Assessment 2: CRM System Implementation in Wesfarmers

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MANAGING INFORMATION SYSTEM
ASSESSMENT 2
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Contents
Introduction......................................................................................................................................4
About Wesfarmers.......................................................................................................................5
Clearly identify the problem/opportunity for IS/IT.....................................................................7
Clearly justify your choice of the proposed system (including cost/benefit analysis plus at least
one other feasibility studies); clearly explain how the information system that you are
proposing will support the strategic goals of the organisation....................................................9
How the proposed CRM will support the strategic goals of the organisation...........................10
Customer Relationship Management system Design................................................................11
Customer Relationship Management system analysis-.............................................................12
CRM system development, testing, and implementation in Wesfarmers..................................13
Post-implementation activities of CRM system in Wesfarmers................................................17
Project management, risk management and change management associated with CRM
implementation..........................................................................................................................19
Conclusion.....................................................................................................................................20
References......................................................................................................................................21
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Executive Summary
This research proposal is about the management information system in Wesfarmers. In this
report brief description is given about the organisation, mentioning its objectives. Various
internal and external operating environments have been discussed. Problems and opportunity of
information system have been mentioned in detail. The Wesfarmers adopt customer relationship
management. The system analysis and system design of the implemented customer relationship
management has been explained. The development, testing, and implementation of this system
are done by applying various tests like regression testing, reporting, functional, security, and
many other testing. Post-implementation activities have been described. Project management,
risk management and change management regarding the CRM implementation have also been
discussed.
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Introduction
This research proposal is about the management information system in Wesfarmers. The
description is given about the Wesfarmers, its objective and internal and external operating
environments. Problems and opportunities for information system have been identified. CRM
system is developed including the cost-benefit analysis. System analysis and system design for
CRM has been mentioned. Development, testing, and implementation of the system in
Wesfarmers have been explained in detail. Post-implementation activities have also been
discussed. Project management, risk management, and change management while implementing
the CRM software system in Wesfarmers have been described. In the end, the conclusion is
given of the whole project.
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About Wesfarmers
Wesfarmers Limited is a conglomerate industry, headquartered in Perth Western Australia.
Majority of income of Wesfarmers Limited is from Grocery stores and supermarkets in the
Australian industry. Business operations of this organisation include department stores, home
improvements, industrial divisions, and office supplies with having its business in energy,
fertilizers, chemicals and safety, and industrial products. Its main objective is delivering a
satisfactory return to shareholders by delivering competitive goods and services and anticipating
the needs of customers.
Various internal and external factors affect the operations of Wesfarmers includes the following-
Political factors- Wesfarmers important department is coal mining. Free trade can be conducted
very conveniently by the foreign organisations in Australia as the Australian governments are
more focused on eliminating trade protectionism and policies of restriction. This free trade policy
will affect the economic growth of Wesfarmers as this will allow many non –Australian sectors
of retails to get entry very easily in the Australian market. This makes Wesfarmers have huge
competition.
Social factors- Wesfarmers future growth is affected by the social environment of Australia.
Cultural trends, demographics, and analytics of population are some of the social factors which
play an important role in an organisation's success. Buying in large quantity is preferred by the
Australians, once every week. Having departmental chains of stores and supermarkets in
Australia, it becomes favourable for Wesfarmers (Quain, 2018).
Economic factors- Organisation’s growth is affected by various economic factors including
exchange rates, interests’ rate, and inflation rates. In the Australian market, the service sector
plays a significant role. The service sector contributes mainly to the GDP of Australia. In
Australia, service and finance are the two most essential service organisations. In Australian
markets, the highly profitable position is enjoyed by Wes farmers’ insurance market due to the
importance of service and finance organisations.
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Different new ruling and governing laws govern legal factors- Australian trade system. While
conducting trade Wesfarmers is required to consider and is abide by labour law business law, the
law of resources and many more.
Environmental factors - An integral role is played by ecological sustainability in business
conducting process in Australia. This is helping Wesfarmers in creating consumer values for its
shareholders via engagements of issues of the environment including energy conservation,
environmental pollution, recycling, endangered species, weather, climate change, etc.
Demographic factors- World population growth, changing age structure, changing family
structures and geographic shifts in population are some of the demographic factors which the
Wesfarmers managers have to consider during operations and decision-making.
There are various internal factors within the organisation that affects the functioning and
operations of Wesfarmers. These internal factors can easily be controlled in comparison to the
external factors. Customers, competitors, suppliers, dealers and distributors, investors and the
general public are included in this. Financial changes or issues, employee morale, management
changes, and cultural changes are some of the internal environmental factors.
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Identify the problem/opportunity for IS/IT
Wesfarmers is going to implement modern information technology at their workplace. This will
help the company in numerous ways. The efficiency of the corporation gets increased
automatically by applying the concepts of digital technologies. There are some benefits of using
IT in the workplace; some of the key benefits are the following:
 Communication: The rate of communication becomes so faster by using modern
technology. Wesfarmers can use social media platforms for increasing the existing scale
of communication within their customers and workers. For example, they can use
applications like Facebook, Whatsapp, Twitter, Messenger, etc. Workers can send official
messages over such applications and address all the senior managers and other members
at a single platform.
 Efficiency: Streamlined workflow systems, collaborative workspaces, and shared storage
can help in increasing efficiency in the workplace. This allows staff members to process a
great level of work in less period. Information technology systems are used in automating
the routine tasks. Thus the task of data analysis goes easier (Heller Baird and Parasnis,
2011). The data can now be stored and accessed more easily can be effectively retrieved
for future use. The modern technology can support in answering or responding the
customers via email in a real-time chat session.
