Customer Relationship Management Alignment
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Customer Relationship Management Alignment

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Presentation in IADIS International Conference Information Systems 2012, Berlin Germany

Presentation in IADIS International Conference Information Systems 2012, Berlin Germany

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  • 1. A CONCEPTUAL MODEL OFCUSTOMER RELATIONSHIPMANAGEMENT ALIGNMENTNorshidah Mohamed, Nor Shahriza Abdul KarimInternational Business School, Universiti Teknologi Malaysiahttp://www.ibs.utm.myMurni Mahmud, Abdul Rahman AhlanInternational Business School, International Islamic University MalaysiaRamlah HusseinSri Jentayu Sdn. Bhd.Jasber KaurFaculty of Computer & Mathematical Sceiences, Universiti Teknologi Mara IADIS International Conference Information Systems 2012 Berlin Germany 10 March, 2012
  • 2. OUTLINE• Introduction• Literature review• Propositions• Conceptual model• Conclusion 2
  • 3. INTRODUCTION• Customer relationship management (CRM) – the process of acquiring, retaining and growing profitable customers on service attributes that customers would value and create loyalty to the organisation (Brown, 2000). 3
  • 4. INTRODUCTION ..CONT’CRM – a business strategy that providesseamless integration among marketing, sales,customer service and field support businessareas that touch the customers throughintegrated management of people, process andtechnology (Pan and Lee, 2003). 4
  • 5. LITERATURE REVIEW
  • 6. PERSPECTIVES OF CRM• Metrics for customer satisfaction, customer value, customer interaction and customer knowledge (Kim et al., 2003)• A process to support customers i.e. relationship initiation, maintenance, termination. Reinartz et al. (2004)• A typology of CRM strategy, customer insight, customer contact and marketing (Batenburg and Versendal, 2004) 6
  • 7. PERSPECTIVES OF CRM ..CONT’• CRM processes: customer acquisition, customer selection, customer extension and customer retention (Boddy et al., 2008)• eCRM – technological perspective comprising operational, collaborative, analytical and strategic CRM (Aurelie and Laid, 2008) 7
  • 8. PERSPECTIVES OF CRM ..CONT’In summary, CRM covers• Strategy• Processes• Technology• Need to be quantified – metrics 8
  • 9. BUSINESS-IS STRATEGIC ALIGNMENT• Fit between business strategies and IS strategies• “… the degree to which the IT mission, objectives and plans are supported by business mission, objectives and plans” (Reich and Benbasat, 1996) 9
  • 10. BUSINESS-IS STRATEGIC ALIGNMENT ..CONT’• Over the years business-IS strategic alignment models have applied / adapted / extended STROBE (Venkatraman, 1985), STROEPIS / STROIS (Chan et al., 1997) and SAM (Luftman, 2000) 10
  • 11. BALANCED SCORECARD• Traditional financial measures and historical perspectives are insufficient for monitoring performance (Kaplan and Norton 1992; 1996)• Balanced Scorecard uses actual performance vs. set targets• Based on four perspectives : financial, customer, internal business process and learning and growth (Kaplan and Norton 1992; 1996) 11
  • 12. RESEARCH QUESTION• Does the relationship between business- IS strategic alignment and CRM process-IS alignment explain CRM alignment?• What are the impacts of CRM alignment? 12
  • 13. RESEARCH OBJECTIVES• To clarify the relationship of CRM alignment• To use prior research findings on business-IS strategic alignment, CRM and balanced scorecard to develop and test an integrated model on CRM alignment 13
  • 14. PROPOSITIONSP1: CRM process-IS alignment is positively andsignificantly correlated to CRM performance.P2: Business-IS strategic alignment is positivelyand significantly correlated to CRM performance.P3: Business-IS strategic alignment is positivelyand significantly correlated to CRM process-ISalignment. 14
  • 15. CONCEPTUAL MODEL BUSINESS–IS STRATEGIC P2 ALIGNNMENT P3 CRM PERFORMANCE P1CRM PROCESS–IS ALIGNMENT CRM IMPACT OF CRMALIGNMENT ALIGNMENT 15
  • 16. PILOT STUDY• 50 survey questionnaires distributed to Malaysian small and medium enterprises• 18 survey items adapted from prior researches• Likert scale 1 (“strongly disagree”) – 5 (“strongly agree”) 16
  • 17. PILOT STUDY .. CONT’Constructs Source of constructs and No. of Cronbach’s items used in the research items alphaBusiness-IS alignment Kearns and Sabherwal (2007); 4 0.800 Viaene et al. (2007)CRM process-IS alignment Reinartz et al. (2004); Chen and Ching (2004) 8 0.848CRM performance Kim et al. (2003); Chen and Ching (2004) 6 0.802 All Cronbach’s alpha > 0.7 suggesting reliability for all constructs. 17
  • 18. CONCLUSION• The research builds on business-IS strategic alignment, CRM process-IS alignment and Balanced Scorecard perspectives to conceptualise a model for CRM alignment.• Progress : Pilot study has shown reliability of instrument used• Next step : data analysis using structural equation model to test the model 18
  • 19. ACKNOWLEDGEMENT The research is supported by theFundamental Research Grant SchemeMinistry of Higher Education Malaysia (504/RES/G/14/3/2/2 FRGS). 19