Information Quality in Customer Relationship Management Systems Utpal Bose Herb Rebhun Shohreh Hashemi University of Houston-Downtown ISECON November 3, 2006

ISECON Customer Centricity Businesses must provide products and services on the basis of personal knowledge of customers. Businesses must provide products and services on the basis of personal knowledge of customers. Businesses must establish and maintain a well- defined relationship with their customers. Businesses must establish and maintain a well- defined relationship with their customers. Customer relationships can be developed successfully only if there is accurate and precise information about customer, product and services, and the market. Customer relationships can be developed successfully only if there is accurate and precise information about customer, product and services, and the market.

ISECON Customer Relation Management CRM is about creating systems that allow a more intelligent and specific relationship between a company and any individual customer. CRM is about creating systems that allow a more intelligent and specific relationship between a company and any individual customer. An important objective of CRM is to retain existing customers by knowing them, understanding what they want, and satisfying their needs through a high level of service that is personalized as much as possible. An important objective of CRM is to retain existing customers by knowing them, understanding what they want, and satisfying their needs through a high level of service that is personalized as much as possible. Accurate, complete, and relevant customer information is the core of CRM. Accurate, complete, and relevant customer information is the core of CRM.

ISECON Obstacles Facing CRM Customer data does not reflect real world conditions. Customer data does not reflect real world conditions. Customer data can be captured at many points. Customer data can be captured at many points. Data is scattered across various divisions and stored in isolated databases, many with fragmented records. Data is scattered across various divisions and stored in isolated databases, many with fragmented records. Inconsistencies, omissions, and inaccuracies occur in customer information Inconsistencies, omissions, and inaccuracies occur in customer information

ISECON Other Hindrances Insufficient and ineffective data inspection procedures and practices Insufficient and ineffective data inspection procedures and practices Uncertainty regarding what constitutes the information resource that should be maintained Uncertainty regarding what constitutes the information resource that should be maintained The multiplicity of potential problems with information The multiplicity of potential problems with information The inadequate documentation of data definitions and meaning The inadequate documentation of data definitions and meaning

ISECON Major Problems Data not easily used and understood by the data user Data not easily used and understood by the data user Inadequate training of data producers and information users Inadequate training of data producers and information users The uncertainty regarding the seriousness of deficiencies The uncertainty regarding the seriousness of deficiencies The perceived lack of information quality importance The perceived lack of information quality importance

ISECON Hypothesis 1 Hypothesis 1 Controlling the overproduction of information is expected to improve the quality of information in an organization. Controlling the overproduction of information is expected to improve the quality of information in an organization. Hypothesis 2 Hypothesis 2 Controlling the overproduction of information is expected to reduce the costs of storing information. Controlling the overproduction of information is expected to reduce the costs of storing information. Hypothesis

ISECON Hypothesis 3 Hypothesis 3 Controlling the overproduction of information is expected to reduce the opportunity cost of missed customer relationships. Controlling the overproduction of information is expected to reduce the opportunity cost of missed customer relationships. Hypothesis 4 Hypothesis 4 Insufficient determination of system requirements will cause development of hidden information systems to process customer data, leading to higher costs and poor customer service. Insufficient determination of system requirements will cause development of hidden information systems to process customer data, leading to higher costs and poor customer service. Hypothesis – Cont.

ISECON Hypothesis 5 Hypothesis 5 Lack of formal procedures for company-wide standards for data definition will increase the cost of processing of customer data. Lack of formal procedures for company-wide standards for data definition will increase the cost of processing of customer data. Hypothesis Cont.

ISECON Conclusion Poor quality of information causes poor customer service, customer alienation, lost customer lifetime value, and increased cost of data storage and processing. Poor quality of information causes poor customer service, customer alienation, lost customer lifetime value, and increased cost of data storage and processing. We propose that CRM requires a comprehensive, unified view of the corporate information processing requirements concerning customers and the customer data collection arrangement in order to serve the customers better and reduce the cost of doing so. We propose that CRM requires a comprehensive, unified view of the corporate information processing requirements concerning customers and the customer data collection arrangement in order to serve the customers better and reduce the cost of doing so.

Information Quality in Customer Relationship Management Systems Utpal Bose Herb Rebhun Shohreh Hashemi University of Houston-Downtown ISECON November 3, 2006