Digital Tech Chapter 10-12 Exam 4 Study Guide
Digital Tech Chapter 10-12 Exam 4 Study Guide IS2080C
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This 2 page Study Guide was uploaded by Tam Notetaker on Thursday March 31, 2016. The Study Guide belongs to IS2080C at University of Cincinnati taught by David Rapien in Summer 2015. Since its upload, it has received 73 views. For similar materials see Digital Technologies for Business in Information technology at University of Cincinnati.
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Loyalty programs: Recognize customers who repeatedly use a vendor’s products or services. Loyalty programs are appropriate when two conditions are met: high frequency of repeat purchases, and limited product customization for each customer. Although loyalty programs are frequently referred to as rewards programs, their actual purpose is not to reward past behavior, but, rather, to influence future behavior. On-Demand CRM Systems: Systems hosted by an external vendor in the vendor’s data center. This arrangement spares the organization the costs associated with purchasing the system. In addition, because the vendor creates and maintains the system, the organization’s employees need to know how to access and utilize it. Salesforce is the best known on-demand CRM vendor. The company’s goal is to provide a new business model that allows companies to rent the CRM software instead of buying it. The secret to their success appears to be that CRM has common requirements across many customers. Consequently, Salesforce’s product meets the demands of its customers without a great deal of customization. Disadvantages: 1.) The vendor could prove to be unreliable, in which case the client company would have no CRM functionality at all 2.) Hosted software is difficult or impossible to modify, and only the vendor can upgrade it. 3.) Vendor hosted CRM software may be difficult to integrate with the organization’s existing software 4.) Giving strategic customer data to vendors always carries security and privacy issues. On premise ERP implementation: 1.) The vanilla approach: In this approach, a company implements a standard ERP package, using the package’s built in configuration options. When the system is implemented in this way, it will deviate only minimally from the package’s standardized settings. The vanilla approach can enable the company to perform the implementation more quickly. However, the extent to which the software is adapted to the organization’s specific processes is limited. Fortunately, a vanilla implementation provides general functions that can support the firm’s common business processes with relative ease, even if they are not a perfect fit for those processes. 2.) The custom approach: In this approach, a company implements a more customized ERP system by developing new ERP functions designed specifically for that firm. Decisions concerning the ERP’s degree of customization are specific to each organization. To utilize the custom approach, the organization must carefully analyze its existing business processes to develop a system that conforms to the organization’s particular processes. In addition customization is expensive and risky because computer code must be written and updated every time a new version of the ERP software is released. Going further, if the customization does not perfectly match the organization’s needs, then the system can be very difficult to use. 3.) The best of breed approach: This approach combines the benefits of the vanilla and customized systems while avoiding the extensive costs and risks associated with complete customization. Companies that adopt this approach mix and match core ERP modules as well as other extended ERP modules from different software providers to best fit their unique internal processes and value chains. Thus, a company may choose several core ERP modules from an established vendor to take advantage of industry best practices. Analytical CRM: Provide business intelligence by analyzing customer behavior and perceptions. For example, analytical CRM systems typically provide information concerning customer requests and transactions, as well as customer responses to the organization’s marketing, sales, and service initiatives. These systems also create statistical models of customer behavior and the value of customer relationships over time, as well as forecasts about acquiring, retaining, and losing customers. Analytical CRM Systems Analyze Customer Data for a variety of purposes: 1.) Designing and executing targeted marketing campaigns 2.) Increasing customer acquisition, cross-selling, and upselling 3.) Providing input to decisions relating to products and services (pricing and product development) 4.) Providing financial forecasting and customer profitability analysis Mobile CRM Systems: An interactive system that enables an organization to conduct communications related to sales, marketing, and customer service activities through a mobile medium for the purpose of building and maintaining relationships with its customers. Simply put, mobile CRM systems involve interacting directly with consumers through portable devices such as smartphones. Many forward thinking companies believe that mobile CRM systems have tremendous potential to create personalized customer relationships that may be accessed anywhere and at any time. Open-Source CRM Systems: The source code for open-source software is available at no cost and is available to users and developers Benefits: 1.) Favorable pricing and a wide variety of applications. 2.) These systems are easy to customize. This is an attractive feature for organizations that CRM software that is designed for their specific needs. 