Business Proposal CRM Replacement System †Click to Get a Solution

Question: Discuss about the Business Proposal for CRM Replacement System. Answer: Introduction The research emphasizes on the importance of CRM (Customer relationship management) replacement system with the help of a case study of Tangle Corp. The organization manufactures as well as delivers widgets to customers of the Asia Pacific region. After identifying some business issues, the line management team of the organization prepared a proposal for the executive management team in order to incorporate CRM replacement system. It is important to mention that the line management team analyzed their existing CRM system along with its impact on their day-to-day operations over the past six weeks. Based on their customer service capability, revenue potential and likely future outcomes, they came to the point that they need to change their current CRM system. Huge Challenges are there in bridging the gap between inventory system, accounting system and CRM system. The major reason behind this is their poor CRM system. It has been found that they have the opportunity to take their servi ce to a higher level. The issues and challenges are the major constraints that restrict them to make growth. It is expected that the organization would able to acquire sustainable competitive advantage and cost effectiveness by improving their CRM system. It is essential to mention here that the new system would involve significant investment in terms of cost, time and motivation. Problem Statement The line management team of the organization analyzes the current issues of their business and found that they have several site issues, sales issue, production issues, and technology issues. The expensive Sydney warehouse increases their expenditure what they need to control. On the other way, many warehouses need to be expanded. Investment is needed in these areas to increase the capacity of the warehouses. Besides, they fail to deliver customer satisfaction due to their different hours of operations of different sites. It has been found that their Singapore office is much larger than it is needed. This clears the fact that they fail to manage their costs well as investment properly. Apart from the site issues, some sales issues are also there. It has been found that the sales in New Zealand has been declining as the customers are unsatisfied for their poor service. Besides, the weakest supervision is the prime reason behind the poor performance of the sales staffs in Perth. Moreov er, they keep the customers record in their local offices only. As a result, it becomes difficult to help each other's customers. They have been experiencing increasing sales in Thailand and thus there is a need to open an office for permanent staffs. Along with that they confront strong competition from the competitors of Asian region. It has been found that the Perth factory manufactures unique widgets which have a high demand in other locations also. However, they fail to meet the customers' demand as they face shipping issues due to the slow arrival or high cost. Apart from this, they have huge technological issues which is their major weakness in competing with the competitors. The sales admin offices have no standard IT (Information Technology) deployment. They have different operating system for different sites. Besides, they cannot transfer the calls between the sites as the phone systems are disparate. Furthermore, the outdated company website does not support any interaction with their internal system and customer information. Proposed Solution Research Aim and Objectives: The major objectives of the research are framed in the below section: To analyze the current CRM system of Tangle Corp To demonstrate the issues that the organization is confronting currently To evaluate the importance of the CRM replacement system To illustrate a number of recommendation for improving their customer satisfaction level To find the ways of improving their cost effectiveness CRM Definitions Here, it is essential to elaborate what about the CRM system which specifies the need of a new CRM system in an organization. The prime purpose of CRM is to manage the relationship with the customers effectively. Through establishing effective CRM, the managers aim to increase revenue as well as profit by delivering the highest possible customer satisfaction. This includes all the customer oriented processes such as sales, marketing and technical support. However, ineffective CRM system can be the biggest weakness that prevents an organization to make growth. On the other way, the effective CRM system encompasses the entire activities including customer-centric services and product design Besides, it is the process of working on software capabilities regarding automating, tracking, and organizing communication with customers. It has been found that the sometimes the organizations need to replace or rebuild their CRM system to improve their customer relationship. The CRM operations ar e mainly used by the sales management team and some other company executives who are not so responsible about reducing the cost. However, it has been criticized that they generally cost them far more times than to save them. It is important to add in this context that the leaders should incorporate effective communication process with the employees in order to motivate as well as lead them in the right direction. Selection method Some specific methods and techniques would be used in selecting as well as implementing the new CRM system. The new CRM system would be framed and strategized by