Cloud Based Customer Relationship Management (CRM)

Cloud-based Customer Relationship Management (CRM) is a technology-driven approach to managing customer data and interactions. It involves storing and managing CRM data by a third-party provider using an external network, accessible on various devices. While cloud computing offers flexibility and cost savings, it also poses security concerns, high bandwidth costs, and change management challenges. To mitigate these risks, businesses must thoroughly research the service provider's encryption features, data storage, transfer, and security policies. They should also carefully consider their specific business requirements and negotiate with service providers to ensure a cost-effective solution. Ultimately, cloud computing can be a valuable tool for businesses looking to enhance customer relationships and improve overall efficiency.

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Business Strategy and Cloud Computing
Name
Institution

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Executive Summary
Freakomon, a gaming console company had tough times in terms of sales with its earlier version
of Play sphere launched in 2001. The console could not match with the overall 3D graphics, solid
user interfaces, and hardware compatibility with products of giants like Sony and Microsoft who
generated huge response from gamers. Sony’s play station 2 already had a loyal gamer’s base
and with the launch of Play Station 2 that contained flashy graphics, mind boggling hard core
fighting along with sports titles took the gaming world by storm. Another reason for the
overwhelming success of Play Station 2 was that its console enabled gamers to launch the earlier
version of Play Station and hence loyal Sony connecting loyal Sony Gamers to the console and
sustaining its already huge base. On the other hand, Microsoft’s X Box launch with popular titles
such as Half Life 2 and Madden made Gamers jump into the gaming river. The real time 3D
environments along with constant stream of following titles made considerable loyal Gamers for
Microsoft providing the push to further upgrade the X-Box’s consoles.
Microsoft and Sony thus dented Freakomon’s Play sphere severely and the company lost
considerable market to them as its hardware contained only the basic 3D features and could not
match with that of Microsoft and Sony. The earlier version of Freakomon’s console had
generated huge successes creating a large number of Gamers Base for the company. Among
them the most popular was the Peppa Pigs Franchise which is hailed for epitomizing the success
story of Freakomon Company.
Freakomon, now comes up with an all new version codenamed “Rashomon” that is expected to
revolutionize the way console video games are played. The Rashomon version has stubby Rod
controller that can be controlled with one hand. This pointer device’s control according to
Rashomon looks incredibly beautiful and controlled the gaming functions very effectively.

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However, the unique selling point lies in the fact that such one handed control device is being
introduced for the first time and it would appeal and attract gamers towards Freakomon.
Important Stakeholders
The important stakeholders in the gaming industry are Console Manufacturers, Third Party
developers, Independent Publishers, and Gamers. Console manufacturers are hardware
manufacturers, third party developers are those who develop titles and sell them to console
manufacturers, Independent publishers are those who may publish games for the console
manufacturers, and the Gamers are the customers who buys the product and play games.
However, it must be noted that Console manufacturers mostly have their own game publishing
system which they use to publish games. Below is the diagram (Grant, 1991).

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Evaluation of Freakomon’s competitive position
Kurosawa, the CEO of Rashomon through this innovation attempts to expand the Gaming
industry’s base beyond the existing traditional young adult gamers to homemakers and other
family members as he believed that the one handed remote like features would enable people to
play games with ease. Kurosawa with all his experiences in the gaming industry envisions that if
Rashomon is launched with proper marketing strategy along with required compatible graphics
features and titles, it could turn out to be a game-changer for the company.
Dynamics of the Industry
The gaming industry in USA is characterized mostly by oligopolistic nature as few firms hold
most of the market share. Sony’s Play Station, Microsoft’s X-Box, and Freakomon along with
few others holds maximum chunk of the market share in the Gaming Industry. Microsoft, Sony,
and Freakomon are the console manufacturer or platform also referred as first party publisher in
the US game market. Gaming industry function consists of activities mostly between developers
and publishers. Publishers hold the edge over developers as they are mostly responsible for
marketing, publishing, and providing assistance to the developers who develops game software.
Developers may be first party developers, second party developers, third party developers or
independent developers. First party developers also ‘in house developers’ is wholly owned and
run by console owners or publishers while second party developers works for a console on a
contractual basis and develops game software exclusively for one consoles. The term third party
developers develop a game for a console firm and still have some influence over the firm as they
may provide some considerable input. However, mostly it is the console platform or publishers
who exercise maximum control in the entire process. The contract between third party

