Customer Relationship Management and Nike Inc.
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Web2.0 is a hottest topic among the different companies; many companies using web2.0 application to interact and stay connect with their online customers and users. Moreover its Sales2.0, Marketing2.0, Enetrprise2.0, and Supply Chain 2.0. This research paper is about the impact of web2.0 technology and how web2.0 helps different departments of organization to provide them benefit in term of business. For this we apply different web2.0 application with different model such as TAM, TPB and Nike inc. Case studies.Web2.0 can helps different companies to achieving their future goals. Keywords: Nike Inc, TAM, TPB, CRM2.0, Web2.0, SCM2.0 Case Studies. INTRODUCTION:
Internet before the concept of the web2.0 is very difficult, in fact it is very tricky to interact with others, internet is only use for different chatting software’s like msn or yahoo messengers, but web2.0 not only changes life for consumer, but also useful as a prospectus of organizations. it helps to attach with each other anywhere in the world, web2.0 includes wiki’s, blogs, now a day’s web2.0 providing a lot of benefits in different fields in marketing2.0, sales 2.0, hrm2.0, scm2.0 and according to the (Almeida, 2012)Mostly social networks site like face book, twitter is more than 100 million visitors in a month. (Almeida, 2012). For sure at the end of 2015 web3.0 will be introduced which open the new era for the organizations and consumers where the concept of virtual 3d world will appears. Nike is the one of the most famous brand in the world, founded in 1968.
It is famous not only for their athletic footwear’s but also making sports bags and others different sports equipments. Nike’s online business is growing day by day, in 1999 company use website to sale their products online via internet. Today, Nike finds out the new innovative way to become a perfect athletic product and new innovative communication ways to interact with their consumers, including becoming an official partner of the National Football League (NFL) starts in 2012. Social CRM/ CRM2.0 is basically software which allows organizations to manage a customer relationship in a organized way, Nike Inc. focusing on CRM2.0 system, to make good and strong relations which their customers, TAM is on other hand according to the sources TAM is all about the adoption and acceptance of different IT technologies(Davis, 1989)as summarized by (Chih Chen, HanLi and YILI, 2011), TAM introduced two concepts, Perceived Usefulness(more related to the job recital) and Perceived ease of use( more related to the utilize of system, which is easy to manage). (Chih Chen, HanLi and YILI, 2011)
According to the resources Davis; Venkatesh(2000), Introduced TAM2 based on a bases of TAM. There are two types of model (Social Influence Process, Cognitive Instrumental Process), those were very important to understand the study of acceptance. (Wu et al., 2011), more over Venkatesh (2003), basic aim of the UTAUT is to define the user how to use IS. There are four predicators of behavioral objective or usage (Performance Expletory Effort; Social Influence and Condition) (Payng and Curtis, 2008) TPB (Mathies, (1991); todds;Taylor (1995), has been used in different fields of IT and it consists of three variables; Attitudes, Subjective norms, Perceived behavior control. Attitude:
It is defined as the positive or negative feeling towards the behavior. Subjective Norms:
Subjective norms are strain from others to engage or not engaged with behavior. Perceived Behavior Control:
This reflected people’s behavior perceptions of their aptitude to use achieve a given behavior. Web2.0 introduced in 2004 by Tim O’Reilly, referred second generation of the world wide web, where many new version of software’s are introduced, it includes wiki, blogs, social networking, According to the research Web 2.0 as a social phenomenon, where marketers thinks how to use a web2.0 in a positive way and build a personal relation with the consumer’s (Parise and Guinan, 2008). However Nike Inc. use web2.0 not only for their online customer, but also for the Soccer community. LITRATURE REVIEW:
Literature review of this report is based on TAM, TPB, CRM2.0 and acceptance of Web2.0.
Technology Acceptance Model:
According to the Legris; Ingham; Colleretts (2003), TAM was introduced by Davis in 1986, it helps to find out the behavior of user towards the IT (Park, 2009), there are two variables of TAM; Perceived Usefulness or Perceived ease to use. Shown in figure1.
