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A PROJECT REPORT

ON
DATA MINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

(SOFTWARE PRODUCTS)

For RADIX BUSINESS MODELS


By

NITIN KUMAR SINHA Under the guidance of PROF. MRs.SURYA RAMDAS


Submitted to

UNIVERSITY OF PUNE In partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION (MBA)

THROUGH ALL INDIA SHRI SHIVAJI MEMORIAL SOCIETYS INSTITUTE OF MANAGEMENT (MBA) PUNE-411 001 *[2006-2008]*

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ACKNOWLEDGEMENT
I kindly express my sincere thanks to entire RBM and IBM team for providing me an outstanding platform to carry out the project internship in an efficient manner for the organization. I would like to express my gratitude to Mr. Vivek Kandekar (Software developer & Trainer) and Mrs. Nisha Barua (Software Trainer IBM Bangalore) who in spite of their guidance and pressing responsibilities regarding to clear the exact concept of software marketing and rendered support at all stages during internship. I also like to express my deep sense of gratitude to Mrs.Surya Ramdas for their continuous guidance to complete the project. My heartfelt gratitude to Dr. D.K.Sinha (Director AISSMS) for his motivation, encouragement and priceless information always provided through out the endeavor. Last but not the least I extend my special thanks to my friend Mr. Sushil Kumar (PGP 1st year IIM AHEMADABAD) for selecting the topic and his effective guideline through the E-mail.

Nitin Kumar Sinha

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EXECUTIVE SUMMARY

1.

Introduction
Project Sum up and actual work done

2.
3.

Objective of the Project


Data mining of client response for IBM software Customer relationship management for IBM To expand the IBM software products Client base Expressiveness value of Software services

Research Methodology IBM lotus notes user response through data mining Data Sources Primary Data Secondary data Data Collection Methods

4.

5.

Primary data: For IBM software users inside INDIA Secondary data from http://www.wikipedia.com & www.ibm.co.in

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LIST OF TABLE
1. 2. 3. 4. 5. 6. Table No.1:Indias leading software company Table No.3:Profile of the Respondent (Page No.43) Table No.4:Analysis of IBM Lotus notes technology (Page No.45) Table No.5:Features of IBM technology (Page No.50) Table No.6:Area of Improvement (Page No.52) (Page No.22)

Table No.2:World top five Software service provider (Page No.23)

LIST OF FIGURE
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Figure No.1: IBM Lotus notes features (Page No.10) Figure No.2: IBM Tivoli features (Page No.13) Figure No.3: Rank Wise Market Share (Page No.22) Figure No.4: Top Service Provider (Page No.23) Figure No.5: Gains Chart (Page No.30) Figure No.6: Data Mining Architecture (Page No.33) Figure No.7: Model specification (Page No.41) Figure No.8: Consumer Perception (Page No.45) Figure No.9: IBM lotus notes rating (Page No.46) Figure No.10: User satisfaction analysis (Page No.47) Figure No.11: Comparative analysis of Lotus notes (Page No.48) Figure No.12: Service Satisfaction (Page No.49) Figure No.13: Added features of LOTUS (Page No.50) Figure No.14: Cost Analysis (Page No.51) Figure No.15: Area of improvement (Page No.52) Figure No.16: Product Innovation (Page No.53)

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INDEX
Sr.No. 1. 1.1 1.2 1.3 1.4 2 2.1 3 3.1 3.2 4. 4.1 4.2 5. 5.1 6. 7. 7.1 8. 8.1 9. 9.1 10. 11. 12. 13. TOPICS INTRODUCTION Introduction Factor which forced to undergo this project Scope of the project Reason for selecting the topic PROJECT PROFILE AND CONCEPT Product profile (Lotus notes and others) COMPANY PROFILE From the desk of CEO (IBM) Profile of IBM INDUSTRY PROFILE Indias leading software companies Market share of software service provider OBJECTIVE OF THE PROJECT Primary & secondary objectives PROJECT DETAILS RESEARCH METHODOLOGY Analysis & results of data mining PRACTICES OF CRM AT IBM Advantages and Benefits DATA PRESENTATION Questionnaires SUGGESTION CONCLUSION BIBLIOGRAPHY ANNEXURE PAGE.NO. 7-9 7 8 8 9 10-11 11 16-20 15 17 21-24 22 23 25-27 26-27 28-40 41-47 42 49 50 51-62 52 63-64 65-66 67-68 70-72

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1.1 INTRODUCTION Clients want solutions- not the pieces of technology, or bits of advice so IBM speaks the language of business. IBM believes in smart work and hires the people who

can win the world through technology. IBM provides high value services to build a new business process that solves clients problems. With the help of this project I came to know the concept of software marketing through data mining and my previous qualification (Masters of Computer Application) helped me out to understand the core concept of software marketing. In brief, we sell the concept to our customers not the goods. IBM has helped thousands of clients of all sizes enhances infrastructure flexibility through consoliditation and virtualization of IT infrastructure, improved energy efficiency, and enhanced operational management. In the organization initially I undergone through the software product of IBM and had to give presentation daily on each software products. These things gave me the ultimate confidence to talk to our clients throughout INDIA.
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1.2 FACTORS WHICH FORCED THE IBM TO UNDERGO THIS PROJECT The data mining of customer relationship management is the topic for evaluating customer satisfaction which can more extensively in the IBM to obtain critical inputs on features which customers are delighted to find in the offering and are willing to pay more dollars for more of certain features. But the questions arise here that how will a person come to know about all these, so IBM has decided to undergo this project title to data mine the customers base and on that basis Company could find out the new strategic tools. 1.3 SCOPE OF THE PROJECT

