CASE
STUDY 8 : CUSTOMER RELATIONSHIP MANAGEMENT HEADS TO THE CLOUD
1. What types of companies are most
likely to adopt cloud-based CRM software services? Why? What companies might
not be well- suited for this type of software?
The traditional enterprise software vendors like
Oracle are using their well established position to grad a share of the cloud-based
application market; newcomers like Right Now, Compiere, and Sugar CRM have
found success using some different tactics. Because most companies that are
interested in cloud computing are small or midsize and lack the know-how or
financial resources to successfully build and maintain CRM applications
in-house. However, the large companies have made the switch to cloud. Company
officials were hoping to eliminate maintenance and administrative costs, but
not at the expense of a storage system that meets their requirements, were
never out of service, and worked perfectly.
2. What are the advantages and
disadvantages of using cloud-based enterprise applications?
The cloud-based advantages as it attempted to merge
information from different sources, and many smaller companies have taken advantage
of a new type of cloud computing. For example, cloud-based applications can
merge customer data 25 disparate sources and applications into a single system.
The systems automates customer service functions including order conformations,
follow-up customer satisfaction surveys, and shipping notifications. Besides
that, the system tracks field activities for more than 10,000 accounts, with automated
reports and dashboards monitoring key performance indicators, sales calls, and
sales volume.
Disadvantage is that company officials were hoping
to eliminate maintenance and administrative costs, but not at the expense of a
storage system that met their requirements, was never out of service, and
worked perfectly and they will cost a lot of money from enterprise. Besides
that, companies that manage their CRM apps with a cloud infrastructure have no
guarantee that thei data will be available at all times, or even that the
provider will still exist in the future.
3. What management, organization,
and technology issues should be addressed in deciding whether to use a conventional
CRM system versus a cloud-based version?
Nikon found that not only Right Now had the
capability to implement that system, but also it had an array of other useful
services. When Nikon discovered that it could combine outbound e-mail, contact
management, and customer records into a single system in Right Now’s cloud, it
made the move, expecting to receive a solid return on the investment. However, more
customers found the information they needed on the Web, call response times
dropped by 50 percent, and incoming e-mail dropped by 70 percent. While Nikon
still hosts its SAP ERP system internally due to its complexity, Nikon switched
its entire CRM system to Right Now. Companies that manage their CRM apps with a
cloud infrastructure have no guarantees that their data will be available at
all times, or even that the provider will still exist in the future.
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