Measuring CRM and SCM benefits : a preliminary measurement model

Organizations invest heavily in Customer Relationship Management (CRM) and Supply Chain Management (SCM) systems, and their related infrastructure, presumably expecting positive benefits to the organization. Assessing the benefits of such applications is an important aspect of managing such systems. Considering the salient differences between CRM and SCM applications with other intra-organizational applications, existing Information Systems benefits measurement models and frameworks are ill-suited to gauge benefits of inter-organizational systems. This paper reports the preliminary findings of a measurement model developed to assess benefits of CRM and SCM applications. The preliminary model, which reflects the characteristics of the Analytic Theory, is derived using a review of 55 academic studies and 44 papers from the practice. Six hundred and six identified benefits were then synthesized in to 74 non-overlapping benefits, arranged under six dimensions.

Visitor relationship orientation of destination marketing organisations

The proposition underpinning this study is engaging in meaningful dialogue with previous visitors represents an efficient and effective use of resources for a destination marketing organization (DMO), compared to above the line advertising in broadcast media. However there has been a lack of attention in the tourism literature relating to destination switching, loyalty and customer relationship management (CRM) to test such a proposition. This paper reports an investigation of visitor relationship marketing (VRM) orientation among DMOs. A model of CRM orientation, which was developed from the wider marketing literature and a prior qualitative study, was used to develop a scale to operationalise DMO visitor relationship orientation. Due to a small sample, the Partial Least Squares (PLS) method of structural equation modelling was used to analyse the data. Although the sample limits the ability to generalise, the results indicated the DMOs’ visitor orientation is generally responsive and reactive rather than proactive.

Towards a CRM and SCM Benefits Measurement Model

Organizations invest heavily in Customer Relationship Management (CRM) and Supply Chain Management (SCM) systems, and their related infrastructure, presumably expecting positive benefits to the organization. Assessing the benefits of such systems is an important aspect of managing such systems. Given the substantial differences between CRM and SCM systems with traditional intra-organizational applications, existing Information Systems benefits measurement models and frameworks are ill-suited to gauge CRM and SCM benefits. This paper reports the preliminary findings of a research that seeks to develop a measurement model to assess benefits of CRM and SCM applications. The a-priori benefits measurement model is developed reviewing the 55 academic studies and 40 practitioner papers. The review of related literature yielded 606 benefits, which were later synthesized into 74 mutually exclusive benefit measures of CRM and SCM applications arranged under five dimensions.

New variational Bayesian approaches for statistical data mining : with applications to profiling and differentiating habitual consumption behaviour of customers in the wireless telecommunication industry

This thesis investigates profiling and differentiating customers through the use of statistical data mining techniques. The business application of our work centres on examining individuals’ seldomly studied yet critical consumption behaviour over an extensive time period within the context of the wireless telecommunication industry; consumption behaviour (as oppose to purchasing behaviour) is behaviour that has been performed so frequently that it become habitual and involves minimal intentions or decision making. Key variables investigated are the activity initialised timestamp and cell tower location as well as the activity type and usage quantity (e.g., voice call with duration in seconds); and the research focuses are on customers’ spatial and temporal usage behaviour. The main methodological emphasis is on the development of clustering models based on Gaussian mixture models (GMMs) which are fitted with the use of the recently developed variational Bayesian (VB) method. VB is an efficient deterministic alternative to the popular but computationally demandingMarkov chainMonte Carlo (MCMC) methods. The standard VBGMMalgorithm is extended by allowing component splitting such that it is robust to initial parameter choices and can automatically and efficiently determine the number of components. The new algorithm we propose allows more effective modelling of individuals’ highly heterogeneous and spiky spatial usage behaviour, or more generally human mobility patterns; the term spiky describes data patterns with large areas of low probability mixed with small areas of high probability. Customers are then characterised and segmented based on the fitted GMM which corresponds to how each of them uses the products/services spatially in their daily lives; this is essentially their likely lifestyle and occupational traits. Other significant research contributions include fitting GMMs using VB to circular data i.e., the temporal usage behaviour, and developing clustering algorithms suitable for high dimensional data based on the use of VB-GMM.