3.) Updates and bug fixes for open source CRM systems are rapidly distributed, and extensive support information is available free of charge. Risks: 1.) The most serious risks involve quality control. Because open source CRM systems are created by a large community of unpaid developers, there sometimes is no central authority responsible for overseeing the quality of the product. 2.) Furthermore, for best results, companies must have the same IT platform in place as the one on which the open source CRM system was developed. Social CRM: The use of social media technology and services to enable organizations to engage their customers in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent manner. In fact, social CRM is the company’s response to the customer’s ownership of this two way conversation. In social CRM, organizations monitor services such as Facebook, Twitter, and LinkedIn for relevant mentions of their products, services, and brand, and they respond accordingly. Social media are also providing methods that customers are using to obtain faster, better customer service. Operational CRM: Support front office business processes. Operational CRM systems provide the following benefits: 1.) Efficient, personalized marketing, sales, and service 2.) a 360 degree view of each customer 3.) The ability of sales and service employees to access employees to access a complete history of customer interaction with the organization, regardless of the tough point. Front-Office Processes: Those processes that directly interact with customers (i.e., sales, marketing, and service). FAIS & ERP Reports: All information systems produce reports: transaction processing systems, functional area information systems, ERP systems, customer relationship management systems, business intelligence systems, and so on. Reports are so closely associated with FAIS and ERP systems and they generally fall into three categories: 1.) Routine Reports: Reports produced at scheduled intervals. They range from hourly quality control reports to daily reports on absenteeism rates. Although routine reports are extremely valuable to an organization, managers frequently need special information that is not included in these reports. At other times, they need information that is normally included in routine reports, but at different times. An example is, “I need the report today, for the last three days, not for one week.) 2.) Ad-hoc Reports: Out-of-the routine reports. Drill-Down Reports: Displays a greater level of detail. For example, a manager might examine sales by region and decide to “drill down” by focusing specifically on sales by store and then by salesperson. Key Indicator Reports: Summarize the performance of critical activities. For example, a CFO might want to monitor cash flow and cash on hand. Comparative Reports: compare and contrast the performances of different business units or of a single unit during different time periods. 3.) Exception Reports: Include only information that falls outside certain threshold standards. To implement management by exception, management first establishes performance standards. The company then creates systems to monitor performance, to compare actual performance to the standards, and to identify exceptions to the standards. The system alerts managers to the exceptions via exception reports. Transaction: Any business event that generates data worthy of being captured and stored in a database. Examples of transactions are a product manufactured, a service sold, a person hired, and a payroll check generated. In another example, when you are checking out of Walmart, each time the cashier swipes an item across the bar code reader is one transaction. Transaction Processing System (TPS): Supports the monitoring, collection, storage, and processing of data from the organization’s basic business transactions, each of which generates and collects data continuously, in real time. The TPSs are critical to the success of any enterprise because they support core operations. TPSs are inputs for the functional area information systems and business intelligence systems, as well as business operations such as customer relationship management, knowledge management, and ecommerce. TPSs have to efficiently handle both high volumes of data and large variations in those volumes. In addition, they must avoid errors and downtime, record results accurately and securely, and maintain privacy and security. TPS Methods: 1.) Source Data Automation: A process in which organizations try to automate the TPS data entry as much as possible because of the large volume involved. 2.) Batch Processing: The firm collects data from transactions as they occur, placing them in groups or batches and then prepares and processes the batches periodically (say, every night) 3.) Online Transaction Processing (OLTP): Business transactions are processed online as soon as they occur. For example, when you pay for an item at a store, the system records the sale by reducing the inventory on hand by one unit, increasing sales figures for the item by one unit, and increasing the store’s cash position by the amount you paid. The system performs these tasks in real time by means of online technologies. Enterprise Resource Planning (ERP) Systems: Systems designed to correct a lack of communication among the functional area IS and they adopt a business process view of the overall organization to integrate the planning, management, and use of all of an organization’s resources, employing a common software platform and database. ERP is designed around business processes. A business process is a set of related steps or procedures designed to produce a specific outcome.ERP II Systems: Interorganizational ERP systems that provide Web-enabled links among a company’s key business systems—such as inventory and production—and its customers, suppliers, distributors, and other relevant parties. These links integrate internal facing ERP applications with the external focused applications of supply chain management and customer relationship management. Introduction to wireless technologies: 1.) Wireless: Without wires. 