Figure1.Framework of technology acceptance model
Davis et.al.(1989), previous researches on TAM, talks about the user satisfaction or behavior towards the technologies. (Venkatesh, Davis and Morris, 2007) TAM is very useful to comprehend the acceptance of technology and information system, Taylor;Todds (1995), as summarized by (Chih Chen, HanLi and YILI, 2011), anticipated the included model of TAM and TPB by the combine name of TAM-TPB (Chih Chen, HanLi and YILI, 2011).
THEORY OF PLANNED BEHAVIOR:
According to the Azjen (1985); Fishbein (1975), as summarized by (Taylor and Todd, 1995), in TPB behavior is more linked with behavior intention and perceived behavioral control is twisted with the help of attitudes (Taylor and Todd, 1995) TPB is introduced by Ajzen (1985;1991), many previous studies regarding the TPB is more discussed on Replication and Generalization to different types of behavior (Venkatesh, Davis and Morris, 2007), Mathies (1991); Todds, Tyalor (1995),as summarized by (Taylor and Todd, 1995) TPB has been used in different fields of IT and it has three variables; Attitudes, Subjective norms, Perceived behavior control (Taylor and Todd, 1995).
Figure2. Theory of planned behavior
Source: http://www.courseweb.uottawa.ca/pop8910/Outline/Models/Theory%20of%20Planned%20Behavior.htm This report is based on the acceptance of web2.0 in different fields.
As you all that there is no specific definition of web2.0 but according to the O’Reily (2000), as summarized by (Leuy, 2009) the revolution in computer industry is caused by to utilize internet as a raised area (Leuy, 2009). Those companies which using web2.0 is more beneficial as compared to the other companies. Public trader companies that directly sold to their retailers such as Wall Mart and Target (Parise and Guinan, 2008) According to the Mckinsey (2011), use of world wide web in organization is increasing day by day and organizations by using these technologies improving their systems and find out the new market era Bughin; Manyika;Miller (2008), as summarized by (Miller, 2008), as compared to the last year many companies in now more involved in web2.0 technologies, and those companies who are contented with these technologies now seen the changes all the way throughout the enterprise.(Miller,2008) Mckinsey Quarterly.com shows the survey about the web2.0 in 2007 or 2008 , following figure shown web2.0 is more common now days.
Now a day’s new type of Web2.0 technologies is using to promising employees requirement and to interact with customer, suppliers of organizations(Bughin and Chui, 2011) According to another research by (Jacques Bughin ; Michae Chui, 2011), mostly companies now improving their reports by using this effective Web2.0 technology. According to the Mckensey&Company(2009) survey , which shows 69% of the companies getting benefit from web2.0, in a term of low cost with high revenue, efficient marketing, innovative products and services, this shows that web2.0 technology is accepted by other companies because it increasing their revenue, this figure shows using of web2.0 technologies.
Figure3. Using of web2.0 technology
SOCIAL CRM/ CRM2.0:
Before the explaining of social CRM system you must know about the concept of basic CRM system, CRM main focus is to same relation with every customers that amalgamate data base knowledge with long term customer relations (Parvatiyar and Sheth, 2002), CRM system is mostly used by every companies in various departments such as ; marketing, sales. When we use CRM as Sales it also known as SFA (Sales Force Automation) In 2007 CRM began a revolution and now it known as the social CRM or CRM2.0, according to the Corn score, Face book is a social network and in 2007 had a 200,000,000 different customers, which shows a new era of communication between the customers and companies, but also a new knowledge as cause from customer approaching. Basically CRM provide a new era to customers that allow them to personalize and share their experience with those who already got benefit from experiences. (Greenberg, 2010). Social Media is more focused on mission, guidelines, but Social CRM related one step further than Social Media, such as marketing, customer responsibilities by implementing cross functional network like sales and customers cares (Baird and Parasnis, 2011). The below diagram shows the progress from social media to Social CRM
Figure4. From social media to social CRM Strategy
This research paper is more towards the qualitative work base on journal articles and case studies, for this referred 35 empirical studies out of which 18 is more relevant to the research, remaining 16 discussed about the different technologies. 2 case studies were taken for this research paper. Mostly journal articles which used in review is electronic and searched from emerald and different academic sites, which talks more about the different technologies e.g. TAM, TBP, CRM2.0 SCM2.0, WEB2.0.
