A Feasibility Study of the Customer Relationship Management Application on Small and Medium Enterprises

Transcription

1 Journal Scientific and Technological Studies, 41(1), 53-63(2007) 53 A Feasibility Study Customer Relationship Management Application on Small and Medium Enterprises 1 Yichen Lin, 2 JrJung Lyu, 3 Hwan-Yann Su and 1 Yulan Hsing 1 Graduate Institute Technology Management, National University Tainan 2 Department Industrial and Information Management, National Cheng Kung University Department Asia-Pacific Industrial and Business Management, National University Kaohsiung 3 Abstract The traditional focus IT operations no longer meets challenges tomorrow s fast-changing business environment. Conducting business through electronic commerce, handling transactions over communications networks, continues to grow in a seemingly unabated fashion. In western countries, many companies quickly grow up in a short time because good Customer Relationship Management (CRM) system. Traditional enterprises such as steel companies are affected by economics desolate. This study has deep discussion for steel companies with a broader CRM strategy aimed at maximizing value firms. The main objective this paper is to develop a strategic CRM framework to find new opportunities to create customer value for Taiwanese small and mediums steel companies. This study sent questionnaires to Taiwanese small and mediums steel companies to understand ir customer-based perspective. Moreover, successful cases in western countries are reviewed to help Taiwanese companies build ir business from a new perspective. Analysis field study yielded three emergent mes: present and future marketing strategies in Taiwanese steel company; customer connection strategies; and CRM total suggestions. Finally, implications for practice and oretical-research development CRM are also provided. Key words: Customer relationship management, information technology, electronic commerce, customer prolio

2 54 Journal Scientific and Technological Studies, 41(1), 53-63(2007) 1. Introduction Recently, companies are turning to CRM to better understand customer wants and needs. The adoption CRM is being fuelled by a recognition that long-term relationships with customers are one most important assets companies providing improved pritability and competitive advantage. More than ever, enterprises are subjected to more quickly changing forces: globalization, deregulation, convergence industries, to name a few. CRM is a business strategy, not a specific stware or hardware. Instead, it aims to understand, anticipate and manage needs organizations current and potential customers (Brown, 2000). CRM approach has been used for many enterprises to maintain and furr create customers. Iron and steel is one most important industries in any nation, and specialty steels occupy a uniquely critical place in iron and steel industry. The quality life and level industrial development are directly related to availability specialty steels in many ways. Specialty steels are essential to many industries including motor vehicles, electrical and electronic equipment and parts, machinery, chemical equipment, energy production, aviation and aerospace and ors. While total amount specialty steels is somewhat limited, y are used in a wide variety forms and applications and involve very high levels technology. This study focuses on Taiwanese small and medium steel companies to see how y can improve relationship between companies and customers. Although this study takes Taiwanese small and medium steel companies as examples, it still can be collated by or enterprises. In order to get a holistic view customers and ir relationship to entire enterprise, this paper explored three interrelated objectives in following. (1) Provide a framework in making strategic customer. (2) Conduct a feasibility study CRM application on Taiwanese small and mediums steel companies. (3) Leverage customer knowledge and find new opportunities to create value for customers. 2. Theoretical background As business world quickly shifts from product focus to customer focus, most companies find that treating existing customers well will be good for pritable and sustainable revenue growth. However, companies are challenged to really satisfy customers in age electronic commerce. Customer relationship management is an important subject more than ever before. Brown (2000) defined CRM as key competitive strategy you need to stay focused on needs your customers and to integrate a customer-facing approach throughout your organization. The early stage CRM is to collect potential customers and keep customers. The middle stage CRM is to satisfy customers and establish loyalty. The current and future stage CRM must include customer behavior analysis and active service. Basically, CRM can help organizations establish long-lasting relationship with customers to improve pritability. The reasons why organizations need CRM are to make specific selling channel resources more productive; migrate transactions, customer relationships, and tasks to low-cost channels; get multiple sales and service channels to work more closely with demand chain partners; and better leverage market programs and resources. Based on customer segmentation, one-to-one marketing could be done through effective

