Knowledge Management System Strategy

This report comprehensively evaluates Marks & Spencer's (M&S) Customer Relationship Management (CRM) system. It begins with an introduction to knowledge management and M&S's position in the retail industry, utilizing frameworks like the BCG Matrix and PESTLE analysis to assess its market standing and competitive landscape. The report then delves into a detailed evaluation of M&S's CRM system, including its technical aspects, the use of Siebel CRM software, and the integration of e-CRM and social CRM strategies. A comparative analysis with Sainsbury's CRM approach is also presented. The evaluation highlights both the positive impacts (increased turnover, improved customer satisfaction) and drawbacks (lack of employee commitment, ethical considerations) of M&S's CRM implementation. Finally, the report offers recommendations for future development, suggesting improvements such as enhanced employee training, better integration with social media, improved customer feedback mechanisms, and a focus on mobile CRM. The report concludes by emphasizing the crucial role of CRM in maintaining strong customer relationships and driving business growth for M&S.

Knowledge management and information
system strategy
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Table of Contents
INTRODUCTION................................................................................................................................3
PART A.................................................................................................................................................3
Introduction and overview of the Marks and Spencer (M&S)........................................................3
Evaluation of the system..................................................................................................................7
Recommendation for future development.....................................................................................12
PART B...............................................................................................................................................14
CONCLUSION..................................................................................................................................14
REFERENCES...................................................................................................................................15
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INTRODUCTION
Knowledge management is regarded as iterative process which helps to ensure efficient
handling of information as well as resources within a commercial organization. In the present age of
fierce competition, businesses use innovative and advanced technologies so as to take competitive
advantages over the rivals and improve their performance (Khodakarami and Chan, 2014). The
major enterprise system involves Customer Relationship Management (CRM), Enterprise Resource
Planning (ERP), Supply Chain Management (SCM), Knowledge Management system (KMS) and
Management Information System (MIS). This project is preparing to examine and evaluate the use
of CRM software and its advantages and drawbacks for the organization. CRM software comprises
various tools and processes that businesses use to organize, track and manage prospectus over the
whole sales life cycle (Fournier, 2013). It manage the relationship between organization and
customers and enhance their satisfaction level. As a result, companies became able to survive in the
market for a longer duration. Present assignment will addressed the role of customer relationship
management in Marks and Spencer. It offers clothing, home and luxury food products to the wide
range of consumers across the international boundaries of the world.
PART A
Introduction and overview of the Marks and Spencer (M&S)
Information system comprises software that helps to store, organize and evaluate data and
thereby take effective decisions. It helps to convert raw data into useful information which helps in
the decision-making process. It is a combination of hardware, software, database, network, trained
personnel and procedures in order to facilitate effective business planning, maintaining
coordination, controlling and decision making as well (Martelo, Cepeda and Barroso, 2013). UK
retail industry is one of the fastest growing industry in the world, hence companies are using
various information system such as ERP, CRM, SCM, Geographic Information System (GIS),
Expert system, Database Management System (DBMS) etc. in order to achieve high success. The
industrial technological trends are increasing rapidly to enhance competitive strength and market
position. Information system or software is of great importance for the retail organizations as it
enable firms to offer high quality products and services to the customers and satisfy their needs
beyond expectations (Nguyen and Mutum, 2012). Moreover, it helps to share business information
across all the functional level and business hierarchies.
M&S is a leading British multinational retailer which is headquartered in Westminster,
London. It is a public limited company which operates in retail industry and listed on London Stock
Exchange (LSE). It has been founded in the year 1884 and operates across various continents of the
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world such as India, Egypt, Greece, UK, Russia, France, Poland, Hungry, Spain and Finland. The
mission of the company is to provide high quality cloths, home ware and food products at
competitive and affordable prices so that large market share can be captured by delivering good
value for the money invested by the customers (Hollensen, 2015). Company sales cloths, home
products and food products to the global customer base through its retail stores. Its stores includes
core shops, M&S Foodhall, hospitality, home stores, outlet stores, M&S simply food and online
services. Currently, it operates worldwide through more than 1330 stores.
(Source: Wang and Feng, 2012)
M&S's position in the retail industry can be analysed by BCG MATRIX analysis.
Stars High growth, high market share
Cash Cows Low growth but high market share
Dogs Low growth and low market share.
Question marks High growth and low market share
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(Source: Fournier, 2013)
According to the above BCG MATRIX, it can be seen that, M&S cloths products for men
and women, lingerie and night wear grab a larger market share of the country. While, currently, its
food products have a greater opportunities available for the future growth but still, present market
share is low. On the contrary, children's wear clothing has less market opportunities to grow and
have less market share as well.
