Analysis of Cloud-Based CRM Systems: Opportunities and Challenges

This report examines the opportunities and challenges associated with cloud-based CRM systems in achieving business goals. It explores the benefits of CRM, such as improved customer relationship management and streamlined business operations, while also addressing challenges like data security, complex processing issues, and the need for long-term strategies. The report highlights the role of Enterprise 2.0 in enhancing knowledge sharing and collaboration within organizations. It provides insights into the implementation of CRM systems, including technical difficulties, the importance of guidance, and the need for skilled technical expertise. The analysis covers various aspects, including the impact of CRM on customer relationships, data management, and the overall efficiency of business processes. Furthermore, the report emphasizes the significance of adapting to technological advancements and adopting effective strategies to overcome potential obstacles, ensuring that organizations can leverage CRM systems to their fullest potential.

KNOWLEDGE MANAGEMENT AND
INFORMATION SYSTEM

TABLE OF CONTENTS
INTRODUCTION.................................................................................................................................1
Opportunities and challenges of Cloud based CRM system in meeting business goals.....................1
Enterprise 2.0 application..................................................................................................................4
CONCLUSION.....................................................................................................................................6
REFERENCES......................................................................................................................................7

INTRODUCTION
Knowledge management and information system is one of the most important
techniques by which various organizations can easily achieve their target. In today’s highly
technological advanced world it is quite essential for organizations to adopt some of the latest
techniques through which they can run their business functions smoothly. With the help of
adopting knowledge management and information System companies can go with the
continuous improvements by starting a new line of business (Holtshouse, 2013). In this
respect, the present study is based on the different strategies such as cloud computing as well
as its various service models used by companies such as CRM, ERP and SCM. These are
quite emerging technologies that basically rely on sharing computing devices. Sharing can be
done on the basis of cloud network where different departments can share their data equally.
In addition to this, discussion throughout this study is supported by different books and
journals. With this respect, discussion goes through the several challenges takes place at the
time of using CRM. In addition to this, there are various challenges faced at the time of using
cloud computing. Moreover, one of the most important parts of this research is a tool known
as Enterprise 2.0. Now days, it is quite attracting and widely used tool which directly improve
the knowledge sharing practices within an organization (Motro and Smets, 2012). Further, the
whole study provides an overview on Cloud Computing service models and platforms for
supporting enterprise systems such as ERP, CRM or SCM.
Opportunities and challenges of Cloud based CRM system in meeting business goals
CRM is a tool which can be defines as a customer relationship management tool. This
is a widely used tool which helps in maintaining all the details about the customer data. It can
also be defined as the most effective database management tool. It is quite efficient tool in
terms of security, reliability etc (Brodie and Mylopoulos, 2012). Now days, Organizations are
having a long term vision and they are trying to adopting several strategies through which
they can manage the whole information in an effective way. With the help of using such tools
companies can communicate with their customers and attract them towards their services as
well. In addition to this, CRM system the most effective technique by which company can
easily maintain the whole data related to their customers as well as workers. Cloud based
CRM provides them smooth business operation as well as improved performance. In toda’s
world, Internet is the most essential and effective tool which is used in vast area. Staab and
Studer (2013) stated that cloud based CRM store the whole data of company into the cloud
and deliver it to end user with the help of internet. Any manufacturing organization can easily
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streamline their business operations by the way of using CRM system in an effective
manner.At the time of working with this software there are several challenges as well as
opportunities faced by companies.
Galliers and Leidner (2014) in his study stated that innovation brings out several
opportunities for companies such as they can enhance their productivity in more effective
manner. It is a user friendly technique comes with several solutions as well. Cloud based
technology is being used more extensively by business from SMEs to larger enterprises.
There are varieties of solutions provided to companies by which they can address the needs
of their customers. It helps in achieving higher success to company as well as enhancing their
future market with wide range of opportunities. They can make their business globally and
provide worldwide services to their customers (Wang, Noe and Wang, 2014). All those firms
who somewhere lack in-house IT expertise to deploy they can further move up to the up
gradation of CRM application. Small business enterprise can easily grow with the
implementation of CRM system. According to López-Nicolás and Meroño-Cerdán (2011) it
is quite affordable product which may help in enhancing the productivity of company. After
purchasing this software it can be determine that there is not any type of hidden and extra
cost which consumer needs to pay later such as additional hardware cost or any type of
maintenance cost etc. It provides vast opportunities to consumers as they can easily interact
with the companies from anywhere at any time. It is the best way to maintain proper
coordination. Further, it is the best tool which provides flexibility as well as freedom to all
the users (Petkovic, 2010). As per the case study which is found in the article of Staab and
Studer (2013) it has been determine that with the help of CRM system whole data of clients
as well as employees can be managed by HSBC bank and they can serve their business
operations more smoothly.
At the time of implementation some of the most common technical difficulties faced
by them such as improper installation of set up as well as several security messages.
Technical experts can review the problems faced by them and at the same time try to resolve
those problems. According to Sosinsky (2010) customers are considered to be most important
parts of any organization. In order to retain them it is quite essential to maintain better
relationship with them. By the way of using CRM system companies can remains close with
their consumers by maintaining proper coordination. According to that case study which is
found the Article of Brodie and Mylopoulos (2012) most of the companies are facing
problems such as Shortfalls in complex processing, Security issues, No-long term