2.) Mobile: Something that changes its location over time. 3.) Mobile Computing: A real-time, wireless connection between a mobile device and other computing environments, such as the Internet or an intranet. 4.) Mobile Commerce (or M-Commerce): E-commerce (EC) transactions conducted with a mobile device. 5.) Pervasive Computing (or Ubiquitous Computing): Virtually every object has processing power with either wireless or wired connections to a global network. Wireless Devices and Dematerialization: 1.) Wireless Devices Provide Three Major Advantages: Small enough to easily carry or wear. Sufficient computing power to perform productive tasks. Can communicate wirelessly with the Internet and other devices. 2.) Wireless Devices disadvantages: People can use them to copy and pass on confidential information. For example, if you were an executive at intel, would you want workers snapping pictures of their colleagues with your secret new technology in the background? 3.) Dematerialization: A phenomenon that occurs when the functions of many physical devices are included in one other physical device. Consider that your smartphone includes the functions of digital cameras for images and video, radios, televisions, Internet access via Web browsers, recording studios, editing suites, movie theaters, GPS navigators, word processors, spreadsheets, stereos, flashlights, board games, card games, video games, an entire range of medical devices, maps, atlases, encyclopedias, dictionaries, translators, textbooks, watches, alarm clocks, books, calculators, address books, credit card swipers, magnifying glasses, money and credit cards, car keys, hotel keys, cellular telephony, Wi-Fi, e-mail access, text messaging, a full QWERTY keyboard, and many, many others. Wireless transmission media 1.) Microwave: Microwave transmission systems transmit data via electromagnetic waves. These systems are used for high volume, long distance, line of sight communication. (line of sight means that the transmitter and receiver are in view of each other) This requirement creates problems because the earth’s surface is flat. For this reason, microwave towers usually cannot be placed more than 30 miles apart. Clearly, then, microwave transmissions offer only a limited solution to data communications needs, especially over very long distances. Although long distance microwave data communications systems are still widely used, they are being replaced by satellite communications systems. Advantages: High bandwidth and relatively inexpensive. Disadvantages: Must have unobstructed line of sight and susceptible to environmental interference. 2.) Satellite: A wireless transmission system that uses satellites for broadcast communications. As with microwave transmission, satellites must receive and transmit data via line of sight. However the enormous footprint – the area of earth’s surface reached by a satellite’s transmission – overcomes the limitations of microwave data relay stations. The most basic rule governing footprint size is simple: The higher a satellite orbits, the larger its footprint. In contrast to line of sight with microwave, satellites use broadcast transmission, which sends signals to many receivers at one time. So, even though satellites are line of sight like microwave, they are high enough for broadcast transmission, thus overcoming the limitations of microwave. Currently, there are three types of satellites circling earth: GEO. MEO, LEO. Geostationary earth orbit satellites (GEO): Orbit 22,300 miles directly above the equator. These satellites maintain a fixed position above earth’s surface because, at their altitudes, their orbital period matches the 24 hour rotational period of earth. For this reason, receivers on earth do not have to track GEO satellites. GEO satellites are excellent for sending television programs to cable operators and for broadcasting directly to homes. One major limitation of GEO satellites is that their transmissions take a quarter of a second to send and return. This type of delay is call a propagation Delay which makes 2 way conversations difficult. Also, GEO satellites are large and expensive, and they require substantial amounts of power to launch. Medium earth orbit satellites (MEO): Located about 6,000 miles above earths surface. MEO orbits require more satellites to cover earth than GEO orbits because MEO footprints are smaller. MEO satellites have two advantages over GEO satellites: They are less expensive, and they do not have an appreciable propagation delay. However, because MEO satellites move with respect to a point on earths surface, receivers must track these satellites. Low earth orbit satellites (LEO): Located 400 to 700 miles above earth’s surface. Because LEO’s are much closer to Earth, they have little, if any, propagation delay. Like MEO satellites, however, LEO satellites move with respect to a point on earth’s surface and therefore must be tracked by receivers. Tracking LEO satellites is much more difficult than tracking MEO satellites because LEO satellites move much quicker relative to a point on earth. Unlike GEO and MEO satellites, LEO satellites can pick up signals from weak transmitters. This feature makes it possible for satellite telephones to operate via LEO satellites, because they can operate with less power and cost less to launch. At the same time, however, footprints of LEO satellites are small which means that many satellites are needed to cover the planet. For this reason, a single organization often produces multiple LEO satellites, known as LEO constellations. 