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COMP 1006 Information System Management Assignment - Middle East College, Oman
Learning Outcomes -
1. Formulate the business rationale for an information system.
2. Explain how organizations' can be managed better by intelligent use of information systems.
3. Understanding information system security and reliability of the organization.
Case Study - Dow Corning and DirecTV: CRM Goes Mobile
Answer - Information System Management
Nowadays the concept of mCRM has been adopted by a number of business organizations in order to get a number of opportunities and advantages. At the outskirt, the study seeks to delineate the probable advantages of adopting mCRM in multinational organizations. Based on the study it has been found that there are a number of advantages of embracing mCRM such as sales growth, inbcr4easingh efficiency, offering better customer service and so on. The second question has dealt with the methods of motivating salespersons. The third question delineates the possibility of competitive advantages from mCRM. Based on the study it has been revealed that CRM helps considerably in the automation of the process and marketing of items effectively. The next question has exposed the probable benefits of CRM for marketing professionals. The last question has dealt with the probable reason behind the failure of the CRM projects. Based on the study, it is found that the predominant reasons behind the failure of the CRM projects encompass the problem of data synchronization, lack of strategy, lack of technical assistance, privacy concerns, and threats of losing data and so on.
In general, large multinational companies are gradually implementing the concept of mobile CRM services which possess phenomenal advantages pertaining to the expansion of the overall sales figures of an organization (Negahban, Kim & Kim, 2016). In this context, Dow Corning Companywith their sales director Reeves has encountered steep convergence with respect to its CRM and efforts pertaining to e-business. The director has furthermore led the team to streamline their compliances as well as every reporting operation elaborately.This highly corresponds to the refined and superior consumer experiencewhich will subsequently make it convenient for their particular sales team to utilize their broadened CRM system.
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Question 1 - Explain the possible advantages of mobile CRM for salespersons working in multinational companies. Discuss your answer in terms of sales growth, efficiency, customer service etc.
Answer - Possible advantages of mobile CRM for salespersons working in multinational companies
In any well-known corporate sector, the optimization of mobile CRM is of supreme importance due to a wide variety of reasons. It is actually an effective tool exclusively for mobile devices such as tablets, laptops as well as smartphones. This system enables the sales team to obtain very easy access to any prospective customer related data via an application (app)or any related web-browser comprising of CRM (Töllinen, Karjaluoto & Jayawardhena, 2015). It is solely designed with the intent of executing and operating activities completely on the basis of mobile platforms. There are a plethora of advantages pertaining to such CRM particularly for salespersons in MNCs.
Sales growth: A mobile CRM system strongly enables any organizations to remarkably to add as well as managing the company's valuable interactions and healthy relationships with any existing customers solely via mobile apps (Negahban, Kim & Kim, 2016). This, to a great extent, gradually enhances the growth of sales for a particular company and leads to better revenue generation. The valuable combination or merge of mobile devices with the overall mobile sales force marks the emergence of mobile CRM. In Dow Corning, where the main objective is to provide the prospective customers with the very best of their quality services at ease, similar determinant has been observed. The director of the abovementioned company, Reeves, is very well aware of the benefits as well as the shortcomings or loopholes of such enterprise technologies and the truth or actuality pertaining to the ways a salesperson is able to make use of CRM tools exclusively on their mobile devices. Many kinds of literature have also shown the true effectiveness of such a practice or formulation in a huge number of multinational companies including banking as well (Awasthi & Sangle, 2013). With such approaches, a company's diligent sales team rightly obtains instantaneous access to an extensively critical piece of information impeccably at the accurate time when they are in urgent need of it.Irrespective of a particular individual's availability or presence, mCRM lets the team stay properly connected, overview the entire purchase history of the consumer, log activities, information with respect to accounting and so on (Rodriguez & Trainor, 2016). It has aided and eradicated the most outdated practice which used to state the delayed reciprocation of the company due to the non-availability of the concerned staff.This benefits the sales growth phenomenally because every little information is obtained quite easily at the fingertips which allow the sales staff to invest a much lesser amount of time with respect to tracking information via other sources.
