Customer Centric Business Models - Two Steps Beyond Customer Relation Management

Table of Contents

1 Introduction

1.1 Introductory background

1.2 Research question and aim of the dissertation

1.3 Methodology

1.3.1 Identify the broad area

1.3.2 Select the topic

1.3.3 Decide the Approach

1.3.4 Formulate the Plan

1.3.5 Collect the Information

1.3.6 Analyse the Data

1.3.7 Present Findings

1.4 Limitations

1.4.1 Time

1.4.2 Assumptions

1.4.3 Secondary data

1.4.4 Primary data

2 Literature review

2.1 70ies and earlier: Black Fords

2.2 80ies: In search of excellence

2.3 90ies: Core competence

2.4 Y2K: Cost cutting

2.5 Summary

3 Step One: Customer Relation Management

3.1 From Marketing to CRM

3.2 Market conditions

3.3 Definitions

3.4 CRM sectors

3.4.1 Analytical CRM

3.4.2 Operational CRM

3.4.3 Communicational CRM

3.5 Success factors & critique

3.6 Summary

4 Step Two: Customer centric business models

4.1 From CRM to CCBM

4.2 Crucial requirements

4.2.1 Strategy

4.2.2 Business models

4.2.3 Processes

4.3 Assumed consequences

4.3.1 Organisational structure

4.3.2 Customer value vs. company value

4.3.3 Return on investment

4.4 Success factors & critique

4.5 Summary

5 Step Three: Customer Chain Management

5.1 Supply Chain Processes

5.2 From CCBM to CCM: An attempt to fill the gap

5.3 Summary

6 Survey

6.1 Introduction

6.2 Results

6.2.1 Core competence

6.2.2 Initial processes

6.2.3 Negotiating power

6.2.4 Customer centric index

6.2.5 Customer centric company cluster

6.2.6 Margin & market share

6.3 Summary

7 Conclusion

8 Bibliography

9 Appendices

9.1 Appendix A – The survey

9.1.1 Covering letter

9.1.2 Questionnaire

9.2 Appendix B – Additional calculations

Research Objectives and Themes

The dissertation investigates the evolution of business models in response to changing, customer-driven market conditions, specifically focusing on the process gap between 'Customer Relation Management' (CRM) and 'Supply Chain Management' (SCM) to develop a more integrated 'Customer Chain Management' (CCM) approach.

• Adaptation of business models to rapidly changing, buyer-driven markets.
• Evaluation of evolutionary steps beyond traditional Customer Relationship Management.
• Bridging the process gap between CRM and Supply Chain Management.
• Development of methods to measure customer orientation and its correlation with company profitability.
• Analysis of organizational requirements and success factors for customer-centric business models.

Excerpt from the Book

Summary of Chapters

1 Introduction: Provides the research question, background, methodology, and an outline of the dissertation's structure.

2 Literature review: Situates the research question in a historical context by tracing the evolution of customer-company relationships over the last four decades.

3 Step One: Customer Relation Management: Explores the evolution from marketing to CRM, discusses market conditions, definitions, sectors, and challenges in current CRM approaches.

4 Step Two: Customer centric business models: Illustrates the transition from CRM to customer-centric business models (CCBM), covering requirements, consequences, and success factors.

5 Step Three: Customer Chain Management: Introduces the concept of Customer Chain Management (CCM) as a future approach to connect CRM and SCM processes.

6 Survey: Presents the primary research, including the objective, methodology, and the analysis of collected data regarding company core competencies, processes, and customer orientation.

7 Conclusion: Summarizes the main findings, discusses the validity of the customer-centric approach, and reflects on the future of business models.

Keywords

Customer Centric Business Models, CRM, Supply Chain Management, Customer Chain Management, Business Processes, Customer Orientation, Market Share, Profitability, Value Chain, Customer Lifetime Value, Return on Customer, Customer Centric Index, Business Design, Organizational Structure, SME.

Frequently Asked Questions

What is the core subject of this dissertation?

The dissertation explores the evolution of business models, specifically how companies can transition from traditional Customer Relationship Management (CRM) to advanced, customer-centric models and eventually to an integrated Customer Chain Management (CCM) approach.

What are the primary themes discussed?

The work examines the adaptation of business models to buyer-driven markets, the strategic integration of CRM and SCM, methods for measuring customer orientation, and the organizational changes required to become truly customer-centric.

What is the main goal of the research?

The primary aim is to investigate the "process gap" between CRM and SCM and to discuss the evolution of business processes in a customer-associated context, proposing steps beyond traditional CRM.

What research methodology was employed?

The study utilizes a deductive research approach, combining a comprehensive review of secondary literature with primary empirical research through a survey conducted among managers of German companies.

What does the main body cover?

The main body systematically analyzes the historical development of customer relations, evaluates current CRM practices, proposes customer-centric business models, suggests a path toward Customer Chain Management, and presents findings from a primary survey.

Which keywords best characterize this work?

Key terms include Customer Centric Business Models (CCBM), Customer Chain Management (CCM), CRM, SCM, Customer Lifetime Value, process gap, and business process reengineering.

How does the author define the 'process gap'?

The author identifies a hypothetical gap between CRM, which acts at the front end of the value chain, and SCM, which manages the back end, arguing that these two systems are currently uncoordinated despite needing integration to satisfy customer requirements.

What were the significant findings regarding SME profitability?

The survey results revealed an unintentional finding that, at least for Small and Medium Enterprises (SME), focusing on a small market niche is more profitable than broader market coverage.