...meet and create demands International Business Machines (IBM) has proven to be able to withstand the ever changing technical world. Challenges come and go, in this case study we discuss a three-prong road that IBM faced. Should they continue to be a tech services company? Or should they explore the collaborative business model, running a risk to become exploited? Is it an option to keep the acquisition spree going for growth rather than organically grow by in-house or collaborative research and development? Facts of the case Structure, management and strategic directions IBM is a multinational corporation that started its activities in 1911. Its origins however, can be traced to 1890, during the height of the Industrial Revolution. It was first known as the Computing-Recording Company, and then in 1924, it took the name of International Business Machines. Nowadays, this multinational company is known as the ¡§Big Blue¡¨ It was first known as the Computing-Recording Company, and then in 1924, it took the name of International Business Machines. Nowadays, this multinational company is known as the ¡§Big Blue¡¨ IBM main activity is to find solutions to its wide range of clients using advanced information technology. Its clients are individual users, specialized businesses, and institutions such as government, science, defense, and spatial and educational organizations. To meet and respond to its customers needs, IBM creates, develops and manufactures many of the world’s most...
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...MANAGING WORKFORCE DIVERSITY AT IBM: A GLOBAL HR TOPIC THAT HAS ARRIVED J. T. (Ted) Childs Jr. To be successful, global companies must continue to look toward the future, and CEOs, senior line and HR management, and diversity leaders play a key role in that process. Workforce diversity cannot be delegated; it must be a partnership. Although the HR team plays the key staff role, total delegation from the top, without active involvement, is a recipe for failure. IBM considers diversity a business imperative as fundamental as delivering superior technologies in the marketplace. To ensure that talented people can contribute at the highest possible level, the company insists on a workplace that is free of discrimination and harassment and full of opportunity for all people. © 2005 Wiley Periodicals, Inc. Today, workforce diversity is a global workplace and marketplace topic. Any business that intends to be successful must have a borderless view and an unyielding commitment to ensuring that workforce diversity is part of its day-to-day business conduct. Success also must be measured as it pertains to a company’s composition and program content. A company’s management team must ask itself, “Do we look like our customers, at all levels of our business?” “Do our programs reflect an understanding of the demand for talent in a competitive worldwide marketplace?” “Is our business culture one that fosters inclusiveness and tolerance in each country where we do business?” and, most...
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...more aggressive in going to market. The IBM Global Business Services team provided us with the robust infrastructure that we can rely on to support the business as it continues to grow." - Garry Whatley, Chief Information Officer, Corporate Express Australia Limited Customer: Corporate Express Australia Limited Industry: Retail Deployment country: Australia Solution: Business Intelligence, Enterprise Resource Planning, Information Integration, Transforming Business IBM Business Partner: SAP Overview A wholly-owned subsidiary of US parent company Staples, Corporate Express Australia Limited is one of Australia and New Zealand’s leading single-source suppliers of business essentials. The company employs more than 2,500 people at some 38 locations throughout the region. Corporate Express offers products and services ranging from IT solutions to office products, and provides a reliable one-stop-shop for all business supply needs. Business need: Corporate Express Australia is a steadily-growing company, having acquired some 71 different businesses to date. Acquisition had led to a lack of consistent processes across the company. Corporate Express wanted to move from this environment and introduce a standardized set of company-wide procedures. Solution: Corporate Express mapped out an extensive business transformation project to deal with these challenges. As part of the business transformation process, the company engaged IBM® Global Business Services® to deploy a comprehensive...
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...Tesco 1 Tesco in the past. Brief comany history 1919: The first market was opened by Jack Cohen in the East End of London. 1924: The first own-brand product sold by Jack was Tesco Tea – before the company was called Tesco. The name comes from the initials of TE Stockwell, who was a partner in the firm of tea suppliers, and CO from Jack’s surname. 1929: Jack Cohen opens his first Tesco store in North London. 1960: Tesco takes over a chain of 212 stores in the North of England. 1961: Tesco Leicester enters the Guinness Book of Records as the largest store in Europe. 1994: The first Tesco Express opens. Tesco becomes the first retailer to offer customers a service commitment at the checkouts through “One in Front”. 1995: Tesco becomes the market-leading food retailer, enters Hungary and launches Clubcard. Tesco enters Poland, Slovakia and the Czech Republic in 1996, Taiwan and Thailand in 1998, Malaysia in 2002, Turkey and Japan in 2003. 2000: tesco.com is launched. 2004: Tesco enters China and launches own-brand Fair-trade range. 2005: Tesco exits the Taiwanese market in an asset swap deal with Carrefour involving stores and operations in the Czech Republic. 2 The present: Tesco plc. Founded in 1919 in London, Tesco plc is a British-based international grocery and general merchandising retail chain. With revenues of £67 billion (2011), it is the largest British retailer by both global sales and domestic market share, with...
