Presentation in IADIS International Conference Information Systems 2012, Berlin Germany

1. A CONCEPTUAL MODEL OF
CUSTOMER RELATIONSHIP
MANAGEMENT ALIGNMENT
Norshidah Mohamed, Nor Shahriza Abdul Karim
International Business School, Universiti Teknologi Malaysia
http://www.ibs.utm.my
Murni Mahmud, Abdul Rahman Ahlan
International Business School, International Islamic University Malaysia
Ramlah Hussein
Sri Jentayu Sdn. Bhd.
Jasber Kaur
Faculty of Computer & Mathematical Sceiences, Universiti Teknologi Mara
IADIS International Conference Information Systems 2012 Berlin Germany
10 March, 2012

2. OUTLINE
• Introduction
• Literature review
• Propositions
• Conceptual model
• Conclusion
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3. INTRODUCTION
• Customer relationship management (CRM) –
the process of acquiring, retaining and
growing profitable customers on service
attributes that customers would value and
create loyalty to the organisation (Brown,
2000).
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4. INTRODUCTION ..CONT’
CRM – a business strategy that provides
seamless integration among marketing, sales,
customer service and field support business
areas that touch the customers through
integrated management of people, process and
technology (Pan and Lee, 2003).
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5. LITERATURE REVIEW

6. PERSPECTIVES OF CRM
• Metrics for customer satisfaction, customer
value, customer interaction and customer
knowledge (Kim et al., 2003)
• A process to support customers i.e. relationship
initiation, maintenance, termination. Reinartz et
al. (2004)
• A typology of CRM strategy, customer insight,
customer contact and marketing (Batenburg
and Versendal, 2004) 6

7. PERSPECTIVES OF CRM ..CONT’
• CRM processes: customer acquisition, customer
selection, customer extension and customer
retention (Boddy et al., 2008)
• eCRM – technological perspective comprising
operational, collaborative, analytical and
strategic CRM (Aurelie and Laid, 2008)
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8. PERSPECTIVES OF CRM ..CONT’
In summary, CRM covers
• Strategy
• Processes
• Technology
• Need to be quantified – metrics
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9. BUSINESS-IS STRATEGIC
ALIGNMENT
• Fit between business strategies and IS
strategies
• “… the degree to which the IT mission,
objectives and plans are supported by
business mission, objectives and plans”
(Reich and Benbasat, 1996)
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10. BUSINESS-IS STRATEGIC
ALIGNMENT ..CONT’
• Over the years business-IS strategic
alignment models have applied / adapted /
extended STROBE (Venkatraman, 1985),
STROEPIS / STROIS (Chan et al., 1997) and
SAM (Luftman, 2000)
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11. BALANCED SCORECARD
• Traditional financial measures and historical
perspectives are insufficient for monitoring
performance (Kaplan and Norton 1992; 1996)
• Balanced Scorecard uses actual performance
vs. set targets
• Based on four perspectives : financial,
customer, internal business process and
learning and growth (Kaplan and Norton
1992; 1996)
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12. RESEARCH QUESTION
• Does the relationship between business-
IS strategic alignment and CRM process-IS
alignment explain CRM alignment?
• What are the impacts of CRM alignment?
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13. RESEARCH OBJECTIVES
• To clarify the relationship of CRM
alignment
• To use prior research findings on
business-IS strategic alignment, CRM and
balanced scorecard to develop and test an
integrated model on CRM alignment
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14. PROPOSITIONS
P1: CRM process-IS alignment is positively and
significantly correlated to CRM performance.
P2: Business-IS strategic alignment is positively
and significantly correlated to CRM performance.
P3: Business-IS strategic alignment is positively
and significantly correlated to CRM process-IS
alignment.
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15. CONCEPTUAL MODEL
BUSINESS–IS
STRATEGIC
P2
ALIGNNMENT
P3 CRM
PERFORMANCE
P1
CRM PROCESS–IS
ALIGNMENT
CRM IMPACT OF CRM
ALIGNMENT ALIGNMENT
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16. PILOT STUDY
• 50 survey questionnaires distributed to
Malaysian small and medium enterprises
• 18 survey items adapted from prior
researches
• Likert scale 1 (“strongly disagree”) – 5
(“strongly agree”)
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17. PILOT STUDY .. CONT’
Constructs Source of constructs and No. of Cronbach’s
items used in the research items alpha
Business-IS alignment Kearns and Sabherwal (2007); 4 0.800
Viaene et al. (2007)
CRM process-IS alignment Reinartz et al. (2004); Chen and Ching (2004) 8 0.848
CRM performance Kim et al. (2003); Chen and Ching (2004) 6 0.802
All Cronbach’s alpha > 0.7 suggesting reliability
for all constructs.
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18. CONCLUSION
• The research builds on business-IS strategic
alignment, CRM process-IS alignment and
Balanced Scorecard perspectives to
conceptualise a model for CRM alignment.
• Progress : Pilot study has shown reliability of
instrument used
• Next step : data analysis using structural
equation model to test the model
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19. ACKNOWLEDGEMENT
The research is supported by the
Fundamental Research Grant Scheme
Ministry of Higher Education Malaysia
(504/RES/G/14/3/2/2 FRGS).
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