Efficiency: On one hand, this system is quite advantageous for sales growth. Likewise, mCRM also benefits the inculcated company by ameliorating the efficiency as well as overall team performance as observed in many pieces of works of literature (Kim et al., 2015). It provides sales management with the magnanimous access to almost every minute happening amidst the team. This reduces the substantial time for the hard-working employees and increases their overall working capacity which in turn aggravates the efficacies as well as core competencies(Salesforce.com, 2019). Such an enhances insight enables the workforce to actually be way more proactive that is quite evident from the pre-responses to unforeseen complications and business issues even before they have originated and spread their effects. In the given company, the director solely believes and balances every pushback particularly from the major sales folks associated with the overall demands of the CRM in their business unit.
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Customer Service: In general, the healthy management pertaining to customer service is highly solicited for any small or large business architectures (Dinulescu, Visinescu & Prybutok, 2018).An effective mCRM invariably results in a way faster entry pertaining to sales material. Any concerned representative, in this matter, is capable of then sending proper guidelines for pricing, magnifying marketing data, brochures consisting of product records and other significant aspects directly from the specific app without the worry of delivering delayed service. Such fast and instant actions will inevitably allow the sales rep to put all their attention on ameliorating the customer service that is linked to significant sales actions. Literally, such approaches facilitate customer service people to gain very easy accessibility to effectively regulate key information specifically wherever they are. Apart from the inevitable benefits, an mCRM progressively allows better flexibility in customer service and their functionalities. Such real-time updates correspond to the fact that the team is always equipped to provide even the slightest information at ease and most importantly at all times. Even for individuals whose official functionalities are not client oriented can utilize the app to regulate schedules, generate reports and above all perform intricate data analysis and archive them all in an unshakeable location.
Question 2 - The salespersons like to work independently. Their main focus is efficient time management. That's why they are not always ready to take up new technologies recommended by the higher management. On the basis of the case study, identify how the salespersons can be motivated to take up new technologies.
Answer - Identification of how the salespersons can be motivated from the given study to take up new technologies
In general, motivating any company's sales team must be primarily given huge attention to because this is what that heads the particular organization towards prosperity in the long run as far as progression is concerned. The director of the Dow Corning's sales and marketing domain, Reeves, is efficient and experienced enough to know the pattern followed by any salesperson. In general, salespeople tend to show strong ignorance towards any allocated task which relies on novel processes pertaining to management and administration that includes technological refinements as well until and unless such processes facilitate more revenues, better sales or let them more effectively utilize their treasured time (Limbu et al., 2016). The primary emphasis of any sales force is to manage their time in the most efficient manner. Based on this, it is often seen that they are to some extent highly hesitant to undertake any activity that relies on novel procedures prescribed by the higher authorities. They prefer working autonomously and show disinterested to operate and get regulated by hardcore corporate policies. Inculcating an environment that eradicates such practices by making the salespeople motivated to embrace new technologies requires enormous business strategies with the potentiality to uphold the fruitfulness of such approaches (Anaza & Nowlin, 2017). Reeves with his well-structured ideas and proficient marketing strategies invariably try to neutralize the major pushbacks that originate from the respective sales team of his company having enormous demands pertaining to expandable CRM for the unit of the business. They have largely employed a culture that most definitely encourages salespeople to work with more diligent efforts and abilities. To make this remarkably achievable, Reeves believes in sharing strong involvement which he thinks to be one of the most significant determinants to motivate such a team. They focus deeply on being responsive that includes timely reciprocation. Such practices must seriously be in vogue because the said company needs to work and explore a little more on this particular domain to ensure steady consistency of their business and work culture. A considerable portion of Reeves' assigned task ensures that the company's internal enterprise applications relying on SAP's services are highly intact and made so to be used by the entire sales group. They motivate the respective salespeople by incorporating a tangible CRM domain that puts a steady foundation with the sole intent of aiding their people to perform in a better way with the very best of their knowledge and abilities thereby providing even more access to the subsequent information system in their business architecture.
