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MIS 2101 Project 1
Business Applications
Name
PART A – Customer Relationship Management
QUESTIONS
YOUR ANSWERS
Developing a CRM strategy is discussed in
chapter 8 of the Valacich book.
•
What changes are necessary for an
organization to successfully
implement a CRM?
An organization must include enterprise-
wide changes, including changes in: policy
and business, customer service, employee
training, and data collection. These changes
need to reflect a customer-focused culture
with emphasis on enhancing customer
experience and satisfaction. Also, these
changes must be considerate of customer
privacy.
In chapter 8 of the Valacich book, the terms
analytical CRM, collaborative CRM
and
operational CRM
are introduced.
According to the book,
What is an
analytical CRM?
What is a
collaborative CRM?
What is an
operational CRM?
Analytical CRM: Systems for analyzing
customer behavior and perceptions in order
to provide business intelligence.
Collaborative CRM: Systems for providing
effective and efficient communication with
the customer from the entire organization.
Operational CRM: Systems for automating
the fundamental business processes—
marketing, sales, and support—for
interacting with the customer.
List one function that a CRM performs for
the sales organization (from the Microsoft
site).
CRM allows employees to track sales
opportunities (individual, team, regional)
through the sales performance dashboard.
Visual displays such as sales pipelines
allow sales managers to see the dispersion
of their resources.
1
List one function that a CRM performs for
marketing organizations (from the
Microsoft site).
Provides a “SharePoint” solution to store
customer data. This stores quotes along
with other sales-related documents to foster
knowledge throughout the organization.
List one function that a CRM performs for
customer service organizations (from the
Microsoft site).
Provides immediate access to a
supervisor/manager via IM or Video Call
for functions such as approving a quote
discount for a customer. This allows
obtainment of timely approvals.
PART B – DECISION SUPPORT SYTEMS
A
NSWER
THE
Q
UESTIONS
FOR
P
ART
B H
ERE
QUESTIONS
YOUR ANSWERS
Which Sales Plan scenario provides the
highest total revenue (printer & ink
cartridge) over the life of the product?
Plan 4
$1,380,933,641
Which Sales Plan scenario provides the
highest level of total profit (printer & ink
cartridge) over the life of the product?
Plan 2
$683,153,813
Can it make sense to sell printers at a loss,
in order to maximize revenue and profit?
Why?
Yes. This is considered being a “loss
leader”—in other words, you sell at a loss
in order to gain market share. In turn, once
you control a larger portion of the market,
you can maximize profit through sales of
captive products (such as the inkjets in this
example).
As a manager using this DSS application,
which Sales Plan would you choose?
Why?
I would choose plan 2 since it has the
highest total profit. When making business
decisions, it is important to only consider
profit and not revenue or volume. Plan 2
also has the highest total profitability.
Table A
Sales & Marketing Scenarios: To be used for your DSS evaluations.
Sales Plan 1:
Price Assumptions
Price:
$75
Average Printer Life(years):
3
Printer Profit Margin:
-20%
Highest Expected Yearly Sales:
1,500,000
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