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Understanding the Effect of Customer Relationship Management Efforts on Customer Retention and Customer Share Development

Knowledge-enabled customer relationship management: integrating customer relationship management and knowledge management concepts,

Creating customer knowledge competence: Managing customer relationship management programs strategically,

Strategic issues in customer relationship management (CRM) implementation

Customer engagement as a new perspective in customer management

Background info

Coles Supermarket is a supermarket and consumer service chain located in Melbourne, Australia. George Coles founded the supermarket in the year 1914. Coles Supermarket is currently having around 100,000 employees. Their main rival is Woolworths. The company also provides the facility of online shopping. The Australian customers can purchase goods according to their choices sitting at home.

In between the year 1986 and 2006, Coles was the brand of the company Coles Myer Limited. After that, Wesfarmers purchased Coles Group. Coles Supermarket is one of the largest supermarket of Australia. They constantly focus on improvisation to stay up to date; in this way, they can earn productivity and can enhance their market share.

Coles Supermarket offers several services like

  • Coles Financial Services
  • Coles Liquor
  • Coles Vegetables and Fruits Special

To make sure all the products and goods it is important to prepare organisation chart for the organisation.

The below diagram shows the organisation structure of Coles Supermarket

Work breakdown structure (WBS)

Enterprise Resource Planning Accounting Software Implementation:

The below diagram illustrates the WBS for Enterprise Resource Planning Accounting Software Implementatio

Work breakdown structure (WBS)

Customer Relationship Management Implementation:

The below diagram illustrates the WBS for Customer Relationship Management Implementation

Risk analysis chart

Table 1: Risk analysis char

Section 2 – Detailed Analysis

Enterprise Resource Planning Accounting Software Implementation

Project proposal

Coles’ Supermarket’s primary objective is to shift their business over the cloud platform. They decide to shift their data storage from data centres to the cloud platform. This approach of Cole Supermarket will enhance their business activities. The data storage will get improved and will be more efficient. The enterprise resource planning accounting software will help them to assess the data much easily. The data can be accessed from any computing devices.

The Enterprise Resource Planning Software implementation is one of the important project for Coles Supermarket. The software consists of numerous functionalities. However, the project will be used to certain extent for the project. The software has been modified so that it can meet the demands of Coles Supermarket.

  • Coles Supermarket will implement the software for the very first time so the exact schedule of the project and the budget of the project is not known. The project outcome has been assumed based on the previous assignments done by other enterprises.
  • Project Organisation Structure

The Work Breakdown Structure for the project Enterprise Resource Planning Software implementation consists of the following stages-

Enterprise Resource Planning- The Planning contains the design of the Project Blueprint. It also contains the Project Realisation. The Project Blueprint design explains about POS software integration. The Project Realisation explains about the implementation and the configuration of standard IDOCs.

POS Integration- POS Integration involves the procedure of the solution architecture, project integration use cases and project field mapping.

Organisation Chart

POS Design- POS Design involves the specifications review and approval for further proceedings.

POS Development- POS software is associated coding of the software. The IT team will develop the software for Coles Supermarket.

POS Project Integration- POS integration involves developing WSO2 SAP Adapter, Project Field mapping, QA Testing, and Project Integration Use Cases.

Enterprise Resource Planning Software Going Live- Preparation Software to go live.

