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Unit 7: Electronic-CRM

State whether the following statements are true or false: Notes
7. e-CRM is different from traditional concept of customer service.
8. Application servers do not drive the pure Internet CRM applications.
9. CSS applications are helping organisations make a transition from cost centres to profit
centres.
10. ERP attempts to bridge the gap between the SCM and CRM.

7.3 Barriers to Effective Customer Internet Adoption

As with any information processing system, security and reliability are important considerations.
When organizations choose to rely on OLTP, operations can be severely impacted if the transaction
system or database is unavailable due to data corruption, systems failure, or network availability
issues. Additionally, like many modern online information technology solutions, some systems
require offline maintenance which further affects the cost-benefit analysis.

The lure of doing business on the Internet is strong for most companies. In 2008, Internet retails
sales totalled almost US $142 billion, according to the U.S. Census Bureau. While online business
is a segment that companies may want to explore, making an informed decision means
understanding the disadvantages of doing business on the Internet.

Laws

When you do business on the Internet, you are subject to the laws of the countries where
customers can access your website, according to the Entrepreneur website. Your Internet business
is subject to privacy laws in the United States and overseas, copyright laws worldwide and tax
laws that normally depend on where your company is located. If you have materials that should
not be accessed by people under a certain age, you have to follow certain legal provisions before
your site can go live. Consult an attorney knowledgeable in international commerce law as you
create your website or you could be opening yourself up for lawsuits and legal action by
domestic and foreign governments.

Lack of Trust

Consumers are sometimes wary of purchasing products online, Rod Kurtz writes for the
Bloomberg Businessweek website. Become certified by one of the better-known online security
organizations such as Verisign and the non-profit Internet watchdog organization TRUST. You
cannot establish a rapport with customers in person when you run an Internet business, so you
need to do what you can to establish trust in other ways. Even with all of the precautions you
take, a segment of the buying public may not feel comfortable providing its payment information
on the Internet.

Copycats

Since the Internet reaches millions of people every day all over the world, it is essential to stay
ahead of the competition. One of the problems with doing business on the Internet is that it can
be expensive to copyright or patent your website ideas globally, Internet business advisor Steve
Ma. Renya writes on the Power Home Biz website. If you work hard and create a successful
Internet business, there is a good chance that someone will try to copy it and draw business
away from you. The inability to protect your ideas can be a disadvantage of doing business on
the Internet.

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