SCU Managing Information Systems: CRM Incorporation for Telstra Report

This report assesses the strategic importance of Customer Relationship Management (CRM) for Telstra, a major Australian telecommunications company. It begins by outlining Telstra's organizational context, mission, and business processes, followed by an analysis of its internal and external environments using SWOT and Porter's Five Forces frameworks. The report identifies the challenge of understanding customer expectations as a key problem and proposes CRM as a solution, detailing its benefits such as enhanced customer service and automation of tasks. Different solutions are evaluated, with justification provided for the selection of CRM. The report concludes with an analysis of the economic feasibility of CRM implementation, including a cost-benefit analysis and break-even point calculation, highlighting the importance of information systems in driving innovation and competitive advantage. The assignment follows Harvard referencing style and adheres to the guidelines provided in the assignment brief.

Running head: INCORPORATION OF CRM
Incorporation of CRM
Name of the Student
Name of the University
Author Note

1INCORPORATION OF CRM
Table of Contents
1. Introduction............................................................................................................................2
2. Description of organizational context....................................................................................2
3. Internal and external environments of Telstra.......................................................................3
4. Identification of the problem and opportunity for CRM........................................................5
4.1 Economic Feasibility........................................................................................................7
5. Conclusion..............................................................................................................................8
6. Reference list..........................................................................................................................9

2INCORPORATION OF CRM
1. Introduction
This proposal shall be identifying the exact IS which will be very much useful to
address the challenge faced by Telstra which is to understand the current market trends in the
telecommunication industry (Snihur, Thomas and Burgelman 2017). The needs and
expectation of the consumers of the telecommunication industry keep on changing every
moment (Stanimirov, Zhechev and Stanimirova 2017). This proposal shall be also
highlighting the economic feasibility regarding the deployment of IS in the business
environment of Telstra.
2. Description of organizational context
The main objective of this proposal is to emphasize on the incorporation of CRM,
which is one of the biggest Australian telecom organization having more than 160 subsidiary
organizations. The main vision of this Telstra is to provide world class technology which
helps in connecting people. The organization aims to enhance their skill set in such a manner
so that they can provide more enhanced services to each of their clients (Telstra.com.au.
2019). The prime mission statement of Telstra is to build technologies and content solution
which will be valued by the consumers of this organization. Wide range of services are
provided by Telstra such as internet access and pay television. The most significant business
process which is used in the business environment of Telstra is process of eXchange which
helps Telstra to integrate with each of the process and business partners (Charoensukmongkol
and Sasatanun 2017). Most of the real data time collection of this organization is conducted
using this computing service.
Telstra follows business to business model as they do not provide their services
directly to the consumers but to other business organizations who sells the products to the
consumers. The market demands of the consumers of this organization are met by this

3INCORPORATION OF CRM
organization due to the adoption of the B2B model (Härting et al. 2016). Improvement of the
brand awareness and providing customer centric experience are the other significant
contribution of this business model in Telstra.
3. Internal and external environments of Telstra
Based on the recent market trends regarding the incorporation of CRM, it can be said
that the concept of data mining is gaining popularity these days. Based on the use of the CRM
across other telecommunication organizations of Australia like Vodafone Australia, it can be
said that CRM not only helps to maintain a good relationship with the consumers (Nam, Lee
and Lee 2019). It can be said that the strategic use of IT systems can have a huge impact in
the telecommunication market (Khan et al. 2016). The ensuing table can be very much
convenient to understand the strategic use of IT in the telecommunication market.
Strategic use of CRM Description
Marketing Real time decisions based on the market trends is one of the most
substantial contribution regarding the use of CRM in tele
communication industry.
Sales Account of each of the consumers can be managed in the first
place using CRM. The long term customer contracts can also be
managed in the first place using the CRM. The entire sales circle
of the telecommunication industries is enhanced after the
introduction of the CRM (Zouaoui, Triki, and Ferchichi 2016).
Support Keeping track of the clients and the potential clients is one of the
most significant is the other contribution or the best practise
associated with the use of CRM in the telecommunication
industries.
Feedback CRM can play a huge role in the processing of the feedbacks in
the marketing departments of the telecommunication industries.
Table 1: Strategic use of CRM in telecommunication industry

