DAVIS HUMANICS (DH) IS A COMPANY ANALYSIS (Research Paper Sample)
Case Study – Davis Humanics
Davis Humanics (DH) is a company founded in 1982 that provides human resources services to about 7000 companies with a total of nearly 100,000 employees. These services include payroll processing, tax filing, health insurance and claims management, and retirement plan management. DH has annual sales of $2 billion and about 1000 employees. In 1997, DH launched a Web site that has since grown to include a variety of tools for connecting with customers. DH has expanded rapidly and has clients of all sizes, ranging from smaller companies with fewer than 50 employees to Fortune 500 companies.
As DH grows, it is having trouble maintaining a consistent quality of service. Account managers each must handle more clients, making it more difficult for them to maintain personal contact with the human resources executives who control DH’s contracts. In the past, account managers worked with a small set of client contact people, but now account managers must work with more people, many of whom they have never met. Further, a number of different client employees have regular contacts with DH operations staff (who handle input tasks), DH systems staff (who help customize the interfaces between DH systems and client systems), and DH professional staff (lawyers, actuaries, and human resources professionals who consult with DH clients and their legal counsel regarding the operation of their retirement and benefits plans).
Because DH’s clients vary so much in size and how they operate, DH has to be flexible in handling input data. For example, DH’s payroll-processing service allows clients many different ways to send in time card data. The largest clients arrange for customized computer-to-computer transfer of information. Some large clients use EDI transfers. Most medium and smaller-sized clients e-mail the time card information, but some mail paper lists that DH must scan into its systems. The health insurance claims-handling operation is even more troublesome. In addition to having clients submit information in various formats, the insurance companies demand that DH submit information in specific formats that are different for each insurance company.
The complexity of DH’s operations is growing as rapidly as the company adds new clients. Sandi Higbee, DH’s Director of Operations, asks for your help in outlining a Web-based customer relationship management (CRM) system that will help manage the account managers’ ever-increasing levels of customer contact (recall that you learned about CRM systems in Chapter 9). Sandi reviewed the products offered by several leading CRM vendors and believes that one might work as a base product, but no matter which product is chosen, she believes that substantial customization will be necessary because DH’s operations are so complex and different from most companies that sell products or simple services to customers. A good CRM system for DH would need to monitor all types of customer interactions with DH account managers, operations staff, systems staff, and professional staff. In addition, the system’s Web interface should allow DH clients to access parts of the CRM system so they can track DH’s follow-up on their work requests and pending inquiries.
DH evaluates all capital projects, including IT projects, using ROI. Sandi is worried about this because she believes that many of the benefits of this CRM project will be hard to quantify. On the other hand, the costs of the CRM project (software and hardware purchase and cost of consultants who will customize the CRM software to meet DH’s specific needs) will be very easy to quantify and will be large. Sandi expects the vendor-consultant teams to submit bids of between $1 million and $2 million for this project.
This week assignment is to prepare a report to DH Board of Directors that outlines of the benefits that DH might expect to obtain from this CRM project. Use categories to organize your list of benefits; for example, you might identify benefits that will accrue to DH’s account managers, operations staff, IT staff, and professional staff. Because DH’s clients will also benefit, you might be able to identify benefits that will accrue to DH’s Marketing and Sales departments or to DH’s New Product Development department. Be sure to include any long-term benefits that you think might occur after the CRM system has been in place for several years. In your report, include some of your dialog that argues against using ROI as the primary method for evaluating this project. Keep in mind that the Directors have little time to review your arguments and are very much inclined to use ROI for all project evaluations.
The following requirements must be met:
· Write between 1,000 – 1,500 words using Microsoft Word in APA style.
· Use an appropriate number of references to support your position, and defend your arguments. The following are examples of primary and secondary sources that may be used, and non-credible and opinion based sources that may not be used.
o Primary sources such as government websites (United States Department of Labor - Bureau of Labor Statistics, United States Census Bureau, The World Bank), peer reviewed and scholarly journals in EBSCOhost (Grantham University Online Library) and Google Scholar.
o Secondary and credible sources such as CNN Money, The Wall Street Journal, trade journals, and publications in EBSCOhost (Grantham University Online Library).
o Non-credible and opinion based sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. should not be used.
· Cite all reference material (data, dates, graphs, quotes, paraphrased statements, information, etc.) in the paper and list each source on a reference page using APA style. APA resources, including a template, are provided in the Supplemental Materials folder.