IBM has ranked first in the world for providing business solutions. IBM strategy is to satisfy the needs of customers. If there is one company who has been present throughout the development of information technology over the 20th century; it is without a doubt IBM. The scopes of this project are unlimited. Identification of customer requirements Long term planning Develop new strategy Evaluate customer perception Establishment of products functional requirements Development of product concept

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1.4 REASON FOR SELECTING THE TOPIC My topic is Data mining of customer response data in software services. I am very exciting towards this topic because topic is really burning and by the help of this topic one can come to know the exact satisfaction level of customers. We are into the providing business solutions and are compulsory to mining the customer responses. This topic can contribute to solving business problems in software services by finding patterns, causalities and correlations in business information.

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2.1 PRODUCTS PROFILE OF IBM

FEATURES OF THE ABOVE SOFTWARE IBM LOTUS SOFTWARE

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Lotus software is a client-server architecture collaborative owned by IBM software group. Lotus notes software is an integrated desktop client option for accessing business E-mail, Calendars and Applications on IBM domino server.

COMMUNICATION

COLLABORATION

LOTUS NOTES

COORDINATION

Figure No-1: IBM LOTUS NOTES FEATURES


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FEATURES AND BENEFITS OF LOTUS NOTES E-mail and instant message facility. Lotus notes can be used as Internet message access protocol. In this server and client can replicate database designs and data access many types of networks including modems that user can get full advantage while working offline.

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Lotus notes provide the strong firewall protection that no unauthorized user can access their database. For this a user to provide their own ID and complex password.

Lotus notes require users to select new memo rather than new mail. Apart from this there are various shortcut keys has provide to quick access.

IBM WEBSPHERE SOFTWARE Websphere is IBMs integration software platform. It include the entire middleware infrastructure such as server, services and tools needed to write, run and monitor 24 7 industrial strength on demand web applications. It supports SERVICE ORIENTED ARCHITECTED and NON-SERVICE ORIENTED ARCHITECTED.

FEATURES AND BENEFITS OF LOTUS NOTES Business integration Commerce Networking Software development

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IBM TIVOLI SOFTWARE Tivoli was acquired by IBM in 1995.Tivoli service management enables clients to better manage their infrastructure, Operations and IT processes to more effectively deliver services aligned to business goals.

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IT & SERVICE MGMT

MATURITY SYS. & INFORM.MGMT

RESOURCE MANAGEMENT

WHAT IBM TIVOLI OFFERS Business Application management Security management(Authentication, Comprehensive security) Service, network & device management Storage management(Data protection, Centralized data storage) Service providers solutions Service management

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PRODUCTS OF TIVOLI Storage manager express Monitoring express Identity manager express

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Provisioning manager express

PEOPLE

PROCESS

TIVOLI

TECHNOLOGY

INFORMATIO N

Figure No. 2: IBM TIVOLI FEATURES

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INFORMATION MANAGEMENT SOFTWARE Data warehousing and Business Intelligence Threat and Fraud Intelligence

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Data and Information Management Information Integration

RATIONAL SOFTWARE IBM Rational software provides a software development platform that improves the speed, quality, and predictability of software projects. This full life-cycle solution combines software engineering best practices, market-leading tools and many more. FEATURES AND BENEFITS Architecture Management Quality management Process and Portfolio Management Change and Delivery Management

QUICK FACTS Latest Version is V6.0 Platform supports Window, Suse Linux and Red hat Linux It also supports RDBMS, MAIL SYSTEM, & WEB SERVICES.

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3.1 IBM CHAIRMAN & CEO INDIA JUNE 6, 2006: The chairman and chief executive officer of IBM, Samuel J. Palmisano, speaking to the largest-ever gathering of IBM employees in India, and announced IBM expects to nearly triple its investment in India over the next three years.

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Mr. Palmisano spoke before 10,000 employees gathered in Bangalore and via satellite to thousands of other employees in Delhi, Mumbai, Kolkata and Pune. With 43,000 employees in 14 cities, India is IBM's largest country organization outside the U.S.

3.2 COMPANY PROFILE


IBM is the world's largest information technology services and consulting provider. Some 190,000 professionals in more than 160 countries help clients integrate information technology with business value -- from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. IBM has been present in INDIA since 1992. Its Regional headquarter in BANGALORE.IBM has its offices in 14 cities including Regional offices in New Delhi, Mumbai, Chennai, Kolkata. IBM offers serving customers serving better, reducing risks and improving speed transform them into on demand business.