4INCORPORATION OF CRM
The internal environment of Telstra shall be analysed using the SWOT analysis
SWOT Analysis
Strength: Having reliable suppliers and
service providers is one of the biggest
strength of this telecommunication
organization. Enhanced market reputation
and good returns of capital expenditure are
the other strengths of this
telecommunication organization.
Weakness: Addressing the expectation of
the customers is one of the prime weakness
of this telecommunication organization.
Limited success outside the core business
operations are the other weakness of Telstra
Opportunities: Getting new consumers
from the online channels are the foremost
opportunities of Telstra to grow in this
competitive telecommunication market.
Threat: Irregular supply of innovative
products and currency fluctuation of the
countries where Telstra have their branches
are the prime threats associated with the
internal operations of Telstra.
Table 2: SWOT analysis
Analysis of the external environment of Telstra using Porter’s five forces
Porter’s Five Forces
Threat of new entrants Telstra have the competitive edge regarding this
force as they have built economies of scale.
Telstra can lower the fixed cost per unit unlike the
other telecommunication organizations in
Australia
Bargain power of suppliers It has minimum impact on Telstra die to the
availability of multiple suppliers.
Bargain power of buyers Large base of consumers of Telstra helps them to
deal with the enhanced bargain power of the
buyers.
Threat of substitute products The core needs of the consumers are sometime
overlooked by the strategic planners of Telstra, as
a result, Telstra suffers from the threat coming
from substitute forces.
Rivalry among existing competitors Collaboration with competitors is one of the most
useful business strategies of Telstra.
Table 3: Porter’s five forces analysis
The prime market competitors of Telstra are TPG, TPG, Virgin Media, Optus and
Vodafone Australia. The below competitive profile matrix can be very much useful to
understand the advantage and disadvantage of the main competitors of Telstra.

5INCORPORATION OF CRM
Competitiveness of key competitors of Telstra
Vodafone Australia Virgin Media
Advantage Disadvantage Advantage Disadvantage
The brand reputation
of this organization
is one of its prime
advantages.
Lack of customer
retention policy is
the most significant
disadvantage of this
telecommunication
organization.
Variety of
distribution channels
is the most
significant
advantage of Virgin
Media.
Lack of promotional
activities is one of
the prime
disadvantage of this
telecommunication
organization.
Successful
promotional
activities are the
other advantage of
this organization.
Lack of variety of
distribution channels
is the most
significant
disadvantage of this
organization.
Superior IT
capabilities is the
other advantage of
this organization.
Smaller range of
products is also
considered as the
limitation of this
telecommunication
organization.
4. Identification of the problem and opportunity for CRM
Considering the analysis based on SWOT and Porter’s 5 forces it can be said that
understanding the expectations of the customers is one of the biggest challenges in Telstra.
According to Agnihotri et al. (2017), CRM can be very much useful in telecommunications
organizations as it can help the customer service department as well as the administration
team to understand the current market trends. The customer data of a business are managed in
an organized manner using a CRM. However, as discussed by Belias et al. (2017), CRM can
also help global telecommunication organizations to automate the sales procedure, which can
help the organization to enhance their net profitability. Thus, it can be said that the
incorporation of a CRM in Telstra can be very much useful for them in order to maintain a
long term relationship with each one of their clients (Benešová and Hušek 2019). The key
benefits of the proposed systems, along with its implication on Telstra is presented in the
following table.

6INCORPORATION OF CRM
Benefits Implications on Telstra
Enhanced customer service Addressing each client individually is one of the
prime implication of this benefit of CRM.
Automation of everyday tasks Surface details of any sale can be tracked in an
organized manner using the automated specification
of the CRM.
Enhanced productivity Knowledge of innovative products can be understood
by the production team of Telstra from this benefit of
CRM.
Enhanced reporting and analysis Errors and miscalculations associated with customer
data and sales goals can be minimised using this
benefit of CRM.
Solutions Advantage Disadvantage
Solution 1: CRM The business cycle of
the organization can be
monitored in the first
place using the CRM.
High initial investment is the
only limitations associated
with this solution
Solution 2: Integrated system The prime advantage of
the integrated systems
is that it helps the
administrative team to
get the real time
customer data.
Loss of business flexibility is
the only limitation of the
integrated system.
Solution 3: Module of a system Contact management
module of the CRM can
be very much useful in
Telstra to personalize
the entire customer
interaction procedure.
Potential time delay is the
only limitation associated
with this solution.
Justification
The incorporation of a CRM can be the most feasible solution regarding the issue
faced by Telstra as could not understand the current needs and expectations of the consumers
of the telecommunication industry.

