Why is my sales force automation system failing?

Sales force automation (SFA) is the use of software to automate sales tasks, including sales activities, order processing, customer management, sales forecasting and analysis, sales force management, and information sharing. An SFA system is often part of an enterprise-wide information system that connects and integrates sales activities with the organization's other operations. Therefore, SFA software is not only a tool critical to the success of today's sales force, but is also vital to the entire organization. SFA has the potential to empower companies to more efficiently manage their sales force and sales processes, to automate and standardize sales activities, and to connect the sales force with the rest of the organization. The value of these potential benefits in terms of lower costs or increased revenues has encouraged businesses to adopt SFA. Once adopted, however, SFA systems often fail to deliver anticipated benefits. The leading cause of SFA failures has been revealed as low user acceptance, which can be attributed to such factors as the disruption of established sales routines, sales force perception of the system as a micromanagement tool, differences in sales force and managerial expectations for the system, and lack of managerial support for the system as perceived by the sales force. Given these circumstances, managers who are aware of the major issues surrounding user acceptance of SFA will be more successful in implementing such systems. This article explores the utilization of SFA, the benefits derived from these systems, and user acceptance issues. Herein, we offer suggestions that will help organizations succeed in adopting SFA systems.     

Information Technology and Customer Orientation: A Study of Direct,Mediated, and Interactive Linkages

This study investigates whether and how information technology (IT) is linked to a firm's ability to understand and fulfil customer needs, i.e. customer orientation. IT alone or in tandem with other strategic resources may enable businesses to process market intelligence and coordinate organisational responses to meet evolving buyer preferences. Based on a survey of senior marketing managers and PLS path model analyses, we learned that greater IT capabilities are associated with higher customer orientation but in mediated and interactive ways with marketing information quality and organisational trust. These and other findings largely supported the conceptual model. An implication is that while IT capabilities can help firms be more customer-focused, other critical resources must also be present.     

Sales Force Automation Systems and Sales Force Productivity

Abstract

Salespeople are in a unique position of being in very close proximity to customers and thus have the ability to create and maintain long-term relationships with them. Sales force automation systems (SFA) have the ability to help or hinder this relationship building process. This article looks at SFA and its impact on sales force productivity. Much of the current research in the area of SFA seems to focus on efficiency issues within the firm, with particular attention being paid to technology implementation and reasons for high SFA failure rates. The authors review past literature and identify potential areas for future research by creating and presenting a research agenda. Many of the future research areas lie in the realm of effectiveness of SFA rather than the efficiency side of SFA. Although efficiency is still of great importance to SFA researchers and practitioners, the customer or relationship focus of SFA effectiveness is also needed.     

SME Internet use and strategic flexibility: the moderating effect of IT market orientation

Abstract

One of the most important topics in the marketing literature has been the concept of market orientation. However, questions remain as to the dynamics of how market orientation translates into intermediate capabilities. This study explores relationships among different types of Internet usage, IT market orientation (the extent to which IT is aligned to manage customer and competitor information and internal activities), and strategic flexibility (firm capability to respond to the need for change). Specifically, use of the Internet for communication with relevant stakeholders, owing to its market-sensing potential, should be positively and significantly related to strategic flexibility for SMEs with more IT market-oriented alignment. The market-sensing potential of Internet communication to impact strategic flexibility positively for SMEs is likely to be lost under low IT market-oriented-alignment conditions. In contrast, IT market orientation should not moderate the relationship between Internet use for transactions with relevant stakeholders and strategic flexibility, given that the typical order taking and processing is a static, routine function for SMEs. Results supported hypothesised relationships. By delineating the type of Internet usage and required IT alignment that contribute to leveraging the Internet effectively, findings hold implications for future research by clarifying boundary conditions for Internet effects. Specifying how and when Internet use promotes strategic flexibility, an important enabler of competitive advantage, helps small business owner/managers better utilise their limited resources.     

