Brunel Business School Doctoral Symposium 28th & 29th March 2011

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Student First Name: Sarah

Student Surname:Basahel




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Brunel Business School Doctoral Symposium 28th & 29th March 2011
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Adoption of CRM in Telecommunication Industry
Abstract
Customer Relationship Management (CRM) is an integrated approach to manage and retain
customers in an efficient way. Service industries are seems to more keen to adopt CRM in
order to meet frequent changing customers behaviour. The main aim of this research is to
develop a conceptual framework and find out how many the defined factors would affect the
adoption of CRM in telecommunication sector. Researcher is going to use several theories
and literatures to support the research and define these factors. According to these theories
there are many social factors are going to analyse in this research. To gain competitive
advantage and sustain in the market companies are adopting new and advance technologies.
Introduction
In recent years technology is playing important part in-order to manage businesses and
organizations using advance level of technologies to gain competitive advantage as well as
sustaining in the market. Customer(s) relationship management is very famous business
management application in-order to manage customers efficiently and effectively. Companies
have improved their customers satisfaction and they know them better now after
implementation of CRM. However it is very crucial for each business to adopt new
technology properly to get its full potential advantage.
Significance of Research
This research will evaluate factors which affect adoption of CRM in Saudis telecom industry
as well as service sectors. However its main aim to focus on environmental factors but
provide a road map in order to overcome barriers towards adoption new technologies. This
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research is going to point out detail analysis of theories and collected data with respect to
adoption decisions. In this research researcher focused on to understand existing CRM in
Saudi telecom companies, finding out there adopting techniques and challenges during the
implementation process, to explore the road map for new companies who are thinking to
adopt CRM or in the process to adopting. This research attempts to study the factors that may
distress the adaptation process of CRM in telecom industry in Saudi. The result will help the
new entrant as well as the vendors of CRM in Saudis market as a whole.
Research Problem Background
Adoption of new technology may vary at different levels and it may have effect on each level
of the business. Companies are using innovative adoption theories and techniques in-order to
adopt technology properly. In this research researcher is trying to find out how does factors of
adoption theories effect the CRM adoption. In order to do more specific and precise research,
a research has focused on the telecommunication industry in Saudi. Researcher has selected
this sector because this sector has influenced by globalization as well as services. All the
companies under this sector are related with foreign companies as well as local companies.
These companies also served customers globally and locally. In a nutshell companies will
have to adopt new technologies in order to sustain in the market as well as gain competitive
advantage.
Businesses in Saudi are getting aware with new innovative business management applications
and keen to know that how their business will improve by adopting these technologies. It is
also important for the vendors of these business applications to understand the businesses
locally and globally to implement application without errors or minimum errors.
CRM not only a software or just set of business processes basically it is a culture which has
focus to retain and creating new customers. However CRM tools and technology enable
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companies to manage customers need effectively but customization of CRM and its
implementation is not the easy process. There are many failures in CRM implementation, For
example, Simpson (2002) stated that the there are many examples of failure of CRM and the
anecdotal evidence suggests that between 30 to 75 percent of CRM implementations fail
because organisations do not properly evaluate the cultural readiness, also according to a
study published by the Gartner Group (Gartner Report, 2006) almost 70% of CRM failures
were attributed to issues with data reliability.
This research focused on CRM adoption with respect to individual decision or an
organizational decision. In this research researcher only focused on environmental,
technological and organizational factors with respect to CRM adoption in Saudi telecom
industry. The main focus of this research is to find out how many the defined factors would
affect the adoption of CRM in telecom industry of Saudi at organizational level. In
environmental factors researcher will examine Saudis government approach towards
technology adaptation, Saudis political conditions etc.
Relevant literature
Definition of CRM is profit driven and everybody has different view to explain it Greenberg,
2002 said that CRM is not all about the technology and it is more that hospitality, it is about
the hurling a welcome mat on your front porch.
Customer Relationship Management (CRM) is a group of business operations and strategies
devised for capturing, retaining and providing services to the customers (Scott, 2001). Fickel
(1999) considers CRM technology applications as important factors for integrated
marketing, financial operations, and logistics and human resources functions with the
company's customer touch points. The points represent the interaction channel with
customers such as the Internet, sales, telephone calls, etc. These aspects of interactions are
usually managed by distinct information systems.
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CRM can build a strong communication bridge between company and its customers in order
to serve customers effectively and efficiently. CRM is all about to understand customers
buying behaviour, feedback and to establish a loyal link between company and customer
(Bell, 2005).
In a nutshell a successful CRM can give following advantage to the company:
Shape and reinforce customer associations to keep them coming back.
Deliver value added services that are problematic for competitors to matching.
Advance the product development and service distribution processes.
Upsurge the staffs consciousness of customer requirements.
Reduce customer hindrance by not asking the same question over and over

