ie381 management information systems chosun daily -crm ie381 management information systems korean...
TRANSCRIPT
IE381 Management Information SystemsIE381 Management Information Systems
Korean SIS caseChosun Daily -CRMChosun Daily -CRM
IE381 Management Information SystemsIE381 Management Information Systems
Korean SIS caseChosun Daily -CRMChosun Daily -CRMPOSTECHPOSTECH Class Term Project Class Term Project
Spring 2006Spring 2006
MIS Group #5 MIS Group #5
POSTECHPOSTECH Class Term Project Class Term Project Spring 2006Spring 2006
MIS Group #5 MIS Group #5
ReadeReaderr
ReadeReaderr
CustomeCustomerr
CustomeCustomerr
JournalisJournalismm
JournalisJournalismm
ContentsContents
InvestigationInvestigationInvestigationInvestigation
DesignDesignDesignDesign
ImplementationImplementationImplementationImplementation
EvaluationEvaluationEvaluationEvaluation
Future WorkFuture WorkFuture WorkFuture Work
INVESTGATIONINVESTGATIONINVESTGATIONINVESTGATION
DesignDesignDesignDesign
ImplementationImplementationImplementationImplementation
EvaluationEvaluationEvaluationEvaluation
Future WorkFuture WorkFuture WorkFuture Work
Company Company
BackgroundBackground
Company Company
BackgroundBackground
ProblemsProblemsProblemsProblems
Chosun Daily BackgroundChosun Daily Background
NumberNumber
OneOne
In KoreaIn Korea
NumberNumber
OneOne
In KoreaIn Korea
ProblemProblem
Localized Offline Customer DatabaseLocalized Offline Customer DatabaseSpend lots of money in customer acquisitionSpend lots of money in customer acquisitionNo direct channel to customersNo direct channel to customersNo managed information on long term customers.No managed information on long term customers.
Localized Offline Customer DatabaseLocalized Offline Customer DatabaseSpend lots of money in customer acquisitionSpend lots of money in customer acquisitionNo direct channel to customersNo direct channel to customersNo managed information on long term customers.No managed information on long term customers.
I moved to my I moved to my new new
apartment apartment and I have and I have
subscribe to subscribe to Chosun Daily Chosun Daily
againagain
I moved to my I moved to my new new
apartment apartment and I have and I have
subscribe to subscribe to Chosun Daily Chosun Daily
againagain
I am a life I am a life time time
customer of customer of Chosun Daily, Chosun Daily,
but they but they don’t give me don’t give me any discount.any discount.
I am a life I am a life time time
customer of customer of Chosun Daily, Chosun Daily,
but they but they don’t give me don’t give me any discount.any discount.
InvestigationInvestigationInvestigationInvestigation
DesignDesignDesignDesign
ImplementationImplementationImplementationImplementation
EvaluationEvaluationEvaluationEvaluation
Future WorkFuture WorkFuture WorkFuture Work
ScopeScopeScopeScope
PlanningPlanningPlanningPlanning
Key Success Key Success
FactorFactorKey Success Key Success
FactorFactor
InfrastructureInfrastructureInfrastructureInfrastructure
Scope (May 2003 – May 2005)
Scope (May 2003 – May 2005)
Infrastructure buildingInfrastructure building
Integration of localized customer Integration of localized customer DBDB
Establishment of Online Customer Establishment of Online Customer Loyalty ProgramLoyalty Program
Classification of articles suited to Classification of articles suited to detailed customer segments detailed customer segments
Infrastructure buildingInfrastructure building
Integration of localized customer Integration of localized customer DBDB
Establishment of Online Customer Establishment of Online Customer Loyalty ProgramLoyalty Program
Classification of articles suited to Classification of articles suited to detailed customer segments detailed customer segments
Planning (2 Steps)Planning (2 Steps)
Infrastructure First!Infrastructure First!Infrastructure First!Infrastructure First! CRM Implementation Next!CRM Implementation Next!CRM Implementation Next!CRM Implementation Next!
