The implementation of profitability dynamics on customer relation management enablers: A system dynamics approach

This research focuses on the profitability through Customer Relationship Management (CRM) enablers in a production firm. The enablers considered for scenario planning are Customer orientation, Customer centric organizational system, and CRM technology. The research methodology used is in accordance to the System Dynamics principles and cybernetics based feedback control system theory. The data is from a production centre manufacturing electronic products. The results have shown that enhancement of Customer orientation rate has a significant increase on Receivable bills and the higher the rate of increase in customer orientation, the higher will be rate of increase of Receivable bills, but it has no significant influence on Net cash flow, Debt payment and Book Value. Customer centric organizational system and CRM technology have moderate effect on these parameters. The managerial implication of the study would be to invest moderately onCRM enablers rate, but have a long term perspective on investment of business performance in terms of profitability enhancement is the focus.