Sunday, December 20, 2015

Module Name: IT for Managers


OPEN UNIVERSITY MALAYSIA
FACULTY OF BUSINESS MANAGEMENT
BMIT 5103
Information Technology for Managers


Name: Adam Khaleel


Lecturer: Khaja Moinudheen
Learning Centre: Villa College



Trimester:  May 2014

Contents



1.0 Executive Summary

CRM is a strategic approach that integrates people, business and technology to understand the needs of customers to be more satisfied. Customers are the vital key for each business and company to help them to grow. So, implementing CRM applications is one of the important tools that will help managers and companies to increase the satisfaction and loyalty of customers more than before. Beside this, there are some benefits which will affect customers after implementing CRM. These benefits will help the customers to become happy and pleasant of using the companies that is offering their product and services from using CRM facilities.
In this report, I propose a new IT based CRM model to enhance the CRM in Island Bank ltd (IBL). Hence, first part of this report will discuss the overview of the Island Bank ltd which will be established in Maldives. Second part will give a literature review on various CRM models used in banking industry. Third section will talk about the major key findings and the technological terms with the meanings. This will be followed by the description of the new CRM design and the implementation of the proposed model. The next section will explore possible directions for extending new CRM model to support other areas of the business in future. The last section will give a summary of this report and suggestions for future CRM of the business.



2.0 Section I: Introduction

2.1 General Overview

Today businesses are experiencing globalization, liberalization, increased competitiveness, increased customer switching rate, increasing customer acquisition costs, less brand loyalty, the more price sensitivity etc. in various industries. With the passage of time, marketing model is changing from the product-centered to the customer-centered stage. The new database technologies enable people get the knowledge of who the customers are, what they bought and when they bought and that even provide predictions based on their historical behavior. Hence it helps to understand and manage a close relationship with the customer to deliver the business goals. CRM helps companies to understand, as well as anticipate, the needs of current and potential customers. In future, successful companies will use IT based CRM to build a long-term relationship and to retain their customers (Xu et al., 2002).
In this paper, I propose a new IT based CRM model to enhance the CRM in IBL. To achieve this goal, the present paper is organized as follows. First section discusses the overview of the business. Second section deals with a literature review on the CRM models. Third section gives the technological terms and their meanings. This is followed by the description of the new CRM design and the implementation of system prototype. The next section explores possible directions for extending new CRM model to support other areas of the business. The last section refers to the conclusion giving summary and suggestions for future CRM of the business.

2.2 Business Overview

Island Bank ltd (IBL) is a new bank which will be opening on 1st of July 2014 in Maldives. It will start as a joint venture bank with 65% of shares owned by Government of Maldives and 35% shares owned by Axis Bank Limited from Sri Lanka. In the next year January, they have planned to sell its 49% shares to the public including the 35% shares owned by Axis Bank ltd in order to develop the capital.  They are going to start its operation with two branches. Headquarter will locate in Male’ and a branch in Addu city. Meantime, they have planned to setup 6 more branches in various provinces in Maldives. Hence they will have branches in each province and will be able to serve various customer groups throughout the country. Its head-quarter will be located in Male’ city, hence it will have a decentralized business structure. The departments include Information Technology, Finance, CRM and Marketing, International Banking, Corporate Affairs and Human Resources.
The banking industry in the Maldives includes seven banks which are 2 locally incorporated banks, 4 branches of foreign banks and a subsidiary of a foreign bank. The competitors for IBL include Bank of Ceylon, State Bank of India, Mauritius Commercial Bank, HSBC, Habeeb Bank, BML and Maldives Islamic bank. It has liquid assets around 25% of its assets. It is estimated that it will cover around 30% of market share. Its main target customer groups include individuals including foreigners, tourism and construction and fishing industries. IBL is going to provide the services like various bank accounts, card services, transnational travel and payments, internet banking, bill pays, personal loans, prepaid recharge, mobile banking, ATM services, direct debit, business card solutions, loan and leasing and merchant service solutions.
The vision is to become a regional strong financial institution that provides superior returns for all stakeholders. The mission is to become the top banker in Maldives by December 2015. The values are Integrity, Can-Do Attitude, and Passionate to Serve, Culture of Excellence and Serving the Community.
CRM objectives
1. Attract customers.
2. Engage customers' interest and participation.
3. Retain customers.
4. Learn about customer preferences.

