MIS 2101.702 – Amy Lavin – Fall 2017

Weekly Question #6

Leave your response as a comment on this post by the beginning of class on October 12, 2017. Your response only needs to be about three or four sentences. These weekly questions should reinforce class discussions, readings and show some insight.  

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Here is the question:

This week we talked about SCM & CRM and heard various viewpoints on which systems people use.  Which do you think is more important to an organization?  Why?  Alternatively, we talked about CRMs and how organizations utilize data to learn more about the customers – how do you feel about this?

38 Responses to Weekly Question #6

  • Both SCM and CRM are very important, I would not argue that either is more important than the other. SCM helps to ensure that a company gets the right product on the right self at the right time at the lowest possible cost. CRM collects information about customers to ensure that the business can satisfy the customer. CRM improves customer experience, and increases both efficiency as well as accountability. Both SCM and CRM help to ensure that the business runs more efficiently and help to lower cost. Many companies will need to use a combination of SCM and CRM to better benefit the business. For example, it is important for a company, such as Amazon, to use CRM to help ensure that the right product on the right “self” at the right time at the lowest possible cost.

  • I believe that Supply Chain Management (SCM) and Customer Relationship Management (CRM) systems both play integral parts in the daily operations of organizations; however, depending on whether the company is non-profit or for-profit, each company may see one system as being more useful than the other. A for-profit organization would find a SCM system as more beneficial because they can utilize it to optimize business operations and to minimize overall costs. On the other hand, non-profit organizations would see more value in a CRM system because the data it collects and holds would be useful in bringing in and retaining customers. I personally think it is fantastic that companies are using CRMs to collect data on customers. On top of using it to bring in new customers, the company can also use the data to build a better experience for current customers as well!

  • I am going to have to agree with Lexie and Daniel. Since if you want to start a business you have to worry about the supply chain as well as the target market and who is your target. You can also learn about your target through the customer relationship management system. The reason I believe so is because you have to decide where your products are coming from and how much and everything then you also have to worry about what the customers think and who they are. Supply chain management would have everything dealing with the products and make sure they are good, while the customer relationship management system would ensure customer experience/ relationship.

  • To answer this question properly, there is no one system that is more important then the other. Both CRM and SCM have a very important role in a business and each have there own set of objectives. A business should have both systems in place to get the maximum results and prevail over those companies that only have one of these systems in place. CRMs are constantly advancing in their abilities to reach and satisfy customers, and this is making many consumers uncomfortable, but in my opinion it is very interesting and I am comfortable with it for the most part. It is a little uncomfortable the amount of information the internet can supply of you, but it is very cool how a persons searches and ads will be customized to their needs and wants.

  • I believe that neither SCM or CRM are better than the other in terms of what is better for an organization. Supply chain management helps make sure that a company operate efficiently at their lowest cost, while customer relationship management gathers information and other data to allow them to satisfy their customers as best they can. Both play an important role and can be used together to satisfy a customer’s needs as efficiently as possible. This allows a company to help build a better relationship with their consumers.

  • Both CRM and SCM are significantly important to any type of organization. Customer relationship management has a goal of customer retention and therefore gathers the data they need about a customer to satisfy and build a relationship with them. Supply chain management makes it possible for customers to consume goods based off SCM flow of goods and have the ability to minimize costs. CRM’s using customer data definitely will help organizations retain their customers. When you have information about your customers, it makes the experience more personable and you are able to offer or suggest things to your customers based off the information you know about them.

  • When it comes to whether CRM or SCM is better in terms of organization, I would have to agree with my peers that they are both equally important. They do have different outcomes; SCM generates low costs the company should be using while CRM tracks systems data. Each outcome of the systems has a positive effect on a company. When it comes to choosing one that is better for a company, it would depend on the companies wants and needs. If a company is having a hard time keeping budgets low, then SCM is the best choice, while if a company is looking for a system to organize and track data, then CRM is the best choice.

  • In my opinion, i think that CRM and SCM both play equally important roles. In order for a business to be greatly successful, both need to be put in place. I believe that having them both in place will just increase everything in a positive way. Both ensure that a comp[any functions properly. SCM is oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer while CRM refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle. Both are equally as important and are very beneficial to businesses.