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1951 IBM begins operations in India The business operated successfully until the mid1970s, when Indias Foreign Exchange Regulation Act (FERA) required foreign owned companies to reduce their equity ownership to (in IBMs case) 26%. For obvious reasons, IBM was unwilling to take that course of action and so in 1978, the company changed its

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Mode of business operation and began to conduct business in India as an off-shore entity only, through a Liaison Office, operated by a handful of local employees. 1992 IBM reenters Indian market through a joint venture. 1995 Accredited ISO Tickets 9001 (recertified to ISO9001:2000 in year 2001). 1997 TISL Becomes Tata IBM Ltd, IBM Global Services launched - offers a range of IT services from IBM including networking services, outsourcing, education, system integration, consulting, software development and hardware design. Solution Partnership Center is set up in Bangalore to help Indian ISVs port application onto proven IBM hardware platforms like AS/400 and RS/6000. 1998 January IBM School of Enterprise Wide Computing launched at Indian Institute of Information Technology (IIIT), to offer short-term courses to the public and credit courses on enterprise-wide computing to graduate and undergraduate students.

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April IBM India Research Laboratory established in New Delhi, located in the sprawling campus of Indian Institute of Technology (IIT). 1999

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IBM India Limited formally launched - after government approves Tata's divestment plan. IBM India launches PC manufacturing in Pondicherry IBM Global Services India achieves CMM Level 5 Rating. 2000 June Global e-business software center set up in Gurgaon to offer IBMs customers a range of services including technical consultation, proof of concept and technical presentations, implementation planning, solution architecture, application design and development, deployment, and education and training. November IBM Global Financing launched in India to provide flexible and attractive financing and leasing programs to fund information technology (IT) requirements of Indian customers. 2001 India Software Development Labs established in Pune and Bangalore to develop, enhance and support key IBM products & technologies with a committed investment of US $ 100 Million. The state-of-the-art facility is playing an important role in IBMs Linux Strategy, working closely with the worldwide Linux Technology Centre.

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June 2002 IGSI recognized as the "Top MNC Software Services Exporter" and "Top Foreign Equity Company" in Karnataka for Year 2001-02 by Software Technology Parks of India (STPI), Bangalore Chapter. 19

July IGSI has also been also recognized as Distinguished IT Exporter' for 2001-02 by MAIT. Dataquest, India's leading trade magazine has also rated IGSI as the Top MNC Software Services Exporter for Year 2001-2002. 2003 IBM India Research Labs launches a "Technology Center" at its facilities to showcase business applicability of cutting edge technologies to organizations.

RBM (Radix Business Models) is the business partner of IBM. RBM is a software services provider, which follows Onsite Support Model and Offshore Model, what is popularly termed as the ODC model (Offshore Development Center). RBM is serving 8 consistent clients with repeat records, keeping customer satisfaction as focus. We have successfully and repeatedly delivered on various domains Manufacturing, Human Consulting, Education, etc through varied technologies Louts Notes, .Net, Java, etc. Our flexible methodology is client-focused to cater client needs, ensuring rapid software development, at a low-risk and high output.

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INDUSTRY PROFILE 4.1 INDIAS LEADING SOFTWARE COMPANY In India the major software market players information as on JUNE 07.The percentage market share are as follows along with their rank.

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RANKS.
1 2 3 4 5 6 7 8 9 10

SOFTWARE COMPANIES
TATA CONSULTANCY SERVICES IBM INFOSYS TECHNOLOGIES HCL TECHNOLOGIES SATYAM COMPUTER SERVICES WIPRO TECHNOLOGIES COGNIZANT TECHNOLOGIES NIIT SILVER LINE TECHNOLOGIES PENTASOFT TECHNOLOGIES
Table No. 1

% Age market Share


20% 17% 13% 12% 10% 9% 7% 6% 4% 2%

RANK WISE MARKET SHARE


4% 2%

TCS IBM INFOSYS

7% 9%

6%

20%

HCL SATYAM WIPRO COGNIZANT

10% 12% 13%

17%

NIIT SILVERLINE PENTASOFT

Figure No. 3 RANK WISE MARKET SHARE


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4.2 WORLD TOP FIVE SOFTWARE SERVICE PROVIDER AND MARKET SHARE

Following are the major market player in the field of service provider for the demand business and providing better business solutions.

RANKS
1 2 3 4 5

SOFTWARE COMPANIES
TECHNOSOFT CORP. MICROSOFT IBM 22 APPLE DELL

MARKET SHARE
31% 25% 22% 14% 8%

Table No. 2

TOP FIVE SOFTWARE SERVICE PROVIDER


TECHNOSOFT MICROSOFT 14% 8% 31% IBM APPLE DELL 22% 25%

Figure No.-4 TOP SERVICE PROVIDER

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MAJOR MARKET PLAYERS IN SOFTWARE SERVICE

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5.1 OBJECTIVES OF THE PROJECT

The study has two fold objectives:


Primary Objectives Secondary Objectives

PRIMARY OBJECTIVE My project title is Data mining of customer response data in software services. It includes how Data Mining can allow an organization to market the product to customers on an individual or an Organization basis - selecting those are most like to be responsive and suggesting targeted creative messages. Primary objectives at a glance To data mine the customer response data to improve service quality. 25