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The director along with his competent team always had maintained to ensure that they carefully listen to and enable the sales people to come up with every minute issue and also make easy ingress to using mobile applications and subsequent devices. They sincerely emphasized on giving prime importance to overview a single day from the lives of such workforce to gain a complete understanding of their allocations and functionalities rather than making them potter about solely under their corporate norms and instructions. Reeves and his team exhibited their lives by paying utmost consciousness towards a couple of significant things that include thinking via their task requirements, their top respective priorities, most common assigned tasks and above all procedure pain points relevant to determine any probable risk pertaining to the smooth operation of the business. By inculcating an intense strategy that believes in "less input-more output" those have automatically seemed to preach the overall deployment pertaining to mobile devices. Instead of imposing additional loads and ending in disastrous consequences, Dow Corning focused on simplifying each dimension of their unit and weed out the methods with care. They believe in steady logical explanations pertaining to the existence of each and every field. All these coherently work together to provide the utmost motivation to the concerned salespeople to snuggle new technologies and obey corporate directions.
Having said that the other aspect of the mentioned organization makes Reeves state that the procedure of the lead-generation of the sales domain streamlines on the Black-Berrys specifically for the sales force. Furthermore, such quick links also let them witness critical and censorious lead information and information inputs known to be tailored particularly to the screen size of the device. Reeves has a tentative estimation that reveals that such simplified specific lead follow-up exclusively through SAP application effectively saves almost 15-30 minutes each lead.
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Question 3 - Most of the executives support use mobile CRM platform. According to them it's a source of competitive edge against competitors. Do you agree with statement or not? Explain the answer with examples where CRM platform really provided competitive edge for some business enterprises.
Answer - The extent at which the mobile CRM can provide a competitive advantage to the company
The Mobile CRM application helps in the automation of the process of sales service as well as the marketing of the products and services which are provided by the company in order to allow the employees to have more time to invest in the customer interaction. CRM mobile application helps in increasing the productivity of the business. The use of mobile CRM helps in the improvement of the informational organization (Negahban, Kim & Kim, 2016). It increases the efficiency of multiple teams especially when they are involved in a project. The mobile CRM helps in an improved quality of analytical data handling and streamline reporting of the sales as well as delivery of the products to the customers. The Mobile CRM application is a tool which is also known to be the Customer Relationship Management tool which helps in providing solutions to the customers through efficient customer service as well as the analytical data which is provided by the tool helps in providing the necessary information related to the customer.
Integration of the CRM in the business activities help in the use of the innate benefits which help in the creation of the innate as well as a cost-saving powerhouse. The integration of the CRM not only helps in the management of the customer relationship but also help in the streamline operation of the other departments which includes supply chain, marketing department, logistics and the technical team (Negahban, Kim & Kim, 2016).
The CRM tool helps in accessing information within a small time in a mobile system at any time from any place. The application has opened a platform which has the ability to work even being away from the office. The CRM has increased the quality of the customer service which is provided by the company. For example, the sales individual with the help of the CRM application can recall any information regarding the customer account within few seconds and as a result, the customer feels that the company cares(Pedron et al., 2016). Further, the software also helps in saving time by allowing the individual to complete work without being on his desk or miss any updating of the meeting and visits made by the individual. For example, the sales representative may meet three customers in a day. After every meeting, the sales personnel can update the detail regarding the meeting and the detail related to the customer in the CRM. This will prevent in missing any information. In addition, CRM helps in improving the quality of the data and increasing the sales of the products as well as service.
It has been observed that the use of a CRM tool in the retention of the customers. With the increase in the retention of the customer helps in the increase of the profitability (Bhat&Darzi, 2016). According to the market research with every 5% retention of the customers, there is an increase of 75% profitability of the company. The integration of the CRM with the ERP assists in the monitoring of the credits and invoices of the customers. In addition, CRM integration with a business activity helps in the mobility of the business. This is the result of the ability of the application to integrate information related to the inventory; products and pricing information which the sales individual can also access with a click in their system and can help the customers faster. This is the various factors which have helped improving marketing activities, decreasing the time to market in cases of the newer products and customer services through multiple channels help in the competitive advantage to the company.