3.) Satellite Applications: Global positioning systems (GPS): A wireless system that utilizes satellites to enable users to determine their position anywhere on earth. GPS is supported by 24 MEO satellites that are shared worldwide. The exact position of each satellite is always known because the satellite continuously broadcasts its position along with a time signal. By using the known speed of the signals and the distance from three satellites or four satellites, it is possible to find the location of any receiving station or user within a range of 10 feet. GPS software can also convert the user’s latitude and longitude on an electronic map. Internet over satellite (IOS): In many regions of the world, IOS is the only option available for internet connections because installing cables is either too expensive or physically impossible. IOS enables users to access the internet via GEO satellites from a dish mounted on the side of their homes. Although IOS makes the internet available to many people who otherwise could not access it, it has drawbacks. Not only do GEO satellite transmissions involve a propagation delay, but they also can be disrupted by environmental influences such as thunderstorms. 4.) Radio: Uses radio wave frequencies to send data directly between transmitters and receivers. Advantages: First, radio waves travel easily through normal office walls. Second radio devices are fairly inexpensive and easy to install. Third, radio waves can transmit data at high speeds. For these reasons, radio increasingly is being used to connect computers to both peripheral equipment and local area networks. Disadvantages: First, radio media can create electrical interference problems. Also, radio transmissions are susceptible to snooping by anyone who has similar equipment that operates on the same frequency. Another problem with radio transmission is that when you travel too far away from the source station, the signal breaks up and fades into static. Most radio signals can travel only 30 to 40 miles from their source. However, satellite radio overcomes this problem. 5.) Infrared: Infrared light is a red light that is not commonly visible to human eyes. Common applications of infrared light are found in remote control units for TVs and DVD and CD players. In addition, like radio transmission, infrared transceivers are used for short distance connections between computers and peripheral equipment and local area networks. A transceiver is a device that can both transmit and receive signals. Four major threats to Wireless Securities: 1.) Rogue access point: An unauthorized access point to a wireless network. The rogue could be someone in your organization who sets up an access point meaning no harm but fails to inform the IT department. In most serious cases, the rogue is an “evil twin”, someone who wishes to access a wireless network for malicious purposes. Evil twin: The attacker is in the vicinity with a Wi-Fi enabled computer and a separate connection to the internet. Using a hotspotter – a device that detects wireless networks and provides information on them – the attacker simulates a wireless access point with the same wireless network name as the one that authorized users expect. If the signal is strong enough, users will connect to the attacker’s system instead of the real access point. The attacker can then serve them a web page asking them to provide confidential information such as usernames, passwords, and account numbers. These attacks are more effective with public hotspots than with corporate networks. 2.) War driving: The act of locating WLANs while driving or walking around a city or elsewhere. To war drive or walk, you simply need a Wi-Fi detector and a wirelessly enabled computer. If a WLAN has a range that extends beyond a building in which it is located, then an unauthorized user might be able to intrude into the network. The intruder can then obtain free internet connection and possibly gain access to important data and other resources. 3.) Eavesdropping: Refers to efforts by unauthorized users to access data that are traveling over wireless networks. 4.) Radio frequency jamming: A person or device intentionally or unintentionally interferes with your wireless network transmissions. Short-Range Wireless Networks: Simplify the task of connecting one device to another. In addition, they eliminate wires, and they enable users to move around while they use the devices. In general, short range wireless networks have a range of 100 feet or less. (Bluetooth, ultra-wideband (UWB), and near-field communications (NFC). 1.) Bluetooth: An industry specification used to create small personal area networks, which is a computer network used for communication among computer devices located close to one person. (Examples are telephones, personal digital assistants, and smartphones). Common applications for Bluetooth are wireless handsets for cell phones and portable music players. Advantages of Bluetooth include low power consumption and the fact that it use omnidirectional radio waves which are waves that are emitted in all directions from a transmitter. For this reason, you do not have to point one Bluetooth device to another to create a connection. Bluetooth 1.0: Can link up to eight devices within a 10-meter area (about 30 feet) with a bandwidth of 700 kilobits per second (Kbps) using low-power, radio-based communication. Bluetooth 4.0: Can transmit up to approximately 25 megabits per second (Mbps) up to 100 meters (roughly 300 feet). 