As Davis Humanics plans to adopt a Customer Relationship Management system, it is bound to manage its affairs more efficiently and increase overall productivity. Majorly the system is tailored to collect information on customer preferences, needs, wants, and strategies to foster loyalty and help in nurturing and developing a better understanding of clients to facilitate better service provision (Krizanic et al., 2019). Davis Humanics (DH) would benefit from a customer relationship management (CRM) solution that can provide a comprehensive overview of all client interactions across all channels and mediums.
The characteristics of a customer relationship system, such as its web-based nature, should guarantee coverage of every angle of tracking clients' prospects in order to lessen the blowback from unsatisfied customers. A customer relationship management system should have a database that stores information on customer wants to improve sales and service delivery by tailoring company operations to those wants. Software, cloud-based solutions, human management, and artificial intelligence all contribute to today's CRM landscape (Kumar & Reinartz, 2018). In order to properly integrate all customers, their needs, and the various services, DH should think about switching to a hybrid system that includes all these modes.
Although the initial investment in such a system is high, the long-term savings that result from using it more than make up for the initial outlay. As it is installed in the company's computers, CRM software collects information about customers, processes that information, and then generates reports that can be used to solve problems (Cho & Tang, 2018). In order to save money on things like single license fees, DH should look into cloud-based customer relationship management software. In addition, having a cloud-based system will make the information accessible from anywhere and at any time for authorized users. And because everything is constantly backed up in the cloud, you never have to worry about losing data. The vendor hosting such a system takes care of maintenance and updates, reducing the overall cost of ownership compared to more conventional options.
Further, outsourcing data hosting to a third party guarantees availability for clients and removes the need for routine system maintenance. In a human-managed CRM system using AI, a program is given instructions by a human operator but learns to respond automatically to customer interactions. Artificial intelligence can learn from past interactions to enhance service quality over time (Kumar & Reinartz, 2018). Because of this, a system that combines the three modes will improve the quality of customer interactions that DH's account managers have with clients, resulting in more efficient business operations.
Given the breadth of DH's operations, it's imperative that the CRM be extensively tailored to meet the needs of the company's diverse clientele. It must cater to a wide variety of customers' tastes while still providing a consistent, positive experience. The system needs to be set up so that all operations, including data input from various clients, are standardized. In order to streamline the hiring process, shorten decision-making times, and prevent communication breakdowns, DH's CRM system should be tailored to support efficient recruitment management.
In addition, the system's customization should include talent management mechanisms to facilitate efficient sourcing and supply only the most qualified candidates to the clients. The system can be integrated with social media sites like LinkedIn to better evaluate and capitalize on qualified applicants. Additionally, the CRM system needs to be modified to enable lead scoring for preferred candidates so that skills can be assessed in a neutral environment (Ruivo et al., 2017). Moreover, the CRM system can be tailored to analyse employee sentiment and keep tabs on client communications. It will help improve service quality by identifying hard-working staff members. In addition to enhancing customer service, the tailor-made CRM system will be useful for resolving strategic issues in all HR-related facets of the business, by delivering data analytics on the effects of employee performance on customers' operations.
In addition, because DH serves such a diverse clientele, the system should be linked to an accounting program for streamlined payroll administration, including the creation of pay stubs, deductions, and bonuses. Other customization options for the CRM system include interactive dashboards for assessing employee performance by comparing and contrasting areas of strength and weakness within a single environment (Chatterjee et al.,2021). In addition, the system should compile all client-specific employee information into separate databases accessible only to approved users. Because of the platform's ease of use, new employees' information can be added without any hitches, and existing employees' information can be updated swiftly.
In spite of the CRM system's predicted high price tag, the long-term benefits to the business, the customers, and the DH team are more than make up for the initial investment. The system will help the marketing and sales department save time and effort by centralizing all sales data and making it simple to access and share. Further, the system enables the generation of sales reports, which helps personnel in these departments monitor targets, quotas, and revenue (Ruivo et al., 2017). The automated sales performance forecasts provided by the CRM system also facilitates the development of appropriate strategies and the adoption of well-informed decisions based on analysis of trends.
In addition, the system helps the department run smoothly by gradually expanding its sales force and improving its methods by spotting and exploiting patterns. Since the system handles all interactions with current and potential customers, the IT department at DH will also benefit from its implementation. As an added bonus, data-heavy tasks like data entry will be automated alongside other features like data summarization and visualization in easily understandable graphs. The CRM system's lead-scheduling ca
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