Leveraging social network data for analytical CRM strategies : the introduction of social BI

The skyrocketing trend for social media on the Internet greatly alters analytical Customer Relationship Management (CRM). Against this backdrop, the purpose of this paper is to advance the conceptual design of Business Intelligence (BI) systems with data identified from social networks. We develop an integrated social network data model, based on an in-depth analysis of Facebook. The data model can inform the design of data warehouses in order to offer new opportunities for CRM analyses, leading to a more consistent and richer picture of customers? characteristics, needs, wants, and demands. Four major contributions are offered. First, Social CRM and Social BI are introduced as emerging fields of research. Second, we develop a conceptual data model to identify and systematize the data available on online social networks. Third, based on the identified data, we design a multidimensional data model as an early contribution to the conceptual design of Social BI systems and demonstrate its application by developing management reports in a retail scenario. Fourth, intellectual challenges for advancing Social CRM and Social BI are discussed.

From the editor

In this issue of the Journal, the articles presented to the readers cover the breadth and depth of project management research and practice by addressing the relationship between project strategy and managing projects (Patanakul and Shenhar, “What Project Strategy Really Is: The Fundamental Building Block in Strategic Project Management”), on the need to align corporate strategy with program management (Ritson, Johansen, and Osborne, “Successful Programs Wanted: Exploring the Impact of Alignment”), identifying metrics to measure program success across project contexts (Shao, Müller, and Turner, “Measuring Program Success”), managing individual projects by identifying major risks in customer relationship management (CRM) implementation projects (Papadopoulos, Ojiako, Chipulu, and Lee, “The Criticality of Risk Factors in Customer Relationship Management Projects”), application of earned value management (EVM) to aerospace projects (Kwak and Anbari, “History, Practices, and Future of Earned Value Management in Government: Perspectives From NASA”), and capturing tacit knowledge of construction project professionals to determine the optimal construction site layout (Abdul-Rahman, Wang, and Siong, “Knowledge Acquisition Using Psychotherapy Technique for Critical Factors Influencing Construction Project Layout Planning”)...

Augmenting analytical CRM strategies with social BI

Large communities built around social media on the Internet offer an opportunity to augment analytical customer relationship management (CRM) strategies. The purpose of this paper is to provide direction to advance the conceptual design of business intelligence (BI) systems for implementing CRM strategies. After introducing social CRM and social BI as emerging fields of research, the authors match CRM strategies with a re-engineered conceptual data model of Facebook in order to illustrate the strategic value of these data. Subsequently, the authors design a multi-dimensional data model for social BI and demonstrate its applicability by designing management reports in a retail scenario. Building on the service blueprinting framework, the authors propose a structured research agenda for the emerging field of social BI.

Proposals for future BPM research directions

Business Process Management has substantially matured over the last two decades. The techniques, methods and systems available to scope, model, analyze, implement, execute, monitor and even mine a process have been scientifically researched and can be in most cases deployed in practice. In fact, many of these BPM capabilities are nowadays a commodity. However, an opportunity-rich environment and rapidly emerging digital disruptions require new BPM capabilities. In light of this context, this paper proposes three future research and development directions for BPM academics and professionals. First, Ambidextrous BPM demands the shift of focus from exploitative to explorative BPM. Second, Value-driven BPM postulates a stronger focus on the desired outcomes as opposed to the available BPM methods. Third, Customer Process Management suggests complementing the dominating internal view of BPM with a stronger, design-inspired view on the process experiences of external stakeholders.

Reflections on issues of power in packaged software selection

The adoption of packaged software is becoming increasingly common in a variety of organizations and much of the packaged software literature presents this as a straightforward, linear process based on rationalistic evaluation. This paper applies the framework of power relations developed by Markus and Bjørn-­‐Anderson (1987) to a longitudinal study concerning the adoption of a customer relationship management package in a small organization. This is used to highlight both overt and covert power issues within the selection and procurement of the product and illustrate the interplay of power between senior management, IT managers, IT vendors and consultants, and end-­‐users. The paper contributes to the growing body of literature on packaged software and also to our understanding of how power is deeply embedded within the surrounding processes.

