Case Study 2. Q1: Small businesses and start up companies are most likely to adopt cloud-based CRM

Transcription

1 Tisha Smith Smith 1 MIS October 21, 2014 Case Study 2 Q1: Small businesses and start up companies are most likely to adopt cloud-based CRM software services. Companies such as, Salesforce.com the undisputed global leader in cloudbased customer relationship management (CRM) systems (Laudon, 360) can offer these small businesses an on demand model. A small business, such as, Fireclay Tile can utilize cloudbased CRM systems, without using much capital to purchase expensive hardware and software to establish a corporate CRM system, can have access to CRM systems for a fraction of the cost and very quickly (Laudon, 360). However, larger companies are also finding the benefits of using cloud-based CRM systems. Companies like Dr Pepper Snapple Group use cloud-based CRM systems to replace out of date software. Hotel chains, for example, GRT Hotels & Resorts located in South India, use these systems to create a centralized CRM system for all locations to share (Laudon, 360). Streaming companies have also gone to cloud-based CRM systems. Netflix, one of the leading video streaming companies, have gone to Amazon s AWS cloud service to manage their services. In 2007, Netflix realized they had a massive need for bandwidth and computing capacity (Vitus). AWS could provide what Netflix needed to keep customers happy for a much smaller cost than continually upgrading their own systems. Companies that have a rapidly changing needs also may adopt cloud-based CRM systems. Gaming company Zynga uses AWS to launch new games. New games are hard to predict popularity of the game. Because of this uncertainty, Zynga does not know how much storage and computing power is needed. The amount is rapidly changing. They utilize AWS

2 Smith 2 until the amount of users peaks. Zynga then converts the game to their own system. Zynga continues to use AWS when they have a need for additional capacity (Vitus). Companies that already have a large investment in IT infrastructure may not benefit from converting to cloud-based systems. Businesses that have CRM systems in place that are working, may find that switching to cloud-based are more trouble than it is worth (Laudon, 205). Also, companies that require high levels of security, such as banking and healthcare, may need to utilize in house systems. In addition, companies that wish to have full control over the business decisions and maintenance of their programs may not be well suited for cloud-based systems (Beuder). Q2: The advantages of cloud-based CRM computing are cost, flexibility, accessibility, real-time information, productivity, and better customer information. A huge advantage of cloud-based systems is cost. Companies no longer have the need to purchase expensive hardware and software to reap the same benefits. Cloud-based systems are generally a pay as you go service. Salesforce.com ranges from $15-$250 per month. Oracle starts at $70 per month, and SugarCRM ranges from $30-$100 per month (Laudon, ). These fees save businesses extensive amounts of money in start up costs. There is also money saving advantages in IT labor and maintenance. The labor and maintenance of the cloud-based systems now falls on the cloud company and not the company using its services. The flexibility of the cloud gives businesses the advantage of increasing or decreasing computing needs very quickly. If there is a spike in computing needs, the company does not need to determine if their own system can handle it, and if they need to upgrade. The cloud will handle it for them. The flexibility also allows the end user to easily customize and personalize as they choose. The company can choose which of the cloud services would best suit their needs.

3 Smith 3 Accessibility and real time information are also large advantages of the cloud-based CRM systems. Business professionals can now access real time information from anywhere, not just in the office, at anytime or day. Businesses with branches in different time zones or different countries can now have access to up to date information and share ideas and knowledge from wherever they are located. Productivity can increase using cloud-based CRM systems. Business professionals no longer have to be located in the office to access information from the servers. Employees can now access customer information while meeting with the customer, and gain feedback from the customer to improve the customers experience. It also allows employees the opportunity to chase down real time leads without returning to the office to get those leads. Cloud-based CRM systems also allows for better more up to date customer information. By utilizing the cloud, companies can have access to customer information, feedback, and help to determine what customers want very fast. It will also help a company to find new leads. All of this will help a business to create a better customer experience, and in turn, happier customers (Abrar). The two main disadvantages of cloud-based systems are security and reliability. Security is a major disadvantage. A company that utilizes the cloud-based systems no longer has control of their information and security. Hackers may gain access to the cloud and be able to then access a company s information. Also, when utilizing cloud services, a company no longer has complete control over who has access to their information. For example, employees of the cloud company and contractors may have access to a company s proprietary information. Another disadvantage is reliability. The cloud-based system company may experience outages due to maintenance or power outages. During times such as these, companies who subscribe to their services do not have access to their information stored on the cloud. Outages can cause problems for companies during meetings, customer meetings, ordering, and daily