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developers and console platform is agreed upon by both the parties before the entire process
starts. Independent studios develop games independently and vouch for their own influence in
the Gaming Industry. There may be some other publishers for a particular console which may
publish on behalf of the console. These publishers are called third party publishers (Wesley and
Barczak, 2010).
Current Market Dynamics
The current market of the American Video market is dominated by Microsoft and Sony with
their respective X-box and Play Station with Freakomon’s influence taking a lowly third position
in the battle dominated by Sony. Both Sony and Microsoft outsmarted Freakomon’s Play Sphere
2001 version with their own respective consoles of Play Station and X-Box that occupied
Gamers space with high integration of 3D graphics, compatible hardware and game titles. The
hardware cycle in the video game industry is five years i.e. after every year companies change
their consoles and launch an updated version of existing one providing greater features with
superior graphics and titles. A particular console of a company would follow up with new
interesting titles to keep Gamers hooked up with the hardware console. Hardware is sold to
Gamers at much lesser price and it is mostly the titles that generate profit thus making it
necessary for consoles to retain their set of Gamers. Console companies would have to keep
delivering new fascinating titles and for this purpose developers play a major role in deciding the
business of consoles. This is where third party developers and independent studios comes into
play and many third party developers want more companies to influence the market as this gives
them the edge over publishers and console manufacturers. The five year period for both
Microsoft and Sony ends soon and they are expected to launch their new console version to be
available in the market for 2005 holiday purchase.

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Analysis of the Scenario using Porter’s Model
Let us analyze the competitive position of Freakomon using Porter’s model with regard to its
plan of launching new stubby rod hardware.
Porter’s Five Model
Porter’s business model is based on the idea five important forces acts as a determiner of your
business prospect. Porter’s five important tools for competitive analysis in Freakomon’s
objective of successfully launching their new hardware is as follows.
Supplier Power
As far as the Freakomon’s case study is concerned, the company establishes a cordial relation
with suppliers for its hardware materials. However, it is the software developers that the
company needs to be concerned with. Its initial hardware launch success would depend on the
contents and graphics of the games that must have high level of integration with the flagship
hardware concept that the company intends to bring. They need to engage with reputed
developers outside their publishing house as they could provide the initial flagship title the
company needs to launch the product successfully. However, many third party developers are
willing to provide assistance to Freakomon as their existence and influence seems threatened by
the duopoly between Sony and Microsoft. Much would though depend on the bargaining power
of Freakomon with these developers. Overall, the position of Freakomon with respect to
suppliers looks balanced and it is expected that there would be further co-operation between
suppliers and Freakomon.

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Buyer Power
Game Buyers in USA is increasing at a stagnant rate of 15 percent every year which signals the
overall positive outlook. The important fact however is that the buyers’ expectation in US
Gaming industry has risen up making the entire things competitive. Freakomon’s new hardware
must appeal and attract buyers as it is intended. The margin of error is very less and once the
buyer commits to one Console Company, they are not available for the next five years. Buyers
must also be kept engaged with fascinating titles. The price for the new console must be kept at
minimum possible as Freakomon intends to resurrect itself in the Gaming market after its Play
Sphere did not appeal to buyers in 2001 (E. Dobbs, 2014).
Competitive Rivalry
Competitive Rivalry is another major area of concern for Freakomon as Sony and Microsoft with
their current market and upcoming new hardware is expected to give tough time to Freakomon.
Freakomon has to make the launch successful and its new hardware should not have any error
and its intended functions should serve Gamers entertainment needs as perceived by the
developer if not better. Any error in the stubby rod version would allow competitors to bypass
patented rights and launch the same product design with new improved design. Furthermore, the
titles also need to be better for Gamers to persuade them to switch from X-box or Play station to
Freakomon’s product. The launch must take place with effective business strategy so as to make
any impact keeping in mind that Sony and Microsoft are already doing well.
Threat of substitution
The threat of substitution as mentioned earlier exists when there is any error in the hardware
console and if there is no proper titles to accommodate the demand of consumers. The initial
three-four titles will decide the fate of the console. To arrest any kind of substitution, Freakomon

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has to deliver right from the word go and ensure that the titles justify the one hand controller
hardware.
Threat of New Entry
In Gaming Industry, the threat of new entry is supposed to be very less as the investment is high
for any new players to make impact. So, it can be concluded that there is negligible threat of new
entry in Freakomon’s endeavor (Lee, Kim and Park, 2012).
Porter Model of Freakomon’s competitive position

