Customer Relationship Management (CRM)

• Customer Relationship Management (CRM) systems manage and nurture a firm's interactions with current and potential customers.

• AIS Role: AIS supports CRM by collecting and analyzing data on customer preferences, purchase history, and feedback. This information helps firms to tailor their marketing strategies, improve customer satisfaction, and increase sales. CRM systems can also identify the most profitable customers, allowing firms to focus their resources on retaining and expanding these relationships .

Enhancing Collaboration with External Partners

• Integration with External Systems: AIS facilitates seamless integration with external systems used by suppliers and customers. This integration ensures that data can be shared in real-time, improving coordination and reducing the chances of errors.

• Communication: AIS enables better communication with external partners by providing a platform for sharing information and updates. This leads to more effective collaboration and quicker resolution of issues that may arise during the supply chain or customer service processes .

Examples and Case Studies

• Starbucks: Starbucks uses its AIS to track inventory levels, manage supplier relationships, and ensure that each store has the necessary supplies. This system supports efficient operations and helps maintain high customer satisfaction by ensuring product availability .

• Royal Bank of Canada: The bank uses CRM analytics to understand customer needs better and to develop targeted marketing campaigns. This has helped the bank to increase customer retention and generate additional revenue .

Benefits of AIS in External Business Processes

• Efficiency: By automating and streamlining processes, AIS reduces manual effort and the likelihood of errors, leading to faster and more reliable operations.

• Cost Savings: Improved inventory management and logistics reduce the costs associated with carrying excess inventory and expedite deliveries.

• Customer Satisfaction: Better management of customer relationships through CRM systems leads to higher customer satisfaction and loyalty, ultimately driving increased sales and profitability.

In summary, AIS facilitates the firm's external business processes by enhancing the efficiency and effectiveness of supply chain and customer relationship management. This integration leads to cost savings, improved customer satisfaction, and overall better performance of the firm in its interactions with external stakeholders.