2.) Ultra-Wideband: A high-bandwidth wireless technology with transmission speeds in excess of 100 Mbps. This very high speed makes UWB a good choice for applications such as streaming multimedia from, say a personal computer to a television. Medium-Range Wireless Networks: These are the familiar wireless local area networks (WLANS). The most common type of medium range networks is Wireless Fidelity or Wi-fi. WLANS are useful in a variety of settings, some of which may be challenging. 1.) Wireless Fidelity (Wi-Fi): A medium range WLAN, which is a wired LAN but without the cables. Wi-Fi is a facility allowing computers smartphones, or other devices to connect to the internet or communicate with one another wirelessly within a particular area. Wi-Fi provides fast and easy internet or intranet broadband access from public hotspots located at airports, hotels, internet cafes, universities, conference centers, offices and homes. Users can access the internet while walking across campus, to their office, or their homes. In addition, users can access Wi-Fi with their laptops, desktops, or PDAs by adding a wireless network card. 2.) Wireless Access Point: In a typical configuration, a transmitter with an antenna, called a wireless access point, connects to a wired LAN or to satellite dishes that provide an internet connection. It is the networking hardware device that allows wireless devices to connect to a wired network using WI-FI. 3.) Hotspot: A wireless access point provides service to a number of users within a small geographical perimeter (up to approximately 300 feet), known as hotspot. Multiple wireless access points are needed to support a larger number of users across a larger geographical area. To communicate wirelessly, mobile devices, such as laptop PCs, typically have a built in wireless network interface capability. 4.) Wi-Fi Direct: Enables peer-to-peer communications, so devices can connect directly allowing users to transfer content among devices without having to rely on a wireless antenna. It can connect pairs or groups of devices at Wi-Fi speeds of up to 250 Mbps and at distances of up to 800 feet. Further, devices with Wi-Fi direct can broadcast their availability to other devices just as Bluetooth devices can. Finally, Wi- Fi direct is compatible with the more than 1 billion Wi-Fi devices currently in use. 5.) MiFi: A small, portable wireless device that provides users with a permanent Wi-Fi hotspot wherever they go with a range of about 10 meters (roughly 30 feet). Developed by Novatel, the Mifi device is also called an intelligent mobile hotspot. Accessing Wi-Fi through the Mi-Fi device allows up to 5 persons to be connected at the same time, sharing the same connection. Mifi also allows users to use voice over IP protocol to make free calls, both locally and internationally. Mifi provides broadband internet connectivity at any location that offers 3G cellular network coverage. One drawback is that Mifi is expensive both to acquire and to use. 6.) Super Wi-Fi: A wireless network proposal that creates long-distance wireless Internet connections which uses the lower-frequency “white spaces” between broadcast TV channels which enable the signal to travel further and penetrate walls better than normal Wi-Fi frequencies. The technology threatens cell phone carriers’ 3G technology, and it could eventually bring broadband wireless internet access to rural areas. 7.) Wireless Mesh Networks: These networks use multiple Wi-Fi access points to create a wide area network that can be quite large. Mesh networks could be considered a long range wireless network, but its not because they are essentially a series of interconnected local area networks. Wide-Area Wireless Networks: Networks that connect users to the Internet over a geographically dispersed territory. These networks typically operate over the licensed spectrum – that is, they use portions of the wireless spectrum that are regulated by the government. In contrast, Bluetooth, Wi-Fi, super Wi-Fi operate over the unlicensed spectrum and are therefore more prone to interference and security problems. In general wide area network technologies fall into 2 categories: cellular radio and wireless broadband. 1.) Cellular Radio: Cellular telephones (cell phones) provide two-way radio communications over a cellular network of base stations with seamless handoffs. The cell phone communicates with radio antennas, or towers, placed within adjacent geographic areas called cells. A telephone message is transmitted to the local cell (antenna) by the cell phone and then is passed from cell to cell until it reaches the cell of its destination. At this final cell, the message either is transmitted to the receiving cell phone or it is transferred to the public switched telephone system to be transmitted to a wireline telephone. This is why you can use a cell phone to call other cell phones as well as standard wireline phones. 2.) Wireless Broadband or WiMAX: Worldwide Interoperability for Microwave Access, popularly known as WiMAX, is the name for IEEE Standard 802.16 which has a wireless access range of up to 31 miles and a data transfer rate of up to 75 Mbps. It is a secure system that offers features such as voice and video. WiMAX antennas can transmit broadband internet connections to antennas on homes and businesses located miles away. For this reason, WiMAX can provide long distance broadband wireless access to rural areas and other locations that are not being served. Generations of Cellular Technology Evolution: 1.) First generation (1G): cellular networks used analog signals and had low bandwidth (capacity). 2.) Second generation (2G): uses digital signals primarily for voice communication; it provides data communication up to 10 Kbps. 3.) 