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Additionally, the use of CRM has to lead to a decrease in the total training of the individual. It was observed that with time in order to increase the knowledge of the individual on the various working system, the company invest a lot of time and training of the individuals. With the implementation of the CRM software leads to the different department together so that through use of the single platform, all the members of the different department of the organization can work together (Chahal&Bakshi, 2015). No matter whichever system is integrated with the CRM, the competitive advantage gives the benefit for better visibility of the data. In case of the monitoring of the social conversation, it helps in the comparison of the financials related to the customer, handling of the email threads and data related to the customer account. Thus the data integrating system which aids in the better support of the customers and streamlines the flow of information related to the business provides a competitive advantage to the company.
Question 4 - The CRM is beneficial for marketing professionals as they can achieve marketing targets by automated scheduling, targeted marketing, tracking marketing mailings etc. As an information system student, identify what may be the possible benefits for marketing professionals. Explain your answer in detail with examples.
Answer - The use of CRM for the benefits of marketing professionals
In business, customers are the most important factor in the business. Irrespective of the type of business, customers are the component which will affect the productivity and the profitability of the company. Customers help in providing the company with a purpose as well as direction. The feedback and the ideas which are provided by the company help in the implementation of newer concepts and services in the organization (Pedron et al., 2016). The main benefit of the mobile CRM helps in the identification, understanding and assistance of the customers. This will helps in maintaining the revenue of the company. The customer relationship management tool helps in knowing the customers more closely. This results in the ability of the organization to provide a positive experience for the clients which enhances the profit of the company. The needs and the expectation of the customer in addition to the requirement of the customers are essential to be recorded and document so that they can be accessed any time by any of the department of the organization. CRM removes the scope of sticky notes and disorganized cabinets of files which keep customer records and transfer them into electronic data in the cloud. This helps in the accessing of the file in a short span of time much easier and faster. For example, if the marketing manager wants to meet the customers which are newly added by the sales representative in order to understand the trend of the products or the service bought, they need to simply access the CRM portal and can easily find the details related to the customer.
CRM tool helps in enhancing the level of communication between the employees. For example, if the same customer is been handled by two different sales person and is been recorded by the CRM, the customer will have two points of contact in cases of requirement. If there is only one point of contact there will be a time the individual may not be available at some time, and then the customer may be forced to get help from some other company (Schreieck et al., 2017). In this case, the presence of two contacts will allow the company to provide assistance to the customers within a short time. The information which is been updated by every member of the organization in CRM, helps the team members to track the point of negotiation and discussion done with the customers.
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The CRM tool is designed in a way so that it only has the necessary information and features. The tool should be able to complement the business strategies and the process so that the application is in streamlined with the activities performed by the team. The sales team should be provided with the necessary training and the inputs during the training of the employees are also taken into consideration (Girchenko, Ovsiannikova&Girchenko, 2017). This will help in the modification of the application so that the task of updating the activity is easier and streamlined for the team members. The manager of the team should be able to communicate the advantages of the use of CRM tool for updating of the sales activity. It should be conveyed to the team members that the application removes the excess work of manual updating of the task and activities.
Time is valuable for both the customers and the sales team of the organization. In case there is any issue related to a product or service, the client will expect the resolution of the issue in a shorter span of time. During the use of CRM tool as soon as the customer raises an issue related to any product, the sales representative will retrieve the data related to the products and the past purchases which are done by the client so that the issue can be resolved faster (Frow et al., 2015). In many occasion, these records which are saved in the CRM have also assisted an individual in locating a solution within a few minutes due to the access database.
Automation of the business procedure is another benefit related to the use of a CRM tool. It has been observed that the process of completion of the sale is an elaborate process. After convincing the customer related to the products there are several tasks that need to be addressed before the product reaches the customer site (Cattaneo, Motta &Gurtner, 2015). There are forms that need to be filled, several reports related to the product to be sent, several legal issues and approval for the transport of the product needs to be attained which are time consuming but essential for the successful completion of the sales. The main purpose of the CRM is to remove the manual task in the processing of the sales and fasten the process of closing the lead and resolving the issues which might crop up in case of the transport of the product to the customer.