Looking at the present era, M&S is facing throat cut competition from the competitors in
order to grab larger market share and perform effectively. Henceforth, it becomes essential for the
company to maintain better relationship with the customers and thereby reach targets (Fournier,
2013). CRM is one of the most important software which is using by M&S to maintain effective
relationship with the customers so as to retain them for a longer duration. CRM system has been
introduced by M&S in the year 2008 which focuses on creating sustainable relationship with the
consumers which add value for both customers and organization as well. CRM strategy assure
continuous interactions with the clients, which in turn, enable M&S to identify their need, desires
and expectations and fulfil it in an effective manner (Wang and Feng, 2012). Its external market
analysis can be conducted by PESTLE analysis, enumerated below:
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(Source: PESTLE analysis of M&S, 2015)
Political: Governmental rules and regulations regarding taxation, tariff, labour policies,
industry investment etc. impact M&S in different ways. In East Europe, liberalization policy had
been implemented in which government allows retail firms to start their operation across distinct
countries across the globe. Moreover, free trade agreements and several health legislation regarding
food products need to be consider by M&S to ensure fair practices by complying with the political
laws.
Economic: In this, customer spending, their income, inflation, material cost, demographic
factors etc. impact M&S. Rising income of the people enhance customer spendings and as a result,
industry market demand has been increased (PESTLE analysis of M&S, 2015). Through this, M&S
became able to serve larger customer base and enhanced its performance.
Social: Social factors mainly includes customers shopping behaviour, fashion trends,
lifestyle, consumer preference etc. In the present age, consumer needs and desires are changing
rapidly hence, it is essential for the M&S to address that what consumer demand and thereby
deliver services accordingly.
Technological: In UK retail industry, automation, use of advanced technologies, investment
in research and development activities etc. comprises the technological factors. It brings necessity
for M&S to upgrade its technology by using tools like e-commerce, m-commerce, online services,
CRM, SCM etc. so that it can offer qualitative services to the global customers (PESTLE analysis of
M&S, 2015).
Legal: It includes laws and regulations like customer health and safety legislation, antitrust
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regulations etc. Moreover, use of eco-friendly material and standard regulations for the food
production need to be strictly followed by M&S to assure consumer safety.
Environmental: M&S needs to maintain a safe environment by complying with the
environmental legislation and waste management. Recycling and reuse etc. manage M&S's scarp
and waste to a great extent. Moreover, it launched Plan A in 2007, to maintain a healthy
environment and become the most sustainable retailer.
(Source: Hollensen, 2015)
Evaluation of the CRM system
CRM system plays a crucial role in highlighting and examining existing consumers profile
to build strong relationship with them. CRM software facilitates consumer support and enhance the
quality and efficiency of the potential consumer experience. In the present globalised and dynamic
business era, customers are seen as lifeblood of the organization. CRM system is a information
technological system which allows enterprises regardless their size to organize, automate and
synchronize consumers at each and every facet of customer interaction. In other words, it refers to
the business practices, strategies and technologies which an organization use in order to manage and
examine customer interaction and data throughout the life cycle (Martelo, Cepeda and Barroso,
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2013). It includes sales, marketing, customer guidance, support and advices as well. It is an
integrated approach which assist organizations to create a strong communication with the
consumers, spreader across the globe. The primary goal of CRM is to retain existing customers and
attract new customers as well. By this, firms will be able to increase their turnover, market share
and yield as well. It create life long relationship with the consumers by ensuring consistent
consumer interaction.
With reference to M&S, it introduced Siebel CRM strategy in order to strengthen the
relationship by determining the consumer needs, wants and desires and offer services accordingly
(Gheroghiu, 2010). This in turn, M&S will be able to achieve its business goals and objectives.
M&S is a retail sector organization which success and growth is directly depends upon its quality of
products and services and customer satisfaction as well. It makes CRM at each and every point to
ensure sustainable relationship and prevent itself from the threat of loss of customers (Wahab, Al-
Momani and Noor, 2015). It is a well-known enterprise for the quality products and services no
matter, its product prices may be little bit higher than other competitors. Its CRM slogan is that
“customers are always and completely right” which brings consumer attention towards M&S. The
central aim of the CRM implementation in M&S is to overcome miscommunication between
customers and the organization, and thereby increase consumer satisfaction to a major extent. In the
past couple of year, M&S brought CRM in house (Fournier, 2013).
Technical part of CRM
Information and communication technology (ICT) helps in effective CRM launching. M&S
consumers are contracting with the business through different means like telephone, fax, websites,
e-mail etc. The CRM system initially capture and fed these information into the system for proper
maintenance of consumer data. Recording customer complaints and errors helps M&S to analyse
the factors which arise dissatisfaction in the mind of consumers. In this, customers are
communicated by various means like call centre, persona; contact, internet etc. and all this
information are centralised using CRM system. In the contract centres, CRM system maintain
telephonic information and work as a computing system. Intelligent working, Computer Telephone
Integration (CTI) and Interactive Voice Response (IVR) etc. technologies are used by M&S in its
CRM system to route calls to the most skilled and qualified agents (Technical briefings of CRM,
2009). In this respect, CTI worked with large call centres and helps to provide consumer regarding
data presents on the PCs screen to the call operators. For instance, it provide information about their
enquires from websites, e-mails etc on a single click. Through this, each caller will be able to
respond immediately and take appropriate action. Thus, this system allows call centres to positively
respond users for their satisfaction.
