THE FRAMEWORK
As figure 1
illustrates, there are five key elements in the knowledge management
framework that impact the customer. First is the need for clear and
fast communications. In the Internet world this is typically best
achieved via electronic mail. The reason e-mail is so important is
that it allows for not only customer to vendor communications in a
rapid and asynchronous manner but it also enables collaborative
communications among members of either the customer or the vendor
teams. In both large and small organizations, data and information
is dispersed, so there needs to be some sort of electronic glue that
can pull these pieces together. E-mail can be the "killer
application" that can connect key data to their knowledge management
elements.
The second element
relates to storing information about the customer and the ongoing
relationship with the vendor. This information has three dimensions.
The first dimension is a profile of the prospect or account. This
profile contains fundamental data about the customer such as
official name, address, organizational structure, products offered,
and the like. There may be various formal and informal sources for
this data, but the knowledge management system needs to pull it in
wherever it can find it. The second dimension fleshes out the
customer profile with specific people information such as titles,
contacts, and contact management data. This dimension depends a lot
on the observations of the sales rep or account manager. The third
dimension brings in the history and plans that the account may have.
Again, both formal and informal sources are possible here.
The third element
in the framework focuses on the marketing encyclopedia as a source
of potential solutions for the customer. The marketing encyclopedia
refers to the repository of product and program information that a
vendor needs to have quickly available for customer use. More and
more we see this repository being made accessible via a Web browser.
The ability to quickly search the encyclopedia and find the most
meaningful and relevant documents is critical. Now sales teams can
collaborate in building the appropriate customer solution from
available product modules.
The fourth element
brings in the ability to satisfy the customer with consistent,
cost-effective, and speedy order management and fulfillment.
Customers often want to know the status of their order and whether
it has shipped. Furthermore, logistics and detailed delivery
information are becoming more important, especially as businesses
move towards a JIT-type environment. The delivery and follow-through
of the proposed solution can hence be tracked.
Finally, the fifth
element, support and feedback, allows a vendor to proactively
address customer loyalty even after the order has closed. Here
access to warranty and uptime data is key. In addition, resources
focused on implementation and training need to be available quickly.
The bottom line is
that these five elements need to work together in order for the
knowledge management system to be effective. Moreover, the ease and
speed with which these elements interact make a significant
difference. That is why, the role of Web-oriented tools, Internet
standards, and a Web browser is growing. The Web interface has
become a de facto mechanism for accessing and using data from a
knowledge management system—a mechanism that is easy to use, easy to
deploy, and easy to support.
This framework can
now be applied in various customer situations.
SALES REP FOCUS
The traditional
environment for utilizing this knowledge management approach has the
manufacturer's salesperson dealing directly with the prospective
customer. Here the vendor sales rep becomes the focal point for the
flow of information. In this context, standard sales force
automation tools to provide ways to tap share information about the
customer. The growing role of the intranet allows the sales rep to
share his data with other team members. The intranet also enables
marketing to deliver product and program information to the reps on
a timely basis. This timeliness is especially important when the
life of the product is relatively short as they are in the high tech
arena. One challenge from a technology point of view is how to deal
with the needs for mobility at the sales rep level. Here the concept
of data synchronization is important. The sales rep keeps the data
he or she needs on their own laptop computer and periodically
synchronizes the data with what is on the main central computer.
This allows them to keep up to date but still have the most recent
information at their fingertips when they visit an account.
At the
customer-focus level, common databases and the intranet provide
mechanisms for ensuring coordination among team members. For
instance, the sales rep can share identified technical requirements
with a systems engineer assigned to that customer account. This
leads to a more timely and quicker response to the customer. Contact
management can also be snared, enabling multiple sales people to
stay on top of a prospect situation.
Another additional
characteristic is the availability of automated requests for
proposals (RFPs) or requests for quotations (RFQs). Here the sales
rep can draw both on data from the customer profile/contact
management arena and on possible products from the marketing
encyclopedia to develop a solution proposal for the prospect. This
reinforces the relationship of the sales person with key
decision-makers in the customer account. Finally electronic
communication via e-mail allows the sales rep to continue to stay
in touch with the customer.
Prudential
Insurance in its Launch Pad project equipped its own insurance
agents with laptop capabilities for customer interaction [ 1 ].
Agents had access both to policy and premium information and to
tools that could analyze and propose different insurance policy
offerings to different customers. The tools also allowed agents to
gather information and track client coverage to assist in
identifying gaps in policy coverage. Hence, agents could mine the
company databases for prospect opportunities and then move rapidly
in proposing appropriate solutions.
In another example,
AlliedSignal through its Broadcaster system provided its 200-person
sales staff with customer information culled from its data sources
[2]. The system also provided order information so that the sales
rep had a complete picture of the account and could be more
proactive and effective in both understanding the customer
situation and in positioning its product portfolio of antifreeze,
oil filters, and other auto parts to accounts. It thus strengthened
the expertise of the sales force and enabled them to use knowledge
management to more effectively sell.
A third example of
this approach is embodied in the specialists that Hewlett-Packard
(HP) uses to call on end-user accounts. As experts in specific
product areas such as PCs or LaserJet printers, HP sales
specialists utilize databases developed in Lotus Notes as their
marketing encyclopedia to configure solutions for particular
customer situations. Standard e-mail then becomes the mechanism for
sharing information among various specialists as well as for
communicating special deal information to field personnel.
To Be Continued