The CRM tool helps in the segmentation of the industry through job roles and the department. The tool can also provide information related to the number of the time the files were opened related to the account of the customer and the number of the times the customer has been provided with support (Marino & Lo Presti, 2018). It also helps in modifying the content of the sales as per the targeted group so that they require the department can handle the issue as soon as possible.
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Question 5 - The implementation of CRM provides great benefits for business organizations as they can identify their best customers which can be possessed for a longer time to get more profitable services. On the other hand, the CRM does not guarantee business benefits. More than 50 percent CRM projects did not produce desired results for companies. As information students, identify the possible reasons behind the failures of CRM projects. Explain your answer with examples.
Answer - The probable reason behind the failure of CRM projects
The successful deployment of customer relationship management system is regarded as a very popular and well-known strategy in business-to-business organizations as well as in Business to customer organizations. Mobile CRM has been considered advantageous for an organization because it facilitates the organization to save both the resources and precious time. It further helps an organization to create consumer loyalty meet the target of sales. However, if not implemented properly, it might be failed to create desired outcomes for the organization. There are a number of reasons behind the failures of mCRM. If not implemented properly, it may not render the desired result as expected an organization (Zhang et al., 2018). The probable reasons for the failures of the CRM projects have been delineated below.
The Problem of Data Synchronization
The frequent problem associated with data synchronization puts a negative impact on the works. The data synchronization related issues have turned the workers alienated, uninformed and frustrated. This because they are separated from the much-needed CRM information that might indicate the real difference between failure and success in business. Companies need to take better methods in order to keep the laptops of the mobile workers and the mobile workers in sync with the current CRM data which was stored it the server of the company (Blumberg, 2016). Another problem associated with data synchronization is that a number of business organizations do not have any sufficient knowledge to mobilize the critical applications quite effectively.
The framework of the mobile CRM
The vitally important part of embracing mobile CRM is to make out the real differences between regular screens and mobiles. An organization need to possess a clear idea of how mobile users seek to manage their devices. Generally, it may not be a wise action to make an effort to transmute the desktop CRM screens to mobile directly. It may not work properly because there are noticeable differences in the size of the screens. Since a number of organizations lack sufficient expertize to utilize the methods of mobile CRM, a number of mobile CRM projects have been failed considerably (Hung et al., 2019).
For lack of any suitable mobile CRM strategy
In order to implement mobile CRM successfully, it is quite necessary for an organization to create a fruitful CRM strategy. The business strategy of an organization needs to be comprised of a well-developed market plan in order to gain a competitive advantage. The CRM strategy of an organization needs to be tuned with the business strategy of the organization. It is relevant to point out that mobile CRM is not only software or application, it is also considered as a strategy associated with the business (Frow et al., 2015). The goal of the Mobile CRM is primarily maintaining a good rapport with the consumers with the help of latest technology which is widely known as Mobile CRM software. Since most of the company fails to differentiate the strategy with the software, mobile CRM remains unsuccessful. Mobile CRM needs to implement in compliance with the business strategy of an organization that wishes to get the desired result by incorporating mobile CRM.
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Lack of technical assistance
In order to utilize the Mobile CRM appropriately, it is necessary for an organization to provide sufficient technical assistance to their staffs. Unfortunately, quite a good number of Mobile CRM providers fail considerably to provide technical support. If the organization cannot back up relevant data on a regular basis, the real objective of CRM cannot become fruitful. A number of web hosting companies are blamed to sell or utilize sensitive consumer data in an unauthorized way (Farhan et al., 2018). Another problem behind the failure of mCRM projects is that the tier-one assistance teams of a number of enterprises are tended to be more and more focused on the product related issues rather than the role of the product in their technical atmosphere. Moreover, failure to set up a back-office infrastructure is also regarded as an important reason behind the failure of the CRM projects.
