Customer relationship management (challenges of information technology)

The development of modern information is a complex process. It needs knowledge, know-how, skills and technology in almost all the disciplines. The developer, the designer and the user must be knowledgeable in their respective area of functions and responsibilities. As information systems & technology demanded for on-line real-time usage in business management, its development requires thorough understanding of the business and the manner in which it is executed. Further, different technologies, other than the IT, are used in the businesses which are used for providing input to the information systems. As the businesses are getting automated, the information systems are undergoing cultural changes making them more sensitive to the business needs. It demands flexibility in design and reliability in its use. Customer relationship management (CRM) is a combination of people, processes and technology that seeks to understand a company's customers. Managing a successful CRM implementation requires an integrated balanced approach to technology and managing relationships by focusing on customer retention and relationship development. CRM has evolved from advances in information technology and organizational changes in customer-centric processes. Understanding customer lifetime value, having inadequate top management support, underestimating the change management involved, not re-engineering business processes, and underestimating the difficulties in data mining and data integration. Current competitive challenges induced by globalization and advances in information technology have forced companies to focus on managing customer relationships, and in particularly customer satisfaction, in order to efficiently maximize revenues, minimize the waste and least time taken and highest durability of the product. Since CRM is a concept enabled by technology this topics is closely connected Customer Relationship Management as a holistic concept for the private sector to start, maintain and optimize relationships to make customers more loyal/profitable - in sum to improve the relationship with the consumers. In this paper, I review the latest findings in CRM research from the private sector and connect it to the public sector.