strategy, Lack of guidance etc. Some of the major challenges faced by companies using CRM
are as follows:
Shortfalls in complex processing: Most of the time technical expertise are facing
difficulties in managing interaction with consumers as well as advanced workflows.
According to that case study which is found the Article of Wang, Noe and Wang (2014)
HSBC bank is maintaining their consumer’s data by using CRM system. Due to the
increasing number of customers they requires to maintain all their customer’s account related
information as well as personal information. HSBC is serving their business operations
worldwide and they might face difficulties at the time of managing advanced workflows due
to the huge number of customers. For this, it is essential to take several measures such as they
need to recruit highly talented and technical expert staff. In addition to this, only few entries
need to be made in a single day in order to do not overload the data.
Security issues: It is considered as a major problem that might face at the time of
implementation of any software. In order to maintain proper installation it is quite essential to
considered heightened security issues. Most of the firms using cloud based CRM system are
using software-as-a-service (SaaS) security software. In addition to this, in the case study
which has been founded from the article of Motro and Smets (2012) Fcaebook Googl+,
Gmail are the major organizations using this software and maintaining data security and
protecting all the confidential information of customers as well. However, there are various
CRM solution providers which also provide high-end security to their customers and offer
them several advanced data backup policies as well. It is the best way through which
companies can gain trust among customers. Still, it is a major challenge for company that if
there any type of problem exists in the system, then it negatively affects the customers.
No-long term strategy: CRM solution is still a tremendous obstacle for too many
companies. It is a business process change and there is a tendency to look to technology when
it requires change. As per the case study given in the article of Wang, Noe and Wang (2014)
it has been founded that HSBC bank can can align their business process to meet specific
goals and various other issues like job roles and responsibilities, accountability as well as
incentives (Brodie and Mylopoulos, 2012). These are the major factors which commonly
requires for CRM to succeed. In addition to this, there should be a team which can impart that
change is effective. There must be a process which defines that how CRM system will help
the employees.
Lack of guidance: Most of the companies build CRM system within their firm
without a bearing wall. Further, it can be stated that a CRM initiative without goals will

collapse and it requires setting a proper goal for company. According to the case study which
is found in the article of Cook (2008) HSBC is creating a phased implementation plan before
constructing CRM area into their business operations (Petkovic, 2010). Without going
through any of the guidance organizations are implementing CRM. Later it might create
several difficulties.
In order to overcome with all the above given difficulties it is essential for companies
to take several measures such as: As per the case study which is found in the article Galliers
and Leidner (2014) HSBC need to embrace CRM solution a prerequisite for realizing the set
vision of bank, not just as a technology solution. At the end of the day it is necessary to
collect all the necessary information in order to get on-going support. Highly advanced and
experienced technical expertise need to be recruited within different IT firms. It is another
most effective way to maintain the appropriate solution of the used CRM system. In order to
overcome with the problem lack of guidance it is necessary for the project leader to start by
crafting a valid business case for CRM before launching any of the new projects. They can
also include the automating process that helps in improving user productivity and
streamlining all the marketing and sales process. In order to overcome with the security
issues it is necessary for them to adopt some of the best security software’s.
Enterprise 2.0 application
In today’s competitive environment companies are trying to bring several changes in
their business process. According to the case study which has been founded in the article of
Wang, Noe and Wang (2014) Enterprise 2.0 is the most effective and fundamental tool by
which organizations can improve the collaboration. Enterprise 2.0 can be defined as an
application of web 2.0 technologies which is basically used for knowledge sharing. It is a
community driven web service such as blogs, wikis etc. López-Nicolás and Meroño-Cerdán
(2011) defines in his article that with the help of these application employees can easily share
information between each other as well as with their customers. It provides appropriate
collaboration among different participants. According to the article of McAfee (2009)
Enterprise 2.0 comes from the two groups named as “techies” and “newbies”. Both of these
groups started using these techniques and realize several benefits of it. Techies identified that
they can make better collaboration with their customers by using Web 2.0 tool. On the other
hand, newbies found this tool as a social platform which serves several opportunities for their
fresh career (Cook, 2008). Further, it can be determine that more than 60% companies are
using Enterprise 2.0. Such as Microsoft, Google, Emerald etc.