  • I also agree that both SCM and CRM play important roles in a successful business. Supply Chain Management has to oversee all the information, materials, and products available. Customer Relationship Management analyzes data to offer better strategies for the customer life cycle. I feel that companies need to obtain information on their customers in order to better appeal to customers and what they may want or need. While there is a line that should not be crossed when it comes to how and where companies look to gather information. I do think that once you put something online for the public to see, you no longer have a say in who uses that information.

  • Like most of the other replies, I believe that SCM and CRM are both vital to any successfully run business. A company that utilizes SCM will be reducing their costs and running their business more efficiently. A company that is using a CRM will be able to collect information on potential customers and find products and deal that are likely to interest them. The SCM reduces cost, while the CRM increases the likelihood of customers finding and buying what they want from the company. CRM could potentially increase the service revenue of the company, so it could be saving money on one end, and making more money on the other. I think CRM’s are good for business and can be good for the business and the customers. There are many benefits to them, but as a customer, I would not want all of my information to be collected by any form of technology. Systems saving that information can be convenient at times, but in many scenarios I don’t want to see my information being used on any kind of advertising while I am online. For example, if I am looking at shoes on finishline.com, then I will probably see the exact shoes I was looking at in an advertisement later that day while I am on another website.

  • This week we talked about SCM & CRM and heard various viewpoints on which systems people use. Which do you think is more important to an organization? Why? Alternatively, we talked about CRMs and how organizations utilize data to learn more about the customers – how do you feel about this?

    I think that both SCM and CRM implementation are crucial to an organization. Single handedly, an SCM will save the company money, and a CRM will help a company get to know their customers. I do not think one is more important to an organization than the other, because both systems offer huge rewards to an organization. However, if the organization’s overall goal is to create more revenue, I would choose a CRM system. Knowing their customers both exsisting and potential can help the company market and develop products to keep them loyal to their company, and in turn creating more revenue, and maybe make up for the money that would be saved with an SCM system. I think the opportunity for organizations to be able to utilize CRMs to gain information on their customers for the purpose of generating revenue is crucial. It’s a little scary that our information is so public for companies to use in this manner, but if the data is not used maliciously, the customer is happier and the company is more efficient.

  • Supply chain management helps ensure the company has the materials and financial resources it needs to produce goods and services in a timely manner and ensure product availability thereby allowing them to manage costs and improve profit margins. Customer relationship management provides companies with knowledge of their customers. Knowing your customer and knowing their needs allow a company to better service and market to them. Understanding what the customer needs are is essential if you want to effectively utilize SCM systems. Without CRM, you may be stocking up on the wrong materials and without SCM, you may not be able to get the product to the customer in a timely fashion.
    I feel CRM can be beneficial to the company and the customer when used in an ethical manner. It is important that companies safeguard the information collected and if the information collected is handled in a secure and ethical fashion, it becomes a powerful and valuable tool for both parties.

  • Both SCM and CRM in a business are equally important with their ultimate purpose is reaching to customers/final users while ensuring the entire process run smoothly. SCM delivers the goods to customers and CRM delivers additional services and keeps customers’ satisfaction on the maximum level possible. It is crucial for companies to gain customer’s info, insights, preference, etc to maintain their competitive edge because at the end of the day, it is all about who makes better products and who is better at keeping customers happy. We as customers enjoy and even take for granted many benefits from personalization feature of many business platforms every single day from recommended similar products based on purchase history to recommended albums/videos based on browsing history. The downside to collecting customer data has to do with the massive effort companies put into securing and managing them, and for customers, we face the risk of exposing personal information to bad hands. While companies may have their ethics and code of conduct when handling customers’ information, hackers don’t. Take Target’s data breach as an example, it was an unfortunate event for the company to deal with, but even more, customers greatly suffered due misuse of their exposed personal information.

  • I cannot pick between SCR and CRM because both are essentials when running a successful company. SCR is used to make sure that the organization has products to sell to the customers. Also, it helps keep track of inventory and what an organization need more of and items they don’t need to get, which saves an organization a lot of money. Having an SCR can save an organization a lot of money and especially with a start up company they have to be careful on what they spend their money on the SCR helps the organization do so. On the other hand, CRM is what helps the organization understand their customers and how to meet their needs. Customers will come back and continually spend money on the products if the organization keeps them happy, and that is what the CRM does it gives the organization a clearer look at what their customers want.

