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CRM Definition - A Systems Perspective


2005-03-13

We will define CRM using the same approach we define ERP. We look at CRM from a systems perspective to outline a holistic picture of CRM system.

What is CRM

CRM is the acronym of Customer Relationship Management. CRM is a business system that consists of enterprise goals, business strategies, business processes and enterprise information systems. CRM software systems automate many customer-related business tasks.

CRM vs. ERP and SCM

ERP (Enterprise Relationship Management) and SCM (Supply Chain Management) are two other categories of enterprise software that are widely implemented in corporations and non-profit organizations. While CRM attempts to enhance the relationship with customers, the primary goal of ERP is to improve and streamline internal business processes, and SCM aims to facilitate the collaboration between the organization, its suppliers, the manufacturers, the distributors and the partners.

CRM Definition - A Systems Perspective

Goals of CRM Systems - Goals of CRM is to learn more about customers' needs and behaviors in order to develop stronger relationships with them, and to facilitate acquiring, enhancing and retaining of customers. Components of CRM System

  • CRM Software - The core of an CRM system is module-based CRM software application. Each software module automates business activities pertinent to one functional area of customer relationship management. Common modules in CRM software system includes customer contact management, direct marketing, sales automation, call center applications and helpdesk module.
  • Business Processes - Business processes within an organization falls into three levels - strategic planning, management control and operational control. While ERP has been promoted as solutions for supporting or streamlining business processes at all levels, CRM systems are clearly designed to enhance management control and operational control in the chain of customer relationship management.
  • Users - The primary users of CRM systems are workers that perform management control and operational control. In an extended enterprise environment, the CRM users may include customers and business partners.
  • Hardware and Operating Systems - UNIX is the most common operating system for running CRM software. Windows NT and Linux are other popular operating systems to run CRM software. Most larger CRM systems are UNIX based. UNIX is a computer operating system designed to be used by many people at the same time and has TCP/IP built-in. There are many reasons to host your CRM software on UNIX.

Boundary of an CRM System

The boundary of an CRM system is the boundary of extended enterprise that implements the CRM system. The boundary of supply chain systems and ecommerce systems extends to the organization's suppliers, partners and customers.



Related Topics
CRM Systems - Software, Business Processes, Users and Technical Architecture
CRM News Portal
Functional Modules of CRM Software Applications

 



 
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