2.3 Organization chart

 

 



The above diagram shows the organization chart of IBL. The branches 2, 3, 4, 5, 6 & 7 are branches which will be opened in future. Head-quarter with branch 1 and 6 departments will be there when they start its operation in Maldives.

3.0 Section II: Literature review

3.1 CRM

Various scholars have defined CRM from different perspectives. Parvatiyir and Sheth (2001) defined CRM as “a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer” others like Kincaid (2003) described it as “the strategic use of information, processes, technology and people to manage the relationship with customers across the whole customer cycle”. Wilson, Daniel, & McDonald (2002) describe CRM as a management approach that enables organizations to identify, attract and increase retention of profitable customers by managing relationships with them. The latest attempt to define CRM is by Buttle (2009) who defines it as “the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high quality customer related data and enabled by information technology”.
CRM definitions and interpretation vary among academics, across industries, between organizations or industries and even across departments within the same organization. Although there are differences in defining the concept, there is common emphasis in the definitions on the importance of “viewing CRM as a comprehensive set of strategies for managing those relationships with customers that relate to the overall process of marketing, sales, service and support within the organization” rather than as an independent stand-alone initiative not linked to the firm's overall business strategy (Kotorov, 2003; Ngai, 2005).

3.2 CRM Models

Model - 1



This model allows the perspective of all parties to be engaged and mined, with an eye toward determining what the departments – whose individual goals must be balanced against organizational ones-require from CRM. In addition, it helps uncover how the system can ascertain customer needs (Schmidt, n.d.).

Model- 2
 
 

This relationship model by Gummesson (1999) says that good relationships will leads to good external quality and good customer satisfaction. When there is good quality in internal relationships, the employee relationships will be improved. When the employee relation improves the external quality and customer satisfaction will be improved. As a result of this customers can be retained and profit of the firm will increase.
Model - 3

 

It includes strategic, analytical and operational CRM. Payne and Frow (2005) include Strategic CRM in a strategic framework for CRM with five cross-functional processes. In strategic CRM, the goal is to align the business strategy of the firm with the customer strategy. Buttle (2004) defines it as a top down perspective on CRM, which views CRM as a core customer centric business strategy that aims at winning and keeping profitable customers.
Model - 4
According to Goldenberg (2003), CRM consists of three critical elements which are people, process and technology that should be integrated through careful consideration by top management in order to attain its primary goal of achieving customer’s satisfaction.




Model -5
Peppers and Rogers suggest a different model that a CRM strategy should be based on the IDIC view. The stages are; Identify, Differentiate, Customize, and Interact whereby, Customize and Differentiate are based on analysis of customers, and Interact and Identify are the interactions with the customers. It has operational and analytical CRM.
 
(Kincaid, 2003).
Model - 6
According to Sin, Tse &Yim (2005) there are four elements of CRM system-Key customer focus, CRM organization, knowledge management and technology based CRM.



Model - 7




In this model, the above diagram shows the how the customers involve in trade with the use of social media and mobile devices (Tewari et al. 2013). The stages in consumer buying cycle in digital age are like to the social media and mobile devices.

3.3 CRM Concepts

According to the Meta Group (2001) there are three forms of CRM;
  • Operational CRM- The business processes and technologies that help improving the efficiency of day-to-day customers operations. Operational CRM includes sales, marketing and service automation.
  • Collaborative CRM- It manages all interactions between the firm and its customers (e-mails, face-to face interactions, voice technologies, etc.).
  • Analytical CRM- Analytical CRM concerns customer data analysis to improve business decisions. It includes data warehouse systems, customer profiling, reporting, analysis and data mining.
According to Gordon (2002) there four main CRM strategic capabilities which are;
  • Technology-This will enable the desired functionality for the CRM practice.
  • People- Skills, abilities and attitudes of the people responsible for the CRM initiative.
  • Process-The processes that the company has identified to enable or to ensure that the CRM objectives are fulfilled-these include the transactional interactions with the customers.
  • Knowledge and insight-To ensure stronger and deeper relationships with the right set of customers, companies need to identify the right approaches that will enable them to gain knowledge to gain insight for enhancing the customer value significantly.
Customer Relationship Management is a comprehensive business and marketing strategy that integrates technology, process and all business activities around the customer. Despite media type about the internet changing the rules of engagement with customers, it hasn’t changed the underlying fact that addressing customers’ needs leads to sustainable profit, and that E-CRM is related to customer satisfaction,(Feinberg and Kadam.,2002).
According to Buttle (2003) there are three level of CRM. Strategic - A top down perspective on CRM which views CRM as a core customer-centric business strategy that aims at winning and keeping profitable customers. Operational - A perspective on CRM which focuses on major automation projects such as service automation, sales force automation or marketing automation. Analytical - A bottom-up perspective on CRM which focuses on the intelligent mining of customer data for strategic or tactical purposes.

