, and monitor customer
contact. Customer relationships are increasingly sustained by information systems.
Companies are increasingly adding data from a variety of sources to their
databases. Customer data strategy should focus on processes to manage customer
acquisition, retention, and development.
Call Center helps in automating the operations of inbound and outbound calls
generated between company and its customer. These solutions integrate the voice
switch of automated telephone systems (e.g. EPABX) with an agent host software
allowing for automating call routing to agents, auto display of relevant customer
data, predictive dialing, self service Interactive Voice Response systems, etc.
These systems are useful in high volume segments like banking, telecom and
hospitality. Today, more innovative channels of interacting with customers are
emerging as a result of new technology, such as global telephone based calls
centers and the Internet. Companies are now focusing to offer solutions that
leverage the Internet in building comprehensive CRM systems allowing them to
handle customer interactions in all forms.
 Systems Integration:
While CRM solutions are front office automation solutions, ERP is back office
automation solution. An ERP helps in automating business functions of
production, finance, inventory, order fulfillment and human resource giving an
integrated view of business, where as CRM automates the relationship with
customer covering contact and opportunity management, marketing and product
knowledge, sales force management, sales forecasting, customer order processing
and fulfillment, delivery, installation, pre-sale and post-sale services and complaint
handling by providing an integrated view of the customer.
It is necessary that the two systems integrate with each other and complement
information as well as business workflow. Therefore, CRM and ERP are
complementary. This integration of CRM with ERP helps companies to provide
faster customer service through an enabled network, which can direct all customer
queries and issues through appropriate channels to the right place for speedy
resolution. This will help the company in tracking and correcting the product
problems reported by customers by feeding this information into the R&D
operations via ERP.
CRM – A FRAMEWORK
Traditional Approach to CRM Web-Enabled & Integration

Approach
Integration
with
 Customer Contact by technology
 Customer Information
 Telephone (Web & Internet)
System
 Mail  Customer Database
 In Person  Electronic Point of Sale
 Personal Selling  Sales Force Automation
 After Sales Service  Automation of Customer
 Complaint Handling Support
Data
Account Management
Mining for CRM: Some
 Customer care
Relevant issues:
Data mining is an important enabler for CRM. Advances in data storage and
processing technologies have made it possible today to store very large amounts
of data in what are called data warehouses and then use data mining tools to
extract relevant information. Data mining helps in the process of understanding a
customer by providing the necessary information and facilitates informed
decision-making.
Operational CRM solutions involve integration of business processes involving

customer touch points. Collaborative CRM involves the facilitation of
collaborative services (such as e-mail) to facilitate interactions between customer
and employees. All this effort produces rich data that feeds the Analytical CRM
technologies.
Operational CRM Analytical CRM Collaborative CRM

Customer
Interactions between CRM Technologies

What is E-CRM?
In simplest terms E-CRM provides companies with means to conduct interactive,
personalized and relevant communications with customer across both electronic
and traditional channels. It utilizes a complete view of the customer to make
decisions about messaging, offers and channel delivery. It synchronies
communication across otherwise disjoint-customer facing systems. It adheres to
permission-based practices, respecting individual’s preferences regarding how
and whether they wish to communicate with you and it focuses on understanding
how the economics of customer relationship affect the business.
E-CRM Vs CRM:
CRM is essentially a business strategy for acquiring and maintaining the “right”
customers over the long term. Within this framework, a number of channels exist
for interacting with customers. One of these channels is “electronic” – and has
been labeled “e-commerce” or “e-business”. This electronic channel does not
replace the sales force, the call Centre, or even the fax. It is simply another
extension, albeit a powerful new one, to the customer. The thrust of E-CRM is
not what the organization is “doing on the web” but how fully the organization
ties its on-line channel back to its traditional channels, or customer touch points.
Why employ E-CRM?

Companies need to take firm initiatives on the E-CRM frontier to
Optimize the value of interactive relationship
Enable the business to extend its personalized reach
Company-ordinate marketing activities across all customer channels.
Leverage customer information for more effective E-marketing and
E-business
Focus the business on improving customer relationship and earning a
greater share of each customer’s business through consistent measurement,
assessment and “actionable” customer strategies.

