Business Information System: A Strategic e-CRM Analysis of Swarovski

This report provides a strategic analysis of Swarovski's business information system (BIS) initiative, focusing on its e-Customer Relationship Management (e-CRM) implementation. It examines the company's strategic context, needs, and success factors, highlighting how the e-CRM system addresses key aspects such as customer loyalty, marketing effectiveness, customer support, and cost reduction. The analysis includes a PESTEL framework, system design methodology, competitive forces, and value chain analysis. The report further details the technologies used in the web-based e-CRM application and its impact on maintaining Swarovski's competitive advantage and customer satisfaction. It concludes with recommendations based on the findings.

Swarovski business information system 1
Swarovski e-CRM
Professor’s Name
Affiliate Institution
Date

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Executive summary
The Swarovski Crystal Business, which was established in 1895, speaks to the biggest
territory of business for the Swarovski gathering. Swarovski structures, fabricates and
offers most elevated quality precious stone, real gemstones, made stones, and completed
items, for example, adornments, embellishments and lighting arrangements. With a rich
history and a culture of mechanical initiative, Swarovski is focused on development and
to keeping up its place at the bleeding edge of structure, inventiveness, and innovative
advancement. Swarovski´s production locations are Austria, India, Thailand, Vietnam,
Serbia, and the US and its products are sold in approx. 170 countries.

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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
The main objectives of the Swarovski Company limited business information system...............................4
Table 1.................................................................................................................................................5
Swarovski Company limited initiatives and analysis...................................................................................5
Initiation..................................................................................................................................................5
Swarovski Analysis..................................................................................................................................6
PESTEL framework analysis.......................................................................................................................6
Diagram 1............................................................................................................................................7
System design methodology........................................................................................................................7
Diagram 2............................................................................................................................................8
The five forces of competitive position.......................................................................................................8
Diagram 3............................................................................................................................................8
Business information system value chin analysis........................................................................................9
Diagram4.............................................................................................................................................9
Swarovski Company limited strategic needs...........................................................................................9
Increasing loyalty to the clients.............................................................................................................10
The company requires more effective marketing...................................................................................10
Improve services to the customers and customer support......................................................................10
More efficiency and the reduction of cost..............................................................................................10
Strategic success factors of Swarovski Company limited..........................................................................11
Strategic context of the Swarovski Company limited................................................................................11
E-CRM web based application technologies.............................................................................................12
The brands.................................................................................................................................................12
Conclusion.................................................................................................................................................13
Recommendations and results...................................................................................................................13
References.................................................................................................................................................14

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Introduction
Electronic customer relationship management system in business information system is used to
enhance customer service delivery. This kind of system improves the performance in which the
company is functioning. Swarovski Company limited has implemented this kind of system so
that they can be able to maintain its customer relationship and to attract more customers.
Through the use of e-CRM in Swarovski Company limited will enable the management to run all
the process smoothly. This is because everything or every transactions taking place is directed to
the central database. In this database whenever any audit transaction is to be undertaken, all the
data are supposed to be extracted from this database repository site. (Siponen, and Vance, 2010)
Swarovski Company limited was founded in 1985. Its name has gain a lot of fame all over the
world. The company is known for the production of crystal jewelry stones, gifts, and objects
such as collection of miniature animals and crystal based materials for fashion industries.
Swarovski Company limited also produces products such as binoculars, gun sites, and
telescopes. All these products must reach to people across the globe. Because of this case,
Swarovski Company limited decided to implement an e-CRM platform through which clients
can make orders to its products and services.
However, Swarovski Company limited could not manage this without building a very strong
supply chain management system. The role of the e-Supply Chain Management is to ensure that
there is flow distribution and supply of Swarovski products to its client in all corners of the earth.
The main objectives of the Swarovski Company limited business information system
The table below show the main objectives that the current information system is going to incur.
The main reason why the new technology has to be adopted is because the company saw that

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there is need to increase the speed of service delivery, the work has to be provided with quality,
to ensure that there is a flexibility to scale the company to a bigger level and to reduce the cost of
production through implementing an information system. (Mani, Barua, and Whinston, 2010)
Table 1
Swar
ovski
Company limited initiatives and analysis
Initiation
This is the startup phase in an information systems development project. It ensures the visibility
of the project and make sure that its implementation is successful. It consists of the needs why
the BIS is initiated. These needs may come as a result of the change in the legislation.
Managing director-Swarovski the system are likely to support the necessary for successful
implementation and development process.
Information system department- system may be implemented as the overall IS within the
company so that access to company resources will be easier.
Functional business area-to enable the company’s competitive advantage. This will become
more attractive to the clients.
NO Objectives
1 Quality.
2 Speed
3 Depandability
4 Flexibility.
5 Cost

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Swarovski Analysis
Swarovski Company limited made a decision in which a business information system which will
make the work of the company to be a bit easier. They decided to implement a web based
desktop and mobile application which will be able to allow uses to make their orders wherever
they are. Analysis and research were carried out before its implementation. The research which
was done was able allow estimate of the company’s projected budget.
During the research process, the company uses different research methods to carry out the
implementation process. The techniques used include the following;
1. Use of questionnaires
2. Use of direct interviews
3. Use of direct observations
All these methods of research were used during the data collection. The data collected were
taken and analyzed using the analysis tools such as the SPSS, and r software. This was able to
show the projected output and the possible outcome.
PESTEL framework analysis
PESTEL framework is a marketing strategy which most companies uses it to identify the market
niche within the business environment. PESTEL stands for Political, Economic, social, Legal,
Environmental and Technological factors.
The growth of Swarovski is affected mostly by all this factors and some measures have to be put
in place so that this issue cannot really changed the performance of the company. This issue can
be solve by implementing a business information system to allow remote access to company

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resources. Therefore, Swarovski Company is affected by economic, social, political,
environmental, legal and technological factors.
PESTEL framework is clearly illustrated in the diagram below
Diagram 1
System design methodology
The waterfall model indicates the series of steps which are used in building the BIS. The steps do
normally occur in a predefined order with a review after every stage. The kind of methodology
which is much employed on this process of business information analysis and design is the
traditional waterfall model. The diagram is as describe below.

