Strategic Planning Of Information System

Paper Assignment

Customer Relation Management

By :
Alfredo Arinda P. 201750425
Edelyn 201750357

Felix Pratama 201750029

Trisakti School of Management

2019
 INTRODUCTION

This paper is prepared specially to fulfill the assignment of PSSI. This paper
presents about the complete analysis of several aspects of a company’s Customer
Relationship Management in terms of PSSI with the basis of the theoritical
understandings (operation, the enterprise resource planning, and also the issue or
problem the company is facing).

This paper assignment is mainly targeted to the students who learn about
Information System Strategic Planning. It shows how the theories cannot always be
applied to the practical situations, however the business still can operate well without
major problems and still obtaining profits.

We would like to give thanks to Almighty God because of His blessings that we
would be able to complete this assignment. We are so thankful to our lecturer, Indra
Arifin Djashan, S.E., M.Ak. for giving us the assignment and for allowing us to analyze
the data and documents provided from the journal. This work would not have reached
its present form without their invaluable help.

Lastly, we express our apologies if there are mistakes in doing our works.
Hopefully, this assignment can provide contributions to Trisakti School of Management
and other people who needed in particular.

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 BACKGROUND THEORIES

The purpose of this assignment is so we as college students understand what is

enterprise resource planning (ERP), To learn how one of the ERP that is CRM work, what
are the usual problem or issue in those who implement or use CRM, and how to face it,
and to teach us how to better analyze a journal for preparation of our thesis.
Organizations today are moving from a collection of nonintegrated transaction
processing systems to highly integrated enterprise systems that perform routine
business processes and maintain records about them. These systems support a wide
range of business activities associated with supply chain management, customer
relationship management, and product life cycle management. Although they were
initially thought to be cost effective only for very large companies, these systems are
now being implemented by even small and midsized companies to reduce costs, speed
time to market, and improve service. This chapter explains what an enterprise system
is, identifies the benefits associated with the implementation of enterprise systems, and
outlines an effective approach to the successful implementation of these systems.

WHAT IS ERP ?

An enterprise resource planning (ERP) system is a set of core software modules that
enable organizations to share data across the entire enterprise through the use of a common
database and management reporting tools. The goal is to enable easy access to business data
and to create efficient, streamlined work processes. This is achieved by building one single
database that is accessed by multiple software modules, which provide support for key business
functions for different areas of an organization.

An effective ERP system enables people in various organizational units to access and
update the same information based on permission levels assigned within the system. For
example, when the sales organization captures data about a new order, the information is
immediately available to workers in finance, production planning, shipping, warehouse
operations, and any others who need access to the records. Through the sharing of data, ERP
software enables standardization and streamlining of business processes whether it is in a small,
locally-based organization or in a large, multi-national organization. The leading ERP software
vendors for large organizations include Infor, Microsoft, Oracle (including its two acquisitions JD
Edwards and PeopleSoft), and SAP (Systems Applications and Products).

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 WHAT IS CRM ?

A customer relationship management (CRM) system helps a company manage all

aspects of customer encounters, including marketing, sales, distribution, accounting,
and customer service. Think of a CRM system as a customer address book with a
historical record of all the organization's interactions with each customer. The goal of
CRM is to understand and anticipate the needs of current and potential customers to
increase Customer retention and loyalty while optimizing the way that products and
services are sold CRM is used primarily by people in the sales, marketing, distribution,
accounting, and service organizations to capture and view data about customers and to
improve communications.

CRM software automates and integrates the function of sales, marketing, and service in
an organization. The objective is to capture data about every contact a company has
with customer through every channel and to store it in the CRM system CRM software
helps an organization build a database about its customers that describes relationships
in sufficient detail so that management, salespeople, customer service providers, and
even customer can access information to match customer needs with product plans and
offerings, remind customer service staff of special customer requirements (e.g.,
customer can only accept delivery before noon), and report on the other products the
customers have purchased.

Primary Benefit of CRM :

 Increased customer loyalty

 Improved management division
 Increased revenue through targeted marketing
 Increased Revenue generated from marketing and promotion campaigns
 Improved communications
 Reduced customer churn
 Improved staff time management

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 COMPANY PROFILE

The journal are analyzing the Effect of CRM in achieving the competitive advantage in
Iran Tractor Manufacturing Company. They are trying to analyze does the CRM give a
competitive advantage in the Industrial Tractor in the Tabriz, Iran. The reason of
limitating their scope in the industrial of Tractor are not mentioned. So, this are a little
Company profile that are being analyze.
Iran Tractor Manufacturing Company also known as ITMCO, is a manufacturer of
tractors, automobiles, auto-parts, and heavy machines with main site and headquarters
in Tabriz, Iran.[1] ITMCO is enlisted in the 100 fortune companies of Iran.[3] Tractor
Manufacturing Company owned a Tractor football club since 1970 to now.
Based on an agreement that was reached in 1966 between Iran and Romania to
establish a tractor manufacturing company in Iran, the company was created in Tabriz
in 1968. The first goal of the company was to manufacture 10,000 unit tractors of 45-
65 horse power engines with single and double differential gearboxes. In 1976 Massey
Ferguson started to assemble tractors in the company with the rate of 13000 units for
each year. At the moment the production capacity has been increased up to 30000 units
for each year.[1] On 1987 the factory started to increase its foundry capacity to be able
to produce casting products for different industries. Nowadays it has the largest foundry
capacity among Middle East. In 1990s, the factory started to produce small trucks and
vans behind its main products.
Iran Tractor Manufacturing Company is currently exporting 13 different products to ten
countries.