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...IBM Business Consulting Services Challenges for the automotive industry in an on demand environment Seven areas of strategic action Executive brief ibm.com/bcs Contents 1 1 1 3 4 7 Introduction The automotive industry is facing new and pressing challenges. Globalisation, individualisation, digitalisation and increasing competition are changing the face of the industry as we know it. In addition, increasing safety requirements and voluntary environmental commitments by the automotive industry will also contribute to the changes ahead. Size is no longer a guarantee of success. Only those companies that find new ways to create value will prosper in the future. The purpose of this paper is to present a short overview of the automotive industry today and highlight challenges facing the industry. Based on this perspective, we will discuss strategic levers enabling OEMs to transform to on demand enterprises. Introduction Methodology The evolving automotive landscape The on demand challenge Brand management Customer relationship management 10 Core competency management 13 Software management 15 Quality management 17 Product development management 20 Expansion management 22 Strategic steps toward the on demand business 25 Conclusion 25 About the authors 26 About IBM Business Consulting Services 26 References Methodology The information, data and opinions presented in this paper are based on a series of interviews that IBM Business Consulting Services held with...
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...Factors of CRM Tasks 22 VII. CONSULTANTS 23 VIII. RETURN ON INVESTMENT OF IMPLEMENTATION 24 Cost and time 24 Benefits 25 ROI of CRM Projects 27 IX. PRINCIPLES OF CRM 27 X. CRM ISSUES 28 Customer Privacy 28 Technical Immaturity 30 XI. CASE STUDIES 31 Amazon.Com 31 Dell 32 Volkswagen 33 Wells Fargo 34 XII. CONCLUSIONS 36 REFERENCES 37 APPENDIX A BASIC ASSUMPTIONS OF CRM 40 APPENDIX B COMMON MYTHS OF CRM 41 APPENDIX C LIFETIME VALUE OF A CUSTOMER 44 C1. Simple Approach 45 C2. More Sophisticated Calculation 46 C3. Effect of Loyalty Programs 47 C4. Additional Factors to Consider 49 C5. The Arithmetic of Lifetime Value 49 C6. Example: Applying Lifetime Value Concepts in Banking 51 C7. Summary and Conclusions on Lifetime Value 53 APPENDIX D VENDOR’S WEB SITE ADDRESSES 55 2 Version 3-6 March 23, 2001 CUSTOMER RELATIONSHIP MANAGEMENT Paul Gray Jongbok Byun I. INTRODUCTION Over a century ago, in small-town America, before the advent of the supermarket, the mall, and the automobile, people went to their neighborhood general store to purchase goods. The proprietor and the small staff recognized the customer by name and knew the customer's preferences and wants. The customer, in turn, remained loyal to the store and made repeated purchases. This idyllic customer relationship disappeared as the nation grew, the population moved from the farm communities to large urban areas, the consumer became mobile, and supermarkets and department stores were established...
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...Adrian Payne & Pennie Frow A Strategic Framework for Customer Relationship Management In this article, the authors develop a conceptual framework for customer relationship management (CRM) that helps broaden the understanding of CRM and its role in enhancing customer value and, as a result, shareholder value. The authors explore definitional aspects of CRM, and they identify three alternative perspectives of CRM. The authors emphasize the need for a cross-functional, process-oriented approach that positions CRM at a strategic level. They identify five key cross-functional CRM processes: a strategy development process, a value creation process, a multichannel integration process, an information management process, and a performance assessment process. They develop a new conceptual framework based on these processes and explore the role and function of each element in the framework. The synthesis of the diverse concepts within the literature on CRM and relationship marketing into a single, process-based framework should provide deeper insight into achieving success with CRM strategy and implementation. ver the past decade, there has been an explosion of interest in customer relationship management (CRM) by both academics and executives. However, despite an increasing amount of published material, most of which is practitioner oriented, there remains a lack of agreement about what CRM is and how CRM strategy should be developed. The purpose of this article is...
