IBM

A PROJECT REPORT
ON
“DATA MINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

(SOFTWARE PRODUCTS)
For
“RADIX BUSINESS MODELS”
By
NITIN KUMAR SINHA
Under the guidance of
PROF. MRs.SURYA RAMDAS
Submitted to
UNIVERSITY OF PUNE
In partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)
THROUGH
ALL INDIA SHRI SHIVAJI MEMORIAL SOCIETY’S
INSTITUTE OF MANAGEMENT (MBA)
PUNE-411 001
*[2006-2008]*
“DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT”
ACKNOWLEDGEMENT
I kindly express my sincere thanks to entire RBM and IBM team for providing me
an outstanding platform to carry out the project internship in an efficient manner for the
organization.
I would like to express my gratitude to Mr. Vivek Kandekar (Software
developer & Trainer) and Mrs. Nisha Barua (Software Trainer IBM Bangalore) who
in spite of their guidance and pressing responsibilities regarding to clear the exact
concept of software marketing and rendered support at all stages during internship.
I also like to express my deep sense of gratitude to Mrs.Surya Ramdas for their
continuous guidance to complete the project.
My heartfelt gratitude to Dr. D.K.Sinha (Director AISSMS) for his motivation,
encouragement and priceless information always provided through out the endeavor.
Last but not the least I extend my special thanks to my friend Mr. Sushil Kumar
(PGP 1st year IIM AHEMADABAD) for selecting the topic and his effective guideline
through the E-mail.
Nitin Kumar Sinha
2
EXECUTIVE SUMMARY
1. Introduction
Project Sum up and actual work done
2. Objective of the Project
Data mining of client response for IBM software
Customer relationship management for IBM
To expand the IBM software products Client base
Expressiveness value of Software services
3. Research Methodology
IBM lotus notes user response through data mining
4. Data Sources
Primary Data
Secondary data
5. Data Collection Methods
Primary data: For IBM software users inside INDIA
Secondary data from http://www.wikipedia.com &
www.ibm.co.in
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LIST OF TABLE
1. Table No.1:India’s leading software company (Page No.22)

2. Table No.2:World top five Software service provider (Page No.23)
3. Table No.3:Profile of the Respondent (Page No.43)
4. Table No.4:Analysis of IBM Lotus notes technology (Page No.45)
5. Table No.5:Features of IBM technology (Page No.50)
6. Table No.6:Area of Improvement (Page No.52)
LIST OF FIGURE
1. Figure No.1: IBM Lotus notes features (Page No.10)

2. Figure No.2: IBM Tivoli features (Page No.13)
3. Figure No.3: Rank Wise Market Share (Page No.22)
4. Figure No.4: Top Service Provider (Page No.23)
5. Figure No.5: Gains Chart (Page No.30)
6. Figure No.6: Data Mining Architecture (Page No.33)
7. Figure No.7: Model specification (Page No.41)
8. Figure No.8: Consumer Perception (Page No.45)
9. Figure No.9: IBM lotus notes rating (Page No.46)
10. Figure No.10: User satisfaction analysis (Page No.47)
11. Figure No.11: Comparative analysis of Lotus notes (Page No.48)
12. Figure No.12: Service Satisfaction (Page No.49)
13. Figure No.13: Added features of LOTUS (Page No.50)
14. Figure No.14: Cost Analysis (Page No.51)
15. Figure No.15: Area of improvement (Page No.52)
16. Figure No.16: Product Innovation (Page No.53)
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INDEX
Sr.No. TOPICS PAGE.NO.

1. INTRODUCTION 7-9
1.1 Introduction 7
1.2 Factor which forced to undergo this project 8
1.3 Scope of the project 8
1.4 Reason for selecting the topic 9
2 PROJECT PROFILE AND CONCEPT 10-11
2.1 Product profile (Lotus notes and others) 11
3 COMPANY PROFILE 16-20
3.1 From the desk of CEO (IBM) 15
3.2 Profile of IBM 17
4. INDUSTRY PROFILE 21-24
4.1 India’s leading software companies 22
4.2 Market share of software service provider 23
5. OBJECTIVE OF THE PROJECT 25-27
5.1 Primary & secondary objectives 26-27
6. PROJECT DETAILS 28-40
7. RESEARCH METHODOLOGY 41-47
7.1 Analysis & results of data mining 42
8. PRACTICES OF CRM AT IBM 49
8.1 Advantages and Benefits 50
9. DATA PRESENTATION 51-62
9.1 Questionnaires 52
10. SUGGESTION 63-64
11. CONCLUSION 65-66
12. BIBLIOGRAPHY 67-68
13. ANNEXURE 70-72
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1.1 INTRODUCTION
Clients want solutions- not the pieces of technology, or bits of advice so IBM
speaks the language of business. IBM believes in smart work and hires the people who
6
can win the world through technology. IBM provides high value services to build a new
business process that solves client’s problems.
With the help of this project I came to know the concept of software marketing
through data mining and my previous qualification (Masters of Computer Application)
helped me out to understand the core concept of software marketing.
In brief, we sell the concept to our customers not the goods. IBM has helped
thousands of clients of all sizes enhances infrastructure flexibility through consoliditation
and virtualization of IT infrastructure, improved energy efficiency, and enhanced
operational management.
In the organization initially I undergone through the software product of IBM and
had to give presentation daily on each software products. These things gave me the
ultimate confidence to talk to our clients throughout INDIA.
1.2 FACTORS WHICH FORCED THE IBM TO UNDERGO THIS PROJECT
The data mining of customer relationship management is the topic for evaluating
customer satisfaction which can more extensively in the IBM to obtain critical inputs on
features which customers are delighted to find in the offering and are willing to pay more
dollars for more of certain features. But the questions arise here that how will a person
come to know about all these, so IBM has decided to undergo this project title to data
mine the customer’s base and on that basis Company could find out the new strategic
tools.
1.3 SCOPE OF THE PROJECT
7
IBM has ranked first in the world for providing business solutions. IBM strategy
is to satisfy the needs of customers. If there is one company who has been present
throughout the development of information technology over the 20th century; it is
without a doubt IBM. The scopes of this project are unlimited.
Identification of customer requirements
Long term planning
Develop new strategy
Evaluate customer perception
Establishment of product’s functional requirements
Development of product concept
1.4 REASON FOR SELECTING THE TOPIC
My topic is ‘Data mining of customer response data in software services’. I am
very exciting towards this topic because topic is really burning and by the help of this
topic one can come to know the exact satisfaction level of customers. We are into the
providing business solutions and are compulsory to mining the customer responses.
This topic can contribute to solving business problems in software services by
finding patterns, causalities and correlations in business information.
8
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2.1 PRODUCTS PROFILE OF IBM
FEATURES OF THE ABOVE SOFTWARE
IBM LOTUS SOFTWARE
Lotus software is a client-server architecture collaborative owned by IBM
software group. Lotus notes software is an integrated desktop client option for accessing
business E-mail, Calendars and Applications on IBM domino server.
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COMMUNICATION COLLABORATION
LOTUS NOTES
COORDINATION
Figure No-1: IBM LOTUS NOTES FEATURES