To attract more customers to build their Infrastructures, Operations and IT

processes. To customized the software product as suitable for providing end-to end business

solutions. SECONDARY OBJECTIVE Secondary objective is the Impact of expressive value of service on satisfaction and patronage intentions. By using the measuring service quality that expressiveness value is more significant than performance perceptions in determining satisfaction. Patronage intentions are more closely related to performance perceptions.
DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

Secondary objective at a glance Increase awareness through providing better Quality of service. Improving customer satisfaction to ensure customer retention. Improve better understanding of interrelationship between Customers and service

provider. Our activities are very close to what is the need of todays dynamic demand of the current trend of business. IBM has 165 clients in Pune and IBM is one of the service providers to improve their current trend of business. 5.2 WHAT WE DO AND FOR WHOM? Our innovative technologies have proved that we are the right people to provide right solutions to the demand business for all type of firm like Manufacturing, IT solutions, Banking & Insurance, Service sectors etc.

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Building a resilient infrastructure Optimizing IT performance Growing your business Improving customer relationship Managing and developing the human resources Optimizing supply chain and Operations. Protecting employees and information

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6.1 A CONCEPTUAL OVERVIEW In todays extremely competitive world, it is critically important to businesses to ensure that their product and service offerings not only meet basic needs of the customers but also excite them with perceptible product differentiation.

6.2 WHAT IS DATA MINING? Data Mining is the process of using analytic methods to explore data to discover meaningful patterns that enable organizations to operate in a more cost effective manner. Historical data is based on the past performance. Data Mining Technologies offers a proprietary technology that is embodied in it two flagship products Nuggets and nuggets to address this need. It also provides Data Mining as a service.

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DATA MINING ARCHITECTURE FOR IBM SOFTWARE SERVICES

HISTORIC AL DATA

OPTION

CLIENT DETAILS

CUSTOM DATA

CURRENT DATA

COMPAN Y DATA

GLOBAL DATA WAREHOUSE AND DATA MARTS USING DATA MINING TECHNIQUES FOR

CRM

RETAIN CUST.

SERVIC E QUALIT Y

INTERA CTION

CONTR OL

Figure No-6: The use of data mining technique is a global and firm wide challenge for IBM
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6.3 WHY IBM NEED DATA MINING? Data Mining Technologies, (DMT) provides complete predictive modeling services to the direct response industry using state-of-the-art, proprietary data mining technology to help marketers target highly responsive prospects and customers. Increased competition has intensified the need to operate more cost effectively in todays global marketplace.

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Figure No.7 IBM DATA MINING ARCHITECTURE

DATA MINING FOR PREDICTION IBM TECHNOLOGIES Static information and current plans (e.g. demographic data, marketing plans) Dynamic information (e.g. customer transactions) Yesterday Known Today Known Tomorrow Known

Known

Known

Target

Table 3 - Data Mining for Predictions


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EVALUATING THE BENEFITS OF A DATA MINING MODEL IN IBM

Figure-8, which shows a "gains chart," suggests some benefits available through data mining. The diagonal line illustrates the number of responses expected from a randomly selected target audience. Under this scenario, the number of responses grows linearly with the target size.

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GAINS CHART Figure No.8 GAINS CHART

The top curve represents the expected response if you allow the model scores to determine the target audience. The target is likely to include more positive responders than in a random selection of the same size. The shaded area between the curve and the line indicate the quality of model. The steeper the curve, the better the model.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

OUR OFFERINGS TO CUSTOMERS As our product is software product so our target is totally on the firms or Organizations.

LOTUS NOTES SOFTWARE PRODUCT Lotus Notes is one of the software product which stood at the top and fulfill all needs of demand business. I had only to deal with Lotus notes product from the software product line of IBM.I usually speak to our client whether they are satisfy with the features carrying out by LOTUS NOTES or not.

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At very beginning of project I had to give the presentation on Lotus Notes software and their features. It is very much important to communicate with the top level management in an efficient manner. I used to speak to every client who already use IBM software product. Our main focuses were to develop the better relation ship with our clients. So my profile was around to CRM (Customer relationship management) through providing better service quality.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

DATA MINE THE CUSTOMER RESPONSE TO IMPROVE SERVICE QUALITY

Data mine is generally a base where all the historical data as well as current database being stores. According to past experience of the customers IBM develop the product and quality. With the help of data mine IBM helped a lot in terms of growth of clients in Pune and outside. Initially in Pune, it was 85 clients were using Lotus notes but the help of data mine IBM has the clientele base of 135 and also IBM succeed to penetrate the new market in the major cities like New Delhi, Chennai, Bangalore and Cochin. STEPS IN THE EVOLUTION OF DATA MINING FOLLOWED BY IBM

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Evolutionary Step Data Collection (1980s) Data Access (1985s)

Business Question

Enabling Technologies Computers, tapes, disks

Product Providers IBM, CDC

Characteristics

"What was my total revenue in the last five years?" "What were unit sales in New England last March?"

Retrospective, static data delivery

Relational databases (RDBMS), Structured Query Language (SQL), ODBC On-line analytic processing (OLAP), multidimensional databases, data warehouses

IBM, Microsoft

Retrospective, dynamic data delivery at record level

Data Warehousing & Decision Support (1990s) Data Mining (Emerging Today)

"What were unit sales in New England last March? Drill down to Boston."