2.5G: uses digital signals and provides voice and data communication up to 144 Kbps. 4.) Third generation (3G): uses digital signals and can transmit voice and data up to 384 Kbps when the device is moving at a walking pace, 128 Kbps when it is moving in a car, and up to 2 Mbps when it is in a fixed location. It supports video, Web browsing, and instant messaging. 3G does have disadvantages since in the U.S., companies use 2 separate technologies. (Verizon and Sprint use CDMA while T-mobile and AT&T use GSM). In addition, 3G is relatively expensive. In fact, most carriers limit how much information you can download and what you can use the service for. For instance, some carriers prohibit you from downloading or streaming audio or video. If you exceed the carrier’s limits, they have the right to cut off your service. 5.) Fourth generation (4G): is not one defined technology or standard. The International Telecommunications Union (ITU) has specified speed requirements for 4G: 100 Mbps (million bits per second) for high-mobility communications such as cars and trains, and 1 Gbps (billion bits per second) for low-mobility communications such as pedestrians. A 4G system is expected to provide a secure all-IP-based mobile broadband system to all types of mobile devices. Many of the 4G offerings do not meet the ITU specified speeds, but they call their service 4G nonetheless. 6.) Fifth Generation (5G): expected to be deployed by 2020, 5G networks are predicted to be faster and more intelligent than previous generations of cellular networks. With 5G, wearable computers (e.g., Fitbit), smartphones, tablets, and other devices with sensors that are location- and context-aware will work together with apps and services that you use. Evolution of CRM: 1.) Door to door marketing: A sales techniques in which a sales person walks from the door of one house to the door of another trying to sell a product or service to the general public. (Highly personalized 2.) Mass marketing: An attempt to appeal to an entire market with one basic marketing strategy utilizing mass distribution and mass media. (One size fits all) 3.) Segmentation: A marketing strategy which involved dividing a broad target market into subsets of consumers, businesses, or countries that have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them. 3 Commandments of CRM: 1.) One to one relationship between a customer and a seller 2.) Treat different customers differently 3.) Keep profitable customers and maximize lifetime revenue from them. CRM & Marketing: CRM helps companies: 1.) Acquire new customers 2.) Retain existing profitable customers 3.) Grow relationships with existing customers Defining Customer Relationship Management: 1.) Customer Touch Points: The numerous and diverse interactions organizations have with their customers. Traditional customer touch points include telephone contact, direct mailings, and actual physical interactions with customers during their visits to a store. Organizational CRM systems, however, must manage many additional customer touch points that occur through the use of popular personal technologies. These touch points include email, websites, and communications via smartphones. 2.) Data Consolidation is critical to an organization’s CRM efforts. The organization’s CRM systems must manage customer data effectively. In the past, customer data were stored in isolated systems (or silos) located in different functional areas across the business – for example, in separate databases in the finance, sales, logistics, and marketing departments. Consequently, data for individual customers were difficult to share across the various functional areas. 3.) 360° Data View Customer: Modern interconnected systems built around a data warehouse now make all customer related data available to every unit in business. This complete data set on each customer is called a 360 degree view of that customer. By accessing this view, a company can enhance its relationship with its customers and ultimately make more productive and profitable decisions. 4.) Collaborative CRM Systems: Data consolidation and 360 degree view of the customer enable the organization’s functional areas to readily share information about customers. This information sharing leads to collaborative CRM. Collaborative CRM systems provide effective and efficient interactive communication in all aspects of marketing, sales, and customer support with the customer throughout the entire organization. Collaborative CRM systems also enable customers to provide direct feedback to the organization. Cross selling: The marketing of additional related products to customers based on a previous purchase. This sales approach has been used very successfully by banks. For example, if you have a checking and savings account at your bank, then a bank officer will recommend other products for you, such as certificates of deposits (CDs) or other types of investments. Upselling: A strategy in which the salesperson provides customers with the opportunity to purchase related products or services of greater value in place of, or along with, the consumer’s initial product or service selection. For example, if a customer goes into an electronic store to buy a new television, a salesperson may show him a pricey 1080i HD LED television places next to a less expensive LCD television in the hope of selling the more expensive set. Bundling: A form of cross selling in which a business sells a group of products or services together at a lower price than their combined individual prices For example, your cable company might bundle cable TV, broadband internet access, and telephone service at a lower price than you would paid for each service separately Customer facing applications: An organization’s sales, field service, and customer interaction center representative interact directly with customers. These applications include customer service and support, sales force automation, marketing, and campaign management. a. Customer service and support: Customer service and support refers to systems that automate service requests, complaints, product returns, and requests for information. Today, organizations have implemented customer interaction centers (CIC), where organizational representatives use multiple channels such as the web, telephone, fax, and face to face interactions to communicate with customers. The CIC manages several different types of customer interaction. 