IntegratioIntegrationn
IntegratioIntegrationn
StandardizatiStandardizationonStandardizatiStandardizationon
EfficiencEfficiencyy
EfficiencEfficiencyy
StabilityStabilityStabilityStabilityCapacitCapacityy
CapacitCapacityy
FlexibilityFlexibilityFlexibilityFlexibility
Key Success Factor in CRM
Key Success Factor in CRM
Customer Customer DatabaseDatabase
Customer Customer DatabaseDatabase
Infrastructure Infrastructure
Branch/OfficeBranch/OfficeBranch/OfficeBranch/Office
Customer CenterCustomer CenterCustomer CenterCustomer Center
SalesSalesSalesSales
PublishingPublishingPublishingPublishing
Integrated BillingIntegrated BillingIntegrated BillingIntegrated Billing
InternetInternetInternetInternet
Premium CustomerPremium Customer
HomepageHomepage
Premium CustomerPremium Customer
HomepageHomepage
External DataExternal DataExternal DataExternal Data
DataData
ExtractionExtraction
ConversionConversion
DataData
ExtractionExtraction
ConversionConversion
DWData
Integration
DWData
Integration
CustomerCustomer
AnalysisAnalysis
CustomerCustomer
AnalysisAnalysis
Multi-Multi-
dimensionaldimensional
AnalysisAnalysis
Multi-Multi-
dimensionaldimensional
AnalysisAnalysis
OLAP SystemOLAP SystemOLAP SystemOLAP System
Data AnalysisData Analysis
Executives& Sales
& Publishing
Executives& Sales
& Publishing
MartMartMartMartCampaignCampaign
ManagementManagement
CampaignCampaign
ManagementManagement
CTICTICTICTI
BranchBranchBranchBranch WebWebWebWeb EmailEmailEmailEmail
CustomerCustomer
InvestigationInvestigationInvestigationInvestigation
DesignDesignDesignDesign
ImplementationImplementationImplementationImplementation
EvaluationEvaluationEvaluationEvaluation
Future WorkFuture WorkFuture WorkFuture Work
Stepwise Implementation Stepwise Implementation
STEP 1STEP 1 STEP 2STEP 2STEP 2STEP 2 STEP 3STEP 3STEP 3STEP 3 STEP 4STEP 4STEP 4STEP 4
Data Collection
Data Collection
Customer Information Integration
Customer Information Integration
Data Extraction
Data Extraction
Data Refinement
Data Refinement
ApplyCRM
ApplyCRM
EstablishCRM
Strategy&
Implementation
EstablishCRM
Strategy&
Implementation
Subsidiary CompaniesSubsidiary Companies
PROBLEMPROBLEM
CustomerCustomer
informationinformation
is not is not
integratedintegrated
PROBLEMPROBLEM
CustomerCustomer
informationinformation
is not is not
integratedintegrated
Increase Increase Transition Transition
Cost Cost
Increase Increase Transition Transition
Cost Cost
Keep Keep TransferredTransferred CustomersCustomers
Keep Keep TransferredTransferred CustomersCustomers
Differentiate Differentiate
Customer Customer
Profitability Profitability
(Distinguish (Distinguish
Long-term Long-term
Customers)Customers)
Differentiate Differentiate
Customer Customer
Profitability Profitability
(Distinguish (Distinguish
Long-term Long-term
Customers)Customers)
IntegrationIntegration
SingleSingle
Sing OnSing On
SingleSingle
Sing OnSing On
IntegratedIntegrated
Billing SystemBilling System
IntegratedIntegrated
Billing SystemBilling System Create a DatabaseCreate a DatabaseCreate a DatabaseCreate a Database
AnalysisAnalysisAnalysisAnalysis
Customer SelectionCustomer SelectionCustomer SelectionCustomer Selection
Customer TargetingCustomer TargetingCustomer TargetingCustomer Targeting
Relationship Relationship
MarketingMarketing
Relationship Relationship
MarketingMarketing
MetricsMetricsMetricsMetrics
++++
++++
Customer InformationCustomer Information
BanksBanks
TelecomTelecom
RetailRetail
BanksBanks
TelecomTelecom
RetailRetail
AirlinesAirlines
Packaged GoodsPackaged Goods
DrugsDrugs
AirlinesAirlines
Packaged GoodsPackaged Goods
DrugsDrugs
PersonalPersonal
ComputersComputers
InternetInternet
InfrastructuresInfrastructures
PersonalPersonal
ComputersComputers
InternetInternet
InfrastructuresInfrastructures
InteractionInteraction
FrequencyFrequencyInteractionInteraction
FrequencyFrequency
Customer InteractionCustomer InteractionCustomer InteractionCustomer Interaction
HighHighHighHigh
LowLowLowLow
DirectDirectDirectDirect IndirectIndirectIndirectIndirect
Stepwise Implementation Stepwise Implementation
STEP 1STEP 1 STEP 2STEP 2STEP 2STEP 2 STEP 3STEP 3STEP 3STEP 3 STEP 4STEP 4STEP 4STEP 4
Data Collection
Data Collection
Customer Information Integration
Customer Information Integration
Data Extraction
Data Extraction
Data Refinement
Data Refinement
ApplyCRM
ApplyCRM
EstablishCRM
Strategy&
Implementation
EstablishCRM
Strategy&
Implementation
Customer Retention Program
Customer Retention Program
CRMCRM
SatisfactionSatisfactionCRMCRM
SatisfactionSatisfaction
CustomerCustomer
ServiceServiceCustomerCustomer
ServiceServiceCustomizationCustomizationCustomizationCustomization
Frequency/Frequency/
LoyaltyLoyalty
ProgramProgram
Frequency/Frequency/
LoyaltyLoyalty
ProgramProgram
RewardsRewards
ProgramProgramRewardsRewards
ProgramProgramCommunityCommunity
BuildingBuilding
CommunityCommunity
BuildingBuilding
Create a DatabaseCreate a DatabaseCreate a DatabaseCreate a Database
AnalysisAnalysisAnalysisAnalysis
Customer SelectionCustomer SelectionCustomer SelectionCustomer Selection
Customer TargetingCustomer TargetingCustomer TargetingCustomer Targeting
Relationship Relationship
MarketingMarketing
Relationship Relationship
MarketingMarketing
MetricsMetricsMetricsMetrics
Additional service & content providerAdditional service & content provider Additional service & content providerAdditional service & content provider
Tool for Tool for
Collecting Collecting
Further Further
Customer Customer
InformationInformation
Tool for Tool for
Collecting Collecting
Further Further
Customer Customer
InformationInformation
MorningPlus Premium Service
MorningPlus Premium Service
CustomerCustomer
CenterCenterCustomerCustomer
CenterCenterInsideInside
ChosunChosunInsideInside
ChosunChosun
EntertainmentEntertainmentEntertainmentEntertainmentLifeLifeLifeLife
EducationEducationEducationEducation EventEventEventEvent
PremiumPremium
Service forService for
Long TermLong Term
Customers!Customers!