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...Adrian Payne & Pennie Frow A Strategic Framework for Customer Relationship Management In this article, the authors develop a conceptual framework for customer relationship management (CRM) that helps broaden the understanding of CRM and its role in enhancing customer value and, as a result, shareholder value. The authors explore definitional aspects of CRM, and they identify three alternative perspectives of CRM. The authors emphasize the need for a cross-functional, process-oriented approach that positions CRM at a strategic level. They identify five key cross-functional CRM processes: a strategy development process, a value creation process, a multichannel integration process, an information management process, and a performance assessment process. They develop a new conceptual framework based on these processes and explore the role and function of each element in the framework. The synthesis of the diverse concepts within the literature on CRM and relationship marketing into a single, process-based framework should provide deeper insight into achieving success with CRM strategy and implementation. ver the past decade, there has been an explosion of interest in customer relationship management (CRM) by both academics and executives. However, despite an increasing amount of published material, most of which is practitioner oriented, there remains a lack of agreement about what CRM is and how CRM strategy should be developed. The purpose of this article is to develop a...
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...economy based on the application of human know-how to everything we produce and how we produce it. He also said that more and more of the economy’s added value will be created by brain rather than by brawn. So, what is value added anyway? In his book, Stewart (1997) mentioned that value added in statistician-speak is the difference between the cost of materials and supplies and the price received for finished goods. In a simple word, the value added is the extra value we add into product or services that increase the overall value of it. Then, we have come to the question of how we add the value to our product and services? According to Stewart (1997), again, knowledge has become the primary ingredient of what we make, do, buy and sell. As a result, he said, managing it has become the most important economic task of individuals, businesses and nations. So, it is clear that involvement of this subject matter in micro level up to the macro level is very crucial. The Summaries From article of Expert: Innovation propels changes in world economy by Suraj Raj, Kathleen Kingscott, director for worldwide innovation policy at International Business Machines Corp (IBM), believes innovation is propelling changes in world economy. Like she said, “Innovation is the intersection of invention and insight to create a new value by putting inventions to use”. She added that there are three broad categories: talent, investment and infrastructure that Malaysia could look into as...
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...IBM Global Business Services Executive Report Customer Relationship Management IBM Institute for Business Value From social media to Social CRM What customers want The first in a two-part series IBM Institute for Business Value IBM Global Business Services, through the IBM Institute for Business Value, develops fact-based strategic insights for senior executives around critical public and private sector issues. This executive report is based on an in-depth study by the Institute’s research team. It is part of an ongoing commitment by IBM Global Business Services to provide analysis and viewpoints that help companies realize business value. You may contact the authors or send an e-mail to iibv@us.ibm.com for more information. Additional studies from the IBM Institute for Business Value can be found at ibm.com/iibv Introduction By Carolyn Heller Baird and Gautam Parasnis CEOs, according to the IBM 2010 CEO Study.1 Today’s businesses are fervently building social media programs to do just this. But are customers as enthusiastic? Actually, most do not engage with companies via social media simply to feel connected. It turns out, customers are far more pragmatic. To successfully exploit the potential of social media, companies need to design experiences that deliver tangible value in return for customers’ time, attention, endorsement and data. With the worldwide explosion of social media usage, businesses are feeling extreme pressure to be where their customers...
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...Running Head: CUSTOMER CENTRALITY Customer Centrality [Name of the Writer] [Name of the Institution] Table of Content Part A 1 Introduction 1 Discussion 1 Interaction Response Capacity 3 Customer Empowerment 3 Customer Value Management 4 Customer Centricity 5 Evolution of Customer Centricity 7 Path to Customer Centricity 9 Customer Initiated Contacts and Competitive Intensity 14 Conclusion 15 Part B 16 References 20 Customer Centrality Part A Introduction The roots of customer centricity can be traced all the way back to the late 1960s, when a relatively obscure ad agency executive by the name of Lester Wunderman gave birth to the idea that we know today as direct marketing. Many of the concepts you'll read about in this book, including the basic overarching notion that businesses would be well served to know absolutely everything about their best customers, are derived in some way from the ideas of Wunderman, who understood long before anyone else the value of keeping records (frighteningly detailed records, actually) about customer buying habits. What is new, however, is the competitive landscape and the incredibly demanding world in which you and your company are doing business. Today, more than ever before, many companies need customer centricity. They need it to compete in the short term and thrive in the long term. Discussion ...