3 A Feasibility Study Customer Relationship Management Application on Small and Medium Enterprises 55 CRM strategies. Effective and efficiency customer contact such as precise and quick response could help organizations implement CRM approach. Chatterjee (2000) emphasized that CRM is a discipline which focused on automating and improving business processes associated with managing customer relationships in area sales, management, customer service, and support. Srivastava, Shervani and Fahey (1999) developed a framework for understanding integration marketing with business processes and shareholder value. CRM market in Asia-Pacific has been quickly growing up in se years. In Taiwan, high technology enterprises such as Acer and Microst TWN had field service and sales force automation. Vrechopoulos (2004) suggested CRM process can be applied and related to components on an innovative EU funded business-to-business and business-to-consumer electronic commerce application, though mediation CRM methodology. Davis and Halligan (2002) have emphasized to extend brand by optimizing customer relationship. Government and some enterprises such as communication, finance and insurance companies have already built up call center. In general, call enter is undergoing, but lacks integrated CRM total solution. Curry and Curry (2000) have written a clear, step-by-step guide to priting from this exploding movement, with strategies that are aimed at small and medium-sized business owners who need CRM most. This can help Taiwanese small and medium enterprises have good examples to go on CRM strategies. Wayland and Cole (1997) have presented Value Compass model which can make explicit connection between what managers know about ir customers and how y can leverage that information to create customer value. In future, customers will increasingly seek to manage relationship mselves, using new technologies, and that companies need to prepare mselves for ir world. Lin and Su (2003) have revised value compass model from Wayland and Cole (1997) for strategic analysis CRM. Furrmore, Lin et al. (2006) have presented idea about knowledge-enabled for CRM. This paper extends paper Lin and Su (2003) to verify strategic analysis CRM for Taiwanese small and mediums steel companies. 3. Research Design The research structure is presented in Figure 1. This study has five stages for implementing CRM. First, since customer connection strategy is so important, customer knowledge management, customerconnecting technologies and customer economics in Taiwanese companies have to be reviewed. Second, based on value compass model, four dimensions relationships value (customer portfolio management, value proposition design, value-added role and reward and risk sharing) are identified. Third, taking Taiwanese small and mediums steel companies as examples, questionnaire is designed to understand Taiwan status for CRM strategies. Fourth, based on CRM experience from western countries, CRM strategies have been recommended for Taiwanese small and mediums steel companies. Fifth, different CRM demands lead to choose different CRM solutions to get CRM customerization. As shown in Figure 1, each part research structure is discussed in following.

4 are identified. Third, taking Taiwanese small and mediums steel companies as examples, questionnaire is designed to understand Taiwan status for CRM strategies. Fourth, based on CRM experience from western countries, CRM strategies have been recommended for Taiwanese small and mediums steel companies. Fifth, different CRM demands lead to choose different CRM solutions to get CRM customerization. As shown in Figure 1, each part research structure is discussed in following. 56 Journal Scientific and Technological Studies, 41(1), 53-63(2007) Customer Connection Strategy The Value Compass Model Questionnaire Design CRM Strategy Analysis Figure Figure 1: Research 1: Research structure structure CRM System Design (1) Customer (1) Customer connection connection strategy strategy In general, In general, companies companies that are good that at are managing good at customer managing relationships customer are relationships also good managing are also customer good knowledge; at managing using customer customer-connecting knowledge; technologies using customer-connecting and understanding customer technologies economics. and Arthur understanding Andersen (1999) customer identified economics. that customer Arthur knowledge Andersen management (1999) could identified help companies that assess customer ir knowledge management could help companies assess ir improvement. The CRM improvement. The CRM status for business will be determined by a combination customer knowledge; status for business will be determined by a combination customer knowledge; customer-connecting technologies and customer economics. customer-connecting technologies and customer economics. (2) The (2) value The compass value compass model model There