Da Nang University of Economics

Sunderland University Program

Unit 16:
Managing Communications, Information and Knowledge

(MCKI)

Lecture 6
Forming Business Relationship
1

Where are we?

MCKI
Business Data,
Information and
Knowledge

Decision
Making

Types of
Information
And Knowledge

(I)
Information
and
Knowledge

Sources of
Data and
Information

Forming
Business
Relationships

Types of
Information
Systems

Increasing
Personal
Networking

Agenda
Building relationship
Relationship with customers
Relationship with suppliers

Building Relationship

Why relationship is needed?

Commitments
Respect confidentiality
Demonstrating an interest in their work-related
issues

Stakeholder contacts
Stakeholders are any individual or group who can affect or is
affected by the achievement of the firms objectives.

Primary stakeholders: their interests are directly

linked to the firm
(investors, employees, customers, suppliers, etc)
Secondary stakeholders: they have indirect
influence on the organization
(media, regulators, pressure groups)

Stakeholder contacts
How to network with stakeholders:

Talk to them regularly; Get to know them

Attend the meetings; AGMs
Attend community
Attend professional events (conferences, seminars)
Offer support to other organizations
Use your expertise to help decision-makers of
stakeholders
Always have your business cards and brochures
Use email and Internet to network with them.
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Relationship with Customers

(Customer Relationship)
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Relationship with Customers

What is the objective of customer relationship?

To increase customer Satisfaction

Relationship with Customers

Improve cross-selling opportunities

Build relationship with:

Currently profitable customers

Potentially profitable customers in the future

Customers who will remain with the company for

long term
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Relationship with Customers

How can the company improve Customer
Relation (CR)?

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Relationship with Customers

How can the company improve CR?
1. Know what customers want

What customers want..

What the company produced.

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Relationship with Customers

1. Know what customers want
.

"You can get it in any color you

wish as long as it is black"!

Build your Toyota..

(Henry Ford, on Model-T, 1922)

Ford Motor's model-T

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Relationship with Customers

1. Know what customers want

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Relationship with Customers

1. Know what customers want

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Relationship with Customers

1. Know what customers want

15

Relationship with Customers

1. Know what customers want

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Relationship with Customers

How can the company improve Customer
Relationship?
2. Develop trust

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Relationship with Customers

How can the company improve Customer
Relationship?
3. Record complaints and correct

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Relationship with Customers

How can the company improve Customer
Relationship?
4. Contact with customers in different media

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Relationship with Customers

How can the company improve Customer

Relationship?

Will it be a
Good business
To sell ice cream
To Eskimos?
Why Not? All you need is just
a good customer relationship!20

Relationship with Customers

Observe the following clip about customer service.
Mr. Bean wants to get service in a chinaware shop.
But the shop assistant is on the phone to her friend.
1. How did the customer experienced?
How did he feel?
2. How did customer service staff serve
her customer?
3. How should she have done better for
customer service?
4. What are the consequences of this
situation to customer relationship?
5. What is the impact to the business?
6. Describe characteristics of good
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Relationship with Customers

How can the company improve Customer

Relationship?
5. Use technology
e.g.
Customer
Relationship
Management
system
(CRM)

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Relationship with Customers

How can the company improve CR
IT
(Customer
Database)

A sample
Model of
CRM system
in a Bank

Business
Operations
(e.g.Bank
counter)
Customers

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Relationship with Suppliers

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Relationship with Suppliers

Company-Supplier relationship is
interdependent
Win-Win

Benefits:

Increase ability to create value for both sides

Flexibility and speed in responding
customer needs and changing market
Optimisation costs and resources
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Relationship with Suppliers

What can the company gain from good
supplier relationship?

Short-term gains long-term strategic

achievements
Share resources, information and expertise
Share future plans
Identifying and selecting key suppliers
Open, clear, and effective communications
Establish joint developments
Inspire, encourage and recognize suppliers
achievements
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The role of Information Systems in

Supplier Relationships
Traditional systems
CEO

Finance
Dept.

Marketing
Dept.

Production
Dept.

Separated systems /
applications
Not centralized
Difficult to control
HR
information
Dept.
Difficult to synchronize
Information is not
shared

Separated Information Systems

and applications
(Islands)

Application islands do
NOT support process
integration
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The role of Information Systems in

Supplier Relationships
Enterprise Systems
(ERP: Enterprise Resource Planning)

Integrated applications /
modules
Centralized database
Easy-to-control
information
Synchronized information
Information is shared and
integrated across
processes and functions

Enterprise systems feature a set of integrated software modules and a central database
that enables data to be shared by many different business processes and functional areas
throughout the enterprise.
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Collaborative Planning within the

Enterprise

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Collaborative Planning in the extended

Enterprise for better relationship

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31

The Business Information Value Chain

Source: Laudon and Laudon, Management Information Systems Managing the Digital Firm,
9th Ed., Prentice Hall
32

Information Systems are more than

Computers

Source: Laudon and Laudon, Management Information Systems Managing the Digital Firm,
9th Ed., Prentice Hall
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