Generally academic literature focused on implementation issues of CRM rather than the
issues related to when, why and how companies adopt the CRM (Mc Donald, 2002).
CRM adoption decision is based on marketing and technological fusion strongly argued by
Moore, 2002. This is well argued by Porter that successful adoption of technology lead
companies to gain competitive advantage. This notion also well described by Grewal ,2000
that technology adoption must in- line with companies need which provide a close
mechanism to adopt rapidly change markets need as well as enhance customer satisfaction.
Adoption is based on the decision of any individual or organization as a whole. Adoption
refers to make use of innovation in term to get market edge, enhance existing performance,
and sustainability.

Telecom industry is not very old in Saudi Arabia; Saudi Telecom Company (STC) was the
only one company in 2004 who basically dealt only in mobile communication. In 2005 STC
monopoly was broken by Etihand due to liberalization of Saudis mobile market penetration
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was 109% in 2007. In 2008 third mobile company Zain entered in Saudis market. Now
Saudis government in the process to give 4
th
licence in order to full fill demand of customers
(Source: Audi Sardar Group, 2008).
Telecom industry exhibited globally less sensitive to market risk with compare other market
sectors during the market downturn however telecoms market is very sensitive towards
customers demand, technology, regulations, and macroeconomics. Customers demanding
more speed and value added services in lower prices. Regulations introducing new
competitions, hence more substitutions and lower price, fast pace technology advancement
pushing companies to adopt innovative and advance technology tools in order to meet market
demand.
CRM facilitate better understanding of the customers behaviour and there is no doubt that
customers are vital factor for success in any business.
Aim
The main aim of this study is to find out the defined factors would affect the adoption of
CRM in telecommunication sector and create a conceptual framework.
Objectives
- To conduct a comprehensive review of theories and related literatures in order to
identify key factors that affect CRM adoption.
- To create a conceptual framework of CRM adoption.
- To examine the conceptual framework empirically in the context of Saudi telecom
industry.
- To propose a final framework of factors that affect on CRM adoption.
Methodology
Research Approach
Two approaches are available for research one is quantitative and another is qualitative.
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Qualitative research is investigative in nature whereas quantitative research is explanatory in
nature (Wallstrom, 2002). In this research the researcher probably is going to investigative in
nature hence qualitative research approach will be best suitable for this study.
Data Collection Method
Marshall and Rossman (1999) said that the most practical, well-organized, realistic and
principled methods for collecting data need to be selected. The selected methods must be
proper, well thought out and methodical. Each method has its own set of unique strengths.
Because the interview questions may change as the research progresses, the methods may
change and the researcher must ensure flexibility.

The researcher has used the following methods to gather primary data:
Review of documents
Documents such as companies policy, organisation charts, flow of information and reports in
the hierarchy of the organisation chart, Saudis Government IT policies, are going to review.
The purpose is to ascertain how companies adopt CRM, need to adopt CRM, and
understanding companies infrastructure towards adopting new innovative technologies.
Interview
In her survey process, the researcher is going to adopt an elite interview strategy for top
managers. The term elite interview does not necessarily refer to a particular method but
refers to strategies needed to interview specific respondents who are considered to have more
power, knowledge, money, and status than others in the population (Dexter, 1970). In her
research researcher is planning to do interview top managers, IT heads of various telecom
companies in Saudi in order to collect data. Interview questions are going to be based on her
research question.
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Conclusion
In this research the researcher aimed to outline the significance of research and the relevant
literature and to define the researchs problem as well as the aim and objectives and the
research methodology. The researchs problem was identified as addressing the defined
factors would affect the adoption of CRM in telecommunication sector. The aim of the
research was to find out the defined factors would affect the adoption of CRM in
telecommunication sector and create a conceptual framework.
Finally, the research was put into action by adopting the proposed framework on a particular
case study.













References
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telecoms?gclid=CNuiq-aF1KYCFUQTfAodaDq2zQ [access at 26 J an 2011]
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