3.4 CRM trends


Evolution of CRM to SCRM


The above diagram shows evolution of CRM to SCRM which means the customer is going to drive the process, hours, channels and interaction that businesses have with them. So a traditional sales, service and marketing department are becoming outdated. According to a 2010 Online Influence Trend Tracker showed that 81% will go online to verify recommendations, 61% will specifically research product/service information, 55% will read user reviews and 43% will search ratings on websites (Mulligan, 2012).

CRM In Transition: Social CRM and Mobile CRM


The above diagram shows that new forms of customer relationship management are moving to the forefront of enterprise capabilities as companies begin a new era of investment in the function, says new data. But not all companies really ready to get more social and mobile, or they just reacting to seemingly irresistible customer demand. The companies that understand how to employ new CRM trends strategically seem most likely to benefit (Hinchcliffe, 2012).

3.5 Problem Definition

Since Island Bank ltd is a new business which is going to be established soon and it requires a good CRM model to run its operations successfully.

3.6 Problem Characteristics

Since Island Bank ltd is new business, it will have more challenges. It does not have any CRM model and market experience. It has a diverse customer groups located in various provinces. It has various competitors well established in the market.  

4.0 Section III.

4.1 Key ideas on CRM in today's trends

It is understood that CRM models are shifting to IT based CRM models by integrating the new technologies, mobile devices, social networks, cloud computing etc. All most all the CRM models and concept mentioned includes the technology but there are very few models which fit to the current business environments. Therefore a new IT based CRM models have to be developed to implement in the businesses like Island Bank ltd.

4.2 Technological terms and meanings

1. App - Short for “application software,” an app is essentially a piece of software with limited functionality, usually developed for a special purpose (501commons, n.d.).
2. Cloud - "The cloud" refers to services and technologies that allow computing to take place over the Internet in real time.
3. Technology - is the things which enable the desired functionality for the CRM practice.
4. People – Refers to the kills, abilities and attitudes of the people responsible for the CRM initiative.
5. Process- refers to the ways that the company has identified to enable or to ensure that the CRM objectives are fulfilled.
6. Knowledge - refers to the information to gain insight for enhancing the customer value significantly.
7. Operational – refers to the day-to-day customers operations which include sales, marketing and service automation.
8. Collaborative – refers to interactions between the firm and its customers.
9. Smartphone - A Smartphone is a mobile phone that runs an operating system and comes equipped with web browsing and Wi-Fi capability. Eg. Apple iPhone.
10. SMS - Short for "short message service," the term SMS usually refers to a text message sent via mobile phone.
11. Social Media - Social media refers to the set of web-based and mobile technologies that are used for communication and interaction, and often encourage users to create their own content. Eg. Facebook, Twitter.
12. URL - Short for "uniform resource locator," the acronym URL is used to describe a web address.
13. Analytical – refers to data analysis to improve business decisions.
14. Social CRM: refers to the use of social media services, techniques and technology to enable organizations to engage with their customers (501commons, n.d.).

5.0 Section IV

5.1 Proposed CRM Model

The proposed IT based CRM model for Island Bank ltd is as follows. It is a blend of cloud computing, mobile devices and social. This blend of social capabilities, mobile technology and cloud computing materialize into a new platform that forms the basis of a new information system. The inter-dependency is illustrated in below diagram. The mobile devices will create content, enables work anywhere and connect the cloud computing as well as the social networks in the bank. The cloud computing will help to assess, share and integrate content with multi-devices. Social web will help people to do the activities in real time with collaboration. It also will help to influence others. 
 

