Podcast
Questions and Answers
What is the purpose of a data quality audit?
What is the purpose of a data quality audit?
Which type of decision requires judgment and evaluation to reach a conclusion?
Which type of decision requires judgment and evaluation to reach a conclusion?
What follows after identifying and exploring solutions in the decision-making process?
What follows after identifying and exploring solutions in the decision-making process?
What percentage of critical data in Fortune 1000 company databases is reported as inaccurate or incomplete?
What percentage of critical data in Fortune 1000 company databases is reported as inaccurate or incomplete?
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What is data cleansing primarily focused on?
What is data cleansing primarily focused on?
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Which of the following is NOT a function typically included in CRM packages?
Which of the following is NOT a function typically included in CRM packages?
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Which aspect is primarily associated with Operational CRM?
Which aspect is primarily associated with Operational CRM?
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What is considered a primary benefit of using CRM systems?
What is considered a primary benefit of using CRM systems?
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What does the term 'churn rate' refer to in the context of CRM?
What does the term 'churn rate' refer to in the context of CRM?
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Analytical CRM is primarily focused on which of the following activities?
Analytical CRM is primarily focused on which of the following activities?
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Study Notes
Data Quality
- More than 25% of critical data in Fortune 1000 company databases is inaccurate or incomplete.
- Data quality audit surveys the accuracy and completeness of data in an information system.
- Data cleansing detects and corrects data in an information system.
Types of Decisions
- Unstructured decisions require judgment, evaluation, and insight to solve a problem.
- Structured decisions are repetitive and routine, involving a definite procedure for handling.
- Semistructured decisions have a partially clear-cut answer provided by accepted procedure.
The Decision-Making Process
- Intelligence: Identifying and understanding problems in an organization.
- Design: Identifying and exploring solutions to the problem.
- Choice: Selecting among solution alternatives.
- Implementation: Putting the chosen alternative into action and monitoring its effectiveness.
Customer Relationship Management (CRM) Software
- CRM packages include tools for:
- Sales force automation (SFA)
- Customer service
- Marketing
Operational and Analytical CRM
- Operational CRM: Provides customer-facing applications, including SFA, call centers, and marketing automation.
- Analytical CRM: Analyzes customer data using tools like OLAP, data mining, and customer lifetime value calculations.
Business Value of CRM Systems
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CRM systems offer business value through:
- Increased customer satisfaction
- Reduced direct marketing costs
- More effective marketing
- Lower customer acquisition and retention costs
- Increased sales revenue
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Churn rate is the number of customers who stop using or purchasing products/services from a company. It indicates growth or decline in a company's customer base.
Enterprise Software Applications
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Firms are expected to spend over $500 billion on enterprise software applications by 2020.
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Largest providers include:
- SAP
- Oracle
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Middleware providers include:
- IBM
- Oracle
Enterprise Software
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Built around thousands of predefined business processes that reflect best practices in:
- Finance and accounting
- Human resources
- Manufacturing and production
- Sales and marketing
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Firms can select functions of the system and map their business processes to the software's processes, customizing it using the software's configuration tables.
Business Value of Enterprise Systems
- Enterprise systems provide value through:
- Increased operational efficiency
- Firm-wide information for decision-making
- Rapid responses to customer requests
- Analytical tools for evaluating overall organizational performance
The Supply Chain
- A network of organizations and processes for:
- Procuring materials
- Transforming materials into products
- Distributing products
- Upstream supply chain: Suppliers and their processes
- Downstream supply chain: Distributors, retailers, and customers
- Internal supply chain: Processes within an organization
Enterprise Application Challenges
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Enterprise Applications are:
- Expensive to purchase and implement
- Susceptible to cost overruns and long development times
-
Other challenges include:
- Technology changes
- Business process changes
- Organizational learning changes
- Switching costs and dependence on software vendors
- Data standardization, management, and cleansing
Next-Generation Enterprise Applications
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Enterprise Solutions/Suites:
- Make applications more flexible, web-enabled, and integrated with other systems.
- Offer cloud-based and mobile versions.
- Include versions for small and medium-sized businesses.
Next-Generation Enterprise Applications (cont.)
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Social CRM: Integrates social networking technologies by:
- Creating company social networks
- Monitoring social media activity
- Managing social and web-based campaigns
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Business Intelligence:
- Includes BI in enterprise applications.
- Offers features like flexible reporting, ad hoc analysis, "what-if" scenarios, digital dashboards, data visualization, and AI machine learning.
A Database
- An organized collection of data stored centrally to serve various information system applications.
- Data is collected and stored for:
- Supporting operations
- Providing information for decision making
- Gaining competitive advantage
- Enabling the organization to manage its business and its relationships with customers and suppliers.
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Description
This quiz covers key concepts related to data quality, types of decisions, the decision-making process, and customer relationship management (CRM) software. Test your understanding of how data accuracy and decision dynamics impact organizational success. Explore various decision-making frameworks and their implications in business environments.