ID

Task Name

Duration

Start

Finish

Predecessors

1

Enterprise Resource Planning Implementation Project Kick Off

84 days

Mon 09/04/18

Thu 02/08/18

2

   Enterprise Resource Planning

15 days

Mon 09/04/18

Fri 27/04/18

3

      Designing Project Blueprint

7 days

Mon 09/04/18

Tue 17/04/18

4

         Point Of Sale (POS) Integration

3 days

Mon 09/04/18

Wed 11/04/18

5

         Finalising IDOCs and the fields hat ae needed

4 days

Thu 12/04/18

Tue 17/04/18

4

6

      Project Realisation

8 days

Wed 18/04/18

Fri 27/04/18

7

         Implementing and Configuring Standard IDOCs

4 days

Wed 18/04/18

Mon 23/04/18

5

8

         Enhance and Developing IDOCs

4 days

Tue 24/04/18

Fri 27/04/18

7

9

   WMS

13 days

Thu 12/04/18

Mon 30/04/18

10

      Designing Project Blueprint

5 days

Thu 12/04/18

Wed 18/04/18

4

11

      Project Realisation

5 days

Tue 24/04/18

Mon 30/04/18

7

12

   POS Design

15 days

Thu 19/04/18

Wed 09/05/18

13

      Preliminary Software Specifications Review

4 days

Thu 19/04/18

Tue 24/04/18

10

14

      Developing Functional Specifications

5 days

Wed 25/04/18

Tue 01/05/18

13

15

      Developing POS Prototype as per Project Functional Specifications

5 days

Thu 19/04/18

Wed 25/04/18

10

16

      Detailed Review of POS Project Functional Specifications

6 days

Thu 19/04/18

Thu 26/04/18

10

17

      Incorporate Feedback into Functional POS Project Functional Specifications

5 days

Fri 27/04/18

Thu 03/05/18

16

18

      Obtaining Approval for further Proceedings

4 days

Fri 04/05/18

Wed 09/05/18

17

19

   POS Development

30 days

Fri 27/04/18

Thu 07/06/18

20

      Assigning Software Development Staff

10 days

Fri 27/04/18

Thu 10/05/18

13,16

21

      Coding

20 days

Fri 11/05/18

Thu 07/06/18

20

22

   POS Project Integration

34 days

Fri 08/06/18

Wed 25/07/18

23

      Solution Architecture

5 days

Fri 08/06/18

Thu 14/06/18

21

24

      Developing WSO2 SAP Adapter

5 days

Fri 15/06/18

Thu 21/06/18

23

25

      Deploying Architecture

5 days

Fri 22/06/18

Thu 28/06/18

24

26

      Project Integration Use Cases

6 days

Fri 29/06/18

Fri 06/07/18

25

27

      Project Field Mapping

4 days

Mon 09/07/18

Thu 12/07/18

26

28

      Providing Training

3 days

Fri 13/07/18

Tue 17/07/18

27

29

      Developing Transformation Scripts

3 days

Wed 18/07/18

Fri 20/07/18

28

30

      QA Testing

3 days

Mon 23/07/18

Wed 25/07/18

29

31

   Enterprise Resource Planning Software Going Live

6 days

Thu 26/07/18

Thu 02/08/18

32

      Preparing Golive

3 days

Thu 26/07/18

Mon 30/07/18

30

33

      Golive

3 days

Tue 31/07/18

Thu 02/08/18

32

Table 2: Enterprise Resource Planning Accounting Software Implementation schedule

Budget

The approved budget for Enterprise Resource Planning Accounting Software Implementation is $50 thousand. The overall budget of the project includes the resources that will be used to perform the project activities.

Various risks might get erupt during the course of taking the project. The project risks can adversely affect the project activity as well. The risks associated with the project are

  • Inefficient usage of funds
  • Restrictions from other departments
  • Financial Risks
  • Technical Risks
  • Security Risks
  • Operational Tasks

Coles Supermarket by implementing risk management strategy can be able to avoid the potential threats. They can also control the risks as well. The project stakeholders will have to follow the risk mitigation methodologies well.

The project team members and the stakeholders associated with the Enterprise Resource Planning implementation have been showcased in the Project Organisation Structure.

Enterprise Resource Planning has several functionalities to offer. It is believed the new software implementation will bring immense benefits in Coles Supermarkets. The project manager has set quality and standard of the project at the start. The project manager will have to make sure that the project meets the standard throughout the lifecycle of the project.

