Organizations may use advanced information systems to add value to their operations which may include the use of modern technology, like databases or software, to advance their economic position. These advanced systems may help to create a competitive advantage for an organization against its rivals by creating new ideas for executing operations. Furthermore, this implementation improves the existing information systems and the manner that customer information for research purposes is processed. Similarly, when the system is molded according to the organization’s model, it enables the organization’s focus to be on the customer service and product delivery.
One of the most prevalent examples of how an advanced information system may create value is with Customer Relation Management (CRM). The CRM can record data that may be used alongside analytic tools to investigate and understand the nature of the organization’s customer base. This information may be used to align the organization’s services according to the findings of the research and create a CRM model that may help to increase these customers’ satisfaction. Additionally, the organization may improve their marketing strategies and alter these marketing costs so that the products may find the target market quicker while also reducing the overall cost of gaining and holding loyal customers.
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Managing customer relationships mainly involves marketing, customer service, and automating sales. Automating the sales force enables the sales staff to increase their efficiency by limiting their sales effort to the most gainful customers. Customer service elements of the CRM model provide information and outfits that improve customer support and ensure the competence of the call centers as well as other alternatives offered to customers. Concerning marketing, the CRM may help to provide a socket from where members may manage marketing campaigns from many fronts and evaluate and increase the efficiency of these.
Social Customer Relationship Management (CRM) is the incorporation of social media channels and technology to help organizations engage with their customers in addition to the CRM. Some organizations are hesitant to implement social CRM modules due to its complexity. The model is resource-intensive, while also costly to run and maintain, and it may also be difficult to comprehend for workers. Additionally, some organizations may be cautious about the need for social algorithms that may need to be established, since these control the social aspects of the social CRM, like emails and other online services.
One recent technology that may benefit e-commerce is electronic retailing, or e-tailing. E-tailing is a business to customer model that sells physical products to customers or businesses directly. This model has become an alternative to physical store shopping, restaurants, and even pay-per-view services. E-tailing resulted from the widespread of internet and which its uses to provide these services online. Due to this, this business model offers a larger selection and consumer choice. Additionally, it is low cost and available 24 hours, which also makes it more convenient. An example of this business model is Amazon, which gains revenue by selling goods and services to customers.
Vodafone needed to implement an ERP system since it wanted to unify its operations globally. Vodafone had already established its business in various countries although it did not operate as a single unified entity. This is because the independent modules of the organization did not share data or business operations that were different from each other. As a result, it also lacked a common practice that would ensure its global operation as a singular entity. The Enterprise Resource Plan system was the solution that it needed to centralize its operation and enable the organization to share its services globally with unified process systems sourcing from the head office.
The ERP would help to make more general decisions through a well-organized decision-making process that would enable its operation to be globally competitive. Furthermore, the ERP system would ensure that the company was able to combine its purchasing ability by collaborating with its suppliers. This enabled effective stakeholder relations which in turn improved its management. Finally, the integration of information technology operations helped to increase its efficiency through resource sharing and tracking organization processes. This also provided a way of combining reporting systems across departments.
While planning on the implementation of the SAP ERP system, Vodafone recognized its incapacity in the skillset and other resources which were mandatory for effective management of the system. The organization hired Accenture to ensure that its workforce was properly trained on how to use the system effectively. Additionally, the organization contracted the services of IBM in the development and management of the project. Furthermore, instead of a full roll-out, Vodafone preferred its ERP implementation team to execute the plan sequentially, making sure the changes were being adopted incrementally. This method was especially effective in dealing with glitches and difficulties that would be faced in the implementation of the independent operating companies. Additionally, the implementation would take place beginning the rollout at one base and proceed after registering success.
The company separated the implementation and contracted the talent and manpower that it lacked also in training to ensure that it successfully adopted the system. However, the company might carry out market research and gain the necessary support while implementing changes in the future. This is because it is the best way of ensuring that the implementation is supported by the staff from the independent subsidiaries while also ensuring that their values and duties would not be compromised due to the adoption of the ERP system ( SOCA, 2017) . Additionally, this would help it to better customize the service delivery to the needs of the target market.
As a result of implementing the ERP and executing a global business transformation, Vodafone increased its business efficiency and this translated to massive annual cost savings, summing up to $719 million. The organization’s decision making has been unified and the organization has been centralized, increasing its overall efficiency. Furthermore, the company has been able to reduce the cost of information technology since the ERP was implemented. In a nutshell, the company has been able to get its various independent modules working more uniformly and adopting a shared service model and this has translated to long term profitability.
References
SOCA, D. A. (2017). Producers and consumers face to face with the technical advancements of the 3rd millennium. Holistic Marketing Management Journal , 7 (1), 32-35.