The six “E’s” of E-CRM:
1. Electronic channels
2. Enterprise
3. Empowerment
4. Economics
5. Evaluation
6. External Information
E-CRM Architecture:
The primary inputs to this module are mainly from the E-CRM Assessment and
strategy alignment modules. During this stage the company will try and develop a
Connected Enterprise Architecture (CEA) within the context of the company’s
own CRM strategy. The following is a set of technical E-CRM capabilities and
applications that collectively and ideally comprise a full E-CRM solution:
 Customer Analytical Software
 Data mining software
 Campaign Management software
 Business Simulation
 A real time decision engine
CRM IN BAKING SECTOR WITH TECHNOLOGY

Consumers largely selected their banks based on how convenient the location
of bank's branches was to their homes or offices. With the advent of new
technologies in the business of bank, such as Internet Banking and ATMs,
now customers can freely chose any bank for their transactions. The pressures
of competitive and dynamic markets have contributed to the growth of CRM
in the Financial Services Sector.
24 x 7 Banking

ATMs
Phone Banking Numbers
Tax Centers
On line banking
Transition
Tax paying
Problem solving
Accounting checking
Query solving
Features of Internet Banking Include:

Online Balance inquiry for Savings Bank Account, Current Account, Term
Deposits, Loan Account.
Online Transaction Query
Quick View: Synopsis of last 6 transactions in your account.

Query: To view transaction of accounts, based on customers chosen
parameters
Details: To view personal account information
Request: To request cheque books.
Depository Account
Statement of Holding
Transactions Statement
Status of Instruction Display
For any queries that you may have, you could send a mail to the
relationship manager
Procedure of applying for 'iConnect':

Download the 'iConnect' form.
Fill all the account details.

Read the instructions overleaf before signing.
The iConnect form must be signed by all account holders.
Submit the form to any of our branch offices.
The Web Master shall send the password to you by mail.
Please change the password to you by as soon as you login for the first
time.
Established in 1994, ICICI Bank is today the second largest bank

in India and among the top 150 in the world. In less than a decade, the bank has
become a universal bank offering a well diversified portfolio of financial
services. It currently has assets of over US$ 79 billion and a market
capitalization of US$ 9 billion and services over 14 million customers through a
network of about 950 branches, 3300 ATM's and a 3200 seat call center (as of
2007). The hallmark of this exponential growth is ICICI Bank’s unwavering
focus on technology.
Key Business Drivers:
ICICI Bank was set up when the process of deregulation and liberalization had
just begun in India and the Reserve Bank of India (India’s central bank) had
paved the way for private players in the banking sector, which at that time was
dominated by state-owned and foreign banks. Serving the majority of the
country’s populace, state owned banks had a large branch network, with
minimal or no automation and little focus on service. Foreign banks, on the
other hand, deployed high-end technology, had innovative product offerings,
but had a very small branch network that serviced only corporate's and
individuals with high net-worth. Sensing an untapped opportunity, ICICI Bank
decided to target India’s burgeoning middle class and corporate's by offering a
high level of customer service and efficiency that rivaled the foreign banks, on
a much larger scale, at a lower cost. A crucial aspect of this strategy was the
emphasis on technology. ICICI Bank positioned itself as technology-savvy
customer friendly bank.

To support its technology focused strategy, ICICI Bank needed a robust
technology platform that would help it achieve its business goals. After an
intense evaluation of several global vendors, ICICI Bank identified Infosys as
its technology partner and selected Finacle, the universal banking solution from
Infosys, as its core banking platform. An open systems approach and low TCO
(Total Cost of Ownership) were some of the key benefits Finacle offered the
bank. Unlike most banks of that era, ICICI Bank was automated from day one,
when its first branch opened in the city of Chennai. Some of the reasons cited
by the bank for its decision to select Finacle includes Finacle’s future-proof
technology, best-of-breed retail and corporate banking features, scalable
architecture and proven implementation track record.
Solution Overview:
One of the biggest challenges for Finacle was ensuring straight through
processing (STP) of most of the financial transactions. With the ICICI group
having several companies under its umbrella, Finacle needed to seamlessly
integrate with multiple applications such as credit cards, mutual funds,
brokerage, call center and data warehousing systems. Another key challenge
was managing transaction volumes. ICICI Bank underwent a phase of organic
and inorganic growth, first by acquiring Bank of Madura followed by a reverse
merger of the bank with its parent organization, ICICI Limited. The scalable
and open systems based architecture, enabled Finacle to successfully manage
the resultant increase in transaction levels from 400,000 transactions a day in
2000 to nearly 2.1 million by 2005 with an associated growth in peak volumes
by 5.5 times. With Finacle, the bank currently has the ability to process 0.27
million cheques per day and manage 7000 concurrent users.