There are four are dimensions four dimensions in value in compass value model compass which include model customer which portfolio include management; customer value portfolio proposition management; design; value-added proposition role and reward design; and value-added risk sharing. These role and four reward dimensions and risk help business sharing. identify These selection four dimensions and management help business customer identify relationships; selection business s and contribution management to its customers customer value chain; relationships; position business s company within contribution industry to value-added its customers chain and value basis chain; on which customers position and suppliers company interact to within create and industry share value. value-added Each company chain has to and decide what basis set on positions which is both customers desirable and attainable. suppliers interact to create and share value. Each company has (3) Questionnaire design This study designed a questionnaire which included three parts: part 1 collected basic information companies; part 2 found out situation customer knowledge; customer-connecting technologies and customer economics in companies and part 3 acquired companies desirable position on value compass model. Basically, this questionnaire aimed to discuss three questions in following. 6How do Taiwanese small and mediums steel companies consider ir customer connection strategies: 6What are current and future marketing strategies on value compass for Taiwanese small and mediums steel companies? 6Based on Taiwanese small and mediums steel companies, total solution CRM has been recommended. We sent questionnaire to 70 small and medium steel companies in Taiwan, usually addressed envelope to CEO. Our idea was that CEO will be able to realize ir customer connection and marketing strategies. (4) CRM strategy analysis There are many successful cases from western countries to implement CRM approach. These examples provide better strategies for companies to get CRM approach started. CRM strategy analysis can be carried out to get CRM total solution. (5) CRM system design

5 A Feasibility Study Customer Relationship Management Application on Small and Medium Enterprises 57 According to ARC s (1999) report, awareness ratio CRM vendors is shown as follows: IBM (17%), NCR (15%), ORACLE (13%), HP (10%), LUCENT (8%), MICEOSODT (8%), NORTEL (6%), SAS (5%), SYBASE (4%), Or (14%) [1]. CRM system design not only identifies demand computer stware and hardware but also enables consultant pression knowledge to make it successful. Consequently, this study identifies clear guideline for companies to build up CRM system. Moreover, CRM vendors also can be chosen to do CRM customerization. 4. Research Findings and Discussion This section deals with descriptive analysis questionnaire results. The questionnaires were sent to 70 small and medium steel companies in Taiwan. There were 27 responses from se 70 companies. While re were total 27 responses to 70 questionnaires, for a response rate 39 percent, only 23 returned questionnaires were suitable for use in this study. We now carry out analysis customer connection strategies and position on value compass. 4.1 Customer connection strategies Figure 2 shows how se Taiwanese small and mediums steel companies consider ir customer connection strategies. According to Figure 2, se companies have done 51% for customer knowledge; 81% for customer-connective technologies and 78% for customer economics. (1) Customer knowledge As shown in Figure 2, re are just half respondents who care about customer knowledge. Wayland and Cole (1997) have suggested how companies could execute and effective CRM process through planning; focusing; generating; codifying; sharing and leveraging. Since Taiwanese small and mediums steel companies have done 51% for customer knowledge, Wayland and Cole s suggestion might help m build up knowledge management system that captures information, creates knowledge, share and leverage knowledge. Some suggestions are identified in following. 6Building stock knowledge. The purposes this suggestion are to identify what companies already know about ir customers and to build speculative knowledge to support longer-range planning. 6Generating knowledge at right level and depth. It is necessary to identify level at which companies have to generate knowledge and to decide depth knowledge companies have. 6Generating right kind knowledge. It is important to generate right kind knowledge through understanding what customers want via dialogue; observing how customers use products and services and designing analysis model to predict likely outcomes. 6Leveraging knowledge. Many companies may just realize who customers are and what y want, but customer knowledge has to be more extensive to leverage. 6Application knowledge management model. Arthur Anderson (1999) presented a knowledge management model that can help companies to keep knowledge between companies and customers. (2) Customer-connective technologies

