IT Systems

IT Systems

Companies Which Successfully Implemented CRM Systems

W&O Supply was acquired by PON Holdings based in the Netherlands. The massive expansion created a challenge for the company where it had to connect a mobile workforce of 180+ people. The problem of standardization of sales processes was also critical at that time. W&O Supply used the CRM systems which increased both the quantity and quality of call monitoring. They were also capable of creating comprehensive customer profiles (Maximizer, 2007).

Mathusek Inc. is the largest installer of sports courts and sports floor in North America. As the company grew, it needed more efficient ways of tracking and managing the projects. Due to absence of any central database, duplicate records were saved in multiple databases. Thus the management was unable to identify important customer information. It also became difficult for same reasons to analyze sales forecasts and sales reports. The company wanted to organize all information in a timely and reliable way. Due to effective implementation of CRM system, The productivity also increased for new projects and service response time reduced significantly (Maximizer, 2007).

ScotiaMcLeod needed proactive approach to build new customer base and retain the current one. On-line CRM Solutions automated many tasks of the company that resulted in more comprehensive customer profiles. It also decreased direct mail costs and increased productivity by automating lead managements (Maximizer, 2007).

Porter Five Forces

According to Porter's Five Forces Model, competition has increased significantly due to evolution of internet and e-Commerce.

Competitive rivalry within an industry

The internet has led to a focus on the top and bottom lines. The market share and costs cuts are a competitive edge in this era. Completion has become so tough that many businesses are operating only online.

Bargaining Power of Supplier

The supplier powers have increased due to drop shipping. The individual can become a supplier simply by signing the agreement and selling the products. The logistics are managed by different companies. Thus suppliers tend to influence buyers by limiting their choices (Bennet, 2013).

Bargaining Power of Customers

The power of buyers is very high. They have more choices. The purchase decision is altered by strategies like loyalty programs and excellent services.

Threat of New Entrants

The e-commerce has made it difficult for new competition to enter the market. Though it is easier to pay little amount per month and become a supplier but it is hard to retain the business in tough competition.

Threat of Substitute Products 

The internet is best source to look at better options and competitors products. Threat of substitute is high in this case as buyers have wider alternatives. They can avail different brand names or payment methods. Thus customers tend to choose the cheapest products. Thus internet is the source of global economy. Labor, services and quality all are comparable before making the purchase decision (Bennet, 2013).

Need of IT Systems in Companies

Companies need IT systems implementation for several reasons. The reason can be to serve individual cause or it can aim to increase overall efficiency of the company. The company needs an Enterprise Resource Management (ERP) ...