gathering the responses of all the stakeholders. Their opinions and viewpoints are important as they are key people who can improve the customer satisfaction. It is expected that the process would bring out the fact that the poor management system is the prime reason behind the issues they are facing at present. The complex as well as ineffective CRM system creates constraints in managing the business operations properly. Besides, it has been found that the leaders do not interact with the stakeholders by pursuing proper communication process. The stakeholders are not directed and motivated by the leaders and thus their performances are hampered. In such circumstances, it is require to change the CRM system for the betterment of their business. Implementation In implementing the new CRM system, the leaders of the organization would concentrate mainly on the staff training and IT infrastructure changing process. Staff training highly depends on the new system and the ability of both the leaders and staffs. Besides, the time of the training would also vary because of the different roles of the stakeholders. The production staff are expected to need two hours of training, whereas the sales staffs might need training of half a day. Furthermore, the administration staff would need a full day training. The leaders would incorporate the repetition based training programs so that they can enhance the efficiency of the staffs. In this context, it is important to mention that the total training program would be spread out over several days. The administration staff would be trained first and then the production staff and sales staffs. Apart from this, they would improve their network infrastructure. It has been mentioned before that the current network infrastructure is poor and thus improvement is required. Some systems such as inventory control, billing, email and many more are needed to be upgraded. Besides, a new CRM software solution can be one of the most essential tools in this process. They need to make sure that the all the clients and office information will be centrally stored in the CRM system software. It would help all offices and staffs to communicate with each other and provide better service to the customers. Costs and Risks It has been mentioned before that the new needs time and investment as well. In this context, it is important to mention that this would be benefitted in the long run. It is expected that the new system would reduce the present issues and help them to enhance their revenue as well as profit. The total expenditure is divided into one-off cost, non-expense one off cost, and monthly cost. One-off Cost: The expected cost for implementing the new CRM system is framed in the below table. Item Expected Cost Planning and Preparation $ 18,000 Initial server setup $ 4,500 Data Migration $ 3,000 Project Management $ 2,500 Staff training $ 8,000 Total $ 36,000 Non-Expense One-off Cost: The non-expense one off cost includes the time they would invest for implementing the new system. It is demonstrated below: Time to train the staffs Time to improve the data accuracy by direct entry Monthly Cost: It is predicted that 22 of admin staffs need to access all the system simultaneously. However, the cost has been predicted based on the number of users. Concurrent monthly users Monthly cost per user Total monthly cost 26-40 $ 47.50 $ 1,235 - $ 1,900 41-60 $ 45.00 $ 1,845 - $ 2,700 61-100 $ 42.50 $ 2,592 - $ 4,250 Benefits The expected benefits are: The productivity of all the staff would be increased The revenue and the profit from customer data mining and targeting would be increased The effectiveness of the tailored production services would be increased The service providing ability would be enhanced Competitive advantage As they would able to resolve their problems, they can concentrate on other factors also. Besides, the new CRM system implementation is a long term strategy which would help them to maximize their revenues as well as profit. As, the prime focus is to improve the customer relationship, it would help them to acquire competitive advantages. In the cases, when the customers are satisfied with the service and product it provide, they would tend to purchase from this organization. In the long run, they would able to obtain sustainable competitive advantage. Costs savings It is expected that the new CRM system would enhance their cost effectiveness also. They would able to minimize their expenditure along with maximizing the revenue. However, it is important to mention that it is possible only in the long run. This is because, the new system would increase the cost initially, in the short-run only. Conclusion and Recommendation: It is concluded that the business is presently confronting several issues due to having poor CRM system. Low satisfaction level of their customers is the prime challenge in acquiring competitive advantages over the major competitors. However, based on the expected outcome of the research, a number of recommendations are brought out. To incorporate modern CRM system with better network infrastructure To include CRM software solution so that all the information is stored centrally and available to all offices and office staffs To incorporate SaaS (Software-as-a-Service) Model to deliver a software based solution To motivate all the staffs for engaging in the new work environment To provide training programs to all the employees in order to enhance their work efficiency in monitoring the CRM system The recommendations are framed by based on the expected data analysis and outcome. It might vary in the final research.