6 customers are and what y want, but customer knowledge has to be more extensive to leverage. Application knowledge management model. Arthur Anderson (1999) presented a knowledge management model that can help companies to keep knowledge between companies and customers. (2) Customer-connective technologies 58 Journal Scientific and Technological Studies, 41(1), 53-63(2007) As shown in Figure 2, strategy customer-connective technologies has highest proportion (81%) than or two strategies. Customer-connective As shown technologies, in Figure 2, physical strategy or electronic customer-connective links between technologies customers has and highest companies, proportion (81%) than can support or two longer-range strategies. Customer-connective planning. Basically, technologies, technologies physical could or be electronic applied links between customers customer and companies, relationship can to support increase longer-range value planning. relationship. Basically, Some technologies suggestions could be applied in are presented customer relationship in following. to increase value relationship. Some suggestions are presented in following. 51% Figure Figure 2: 2: Customer connection strategies 6Identifying Identifying main purposes. main The main purposes. The in investing main in purposes customer-connective in investing technologies in have to be customer-connective identified maximize technologies value exchange have with to be customer identified to maximize 6Building value up a feedback exchange loop. with The feedback customer loop can deliver right message to particular customer and allow Building marketer up to a build feedback priles loop. customers The feedback over time. loop can deliver right 6Setting message new database to particular systems and customer agent technologies. and allow These technologies marketer allow to build companies priles to tailor World Wide customers Web sites over to individual time. customers. Setting new database systems and agent technologies. These technologies 6Conducting on-line relationship. It is important to create mutual value and strengn bounds to allow companies to tailor World Wide Web sites to individual customers. engage in E-commerce for extending market share. Conducting on-line relationship. It is important to create mutual value and (3) Customer economics strengn bounds to engage in E-commerce for extending market share. Based on Figure 2, Taiwanese small and medium steel companies have done 78% for customer economics. Customer economics means analysis value companies in terms number and quality ir relationships. Some suggestions are identified in following. 6Estimating value customer relationships. The volume, margin and duration model and probability--purchase model have to be used to estimate value customer relationships. 6Understanding distribution customer relationship value. It is important to gain insights customer relationships through understanding distribution customer relationship value. 6Managing Customer portfolio for maximum growth. Based on customer value and responsiveness, business has to manage customer portfolio for maximum growth. 4.2 The value compass The current and future positions for Taiwanese small and medium steel companies on value compass have been shown in Table 1 and Table 2. Furrmore, some successful cases from western countries could be good examples to help Taiwanese small and medium steel companies identify CRM

7 (2) Value proposition design As shown in Figure 5 and 6, it can be seen that about 26 percent 23 respondents currently choose core product level; 44 percent 23 respondents choose extended fer level and 30 percent 23 respondents choose total solution level. In future, 26 percent 23 respondents choose core product level, 35 percent 23 respondents choose extended fer level A Feasibility Study Customer Relationship Management Application on Small and Medium Enterprises 59 strategies. According to four dimensions value compass, a set positions for Taiwanese small and medium steel companies are analyzed in following. Table 1: The current and future positions on value compass model Position Situation Market Group Individual CoreProduct Extended Offer Total Solution Present Future Table 2: The current and future positions on value compass model Position Situation Product Manager Process Manager Network Manager Neutral Performance Outcome Present Future (1) Customer portfolio management As shown in Figure 3 and 4, it can be seen that about 44 percent 23 respondents currently choose market level; 26 percent 23 respondents choose group level and 30 percent 23 respondents choose individual level. In future, 52 percent 23 respondents choose market level, 26 percent 23 respondents choose group level and 22 percent 23 respondents choose individual level. Consequently, current and future positions that 23 respondents choose are market level. Clearly, markets broadly, making few distinctions among customers for ir products. larger proportions Learning from respondents experience choose market level western in future countries, and some smaller suggestions respondents are choose individual presented level. in It is proved following. that se companies still approach ir markets