5.11 Mobile devices

Since Mobile devices continues to emerge as a subject of substantial industrial interest, various Mobile Applications are developed, released and available and these tools and resources are expanding. Experienced professionals share their knowledge mostly online (Strickland, 2014). Above the technical aspects, for the bank information system administrator and manager it is essential to know how mobile technology fits into Island bank ltd. Therefore, mobile devices are included in this proposed CRM model.
Mobile device Uses in IBL
IBL will be using mobile commerce to allow its customers to access account information and make transactions, such as check bank balances, process bill payments, transfer funds between accounts, verify deposits and other transactions.
Mobile banking will be done using a mobile phone to access bank account, credit card account, or other financial account. It can be done either by accessing bank's web page through the web browser on mobile phone, via text messaging, or by using an application downloaded to customer’s mobile phone.
The bank’s customers will be able to make payments like purchases, bill payments, charitable donations, payments to another person, or any other payments made using a mobile phone. The amount of the payment will be applied to phone bill or withdrawn directly from customers’ bank accounts.

Mobile Security

There can be two major impediments to consumers' adoption of mobile banking and mobile payment technologies. They are concern about security and the possibility of hackers remotely accessing consumers' phones.
IBL has developed certain rules that customers should follow to make sure their banking information remains safe. They should never follow a banking link sent to them in a text message or e-mail. These links could potentially lead to a spoofed Web site. It is always a good idea to navigate to the bank’s website directly. Customers should enter bank's web address into their phone and bookmark it. This will help them to avoid bogus websites. Customer should never send their account information or password via text message or e-mail.
Customers should make sure bank sanctions the app before download and install it. IBL will include a section on its website to let customers know about the official app. Once verified the app is official, it should not be difficult to download and install to their mobile devices. Mobile devices are less prone to malware attacks than computers but customer should still be careful when downloading all apps. Customers need to do a little research before downloading to make sure the app developer has a good reputation. With a little common sense and attention, mobile banking can be both convenient and secure to IBL’s customers.
Benefits
Mobile technology can improve the services offered by IBL to its customers.  For example, when meeting with customers bank can access its customer relationship management system - over the internet which allows updating customer details while away from the office. Alternatively, it can enable customers to pay for services without having to write a cheque or swipe a credit or use cash. More powerful solutions can link directly into the office network while working off-site to access such as database or accounting systems. Mobile technologies will enable IBL to work and connect 24/7, anytime, anywhere, changing the way people interact and cooperate with each other.
Mobile technology will help to great flexibility in working - for example, enabling home working, or working while traveling. It can support more flexible working practices by providing services over the internet. IBL mobile technology solution will include mobile infrastructure, mobile website or application development, mobile commerce solutions, mobile marketing solutions, mobile communication solutions, mobile technology hardware and software management solutions and GPS tracking solutions. These benefits can help to create good customer relation.

5.12 Cloud Computing

Cloud computing has become very attractive for companies in the last five years. Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction (Office of the privacy commissioner of Canada, n.d.). Therefore, cloud computing is included in this proposed CRM model.
Characteristics
The characteristics of cloud computing in IBL will include on-demand self-service, broad network access, resource pooling, rapid elasticity and measured service. On-demand self-service means that customers can request and manage their own computing resources. Broad network access allows services to be offered over the Internet or private networks. The pooled resources means that customers draw from a pool of computing resources, usually in remote data centers. Services can be scaled larger or smaller and use of a service is measured and customers are billed accordingly.
Deployment of cloud and Service model
The cloud computing service models are Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). Cloud services are typically made available via a private cloud, community cloud, public cloud or hybrid cloud (Office of the privacy commissioner of Canada, n.d.). Island Bank ltd will be using private cloud. The cloud infrastructure will be operated and managed by IBL.
Benefits
Cloud services will help to reduce the cost and complexity of owning and operating computers and networks. Some other benefits to users include scalability, reliability, and efficiency. Scalability means that cloud computing will offer unlimited processing and storage capacity. The cloud is reliable in that it enables access to applications and documents anywhere in the world via the Internet. Cloud computing is often considered efficient because it allows bank to free up resources to focus on innovation and product development
Another potential benefit is that personal information will be better protected in the cloud. Specifically, cloud computing will improve efforts to build privacy protection into technology from the start and the use of better security mechanisms. Cloud computing will enable more flexible IT acquisition and improvements, which will permit adjustments to procedures based on the sensitivity of the data. Cloud computing will also allow for better audit trails. In addition, information in the cloud is not as easily lost. These benefits can help to create good customer relation in IBL.
Potential risks
Since data is traveling over the Internet and is stored in remote locations all of this may raise the scale of exposure to possible breaches, both accidental and deliberate. Security issues like the need to segregate data when dealing with providers that serve multiple customers, potential secondary uses of the data are some of the areas that IBL should keep in mind when considering the cloud technology. They need to ensure that the personal information is appropriate handled.
In order to avoid these issues, they need to select a private cloud, or a virtual private cloud, where systems are virtually separated from each other through an encrypted environment inside a public cloud. They need to analyze which legacy applications are appropriate for the cloud. They need to ask the cloud provider for a definitive disaster recovery plan. They can have an internal revert strategy to quickly move to an alternate IT service model. They need to maintain regular backups of critical cloud-based assets and protect data through strong encryption. They also need to ask for regular security-event alerts from cloud vendors and ask them to flag specific mission-critical assets.