FEATURES AND BENEFITS OF LOTUS NOTES
E-mail and instant message facility.
Lotus notes can be used as Internet message access protocol.
In this server and client can replicate database designs and data access many types
of networks including modems that user can get full advantage while working
offline.
Lotus notes provide the strong firewall protection that no unauthorized user can
access their database. For this a user to provide their own ID and complex
password.
Lotus notes require users to select new memo rather than new mail. Apart from
this there are various shortcut keys has provide to quick access.
IBM WEBSPHERE SOFTWARE
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Websphere is IBM’s integration software platform. It include the entire
middleware infrastructure such as server, services and tools needed to write, run and
monitor 247 industrial strength on demand web applications. It supports SERVICE
ORIENTED ARCHITECTED and NON-SERVICE ORIENTED ARCHITECTED.
FEATURES AND BENEFITS OF LOTUS NOTES
Business integration
Commerce
Networking
Software development
IBM TIVOLI SOFTWARE
Tivoli was acquired by IBM in 1995.Tivoli service management enables clients to
better manage their infrastructure, Operations and IT processes to more effectively
deliver services aligned to business goals.
IT & SERVICE MGMT
MATURITY
SYS. & INFORM.MGMT
RESOURCE MANAGEMENT
WHAT IBM TIVOLI OFFERS
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Business Application management
Security management(Authentication, Comprehensive security)
Service, network & device management
Storage management(Data protection, Centralized data storage)
Service providers solutions
Service management
PRODUCTS OF TIVOLI
Storage manager express
Monitoring express
Identity manager express
Provisioning manager express
PEOPLE
PROCESS TIVOLI TECHNOLOGY
13
INFORMATIO
N
Figure No. 2: IBM TIVOLI FEATURES
INFORMATION MANAGEMENT SOFTWARE
Data warehousing and Business Intelligence
Threat and Fraud Intelligence
Data and Information Management
Information Integration
RATIONAL SOFTWARE
IBM Rational software provides a software development platform that improves
the speed, quality, and predictability of software projects. This full life-cycle solution
combines software engineering best practices, market-leading tools and many more.
FEATURES AND BENEFITS
14
Architecture Management
Quality management
Process and Portfolio Management
Change and Delivery Management
QUICK FACTS
Latest Version is V6.0
Platform supports – Window, Suse Linux and Red hat Linux
It also supports RDBMS, MAIL SYSTEM, & WEB SERVICES.
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3.1 IBM CHAIRMAN & CEO INDIA
JUNE 6, 2006: The chairman and chief executive officer of IBM, Samuel J.
Palmisano, speaking to the largest-ever gathering of IBM employees in India, and
announced IBM expects to nearly triple its investment in India over the next three years.
Mr. Palmisano spoke before 10,000 employees gathered in Bangalore and via
satellite to thousands of other employees in Delhi, Mumbai, Kolkata and Pune. With
43,000 employees in 14 cities, India is IBM's largest country organization outside the
U.S.
3.2 COMPANY PROFILE
IBM is the world's largest information technology services and consulting provider.
Some 190,000 professionals in more than 160 countries help clients integrate information
technology with business value -- from the business transformation and industry expertise
of IBM Business Consulting Services to hosting, infrastructure, technology design and
training services.
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IBM has been present in INDIA since 1992. Its Regional headquarter in
BANGALORE.IBM has its offices in 14 cities including Regional offices in New Delhi,
Mumbai, Chennai, Kolkata. IBM offers serving customers serving better, reducing risks
and improving speed transform them into on demand business.
1951
IBM begins operations in India The business operated successfully until the mid-
1970s, when India’s Foreign Exchange Regulation Act (FERA) required foreign owned
companies to reduce their equity ownership to (in IBM’s case) 26%. For obvious reasons,
IBM was unwilling to take that course of action and so in 1978, the company ‘changed its
Mode of business operation’ and began to conduct business in India as an off-shore entity
only, through a Liaison Office, operated by a handful of local employees.
1992
IBM reenters Indian market through a joint venture.
1995
Accredited ISO Tickets 9001 (recertified to ISO9001:2000 in year 2001).
1997
TISL Becomes Tata IBM Ltd, IBM Global Services launched - offers a range of
IT services from IBM including networking services, outsourcing, education, system
integration, consulting, software development and hardware design.
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Solution Partnership Center is set up in Bangalore to help Indian ISVs port application
onto proven IBM hardware platforms like AS/400 and RS/6000.
1998
January
IBM School of Enterprise Wide Computing launched at Indian Institute of
Information Technology (IIIT), to offer short-term courses to the public and credit
courses on enterprise-wide computing to graduate and undergraduate students.
April
IBM India Research Laboratory established in New Delhi, located in the
sprawling campus of Indian Institute of Technology (IIT).
1999
IBM India Limited formally launched - after government approves Tata's
divestment plan. IBM India launches PC manufacturing in Pondicherry IBM Global
Services India achieves CMM Level 5 Rating.
2000
June
Global e-business software center set up in Gurgaon to offer IBM’s customers a
range of services including technical consultation, proof of concept and technical
presentations, implementation planning, solution architecture, application design and
development, deployment, and education and training.
November
IBM Global Financing launched in India to provide flexible and attractive
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financing and leasing programs to fund information technology (IT) requirements of
Indian customers.
2001
India Software Development Labs established in Pune and Bangalore to develop,
enhance and support key IBM products & technologies with a committed investment of
US $ 100 Million. The state-of-the-art facility is playing an important role in IBM’s
Linux Strategy, working closely with the worldwide Linux Technology Centre.
June 2002
IGSI recognized as the "Top MNC Software Services Exporter" and "Top Foreign
Equity Company" in Karnataka for Year 2001-02 by Software Technology Parks of India
(STPI), Bangalore Chapter.
July
IGSI has also been also recognized as ‘Distinguished IT Exporter' for 2001-02 by
MAIT.
Dataquest, India's leading trade magazine has also rated IGSI as the Top MNC
Software Services Exporter for Year 2001-2002.
2003
IBM India Research Labs launches a "Technology Center" at its facilities to
showcase business applicability of cutting edge technologies to organizations.
19
RBM (Radix Business Models) is the business partner of IBM. RBM is a
software services provider, which follows Onsite Support Model and Offshore Model,
what is popularly termed as the ODC model (Offshore Development Center). RBM is
serving 8 consistent clients with repeat records, keeping customer satisfaction as focus.
We have successfully and repeatedly delivered on various domains – Manufacturing,
Human Consulting, Education, etc through varied technologies – Louts Notes, .Net, Java,
etc. Our flexible methodology is client-focused to cater client needs, ensuring rapid
software development, at a low-risk and high output.
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INDUSTRY PROFILE
4.1 INDIA’S LEADING SOFTWARE COMPANY
In India the major software market players information as on JUNE 07.The
percentage market share are as follows along with their rank.
RANKS. SOFTWARE COMPANIES % Age market Share