Over the years, the strategic partnership between ICICI Bank and Infosys that
started in 1994 has grown stronger and the close collaboration has resulted in
many innovations. For instance, in 1997, it was the first bank in India to offer
Internet banking with Finacle’s e-banking solution and established itself as a
leader in the Internet and E-Commerce space. The bank followed it up with
offering several e-Commerce services like Bill Payments, Funds Transfers and
Corporate Banking over the net. The internet is a critical element of ICICI
Bank’s award winning multi-channel strategy that is one of the main engines of
growth for the bank. Between 2000 and 2004, the bank has been able to
successfully move over 70 percent of routine banking transactions from the
branch to the other delivery channels, thus increasing overall efficiency.
Currently, only 25 percent of all transactions take place through branches and
75 percent through other delivery channels. This reduction in routine
transactions through the branch has enabled ICICI Bank to aggressively use its
branch network as customer acquisition units. On an average, ICICI Bank adds
300,000 customers a month, which is among the highest in the world.
Sha
Shareof
re of
Transactions
Transactions
March 2000
March 2004
B 94 25
ranches % %
A 3 43
TM's % %
I
2 21
nternet &
% %
Mobile

C 1 11
all Centers % %
Reaping The Benefits:

A powerful, scalable and flexible technology platform is essential for banks to
manage growth and compete successfully. And Finacle provides just the right
platform to ICICI Bank thus fueling its growth.
The bank has successfully leveraged the power of Finacle and has deployed the
solution in the areas of core banking, consumer e-banking, corporate e-banking
and CRM. With Finacle, ICICI Bank has also gained the flexibility to easily
develop new products targeted at specific segments such as ICICI Bank Young
Stars- a product targeting children, Women's Account addressing working
women and Bank@campus targeting students.
ICICI Bank is today recognized as a clear leader in the region and has won
numerous accolades worldwide for its technology-driven initiatives. In 2003,
the bank received the best multi-channel strategy award from The Banker
magazine and this year it was rated as the 2nd best retail bank in Asia by The
Asian Banker Journal. The bank has effectively used technology as a strategic
differentiator, thus not only redefining the rules of banking in India, but also
showcasing how technology can help in transforming a bank’s business.
E-CRM Components in Hotel Industry:
 Sales functionality: Contact management profiles and history, account

management including activities, order entry, proposal generation
 Sales management functionality: pipeline analysis (forecasting, sales cycle
analysis, temporary alignment and assignment, roll up and drill down
reporting).
 Telemarketing/Telesales functionality: call list assembly, auto dialing,
scripting, and order taking.
 Time management functionality: single user and group
calendar/scheduling, e-mail

 Customer service and support functionality: incident assignment,
escalation, tracking/reporting, problem management/resolution, order
management/promising, warranty/contract management
 Marketing functionality: campaign management, opportunity management,
web-based encyclopedia, configuration, market segmentation, lead
generations/enhancement/tracking.
 Executive information functionality: extensive and easy-to-use reporting
 ERP integration functionality: legacy systems, the web, third party external
information
 Data synchronization functionality: mobile synchronization with multiple
field devices, enterprise synchronization with multiple databases/application
servers
 E-commerce functionality: manages procurement through EDI link and
web-server and includes B2B and B2C applications
 Service support functionality: Worker orders, dispatching, real time
information transfer to field personnel via mobile technologies (Rmana &
Somayajulu, 2005)
Customer Service
Call Center Software
Help Desk Software
Partner Relationship Management
Contract Management Software: Contract Management Software enables an

enterprise to create, track and manage partnerships, contracts and agreements.
Example: Upside Software, Accruent Software, diCarta, I-Many.
Customer Relationship Management Software for the Hotel