Enterprise Resource Planning implementation is associated with the improvement of the business activities. The POS software will give them several benefits. Effective communication is very important within the organisation. The IT team will install and configure the POS system in the enterprise. They will train the employee staff so that the employee can make use of the software efficiently. Thus the employee staff needs to communicate with the IT team all the time and must clear their queries. In this way they can learn to use the software quickly. Again, the employee staff should communicate with each other and work all together. If they work together as a unit they can effectively use the Enterprise Resource Planning software implementation.

Cloud POS will be the game changer for Coles Supermarkets. The POS will monitor the sales record and will give alert when the stock is less. Coles Supermarket must adopt the effective change management. The effective change management will help them to manage current business operations and the Enterprise Resource Planning software implementation both at the same time. The Enterprise Resource Planning software implementation will not affect any other business areas of Coles Supermarket. Change management is associated with the planning, monitoring of the business activities. Coles Supermarket can be largely benefitted with the approach of the change management procedure.

Enterprise Resource Planning Accounting Software Implementation

The Enterprise Resource Planning software implementation scope will change constantly. The project budget, the project timeline and the project objectives can change in the course of the project.

The project manager and the stakeholders must keep record of the changes occurring within the project and must file a request whenever any change is made in the project. The project team will acknowledge the changes and can take actions on basis of that.

 NB: Refer to Project Enterprise Resource Planning Software Implementation for how issues are managed.

NB: Refer to Project Enterprise Resource Planning Software Implementation for acquiring data related to issues and risk logs

Figure 5: Enterprise Resource Planning Accounting Software Implementation Gantt chart.

Coles Supermarket with the aid of the Customer Relation Management Process Implementation can be able to facilitate the customers. They can be able to provide better customer service. They can meet the customer demands. The software application will help them to increase the productivity and the market share

Project Customer Relation Management Process Implementation has several functionalities to offer. The Project will be modified in the following areas and will make it suitable for Coles Supermarket-

  • Schedule- Changes have been made in the project schedule
  • Budget- Budget distribution of the project has been modified so that it can suit the business needs.
  • Risk schedule
  • Quality system
  • Issues and Risks log
  • Risk Schedule
  • Change management procedures

Scope definition

The project scope contains the core resources by which the software can be implemented.

The project budget is around $50 thousand. The budget associates all the resources that are required to complete the project efficiently.

There are several risks associated with the Customer Relation Management Process Implementation Project that can adversely affect the project. Risks associated are-

  • Disclose of Customer Personal Data- The customer data can get leaked or breached and can be used for any unscrupulous activities and this can be harmful for anybody
  • Financial Risk: A stipulated budget has been allocated for the project. It may happen the budget fall short while implementing the software
  • Technical Risks
  • Operational Risks
  • Restrictions from other departments

The project manager and the stakeholders associated with the project Customer Relation Management Process Implementation have been illustrated in the report.

The Project Customer Relation Management Process Implementation must meet the project deliverables and must meet the demands of the customers. The project manager set quality standards for the software. It is the responsibility of the project manager to ensure that the project maintains standard of the project. The standard can be maintained by implementing quantity management system.

The quantity management system involves

  • Project Organisation Structure Description
  • Assigning Roles and Responsibilities
  • Business conducted at the time of the project
  • Project procedures and steps
  • Available resources

The project stakeholders will have to make sure that the end system is completed successfully. The effective communication among the project team is absolute necessity. In this way, the employees can work effectively.  The employees will be trained by the IT team. The employees need to connect with the IT team and in this way they can be able to know the potential benefits of the software. At the time of developing the software the stakeholders must communicate with each other, in this way, the software can be developed effectively.

Customer Relationship Management Implementation

Customer Relation Management Process Implementation has numerous beneficial aspects. Coles Supermarket can be benefited with the help of the software. However, the implementation of the software can affect the other business areas of the company. Coles Supermarket must adopt the change management procedure as it will make sure that the business activities do not get affected with the installation of the Customer Relation Management Process software. The effective implementation of the software can help them to manage the customer besides carrying out all the business activities. The change management procedure will help to plan and monitor the system on the basis of type, risk and the reason. The changes can be kept tracked of and can be managed very easily.