1 TATA CONSULTANCY SERVICES 20%
2 IBM 17%
3 INFOSYS TECHNOLOGIES 13%
4 HCL TECHNOLOGIES 12%
5 SATYAM COMPUTER SERVICES 10%
6 WIPRO TECHNOLOGIES 9%
7 COGNIZANT TECHNOLOGIES 7%
8 NIIT 6%
9 SILVER LINE TECHNOLOGIES 4%
10 PENTASOFT TECHNOLOGIES 2%
Table No. 1
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Figure No. 3 RANK WISE MARKET SHARE
RANKS SOFTWARE COMPANIES MARKET SHARE

1 TECHNOSOFT CORP. 31%
2 MICROSOFT 25%
3 IBM 22%
4 APPLE 14%
5 DELL 8%
4.2 WORLD TOP FIVE SOFTWARE SERVICE PROVIDER AND MARKET SHARE
Following are the major market player in the field of service provider for the
demand business and providing better business solutions.
Table No. 2
22
Figure No.-4 TOP SERVICE PROVIDER
MAJOR MARKET PLAYERS IN SOFTWARE SERVICE
23
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5.1 OBJECTIVES OF THE PROJECT
The study has two fold objectives:
Primary Objectives
Secondary Objectives
PRIMARY OBJECTIVE
My project title is Data mining of customer response data in software services. It
includes how Data Mining can allow an organization to market the product to customers
on an individual or an Organization basis - selecting those are most like to be responsive
and suggesting targeted creative messages.
Primary objectives at a glance
To data mine the customer response data to improve service quality.
25
To attract more customers to build their Infrastructures, Operations and IT
processes.
To customized the software product as suitable for providing end-to end business
solutions.
SECONDARY OBJECTIVE
Secondary objective is the Impact of expressive value of service on satisfaction
and patronage intentions. By using the measuring service quality that expressiveness
value is more significant than performance perceptions in determining satisfaction.
Patronage intentions are more closely related to performance perceptions.
Secondary objective at a glance
Increase awareness through providing better Quality of service.
Improving customer satisfaction to ensure customer retention.
Improve better understanding of interrelationship between Customers and service
provider.
Our activities are very close to what is the need of today’s dynamic demand of the
current trend of business. IBM has 165 clients in Pune and IBM is one of the service
providers to improve their current trend of business.
5.2 WHAT WE DO AND FOR WHOM?
Our innovative technologies have proved that we are the right people to provide
right solutions to the demand business for all type of firm like Manufacturing, IT
solutions, Banking & Insurance, Service sectors etc.
26
Building a resilient infrastructure
Optimizing IT performance
Growing your business
Improving customer relationship
Managing and developing the human resources
Optimizing supply chain and Operations.
Protecting employees and information
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6.1 A CONCEPTUAL OVERVIEW
In today’s extremely competitive world, it is critically important to businesses to
ensure that their product and service offerings not only meet basic needs of the customers
but also excite them with perceptible product differentiation.
6.2 WHAT IS DATA MINING?
Data Mining is the process of using analytic methods to explore data to discover
meaningful patterns that enable organizations to operate in a more cost effective manner.
Historical data is based on the past performance. Data Mining Technologies offers a
proprietary technology that is embodied in it two flagship products Nuggets and nuggets
to address this need. It also provides Data Mining as a service.
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DATA MINING ARCHITECTURE FOR IBM SOFTWARE SERVICES
HISTORIC CLIENT CUSTOM CURRENT COMPAN

