A WEB-BASED SYSTEM APPLYING THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM) CONCEPTS ON CUSTOMER SERVICES AND SUPPORT (CSS)
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1 A WEB-BASED SYSTEM APPLYING THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM) CONCEPTS ON CUSTOMER SERVICES AND SUPPORT (CSS) IN INSTITUTE OF RESEARCH, DEVELOPMENT AND COMMERCIALIZATION (IRDC), UiTM SHAH ALAM A project paper submitted to FTMSK, UiTM Shah Alam In partial fulfillment of requirement for the Bachelor of Science (Hons) Information Technology By Norzana Binti Basrom (Basron) UNIVERSITITEKNOLOGI MARA SHAH ALAM NOVEMBER 2005
2 A WEB-BASED SYSTEM APPLYING THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM) CONCEPTS ON CUSTOMER SERVICES AND SUPPORT (CSS) IN INSTITUTE OF RESEARCH, DEVELOPMENT AND COMMERCIALIZATION (IRDC), UiTM SHAH ALAM Approved by the Examining Committee Puan Salwani Binti Jaafar Project Supervisor Puan Rogayah Binti Abdul Majid Examiner UNIVERSITI TEKNOLOGI MARA SHAH ALAM NOVEMBER 2005
3 DECLARATION I certify that this thesis and the research to which it refers are the product of my own work and that any ideas or quotation from the work of other people, published or otherwise are fully acknowledged in accordance with the standard referring practices of the discipline NOVEMBER 2005 NORZANA BINTIBASROM (BASRON)
4 ACKNOWLEDGEMENT In The Name of Allah, Most Gracious, Most Merciful To finish this project needs support from many people. First and foremost, I would like to thank God for giving me strength and high ability to do this project. Secondly, my heartfelt gratitude and appreciation goes to my supervisor, Puan Salwani bt Jaafar and also Puan Nor Hapiza bt Mohd Ariffin for her assistance, opinions and moral support. Besides, they always guide me in doing the project from the beginning until the end. Their helps will always be remembered. Special thanks to the Head of Research (Social Science and Management) person, Assoc. Prof Madya Dr. Rosmimah Mohd Roslin and Pn. Hamidah Mat, as a Registrar Assistant in the IRDC centre for their collaboration and contribution immensely towards the completion of my project. Also, to En Noor Husairi bin Hasyim as a system analyst in the Centre. My special dedicated thanks to my beloved parent because with their moral support, material support, and everything they have done for me to complete this project. Last but not least, a personal thanks to my dearest friends for being so understanding and encouraging me during the project period. Thanks to all of you. Thank you. IV
5 ABSTRACT There are several problems occur when applying the traditional method of delivering the information about the research project status to the researchers such as the delay of time. The researchers consist of UiTM academics. The objectives of this project are to identify the current status of customer management in IRDC Centre, UiTM Shah Alam, to identify the implementation of CRM approach in the context of customer services and supports in IRDC Centre, UiTM Shah Alam and to build a w^eb-based system using the concept of CRM for the customer services and supports in IRDC Centre, UiTM Shah Alam. The methods used to collect the primary data are the interview^ sessions and distributing questionnaires. The samples are the IRDC staffs and about half of them are involved. All data gathered are manipulated by using graphs, charts and tables. The system is developed using the ASP.NET application in Visual Basic language and involves use of client-server concept. Microsoft SQL Server 2000 is used as the database server. The System Development Life Cycle (SDLC)AVaterfall Model is the methodology of system development used in this project. From the finding, the researcher has identified that the Centre is using traditional or manual process (by using phone and letters) in servicing its customer such as sending the notification of his/her research project status and approved allocation of budget for each project, and the centre is not yet fully implements the CRM concept in all of it processes. The significance of the system is to enable the IRDC centre to render, perform and produce better services or facilities to its customers.