 Competitive advantages: By adopting resources of the information system, Wesfarmers
can maintain competitive advantages over their challengers. They can use a low-cost
product strategy and look for the solutions of information technology for reducing their
costs along with gaining great productivity.
 Economic Efficiencies: By using modern information technology, Wesfarmers can also
gain efficiencies in the context of the economy. The company is now able to gain
competitive advantages; therefore it is obvious that huge profitability can be easily gained
by the venture. As a fruitful result, the economic situation of the corporation will get
improved in an effective manner by using an information system.
Apart from the opportunities, some of the problems get occurred after using the information
system. For example, by using modern technology, the workers get lazy and are not responding
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properly towards their responsibilities. Thus, the efficiency of the workforces is getting lowered
due to the use of digital technologies. Another issue is related to time consumption; since by
using social media for communication, employees are wasting more time in doing their tasks like
chatting with their friends, family members, and other relatives. This as a bad result wasting the
precious time of enterprise. This is not good for the corporation’s growth. Thus, managers of
Wesfarmers should make certain rules and regulations regarding using social media applications.
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Justify your choice of the proposed system (including cost/benefit analysis plus at least one
other feasibility studies); clearly explain how the information system that you are
proposing will support the strategic goals of the organisation
Wesfarmers is going to use Customer Relationship Management at their workplace. This is an
approach which is used for managing the interaction of the firm with the potential and current
customers. This system uses data analysis regarding the history of customers to improve the
business relationship with the users. This mainly focuses on the retention of customers for a long
period so that sales rate gets automatically increased (Rai, 2012). There are some benefits of
using CRM (Customer Relationship Management) which can be easily understood by examining
below-mentioned points:
 One of the important aspects of CRM is its system which compiles the information or
data from a range of several communication channels, involving website of the firm,
email, marketing material, live chats, telephone, and social media.
 By using CRM, Wesfarmers can learn more regarding their expected customers and fulfil
their needs in better ways.
 This also helps in enhancing the relationship with customers so that the company can do
more business with the same user and improve their business in an effective manner
(Nas, 2016).
 CRM software usually records customer contact information such as website social
media profile, email, telephone and many more. This also pulls in various other
information automatically like recent news regarding the activities related to venture. It
can store details like personal preferences of users on communications.
 The CRM system used to organise the information for the company and provide it whole
records so that they can understand their relationship with expected customers.
 CRM software helps in improving the relationship with customers by creating a 360-
degree view of the users. This can be done by capturing their interactions with the
commerce and also by surfacing the data required to have good conversations with the
end users.
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Cost-benefit analysis of CRM
A cost-benefit analysis refers to a process by which a firm can analyse their business decisions
about CRM execution. The advantages of a commerce-related action are summed up and after
that costing affiliated with taking that action are subtracted. For example, Wesfarmers is making
profitability after implementing the CRM software. The relationships with the expected
customers are improving day by day (Salesmantra.com, 2019). This, as a result, helps in
increasing the sales rate of the company. This has been inspected that they have earned a profit
of around $75000 after implementing CRM software at their workplace. But costing of executing
CRM software is around $35000. Thus, the company gains a cost-benefit analysis of $40000.
Thus, the decision of using this software is quite beneficial since Wesfarmers is earning a profit
of $40000 after executing CRM at their working site.
How the proposed CRM will support the strategic goals of the organisation
Customer Relationship Management is contributing a lot in attaining the aims and targets of the
Wesfarmers. The customer base of this venture gets raised dramatically by using CRM. As an
outcome, the goals of the firm are being achieved that is seeking the attention of more and more
customers towards the business (Bansal and Dhawan, 2017). The company also wants to make a
healthy and positive relationship with their expected users. And this goal of the venture has been
achieved successfully. Another goal of Wesfarmers is to earn huge amount of profit after using
CRM software at their organisation. This has been done since the company has earned a profit of
$40000 after executing similar software in the workplace.
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Customer Relationship Management system Design -
There are two factors which affect the success of any business. The first one includes a
continuous supply of services and products and the second one includes whether there is product
demand. Customer Relationship Management system is one of the effective solutions to these
issues.
In designing the CRM System, the following steps must be followed to design the CRM
software.
1. Write specific goals and tasks which are wanted to be achieved through CRM system-
Designing process will be more productive if the end goals and intermediary points are defined.
The decision must be made regarding if more attention will be on keeping the existing customers
engaged or acquiring the new customers.
2. The needs of the people who will use the software to be considered-
Fast communication can be allowed through CRM systems, between different departments.
These departments can use CRM system in their way. Before finalising the design of system,
there should be a formal talk with the different departments about their requirements. HR team
can use the CRM system for speeding up of recruitment. Communication tools are used by the
customer service team to create a reliable intermediary between the company and customers, and
data analysis tools are required by the sales and marketing team (Nguyen, 2014).
3. For surpassing competitors, new and developing technologies should be used-
In designing a CRM system, latest technologies should be used. Cloud storage, mobile
applications, and integration with social media are few examples of innovation in the CRM
system.
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Customer Relationship Management system analysis-
CRM analytics analyses customer data and helps in facilitating better decision-making. Data
mining can be employed, and online analytical processing is considered in CRM analytics. The
products have been developed by many software companies to perform customer data analysis
and analytics is a component of many CRM systems (Rouse, 2019). Data which is mined is
understood and is used by CRM analytics. Following ways are used in CRM analytics-
 Customer segmentation grouping
 Personalisation 360-degree customer view will be used in this.
 Profitability analysis and customer value- Proper understanding of which customer
contribution is highest in profits and how resources are dedicated to those customers.
 Measuring and tracking escalation
 Predictive modelling
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