Micro strategy

Retrospective, dynamic data delivery at multiple levels

"Whats likely to happen to Boston unit sales next month? Why?"

Advanced algorithms, multiprocessor computers, massive databases

Pilot, Lockheed, IBM, SGI, numerous startups (nascent industry)

Prospective, proactive information delivery

Table 1. Steps in the Evolution of Data Mining.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

TARGETING MORE CUSTOMERS The way in which companies interact with their customers has changed dramatically over the past few years. A customer's continuing business is no longer guaranteed. As a result, IBM has found that we need to understand our customers better, and to quickly respond to their wants and needs. In addition, the time frame in which these responses need to be made has been shrinking. It is no longer possible to wait until the signs of customer dissatisfaction are obvious before action must be taken. To succeed, companies must be proactive and anticipate what a customer desires.

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TARGETING CUSTOMERS

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IBM INCREASE AWARENESS THROUGH PROVIDING BETTER QUALITY OF SERVICE We can see that through getting more and more responses from historical and current information from the client base IBM successfully get in to: Pinpoint Accuracy to Sales Increasing Customer Value Scoring Customers Solve business decision problems. 34

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

6.4 CUSTOMER RELATIONSHIP MANAGEMENT FOR IBM During my project I visited personally to analyze the INS and out of customers mindset. I visited those organizations which are using Lotus Notes software since many years and I got the expressiveness value of service quality and patronage intentions. By the help of database I came to know that many of Organization is facing problem to use the software properly. So to develop better relationship we also provide training for using Lotus notes software. By this way we got successful to stretch the product with introducing corporate training and IBM is only the company which provides

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training program for Top level executive. So I found that it is very much important to interact between a Company and customers. Data Mining and Customer Relationships: IBM technologies understand the value of collecting customer data, but also realize the challenges of leveraging this knowledge to create intelligent, proactive pathways back to the customer. Customer Acquisition and Data Mining: For IBM, the primary means of growth involves the acquisition of new customers. This could involve finding customers who previously were not aware of IBM product, were not candidates for purchasing our product (for example, IBM software product for a big garment shop). Scoring Customers: Once a model has been created by a data mining application, the model can then be used to make predictions for new data. In July 2007 IBM got successful to score more customers.
DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

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Figure No.12: CRM ARCHITECTURE

Here we can observe that data mining is very essential to develop the relationship with customers. Above figure represent the separate entity for each i.e. Customer, Realtionship and Management. There are three attributes of customers i.e. customer knowledge, context and value. These three attributes are the main base from I have data mined the responses for IBM lotus notes software.

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BENEFIT OF DATA MINING IN IBM

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Data Mining Improves Decision Making Data mining helps SPSS customers solve business problems

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RESULTS OF THE STUDY As data mining of customer response data is very much needed in term of customer relationship, in terms of profit and in terms of creativity. 1. IBM start with a remarkable client base IBM clients today are investing in new technologies and services to become on demand enterprises. As first movers, they are establishing an early, significant edge over their competitors. 2. Growing in number and reaching dynamic business segment On demand business and computing solutions have improved the economics of and broadened the options available to enterprises especially small and medium-size businesses (SMB). Revenue from IBMs SMB sales organization was $29.2 billion in 2006, an 8 percent increase over the previous year.

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BIGGEST ACHIEVEMENT

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YEAR 2004 IBM PENETRATED THE RUSSIA, BRAZIL AND CHINA MARKET

IN 2006 IBM COVERED THE MARKET GLOBALY

UK (25%) RSA (35%) (16%) CANADA

AUSTRIA (24%)

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DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

7.1 ANALYSIS AND RESULT OF DATAMINING

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Management meaning of research In the context of management Research concerns itself with obtaining information through empirical observation that can be used to systematically develop logically related propositions so as to attempt to establish casual relationships among variables. INFORMATION REQUIREMENTS For successfully done the research, I have two sources of information, that is 1. PRIMARY DATA SOURCE Questionnaires Online Interviews

2. SECONDARY DATA SOURCE www.ibm.co.in www.wikipedia.com www.google.com Journals Company source

RESEARCH METHODOLOGY Research Method: Questionnaires Research Design: Explorative Research Population: All IBM Lotus user inside Pune Sampling Drawn: Old user of Lotus notes product & New user Sample Size: 24

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MODEL SPECIFICATION AND RESEARCH HYPOTHESIS IBM thus purpose two value dimensions associated with software serviceperformance and expressiveness value through data mining, that impact satisfaction with software and patronage intensions. If satisfaction has mediating effect, then the relationship between satisfaction and patronage would be stronger than the relationship between service quality and patronage.