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...IMPLEMENTATION OF CUSTOMER RELATIONS MANAGEMENT AT ANZ BANK Table of Contents 1.0 Introduction 3 2.0 Company Background 3 3.0 SWOT Analysis 4 4.0 CRM Project Objectives 4 5.0 Selected CRM Suite and Analytical Capabilities 5 6.0 Infrastructure Requirements 10 7.0 Training 11 8.0 Timeline 12 9.0 Budget 14 10.0 Conclusion 14 References 15 Implementation of Customer Relations Management at ANZ Bank Introduction Customer Relations Management (CRM) is the integration of people, processes, and technology to maximise relationships with its customers (Goldenberg, 2003, p.7). It involves a comprehensive approach that provides seamless coordination between all customer-facing functions through technology, which is used to organize, automate, and synchronize sales, marketing, customer service and technical support. The main aim of the CRM initiative is to facilitate the use of technology and human resources to gain valuable insights into the behaviour and value of its customers (Onut et al., 2002, p.3). This is particularly very instrumental in the banking sector (Yao & Khong, 2012, p.151). CRM programs are associated with improved financial performance, customer loyalty and satisfaction. Company Background The Australian and New Zealand Banking Group (ANZ bank) is the third largest bank in Australia and the largest bank in New Zealand in terms of market capitalization. Australian operations...
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...FA L L 2 0 0 6 V O L . 4 8 N O. 1 Christopher G. Worley and Edward E. Lawler III Designing Organizations That Are Built to Change Please note that gray areas reflect artwork that has been intentionally removed. The substantive content of the article appears as originally published. REPRINT NUMBER 48107 IN CONTEXT Designing Organizations That Are Built to Change As the pace of globalization and social change quickens, executives are correctly calling for greater agilit y, flexibilit y and innovation from their companies. Largely ignored in these pleas, however, is the simple fact that organizations have been designed to seek sustainable competitive advantages and stability. Indeed, buried deep in the managerial psyche, and bolstered by decades of theory and practice, is the assumption that stability is not only desirable and effective but also attainable. In their classic book The Social Psychology of Organizations, Daniel Katz and Robert L. Kahn note, “One can define the core problem of any social system as reducing the variability and instability of human actions to uniform and dependable patterns.” The popularity of process improvement efforts, from total quality management to Six Sigma programs, provides ample evidence of the consuming desire for stability and predictability in today’s organizations. In fact, those are the very qualities rewarded by the financial markets. It is not surprising, then, that most large-scale change efforts fail to meet their...
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...IEEE International Conference on Data Engineering Business Intelligence from Voice of Customer L. Venkata Subramaniam, Tanveer A. Faruquie, Shajith Ikbal, Shantanu Godbole, Mukesh K. Mohania IBM India Research Lab, India {lvsubram,ftanveer,shajmoha,shantanugodbole,mkmukesh}@in.ibm.com Abstract— In this paper, we present a first of a kind system, called Business Intelligence from Voice of Customer (BIVoC), that can: 1) combine unstructured information and structured information in an information intensive enterprise and 2) derive richer business insights from the combined data. Unstructured information, in this paper, refers to Voice of Customer (VoC) obtained from interaction of customer with enterprise namely, conversation with call-center agents, email, and sms. Structured database reflect only those business variables that are static over (a longer window of) time such as, educational qualification, age group, and employment details. In contrast, a combination of unstructured and structured data provide access to business variables that reflect upto date dynamic requirements of the customers and more importantly indicate trends that are difficult to derive from a larger population of customers through any other means. For example, some of the variables reflected in unstructured data are problem/interest in a certain product, expression of dissatisfaction with the business provided, and some unexplored category of people showing certain interest/problem...
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...Marketing Management 14 PHILIP KOTLER Northwestern University KEVIN LANE KELLER Dartmouth College Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Executive Editor: Melissa Sabella Development Editor: Elisa Adams Director of Editorial Services: Ashley Santora Editorial Project Manager: Kierra Bloom Editorial Assistant: Elizabeth Scarpa Director of Marketing: Patrice Lumuba Jones Senior Marketing Manager: Anne Fahlgren Senior Managing Editor: Judy Leale Production Project Manager: Ann Pulido Senior Operations Supervisor: Arnold Vila Creative Director: John Christiano Senior Art Director: Blair Brown Text and Cover Designer: Blair Brown Lead Media Project Manager: Lisa Rinaldi Editorial Media Project Manager: Denise Vaughn Full-Service Project Management: Sharon Anderson/BookMasters, Inc. Composition: Integra Printer/Binder: Courier/Kendallville Cover Printer: Lehigh-Phoenix Color/Hagerstown Text Font: 9.5/11.5, Minion Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Copyright © 2012, 2009, 2006, 2003, 2000 Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All...
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