1.) Call center: A centralized office set up to receive transmit a large volume of requests by telephone. Call centers enable companies to respond to a large variety of questions, including product support and complaints. 2.) Outbound telesales: Organizations also use the CIC to create a call list for the sales team, whose members contact sales prospects. This type of interaction is called outbound telesales. In these interactions, the customer and the sales team collaborate in discussing products and services that can satisfy customers’ needs and generate sales. 3.) Inbound teleservice: Customers can communicate directly with the CIC to initiate a sales order, inquire about products and services before placing an order, and obtain information about a transaction they have already made. These interactions are referred to as inbound teleservice. Teleservice representatives respond to requests either by utilizing service instructions stored in an organizational knowledge base or by noting incidents that can be addressed only by field service technicians. 4.) Help desk: Assist customers with their questions concerning products or services, and it also processes customer complaints. Complaints generate follow up activities such as quality control checks, delivery of replacement parts or products, service calls, generation of credit memos, and product returns. b. Sales Force Automation: The component of an operational CRM system that automatically records all of the components in a sales transaction process. 1.) Contact management system: Tracks all communications between the company and the customer, the purpose of each communication, and any necessary follow up. This system eliminates duplicated contacts and redundancy, which in turn reduces the risk of irritating customers. 2.) Sales lead tracking system: Lists potential customers or customers who have purchased related products; that is, products similar to those that the salesperson is trying to sell to the customer. 3.) Sales forecasting system: A mathematical technique for estimating future sales. 4.) Product knowledge system: A comprehensive source of information regarding products and services. 5.) Configurators: More developed SFA systems also have online product building features, called configurators that enable customers to model the product to meet their specific needs. c. Marketing: CRM systems can benefit the marketing department as well. For example, they enable marketers to identify and target their best customers, to manage marketing campaigns, and to generate quality leads for the sales teams. Additionally, CRM marketing applications can sift through volumes of customer data – a process known as data mining – to develop a purchasing profile; that is, a snapshot of a consumer’s buying habits that may lead to additional sales through cross selling, upselling, and bundling. d. Campaign Management applications: Help organizations plan campaigns that send the right messages to the right people through the right channels. Organizations manage their campaigns very carefully to avoid targeting people who have opted out of receiving marketing communications. Furthermore, companies use these applications to personalize individual messages for each particular customer. Customer touching applications: Applications and technologies with which customers interact and typically help themselves. 1.) Search and comparison capabilities: It is often difficult for customers to find what they want from the vast array of products and services available on the web. To assist customers, many online stores and malls offer search and comparison capabilities, as do independent comparison websites 2.) Technical and other information and services: Many organizations offer personalized experiences to induce customers to make purchases or to remain loyal. For example, websites often allow customers to download product manuals. One example, if General electric’s website, which provides detailed technical and maintenance information and sells replacement parts to customers who need to repair outdated home appliances. Another example, is Goodyear’s website, which provides information about tires and their use. 3.) Customized products and services: Another customer touching service that many online vendors use is mass customization, a process in which customers can configure their own products. For example, Dell allows customers to configure their own computer systems. In addition, customers can now view account balances or check the shipping status of orders at any time from their computers or smartphones. If you order books from Amazon, for example, you can look up the anticipated arrival date. 4.) Personalized web pages: Many organizations permit their customers to create personalized web pages. Customers use these pages to record purchases and preferences, as well as problems and requests. For example, American Airlines generates personalized web pages for each of its registered travel planning customers. 5.) FAQs: Frequently asked questions (FAQs) are a simple tool for answering repetitive customer queries. Customers may find the information they need by using this tool, thereby eliminating the need to communicate with an actual person. 