Putting market-facing technology to work: Organizational drivers of CRM performance

A large proportion of firms that adopt customer relationship management (CRM) technology find it challenging to integrate CRM technology into their core marketing processes and utilize CRM strategically to appreciably improve their performance. The authors conceptualize a model to understand the drivers of superior CRM performance after CRM technology has been adopted by a firm and examine strategic utilization of CRM technology as driven by user acceptance and proficiency in the form of employee buy-in and expertise. Top management championship practices, employee information technology (IT) skills, and CRM knowledge are identified and examined as key building blocks toward strategic utilization. The empirical test of the conceptual model is based on a mail survey of North American firms that have adopted information technology-based CRM systems. The results, based on random effects model, show that strategic utilization of CRM technology leads to higher performance when there is an emphasis on using it to manage business-to-business rather than business-to-consumer relationships, user expertise (but not buy-in) impacts CRM performance through strategic utilization, and top management championship practices, CRM knowledge, and employee IT skills impact strategic utilization through buy-in and expertise.     

The logic of being illogical in strategic marketing planning

This article challenges the validity and usefulness of a conventional model of the sequence of stages in strategic marketing planning. Quite simply the conventional model ignores the organisational and human realities facing the planner. This paper proposes an “illogical” but iterative model of strategic marketing planning which is driven by the managerial understanding of the environment and knowledge of what tactical imperatives exist and constrain implementation. The advantages of explicitly recognising this “illogical” aspect of the planning process lie in: coping better with information demands made by executives in planning; allowing for psychological planning constraints and the obstacles created by the real nature of the manager's job; and in gaining the implementation of strategic marketing plans, with all that this implies for organisational and cultural change. The argument leads to an agenda of issues to be considered by the executive responsible for managing the strategic marketing planning process.     

The Impact of Outsourcing Strategies on Information Systems Capabilities in the Hotel Industry

This work analyses the strategy of outsourcing information systems and information technology (IS/IT), considering the different activities comprising the IS/IT area. The literature on IS contains numerous works that analyse outsourcing, very few of which examine the relationship with the different types of capabilities in the IS/IT area and their strategic value. Most works centre on the motives for, and advantages of, the strategy of outsourcing the IS/IT area, while scant attention has been paid to the study of the long-term consequences of outsourcing. This work develops a theoretical model which is applied to the hotel sector and which shows that hotels following a more intensive outsourcing strategy develop fewer managerial capabilities related to knowledge in the management of IS/IT resources. This negative relationship extends to other types of capabilities typical of the area and to certain organisational capabilities. A negative relationship is also observed between the level of outsourcing and the strategic value given to the IS/IT area, which may lead to a lower potential for the development of competitive advantage.     

Pushing boxes or solving problems? Some marketing issues in the diffusion of computer‐integrated manufacturing innovations∗

This paper reviews some early evidence on the adoption and diffusion of computer‐integrated manufacturing in the UK. It draws particularly on research into experience with partially‐integrated applications of advanced manufacturing technology such as flexible manufacturing systems. Analysis of both supplier and user side issues is followed by a brief discussion arguing the need for closer integration at a number of levels. Within the supply side the various actors need to cooperate or move towards other forms of strategic alliance. On the user side successful implementation of integrated manufacturing technology appears to depend on supporting organisational integration. Finally, the novelty and complexity of the technological systems being sold requires a shift from simply selling automation products towards working closely with users in providing appropriate and often highly specific solutions to their problems.     

The Role of Distribution Channel Agents in Promoting Innovative Activity in Small Retail Businesses: A Case-Study of IT Adoption

The successful application of information technology (IT) offers the retailer, large or small, a decisive source of competitive advantage. Smaller retailers, however, have generally been slow to embrace the new technologies of sales data capture, analysis and communication. Within the distribution channel, four intermediary agents - wholesalers, trade associations, voluntary groups and franchisors - are well-placed to encourage more widespread take-up of IT among small retailers. The role of each agent is examined through the presentation of survey-derived information, and it is suggested that none of these agents has exploited widely this potential to promote innovation adoption. However, the presence of identifiable geographical and organisational clusters of small retailers using IT illustrates the important role being played by some of these agents in promoting IT adoption and indicates ways in which many others could encourage innovative activity.     

How to create information management capabilities through web 2.0

Over the last two decades investment in information technologies (IT) has been sufficiently high to be considered economically relevant. However, it has not been easy to prove that there are positive effects of these investments on organisational performance. This study questions the validity of directly relating web 2.0 initiatives to firm performance without taking into consideration other complementary assets such as managerial skills in IT, organisational restructuring and a culture of change. If these factors are not present, IT may not in fact produce any benefits whatsoever. The authors approach this problem using the resource-based view and propose the construct information management capability as a measure to gather the integration of the various co-specialised and complementary capabilities, whether technological or human and organisational, necessary in order to obtain competitive advantages in information use. A scale is created to measure this construct, the reliability and validity of which are demonstrated.     