PremiumPremium
Service forService for
Long TermLong Term
Customers!Customers!
Email Email address, address,
preference, preference, age, family age, family
relation relation shipsships
Email Email address, address,
preference, preference, age, family age, family
relation relation shipsships
Intangible Intangible
BenefitsBenefitsIntangible Intangible
BenefitsBenefits
InvestigationInvestigationInvestigationInvestigation
DesignDesignDesignDesign
ImplementationImplementationImplementationImplementation
EvaluationEvaluationEvaluationEvaluation
Future WorkFuture WorkFuture WorkFuture Work
Tangible Tangible
BenefitsBenefits
Tangible Tangible
BenefitsBenefits
Intangible benefits Intangible benefits
Customer RetentionCustomer RetentionCustomer RetentionCustomer Retention
Customer AcquisitionCustomer AcquisitionCustomer AcquisitionCustomer Acquisition
Enhance CustomerEnhance Customer
LoyaltyLoyaltyEnhance CustomerEnhance Customer
LoyaltyLoyalty
Efficiency inEfficiency in
Sales/MarketingSales/MarketingEfficiency inEfficiency in
Sales/MarketingSales/Marketing
Tangible benefitsWhy is a Long Term Customer important?
Tangible benefitsWhy is a Long Term Customer important?
When the customer churn rate is high
Long term customer
1 year 2 years
3 years
Profit
Time
SalesSales
050
100150200250300350400450500
2000 2001 2002 2003 2004 2005
Total Sales
No clear effect in salesNo clear effect in salesNo clear effect in salesNo clear effect in sales
Source: KorChamSource: KorCham
Chosun Daily is Chosun Daily is a private a private company and it company and it tends to reduce tends to reduce sales to avoid sales to avoid taxtax
The newspaper The newspaper industry is industry is losing sales due losing sales due to other to other competitors competitors such as online such as online portalsportals
Chosun Daily is Chosun Daily is a private a private company and it company and it tends to reduce tends to reduce sales to avoid sales to avoid taxtax
The newspaper The newspaper industry is industry is losing sales due losing sales due to other to other competitors competitors such as online such as online portalsportals
InvestigationInvestigationInvestigationInvestigation
DesignDesignDesignDesign
ImplementationImplementationImplementationImplementation
EvaluationEvaluationEvaluationEvaluation
Future WorkFuture WorkFuture WorkFuture Work
ReferenceReference
HP Success StoriesHP Success StoriesChosun Daily CRMChosun Daily CRM
Chosun Ilbo AD Journal 2004 Chosun Ilbo AD Journal 2004 SummerSummer
Chosun Ilbo AD Journal 2005 SpringChosun Ilbo AD Journal 2005 Spring
Korea Press Foundation, Monthly Korea Press Foundation, Monthly Newspaper and BroadcastingNewspaper and Broadcasting
HP Success StoriesHP Success StoriesChosun Daily CRMChosun Daily CRM
Chosun Ilbo AD Journal 2004 Chosun Ilbo AD Journal 2004 SummerSummer
Chosun Ilbo AD Journal 2005 SpringChosun Ilbo AD Journal 2005 Spring
Korea Press Foundation, Monthly Korea Press Foundation, Monthly Newspaper and BroadcastingNewspaper and Broadcasting
Q&AQ&A
THANK YOUTHANK YOU
MIS is One of MIS is One of
the Best Courses in POSTECH!the Best Courses in POSTECH!MIS is One of MIS is One of
the Best Courses in POSTECH!the Best Courses in POSTECH!
AppendixAppendix
AppendixAppendix