PATRONAGE INTENTIONS

SATISFACTION SERVICE QUALITY PATRONAGE INTENSIONS

Figure No.-7: MODEL SPECIFICATION OF IBM

The above figure is based on the premise that satisfaction acts as a mediator on the relationship between service quality and patronage intentions irrespective of the value obtained by the customer through data mining. The mediating effect is shown by bold black arrow. If satisfaction has a mediating effect, then the relationship between satisfaction and patronage would be stronger than the relationship between service quality and patronage.
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PRIMARY DATA SOURCES In primary data collection, I used questionnaires. Primary data collection is necessary when a researcher cannot find the data needed in secondary sources. There are three reasons behind obtaining primary data-Observations, Surveys and experiments. QUESTIONNAIRES For this I used open ended and close ended question as well to get the feedback. The pattern of questions is only to get the satisfaction level of customers.

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SAMPLE SIZE There were two sets of respondent: one for measuring performance of preferred IBM lotus software products attributes and a second sample for measuring expressiveness value of software service attributes. A sample quota of 24 respondents for each dimension was fixed based on Organization structure, Annual revenue and actual need of demand business based on current trend of management. The sample was divided across SEC A and SEC B (Old users of IBM lotus note software product) and new emerging user respectively .Respondents were at least 5 years old user of the software product in Pune and new users (at least 2 years of using IBM products). There were 16 respondents who are using IBM lotus notes since last five years and 8 respondents are using IBM products since last two years. For final analysis, after deleting incomplete records where several respondents had mentioned that IBM lotus notes software as preferred. I had a set of 18 respondents which are completely satisfy with the product and quality of service. The rest 7 respondents gave the information that IBM should also provide corporate training for proper using of IBM products.

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ANALYSIS AND RESULTS 45

Since the sample sizes were not very large, I first conducted the sampling adequacy test for each samples. Figure below is showing the profile of the respondents.

PROFILE OF THE RESPONDENT


PERFORMANCE EXPRESSIVENESS

FREQUENCY

PERCENTAGE

CUM%

FREQUENCY CUM%

PERCENTAGE

OLD USER NEW USER TOTAL

16 08 24%

66.7% 33.3% 100%

66.7% 100%

18 06 24

75% 25% 100%

75% 25%

Table No.3

These results indicate a strong mediation effect of satisfaction on the relationship between expressiveness value of service quality and intention to recommend. Here we can identify that the importance of data mining of customers response data.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

IMPLICATION AND FUTURE RESEARCH DIRECTIONS

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Data mining is the best way to get the response of customers and to develop customer relationship. Service quality is definitely a customer psychological constructs but IBM evaluates providing better solutions with new technologies are major issue other then just developing relations. For this reason I believe that service quality, when referring to the customers perspective, needs to be redefined to include all those cognitive assessments that influence the customers perception of the overall superiority of software services, including superiority in terms of expressiveness. Future research also needs to focus on developing a service quality scale to develop better relations with the customers. Other relevant customer value dimensions also need to be explored.

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DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

8.1 PRACTICES OF CRM AT IBM

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CRM analytics solutions from IBM technology for greater customer insight. Target marketing for higher sales and return on marketing expenditures. Use customer intelligence to personalize messaging and offers across marketing channels. Help predict trends, optimize customer relationships and uncover new sales opportunities.

THE ADVANTAGE

Extensive experience in successful CRM analytics implementations. Leadership in collaborative tools. One point of accountability to give the results which need.

THE BENEFITS Improve understanding of customers' needs. Identify and target customers with higher profit potential. Gain decision support from accurate, up-to-date customer intelligence. Personalize offerings to individual customers for greater returns. Derive insights into customer purchasing patterns and recognize new trends. Give customers a more positive experience to improve customer satisfaction. Improve overall reputation in the marketplace and excellent customer services.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

HAPPIER CUSTOMERS, MORE REVENUE

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Automotive CRM analytics solutions from IBM can help to achieve return on investment by providing accurate customer data that enables to: Identify and target customers with higher profit potential. Increase the effectiveness of marketing programs to increase revenue Reduce cost of tracking leads through automation.

PROVEN BENEFITS An auto manufacturer needs to unify customer data to improve customer service, and to track and manage sales leads to improve sales. Outdated, paper-based systems make it difficult to track and respond to leads efficiently. Our automotive CRM analytics solution could implement a single database to:

Gather and consolidate customer data. Provide a single view of each customer that's accessible to all employees.

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DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

LIST OF COMPANY I VISITED FOR COLLECTION OF PRIMARY DATA

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NAME OF THE COMPANY


SOFT CELL TECHNOLOGIES I-VISION TECHNOLOGIES KPIT CUMMINS ATLAS COPCO COLGATE INDIA CANON INDIA VSM SOFTWARE PVT.LTD CYRET TECHNOLOGIES INDIA POLARIS CHENNAI LARSEN &TUOBRO IOC CORPORATION SOLITOS INFOTECH PVT.LTD WHIRLPOOL INDIA SKF INDUSTRIES

SECTORS
IT SECTOR IT SECTOR IT SECTOR MANUFACTURING FMCG PHOTO COPIER IT SECTOR IT SECTOR MANUFACTURING MANUFACTURING PETROCHEMICAL IT SECTOR HOME APPLIANCES FMCG Table No.-3

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

ANALYSIS OF IBM LOTUS NOTES TECHNOLOGY 1. WHICH TECHNOLOGY YOU FIND MOST RELIABLE FOR YOUR ORGANIZATION? TOTAL NON USER ORGANIZATION SURVEYED=30
SERIAL NO. TECHNOLOGY NO. OF RESPONSES % OF CUSTOMERS