Industry:
EXAMPLE:-

Guest Ware is a unique Customer Relationship Management System (CRMS)
designed specifically for the lodging industry to provide personalized guest
recognition and exceptional service quality. Leading hotel management
companies use Guest Ware to improve guest satisfaction, lower operating costs,
build guest loyalty, and increase revenues. (www.guestware.com)
Guest Ware is installed in over seven hundred hotels and resorts worldwide;
including Marriott International, Kempton Hotel Group, Hyatt Hotels, Star wood
and many independent hotels and resorts.
Marketing Solution - The CRM Approach
Now more than ever, it is critical for hospitality sales and marketing
professionals to maximize their return on investment (ROI) in marketing. Experts
agree targeted marketing to existing customers is the best way to increase
marketing ROI. Most industry consultants estimate the cost of finding a new
customer is between 5 and 10 times the cost of retaining an existing customer.
Improvement Analysis - Implement Process Improvement
Industry surveys show that guests are less likely to return if they experience a
problem during their stay. Guest Ware’s Improvement Analysis tools provides
with the information to eliminate recurring problems and keep guests coming
back, so to lower operating costs and increase guest satisfaction at the same time.
(Raghunath & Shields 2001)
Comment Card Tracking - Listen to your Customers
Customer survey on restaurant or an extensive questionnaire of guests, the Guest

Ware Comment Card Tracking system assists to manage customer feedback.
Guest Ware will improve productivity in the follow-up process and provide
valuable management reports to maximize the benefits of your surveys.
Guest ware Enterprise Solution – For Effective Means
Intended for hotel chains, brands and management companies, the Enterprise
Guest Ware database maintains a single view of the customer essentials for
CRM. Enterprise Guest Ware enhances property management systems (PMS) and
central reservations systems (CRS). It allows hotel companies to implement
enterprise CRM while leapfrogging existing hotel technology investments.

Communications Server - Two-way Messaging
The Guest Ware Communication Server integrates two-way messaging (or

other types of text-based messaging) with Guest Ware’s Rapid Response. It
allows staff to receive and close requests and maintenance issues from a pager
or cell phone. The software helps streamline service delivery and uses existing
e-mail systems or a modem to communicate with most two-way messaging
devices.
With the latest offerings in CRM, Hoteliers can:
 Develop comprehensive guest profiles from reservation information and

demonstrate to guests/customers that the property is in touch with their
needs
 Drive guest-centric data down to the transaction level, allowing employees

and guest-facing technology to deliver greater value to the
guest/customers.
 Generate a realistic profile on the spending and stay patterns of guests,

allowing the property to create guest-centric marketing for increased
loyalty and spending.
CRM IN AVIATION INDUSTRY:

CRM PROCESS IN AVIATION

• Today, more and more airlines are using the Internet to implement e-
business applications and CRM strategy.
• E-CRM involves far more than automating processes in sales,

marketing, and service
• Also increase the efficiency of these processes
• It involves conducting interactions with customers on a more informed

basis and individually tailoring them to customers' needs.
• What differentiates airlines in today's hyper-competitive market is

their ability to address their customer’s
 Preferences
 Priorities
• Establishing and strengthening long-term relationships with airline's

customers is the key to success.

IFFERENT SECTOR CRM IN INDIA
IT & TELECOM SECTOR
HOSPITALITY SECTOR
FINANCE SECTOR
RAILWAYS
TRAVELS AGENCIES
INSURANCE SECTOR
BANKING SECTOR
OTHERS

Canon and CRM
Canon needed a comprehensive customer database that could be made
available to front office personnel
It purchased and implemented a Siebel CRM package, which implemented
a Call Center CRM strategy in the sales department, among other things
Information that was stored for a period of 15 years was used in an attempt
to achieve customer satisfaction. Canon had 2200 users involved in its
implementation
Overall improvement was seen in three main areas – Call Center, Sales and
Service
DHL and CRM