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Recommendation based on above findings
Higher level of Communication
Freakomon, at the first place needs to integrate their new hardware design with higher user
interfaces, exceptional 3D graphics, and other system such as network compatibility. It needs to
connect well with its own internal developers as well as third party developers to complement its
console hardware. The communication among developers must be maintained at higher level so
that co-ordination and co-operation is ensured and the developers are apprised of every
requirement as per the new hardware design. The process of game developing is a complicated
one and the developers keep changing their design every now and then as they experiment with
various complicated aspects of the entire developing functions. The executives need also needs
to be apprised with developments and vice versa. Another important aspect of the entire
communication process is that everything has to remain a deep dark secret. For these purpose,
changes in the Information Technology system of the company is required as the existing
technology maintained internally by the company may not come handy. Constant communication
with stakeholders requires a communication channel consisting high level of security features.
Effective Supply Chain
The company also needs to manage its hardware supply chain effectively so as to deliver
maximum output within a set time frame. Rashomon is all set to launch soon and immediately
after the launch, the product may be in huge demand and hence effective management of the
supply chain system maintenance becomes obligatory.
Customer Relationship Management
After the launch of the product, i.e. new hardware, company has to keep engaged itself with
customers and any issues with product must be handled effectively so as to keep them intact with

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the product. Customers in the Gaming Industry have multiple options and switching to other
platforms by customers would result in huge loss for the company as the hardware delivered at
low price must be compensated by selling game titles at higher price. Customers’ i.e. Gamers
suggestions, response and feedbacks will be crucial in developing further titles. So,
communications with Gamers also need to be maintained from time to time using effective
communication channel. All these require an effective Customer Relationship Management
System to work for the company.
Management of supply chain system, communication process with developers, and customer
relationship would enable the organization to ensure that the Enterprise Resource Planning
(ERP) is functioning effectively for the organization. Communication among employees and
supervisors also needs to be fostered at every level to keep the motivation level high for the
entire team of Freakomon (Hansal, Weigl and Bull, 2010).
Cloud Computing System recommended
Cloud Computing system is taking the business world by storm as it contains all the above
required functionalities of Freakomon to enable it to launch the product successfully. Cloud
Computing provides facilities to business users to integrate all the important business
functionalities without having the burden to carry the data physically. All the data are stored in
cloud using secured network provided by the cloud service provider. Cloud computing enables
the users to access data easily and whenever required across multiple devices such as windows
enabled PCs, Mobile phones, and other forms such as tablets and Phablets. Cloud computing also
provides its users the flexibility to work as per convenience and from any place. Moreover, the
cloud computing comes with various types of services such as Iaas i.e. interface as a service,
Saas i.e. software as a service, Caas i.e. communication as a service, Naas i.e. network as a

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service, and Paas i.e. platform as a service. All these enable companies to manage their business
functionalities effectively and smoothly with essential security features (Masadeh, 2016).
On the basis of above finings, I would like to recommend cloud computing system for proper
integration of business functionalities of Freakomon in its endeavor to launch successful
campaign of one hand rod controller.

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Cloud Based CRM
Summary
Customer relationship management in business organization deals with managing customer
interactions for enhancing sales prospect of the organization. The term Customer Relationship
management implies that customers are an important source of revenue and profits and
companies must forge best possible ties with customers and keep them engaged with the business
of the organization through repetitive communication. In CRM database are maintained
electronically to carry out sales and marketing activities for an organization. Cloud based
customer relationship management uses external or remote network to store CRM data that can
be used by employees using internet as and when required. SME’s and large business
organizations uses cloud based service to cut administration costs, and enhance business
functions using portability of the system. However, cloud based CRM also has its own
challenges which we shall discuss in this assignment.
Cloud Based Customer Relationship Management (CRM)
CRM in modern day businesses is all about using technology to manage customer data generated
from previous leads or sales for continuous interaction with customer so that he/she keeps
visiting the business of the organization for better profits. Companies utilize customer data
generated within the system and employs various marketing strategy to keep customers engaged
with the company. For example, a retail company may apprise its customers about various offers,
discounts, and sales bonanza on festivals. Another primary use of CRM is to enhance after sales
services and resolve customer queries where customer care executives use available data on
products and services. In this process the customer data generated in the CRM system is also
used to know about the various aspects such as date of purchase, product purchased, and history