1 2 3

TCS INFOSYS IBM

08 05 11

26.6% 16.6% 36.6%

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4 5 6

WIPRO SATYAM OTHERS


Table No.4

02 01 03

6.66% 3.33% 10.0%

CUSTOMER PERCEPTION 3% 7% 10% 27% TCS INFOSYS IBM WIPRO SATYAM 36% 17% OTHERS

Figure No.8: CONSUMER PERCEPTION

INTERPRETATION From above chart it can be easily seen that IBM Lotus notes product is the market leader in the field of software product.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

2. HOW DO YOU RATE THE IBM LOTUS NOTES TECHNOLOGY? Finding:

Average Good Excellent

65 % 26 % 8%

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IBM LOTUS NOTES RATING 8%


AVG

26%
GOOD
65%

EXCELLENT

Figure No.9: IBM LOTUS NOTES RATING

INTERPRETATION Most of organizations are willing to take IBM lotus notes product for their organization. They dont want the pieces of technology but a product which can fulfill all the requirement of the current demand of business.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

3. ARE YOU COMPLETELY SATISFY WITH THE PRODUCT OFFERING BY THE IBM TECHNOLOGY? Finding: Yes No Scope of improvement
83 % 12 % 5%

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USER SATISFACTION ANALYSIS


12% 5% Yes No Scope of Improvement 83%

Figure No.10: USER SATISFACTION ANALYSIS

INTERPRETATION We are least focus on the customers satisfied with the product but more attentive for the customers who are satisfy or partially satisfied. By this way we can customize our product that can provide ultimate satisfaction to our customers.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

4. WHAT ARE THE FEATURES WHICH MAKES IBM DIFFERENT FROM OTHER SERVICE PROVIDER? Findings: User Friendly Environment Easy to install Authentication Others
91 % 5%

2% 2%

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2% 5% 2%

FETURES OF IBM LOTUS NOTES

User Friendly Easyto install Authenticate Others 91%

Figure No.11: COMPARATIVE ANALYSIS OF LOTUS NOTES

INTERPRETATION This analysis is basically to gather the key area of IBM technology .I found that most of the customers are satisfied with the performance and more than 90% of the customer said that IBM lotus has user friendly environment.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

5. DOES IBM PROVIDE YOU THE SERVICE ON TIME OR WHEN NEEDED? Finding: Yes No
63 % 37 % %

56

SERVICE SATISFACTION

37%

Yes No

63%

Figure No.12: SERVICE SATISFACTION

INTERPRETATION From the total sample size, 63% of customers are delighted by the service offering by the IBM. But 37% of the customers are not satisfied with the service quality. So here we can find that still 37% scope of improvement in service quality is needed.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

6. WHAT ARE THE ADDED FEATURES OF IBM TECHNOLOGY APART FROM THE PRODUCT? Finding: Total number of Organization visited=16
SR.NO. FEATURES NO. OF RESPONSES %RESPONSE

SERVICE QUALITY

25.0%

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2 3 4 5

ONLINE DELIVERY PAYMENT SOLUTION CORPORATE TRAINING OTHERS


Table No.5

3 6 2 1

18.75% 37.5% 12.5% 6.25%

ADDED FEATURES

13%

6%

25%

SERVICE QUALITY ONLINE DELIVERY PAYMENT SOL. CORP. TRAINING

37%

19%

OTHERS

Figure No.13: ADDED FEATURES OF LOTUS

INTERPRETATION This question is open ended question and can be more type of answers but here we can see that most customers are satisfied by the IBM payment solution and quality of service. So here we can explore the new market on these bases.
DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

7. THE COST INCURRED ON IBM LOTUS NOTES IS AFFORDABLE FOR YOUR ORGANISZATION OR NOT? Finding:

Yes No

72 % % 28 % %

58

NO 28%

COST ANALYSIS

YES NO

YES 72%

Figure No.14: COST ANALYSIS

INTERPRETATION This question was a common question for both Old user and new user. It is very obvious that new user might not get satisfy until or unless they earn the maximum out of it. To penetrate the new market it is essential to provide the exact solutions to get benefited. The maximum of NO responses I got fro new user.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

8. According to you how can we make our software products much better? Finding:
SR.NO. AREA OF IMPROVEMENT %RESPONSE

1 2

EXTRANET CONNECTIVITY FREE TRAINING

19% 39%

59

3 4 5

IMPROVE SERVICE DELIVERY MORE COST EFFICIENT EXTERNAL THREATS


Table No.6

24% 12% 6%

AREA OF IMPROVEMENT
6% 12% 19%

EXTRANET CONN. FREE TRAINING IMP.SER.DEL. COST EFFICIENT

24% 39%

EXT.THREATS

Figure No.15: AREA OF IMPROVEMENT

INTERPRETATION As IBM lotus notes provide better protection from external threats but in above chart we can see that 6% of customers are still not happy with the performance. Such responses can definitely improve the authentication of IBM Lotus notes software products.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

9. According to you what are the most important features should be added in the product as compare to other software provider? Finding: Multi platform support Mailing feature could be more efficient
12 % % 28 % %

60

Electronic learning through Lotus notes Other facilities

30 % 30 %

NEW IDEAS OF CUSTOMERS


30% 12%

Multi platform
28%

Mailing Features E-learning Others Facilities

30%

Figure No.16: PRODUCT INNOVATION

INTERPRETATION Though IBM Lotus notes provide the best facility as compare to giant like Microsoft and Techno Soft Corporation but the value we can add to our product through customer data mining. By this way IBM can improve their customer base.

