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Introduction

The applications of potential technology solutions to support customer relations management has been embraced in a number of organizations and the core reason for this is certainly clear. Better customer relations translate to customer loyalty and improved business revenue that are determinants to business success. This segment of research seeks to discuss potential technology solutions to specifically support the customer contests, loyalty points programs, purchase tracking, benchmarking of internal versus external service processes, and management of inventory and related costs. Towards this, relevant concepts such as use of consumer databases and customer relationship management systems will be dissected.

Analysis of Kudler Fine Foods

According to Turban, Kelly and Potter and (2003), the expansion strategy of initiating new stores, application of information technology and new and efficient approaches to customer relations are key response strategies. In the understanding of the fact that IT has been a fundamental tenet that has been used by business in operational improvement and customer service efficiency either inwardly or outwardly, Kudler Fine Foods is best placed to invest in ABC (Activity Based Costing) because it not only low cost but also presents cost managers and accountants with a better method of calculating costs that vary with factors other than production volume. The method affirms the believe that the amount of work and perhaps its costs vary with the levels of activity of a firm. The general objectives of the ABC system adoption into Kudler’s CRM management is to form a basis where more accurate definition of the overhead and/or indirect costs associated with the manufacturing process and apply those costs to the product. This will be aimed at improving the accounting and costs estimates associated with business venture. In addition to cost reduction benefits, applying ABC gives managers a sound means of monitoring ongoing performance (Player, 1998). The central theme of ABC systems is that their use leads to improved product costing, cost management, decision making and competitive advantage (Player, 1998).

The second strategy potential technology solution to specifically support is the improvement of consumer database and customer relationship management system. These will include the management of frequent shopper program and increased efficiency that remain effective strategies for CRM management. The management of consumer database should make use of IBM’s DB2 because of the advantages in presents in comparison to other competitors. It is not only cost effective but it can also be administered from two platforms: the GUI or the command line.

In addition to the above, outsourcing for the management of potential technology solutions to specifically support the management of inventory would be ideal for Kudler Fine Foods. This is because it would improve quality of service while at the same reducing costs. However, a number of factors must be underlined in the process of outsourcing the management customer information.  Outsourcing as a strategic direction should be a result of an objective decision making process. In making strategic choices, Kudler has to consider different viewpoints from both major and minor stakeholders (Kumar, Aquino, & Anderson, 2007). Analysis of the external and internal environment may also come in handy in determining the suitability of outsourcing as a strategic direction. An analysis of the internal environment may involve an audit of internal capability to support outsourcing (Kumar, Aquino, & Anderson, 2007). This helps ensure that Kudler chooses to outsource their information processes only when they are sure they can provide the required support structures and expertise. However, these multiple requirements may reduce the potential gains from outsourcing and tend to be assumed by businesses (Kumar, Aquino, & Anderson, 2007).

Inclusion of employees as an example may result in increased allocation of time and financial resources to the project. This may balloon the overall cost of outsourcing and delay or impede the realization of the benefits associated with this strategic direction. Evidently, making decisions relating to outsourcing is a complex process that requires further research to determine the moderating variables and the best practices.

Conclusion

It can be discerned from the above discussions that Kudler Fine Foods remains at a strategic position to exploit the application potential technology solutions to specifically support the customer management, risk assessment considerations are in theory critical when making decisions that have a strategic bearing. Thus, there is need for further research that will help determine of risks assessment and change management considerations are significantly influential on decision making when seeking to outsource information processes in practice.

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