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ISY3001/ISY301 E-Business Fundamentals And Systems, Australian Institute Of Higher Education, Australia


Introduction: As the internet has proliferated in the various sectors of business, it has become imperative for the organisation to harness the potential provided by the Internet and Information Technology and capitalise on the avenues for enhancing commercial acumen. CRM has been described as the process employed for achieving a seamless coordination in between the marketing field, customer support and sales and other functions. Customer relationship management or CRM integrates the technology, processes and people for maximising the relationship with the partners and customers, aiding the firms in achieving increased margins of customer satisfaction and decreased administrative expenses. 

The phenomenon of conceiving a relationshipwith the customers Through the Internet is termed as Electronic CRM or eCRM. The objective of both eCRM and CRM are similar, the only difference lies in the medium employed. The eCRM focuses on the Electronic channels and technologiesfor electronic and automated management of customer relations, functioning as a multi-faceted strategy for helping firm in comprehending the needs and demands of the customers.

This report deals with highlighting the problems and the opportunities faced by Nokia in implementing the eCRM system along with analysing the ethical issues and risks the organization may have faced in implementing the eCRM. The report also presents a comprehensive assessment of how successful the eCRM initiative was and a discussion of recommendations for further improvement

Question 1: Describe the organization and explain the problem or opportunity it faced.

Answer: Nokia Corporation is multinational consumer electronics; telecommunication and information technology conglomerate founded in the year 1865 and is based in Finland. The headquarters of the company is in Helsinki and the organisation employs more than 100000 employees and has aInternational business footprint spread across 130 countries with an estimated revenue worth €23 billion in the year 2018. Nokia is primarily engaged in the production of mobile devices focusing on telecommunication infrastructures, licensing and technology development. Nokia has been a major established brand in the telecommunication industry, having previously assisted in GSM, LTE and 3G development and was once the largest brand of mobile phones (Rusko, 2017). The company was acquired by Microsoft and the focus was extensively denoted on building telecommunication infrastructure and Internet of Things. The company has also invested in digital health and virtual reality. The brand has now returned back to mobile phone marketing with an arrangement with HMD global for licensing. Nokia has been a major licensor for the vendors of mobile phone, and is the third largest in world for manufacturing network equipment.The company has created an universal reporting system for the EMEA, APAC and the American division of the company, which has enabled the company to function with increased consistency in different functions and locales.

The growing proliferation of internet in every sector of business has brought forth greater consideration of using Internet as an opportunity for reducing the customer service expenses, fostering better relationship and personalising the marketing content and enabling mass customisation. With the relation of the Sales Force Automation where the electronic methods were applied for gathering and analysing the customer information and other data, the foundation of eCRM was laid. It has been defined as the activities which are used for managing the customer relationship with using the web browsers, internet and the other interaction platforms. The challenge is to offer information and communicate on the appropriate topic in an adequate amount so as to address the needs of the customer accordingly.

From atechnological point of view, an eCRM framework is used for representing a mass of creases that should be firmly sewed together, generally for integration. No single programming application could substantiate for the entire process. To actualize eCRM organizations will require an assortment of equipment/programming applications and instruments. This requires huge asset and expenses being carried, which organizations must consolidate into their general key arranging. An eCRM framework is likewise very reliant on neighbouring frameworks to be viable, for instance: customary 'front office' CRM which must be predictable with an eCRM framework at the two information and process levels; back office frameworks which supply item accessibility and evaluating data just as past client exchange information; a current information stockroom/store merging client related data; lastly Web content administration and writing devices. These linkages should be compelling and operational for eCRM to effectively effect organization exercises and will show a large group of difficulties as business procedures may must be adjusted. This emphasises on the requirement for organizations to have well-created business procedures and data and innovation frameworks on which to construct and continue eCRM capability (, 2019).
As an organisation with an international outreach, Nokia was tasked with opting for a more innovative and sustainable measure for integrating their internal organisation resources and their external marketing strategies for comprehending and fulfilling the needs and demands of the customers. The eCRM was opted for a solution for gathering and combining the customer information accumulated in a single, holistic and unified blueprint, which will help the business in assessing and factoring the needs and demands of the customer in a more efficient manner (Brown, 2015). The eCRM was also selected for ensuring that the responseswere faster and more accurate in a bid to generate more customer loyalty with satiating them. The diversity and the immense size of theircustomer base made the process of selecting the initiative difficult and hindered the process. The entire sales structure was majorly lagging behind the technologicaldevelopment of contemporarybusiness domain with chaotic functions. The eCRM was chosen for bringing order in the business processes and for ensuring that the data is being sorted, de-duplicated, normalised and cleaned before inputting it in a standard format across all locations. The marketing department needed significant development for selection and segmentation of data in specific targeted groups, which would,lead to a more efficient sales conversion and lead generation.