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

10. Any suggestions. Finding: This question I had asked to Associate Director (CANON INDIA) one of the giant users of IBM lotus notes. CANON is using IBM Lotus notes since its inception.

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It was really a nice experience to have a talk through E-mail. Following are the response I got from Canon India.

In this competititive world no product is perfect until or unless you adding some additional features to the product at regular time interval.

No clients want the pieces of technology but they want how products are beneficial for current trend of business.

Dont keep changing in your product but add the value and provide better demand solutions.

Clients are least bother about the features but they are much bother about the benefits.

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DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

SUGGESTIONS During the project I got the opportunity to learn many things about Software Industrys. I understand software marketing concept very well. It goes without saying that IBM is one of the largest software service providers through out the world.

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During the project I got some of responses from existing client base on which I could draw some of the suggestions for the benefit of IBM technologies. Following are the suggestions: UTILIZE CUSTOMER INTELLIGENCE IN INNOVATION: Not all ideas will come from a Companys software developer. There fore, IBM must constantly be on the look out for customer expectation and customers ideas. The modern marketing is customer focused which has developed the modern customer not only as a user but also, has offered the opportunities to crystallize their needs and expectations from the products. COST EFFICIENT: IBM software products are costly and this software is only being used by the major players in the market. But to capture the small players in the market it is essential for IBM to cut down the cost of product that a small player can also use it. CORPORATE TRAINING Using IBM lotus notes software is not that easy to access for the first time user so for the new user, software training should be provided to them. It could be the best way to make them satisfy and to generate revenue also.

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DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

CONCLUSIONS As a conclusion of the project title DATA MINING OF CUSTOMER RELATIONSHIP MANAGEMENT, it can be easily seen that Data mining techniques is a powerful tool to assess customer satisfaction and customer relationship. It can be used in product development and quality assurance. It is very popular quality methodology and

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has been effectively used by large organizations. By the help of data mining IBM can build the following: Client base Improve the product features Generate revenue Customer satisfaction Patronage intentions of the clients Customer relationship Only earning profit cannot lead any organization but developing relationship with customers may lead to long run.

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DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

BIBLIOGRAPHY

REFERENCE BOOKS Marketing Management By Philip Kotler

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Data Mining By Rajanish Dass

Customer Relationship Management By Kurt Thearling

Marketing Research By William Ross

WEBSITES www.ibm.co.in www.wikipedia.com www.iim.ahd.ernet.in www.google.com

OTHER MATERIALS IBM Journals IT Marketing Journals

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DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

ANNEXURE

WELCOME TO THE WORLD OF IBM TECHNOLOGY


SURE ITS POSSIBLE IBM LOTUS NOTES CUSTOMER FEEDBACK FORM 69

NAME: ADDRESS:

AGE:

TICK THE ANSWER:

1. WHICH TECHNOLOGY YOU FIND MOST RELIABLE FOR YOUR ORGANIZATION?

TCS

IBM

SATYAM

INFOSYS

WIPRO

2. HOW DO YOU RATE THE IBM LOTUS NOTES TECHNOLOGY?

AVERAGE

GOOD

EXCELLENT

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

3. ARE YOU COMPLETELY SATISFY WITH THE PRODUCT OFFERING BY THE IBM TECHNOLOGY? YES NO SCOPE OF IMPROVEMENT

4. WHAT ARE THE FEATURES WHICH MAKES IBM DIFFERENT FROM OTHER SERVICE PROVIDER? USER FRIENDLY AUTHENTICATION OTHERS

70

5. DOES IBM PROVIDE YOU THE SERVICE ON TIME OR WHEN NEEDED? YES NO

6. WHAT ARE THE ADDED FEATURES OF IBM TECHNOLOGY APART FROM THE PRODUCT? SERVICE QUALITY ONLINE DELIVERY PAYMENT SOLN.

7. IS THE COST INCURRED ON IBM LOTUS NOTES IS AFFORDABLE FOR YOUR ORGANISZATION? Yes NO

8. ACCORDING TO YOU HOW CAN WE MAKE OUR SOFTWARE PRODUCTS MUCH BETTER? EXTRANET ACCESS CORPORATE TRAINING COST EFFICIENT

DATAMINING FOR CUSTOMER RELATIONSHIP MANAGEMENT

9. ACCORDING TO YOU WHAT ARE THE MOST IMPORTANT FEATURES SHOULD BE ADDED IN THE PRODUCT AS COMPARE TO OTHER SOFTWARE PROVIDER? MULTI PLATFORM E-LEARNING OTHER FACILITIES

10. ANY SUGGESTIONS ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------71

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

THANK YOU

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