broadly, making few distinctions among Attracting customers for largest ir products. share Learning company s from experience potential customer western countries, base. some suggestions are presented Offering in a moderate following. level product variety might be more effective than 6Attracting fragmenting largest share customer company s portfolio. potential customer base. 6Offering Achieving a moderate level most product efficient variety might levels be more operation effective when than fragmenting producing a customer fairly portfolio. uniform product in large volumes, despite promise and recent 6Achieving advances most in efficient flexible levels manufacturing. operation when producing a fairly uniform product in large volumes, Relying despite on promise brand image and recent and customer advances in self-selection. flexible manufacturing. 6Relying on Applying brand image and strategy customer that self-selection. right market is targeted with right product and image. 6Applying strategy that right market is targeted with right product and image. Not trying to distinguish and manage relationships with several different 6Not trying to distinguish and manage relationships with several different customer groups. customer groups. Figure Figure 3: 3: Customer portfolio management (current) Figure 4: 4: Customer portfolio management (future)

8 60 Journal Scientific and Technological Studies, 41(1), 53-63(2007) (2) Value proposition design As shown in Figure 5 and 6, it can be seen that about 26 percent 23 respondents currently choose core product level; 44 percent 23 respondents choose extended fer level and 30 percent 23 respondents choose total solution level. In future, 26 percent 23 respondents choose core product level, 35 percent 23 respondents choose extended fer level and 39 percent 23 respondents choose total solution level. Consequently, strategy that 23 respondents choose have moved from extended fer level (current) to total solution level (future). Clearly, larger proportions respondents choose total solution level in future and smaller propositions respondents choose extended fer level. In general, business can better assess value it is creating for customers and can identify opportunities to increase value through realizing customers value chain and total experience. In future, Taiwanese small and medium steel companies most likely choose all three level value proposition design. Some suggestions are presented in following. 6Using information and knowledge to enhance value proposition. 6Enhancing core product. 6Understanding buyer s criteria for original component value chain. 6Appreciating customer s value criteria and decision-making process for or factors in his value chain or experience. 6Getting buyer aware more information about seller. 6Extending range its fer Figure Figure 5: Value 5: Value proposition proposition design design (current) (current) Figure 6: 6: Value proposition design (future) (3) Value-added (3) Value-added role role As shown As shown in Figure in 7 Figure and 8, 7 it can and be 8, seen it can that be about seen 52 that percent about 5223 percent respondents currently 23 choose product respondents manager currently level; 48 percent choose product 23 respondents manager choose level; process 48 manager percent level and none respondents respondents choose choose network process manager manager level. In level future, and 43 percent none respondents respondents choose product manager choose level, network 35 percent manager 23 level. respondents In choose future, process 43 percent manager level and respondents percent choose product manager level, 35 percent 23 respondents choose process 23 respondents choose network manager level. Consequently, current and future positions that 23 manager level and 22 percent 23 respondents choose network manager respondents choose are product manager level. Clearly, smaller proportion respondents choose level. Consequently, current and future positions that 23 respondents product and process manager level in future. In particular, re is not any company that currently choose are product manager level. Clearly, smaller proportion chooses network respondents manager choose level. However, product re and process are 22% manager respondents level in who future. will want In to particular, get network manager re level. Based is not on any experience company from that western currently countries, chooses some suggestions network are manager presented level. in following. However, re are 22% respondents who will want to get network 6Increasing manager application level. Based information on and technology experience to forge from new relationships western countries, and partnerships. some 6Adding suggestions value to are company s presented core in product. following. 6Assuming Increasing responsibility application for some portion information buyer s production and technology function or value to forge chain. new 6Providing relationships both buyers and sellers partnerships. a form connection more efficient than eir can achieve by Adding value to company s core product. Assuming responsibility for some portion buyer s production function or value chain. Providing both buyers and sellers a form connection more efficient than eir can achieve by operating independently. Extracting a portion buyer s consumer surplus or seller s