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CRM system integrates data from multiple touch points such as telephone centres, service
centres, FAQs. Fax, E-mail etc. which helps to identify demographic features and enable M&S to
develop products according to the demand of their target group. Further, automating consumer
interface helps to build high trust and loyalty so as to develop life-long relationship. There are
numerous system available in the market for the CRM implementation that are Siebel, Vantive,
Sales Logix, Baan, Front Range, Clarify etc. Thus, installation of software is the primary need for
the introduction of CRM system. This system assist M&S to consolidate and organize data
regarding current and potential consumers. It helps sales force to prepare sales record and follow-up
as well. The system highly assist M&S to record customer campaign details, their responses in
order to remove complaints and details. For instance, demographic data, shipping, web registration,
sales and purchase, online sales, account information etc. Internal or external portals, electronic
exchange means like XML web service, online transaction processing (OLTP) etc. are several
technologies adopted by M&S to communicate with the service users and create strong relationship.
On the contrary to this, Sainsbury used Teradata system which is a division of NCR
corporation and replaced the old Oracle data warehouse to redesign its CRM solution. It enable firm
to drive high number of consumers, assure more personalised communication and improve the
quality of decisions as well (Vengatesan, 2015). Its IT infrastructure and Teradata technology helps
Sainsbury in the effective implementation of CRM, store automation and ATMs. Value-added
software, media products, leading hardware technology, transaction processing systems allows
Sainsgbury to consolidate their consumer database and assist their sales personnel. Teradata solution
enable Sainsbury in the acquisition, storing, accessing and networking functions, which in turn,
facilitates data collection, dissemination and utilization of customer related information. Through
this, its sales force became able to identify consumer taste, interest etc. and provide services
accordingly.
In the present dynamic era, UK retailers are competing with each other to draw consumer
attention by growing multitude of consumer preference and boosting online offerings. Retailers are
focusing to generate larger turnover by attracting new customers. Although, attracting high number
of potential consumers is an advantage for M&S which helps to strengthen its customer portfolio
and increase revenue, but still, handling the cessation of relationship is also an another point of
CRM (Kumar and Reinartz, 2012). It is because termination or ending of relationship is responsible
for customer dissatisfaction and as a result, firm will lose their customers. It will create a negative
impact to the M&S's turnover and yield. According to M&S's IT program manager, Mike Chrise,
implementation of Siebel CRM software provide huge assistance to track consumer enquiries and
respond it very quickly and effectively. Through this, M&S became able to survive in the market for
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a longer duration by delivering best quality products or services at acceptable prices (Bhardwaj,
Pandya and Patel, 2014). The main focus of its CRM strategy is that what customer need, and what
we need to do to satisfy them? Moreover, its CRM also helps to maintain post sales relationship
with the customers by collecting their feedbacks and responses.
(Source: Ratchliff, 2014)
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(Source: Ratchliff, 2014)
M&S use various tools and techniques like websites, direct mail, live chats etc. in its
customer engagement. Moreover, in the present times, use of social networking sites such as social
CRM also has been increasing rapidly to examine and analyse consumer satisfaction and complaints
(Ratchliff, 2014). By receiving e-feedbacks from the clients, M&S's management can take better
quality of decisions to mitigate consumer complaints and satisfy their needs and wants effectively
(Peltonen, 2015). Currently, M&S is attempting to boost its consumer engagement over the digital
system by implementing E-CRM strategy. It made a sustainable investment for the creation of new
website and e-commerce technology. Its E-CRM strategy includes customer service and support, E-
contract strategy, Social CRM etc (Choudhury and Harrigan, 2014). M&S's implemented a digital
transformation strategy to strengthen the consumer relationship. New platform creation, hiring a
new digital focused team and entirely change the distribution system are the main focus area of its
digitalization strategy. The main reason behind the online platform is in the current time, large
number of buyers prefer to buy on websites as it takes less time and also, shoppers do not need to
go on outlet stores. With reference to M&S, its customer visits on stores is 100 million per week
while, its online figure is 250 million (Thomas, 2012).
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(Source: Ratchliff, 2014)
Along with this, it also introduced its new websites to provide shopping services to the users
on their mobile devices, androids and tablets. In order to attract greater customer traffic, M&S pay
more focus on its content because it must be of innovative style (Wei and et.al., 2013). In E-
Commerce facility, M&S is delivering customer services by its variety of depots in various
countries. Logistic is only the biggest cost which centralised its service system and serve buyers in
the best possible manner. Underwired, who is a specialist digital customer agency has been hired by
M&S to handle its eCRM system. In the current times, M&S also use celebrity fronted marketing in
order top gain customer traffic and increase their turnover and profitability as well (Choudhury and
Harrigan, 2014). However, its online advertisement operations are handled by RKCR, Y&R and
Walker Media. Besides this, M&S is also conducting post-implementation review of its Siebel
CRM software to test whether it meet targets or not. Its Siebel database is using by the company to
assist its food and textile technologists with the huge investment in research and development in
order to develop new products and services. By this, M&S became able to design new revenue
stream in order to enhance their performance.
CRM strategy brought large number of benefits as well as drawbacks for M&S, which are
enumerated below:
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