Question 2: Describe the nature of the eCRM initiative that the organization implemented including the process by which the initiative was selected.

Answer: The eCRM has helped Nokia in enhancing and ensuring that the marketing and product range of the brand is customised for suiting the geo-specific locations and are developed location with having multiple language potions. The eCRM helped Nokia with crediting dashboard and reporting templates, which enabled the sale and marketing teams for managing the external and internal factors for ensuring sales success.The process of developing the eCRM strategy and selecting the initiative with implementing it in the operational structure was a systematic process. Having an effective eCRM strategy helps the business in delivering superior andenhanced customer value (Wang et al., 2016).

The process of selecting the initiative was based on the need for data integration and the competitive pressure, which drive towards incorporating CRM. The technological competence drive the adoption of eCRM initiative and needs of the business to sustain a profit margin were factored. The other factors which were included in the process for selecting the initiative were,

Setting the goal

The primary step before the selection of the eCRM strategy is the setting of the goal. Since it is evident what the organisation is trying to achieve, the following step is for determining the plan for reaching the objectives. As Nokia sought a greater dominion over the mobile phone manufacturing and licensing sector, the aim is to increase the customer loyalty, brand image and deliversuperior value for the stakeholders and customers alike. The goal has to be broken down in smaller, measurable objectives with mapping the steps;however, the map was kept flexible to allow for any revision along the process.

Prioritising the customers

The selection of the initiative was done by prioritising the customers, the business to be successful has to ensure that the customers are being valued, identifying the traits which the buyer has, analysing their needs and demands for increasing the metric-effectiveness.

Communicating with the employees

The eCRM has been designed to handle large amounts of data and to facilitatecommunication in between different groups. Nokia involved the employees in every possible strategic stage, helping them to internalise the objectives and integrating them with the new with technology andpolices (Cruz-Jesus et al., 2019).

Question 3: Explain and analyse any ethical issues and risks the organization may have faced in implementing the eCRM.

Answer: Since the eCRM employed by Nokia is primarily based on client side and server side programming, session tracking and database connectivity, there are several ethical implications arising due to the use of eCRM.

Illegal scanning of machine without user consent

The PHP server scripts could be used for acquiring information from the users illegally, the IP address could be tracked which could give an estimate on where is the user located. This is unethical as it is used by the businesses for collecting information regarding their whereabouts and bombards them with curated advertisements.


The cookies are the text files, which are stored on the user computer and could be accessed by the server at any given point of time. The cookies are used for storing the login details toensure that the user will not have to input them every time he or she accesses the website. This could be used in an unethical manner for illegal purposes;however, the companies could use the cookies for targeting the advertising to certain customers. The cookies could be used for tracking the website the users visit and advertise in accordance. This could be considered as a breach of the user's privacy and personal space and hence could be classified as an unethical issue. Highsecurity of the function is imperative for ensuring that the information collection process is ethical and authorised

Collecting and using customer data

The ethical issues are primarily evident in regards to the collection of the data of the customers in customer for Customer Relationship Management. The businesses have to ensure that the credit card information and other sensitive information has to be safeguarded and transmitted to a database safely.Given that most of the data collected for eCRM is sensitive, there could be concerns regarding the ethical use of the data. The company will have to ensure that the data so being safeguarded to the ,maximum extent, storing the data in a location which is not accessible generally and restrictions top the use of the CRM data will help in averting ethical issues. Similarly the customers could withdraw from the CRM framework and this poses an urgent need for the business to ensure that there the customer data is being securely disposed of from the database. The deletion of the data is necessary to prevent any misappropriation from unauthorised agents (Ahmedet al., 2018).

Data analytics

The ethical issue, that arise in the data analytics aspect, results as a lack of the information, provided for the customers. This could be anon-disclosure agreement of the data being collected, the purpose of the collection and the authority's collection the data. Similarly, ethical issues arise from unauthorised and undisclosed tracking of the location of the user and session tracking for data analytics.

Coding vulnerabilities

The serverscripts could be susceptible for the coding vulnerabilities, which could affect the safety of sensitive information of the user. These coding vulnerabilities could include the XSS attacks and the SQL injections. SQL is when a hacker modifies the SQL statements, which access the database suing the HTML forms in a website. The SQL codes could be added in the email box for creating another administrative account. This poses danger as it leads to the attacker being provided with easy access to the personal information of the user. The XSS attacks are the external script, which are added in the database of the website and is used for redirecting the users to other phishing websites. These could seriously harm the credibility of the server scripting and hence pose significant ethicalissues (Mason, 2017).


Question 4: Provide an assessment of how successful the eCRM initiative was and a discussion of recommendations for further improvement.

Answer: The eCRM initiative was significant for the brand as it helped by playing an integral part in the growth of the organisation, aiding in the management of the business in an effective and efficient manner.

