Information System and Management Strategy of Customer Relationship Management

This report explores CRM' s implication on information, business strategy, as well as an issue which will influence successful implementation of CRM . Furthermore, this report analyzes factors which will barrier or promote information flow within organization. Through facilitating information flow across organization, CRM systems can assist organizations to have better understanding of customers, therefore to increase customer satisfaction, boost customer loyalty and maximize customer lifetime value through delivering tailored products and personalized services. Additionally, organizations can use customer knowledge to support business strategy's implementation. However, in order to effectively manage the generation, dissemination and sharing of customer knowledge, which is very crucial in retaining competitive advantage of organization, organizations cannot solely depend on the technology components of CRM and should integrate CRM with knowledge management tools. Moreover, successful implementation of CRM systems requires change of organizational culture.