BA 560 Management of Information Technology
Oct, 18, 2012
Arbor Day Foundation Implements Constituent Relationship Management System
Case Summary
As the Arbor Day Foundation grew, leaders replaced its decades-old legacy system with Microsoft Dynamics CRM to rapidly develop and deploy customized constituent relationship management applications for its many conservation programs.
Questions
1. Why are changes to legacy ISs needed? Why were changes needed at the Arbor Day Foundation?
First, the old legacy IS was designed primarily for interactions with individuals in just a few of its existing outreach programs. As the Arbor Day Foundation grew, there are increasing partners and programs, so it needs to increase a more sophisticated
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Fifth, it will take more application development time to extend the old system.
4. Compare and contrast constituent relationship with customer relationship management.
Constituent relationship management is as group relationship management, whereas customer relationship management is as individual person relationship management. Managing relations with groups can be viewed as B2B transactions and customer relationship management can be viewed as B2C transactions. Business to business (B2B) means both the sellers and the buyers are business organizations. Business to customer (B2C) means the sellers are organizations, and the buyers are individuals.
The main difference between B2B and B2C is who the buyer of a product or service is.
B2B characteristic:
It has a complex and longer purchasing process, and the order can be repetitive and stable. It is focus on relationship management, and B2B need to keep that chain of command in mind. It has higher risk than B2C, because the investment sums are much higher. Purchasing the wrong product or service, the wrong quantity, the wrong quality or agreeing to unfavourable payment terms may put an entire business at risk. Since there are more people involved in the decision making process and technical details may have to be discussed in length, the decision-making process for B2B products is usually much longer than in B2C. Companies seek long term relationships as any experiment with a different brand will have impacts
Sparkle Company is a Nigerian diamond mining company. Sparkle is a joint venture, 50 percent owned by Shine and 50 percent owned by Brighten. Both Shine and Brighten are U.S.-based companies with their functional currency being the American dollar. Sparkle Companies functional currency is that of Nigeria, being the Naira. During 2009, Sparkle had several transactions with its joint venture owners and outside parties. The details of Sparkle’s transactions are three loans, three expenditures, and one revenue stream. The loans the company took out were $1 million from Brighten, $1 million from Shine, and 300 million Naira from a local Nigerian bank. The expenditures
| 2.7-B2C: connecting people with people, everywhere permitted(68)2.8-B2B: marketers, free channels; advertisers with budget, solutions to audience; developers with resource, offer platform(69)
Relationship marketing is very different compared to transactional marketing. Essentially, transactional marketing focuses on getting the customer to buy a certain product and walk away, whilst relationship marketing sees the sale as the first step in the building of a relationship (which is what apple thrives to do).
This is a statistic that makes our hearts sing, because with a solid B2B sales process, it is likely that you can increase the percentage of sales staff that excel, and hence reap greater profits. B2B firms that have a sales process that meets the
4. The B2B e-commerce segment is relatively small compared to the B2C e-commerce segment. Answer: False Level: Medium Page: 170
Technology made online purchasing a very smooth procedure for individuals, for many years and now the buying process for corporate spend usually involves end users purchasing indirect materials from catalogs of contracted suppliers.
However, there are some challenges such as longer buying cycles, or high sales volume, low price pints and many decision makers, the road to B2B success requires a different approach compared to those conventional B2C strategies. These make the two processes differ from each other. B2C is more humanely compared to B2B and make good profits but not a huge some but the trust on B2C is quick which B2b fails to seek along with other pain points.
B&O has four business areas – Audio/Video, B&O Play, Automotive and ICEpower. We decided to focus on the Audio/Video section, because the revenue for the second quarter of 12/13 is MDKK 819 and around 58% = MDKK 476 of this was generated from sales of Audio/Video (B&O Financial report Q2 12/13).
For many years the focus has been on B2C, even though B2B generates more revenue, and arguably/probably has more (financial) potential. Not long ago retail was a sole bearer of eCommerce flag pioneering almost alone in that vast space. Those days are long gone and eCommerce is increasingly becoming not just a reality but a necessity in B2B relations.
When we, at Edfora, set out to design B2B products such as SchoolPAT and HelloApp, the first question to be asked was - “How designing a B2B product should be different from designing a B2C product?”. Ideally, there should be no difference except the targeted user. All the differences in designing a product for the users inside an organization arise out of the differences in the nature of a B2B user vis-à-vis B2C user. Few of them can be listed as below:
Both B2C companies and B2B companies have similar qualities when it comes to their marketing plan. Both types of companies believe in having a strong brand and having a strong positive image of their companies. However, the companies will differ when it comes to the reasons why they feel that having a strong brand will be important to the company. The B2C companies need to have a strong brand in order to maintain and grow the amount of consumers and costumers they have by matching the brand of their known products. Individual consumers can become attached to a certain company solely based on their brand. When it comes to B2B companies having a strong brand will only help other companies consider rather or not to make the purchase from Intel but the ultimate decision comes down to many other business factors including how Intel will look
Both B2C companies and B2B companies have similar qualities when it comes to their marketing plan. Both types of companies believe in having a strong brand and having a strong positive image of their companies. However, the companies will differ when it comes to the reasons why they feel that having a strong brand will be important to the company. The B2C companies need to have a strong brand in order to maintain and grow the amount of consumers and costumers they have by matching the brand of their known products. Individual consumers can become attached to a certain company solely based on their brand. When it comes to B2B companies having a strong brand will only help other companies consider rather or not to make the purchase from Intel but the ultimate decision comes down to many other business factors including how Intel will look
Just to get the most pertinent of introductions out of the way: B2B (business-to-business or e-biz) refers to the occasion of a business offering its products and services to other businesses, while B2C (business-to-consumer) refer to instances of a business offering its products and services directly to the consumer. In other words, B2B ventures cater to businesses as their customers, while B2C ventures cater to consumers as their customers. And, while these terms (i.e., B2B and B2C) refer to both offline and online businesses, the terms had only come in to use during the dotcom boom.
First, People who go to the B2C website are seeking for products with particular functions, which means that customers may not ask for a specific brand. In other words, substitutes are available for B2C companies to consider. Second, the switching cost for B2C companies to change to other product suppliers is much lower than physical store because the websites just need to change the pictures and description but physical stores have to re-decorate the whole design.
There are higher amount of revenues from a single client as compared to a B2C company. This means that the expectations are also much