AL DATA OPTION DETAILS DATA DATA Y DATA
GLOBAL DATA WAREHOUSE AND DATA MARTS
USING DATA MINING TECHNIQUES FOR
RETAIN SERVIC INTERA CONTR

CRM CUST. E CTION OL
QUALIT
Y
Figure No-6: The use of data mining technique is a global and firm wide challenge for IBM
6.3 WHY IBM NEED DATA MINING?
Data Mining Technologies, (DMT) provides complete predictive modeling
services to the direct response industry using state-of-the-art, proprietary data mining
technology to help marketers target highly responsive prospects and customers.
Increased competition has intensified the need to operate more cost effectively in
today’s global marketplace.
29
Figure No.7 IBM DATA MINING ARCHITECTURE
DATA MINING FOR PREDICTION
IBM TECHNOLOGIES Yesterday Today Tomorrow
Static information and current Known Known Known

plans (e.g. demographic data,
marketing plans)
Dynamic information (e.g. Known Known Target

customer transactions)
Table 3 - Data Mining for Predictions

EVALUATING THE BENEFITS OF A DATA MINING MODEL IN IBM
Figure-8, which shows a "gains chart," suggests some benefits available through
data mining. The diagonal line illustrates the number of responses expected from a
randomly selected target audience. Under this scenario, the number of responses grows
linearly with the target size.
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GAINS CHART
Figure No.8 GAINS CHART
The top curve represents the expected response if you allow the model scores to
determine the target audience. The target is likely to include more positive responders
than in a random selection of the same size. The shaded area between the curve and the
line indicate the quality of model. The steeper the curve, the better the model.
OUR OFFERINGS TO CUSTOMERS
As our product is software product so our target is totally on the firms or
Organizations.
LOTUS NOTES SOFTWARE PRODUCT
Lotus Notes is one of the software product which stood at the top and fulfill all
needs of demand business. I had only to deal with Lotus notes product from the software
product line of IBM.I usually speak to our client whether they are satisfy with the
features carrying out by LOTUS NOTES or not.
31
At very beginning of project I had to give the presentation on Lotus Notes
software and their features. It is very much important to communicate with the top level
management in an efficient manner.
I used to speak to every client who already use IBM software product. Our main
focuses were to develop the better relation ship with our clients. So my profile was
around to CRM (Customer relationship management) through providing better service
quality.
DATA MINE THE CUSTOMER RESPONSE TO IMPROVE SERVICE QUALITY
Data mine is generally a base where all the historical data as well as current
database being stores. According to past experience of the customers IBM develop the
product and quality. With the help of data mine IBM helped a lot in terms of growth of
clients in Pune and outside. Initially in Pune, it was 85 clients were using Lotus notes but
the help of data mine IBM has the clientele base of 135 and also IBM succeed to
penetrate the new market in the major cities like New Delhi, Chennai, Bangalore and
Cochin.
STEPS IN THE EVOLUTION OF DATA MINING FOLLOWED BY IBM
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Evolutionary Business Question Enabling Product Characteristics
Step Technologies Providers
Data Collection "What was my Computers, tapes, IBM, CDC Retrospective,

(1980s) total revenue in the disks static data delivery
last five years?"
Data Access "What were unit Relational databases IBM, Microsoft Retrospective,
(1985s) sales in New (RDBMS), dynamic data
England last Structured Query delivery at record
March?" Language (SQL), level
ODBC
Data "What were unit On-line analytic Micro strategy Retrospective,

Warehousing & sales in New processing (OLAP), dynamic data
Decision England last multidimensional delivery at
Support March? Drill down databases, data multiple levels
to Boston." warehouses
(1990s)
Data Mining "What’s likely to Advanced Pilot, Lockheed, Prospective,

