exeo_Technology and Disruption CRM_2016.pdf - Technology...

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Technology and Disruption: How the New Customer Relationship Influences the Corporate Strategy To be published in Khare, A., Stewart, B. & Schatz, R. (eds.), Phantom Ex Machina Digital Disruption’s Role in Business Model Transformation. Springer 2016 Andreas Krämer, Thomas Tachilzik and Robert Bongaerts Abstract It is increasingly the case that major changes in the technological environment and customer digital behavior have a significant impact on the way companies manage their customer relationship. Here, the related perspectives of value management are concerned: (a) The design of products and services including the way of interaction with the customer that generate a high customer benefit and (b) the focus of companies on customers with high profit margin and sales potential. The flow of information is also in two directions. Firstly, one information flow refers to data that originates from the customer. Through digitized customer relationship processes, companies receive more detailed and real time data about products and services than was the case earlier – this is a noticeably new situation for industries that formerly had limited contact with the end consumer. Secondly, there is an information flow triggered by the company as it is now easier for enterprises to actively communicate with customers increasingly in real-time and individually. This direct marketing has been revolutionized in a digital and networked world, making a long discussed 1:1 marketing approach feasible. This is an opportunity and a challenge for the corporate strategy at the same time. The ability to extract information from Big Data and evolve smart data becomes a competitive factor: on the one hand tailored products and services can be offered to the customer, while on the other hand the controlling and steering of customer value management in real time is possible. In the first step the paper examines the challenges for CRM in a world of disruptive technology. In the second step it shows how digital transformation changes the flow of information from customer to company and vice versa by looking at different industries. In the third step the influence on corporate strategy is examined and a broader definition of CRM is suggested regarding both aspects, the perspective of the company and the perspective (and perception) of the customer. Keywords : CRM, Internet of Things, Big Data, Customer Value Management, Digital Transformation, Social CRM, Omni Channel Management 1.0 Disruptive Technology and its Challenges for CRM Customer relationship management (CRM) is a business strategy that optimizes revenue and profitability while promoting customer satisfaction and loyalty. The occurrence of disruptive technology is changing the framework for Customer Relationship Management. Figure 1 describes major challenges for CRM looking at the 3C of the strategic triangle (customer, company and competition).
On the one hand customer requirements are constantly growing and often exceed the capabilities of

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