Innovation Management and Entrepreneurship

This assignment discusses the development of Consumer Relationship Management (CRM) in business organizations. It explores the social and organizational aspects of technology, factors influencing its development, and the role of government in supporting or regulating it.

Running Head: INNOVATION MANAGEMENT AND ENTREPRENEURSHIP
Innovation management and Entrepreneurship
Name of Student
Name of University
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INNOVATION MANAGEMENT AND ENTREPRENUERSHIP
Introduction
The definitions of technology have been approached from different perspectives in
different ages. In the Stone Age technology was the development of tools out of wood and the
process ofigniting fire for cooking food, or for creating light and heat. The Bronze Age saw
mankind’s ability to work with metal for more advanced creations and better convenience.
Civilization reached a zenith in the Iron Age with the help of technology as people started being
able to engage in industrial activities like transportation and manufacturing. The birth of the
computer and internet was a modern phenomenon, proving that technology is nothing but a
strategic application of knowledge, either in physical objects or in organizational institutes, with
the purpose of attained certain goals. The selected topic of this assignment is Consumer
Relationship Management. The content of the paper aims to trace the development of CRM over
the years in business organizations. The paper will mobilize and reflect upon themes and
appropriate theories for addressing the questions concerning the social and organizational aspects
of technology, the instrumental factors involved in the development of the technology, the social
embeddedness of the technology and other relevant factors influencing or hampering the
diffusion and adoption of the technology. The structure of the paper is divided into two chief
topics of discussion: an explanation of the development, and the factors that influence the
development of the technology. Finally, the paper concludes with a discussion on the role of
government and institutional factors in supporting or regulating the technology.
Discussion
CRM as a social and organizational technology
CRM is more a strategy than a technology. It is concerned with the management of the
relationships and interactions of an organization with its consumers , potential consumers and

INNOVATION MANAGEMENT AND ENTREPRENUERSHIP
internal members. It also assists a company establish and maintain healthy consumer
relationships, improve profitability and streamline processes. In technical terms, CRM refers to a
tool used for better efficiency of contact management, productivity, sales management or more.
Improving business relationships is the primary of the CMR system. The software used in a
CMR system is responsible for recording the contact information of consumers such as
telephone, profiles on social media, websites and more (Reihnold 2013). The software also pulls
in other important information concerning the recent activities of the company. It is also
designed to store intricate details like the consumer’s individual preference of communication.
All these information is organized by a CRM software to help the company improve its
relationships with consumers and device better relationship management strategies. The
software can provide a thorough view of the consumer by effectively capturing their interactions
with the company and by collecting the information required by the company to improve the
conversations with the consumers. The system benefits the different operating bodies of the
management, including the sales team (by helping them understand the pipeline better), the
marketing team (by making their forecast more accurate and simpler), supply-chain management
(by helping them maintain better relationships with partners, and finally helping the HR team
accelerate recruitment and employee performance.
The development of CMR
The system of CMR was derived from database marketing, which dates back to the
1980s. Trailblazing pioneers used statistical modelling for facilitating marketing communications
directly. Digital rolodex was the first installed CMS software in 1986. The system enabled
business to organize and store thousands of customer information without hassle. In the late
1990s, the SFA or the sales force automation helped organizations streamline their sales

INNOVATION MANAGEMENT AND ENTREPRENUERSHIP
management apart from boosting productivity. The meticulous innovations in computing and
software led to the development of data and networking strategy, no known as the CRM. The
demand of the software was high for telemarketing businesses as the automation type
(Christopher eta al 2013) brought together the features of contact management and database
marketing. The CRM industry had made substantial transitions later in the early 20s.
Organizations now started infiltrating the marketplace with e-CRM vendors that focus on intra-
organizational relationships. By 2007, most companies have successfully installed the cloud-
based system of CRM. Currently, the use of CRM in regulating customer relationships on social
networking platforms as the businesses are enhancing their capacity to engage with consumers,
gather data and obtain feedbacks about their products and services.
The key factors involved in the development of CRM
The chief users of the CRM are obviously private firms that constantly require feedbacks
from consumers for improving the quality of their services or for simply securing a respectable
brand name. Apart from firms and individual entrepreneurs, educational institutions such as
Universities and High Schools use CRM for admission process, enhance conversation with
students and promote their retentions while engaging with key stakeholders and alumni. Students
today have myriad options to choose from while getting enrolled in a course. The reason for
choosing one university over the other with the same credentials has got a lot to do with the way
the Universities communicate with students and prospects. The system of CRM has developed
largely within the educational sector as institutions now focus on student empowerment; and that
includes equipping them with tools to use their potential fully. Finance-based companies have
also made considerable contributions to the development of CRM. Investment advisors have
requested to develop the software in a way that it provides a wide variety of continuous