9 suggestions are presented in following. Increasing application information and technology to forge new relationships and partnerships. Adding value to company s core product. Assuming responsibility for some portion buyer s production A Feasibility function Study or Customer value chain. Relationship Management Application on Small and Medium Enterprises 61 Providing both buyers and sellers a form connection more efficient than operating eir independently. can achieve by operating independently. Extracting a portion buyer s consumer surplus or seller s 6Extracting a portion buyer s consumer surplus or seller s producers surplus. producers surplus. 6Adding capacity exists in seller s industry. Adding capacity exists in seller s industry. 6Enjoying a knowledge-based advantage over buyer. Enjoying a knowledge-based advantage over buyer. 6Improving Improving operating efficiency operating and efficiency expanding and pressional expanding capacity. pressional capacity. Figure 7: Figure Value-added 7: Value-added role (current) role (current) Figure Figure 8: Value-added 8: Value-added role (future) role (future) 4.3 Reward and risk sharing 4.3 Reward and risk sharing As shown in Figure 9 and 10, it can be seen that about 56 percent 23 respondents As shown in Figure currently 9 and choose 10, it can neutral be seen level; that 35 about percent 56 percent respondents choose currently choose respondents performance neutral level; choose level 35 percent and performance 9 percent 23 respondents level and 23 respondents 39 choose percent performance choose level 23 outcome respondents and 9 percent level. choose In 23 respondents outcome future, 44 choose level. percent outcome Consequently, level. 23 In respondents future, current 44 and choose percent future neutral positions 23 level, respondents that 17 percent choose 23 respondents neutral level, percent choose are neutral 23 respondents level. choose Clearly, performance larger level proportions and 39 percent respondents 23 choose outcome outcome level. level Consequently, in future current and and future smaller positions propositions that 23 respondents respondents choose are choose neutral level. neutral Clearly, and larger performance proportions level. respondents It means choose that outcome se companies level in future want and a mutual smaller propositions investment by respondents both choose buyer neutral and seller and performance in anticipation level. It means a future that payf. se companies Based on want a mutual experience investment by from both western buyer and countries, seller in anticipation some suggestions a future payf. are Based presented on experience in following. from western countries, some suggestions are presented in following. (1) Defining clearly what is meant by value created in a relationship, what (1) Defining clearly what is meant by value created in a relationship, what constitutes shares constitutes shares value received by buyer and seller and how shares value can received be changed. by buyer and seller and how shares can be changed. (2) Offering (2) Offering several several manufacturing manufacturing and engineering and engineering companies companies opportunity to share opportunity in revenue to flow. share in revenue flow. Figure 9: 9: Reward and risk sharing (current) Figure 10: 10: Reward and and risk risk sharing (future) (future) 4.4 CRM system design 4.4 CRM system design As mentioned earlier, re are many vendors who provide CRM solution. The answer As mentioned to how earlier, to choose re are CRM many system vendors who will provide depend CRM on solution. original The answer MIS to system how to choose that CRM exists system in will a company. depend on Through original MIS analysis system that CRM exists strategies, in a company. Through demand analysis CRM system could be identified and furrmore customerization could be done. In CRM strategies, demand CRM system could be identified and furrmore customerization could be beginning building up CRM system, it costs a lot money that may keep Taiwanese small and medium steel companies away from it. However, minimum CRM could be done to show up a blue-picture for future. 5. Conclusion Customer relationship management is neir a concept nor a project. Actually, it