FINDINGS AND RESEARCH:
The first part of the case study (Co-creating value through customers’ experiences) is more related to the Web2.0 and Social CRM2.0, in 2006 Nike launched social networking site www.joga.com , in partnership with Google. Nike online customers can show their talent, upload videos, commenting, rate on the user spawn content and internet community do voting, more voting announced to be a winner of the month and Nike using this feedback for the betterment of their strategies. And sales people can connect with their customers. Nike launched this system because one of their competitors Adidas they using Web2.0 for interact with their customers and Nike was losing their market share that’s why they launched www.joga.com a Web2.0 system through which they can easily interact with their customers. After implement this web2.0 systems Nike Inc. got 32 millions downloads and attracted one million customers.
This is web2.0 application linked with TAM two variables; Perceived usefulness or Perceived ease to use; in relation to usefulness joga.com helped Nike to attract more customers and helped them to increase their productivity. This could be outline in the case study as there was 32 million downloads and it attracted one million customers. Moreover this fact could be taken as ease of use of the technology that this much of customers was attracted. The second part of the case study also related with web2.0 and CRM2.0 technologies, Nike Inc introduced Nike ID from where online customers can easily customize their own sport soccer shoes by putting flags and coloring and Nike Internet community can vote on that design and arrange a competition, more voting design will be select as the next season design.
Figure5. Nike ID
From Nike ID website www.nikeid.nike.com I made this sport shoes design and post it on my Facebook page and my friends and other people can do comments and like this my design and if my design gets more commenting and liking than other, it will be selected as the next Nike season design. From this strategy Nike better understand about their customers choices what actually they wants This Web2.0 technology is more linked with TAM; perceived usefulness and perceived ease to use, in relation to usefulness Nike ID helped them to understand customer needs and wants through which Nike Inc. make better relation with their customers. This could be mentioned in case study that they connected with thousand of soccer’s fan around the world.
Moreover this detail could be taken as ease of use of the technology. The second case study (implementing of supply chain management and its impact on the value of firms), which is more related to the failure of web2.0 technology, In 2000 Nike shows that their second quarter revenues increased by 7 % and net income is $0.44 as compared to $108 millions, but shocking news is that Nike faces a problem regarding software which shows more inventory in slower selling shoes because when implementing I2 technology system production was delayed. Stakeholders of Nike did a sue case on the manufacturing company of that technology, after that they apologize from Nike Inc.
This is more related to the Theory of planned behavior (TPB) and TAM; TPB has three variables attitudes, subjective norms and perceived behavioral control, attitudes toward this failure is not acceptable as discussed in case study while implementing this system mostly persons not agree with it, while implementing this failure web2.0 with TAM; perceived usefulness, Nike wants to maintain their inventory stocks and might be because of lack of training which shows not ease to use of this technology that’s why web2.0 failed. CONCLUSION/ RECUMANDATION:
Web2.0 is proving a lot of oppournities to different organizations in throughout every fields, technology never do this alone. Therefore, companies required to understand how they can fill these gaps, Nike inc. comprehend these gaps and launched different technologies like CRM2.0 which is more related to the web2.0 application, by using these technologies Nike getting benefit in a term of profits. Nike Inc. using Nike ID and www.joga.com make better direct relation with their customers. CRM2.0 is very effective for Nike Inc. because CRM2.0 humanize the company which increase the trust of customers on Nike Inc., it allows customers in the hub of company strategies and introduced new type of drivers in company strategies.
CRM2.0 is a collaboration of web2.0 and CRM, which helps customers to interact and sharing experience, allow business to understand the customers need and wants in a innovative ways, with the help of CRM2.0 company can build a strong relation with their customers via different applications and continuously communications to improve product eminence and increase customer experience. When Nike inc. launched I2 technology for supply chain, which was totally failed might be because of lack of training and information within the staff, Supply chain includes two different segments from input to suppliers and output to consumers, SCM2.0 should concern for these two segments and SCM2.0 is the effective combination of physical and financial, main responsibilities is to give advantages to end users like; customers suppliers. Newly technologies which using in SCM2.0 is RFID and GPS track device, allow computerized data to supply 24/7 time visibility.SCM2.0 is also more related to functional of web2.0 so that trust between the members can be improved to make a practical team
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