IT consultants, salesmanship and the challenges of packaged software selection in SMEs

Purpose – This paper seeks to analyse the process of packaged software selection in a small organization, focussing particularly on the role of IT consultants as intermediaries in the process. Design/methodology/approach – This is based upon a longitudinal, qualitative field study concerning the adoption of a customer relationship management package in an SME management consultancy. Findings – The authors illustrate how the process of “salesmanship”, an activity directed by the vendor/consultant and focussed on the interests of senior management, marginalises user needs and ultimately secures the procurement of the software package. Research limitations/implications – Despite the best intentions the authors lose something of the rich detail of the lived experience of technology in presenting the case study as a linear narrative. Specifically, the authors have been unable to do justice to the complexity of the multifarious ways in which individual perceptions of the project were influenced and shaped by the opinions of others. Practical implications – Practitioners, particularly those from within SMEs, should be made aware of the ways in which external parties may have a vested interest in steering projects in a particular direction, which may not necessarily align with their own interests. Originality/value – This study highlights in detail the role of consultants and vendors in software selection processes, an area which has received minimal attention to date. Prior work in this area emphasises the necessary conditions for, and positive outcomes of, appointing external parties in an SME context, with only limited attention being paid to the potential problems such engagements may bring.

CRM packaged software : a study of organisational experiences

Customer Relationship Management (CRM) packaged software has become a key contributor to attempts at aligning business and IT strategies in recent years. Throughout the 1990s there was, in many organisations strategies, a shift from the need to manage transactions and toward relationship management. Where Enterprise Resource Planning packages dominated the management of transactions era, CRM packages lead in regard to relationships. At present, balanced views of CRM packages are scantly presented instead relying on vendor rhetoric. This paper uses case study research to analyse some of the issues associated with CRM packages. These issues include the limitations of CRM packages, the need for a relationship orientation and the problems of a dominant management perspective of CRM. It is suggested that these issues could be more readily accommodated by organisational detachment from beliefs in IT as utopia, consideration of prior IS theory and practice and a more informed approach to CRM package selection.

Art museums and the global tourist: Experience centres in experience-scapes

In the experience economy, the role of art museums has evolved so as to cater to global cultural tourists. These institutions were traditionally dedicated to didactic functions, and served cognoscenti with elite cultural tastes that were aligned with the avant-garde’s autonomous stance towards mass culture. In a post-avant-garde era however museums have focused on appealing to a broad clientele that often has little or no knowledge of historical or contemporary art. Many of these tourists want art to provide entertaining and novel experiences, rather than receiving pedagogical ‘training’. In response, art museums are turning into ‘experience venues’ and are being informed by ideas associated with new museology, as well as business approaches like Customer Experience Management. This has led to the provision of populist entertainment modes, such as blockbuster exhibitions, participatory art events, jazz nights, and wine tasting, and reveals that such museums recognize that today’s cultural tourist is part of an increasingly diverse and populous demographic, which shares many languages and value systems. As art museums have shifted attention to global tourists, they have come to play a greater role in gentrification projects and cultural precincts. The art museum now seems ideally suited to tourist-centric environments that offer a variety of immersive sensory experiences and combine museums (often designed by star-architects), international hotels, restaurants, high-end shopping zones, and other leisure forums. These include sites such as Port Maravilha urban waterfront development in Rio de Janiero, the Museum of Old and New Art in Hobart, and the Chateau La Coste winery and hotel complex in Provence. It can be argued that in a global experience economy, art museums have become experience centres in experience-scapes. This paper will examine the nature of the tourist experience in relation to the new art museum, and the latter’s increasingly important role in attracting tourists to urban and regional cultural precincts.