DHL Global Mail needed a CRM solution that could cater to a global
network and ultimately provide a holistic view of the customer right across
the globe
DHL used Salesforce.com as its CRM platform in the dispatch and

delivery of parcels, and business post etc
The CRM suite was installed simultaneously around the globe within six
months and integrated with the existing systems to ensure data
centralization
It achieved an integrated approach to the customer worldwide and a single

view of the customer as well

Tata Motors and CRM
Tata Motors was looking for real-time availability of customer and product
data from its entire dealer network, faster response to customer requests,
increased productivity and revenue generation, and a system that would
give it a 360-degree view of customers across all possible touch points
The solution jointly deployed by Oracle, SAP and IBM had been
implemented in phases since 2003
The on-line CRM initiative now supports over 15,000 users, within the
company and among its channel partners in India and abroad, to conduct
all customer-facing transactions
Besides achieving the above objectives, the CRM package also helped in
leveraging data to improve customer interactions and streamline product
development and planning, which has helped Tata motors provide
additional value-added services to customers

Aviva and CRM
Aviva decided to implement a CRM suite even before it commenced its

Indian operations. The idea was to have a better interface with customers.
It also wanted to integrate its customer-facing departments
It picked Talisman from among four vendors after a stringent evaluation

exercise
Aviva took six months to implement the e-CRM suite. It implemented all
the e-CRM modules except for the chat module. Today there are 450 users
of the e-CRM suite at the company
The e-CRM implementation enabled Aviva to tap the potential of the

Indian insurance market by tailoring its products and services, and quickly
analyzing and adjusting its marketing initiatives

What are some key components of CRM software?
History and Trend Management:

History Tracking - get instant perspective into all customer interactions
Trend Management- see the status of all pending sales and potential
revenue of entire pipeline
CRM Software Automated Processes:

Remote Web Synchronization- automatically follow-up with leads
generated from your site
Automated Process Management - allows consistent communication with
customer based on user-defined criteria
CRM software Data-base Information:

Centralized Information - centralize, manage and simplify access to critical
business information
Industry Templates and Form s- allows access to a database of industry
specific CRM forms
CRM Software Sales and Marketing Analysis:

Sales & Quota Analyses - view forecasted sales, closed sales, and
comparisons between sales and quota
Leads Analysis - track responses to identify effective campaigns
CRM Software Mobil Technology Capabilities:

Synchronization Wizard - keep calendar and contact information up-to-
date on your PDA or laptop while you travel
Remote Access Capabilities - access your CRM software through the
internet.
Not all CRM software packages are the same. They will greatly range in price
and capabilities. CRM Advisor suggests a thorough evaluation is done comparing
multiple CRM software packages.

CRM SOFTWARES:

CHAPTER-4
ANALYSIS & DISCUSSION

IT IS KEY ELEMENT IN 21ST CENTURY
CRM is an acronym for ‘Customer Relationship Management’. CRM is a set of
strategies, processes, metrics, organizational culture and technology solutions
that enhance an organization's ability to see the differences in its customers’ and
prospects' behavior and needs, track new opportunities to better serve their
customers and act, instantly and profitably, on those differences and
opportunities. Recently CRM has taken a center stage in the business world with
businesses concentrating on saving money and increasing profits by redefining
internal processes and procedures. It costs a company dramatically less to retain
and grow an existing client, than it does to court new ones. It is said that “It is
seven times more expensive to acquire a new customer than to keep an existing
one”, therefore the value of customer information and management should never
be underestimated.
Customer relation management analysts say CRM is "a buzzword that's really not
so new. What's new is the technology is allowing us to do what we could do at
the turn of the century with the neighborhood grocer. He had few enough
customers and enough brainpower to keep track of everyone's preferences.
Technology has allowed us to go back to the future to this model." The aim of
CRM is optimize the use of technology and human resources for the business to
gain insight into the behavior of costumer. Seeing the new market (CRM)
emerge, the world’s leading business software vendors have reinvented
themselves to focus on CRM, and there has been a fierce competition for the
dominance in this market. Technology is now an essential part of CRM
nowadays but buying technology before defining CRM business goals, is a recipe
for disaster. It is important to remember that technology used for CRM should be
‘tailor made´ depending on the type of consumer base of the company and the
business goals. Companies need to understand CRM in relevance to customers
and customers only. Technology like call center services and software’s will
prove helpful only if they improve the customer services and relation, otherwise

all fancy technology is useless if it fails to benefit the customer. The CRM
services consist of the following major segments:
 Consulting services
 Implementation services
 CRM Outsourcing services
 Training services
There are various technical components of CRM like customer information,