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Diagram 2
The five forces of competitive position
In this report on the business information system, the company must consider the environmental
determinants of the business success. This is because these forces focusses on the study of the
market niche within the business environment. These forces looks on the key five areas which
includes; the entry threat, the power of customers, the power of the suppliers, the threats of
substitutes and the competitive advantage of the company.
Diagram 3

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Business information system value chin analysis
The company must consider its value chain framework before setting up the new information
system. This is because there is supply chain management where the distribution process of the
company’s products has to flow through. The diagram below best illustrate the value chain
management system in the new IS program.
Diagram4
Swarovski Company limited strategic needs
Everyday a large volume of customers tend to buy product from Swarovski Company limited.
This behavior has really cause the company managers to think beyond their noses to come up
with a system which will help them to easily manage this large number of customers. More so
the demand of its products is high across the world. There was need for the company to reach
everyone. The solution to this high demand is to developed and implement an information
system which will allow every customer to access this products remotely. Swarovski Company

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limited had to invest on improving its service delivery due to large number of customers coming
in.
The following are the needs which the company requires for its success in maintaining customer
relationship;
Increasing loyalty to the clients.
The company wishes to ensure that transparency in serving its clients is achieved. (Puhakainen,
and Siponen, 2010) The business information system which was implemented will ensure that
each customer is served accordingly and no discrimination is done to any customer. Because of
this reason, the company will be able to maintain its customer relationship and attracts more
customers too.
The company requires more effective marketing
The e-CRM site implemented by the Swarovski Company limited has its marketing strategies.
The business information system will ensure a higher visibility of the company to its clients and
makes it possible for the information to be access at the right time.
Improve services to the customers and customer support
The implementation of the business information system by Swarovski Company has enabled
real-time customer support. Any time the customer needs the support from the company site, he
or she can be assisted within a very minimal time as possible.
More efficiency and the reduction of cost
Information e-CRM site implemented will enable to reduce the cost of labor, travelling cost and
other miscellaneous cost that are used to market the company’s products. This is because there is
a reduced labor cost which could have been incurred when the traditional system could be used.

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Strategic success factors of Swarovski Company limited
Swarovski Company limited has been able to maintain its customer relationship for a long period
of time. This because the business information system (E-CRM) was implemented so that the
management team can manage all the clients without any complexity. This helps in strengthening
the tie between the company and the clients. Because through the use of the e-CRM system, the
way in which services are being delivered is very fast, therefore the clients will ensure that they
retain their existence because of the company reliability.
Strategic context of the Swarovski Company limited
The main reason for the implementation of the business e-CRM software manager in the
company is that to ensure that the company maintains its competitive advantage. The new system
is to allow the management to be able to retain customers and ensure that customer satisfaction is
met. Thus, the system is able to ensure fast delivery of services and reliability.
Like clockwork, a full supportability report is distributed. The current year's fourth
manageability report covers data and execution information on the activities of the Swarovski
Crystal Business. We give detail on the developing idea of our key way to deal with
maintainability, which speaks to the start of another stage in Swarovski's supportability venture.
Since we are currently setting out on this new stage, the emphasis is on our advancement
refreshes concerning the feature exercises and accomplishments in 2015 and 2016.
The extent of announced quantitative information has been expanded in 2015 – 2016, extending
the quantity of significant locales revealed from nine to ten. This incorporates the majority of our
own assembling and generation areas: Wattens in Austria; Subotica in Serbia; Triesen in

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Liechtenstein; three destinations in Bangkok in Thailand; Plattsburgh in the USA; Pune in India;
Bien Hoa in Vietnam and our corporate workplaces in Männedorf in Switzerland.
We have additionally delivered a nitty gritty file, guided by the Global Reporting Initiative G4
Guidelines, as an enhancement to this report. Likewise, you can download past reports.
The IS was built a group of experts managed by the Swarovski Crystal Business. This team come
up with the system through the copyright understated below.
E-CRM web based application technologies
Swarovski Company limited adopted a web based application system. The system relies on the
availability of the internet for its access. This application is hosted in the cloud and most of its
data are backed-up in the cloud. (Choi, Lee, and Yoo, 2010) The application requires servers
which have high speed capabilities so that whenever the client wants to purchase the products
posted, he or she will be able to access within the shortest possible time. This system will be
referred to as an e-CRM system with almost the whole functional parts of the company
The brands
Every time there is change in technology the company adopts the spirit of transformation. They
believe that employing new opportunities in a business environment greatly maximizes the profit
margin within the company. Also, technology make the work more efficient and hence it is very
crucial to be adopted. Therefore the company is always coming up with their new brands of its
products and ideas. From the history we have learnt from the research, the company started up
with only very few brands but as time goes by they came up with new brands as they evolve.
(Watson, Boudreau and Chen, 2010)