7INCORPORATION OF CRM
Criteria Current situation Proposed systems Integrated systems Module
Flexibility Based on the
current situation,
it can be said that
the customer
service
department is not
very much
flexible enough to
comprehend the
expectation of the
customers.
The flexibility of
the CRM is very
much on the
higher side and it
is one of the best
way to solve the
current issue
which is being
faced in Telstra.
The subsystems of
CRM can be
attached with the
subsystem of
customer
management system
in order to identify
the expectations of
the customers.
However, the
flexibility of this
integrated system
can be the same as
that of a CRM.
Contact
management
module of the
CRM is very
much flexible
enough to
understand
expectations of
the consumers
Telstra.
Weightage
out of 10
5 8 7 6
4.1 Economic Feasibility
Figure 1: Cost Benefit Analysis
(Source: Created by the author)

8INCORPORATION OF CRM
Figure 2: Break-even occurrence`
(Source: Created by the author)
The above cost-benefit analysis can be very much useful to understand the net
economic benefit regarding the implementation of CRM in Telstra which is $629556.23. The
break-even occurrence of this project can also be understood from this above cost-benefit
analysis which is 2.27 years.
5. Conclusion
Introduction of an Information System is very much required in most of the global
commercial establishments in order to enhance innovation capabilities. The strategic use of
an IS can provide commercial establishments with a competitive edge over similar
organizations. The decision making abilities, communication and data analysis are other
significant contribution of IS in a business environment. This proposal was very much useful
to comprehend that the challenge faced by Telstra in terms of understanding the needs and
expectations of the consumers can be addressed using a CRM.

9INCORPORATION OF CRM
6. Reference list
Agnihotri, R., Trainor, K.J., Itani, O.S. and Rodriguez, M., 2017. Examining the role of sales-
based CRM technology and social media use on post-sale service behaviors in India. Journal
of Business Research, 81, pp.144-154.
Belias, D., Velissariou, E., Kyriakou, D., Vasiliadis, L., Roditis, A., Koustelios, A. and
Sdrolias, L., 2017. he use of digital CRM in the operation of Greek Hotels.
Benešová, D. and Hušek, M., 2019. Factors for efficient use of information and
communication technologies influencing sustainable position of service enterprises in
Slovakia. Entrepreneurship and Sustainability Issues, 6(3), pp.1082-1094.
Charoensukmongkol, P. and Sasatanun, P., 2017. Social media use for CRM and business
performance satisfaction: The moderating roles of social skills and social media sales
intensity. Asia Pacific Management Review, 22(1), pp.25-34.
Härting, R.C., Moehring, M., Schmidt, R., Reichstein, C. and Keller, B., 2016, January. What
drives users to use CRM in a public cloud environment?-insights from European experts. In
2016 49th Hawaii International Conference on System Sciences (HICSS) (pp. 3999-4008).
IEEE.
Khan, H.U., Fournier-Bonilla, S.D., Jinugu, A. and Madhavi Lalitha, V.V., 2016, March.
possible challenges of the successful implementation of CRM in the service sector: a case
study of Saudi Arabia. In Northeast Decision Sciences Institute Conference (Vol. 31).
Nam, D., Lee, J. and Lee, H., 2019. Business analytics use in CRM: A nomological net from
IT competence to CRM performance. International Journal of Information Management, 45,
pp.233-245.

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Snihur, Y., Thomas, L.D. and Burgelman, R.A., 2017. The disruptor's gambit: how business
model disruptors use framing for strategic advantage. In Academy of Management
Proceedings (Vol. 2017, No. 1, p. 11155). Briarcliff Manor, NY 10510: Academy of
Management.
Stanimirov, E.P., Zhechev, V.S. and Stanimirova, M.R., 2017. Strategic Readiness for CRM
Process Management: the Case of Business Service Companies in Bulgaria. Inquiry, 2(1).
Telstra.com.au. (2019). Telstra - Feedback & Complaints - Contact us. [online] Available at:
https://www.telstra.com.au/contact-us/feedback-complaints [Accessed 13 Oct. 2019].
Zouaoui, F., Triki, A. and Ferchichi, A., 2016. CRM Implementation Process: Application of
the Strategic Alignment Model. International Journal of Application or Innovation in
Engineering & Management, 5(3), pp.142-152.