  • While both the SCM and CRM systems play unique and integral roles for a company, the question asks which is more important for an organization. To answer this question, I would say that the CRM system is more important. Here is my thought process: while the SCM system is incredibly helpful, supply chain management could be done by an actual person if needed ( though it would be time consuming, costly, and more prone to error). On the other hand, it would be extremely difficult, if not impossible, for a company to perform the duties of a CRM system without the actual system to track customer habits and collect data. Therefore, I think the CRM system is more important since it creates new possibilities for companies that did not exist in previous years.

    For the second question, I am becoming more comfortable with the idea of companies collecting customer data to provide a better user experience. At first, the idea of feeling watched made me uncomfortable. However, as more and more companies are using this tactic, I can see that it is truly reshaping the entire consumer experience. I am all for convenience, so if collecting data about my shopping habits is going to make my future experiences more convenient, I don’t see a problem.

  • Hi – posting this for Lorraine as she makes many good points you all should read –
    SCM’s are great for linking vendors and/or suppliers to make sure production is always flowing, if they are executed well they keep the production line operating efficiently, they could cut costs, increase profitability, improve cash flow and the ROI could be worth it for an organization to make the initial investment. This all sounds fantastic, but what can a CRM contribute to a SCM?
    Ultimately, a CRM is more important to an organization. First, not all companies will use a SCM depending on the type of business they are conducting, such as a service based company that does not directly produce a product. Also, a SCM has many working parts that need to be precise to offer a direct benefit making any issue within any department/working part of the supply chain or during the setup process that can result in major delays and disrupt the entire system. This makes it a delicate balance between all variables, including customer satisfaction and relationship details. Lastly, a CRM would be invaluable to any organization as it is a standalone system that would not require the use of a SCM whereas a SCM should be used in conjunction with a CRM. A CRM would provide critical information needed to operate a SCM successfully. Customers and customer satisfaction are critical to every business. There are several departments within a SCM that have limited or nonexistent interaction with the customer and that could lead to inaccurate forecasting for a company which increases their risk of being at a loss for a quarter or the year. This is where a CRM would really elevate the effectiveness of a SCM, making it a more important system to a business. The CRM allows all departments within a company to input information about their customers into their system and link it with the SCM for more accurate data for forecasting. Just as customers are the reason businesses exist, a CRM is the lifeline to a SCM operating efficiently and accurately.

  • I do not believe one is more important than the other when coming to an organization, but CRM’s are very important. Being able to know about your customers and their preferences can be a major plus for a company when deciding what it needs. Knowing what it needs can help a SCM out. If a company knows that a certain product is liked by many customers, it can make sure that product is always on the shelf. If a company knows a product isn’t selling well, they can use a CRM to figure out why the product is not up to customers standards and also it can also help the SCM when knowing which products to get out the fastest.

  • I believe the CRM is more important because the customer is the most important part of any business. Without customers, it doesn’t matter what product you have, you will obviously fail. The CRM is a huge marketing tool and it can help retain and bring in new customers. Now the SCM is important too because once you get customers you need to have the products for them and SCM helps accomplish that. I like that companies use CRM to get to know more about me because it ends up making my shopping experience easier. I feel as though some people might find it weird that you look something up on google then go on Facebook and there is a hundred ads for what you just searched.

  • I think that SCM and CRM’s are important to businesses, however the CRM has an edge I think. CRM’s can help with sales, customer relationships, and integrate with marketing. While SCM’s are very helpful and even essensial to many businesses, they just do not have as much impact for others. Many companies do not have complex supply chains or need a system to navigate this process.

    As far as data collection, I am not at all opposed to companies gathering large amounts of peoples online information to inform sales and advertising. There are numerous ways to block cookies, browse anonymously, and block ads. I think the burden of privacy is on the online user and not the company collecting information. The agruements which assert I should be conserned about online privacy all seem like they hinge on future, imagined consequences, but I still do not see a real life example where this is a legitimate problem. I could be wrong and over simplifying but I am very open to specific examples if others feel strongly about this.