6 TABLE OF CONTENTS TITLE PAGE APPROVAL DECLARATION ACKNOWLEDGEMENT ABSTRACT LIST OF TABLES LIST OF FIGURES iii iv v x xi CHAPTER 1 INTRODUCTION 1.0 Introduction Problem Description Objective of the Project Research Questions Significance of the Project Scope of the Project Research Approach and Methodology Limitation of the Project Thesis Overview 8 VI
7 CHAPTER 2 LITERATURE REVIEW 2.0 Introduction The Definition of Pertinent Terminology The CRM Implementation Model The CRM Life Cycle The Strengths and Weaknesses of CRM Application 22 CHAPTERS RESEARCH METHODOLOGY 3.0 Introduction Method of Data Collection Methodology and Research Approach Summary 40 CHAPTER 4 SYSTEM ANALYSIS AND DESIGN 4.0 Introduction Data and Architecture Design Data Dictionary Interface Design Output Design Summary 59 vu
8 CHAPTER 5 IMPLEMENTATION AND TESTING 5.0 Introduction System Requirement Testing Summary 70 CHAPTER 6 RESULT AND FINDINGS 6.0 Introduction Data Analysis Web-based System Summary 92 CHAPTER 7 CONCLUSION AND RECOMMENDATIONS 7.0 Introduction Conclusion Recommendation Summary 96 REFERENCES 97 vui
9 APPENDICES 102 Appendix A - Interview Question Appendix B - Questionnaire Appendix C - Workflow of E-Submission - System Overview Appendix D - Example of Workflow Appendix E - Gantt chart Appendix F -System Interface BIOGRAPHY IX
10 LIST OF TABLES Table Page 3.1 List of Interviewee Administrator File Researcher File Project Status File Research Project File Research Assistant File Agreement File Role File Company Profile The Percentage of Centre System (An Existing System) Analysis Data from Interview Session 89
11 LIST OF FIGURES Figure Page 2.1 Customer Relationship Management The CRM Implementation Model CRM Strategy Drives Structure and Technology The CRM Lifecycle CRM Pyramid The Basic Model of Customer Services and Supports System Development Life CycleAVaterfall Model Methodology and Research Approach Diagram The Entity Relationship Diagram (ERD) The Conceptual Diagram The Context Diagram The Flowchart The Main Functions in the System The Sub Fimctions for Main Function in the System The Main Fimctions in the Administrator Function The Sub Functions for Main Function in the Administrator Function Login Page Interface Add and Edit Sub Function Interface List View Sub Function Interface The Design of Ou^ut Interface for View Research Project Status Function59 XI
12 Figure Page 5.1 The Main Interface that Can Be Accessed by Others (UiTM Lecturers) The Main Interface that Can Be Accessed by Admin (Centre Staffs) Example oftesting for Input Data Format Example oftesting for Incomplete Data Example of Testing for Blank Field Example oftesting for Data or Record that Are Not Exist in the Database (In Login Process) Example of Testing for Data or Record that Are Not Exist in the Database (In Function Process) Example of "Success" Message Exampleof "Data already in the database" Message The Percentage of Knowledge about CRM among IRDC Centre Staffs The Percentage of Ways of Respondent's Knows about CRM ThePercentageof Awareness Level of CRM ThePercentageofCurrent Applications Apply the CRM Concept The Percentage of Importance of CRM to Be Implemented The Percentage of Tools Used in the Existing System The Percentage of Constraints Faced in Managing Customers The Percentage ofusefulness of CRM Concept The Percentage of Types of Computer Application Used ThePercentageof Ways of Handling Customer Services 85 Xll
13 CHAPTER ONE INTRODUCTION 1.0 INTRODUCTION Technological development has led to the gradual installation of various tools worldwide. DOS- or Unix-based product is the first generation of Customer Relationship Management (CRM) tools that appears in the late of 1980s. In the past several years, it became a most promising, compelling and confusing concept. According to unpublished articles by Norul Akmal Mohd Yusof (2004), CRM includes the detailed understanding of customers, how to interact with them, how to make processes more efficient and how to satisfy and support the customers with products and services by bring in together the business strategy, processes and applications, IT infrastructure, supporting technologies and platform. Thus, CRM can be concluded as putting the high priority of customers in businesses by organizing the ways to service them. Nowadays, the existing of CRM approach has gained recognition again and the acceptance of it becomes wider. Most of organization or company has realized that long-term relationships with the customers are one of the most important assets for them. Thus, they need to develop the information-enabled systems to achieve the 1
14 'customer ownership'. The successful in business is determined by how well they keep the relationship with their customers. The CRM focuses more on enhancing the organization's or company's abilities to understand the customer's current, past and future needs. The CRM goal is to improve the customer's experience of how they interact with the organization or company. Successfiil customer ovraership will create competitive advantage and results in improved customer retention and profitability for the company. According to the IRDC web site, the Institute of Research, Development and Commercialization (IRDC) Centre is one of the centres in UiTM, Shah Alam that is liable to coordinate all research, development and commercialization activities in the university. The IRDC Centre supports the university's academic community through services rendered in facilitating their research, development and commercialization activities. Thus, the main customer for IRDC Centre is the lecturers that are doing research under their control.