sales, marketing trends and marketing efficacy that act in tandem to improve
relationship between companies and consumers. From a technological
perspective, it involves capturing customer data from across the organization and
consolidating all internally and externally acquired customer-related data in a
central database. This data is then analyzed and the results of the analysis are
distributed via customer touch points like mobile sales force, inbound and
outbound call centers, web sites, point-of-sale, email, etc., for use while dealing
with customers at these very touch points. The Internet has revolutionized the
way business is done and has virtually taken the enterprise information system
within the reach of the customer. It can be accessed through the call centers,
through the Internet and increasingly through mobile devices.
It has been predicted that the total worldwide market for CRM services will grow
to US$ 125.2 billion by 2004. With a vast talent pool India is fast becoming an
important development base of major CRM companies. Indian companies and
other institutions that offer jobs are jumping into the CRM bandwagon to seize a
chunk of the global market, both products as well as services Call centers,
catering primarily to the American and European markets are coming up in and
around the metros. With the easing of infrastructure constraints, India is likely to
emerge as a significant player in this segment. India even has a CRM Foundation
in New Delhi, founded with the purpose of assessing and improving CRM
practices. Although many Indian call centers have come up that cater to
international market, there are only a few Indian companies that have actively
taken up CRM. The CRM enabled companies include Tata Telecom, TVS
Electronics, HP India, Tata Infotech, Carrier Refrigeration, Tata Teleservices,

Satyam Infoway, Planet M, and Epicenter Technologies among many others.
Recently some of the mobile phone companies in India have started to integrate
CRM services to increase the consumer satisfaction. For the big mobile
operators, customer care is becoming the differentiator. Other sectors like
Banking and Insurance services are also deploying CRM solutions. ICICI bank
and ICICI prudential (insurance) along with several other large banking and
insurance companies are adopting CRM solutions.
Vendors and analysts agree that the need to acquire, retain and support customers
will stimulate greater investment in CRM. Like all other IT enabled services,
CRM is likely to grow at a rapid pace in India during the next few years.
There are various technical components of CRM like customer information,

sales, marketing trends and marketing efficacy that act in tandem to improve
relationship between companies and consumers. From a technological
perspective, it involves capturing customer data from across the organization and
consolidating all internally and externally acquired customer-related data in a
central database. This data is then analyzed and the results of the analysis are
distributed via customer touch points like mobile sales force, inbound and
outbound call centers, web sites, point-of-sale, email, etc., for use while dealing
with customers at these very touch points. The Internet has revolutionized the
way business is done and has virtually taken the enterprise information system
within the reach of the customer. It can be accessed through the call centers,
through the Internet and increasingly through mobile devices.
Vendors and analysts agree that the need to acquire, retain and support customers
will stimulate greater investment in CRM. Like all other IT enabled services,
CRM is likely to grow at a rapid pace in India during the next few years.
How firms use CRM technology:

Providers, large and small, are plying the market with alluring CRM technology.
Software that integrates operational and customer-facing systems, mines data and
provides decision support can seem irresistible. Quantum leaps in both
productivity and customer intimacy seem possible. At last, the internet can
become a significant revenue generator versus a black hole of expense.
Unfortunately, many companies fail to articulate strategy and implement business
process changes in advance of CRM technology investments. They accept the
“plug and play” promises of software firms and then struggle with systems
integration and organizational issues. For example, a financial services firm
invested in campaign management software that held the promise of automating
the delivery of “the right product offer to the right customer at the right time”.
Previously, the company had executed product driven direct mail drops (same
offer/many customers/same date) with declining response rates. The campaign
management tool promised orchestrated offers of many types to many customers
on an ongoing basis through multiple channels achieving higher response rates.
However, even as the tool entered installation and testing, major organizational
issues emerged: Who determined the priority of customers and offers? Was
funding of offers incremental or provided by the units whose products were
featured? If offer priorities skewed toward a particular product, did that product
unit’s profit plan increase? Did other units get profit relief if their products had
lesser priority? Or could they drop “bootleg” offers outside of the strategy? If the
call center generated much of the volume, did the retail branches get profit/quota
relief as business generation migrated? The larger message from the above
discussion is that technology is an enabler, merely mortar and/or lubricant around
a carefully crafted CCM. Organization alignment and decision-making protocols
must happen to support technology use. Evaluation of proprietary technology
development versus purchase, select investments and isolated pilots are all
advisable in the CRM arena. Further, with the recent technology sector
meltdown, due diligence around the stability/integrity of partners has never been
more crucial.