(Emerging happen to Boston algorithms, IBM, SGI, proactive
Today) unit sales next multiprocessor numerous information
month? Why?" computers, massive startups (nascent delivery
databases industry)
Table 1. Steps in the Evolution of Data Mining.
TARGETING MORE CUSTOMERS
The way in which companies interact with their customers has changed
dramatically over the past few years. A customer's continuing business is no longer
guaranteed. As a result, IBM has found that we need to understand our customers better,
and to quickly respond to their wants and needs. In addition, the time frame in which
these responses need to be made has been shrinking. It is no longer possible to wait until
the signs of customer dissatisfaction are obvious before action must be taken. To
succeed, companies must be proactive and anticipate what a customer desires.
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TARGETING CUSTOMERS
IBM INCREASE AWARENESS THROUGH PROVIDING BETTER QUALITY
OF SERVICE
We can see that through getting more and more responses from historical and
current information from the client base IBM successfully get in to:
Pinpoint Accuracy to Sales
Increasing Customer Value
Scoring Customers
Solve business decision problems.
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6.4 CUSTOMER RELATIONSHIP MANAGEMENT FOR IBM
During my project I visited personally to analyze the INS and out of customer’s
mindset. I visited those organizations which are using Lotus Notes software since many
years and I got the expressiveness value of service quality and patronage intentions.
By the help of database I came to know that many of Organization is facing
problem to use the software properly. So to develop better relationship we also provide
training for using Lotus notes software. By this way we got successful to stretch the
product with introducing corporate training and IBM is only the company which provides
training program for Top level executive. So I found that it is very much important to
interact between a Company and customers.
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Data Mining and Customer Relationships: IBM technologies understand the value of
collecting customer data, but also realize the challenges of leveraging this knowledge to
create intelligent, proactive pathways back to the customer.
Customer Acquisition and Data Mining: For IBM, the primary means of growth
involves the acquisition of new customers. This could involve finding customers who
previously were not aware of IBM product, were not candidates for purchasing our
product (for example, IBM software product for a big garment shop).
Scoring Customers: Once a model has been created by a data mining application, the
model can then be used to make predictions for new data. In July 2007 IBM got
successful to score more customers.
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Figure No.12: CRM ARCHITECTURE
Here we can observe that data mining is very essential to develop the relationship with
customers. Above figure represent the separate entity for each i.e. Customer, Realtionship
and Management. There are three attributes of customers i.e. customer knowledge,
context and value. These three attributes are the main base from I have data mined the
responses for IBM lotus notes software.
BENEFIT OF DATA MINING IN IBM
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1 Data Mining Improves Decision Making
2 Data mining helps SPSS customers solve business problems
RESULTS OF THE STUDY
38
As data mining of customer response data is very much needed in term of customer
relationship, in terms of profit and in terms of creativity.
1. IBM start with a remarkable client base
IBM clients today are investing in new technologies and services to become on
demand enterprises. As first movers, they are establishing an early, significant edge over
their competitors.
2. Growing in number and reaching dynamic business segment
On demand business and computing solutions have improved the economics of and
broadened the options available to enterprises — especially small and medium-size
businesses (SMB). Revenue from IBM’s SMB sales organization was $29.2 billion in
2006, an 8 percent increase over the previous year.
BIGGEST ACHIEVEMENT
YEAR 2004 IBM PENETRATED THE RUSSIA, BRAZIL AND CHINA MARKET
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IN 2006 IBM COVERED THE MARKET GLOBALY
UK (25%)
RSA (35%) CANADA