15 1.1 PROBLEM DESCRIPTION As stated above, one of the main functions of IRDC Centre is to provide and make the activities of research, development and commercialization becomes smooth. The researchers are the university's lecturers. The ability to communicate and distribute information in effective ways is the most central elements in today's rapidly changing environment. Thus, the IRDC Centre wants to deliver related information immediately and reliably to the researchers. That means no misunderstanding, miscommunication or any information goes wrong. The idea to develop this project arises when researcher realized that the Centre is still using a traditional approach in order to deliver the information about the research project status to the lecturers. This manual process is ineffective because using telephone calls, lecturers periodically have to make phone calls to check latest information of their research project status. In addition, sometimes the service provided does not satisfy the customer's needs because of delayed and eventually it will demotivate them. For example, when the staff that the lecturers are deals with is on leave. Currently, the Centre has its own web portal but there is no function in getting the latest research project status. Therefore, the researcher attempts to develop webbased system that enhances the customer services and supports system in the Centre by applying the CRM approach. Besides, the researcher will also identify the current
16 status of customer management and implementation of CRM approach in the context of customer services and supports in the Centre. Although using the Internet in the peak hours can sometimes look frustrating but it is inexpensive and cost effective compared to making phone calls repeatedly. Researcher hopes that with the web-based system, it will be able to deliver latest information of the research project status directly to lecturers while the administrators have the full control of the information. 1.2 OBJECTIVE OF THE PROJECT The project seeks to fulfill the following objectives: 1. To identify the current status of customer management in IRDC Centre, UiTMShahAlam 2. To identify the implementation of CRM approach in the context of customer services and supports in IRDC Centre, UiTM Shah Alam 3. To build a web-based system using the concept of CRM for the customer services and supports in IRDC Centre, UiTM Shah Alam
17 1.3 RESEARCH QUESTIONS Research questions work as a guideline for the researcher in doing the project. Information searched by researcher is based on the three research questions, which are: What is the current status of customer management in the IRDC Centre? Does the IRDC Centre apply the CRM approach? How does the implementation of CRM approach in the context of customer services and support? 1.4 SIGNIFICANCE OF THE PROJECT The significance of the project is to enable the IRDC Centre to render, perform and produce better services and facilities to the customers. Besides, the researcher can gain knowledge about the Customer Relationship Management (CRM) through the project. Other than that, the researcher can identify and know the current status of customer management in the IRDC Centre. The researcher also can identify the implementation of CRM approach in the context of customer services and supports in the IRDC Centre. Thus, the staffs in the Centre can review the current status and consequently, the existing weaknesses in the context of customer services and support will be eliminated.
18 By using the system, lecturers get the accurate and latest updated information regarding to their research project under IRDC Centre. At the same time, the system facilitates in disseminating the Centre's information. Finally, the services provided by the Centre will fulfill the customers' satisfactions. 1.5 SCOPE OF THE PROJECT The scopes of this project are as follows: 1. The project proposed for IRDC management staffs and lecturers only. 2. The development focused on web page design, language and the development of CRM concept: a) Development of the web-based system, using Microsoft Visual Studio.NET 2003 as a platform to create the interfaces and using ASP.NET as a language to code the program, b) Development of database as data storage using Microsoft SQL Server 2000 and, c) Integration of the web-based system with database and CRM concept in the context of customer services and supports (CSS) only. 3. The project uses the client-server concept. 4. The development concerns with customer services and supports in IRDC Centre, UiTM Shah Alam only. Thus, researcher follows the basic model of CRM for customer services and supports.
19 1.6 RESEARCH APPROACH AND METHODOLOGY In this study, data are collected based on primary and secondary data. Primary data were collected through interview sessions from individuals who are in-charge of the customers in the Centre and distributed questionnaire to the IRDC staff. Data was also obtained from secondary sources, such as from IRDC web portal, books, journals, Internet (web sites) and past researches. The researcher uses System Development Life Cycle (Waterfall Model) approach as the methodology of developing the project which includes planning phase, analyzing phase, designing phase, implementing phase, operating and supporting phase. For the purpose of the project, there is no specific data analysis software is used unless the Microsoft Excel 2003 since a simple analysis wants to be carried out. The researcher also identifies the current system of the Centre and relates it to the CRM system.