6.) Email and automated response: The most popular tool for customer service is email. Inexpensive and fast, companies use email not only to answer customer inquiries but also to disseminate information, send alerts and product information, and conduct correspondence on any topic. Radio-Frequency Identification (RFID): Technology that allows manufacturers to attach tags with antennas and computer chips on goods and then track their movement through radio signals. RFID was developed to replace bar codes. a. Universal Product Code (UPC): A typical bar code made up of 12 digits that are batched in various groups. The first digit identifies the item type, the next five digits identify the manufacturer, and the next five identify the product. The last digit is a check digit for error detection. b. Limitations of Bar codes: 1.) Require a line of sight to the scanning device 2.) Pose substantial problems in a manufacturing plant, warehouse or shipping/receiving dock 3.) Can be ripped, soiled, or lost 4.) Identifies the manufacturer and product but not the actual item c. RFID Systems: Uses tags that have embedded microchips, which contain data, and antennas to transmit radio signals over a short distance to RFID readers. The readers pass the data over a network to a computer for processing. The chip in the RFID tag is programmed with information that uniquely identifies an item. It also contains information about the item such as its location and where and when it was made. d. QR code: a two-dimensional code, readable by dedicated QR readers and camera phones. QR codes have several advantages over bar codes: Advantages: 1.) QR codes can store much more information 2.) Data types stored in QR codes include numbers, text, URLs, and even Japanese characters 3.) QR codes are smaller because they store information both horizontally and vertically 4.) QR codes can be read from any direction or angle, so they are less likely to be misread 5.) QR codes are more resistant to damage e. Two basic types of RFID Tags: 1.) Active RFID: Tags that use internal batteries for power, and they broadcast radio waves to a reader. Because active tags contain batteries, they are more expensive than passive RFID tags, and they can be read over greater distances. Therefore, they are used primarily for more expensive items. 2.) Passive RFID: Tags rely entirely on readers for their power. They are less expensive than active tags, and can be read only up to 20 feet. For these reasons, they are generally applied to less expensive merchandise. TPS Methods: 1.) Source Data Automation: A process in which organizations try to automate the TPS data entry as much as possible because of the large volume involved. 2.) Batch Processing: The firm collects data from transactions as they occur, placing them in groups or batches and then prepares and processes the batches periodically (say, every night) 3.) Online Transaction Processing (OLTP): Business transactions are processed online as soon as they occur. For example, when you pay for an item at a store, the system records the sale by reducing the inventory on hand by one unit, increasing sales figures for the item by one unit, and increasing the store’s cash position by the amount you paid. The system performs these tasks in real time by means of online technologies. Telemetry applications: Telemetry is the wireless transmission and receipt of data gathered from remote sensors. Telemetry has numerous mobile computing applications. For example, technicians can use telemetry to identify maintenance problems in equipment. As another example, doctors can monitor patients and control medical equipment from a distance. An interesting telemetry application for individuals is an iphone app called find my iphone. This app provides several very helpful telemetry functions. If you lose your iphone, for example, it offers 2 ways to find its approximate location. First, you can sign into the apple icloud from any computer. Second, you can use the find my iphone app on another apple produ. Near-Field Communications: has the smallest range of any short-range wireless networks, and is designed to be embedded in mobile devices such as cell phones and credit cards. For example, using NFC, you can swipe your device within a few centimeters of POS terminals to pay for items. Mobility and Broad Reach: 1.) Mobility: means that users carry a device with them and can initiate a real-time contact with other systems from wherever they happen to be. 2.) Broad Reach: when users carry an open mobile device, they can be reached instantly, even across great distances. a. Mobility and Broad Reach Create Five Value-added Attributes that Break the Barriers of Geography and Time: 1.) Ubiquity: A mobile device can provide information and communication regardless of the user’s location. 2.) Convenience and instant connectivity: With an internet enabled mobile device, users can access the web, intranets, and other mobile devices quickly and easily, without booting up a PC or placing a call via a modem. 3.) Personalization: A company can customize information and send it to individual consumers as a short message service. 4.) Localization of products and services: Knowing a user’s physical location helps a company advertise its products and services. Mobile Computing: A real time connection between a mobile device and other computing environments, such as the internet or intranet. This innovation is revolutionizing how people use computers. It is spreading at work and at home; in education, healthcare, and entertainment; and in many other areas. Mobile Computing has two major characteristics that differentiate it from other forms of computing: mobility and broad reach.
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