(16%)
AUSTRIA (24%)
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7.1 ANALYSIS AND RESULT OF DATAMINING
Management meaning of research
41
“In the context of management Research concerns itself with obtaining
information through empirical observation that can be used to systematically develop
logically related propositions so as to attempt to establish casual relationships among
variables.”
INFORMATION REQUIREMENTS
For successfully done the research, I have two sources of information, that is
1. PRIMARY DATA SOURCE
Questionnaires
Online Interviews
2. SECONDARY DATA SOURCE
www.ibm.co.in
www.wikipedia.com
www.google.com
Journals
Company source
RESEARCH METHODOLOGY
Research Method: Questionnaires
Research Design: Explorative Research
Population: All IBM Lotus user inside Pune
Sampling Drawn: Old user of Lotus notes product & New user
Sample Size: 24
MODEL SPECIFICATION AND RESEARCH HYPOTHESIS
42
IBM thus purpose two value dimensions associated with software service-
performance and expressiveness value through data mining, that impact satisfaction with
software and patronage intensions. If satisfaction has mediating effect, then the
relationship between satisfaction and patronage would be stronger than the relationship
between service quality and patronage.
PATRONAGE
INTENTIONS
SERVICE SATISFACTION
QUALITY
PATRONAGE
INTENSIONS
Figure No.-7: MODEL SPECIFICATION OF IBM
The above figure is based on the premise that satisfaction acts as a mediator on
the relationship between service quality and patronage intentions irrespective of the value
obtained by the customer through data mining. The mediating effect is shown by bold
black arrow. If satisfaction has a mediating effect, then the relationship between
satisfaction and patronage would be stronger than the relationship between service
quality and patronage.
PRIMARY DATA SOURCES
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In primary data collection, I used questionnaires. Primary data collection is
necessary when a researcher cannot find the data needed in secondary sources. There are
three reasons behind obtaining primary data-Observations, Surveys and experiments.
QUESTIONNAIRES
For this I used open ended and close ended question as well to get the feedback.
The pattern of questions is only to get the satisfaction level of customers.
SAMPLE SIZE
44
There were two sets of respondent: one for measuring performance of preferred
IBM lotus software products attributes and a second sample for measuring expressiveness
value of software service attributes. A sample quota of 24 respondents for each dimension
was fixed based on Organization structure, Annual revenue and actual need of demand
business based on current trend of management. The sample was divided across SEC A
and SEC B (Old users of IBM lotus note software product) and new emerging user
respectively .Respondents were at least 5 years old user of the software product in Pune
and new users (at least 2 years of using IBM products). There were 16 respondents who
are using IBM lotus notes since last five years and 8 respondents are using IBM products
since last two years.
For final analysis, after deleting incomplete records where several respondents
had mentioned that IBM lotus notes software as preferred. I had a set of 18 respondents
which are completely satisfy with the product and quality of service. The rest 7
respondents gave the information that IBM should also provide corporate training for
proper using of IBM products.
ANALYSIS AND RESULTS
45
Since the sample sizes were not very large, I first conducted the sampling
adequacy test for each samples. Figure below is showing the profile of the respondents.
PROFILE OF THE RESPONDENT
PERFORMANCE EXPRESSIVENESS
FREQUENCY PERCENTAGE CUM% FREQUENCY PERCENTAGE CUM
%
OLD USER 16 66.7% 66.7% 18 75% 75%
NEW USER
08 33.3% 100% 06 25% 25%
TOTAL 24% 100% 24 100%
Table No.3
These results indicate a strong mediation effect of satisfaction on the relationship
between expressiveness value of service quality and intention to recommend. Here we
can identify that the importance of data mining of customers response data.
IMPLICATION AND FUTURE RESEARCH DIRECTIONS
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Data mining is the best way to get the response of customers and to develop
customer relationship. Service quality is definitely a customer psychological constructs
but IBM evaluates providing better solutions with new technologies are major issue other
then just developing relations. For this reason I believe that service quality, when
referring to the customers perspective, needs to be redefined to include all those cognitive
assessments that influence the customers perception of the overall superiority of software
services, including superiority in terms of expressiveness.
Future research also needs to focus on developing a service quality scale to
develop better relations with the customers. Other relevant customer value dimensions
also need to be explored.
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8.1 PRACTICES OF CRM AT IBM
CRM analytics solutions from IBM technology for greater customer insight.
Target marketing for higher sales and return on marketing expenditures. Use customer
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intelligence to personalize messaging and offers across marketing channels. Help predict
trends, optimize customer relationships and uncover new sales opportunities.
THE ADVANTAGE
Extensive experience in successful CRM analytics implementations.
Leadership in collaborative tools.
One point of accountability to give the results which need.
THE BENEFITS
Improve understanding of customers' needs.
Identify and target customers with higher profit potential.
Gain decision support from accurate, up-to-date customer intelligence.
Personalize offerings to individual customers for greater returns.
Derive insights into customer purchasing patterns and recognize new trends.
Give customers a more positive experience to improve customer satisfaction.
Improve overall reputation in the marketplace and excellent customer services.
HAPPIER CUSTOMERS, MORE REVENUE
Automotive CRM analytics solutions from IBM can help to achieve return on investment
by providing accurate customer data that enables to:
Identify and target customers with higher profit potential.
49
Increase the effectiveness of marketing programs to increase revenue
Reduce cost of tracking leads through automation.
PROVEN BENEFITS
An auto manufacturer needs to unify customer data to improve customer service,
and to track and manage sales leads to improve sales. Outdated, paper-based systems
make it difficult to track and respond to leads efficiently. Our automotive CRM analytics
solution could implement a single database to:
Gather and consolidate customer data.
Provide a single view of each customer that's accessible to all employees.
50
LIST OF COMPANY I VISITED FOR COLLECTION OF PRIMARY DATA
NAME OF THE COMPANY SECTORS

SOFT CELL TECHNOLOGIES IT SECTOR
I-VISION TECHNOLOGIES IT SECTOR
KPIT CUMMINS IT SECTOR
ATLAS COPCO MANUFACTURING
COLGATE INDIA FMCG
CANON INDIA PHOTO COPIER
VSM SOFTWARE PVT.LTD IT SECTOR
CYRET TECHNOLOGIES INDIA IT SECTOR
POLARIS CHENNAI MANUFACTURING
LARSEN &TUOBRO MANUFACTURING
51
IOC CORPORATION PETROCHEMICAL
SOLITOS INFOTECH PVT.LTD IT SECTOR
WHIRLPOOL INDIA HOME APPLIANCES
SKF INDUSTRIES FMCG
Table No.-3
ANALYSIS OF IBM LOTUS NOTES TECHNOLOGY
1. WHICH TECHNOLOGY YOU FIND MOST RELIABLE FOR YOUR
ORGANIZATION?
TOTAL NON USER ORGANIZATION SURVEYED=30
SERIAL NO. TECHNOLOGY NO. OF RESPONSES % OF CUSTOMERS
1 TCS 08 26.6%
2 INFOSYS 05 16.6%
3 IBM 11 36.6%
4 WIPRO 02 6.66%
5 SATYAM 01 3.33%
6 OTHERS 03 10.0%
Table No.4
52
Figure No.8: CONSUMER PERCEPTION
INTERPRETATION
From above chart it can be easily seen that IBM Lotus notes product is the market
leader in the field of software product.
2. HOW DO YOU RATE THE IBM LOTUS NOTES TECHNOLOGY?
Finding:
Average 65
%
Good 26
%
Excellent 8%
53
Figure No.9: IBM LOTUS NOTES RATING
INTERPRETATION
Most of organizations are willing to take IBM lotus notes product for their
organization. They don’t want the pieces of technology but a product which can fulfill all
the requirement of the current demand of business.
3. ARE YOU COMPLETELY SATISFY WITH THE PRODUCT OFFERING BY
THE IBM TECHNOLOGY?
Finding:
Yes 83
%
No 12
%
Scope of improvement 5%
54
Figure No.10: USER SATISFACTION ANALYSIS
INTERPRETATION
We are least focus on the customers satisfied with the product but more attentive
for the customers who are satisfy or partially satisfied. By this way we can customize our
product that can provide ultimate satisfaction to our customers.
4. WHAT ARE THE FEATURES WHICH MAKES IBM DIFFERENT FROM
OTHER SERVICE PROVIDER?
Findings:
User Friendly Environment 91