Customer Relation Management Process Implementation can have significant impact on Coles Supermarket. The project scope can get changed at the due to the change in allocated budget, time and objectives as well as the project quality. Thus Coles Supermarket must keep track of the project progress and changes. A variance request must be filed while making any changes in the project occurs. This can allow the project manager and the stakeholders to know the project deliverables all the time and they can stay updated.

Several issues can incur at the time of conducting the project. The issues may be related to the project budget, project scope and the project quality.

The risk management team must install an issue resolution procedure The issue resolution procedure can help the project manager and his team to analyse the risks and based on that they can keep mitigate the risks aroused.

Conclusions

The business process of Coles Supermarket can get enhanced with the implementation of the two projects Enterprise Relationship Management and Customer Relationship Management and it have been illustrated in the report as well.

References

[1] P. C. Verhoef, “Understanding the Effect of Customer Relationship Management Efforts on Customer Retention and Customer Share Development,” J. Mark., vol. 67, no. 4, pp. 30–45, 2003.

[2] H. Gebert, M. Geib, L. Kolbe, and W. Brenner, “Knowledge-enabled customer relationship management: integrating customer relationship management and knowledge management concepts,” J. Knowl. Manag., vol. 7, no. 5, pp. 107–123, 2003.

[3] H. Gebert, M. Geib, L. Kolbe, and W. Brenner, “Knowledge?enabled customer relationship management: integrating customer relationship management and knowledge management concepts[1],” J. Knowl. Manag., vol. 7, no. 5, pp. 107–123, 2003.

[4] Y. Wang, H. Po Lo, R. Chi, and Y. Yang, “An integrated framework for customer value and customer?relationship?management performance: a customer?based perspective from China,” Manag. Serv. Qual. An Int. J., vol. 14, no. 2/3, pp. 169–182, 2004.

[5] A. J. Campbell, “Creating customer knowledge competence: Managing customer relationship management programs strategically,” Ind. Mark. Manag., vol. 32, no. 5, pp. 375–383, 2003.

[6] K. A. Richards and E. Jones, “Customer relationship management: Finding value drivers,” Ind. Mark. Manag., vol. 37, no. 2, pp. 120–130, 2008.

[7] A. Payne and P. Frow, “A Strategic Framework for Customer Relationship Management,” J. Mark., vol. 69, no. 4, pp. 167–176, 2005.

[8] L. Ryals, “Making Customer Relationship Management Work: The Measurement and Profitable Management of Customer Relationships,” J. Mark., vol. 69, no. 4, pp. 252–261, 2005.

[9] R. Chalmeta, “Methodology for customer relationship management,” J. Syst. Softw., vol. 79, no. 7, pp. 1015–1024, 2006.

[10] S. Mithas, M. S. Krishnan, and C. Fornell, “Why do customer relationship management applications affect customer satisfaction?,” J. Mark., vol. 69, pp. 201–209, 2005.

[11] I. J. Chen and K. Popovich, “Understanding customer relationship management (CRM): People, process and technology,” Bus. Process Manag. J., vol. 9, no. 5, pp. 672–688, 2003.

[12] S. Mithas, M. S. Krishnan, and C. Fornell, “Why Do Customer Relationship Management Applications Affect Customer Satisfaction?,” J. Mark., vol. 69, no. 4, pp. 201–209, 2005.

[13] R. S. Winer, “A Framework for Customer Relationship Management,” Calif. Manage. Rev., vol. 43, no. 4, pp. 89–105, 2001.

[14] C. M. Bull, “Strategic issues in customer relationship management (CRM) implementation,” Bus. Process Manag. J., vol. 9, no. 5, pp. 592–602, 2008.

[15] I. J. Chen and K. Popovich, “Understanding customer relationship management (CRM),” Bus. Process Manag. J., vol. 9, no. 5, pp. 672–688, 2003.

[16] P. C. Verhoef, W. J. Reinartz, and M. Krafft, “Customer engagement as a new perspective in customer management,” J. Serv. Res., vol. 13, no. 3, pp. 247–252, 2010.

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