Finding the customers

The CRM system has helped in converting 79% of the marketing leads of the business to sales. The marketing tools, email, social and the marketing automation, has been integrated in the CRM platform, providing for an comprehensive operational system and providing the sales and marketing department with a complete perspective regarding the prospects and the leads which has subsequently helped in creating and targeting engaging communication content for turning the prospects in customers (, 2019).

Building more sustainable relationships

Having deeper more sustainable relationships with the customers is a key imperative for ensuring sustainable success of a firm. Nokia has been able to developed deeper comprehension regarding the business of a customer, with building a strong foundation based on mutual success and trust. They are able to explore the challenges more efficiently with factoring in the preferences of the customers for satiating their needs and demands of the customers with a more methodological approach. After comprehending the business challenges and objectives of the customer, the process of recommendingappropriate promotion and product is facilitated. Having eCRM has helped in gaining comprehensive insightsregarding the purchasing behaviour of the customer and provides them with relevant information and content. Nokia is able to provide the customers with greater personalised experience, scaling the 1-to-1 relationships. The CRM platform is able to host the email templates, enable communication with the customer and setting up taskreminders for the customer in an easier and faster manner.

Customer retention

The visibility provided by eCRM platform, Sales force, has helped in increasing the visibility across the relationships, which has helped the teams in proactively addressing the accounts at risk, and presents the customers with proper opportunities. Transparency in the histories of the customers, open cases and the active campaign has helped in providing more satisfying service experience and purchases whichhas helped in retaining the customer segments.

Reducing the expenses associatedwith sales

Employing eCRM has helped in increasing the probability of selling to the new prospects to 20%, while the probability of selling to the existing customers is 70%. CRM has helped Nokia in off-setting the expenses incurred in new customer acquisition with more sales to the existing customer segments (, 2019). The organisation has been able to gain better visibility in the renewal, cross sell and upsell opportunities in the customer portfolio and has helped in increasing repeatable sales and customer loyalty.

Enhancement of business performance

The CRM system has helped the organisation improvising their sales efficiency, prioritising the ends, which are likely to convert, based on the interaction with the customers. The saes effectiveness has also been boosted and increasing the cross-sell and upsell opportunities for Nokia. The business has also been able to focus on the untapped potential opportunities in the relationships instead of wasting time in cold calling. The time required for closing a deal has also been reduced with the teams aligned ion the succeeding steps for closing a deal, made possible by the holistic review of the customers achieved through eCRM (Bezovskiand Hussain, 2016).

Better customer service: The eCRM system has helped with driving in greater revenues by enhancing the customer service experience. The eCRM provides a comprehensive assessment of the purchasing behaviour ad history of the consumer with providing personalised solutions and messages for the customers. Smoother interaction has been facilitated which has helped in building trust and encouraging more business (Al-Dmouret al., 2019).

With eCRM, clients drive the interaction in between them and the organisation, settling on the sort and term of contact allowable. The capacity to make intimate relationship with the client is constrained and building trust could be a difficult procedure. When the management of a company's product catalogue and sales online, they are faced with the fact that the more number of choice rates a whimsical behaviour among the customers and since the competition businesses are accessible with ease, making mistakes will provide no second chance for recuperating lost prospects. Information combination and IT design difficulties additionally exist for associations adopting the eCRMtechnologies.The websitesaccessible in different locales have been customised for unique particular customer segments. The online and the offline supports are provided to the customers with a more technology oriented approach. Nokia has emphasised on mobile manufacturing and developing the eCRM for the customers. Since the products ranges from a low pricing to high pricing, Nokia employs eCRM in auniform manner.

Nokia should ensure that they are building strategies with considering the different types of customers instead of a uniform CRM strategy. For example, considering if the customer is not familiar with the use of forums and websites, he or she should be presented with other methods for solving the problems to retain the customers. Similarly, Nokia should ensure that their social media presence is maintained with positing customer centric, appealing and informative content. The social media listening should be employed for monitoring, responding and analysing the conversation regarding the brand and for developing customer relationship with influencing sales. The customer service department should be professional and ensure that the customers are being interacted with in a proper manner through different platforms for engaging them and as a result provide superior value for the company. The CRM should be effectively attached with the marketing that the customers could easily feel or see while purchasing a product from Nokia. If the customers are awarethe framework and policies of the company, it will result in greater lead conversion.


Conclusion: The benefits of using eCRM has been exampled in the report highlighting how Nokia has been able to improve their business operations with hiring an eCRM company named Sales force for implementing the eCRM framework. The company has created a universal reporting system for the EMEA, APAC and the American division of the company, which has enabled the company to function with increased consistency in different functions and locales. The improved collaboration has increased productivity has also been a plus side of having an efficient eCRM system. The reporting and communication has also improved and this has helped the brand in understanding customer preferences with greater efficacy.

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