Threats of data losing important data
One of the pivotal concerns related to the implementation of Mobile CRM is the risk of losing important consumer data. It takes place because a large number of organizations are tended to adopt Bring Your Own Device strategy. BYOD has now become the latest trend in a number of organizations (Pedron et al., 2016). However, a large number of firms fail to make out the potential threats associated with this strategy. Devices have been lost very frequently. Since a number of organizations fail to calculate the quantity of data that is secure, a potential risk has been emerging related to data security. In some organizations, the salespersons can fetch critical data using some links. They can access necessary data associated with customer complaints, order statuses and so on. Sometimes, there is a keen chance that important data may be used in an unauthorized way. In order to address the problem, organizations need to adopt cutting-edge technology (Mukerjee & Prasad, 2017). But only a few organizations become successful to invest a considerable amount in order to secure customer data while incorporating Mobile CRM.
Nowadays, the issue of privacy has been considered one of the prominent issues while utilizing any kind of mobile strategy. Privacy of corporate data, consumer data and user data and so on need to be protected while incorporating a mCRM project. Since a number of business organizations fail to create an explicit and stringent strategy in terms of addressing the privacy concern, the rate of success associated with mCRM is not impressive (Sanakulov et al., 2018). Furthermore, some of the quick links associated with the CRM software enables the staffs of an organization to access the critical information that is designed particularly to the screen size of the mobile devices. This method of handling data may create a serious privacy concern.
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Strong resistance to adopt CRM
Nowadays a number of organizations have been facing the issue of resistance to make any changes from the workers. If the resistance cannot be handled tactfully and within time, it can pose a number of serious challenges on the way of implementation of CRM projects. Failure to address the issue might result in a considerable failure in implementing CRM projects. A new mobile CRM can bring a number of new and innovative processes such as automation, control, management and so on (Frow et al., 2015). A number of changes may create serious concerns and anxiety for the users. Since a number of organizations have no proper changer management agenda, the issue cannot be addressed tactfully. As a result, a number of mCRM projects are destined towards the failure. Some of the frequently used artefacts and events utilized in the Mobile CRM software encompass communication plans, training and learning tools, readiness assessment and so on. These are the major steps that ensure that potential resistance to change may not create any hindrance on the way of implementing mCRM projects.
It has been noticed by a number of experts that a number of CRM projects became unsuccessful for lack of any suitable objective and measurable goals. Design thinking has been considered as one of the effective tools to find out the impact of the CRM software. It is further regarded as the most important criteria that ensure the success of the Mobile CRM projects. This person focused methods shifts the objective of the CRM projects from being gauged in software functions and features (Hung et al., 2019). However, the managers of a number of organizations fail to pay any heed to it. As a result, a number of Mobile CRM projects rained unsuccessfully.
Regarding CRM as a technical solution
Even though the software is required to make the Mobile CRM workable, consumer management cannot be regarded as a technology (Blumberg, 2016). Customer relationship management basically indicates an ongoing attempt to focusing on the needs of the consumers for the welfare of an organization. One of the most noticeable reasons behind the failure of CRM projects is to regard CRM strategy as nothing but a software project. Many organizations that seek to adopt the Mobile CRM, possess the IT department in order to run the system effectively. In spite of the fact that a number of Mobile CRM projects have been failing considerably. The software is basically an enabler. It cannot be taken as an all-around solution. Successful implementation of CRM requires re-engineering and improvement of facing customers. Business process and the customer strategy of an organization need a drastic change in order to implement the CRM p-projects effectively.
In conclusion, it can be said that employing and inculcating a culture that comprises of a mobile-based unique customer relation management determinant will most likely fetch tremendous advantages to the company pertaining to net profit as well as overall revenue generation. Also, ameliorating and making exclusive efforts to encourage the sales team is highly solicited for any company that is evident in the case of Dow Corning which makes swift use of tangible internal practices and strategies. The study casts light on the transformation of an mCRM domain which is progressively considered as a wider shift pertaining to the way the sales management of DirecTV communicates with the prospective dealers. Therefore, formulating a successful mCRM practice automatically can bring much shorter cycles of sales, time management for the sales force, organized insight to information and most importantly rapid planning in the process.
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