  • I don’t think I can put one ahead of the other both Supply Chain Management (SCM) and Customer Relationship Management (CRM) serve as important aspects to a business. A good SCM allows businesses to run smoothly and efficiently. However, CRM is just as important because if there is no proper system to connect to your customer they may look elsewhere for a similar product. A CRM can effect your sales by appealing to the customer and making interactions pleasant and promote return customers. As far as the CRM systems becoming too invasive I feel that there is a very fine line. I believe that what you post to the internet needs to be understood that it is out there for the world to see. However it gets tricky when companies use personal information about children to hone in on a customer base because people can get sensitive about that.

  • I believe both SCR and CRM are significant to businesses. CRM can help you get correct materials and SCM can help you may be able to get the product to the customer on time. However, to some extent, CRM is more important because customer always is the key part of any companies. It is important to a company to know what customer needs and it also have a positive impact on the SCM.

  • Both SCM AND CRM systems are crucial to an organization and it’s success. Although, if I were to place importance over the other, I would say CRM is more important. Customers determine the success of an organization. To achieve the best results, the company must comply with the needs and desires of their customers. It is not impossible to run a successful business without a SCM. It will be difficult and time consuming, but it can work. Alternatively, some people find it uncomfortable that CRM’s have so much access to our personal information. Personally, as long as I am safe and my information is only used for the sole purpose of marketing and customer satisfaction, I am ok with it.

  • Although both SCM and CRM are essential within a company, I would argue that CRM is more important to organizations. CRM entails the external relations with customers, while SCM entails the internal production of products and goods. I believe that the role of CRM in creating and ensuring relationships with the organization’s customers leads to a better SCM. By knowing the customers better, an organization is able to figure out what kind of products and how much of those products that the customers want. CRM will enable the SCM process to function more efficiently, as the correct products and their quantity will be correctly recorded for the manager of the whole production process. Concerning the collection of customer data, I believe that organizations should be able to collect customer data that is already on the internet or databases. If someone is willing to freely put out information about themselves on the internet, then companies should be able to use this data.

  • When focusing on which is more beneficial to a company, I believe that neither SCM or CRM are better than the other in terms of what is better for an organization. Supply chain management takes care of internal production of products and goods while customer relationship management pushes its’ efforts to accommodate their customers as best as possible. Both play an important role and can be used together to satisfy a customer’s wants and needs by acting as efficient as possible for the best shipping and handling price.

  • While it is undeniable that both SCM and CRM are important for a companies success. The CRM has provides information in a much more user friendly way, the data visualization makes information more accessible to someone who doesn’t look at spreadsheets everyday. Having info like sales figures or customer response in a much more readable state gives those who make decisions for a companies future more comprehensible data to make informed choices.

  • I believe that both SCM and CRM are both equally important, however they each have very different set of objectives. SCM helps to ensure that a company is operating with lower expense. In CRM your gathering customer information and data to be able to satisfy the customer later. However, if you think about them together they both are there to serve the customer are very beneficial tools to increase and build a business.

  • I believe that both an SCM and a CRM are equally valuable to a company. The CRM provides information to users in an understandable fashion, and can help a company learn more about their customers. However, an SCM is valuable due to its ability to make sure that a company operates at as low a cost as possible. However, information gathered through a CRM can be used to improve SCMs, which may give it the slight edge in importance.

  • While I can appreciate the value a SCM adds, ultimately a CRM is the most valuable. A good SCM system does alleviate the stress and human error aspect when it comes to operating at a low cost while still meeting the inventory needs of the business, its function can be served by an actual human. The CRM system is really an all encompassing solution for tracking your customer basis and finding areas that can be improved upon. I would argue that keeping your customers YOUR customers supersedes the need to keep inventory as low and cost effective as possible, because without the proper practices in place to satisfy an retain your customers, does incrementally increasing your profit margins matter much?

  • I think a CRM system is more valuable to a company than an SCM program. Customer Relationship management improves customer relationships, increase customer revenue, has better internal communication, and maximizes marketing. Though both are important and help a company, a crm system most importantly creates a better experience for the customer.

  • I don’t think there is one more important than the other. Both are very crucial parts of a business that are a part of what makes the business what it is. With the SCM, it allows more efficiency and increase speed for operational purposes. With CRM, it helps keep track of customer information that is needed for the business. They both are different concepts that are needed to make a business run better.