INNOVATION MANAGEMENT AND ENTREPRENUERSHIP
integrations along with solutions in third-party software. Creations like Salesforce via the CRM
system have largely helped capital market firms and investment banks to strengthen their
relationships with corporate clients. Microsoft Dynamics is another innovation in the system of
CRM that has been developed by the finance service markets.
Factors that influence and hamperCRM and its adoption
Several variables need to be balanced seamlessly for a successful adoption and
functioning of CRM. For instance, the investments at the executive level determines the life-
cycle of the CMR tool. Adoption of a sound CMR system might be hampered if the company
lacks an efficient business strategy. Training is another primary determining factor is the
adoption and successful operation of CMR. Workers must have the knowledge and the skill to be
able to operate the software. If a company do not have a well-defined data, it might be difficult to
analyze and organize details using CRM. Companies must also have liaisons that have a proper
idea about the procedures of the system and how to use it to the advantage of the organization.
This knowledge enables other departments to divide workloads apart from determining the steps
they need to take for meeting the expectations of the consumers. Organizational culture is
another crucial factor that influences a firm’s decision to adopt CSR. A company that does not
entertain communication among the employees and has very little access to the feedbacks of
consumers and is never likely to adopt CRM.
Influence of competing technologies and role of path dependency and potential lock-in
effects
The different competing technologies that are devised by the organizations have resulted
to enhanced competition in the markets. The different transition decisions that are commenced
by the organization are dependent on the delineation of the urgency that is faced by the same

INNOVATION MANAGEMENT AND ENTREPRENUERSHIP
while operating on sustainable measures of the organization. The CRM will be helping the
organizations in identifying the concerns that are faced by the consumers . Trainor et al. (2014)
stated that the delineation of the concerns faced by the consumers will be helping the
organization in developing the products and services as per the needs of sustainability. On the
other hand, path dependency plays an important role in the decision making perspectives of the
organizational management. The delineation of the urgency faced by organizations will be
supporting the decision making ( Baharami et al 2016) capabilities of the organization through an
assessment of the historical pathways that were undertaken by the other players. Path
dependency assists the organizational management in understanding the path that might be
undertaken by the same in order to influence the transition in the venture. On the other hand, the
concept of path dependency will be helping the organizations in understanding the outcome of
implementing the latest technologies in the organizational models. Reinhold and Alt (2012)
stated that the path dependency assists organizations in upholding the efficiency of the
operations of the same.
` The lock in effects in the organization assists the same in retaining the loyalty of the
stakeholders towards the smooth functioning of the venture. The key modifications that are
facilitated by ventures are dependent on the schedule that is created by the project managers. In
this connection, the implementation of CRM in the practices of the organizations will be facing a
lock in period in which the technology cannot be reformed. The delineation of the lock in periods
assists the organization in continuing the efficiency of the functions as per the priorities of the
same. On the other hand, the implementation of the CRM technology in the organizational outset
assists the same in continuing the efficiency of the operations through an assessment of the
needs of the consumers .