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of customer complaints. The entire CRM system runs on automation technology used to
automate marketing and sales effort.
CRM by its definition may be easy to understand but the entire process is full of complications
as it involves managing huge database that keeps increasing day by day as the time progress.
Companies find it extremely difficult to manage in house CRM system as it requires precise
administration and management by technical experts. Subscription and upgrading of software
products also needs to be carried out from time to time and once it is done, employees and users
may find it difficult to handle the new system (SearchCRM, 2016).
Cloud based Customer Relationship management manages CRM functionality of an organization
where CRM data is stored and managed by third party using external network that is accessible
by users on devices such as mobile, tablets, and PCs as and when required. Cloud service
provider provides various types of services according to company’s needs and specifications that
integrate the CRM functions along with other business functions such as supply chain
management. Once CRM of an organization becomes cloud oriented, companies do not have to
bear the maintenance cost of hardware as the service provider is fully responsible for managing
the entire data. However, Cloud Computing has many challenges as mentioned below.
Challenges of Cloud Computing
Security and Privacy
The most formidable challenge of cloud computing is the security and privacy issue as raised by
many CIO's. Generally the service provider looks into the security issues and take full assurance
for maintaining high level of security for business organizations subscribing to Cloud based
service. The fact however is that this assurance has done little to ensure confidence among

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business organizations. Executives across organizations are reluctant to hand over important
business data to service provider who is the third party. Breaching of sensitive data is becoming
more common day by day across organizations and the eventual financial loss along with market
reputation always acts as a deterrence for business organizations to switch over to cloud based
services (Shahzad, 2014).
Recommendation
Cloud computing services comes with security concerns its overall value to users is beyond any
arguments given the flexibility it provides to companies. Companies can however ensure
themselves of the security aspects by querying providers about the encryption features, data store
house, data transfer features and security policies of the service provider. These questions if
addressed properly by the service provider can help mitigate the security fear among executives
and provide them with the confidence to adopt cloud computing.
Performance and Bandwidth cost
Businesses that are not sufficiently large may have issues with high cost of switching over to
cloud computing. The hardware cost is done away with in cloud computing as the system
requires no hardware installation for businesses but the bandwidth costs is too high and regular
data transfer requires sufficient bandwidth so as to receive uninterrupted services. This high
bandwidth cost becomes deterrence for many SME's and as a result they don't consider cloud
services to be cost effective.
Recommendation
Cloud service provider provides various types of services such as Iaas, Saas, Paas, Naas, and
Caas. A particular business may need one or two of them depending on their specific business
requirements. It would be beneficial for businesses to draw a red line regarding their

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requirements and accordingly decide on their cloud endeavor. Important queries relating to
services and their long term benefit can help organizations to adopt cloud services.
Change in organizational procedure
Business world is undergoing drastic changes on a regular basis. Changes are generally not
preferred by executives as they involve lots of priority shifting, training, and persuasion at higher
levels. Cloud Computing is too a big a decision to be taken alone by executive and consensus
among board of directors become a major issue.
Recommendations
Executives need to ensure that they have convinced themselves of the requirement and have done
enough research to convince people of its long term benefit. They must indulge in discussions
with every members of board of directors on a personal level to know about their issues and
work to address their concern for consensus (Ieeexplore.ieee.org, 2016).
Conclusion
Cloud based CRM is the contemporary need for business organization as many business
organizations are moving towards it. The essence of business functions and productivity lies in
the constant changes taking place. A business should always be prepared to adapt to changes
according to market requirement to maintain competitive advantage. The concept of cloud
computing has turned out to be a big success in eliminating the burden of system maintenance
cost and providing portability for business activities sans few negligible reports that can be
neglected for better business experience.

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Wesley, D. and Barczak, G. (2010). Innovation and Marketing in the Video Game Industry. 1st ed.
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E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis
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Lee, H., Kim, M. and Park, Y. (2012). An analytic network process approach to operationalization of five
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Hansal, A., Weigl, M. and Bull, T. (2010). Oracle Siebel CRM 8 installation and management. 1st ed.
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2016].
SearchCRM. (2016). What is customer relationship management (CRM) ? - Definition from WhatIs.com.
[online] Available at: http://searchcrm.techtarget.com/definition/CRM [Accessed 19 Dec. 2016].
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