  • While both are extremely valuable to an organization, I believe when it comes down to it CRM is more important. While SCM can ensure that things are flowing as they should and will help bring costs down and keep everybody on the same page, CRM is where you make your money. By finding new customers and keeping your old customers happy, your business is able to grow and flourish and without the customers the business will not be sustainable.

  • I believe that the CRM is more valuable than SCM because of the difficulty of the actual system. CRM is a much harder management system to maintain something that humans have trouble doing so. However, with SCM it’s possible for a human to do the work. There is a ton of information that needs to be processed, grouped, and analyzed that a human just can’t do in regards to CRM. They have to analyze their customers and improve business relationships with them. With SCM though, you’re overseeing the materials, information, and finances as they move from the supplier to your company.

  • Both Supply Chain Management (SCM) and Customer Relationship Management (CRM) systems are extremely useful for organizations. As many before me have stated, I do not believe that one is significantly important than the other, however, I do believe that some organizations would benefit more from one or the other depending on what the organization does. While I think it is important for every organization to implement CRM on some level, there are certainly fields where CRM is much less important than SCM, and vice versa. Both are equally important for their correct application.

  • As many of our colleagues have stated, I strongly agree that both SCM and CRM are equally valuable, with respect to the organization being better performing. CRM will help an organization gather a better grasp of who their customer really is and where to apply resources to ensure they keep their customers. SCM will, as we stressed in detail in previous discussions, will make it so we get the right thing where we need it, at the right time, at the lowest possible cost. Addressing the second question, I feel that there is no issue in gathering information on customers. In the end, the information will be put to use to make the user experience more geared to their needs.

  • If I were running a manufacturing outfit, I’d take the SCM every time. Sure, the CRM would help me better understand my customers and offer products they want, but what good would that be if I couldn’t get the products to them? If, on the other hand, I was running a service business, I’d take the CRM every time because of the return on investment. If the CRM helped me sell my services and returned better than $5 for $1, that’s a no brainer.
    As far as my feelings on data collection in a CRM, I’m worrisome. As data collection becomes more invasive, I become less likely to support it. I’ve heard it said that if you use the system, you’ve got to understand that you’re putting yourself out there. I can’t really agree with that statement though. As the systems and technologies we use become more integrated into every day life, they become more commonplace, and dare I say necessary. So if using the system is necessary to my daily life, am I really choosing to put my information out there? No. I’m being forced.

  • I believe that both SCM and CRM are crucial to the success of any company. The balance of both is need to reduce cost, increase profit, and increase customer satisfaction. SCM is need to keep your business running as efficient as possible why CRM is necessary because a business would be nothing without its customers. Understanding the needs your customers and how you can best serve them is the first step. Having an efficient plan for SCM leads to positive CRM. Both are just as important. Using customer data to understand the customer more is also very important. As I stated, discovering the needs of the customer is crucial. If a company is able to use customer data to better understand the habits, needs, and pains of their customer, they will be able to satisfy them much more efficiently.

  • I think the importance of an SCM or CRM to an organization really depends on a company’s industry. For instance, a manufacturing company would find a SCM system more useful since their revenue is generated by the quality and delivery of their goods. SCM systems are used to manage the flow of goods and services which involves “the movement and storage of raw materials, work-in-progress inventory, pack and distribution”. While a company that generates revenue based on providing a service would find a CRM system more beneficial. Given that CRM’s are used to “manage relationships and the data/ information associated them”. Company’s like Amazon would equally benefit from a SCM system and a CRM system since they provide services (prime music and video) and goods.
    We discussed how Amazon uses CRM systems to provide convenient shopping experiences by storing data about returning customers and suggesting products based on their shopping history. From a business prospective, I think this is a great way to market and sell goods but as a consumer, I feel this tactic is a little concerning because I sometimes feel “watched” and my actions can be predicted- not just from my activity on their site but from my navigation throughout the web.

  • Both of these additional systems come with their own pros and cons. I believe they both have more pros than they do cons, but that is another question. As for CRM vs SCM systems, they each come with their advantages. SCM’s allow companies to efficiently track their product, inventories, and finances in a way that brings more transparency to the firm. CRM’s keep things more organized when it comes to your customer base. All things are in one place and in some CRM’s, you can even grant access to customers in order for them to see where their product is at.

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