5.13 Social network

Social Media is a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0 and that allow the creation and exchange of user-generated content. Social software and social networking have generated an unprecedented level of employee and consumer participation. Social Media channels relevant to customer interactions broadly fall under two categories. Customer community/forum on bank’s own website And External Social Media sites such as Facebook, Twitter, YouTube, customer community/forum on external Social Media websites, etc  (Longani, 2009). Therefore, IBL will be using social network in its new CRM model.
Benefits
  1. The introducing of social network will improve customer service at IBL. Social media can resolve not just a single consumer’s issue, but those of other individuals who may share the same product or service challenge. Social media permits peer service, which taps into individual expertise and knowledge. Social media provides a richer and more accurate evaluation of customer value. This is done through tracking and assessing customers’ ability to influence others.
  2. Another upside of social media is that companies can eavesdrop on what customers are really thinking and saying. This will give IBL an early warning mechanism attuned to customer issues, opportunities, intelligence on competitors, and ideas for new products and services. These benefit will help to create good customer relation in IBL.
  3. Social media challenges
  4. There can be several challenges in supporting social media in the IBL. First, many people prefer to be anonymous, which makes it very difficult to know whether they are customers or prospects. Second, some information might be sensitive (consider credit card numbers) and cannot be released publicly. Third, social media requires a different set of procedures and agent skill sets, not unlike those needed for corporate communications.
  5. Social media Strategies
  1. To be successful with social media, IBL must create a single department responsible for customer engagement strategy across all media. Ongoing participation is required by other departments, including corporate communications and legal, would be ideal. This area can be a cross-functional interdepartmental working group or a merger of customer service and marketing. The goal is to get everyone on the same page, working closely together. Along the way, IBL needs to establish formal social media workflows. IBL will be using a branded “Fan” Pages on Social Networking Sites to establish a social media presence – on Facebook, Twitter, YouTube, and Flickr. Social media will be used to handle negative viral news about the bank. This will also help to create good customer relation in IBL.

