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Hardware Replacement Project

In: Business and Management

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Hardware Replacement Project

IT/205

January 26, 2014

Instructor:Jerry Holt

A customer relationship management system (CRM) is used by companies to determine whom their loyal customers are and what their needs and wants are. “CRM systems capture and integrate customer data from all over the organization, consolidate the data, analyze the data, and then distribute the results to various systems and customer touch points across the enterprise” (Laudon & Laudon, 2013, p. 275). This information helps the company get to know their customers. While larger companies may not be able to know each customer individually and on a more personal level to learn what their interests are, the data collected and analyzed using a CRM system, allows them to do something similar on a larger scale. This data helps a company determine what products their customers are purchasing most, or where higher amounts of money are being spent, as well as the cost of selling to each customer. Is it more costly to sell to a higher volume of newer customers, as opposed to a smaller volume of repeat customers? If a new customer’s information must be collected and documented to provide a service, it may be more costly to do so with a large volume of new customers, as opposed to a repeat customer, whose information is already stored. For this customer, a transaction is all that needs to be processed, saving both time and money. When a CRM becomes outdated or no longer fits the needs of the business, a new system may need to be implemented. While the benefits of an upgraded system should be substantial, there are many variables that must be considered when planning the system upgrade project. Proper project planning and management can mean the difference between success and failure. The five major variables that must be considered in the planning are scope, time, cost, quality, and risk....

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