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 PROBLEM ANALYSIS
One of the requirements of competitiveness is the ability of the organizations to
adjust themselves with the customer needs quickly. Increasingly competitions make the
organizations have more contacts and have relationships with the customers in the
world of markets. CRM is a commercial process in the B2B environment, which prepares
the organizational structure to improve and survive in trading. CRM is a strategic process
of support, against the competitors, providing value for the buyers and sellers, and
gaining excellent benefits.

So, in this Journal, they are trying to find out the CRM really affect the Tractor
Company in achieving their competitive advantage against their competitors and does
it really work effectively. So first, we’ll discuss about the CRM in the company. We’ll have
find out through many sources but no one mention when The Iran Tractor Manufacture
Company implement the CRM. But according to the study in the journal, it is said that
the CRM are Implemented well even giving more benefit to the company. And we also
didn’t find out what brand of CRM they are using or the enterprise system. But we’ll just
focus on the study of analysis.
In the journal, the writer has discuss with the Tractor Company about what variable
that effect the CRM to help the company to achieve the competitive advantage. There
are 4 variables, which are :

 Improving and specializing the relationships with the customers : which

means company focus on improving their goods or services to maintain a
good relationship and specialize means that they make goods or service
based on the customer needs because it’s a customer based world.
 Understanding and separation of the customers : which means that in order
to contact and maintain relation with customer, first we must identify them,
and perceive their values, and know that what kinds of services are useful for
them, and how or when they intend to make interactional contacts, and they
prefer to buy which goods or services. The we separate them into group
based on their needs and uniqueness
 Responding to the customers' complaints : which means that the company
should carefully listen and react to customer complaint because it is their
right and by that way, we can stay in touch with the customer and maintain
relation.

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  Attracting and protecting the customers. : which means that the company
should also focus on their promotion, channel and advertisement in order to
attract customer and protect them from moving to another brand or our
competitors.

The writer are trying to analyze does this 4 variable really effect the CRM in gaining
the competitive advantage of the tractor company. And the result of the study mention
that this 4 variables do have effect for the CRM in the company in achieving company’s
competitive advantage.

The results obtained from the data analysis show that all the relations are
meaningful at the %5 of deviation using spearman correlation test from the managers'
perspectives and the variable of understanding and separation of customers has the
most impact, and the variable of attracting and protecting of customers has the least
impact on the dependent variable. Also, using freedman test, the ideal position of
variables in the given company from the managers' perspectives is as follows:
1) Meeting customer's complaints
2) Attracting and protecting customers being faithful
3) Improving and specializing the relations with the customers
4) Understanding and separating of the customers.
The influence of customer relations management on the organizational performance
on gaining competitive advantage is a prominent subject in most experimental studies
and conducted studies indicates direct relations between both. Customer relations
management is a lawful marketing process by which organization establishes a better
foundation for providing the service and meeting customers’ satisfaction. Organizations
need stable competitive advantage in an environment full of competition.

In order for considering the customer relations management as a competitive

advantage for organization, it must be rare besides being valuable. It is obvious that
rareness is located in the group of not being imitable. Customer relations management
is a non-imitable process. If customer relation management is conducted successfully in
an organization, it may not be imitable and replicable by other organizations. Customer
relations management is designed based on cultural bed and organizational background
established for any special and unique organization and proportional with the same
organizational background. Therefore, customer relations management will be unique
and special in any organization.

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 CONCLUSION
CRM, traditionally, is considered as a tool for relating the customers to the
company by different loyalty plans. One of the most important factors in achieving the
competitive advantage is the absolute concentration on the customer. The results of
data analysis indicates this important and come with following cases because the
hypothesis of the researcher related to the effect of customer relation management in
achieving the competitive advantage in industrial companies has been tested in data
analysis, and all hypotheses have been accepted, therefore it can be concluded that
customer relation management is effective for achieving the competitive advantage in
such companies.

According to the results of Spearman correlation test, one can state that
perception and separating the customers has the maximum effect and attracting and
maintaining (making loyalty) has the minimum effect in the dependent variable, i.e.
achieving the competitive advantage. According to the freedman test it can be
concluded that the proper situation of any customer relation management variables
attended in the company is as following: complaints investigation, Customization,
making the loyalty, perception and customers’ separation.

And at last, we can conclude that Customer Relation Management or we

mention as CRM play an important role in the company in gaining more profit and an
effective way in managing the relation with customer. Because based on the study also,
it more easy and more profit to retain customer then to get the new one. So in this case,
we also really need to focus on customer, how to maintain the communication, how to
identify their needs and how to fulfill it in order to be leading companies among other
in the same sector.

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 REFERENCE

https://en.wikipedia.org/wiki/Iran_Tractor_Manufacturing_Company

https://www.semanticscholar.org/paper/The-Effect-Of-Customer-Relationship-Management-
On-Mohammadi-Alipour/f4c49993bca6f3847d280c069a5f2a54bf4606e1

 The Effect Of Customer Relationship Management (CRM) On Achieving

Competitive Advantage Of Manufacturing Tractor
https://www.sciencedirect.com/science/article/pii/S2212567115005134

 Effect of Customer Relationship Management on Customer Satisfaction

http://ijbssnet.com/journals/Vol.%202_No._10;_June_2011/18.pdf

 Customer Relationship Management and Its Relationship to the Marketing

Performance
George W. Reynolds. 2016. Information Technology for Managers 2nd Edition.
Canada: Cengage Learing