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1 Da Nang University of Economics Sunderland University Program Unit 16: Managing Communications, Information and Knowledge (MCKI) Lecture 6 Forming Business Relationship
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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