4 Smith 4 activities. There are no guarantees that a company s data will be available at all times (Laudon, 361). Another reliability concern is data loss. For example, if the cloud company goes out of business or has a fire, the subscribing company s data could be lost forever. Q3: When deciding on a traditional or cloud-based CRM, a company must examine the business as a whole. What processes are working, and which are not? Is the current IT infrastructure adequate, or does it need improving? What does the company need the CRM system to accomplish? How much time does the company have to implement the CRM system? How much control over data does the company need? What are the budget guidelines of the business? A company must look at their current IT infrastructure and processes to determine if there are any problems a CRM system could solve. The company with an IT infrastructure in place, that is serving the needs of the company well, may choose to leave that system in place. It may be more difficult than it is worth to implement a new system. Also, integrating current processes with a new system may prove difficult. However, start up companies and rapidly changing businesses may not know the extent of hardware, software, storage, and data management they need right away, or have the people capable of running and maintaining the IT of the company. A large factor in determining traditional or cloud-based CRM would be the type of organization the company is. Some organizations, such as financial or health care, may be mandated to operate a traditional system due to federal regulations. Other organizations that have large amounts of proprietary information may be better off using a traditional system to have more control over who has access to sensitive company information. The type of people involved in the organization is also a factor. For example, how long will it take the end user to learn the system, and will it increase productivity.

5 A start up company or a rapidly changing company may need a CRM system Smith 5 implemented quickly. A good question to ask is, how much time does the business have to implement the system. Cloud-based systems can be implemented very quickly, whereas traditional systems may take longer. Also, is there a need for mobility of the system. Generally, with a traditional system, to gain access to the system the end user must be in the office. The cloud-based system can be accessed anywhere there is an internet connection. A company with more than one office may find the cloud-based system easier to share data. One of the main issues in deciding which system to implement is cost. Cloud-based systems have a very small start up cost. There is a monthly subscription fee that covers the cost of maintenance and labor associated with running the system. Companies with little capital may find this appealing. A company that has already invested money in a traditional system and has IT professionals to run the system may continue to use its current system. However, if the company has not implemented a system, it must look at the one time cost to purchase the hardware, and software. The cost of labor and maintenance, upgrades to hardware and software, and additional storage when needed (Bucholtz). Q4: Salesforce.com has many major features to aide companies compete on a higher level. The major features include collaboration, reports, graphs on performance, contact integration, lead tracking, and opportunities. In my opinion, the sales and marketing teams would benefit from the mobile application, Chatter (collaboration), Contacts, Lead, Opportunities, and Dashboard reports.

6 Smith 6 In the collaboration feature, Chatter, companies can create groups for the sales and marketing to work together on current accounts, future accounts, and marketing strategies. Important features, such as, Contacts, Leads, and Opportunities help the sales and marketing teams create new accounts. Companies can implement contact us features in their websites that will automatically send those leads to the sales and marketing teams.

7 Smith 7 The Dashboard function allows companies to see reports ranging from real time data to yearly summaries. These reports can help a business know where they are and where they need to be.

8 Smith 8 Works Cited Abrar, Laura. 7 Business Benefits Associated with Cloud-Based CRM Services. YFS Magazine 2013: n.pag. Web. 16 October < Beuder, Jodi. Will Cloud-Based CRM Systems Really Improve Your Customer Service? Impact Learning Systems 2013: n.pag. Web. 16 October < Bucholtz, Chris. The 10-Step Guide to Buying the Right CRM Solution. CRM Outsiders n.pag. Web. 16 October < h_sugar.pdf Laudon, Kenneth C. and Jane P. Laudon. Management Information Systems: Managing the

9 Digital Firm. Boston: Prentice Hall, Print. Smith 9 Salesforce.com Inc n.pag. Web. 18 October < Vitus, Andy. How Zynga and Netflix Use the Cloud. Scale Venture Partners 2011: n.pag. Web. 16 October <