Predicting price-tag for customized goods

We discuss a dynamic pricing model which will aid automobile manufacturer in choosing the right price for customer segment. Though there is oligopoly market structure, the customers get "locked" into a particular technology/company which virtually makes the situation akin to a monopoly. There are associated network externalities and positive feedback. The key idea in monopoly pricing lies in extracting the customer surplus by exploiting the respective elasticities of demand. We present a Walrasian general equilibrium approach to determine the segment price. We compare the prices obtained from optimization model with that from Walrasian dynamics. The results are encouraging and can serve as a critical factor in Customer Relationship Management (CRM) and thereby effectively manage the lock-in.

Emerging bioenergy business at Finnish independent industrial sawmills

Finnish forest industry is in the middle of a radical change. Deepening recession and the falling demand of woodworking industry´s traditional products have forced also sawmilling industry to find new and more fertile solutions to improve their operational preconditions. In recent years, the role of bioenergy production has often been highlighted as a part of sawmills´ business repertoire. Sawmilling produces naturally a lot of by-products (e.g. bark, sawdust, chips) which could be exploited more effectively in energy production, and this would bring more incomes or maybe even create new business opportunities for sawmills. Production of bioenergy is also supported by government´s climate and energy policies favouring renewable energy sources, public financial subsidies, and soaring prices of fossil fuels. Also the decreasing production of domestic pulp and paper industry releases a fair amount of sawmills´ by-products for other uses. However, bioenergy production as a part of sawmills´ by-product utilization has been so far researched very little from a managerial point of view. The purpose of this study was to explore the relative significance of the main bioenergy-related processes, resources and factors at Finnish independent industrial sawmills including partnerships, cooperation, customers relationships and investments, and also the future perspectives of bioenergy business at these sawmills with the help of two resource-based approaches (resource-based view, natural-resource-based view). Data of the study comprised of secondary data (e.g. literature), and primary data which was attracted from interviews directed to sawmill managers (or equivalent persons in charge of decisions regarding bioenergy production at sawmill). While a literature review and the Delphi method with two questionnaires were utilized as the methods of the study. According to the results of the study, the most significant processes related to the value chain of bioenergy business are connected to raw material availability and procurement, and customer relationships management. In addition to raw material and services, the most significant resources included factory and machinery, personnel, collaboration, and geographic location. Long-term cooperation deals were clearly valued as the most significant form of collaboration, and especially in processes connected to raw material procurement. Study results also revealed that factors related to demand, subsidies and prices had highest importance in connection with sawmills´ future bioenergy business. However, majority of the respondents required that certain preconditions connected to the above-mentioned factors should be fulfilled before they will continue their bioenergy-related investments. Generally, the answers showed a wide divergence of opinions among the respondents which may refer to sawmills´ different emphases and expectations concerning bioenergy. In other words, bioenergy is still perceived as a quite novel and risky area of business at Finnish independent industrial sawmills. These results indicate that the massive expansion of bioenergy business at private sawmills in Finland is not a self-evident truth. The blocking barriers seem to be connected mainly to demand of bioenergy and money. Respondents´ answers disseminated a growing dissatisfaction towards the policies of authorities, which don´t treat equally sawmill-based bioenergy compared to other forms of bioenergy. This proposition was boiled down in a sawmill manager´s comment: “There is a lot of bioenergy available, if they just want to make use of it.” It seems that the positive effects of government´s policies favouring the renewables are not taking effect at private sawmills. However, as there anyway seems to be a lot of potential connected to emerging bioenergy business at Finnish independent industrial sawmills, there is also a clear need for more profound future studies over this topic.

El efecto del posicionamiento en la lealtad del cliente: Un análisis empírico para el caso de Iberdrola

[ES] En el presente trabajo se analiza la relación causal entre los conceptos de fidelidad del cliente y posicionamiento. Concretamente, se estudia el efecto diferenciado del posicionamiento percibido de una empresa en la lealtad de sus clientes, comprobando empíricamente dicha relación para el caso de Iberdrola.