Three key reasons from an employee’s perspective to be motivated to use their knowledge
to Web 2.0
Most of the employees are using web 2.0 technologies in order to share their
knowledge. After going through the different response of various respondents it has been
founded that they feels motivated to use their knowledge to web 2.0. Most of the employees
stated that it is the most effective tool which provides them several opportunities (Staab and
Studer, 2013). They can easily manage their personal information by effectively maintaining
their social network. It helps them in keep updated and enhances their knowledge as well.
Further, it can be determine that by using Web 2.0 technology employees can socialize their
network. It is the best way by which they feels motivated and coordinate with each other.
Three key barriers from an employee’s perspective to use Web 2.0 to share knowledge
After gathering responses from different employees it has been founded that they have faced
several barriers while using Web 2.0 to share knowledge. One of the major barriers faced by
them is the lack of support from the organization. They require proper support and guidance
at the time of using any new tool. In is the major factor which highly affects the participation
of employees in an organization. On the hand, some users stated that they can get huge
number of information on different blogs and wiki’s. Somewhere they might get confused of
what type of information is successful for them (Cook, 2008). Different organizations share
different information on the social networking sites due to which information might get
overload. In this way, it can be define that employees might get confused and revolve around
finding most appropriate information. Workers are having fear of trust and security while
using different social networking sites. It is also defines as a major issue that they do not
easily trust such sites. Due to this trust, most of the customers are not ready to share any type
of information with customers. Moreover, it can be determine that companies using this tool
are not able to develop a higher level of trust on the customers due to lack of security issues.
Moreover, it can be define that appropriate plan need to be developed by company so that
users can get to know more about this tool before implementing and using it.
Improve knowledge sharing practises within an organisation by manager that uses
Enterprise 2.0 technology
When managers of different IT companies have been asked about the improvement in
knowledge sharing practices within an organization than most of them replied in affirmative
manner. They determine that they can improve the knowledge level of all their workers by
maintaining trust factor among them. In addition to this, improve knowledge sharing
practices can be established by maintaining effective tools. In this recognition and rewards

can be provided to company through which they can establish their expert system as well as
improve their performance (McAfee, 2009). Moreover, manager those who are using
Enterprise 2.0 technology can also improve these knowledge sharing practices by developing
a culture in which all the employees can freely talk with each other and coordinate with each
other as well. Further, it has been identified that by maintaining a friendly culture workers
feels motivated and perform all their tasks more effectively by discussing with each other.
CONCLUSION
From the present study it has been concluded that Cloud based ERP is the most
effective software through which organizations can manage their business operations more
effectively. At the time of implementing such system they might face several difficulties and
challenges such as shortfall in complex process, security issues, lack of guidance etc. Except
these challenges there are several opportunities as well which companies can attain such as
maintaining better relations with their customers, enhanced profit margin in future etc. On the
other hand, it has been founded that Enterprise 2.0 is the most effective tool which helps
employees in improving their personal knowledge by effectively communicating with each
other.

REFERENCES
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Cook, N., 2008. Enterprise 2.0: how social software will change the future of work. Gower
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strategies in managing information systems. Routledge.
Holtshouse, D. K., 2013. Information technology for knowledge management. Springer
Science & Business Media.
López-Nicolás, C. and Meroño-Cerdán, Á. L., 2011. Strategic knowledge management,
innovation and performance. International journal of information management. 31(6).
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Motro, A., and Smets, P., 2012. Uncertainty management in information systems: from needs
to solutions. Springer Science & Business Media.
Petkovic, I., 2010. CRM in the cloud. Intelligent Systems and Informatics (SISY),
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Sosinsky, B., 2010. Cloud computing bible. John Wiley & Sons.
Staab, S. and Studer, R., 2013. Handbook on ontologies. Springer Science & Business Media.
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