%
Easy to install 5%
Authentication 2%
Others 2%
55
Figure No.11: COMPARATIVE ANALYSIS OF LOTUS NOTES
INTERPRETATION
This analysis is basically to gather the key area of IBM technology .I found that
most of the customers are satisfied with the performance and more than 90% of the
customer said that IBM lotus has user friendly environment.
5. DOES IBM PROVIDE YOU THE SERVICE ON TIME OR WHEN NEEDED?
Finding:
Yes 63
%
No 37
%
%
56
Figure No.12: SERVICE SATISFACTION
INTERPRETATION
From the total sample size, 63% of customers are delighted by the service offering
by the IBM. But 37% of the customers are not satisfied with the service quality. So here
we can find that still 37% scope of improvement in service quality is needed.
6. WHAT ARE THE ADDED FEATURES OF IBM TECHNOLOGY APART
FROM THE PRODUCT?
Finding:
Total number of Organization visited=16
SR.NO. FEATURES NO. OF RESPONSES %RESPONSE
1 SERVICE QUALITY 4 25.0%
57
2 ONLINE DELIVERY 3 18.75%
3 PAYMENT SOLUTION 6 37.5%
4 CORPORATE TRAINING 2 12.5%
5 OTHERS 1 6.25%
Table No.5
Figure No.13: ADDED FEATURES OF LOTUS
INTERPRETATION
This question is open ended question and can be more type of answers but here
we can see that most customers are satisfied by the IBM payment solution and quality of
service. So here we can explore the new market on these bases.
7. THE COST INCURRED ON IBM LOTUS NOTES IS AFFORDABLE FOR
YOUR ORGANISZATION OR NOT?
Finding:
Yes 72
%
%
No 28
%
%
58
Figure No.14: COST ANALYSIS
INTERPRETATION
This question was a common question for both Old user and new user. It is very
obvious that new user might not get satisfy until or unless they earn the maximum out of
it. To penetrate the new market it is essential to provide the exact solutions to get
benefited. The maximum of NO responses I got fro new user.
8. According to you how can we make our software products much better?
Finding:
SR.NO. AREA OF IMPROVEMENT %RESPONSE
1 EXTRANET CONNECTIVITY 19%
2 FREE TRAINING 39%
59
3 IMPROVE SERVICE DELIVERY 24%
4 MORE COST EFFICIENT 12%
5 EXTERNAL THREATS 6%
Table No.6
Figure No.15: AREA OF IMPROVEMENT
INTERPRETATION
As IBM lotus notes provide better protection from external threats but in above
chart we can see that 6% of customers are still not happy with the performance. Such
responses can definitely improve the authentication of IBM Lotus notes software
products.
9. According to you what are the most important features should be added in the
product as compare to other software provider?
Finding:
Multi platform support