INNOVATION MANAGEMENT AND ENTREPRENUERSHIP
Social embeddedness of CSR and how that influenced adoption
The implementation of the CRM technology in the organizational model is dependent on
the needs of identifying the social requirements. The organizations operate with the aim of
satisfying the needs of the consumers . The implementation of the CRM technology assists the
organization in understanding the requirements of the consumers and the different stakeholders.
The key areas of transition that might be undertaken by the organizations in different processes is
dependent on the delineation of the needs of the consumers . Soltani andNavimipour (2016)
stated that the delineation of the needs of the consumers assists the organizations in developing
relevant designs as per the concerns. The CRM technology assists organizations in understanding
the needs of the consumers , which assists the same in framing the long term objectives of the
same for supporting the competitive advantage of the venture. The long term aspects of transition
that are undertaken by the organization is dependent on the delineation of the concerns of the
consumers .
Bahrami, Ghorbani andArabzad (2012) stated that the pre- stage of implementing the
CRM in the organizational model encountered different difficulties in presuming the demands of
the consumers or the customer size while penetrating in the global markets. The different phases
of product designing are dependent on the delineation of the concerns that are faced by the
organization relating to the delineation of the needs of the consumers . Ramchandani andGhias
(2013) stated that the developments in the different sections of the manufacturing phases and the
product or service designing phases are dependent on the delineation of the needs of the

INNOVATION MANAGEMENT AND ENTREPRENUERSHIP
consumers . The development of the CRM technology on the processes of the organization
assists the same in allocating resources more efficiently. It assists organizations in cutting the
costs of production and thereby enhance the transitions of gaining a competitive edge while
operating in diverse economies (Provost and Fawcett 2013). The development of the CRM
enhances the knowledge capabilities of the organizations relating to the preferences of the
consumers, which assists in boosting the amount of sales and profitability of the venture.
Therefore, the implementation of the CRM technologies will help the organization in identifying
the concerns of the consumers.
Winners and losers of technology. Unintended effects.
The implementation of the CRM in the organizational model will be helping the same in
enhancing the data base relating to the needs of the consumers . On the other hand, the
delineation of the needs of the consumers will be helping the organization in enhancing the
processes. However, Johnston and Johnston Jeffrey (2012) stated that there are relevant issues
that might be faced by the organization while implementing the CRM technology in the model
through data breaches and fake reviews. The CRM being an online data base system might be
compromised without proper firewall protection or security, which might affect the interests of
the consumers . The data breach through CRM technologies might also affect the goodwill of the
organization while operating in diverse global markets. On the other hand, Wang and Feng
(2012) observed that in many cases the organization customizes the reviews through paid
employees in order to attract the attention of the real time consumers . It is an ethical issue that
might be faced by the organization relating to fake marketing of the propositions. The key

INNOVATION MANAGEMENT AND ENTREPRENUERSHIP
transitions that are planned by the organizations are dependent on the assessment of the
capabilities of the same while adhering to the interests of the consumers . On the other hand,
Khodakarami and Chan (2014) stated that the implementation of the CRM assists organizations
in identifying thee concerns that are faced by the consumers while operating in diverse global
markets. The implementation of the CRM in the organizational model assists the same in
enhancing the operations as per the customer concerns. However, the delineation of the
challenges that might be faced by the organization through the implementation of the CRM
technologies will be helping the same in continuing the proficiency of the operations that are
planned by the same.
Conclusion
It can be concluded from the above discussion that there are plenty of good reasons why
companies should use a CRM system for lucrative benefits. Not only does the system help
organizations understand their consumers better, but also allows them to identify the ideal time
for marketing their products. CRM reliably identifies the most profitable segment of the
consumer group and this information enables companies to target the prospective goods at the
correct time. The aim of the paper was to elaborate the definition of technology in terms of
knowledge and its strategic application. Of the many advancements that technology has made,
CRM is one that has been developed as a result of applying knowledge and theory into technical
practice.

INNOVATION MANAGEMENT AND ENTREPRENUERSHIP
References and bibliography:
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Christopher, M., Payne, A. and Ballantyne, D., 2013. Relationship marketing. Routledge.
Johnston, J.M., Johnston Jeffrey M, 2012. Methods, systems, and computer program products for
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Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship management
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Ramchandani, J. and Ghias, A., NovitazInc, 2013. Customer relationship management system for
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