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Da Nang University of Economics

Sunderland University Program

Unit 16:Managing Communications, Information and Knowledge

(MCKI)

Lecture 6Forming Business Relationship

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Where are we?

MCKI

Business Data,Information and

Knowledge

DecisionMaking

Types ofInformation

And Knowledge

Sources ofData and

Information

Types ofInformation

Systems

IncreasingPersonal

Networking

FormingBusiness

Relationships

(I)Information

andKnowledge

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Agenda

Building relationship Relationship with customers Relationship with suppliers

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Building RelationshipWhy relationship is needed? Commitments Respect confidentiality Demonstrating an interest in their work-related

issues

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Stakeholder contacts “Stakeholders are any individual or group who can affect or is

affected by the achievement of the firm’s objectives”.

Primary stakeholders: their interests are directly linked to the firm(investors, employees, customers, suppliers, etc)

Secondary stakeholders: they have indirect influence on the organization(media, regulators, pressure groups)

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Stakeholder contacts

How to network with stakeholders: Talk to them regularly; Get to know them Attend the meetings; AGMs Attend community Attend professional events (conferences, seminars) Offer support to other organizations Use your expertise to help decision-makers of

stakeholders Always have your business cards and brochures Use email and Internet to network with them.

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Relationship with Customers(Customer Relationship)

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Relationship with Customers

What is the objective of customer relationship? To increase customer Satisfaction

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Relationship with Customers Improve cross-selling opportunities

Build relationship with: Currently profitable customers Potentially profitable customers in the future Customers who will remain with the company for

long term

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Relationship with Customers

How can the company improve Customer Relation (CR)?

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Relationship with Customers

How can the company improve CR?1. Know what customers want

What the company produced. What customers want..

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Relationship with Customers1. Know what customers want

"You can get it in any color you wish as long as it is black"!

(Henry Ford, on Model-T, 1922)

Ford Motor's model-T

Build your Toyota..

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Relationship with Customers

1. Know what customers want

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Relationship with Customers

1. Know what customers want

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Relationship with Customers

1. Know what customers want

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Relationship with Customers

1. Know what customers want

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Relationship with Customers

How can the company improve Customer Relationship?2. Develop trust

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Relationship with Customers How can the company improve Customer

Relationship?3. Record complaints and correct

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Relationship with Customers How can the company improve Customer

Relationship?4. Contact with customers in different media

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Relationship with Customers How can the company improve Customer

Relationship?

Will it be a

Good business

To sell ice cream

To Eskimos?

Why Not? All you need is justa good customer relationship!

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Relationship with Customers Observe the following clip about customer service. Mr. Bean wants to get “service” in a chinaware shop. But the shop assistant is on the phone to her friend.

1. How did the customer experienced? How did he feel?

2. How did customer service staff serve her customer?

3. How should she have done better for customer service?

4. What are the consequences of this situation to customer relationship?

5. What is the impact to the business?6. Describe characteristics of good

customer relationship.

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Relationship with Customers How can the company improve Customer

Relationship?5. Use technology –

e.g.

Customer

Relationship

Management

system

(CRM)

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Relationship with Customers How can the company improve CR

A sample

Model of

CRM system

in a Bank

IT (Customer Database)

Business Operations(e.g.Bankcounter)

Customers

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Relationship with Suppliers

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Relationship with Suppliers

Company-Supplier relationship is interdependent

Win-Win

Benefits: Increase ability to create value for both sides Flexibility and speed – in responding customer

needs and changing market Optimisation costs and resources

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Relationship with Suppliers

What can the company gain from good supplier relationship? Short-term gains long-term strategic

achievements Share resources, information and expertise Share future plans Identifying and selecting key suppliers Open, clear, and effective communications Establish joint developments Inspire, encourage and recognize supplier’s

achievements

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The role of Information Systems in Supplier Relationships

Traditional systems Separated systems / applications

Not centralized Difficult to control

information Difficult to synchronize Information is not

shared

Application islands do NOT support process integration

Separated Information Systemsand applications

(Islands)

CEO

Finance Dept.

Marketing Dept.

Production Dept.

HRDept.

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The role of Information Systems in Supplier Relationships

Enterprise systems feature a set of integrated software modules and a central database that enables data to be shared by many different business processes and functional areas throughout the enterprise.

Enterprise Systems (ERP: Enterprise Resource Planning)

Integrated applications / modules

Centralized database Easy-to-control

information Synchronized information Information is shared and

integrated across processes and functions

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Collaborative Planning “within” the Enterprise

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Collaborative Planning in the “extended” Enterprise – for better relationship

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The Business Information Value Chain

Source: Laudon and Laudon, Management Information Systems – Managing the Digital Firm, 9th Ed., Prentice Hall

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Information Systems are more than Computers

Source: Laudon and Laudon, Management Information Systems – Managing the Digital Firm, 9th Ed., Prentice Hall