20 1.7 LIMITATION OF THE PROJECT hi conducting the project, researcher has encountered some difficumes that might influence the system performance, which are: 1. Time Constraint - A lot of time spent in collecting the primary data due to the postponed date of appointment. Thus, limits the period given to develop the project. 2. Lack of Input Data - The researcher is not provided with input data during the interview sessions unless the details about the organization and overview of current system. In addition, certain information are considered as confidential. 1.8 THESIS OVERVIEW The outline documentation of this project is divided into seven chapters which are as follow: Chapter 1 discusses on the introduction of the topic generally. This chapter gives an overview of the study including the problem description, objective of the project, research questions, significance of the project, scope of the project, research approach and methodology and limitation of the project. The point that stated in this chapter can be use as a guideline throughout the project.
21 Chapter 2 discusses on the literature review related to the project in order to gain insight knowledge about the Customer Relationship Management (CRM). Chapter 3 discusses on the research methodology applied in the project briefly. Chapter 4 discusses on the design to develop the system including both the logical and physical design. Various diagrams have been use in order to give clear view of each process involved in the system. Chapter 5 discusses on the implementation and testing of the system that were carried out to achieve the objective of the project. Chapter 6 discusses on the result and findings of the project. This chapter also discusses on the strengths and weaknesses identified in the project. Chapter 7 discusses on the conclusion of the project as well as the recommendations that can be carried out in the near fixture.
22 CHAPTER 2 LITERATURE REVIEW 2.0 INTRODUCTION Graig Conway, President and CEO PeopleSoft Inc. said that any businesses are impossible to control the speed of technology, economy and competitors. However, it is possible to control the way they manage the interactions with their customers. Nowadays, the latest strategy in large and/or small businesses is transforming the enterprises from product-centric to customer-centric. In the past, most of the enterprises are merely concentrating more on their products rather than their customers. From time to time, many of them begin to realize that the loyal customers are an asset for them. It is because to create new customers are costly. They need to spend their money on advertising, marketing, learning on what the customer wants and teaching them how best to do business with and so on. In addition, in the world of business plus the existence of the Internet age, there are many types of rival that the companies must consider. According to Rich Tehrani (2000), the effort to attract, retain and keep the customers is actually a kind of war. The most common major problem with every 10
23 implementation of technology is many companies are focusing on the individual technologies rather than the entire suite of interactions. In addition, acquiring a new customer is estimated 10 to 20 times more expensive rather than retaining an existing one. Larry Fromm, CELLIT'S Director of New Business Development said that in the global era of competition, each business is competing with each other to acquire and retain their customers. There are two critical elements of managing the customer identified which are the customer context and customer interaction. Generally, the customer context tracks the customer relationship with the company and enables more efficient and effective customer service at every customer touch point. It can be managed and accomplished through the CRM software. The other element is managing the customer interaction. The effective management of customer interaction will ensure that customers get a consistent level of services for each kind of interactions. According to unpublished articles by Norul Akmal Mohd Yusof (2004), the first surf of CRM solutions came in the late 1980s and early 1990s with DOS- or Unix-based product provided by Clarify (currently owned by Nortel Networks Corp.), Onyx Software, Oracle, Vantine (owned by PeopleSoft) and Siebel Systems. It emphasizes automating and standardizing the internal processes which relate to acquiring, servicing and keeping customers. At that moment, the product is very expensive and not easy to maintain. 11
24 Then, the CRM solutions began to grow gradually. In the mid of 1990s, the Web emerged but some vendors are slow to respond to the Internet. From time to time, people realize that the Internet is the place where they can get everything from it. Thus, the organizations begin to grow their business by using Internet. The ecrm exist around year As a conclusion. Customer Relationship Management (CRM) is a broad term that relates with the way the organization manages the business interaction by combining the business processes and technologies to their customers. 2.1 THE DEFINITION OF PERTINENT TERMINOLOGY Customer According to Advanced English Dictionary (2000), customer is a person or an organization that buy something from a store or business Relationship The relationship is the way in which two people, groups or countries behave towards each other or deal with each other. 12
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