5.2 Implementation

The implementation of CRM systems involves a great deal of complication and challenges. CRM is not a single technology that can be implemented to upshot increased customer satisfaction. The proposed CRM system is a comprehensive set of processes and tools backed by technology. Proper planning and a phased approach are recommended for the adoption of a CRM system. In this implementation phase, I propose a 5-stage approach to deploy CRM systems in IBL which is recommended by Al-Khouri (2012). According to him this implementation approach can be used to implement CRM model in businesses like IBL.
This framework includes a number of additional factors and focuses on the representation of identified critical success factors in the literature to improve usability and application in practice. This framework is designed in three phases: pre-implementation, implementation, and post-implementation. Each phase has a number of critical success factors associated with it that need management attention.
In the first phase, IBL needs to visualize and define the objectives of CRM system. This should set the desired expectations from the CRM system that should be translated later into an input to build CRM capabilities by balancing near-term impact with long-term strategy. The CRM objectives are already given in the business overview. Second phase includes creating a proposed design for the new system in the form of requirements, critical priorities, and overall system architecture. It should also list the CRM components and related technology components. The output of this phase will be used an input to the next phase. The proposed CRM design is already given in section 4.
The next phase is about implementation of the system. The selected components (social media, mobile devices and cloud computing) are deployed, implemented, and the output and outcomes will be monitored. Incremental deployment of CRM system provides a time-phased, measured roll-out. This will be done in future.
The third phase, post-implementation, is basically about measuring the impact of this new system and evaluating its success in achieving set objectives and outcomes, and the stage is set for the next iteration. This iteration approach seeks to introduce innovation through feedback and learning process to redesign and reassess its implementation. Innovation in technology adoption would need to be considered to optimize the banking process and the related customer experience enhancement. This phase ultimately represents the stage where the bank attempts to create and deliver public value. These two phases will also be done in future.
This framework design is also based on three dimensional streams: (1) management focus areas, (2) project steps and key success factors, in relation to each of the (3) implementation phases. Management focus areas include a set of necessary elements that need to be followed to promote the culture of results-based management. Results-based management is a management strategy that ensures that the processes, outputs, and services contribute to the achievement of clearly stated and measurable results that are altogether aimed at improving the overall organization performance. Such strategies encompass the following: empowering managers and holding them accountable; focusing on participation and partnership; developing supportive mechanisms; and creating a culture of information use within the organization.
The second dimension of project steps and key success factors include guiding processes and milestones that can be used as key milestones in a CRM implementation program. These can be used to examine and determine project plan thoroughness. The proposed elements are considered as fundamental building blocks for project planning approach for the CRM program implementation.
When implementing CRM systems, critical success factors can be particularly effective in supporting planning processes, in communicating the role of information technologies to senior management, and in promoting structured analysis processes. Since, IBL is new business these factors are not considered in developing the CRM model but these factors will be considered in future CRM developments.
Customer segmentation is a recommended activity in this proposed framework. Customer segmentation is the practice of dividing a customer base into groups of individuals who are similar in specific needs and preferences –such as age, gender, and other demographical and profiling attributes. The concept of looking at groups of customers, using the segmentation approach, would allow bank to develop better understandings of and responses to public needs. This should also allow them to better serve and maintain more effective relationships with their customers. The CRM solution will be designed to incorporate segmentation needs, with a focus on developing strategies that will improve the delivery of vital customer services.
However, management should note that; Critical success factors should not be confused with success criteria; those are outcomes of a project or achievements of an organization that are needed to be considered the project a success or to esteem the organization as successful. Success criteria are defined with the objectives. Critical success factors, on the other hand, are elements that are vital for a strategy to be successful. The critical success factors will drive the strategy forward. These factors will make or break the success of the strategy.
In addition to this, the following Gantt chart shows more details of this CRM model implementation in IBL.
 C:\Users\Adam\Desktop\gantt.jpg

6.0 Section V

According to the CRM Systems (n.d.), the CRM model can be applied to the following functional areas in a business like Island Bank Ltd.

6.1 Marketing

Potential customers can see business advertisements on mobile phones through a wide variety of mobile marketing technologies including: SMS (text) messaging, mobile websites, mobile applications, banner ads, QR codes, IVR messaging and more. These advertisements can be customized to reach a more specific, targeted audience thanks to software that "reads" the website or information individuals are seeking on their mobile device and displaying advertisements that relate to that information. Marketing can be made more effective by this customization, and because most customers or potential customers always have a mobile device handy, their exposure to advertisements is increased. Mailers, e-mail, telemarketing, trade shows, advertising, press releases and more can be organized, tracked and delivered through CRM Campaign Activity management in IBL.

6.2 Account Management

CRM will be used to maintain the bank’s summary page, allowing to quickly and easily reviewing basic client, prospect or partner information. This will allow management and others within the bank to view the latest communications, sales opportunities and support activities. The CRM system will allow for easy reviewing and sharing data across the enterprise with comprehensive account management by tracking the unique communication, marketing, opportunity, support cases and detailed company information, even tracking all contact specific documents in the company level library.

6.3 Activity Management

CRM will be used to provide users comprehensive calendaring capabilities to track all tasks and appointments. Which allows tasks, meetings and appointments to be easy to schedule and monitor throughout the bank. This allows users to set appointments and centralize all bank’s communications and employee interactions with every one of its customers.

6.4 Document Management

CRM document library will be used to store far more than just documents. It will be used to link all the files that must maintain within a transaction to make audit trail complete.  Any materials (.doc, .cad, .pdf, .wav, .xls and more) need to store internally as part of communications, tasks, companies, persons, opportunities and support cases are conveniently can be maintained within the CRM Library and are available to whomever may need access to them. It will provide a repository for all documents that CRM users need day to day, such as sales templates, price guides, and more.  This will ensure that everyone has access to the 'right version of the right documents' every time.