12
%
Mailing feature could be more efficient %
28
%
%
60
Electronic learning through Lotus notes 30
%
Other facilities 30
%
Figure No.16: PRODUCT INNOVATION
INTERPRETATION
Though IBM Lotus notes provide the best facility as compare to giant like
Microsoft and Techno Soft Corporation but the value we can add to our product through
customer data mining. By this way IBM can improve their customer base.
10. Any suggestions.
Finding:
This question I had asked to Associate Director (CANON INDIA) one of the giant
users of IBM lotus notes. CANON is using IBM Lotus notes since its inception.
It was really a nice experience to have a talk through E-mail. Following are the
response I got from Canon India.
61
In this competititive world no product is perfect until or unless you adding some
additional features to the product at regular time interval.
No clients want the pieces of technology but they want how products are
beneficial for current trend of business.
Don’t keep changing in your product but add the value and provide better demand
solutions.
Clients are least bother about the features but they are much bother about the
benefits.
62
SUGGESTIONS
During the project I got the opportunity to learn many things about Software
Industry’s. I understand software marketing concept very well. It goes without saying that
IBM is one of the largest software service providers through out the world.
During the project I got some of responses from existing client base on which I
could draw some of the suggestions for the benefit of IBM technologies. Following are
the suggestions:
63
UTILIZE CUSTOMER INTELLIGENCE IN INNOVATION:
Not all ideas will come from a Company’s software developer. There fore, IBM
must constantly be on the look out for customer expectation and customers’ ideas.
The modern marketing is customer focused which has developed the modern
customer not only as a user but also, has offered the opportunities to crystallize their
needs and expectations from the products.
COST EFFICIENT:
IBM software products are costly and this software is only being used by the
major players in the market. But to capture the small players in the market it is essential
for IBM to cut down the cost of product that a small player can also use it.
CORPORATE TRAINING
Using IBM lotus notes software is not that easy to access for the first time user so
for the new user, software training should be provided to them. It could be the best way to
make them satisfy and to generate revenue also.
64
CONCLUSIONS
As a conclusion of the project title DATA MINING OF CUSTOMER
RELATIONSHIP MANAGEMENT, it can be easily seen that Data mining techniques is
a powerful tool to assess customer satisfaction and customer relationship. It can be used
in product development and quality assurance. It is very popular quality methodology and
has been effectively used by large organizations. By the help of data mining IBM can
build the following:
Client base
Improve the product features
65
Generate revenue
Customer satisfaction
Patronage intentions of the clients
Customer relationship
Only earning profit cannot lead any organization but developing relationship with
customers may lead to long run.
66
BIBLIOGRAPHY
REFERENCE BOOKS
Marketing Management
By Philip Kotler
Data Mining
By Rajanish Dass
Customer Relationship Management
By Kurt Thearling
67
Marketing Research
By William Ross
WEBSITES
www.ibm.co.in
www.wikipedia.com
www.iim.ahd.ernet.in
www.google.com
OTHER MATERIALS
IBM Journals
IT Marketing Journals
68
ANNEXURE
WELCOME TO THE WORLD OF IBM TECHNOLOGY
“SURE IT’S POSSIBLE”
IBM LOTUS NOTES
CUSTOMER FEEDBACK FORM
NAME: AGE:
ADDRESS:
TICK THE ANSWER:
69
1. WHICH TECHNOLOGY YOU FIND MOST RELIABLE FOR YOUR
ORGANIZATION?
TCS IBM SATYAM INFOSYS WIPRO
2. HOW DO YOU RATE THE IBM LOTUS NOTES TECHNOLOGY?
AVERAGE GOOD EXCELLENT
3. ARE YOU COMPLETELY SATISFY WITH THE PRODUCT OFFERING BY
THE IBM TECHNOLOGY?
YES NO SCOPE OF IMPROVEMENT
4. WHAT ARE THE FEATURES WHICH MAKES IBM DIFFERENT FROM
OTHER SERVICE PROVIDER?
USER FRIENDLY AUTHENTICATION OTHERS
5. DOES IBM PROVIDE YOU THE SERVICE ON TIME OR WHEN NEEDED?
YES NO
6. WHAT ARE THE ADDED FEATURES OF IBM TECHNOLOGY APART
FROM THE PRODUCT?
70
SERVICE QUALITY ONLINE DELIVERY PAYMENT SOLN.
7. IS THE COST INCURRED ON IBM LOTUS NOTES IS AFFORDABLE FOR
YOUR ORGANISZATION?
Yes NO
8. ACCORDING TO YOU HOW CAN WE MAKE OUR SOFTWARE PRODUCTS
MUCH BETTER?
EXTRANET ACCESS CORPORATE TRAINING COST EFFICIENT
9. ACCORDING TO YOU WHAT ARE THE MOST IMPORTANT FEATURES
SHOULD BE ADDED IN THE PRODUCT AS COMPARE TO OTHER
SOFTWARE PROVIDER?
MULTI PLATFORM E-LEARNING OTHER FACILITIES
10. ANY SUGGESTIONS
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71
THANK YOU
72

IBM

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A PROJECT REPORT

“DATA MINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

“RADIX BUSINESS MODELS”

NITIN KUMAR SINHA

Under the guidance of

PROF. MRs.SURYA RAMDAS

In partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

I would like to express my gratitude to Mr. Vivek Kandekar (Software

continuous guidance to complete the project.

My heartfelt gratitude to Dr. D.K.Sinha (Director AISSMS) for his motivation,

through the E-mail.

Nitin Kumar Sinha

“DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT”

Project Sum up and actual work done

2. Objective of the Project

Data mining of client response for IBM software

Customer relationship management for IBM

To expand the IBM software products Client base

Expressiveness value of Software services

IBM lotus notes user response through data mining

5. Data Collection Methods

Primary data: For IBM software users inside INDIA

Secondary data from http://www.wikipedia.com &

“DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT”

1. Table No.1:India’s leading software company (Page No.22)

1. Figure No.1: IBM Lotus notes features (Page No.10)

“DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT”

Sr.No. TOPICS PAGE.NO.

business process that solves client’s problems.

through data mining and my previous qualification (Masters of Computer Application)

helped me out to understand the core concept of software marketing.

thousands of clients of all sizes enhances infrastructure flexibility through consoliditation

and virtualization of IT infrastructure, improved energy efficiency, and enhanced

ultimate confidence to talk to our clients throughout INDIA.

“DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT”

1.2 FACTORS WHICH FORCED THE IBM TO UNDERGO THIS PROJECT

1.3 SCOPE OF THE PROJECT

throughout the development of information technology over the 20th century; it is

without a doubt IBM. The scopes of this project are unlimited.

Identification of customer requirements

Long term planning

Develop new strategy

Evaluate customer perception

Establishment of product’s functional requirements

Development of product concept

“DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT”

1.4 REASON FOR SELECTING THE TOPIC

My topic is ‘Data mining of customer response data in software services’. I am

This topic can contribute to solving business problems in software services by

finding patterns, causalities and correlations in business information.

2.1 PRODUCTS PROFILE OF IBM

FEATURES OF THE ABOVE SOFTWARE

IBM LOTUS SOFTWARE

Lotus software is a client-server architecture collaborative owned by IBM

business E-mail, Calendars and Applications on IBM domino server.

Figure No-1: IBM LOTUS NOTES FEATURES

FEATURES AND BENEFITS OF LOTUS NOTES

E-mail and instant message facility.

Lotus notes can be used as Internet message access protocol.

IBM WEBSPHERE SOFTWARE

monitor 247 industrial strength on demand web applications. It supports SERVICE