CHAPTER-5
CONCLUSION:
The future belongs to those companies who sustain the commitment, investment
and organizational agility in becoming customer-centric. They will attract more
loyal and profitable customers. They will become havens for more loyal and
productive employees and they will be richly rewarded by investors. Strategic use
of CRM technology will be a distinguishing feature of these leading companies.
And the improving economic climate will be a harbinger for their more rapid
emergence.

CHAPTER-6
BIBLOGRAPHY:
www.crm2day.com
www.axisbank.com
www.icicibank.com
www.wikipedia.com
www.answer.com
www.crmdaily.com
www.expresscomputeronline.com
CUSTOMER RELATION MANAGEMENT by
M.V.Kulkarni Everest Publishing House
RESEARCH METHOLOGY
MARKETING MANAGEMENT
BY PHILIP KOTLER

Impact of Information Technology in CRM: A Study On

Uploaded by

Copyright:

Available Formats

You might also like

Impact of Information Technology in CRM: A Study On

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Impact of Information Technology in CRM: A Study On

Uploaded by

Copyright:

Available Formats

A STUDY ON

Prepared By: Bhavesh Pandya IILM BS, Mumbai 2|Page

EASTERN INSTITUTE FOR INTEGRATED LEARNING IN

Prepared By: Bhavesh Pandya IILM BS, Mumbai 3|Page

This is to certify that Mr. BHAVESH N PANDYA (Enrollment No:

Signature with Date

Project / Training Guide Dean

Examiner Stamp of IILM BS

Prepared By: Bhavesh Pandya IILM BS, Mumbai 4|Page

4 ANALYSIS & DISCUSSION 39

Customer Relationship Management is a company-wide business strategy

Prepared By: Bhavesh Pandya IILM BS, Mumbai 7|Page

ADVANTAGES OF CRM IN BUSIBESS:

Customer relationship management tools include software and browser-based

ROLE OF INFORMATION TECHNOLOGY IN BUSINESS:

Prepared By: Bhavesh Pandya IILM BS, Mumbai 8|Page

The constant upgrade in information technology, along with increasing global

Effective implementation of information technology would decrease liability by

Information Technology is having impact on all trade industries and businesses,

The advances in Information Technology would result in remarkable decline in

In the near future businesses would be facing a lack and a redundancy of

Running Businesses with Information Technology:

Prepared By: Bhavesh Pandya IILM BS, Mumbai 9|Page

The information technology role in business sector certainly is of a great

SOME OF THE ADVANTAGES OF INFORMATION TECHNOLOGY

Prepared By: Bhavesh Pandya IILM BS, Mumbai 10 | P a g e

Bridging the cultural gap: -

SOME DISADVANTAGES OF INFORMATION TECHNOLOGY:

Prepared By: Bhavesh Pandya IILM BS, Mumbai 11 | P a g e

Lack of job security:-

ORGANIZATION POINT OF VIEW:

Competitive services delivering high value

Improved product and service delivery processes

Better customer knowledge and insight

Smooth, efficient customer service

To increase economic goal

To connect the whole market with low Effort

CONSUMER POINT OF VIEW:

To satisfied the need

To understand product feature

To know the companies specialty

To know the service provide by the companies Employment

Prepared By: Bhavesh Pandya IILM BS, Mumbai 13 | P a g e

RESEARCH APPROACH IS OF TWO TYPES:

2. Quantitative Approach – It is based on measurement of quantity or amount. It

Prepared By: Bhavesh Pandya IILM BS, Mumbai 14 | P a g e

Gathering the information

Determining the specific information

Determining the source of information

Research method for collecting the data

Analysis of the data Taking optimal decision

CRM Formation Process:

CRM PROCESS WITH TECHNOLOGY:

Prepared By: Bhavesh Pandya IILM BS, Mumbai 17 | P a g e

Prepared By: Bhavesh Pandya IILM BS, Mumbai 18 | P a g e

Traditional Approach to CRM Web-Enabled & Integration

Operational CRM solutions involve integration of business processes involving