10 62 Journal Scientific and Technological Studies, 41(1), 53-63(2007) done. In beginning building up CRM system, it costs a lot money that may keep Taiwanese small and medium steel companies away from it. However, minimum CRM could be done to show up a bluepicture for future. 5. Conclusion Customer relationship management is neir a concept nor a project. Actually, it is a business strategy to help companies understand and anticipate need an enterprise s current and potential customers. Some points are concluded in following. (1) There are just half respondents who care about customer knowledge. Most likely, se companies do not realize importance customer knowledge and even don t know how it works. However, it is time for awareness customer knowledge. In future, customer relationship management toger with knowledge management will help companies accumulate customer knowledge and furrmore build up good relationships between companies and customers. (2) Although respondents have higher proportion for customer-connective technologies, it is important to create mutual value and strengn bounds to engage in E-commerce for extending market share. (3) The respondents have shown up that y understanding distribution customer relationship value because higher proportion for customer economics. However, companies can furrmore maximize ir rate pritable growth by deploying ir resources in proportion to value relationships. (4) Basically, Taiwanese small and medium steel companies want to stay where y are on value compass. But strategy value proposition design has been changed from extended fer level to total solution level. Consequently, three components a total solution strategy can be considered: leverageable competencies, reputation, and identification with customer base. (5) None respondents has built up CRM system. Although it is still a long way to go to get CRM system ready, support from government will be necessary. (6) Taiwanese small and medium steel companies lack in strategic league and competitive ability. They might think something more to upgrade to a new perspective for demand global E-commerce. Recently, many Taiwanese companies have built up Enterprise Resource Planning (ERP) system and furrmore identify demands Supply Chain Management (SCM). New stage will go for building up Customer Relationship Management (CRM) system. This study collected information about CRM and take Taiwanese small and medium steel companies as examples. However, this new research can be collated by or enterprises to enhance enterprise s competitive strength. In this changeable and competitive world, it is necessary to develop a e-business to save cost and make business upgrade to a new perspective. Tiwana (2000) presented a real-world guide to essential principles Knowledge Management (KM). This book shows how KM and CRM technologies work, and how y impact existing processes and IT infrastructure. Lin (2000) presented a systemic integrated communications model that might help enterprises identify issue CRM and furrmore tackle se issues. Su and Lin (2006) proposed framework corporate knowledge management for enhancing knowledge-based service quality franchise stores. This study indicated Knowledge management can provide businesses with many competitive advantages including average level knowledge enhancement, service quality improvement, cost and time reduction,

11 A Feasibility Study Customer Relationship Management Application on Small and Medium Enterprises 63 strengned relationships among colleagues and quicker knowledge creation. So CRM toger with KM could be furr studied to leverage enterprise s strengths, maximize employees efforts and deepen customer loyalty. Acknowledgement Supported by National Scientific Council (Taiwan) under grant H References ARC, (1999). Integrating Strategy. Technology & Process to Implement e-customer Relationship Management. ebusiness Executive Report, 3, pp.13. Arthur Andersen Business Consulting, (1999) Knowledge Management: Jissen No Tame No Best Practice. Tokyo: Toyo Keizai. Brown, S. A. (2000). Customer Relationship Management: A Strategic Imperative in World e-business. Canada: John Wiley & Sons. Chatterjee, J. (2000). Managing customer relationships in e-business economy. Journal Scientific & Industrial Research, Aug-Sep, Curry, J. and Curry, A. (2000). The Customer Marketing Method. New York: The Free Press. Davis, S. and Halligan, C. (2002). Extending your brand by optimizing your customer relationship. Journal Consumer Marketing, 19(1), Lin, Y. (2000/2001). Assessing applicability integrated communications: a systemic view. Journal Integrated Communications, Lin, Y. and Su, H. (2003). Strategic analysis Customer Relationship Management - a field study on hotel enterprises. Total Quality Management, 14(6), Lin, Y., Su, H. and Chien, S. (2006). A knowledge-enabled procedure for Customer Relationship Management. Industrial Marketing Management, 35(4), Srivastava, R. K., Shervani, T. A. and Fahey, L. (1999). Marketing, business processes, and shareholder value: An organizationally embedded view marketing activities and discipline marketing. Journal Marketing, 63, Su, H. and Lin, Y. (2006). Enhancing knowledge-based service quality: a knowledge management perspective. The Service Industries Journal, 26(7), Tiwana, A. (2000). The Essential Guide to Knowledge Management, e-business and CRM Applications. Upper Saddle River: Prentice-Hall. Vrechopoulos, A. (2004). Mass customisation challenges in Internet retailing through information management. International Journal Information Management, 24(1), Wayland, R. and Cole, P. (1997). Customer Connections: New Strategies for Growth, Boston: Harvard Business School Press. Submission Date: 2006/11/15 Revision Date: 2007/1/18 Acceptance Date:2007/3/8