6.5 Knowledgebase

CRM will be used to create a Knowledgebase to store solutions to common support cases. Solutions can be linked to multiple support cases and can be automatically e-mailed to customers or users. CRM Knowledgebase will be made available to customers via the Customer Web-Self Service Area to provide 24x7 customer self-service.

6.6 System Administration

CRM will be used in system administration function of the bank. It will be used to alert staff when opportunities reach a certain stage. It will be used to create “thank you” letters for customers who get the service. It will be used to send e-mails when marketing activities reach a pre-defined response rate. It helps to send SMS or page customer service staff when the bank’s best customers call. It will also help CRM administrators to design the system’s overall security model, allowing users access to only the information that is pertinent to them.

6.7 Human resource management

CRM technologies will be used for managing bank’s human capital. This approach is called as Employee Resource Management (ERM). An ERM is a business process that fills gaps between an organizations and its employee to create a strong emotional and professional bonding among them. A well-integrated ERM will be provided to develop information base system for all Human resources. This is termed as Human Resource Information System (HRIS) which will provide a better interface for HRs to deal with internal employees and screens all problems associated with relationship among organization and employee. It includes Training, Leave Management, Payment or Compensation etc. IBL will be benefited by Employee Relationship Management if it is implementing it with CRM strategies with clear rules and guidelines.

6.8 Integration of branches

IBL will be using media like social media applications, such as Twitter, Facebook, and Viber as a means to better engage employees from in various branches. In addition by integrating CRM system, bank can improve communication inside and outside of business. Employees can have access to information about all customer interactions, regardless of which department or branch was in contact with them. This means that employee can respond quickly to any issues that arise – and that they may not have been aware of because of the disjointed systems and processes used in the past.

7.0 Section VI: Conclusion

Island bank ltd is a new joint ventured bank which will be commenced soon in banking industry in Maldives. It will have two branches when it starts and more branches will be established in various provinces in future. They will operate in national level by serving whole population in the country. It will have a decentralized business structure. Its main challenge is difficulty in competing existing competitors in the market.
CRM is a set of strategies for managing those relationships with customers that relate to the overall process of marketing, sales, service and support within the organization. In the literature review, seven different CRM strategies have been identified. There are different elements in various models but most of the models have the technology and customer elements. Meantime, some models have the employee and process elements. All these models are designed to build a good relation with the customers. However, only one model has the latest technological aspects. The three forms CRM are operational, collaborative and analytical. The traditional sales, service and marketing department is becoming outdated and CRM has evolved to SCRM.
IBL does not have any CRM model and market experience because it is a new business. Therefore a new IT based CRM model is developed based on the CRM models discussed in the literature. Meantime, the key technological terms and the meanings of these terms have given.
The proposed IT based CRM model is a blend of cloud computing, mobile devices and social media. This blend of social capabilities, mobile technology and cloud computing materialize into a new platform that forms the basis of a new information system. Mobile devices help to access account information and make transactions, such as check bank balances, process bill payments, transfer funds between accounts, verify deposits and other transactions. These devices have various security risks and benefits to the business. Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources. It has various service models. Meantime, it has several benefits and risks to the business. Social Media is a group of Internet-based applications that build on the ideological and technological foundations of Web and that allow the creation and exchange of user-generated content. It also has many benefits and challenges to the business.
To implement the proposed IT based CRM model a 5-stage approach is given. The 5 stages are visualize, design, implement, measure and innovate. This framework design was also based on three dimensional streams which are management focus areas, project steps and key success factors, in relation to each of the and implementation phases.
Finally, several functional areas are mentioned which can be extended the CRM work to support these areas. These functional areas include marketing, HR, account management, activity management, document management, knowledge base, administration and integration of branches.
In order to implement and develop CRM model successfully in IBL, it is recommended to give maximum support from all the departments and branches in the bank including the top, middle and operational levels. The employees need to follow the timelines given in each phases. The management need to communicate the process to all the departments and branches. In my opinion, the proposed IT based CRM model will help IBL to build a good relationship with its customers in this market.


7.0 References

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