Senior marketers’ insights into the challenges of social media implementation in large organisations: assessing generic and electronic orientation models as potential solutions

Abstract

The unique characteristics of social media (SM) have made it difficult to implement this tool within many large organisations. This paper seeks to identify the implementation challenges and evaluate alternative organisational orientations that may provide solutions. We aimed to reconcile theory with current practice by integrating the extant literature with data from three focus groups involving 27 senior marketing executives. The managerial discussions identified additional challenges to those previously discussed in the literature, which appear to result from SM’s unique characteristics. These include: interactivity, the integration of communication into distribution channels, collaborative media and information collection. Using both broad orientation models (market orientation and entrepreneurial orientation) and a specific digital orientation (e-marketing orientation), guidelines and research propositions for effective implementation are put forward.     

Integrated Information Supply for Decision Support in Grid Companies

Increasing regulatory requirements such as price cap regulation have increased the importance of strategic grid asset management. Empirical studies reveal that information supply and consolidation are error prone and long-term processes. The reason is the missing automation of extraction, transformation, and loading. The current gap does neither fulfill the requirements of regulatory nor the necessity of standardized reporting. Furthermore, a detailed planning is not enabled and the calculation of key figures is extensive. Currently, a framework that considers the coupling of financial and technical key figures, the coupling of strategic and operative key figures as well as the integration into information systems is not existent. Therefore, this paper addresses the design of a reference model as a recommendation for action to integrate the asset management within information systems. It is validated by expert interviews. Moreover, it provides information to integrate relevant financial and technical artifacts from distributed systems. Simultaneously, it provides recommendations for implementing a Business Intelligence architecture in the context of strategic decision support.     

The Development of International Business as an Academic Discipline

Abstract

This article reviews the emergence of international business (IB) as an academic discipline through an examination of IB research, curriculum, and location within the organisational structures of universities and business schools. A selective review of the literature on IB education is used to identify different approaches to the formulation of the IB curriculum and its constituent parts and principal features: internationalisation of business functions; integration of constituent subject areas; multidisciplinary and strategic orientation. This is used to derive a number of pedagogic implications for both teachers and students of IB: sequencing and ordering of the curriculum; revealing the ontology and epistemology of IB; breadth versus depth in the curriculum; emphasising a study of or for IB; locating and structuring IB within a modular programme; class room practice for delivering the IB curriculum.     

Psychological contracts and independent sales contractors: an examination of the predictors of contractor-level outcomes

Abstract

Over the past decade, the independent sales contractor (ISC) has emerged as both an important distribution channel and a management challenge. This study makes two contributions to this evolving field. First, it explores the interrelations of the psychological contract with sales performance, voluntary turnover and organisational advocacy of ISCs, which have hitherto been largely unexplored. Second, it examines differences between high- and low-performing sales contractors on these linkages, due to findings in the literature that a small number of sales contractors often achieve a majority of sales. Based on survey data as well as 7 years of contractor-level data related to sales performance and voluntary turnover (n = 189), results indicate that psychological contract fulfilment and perceived dependency are important determinants of subsequent sales performance, voluntary turnover and organisational advocacy, with significant differences reported between high- and low-performing ISCs. A notable finding pertinent for sales managers responsible for managing ISCs is that high-performing sales contractors are motivated by psychological contract fulfilment and a low perception of dependency, while low-performing sales contractors are more likely to act as advocates for the firm due to perceived dependency, but may concurrently engage in organisational advocacy as a means to leave the firm.     

The Impact of Shared IT on Efficiency and Learning

ABSTRACT

A growing percentage of enterprises around the world are implementing technologies and systems to support exchanges with suppliers. Through public and private networks, enterprises worldwide, particularly large enterprises, are increasingly connected to their suppliers. However, the role played by information systems and technologies in the context of exchanges with suppliers is not well known. Information technology (IT) has been presented as both a means for diminishing the importance of relationships with suppliers and as a means of enabling new forms of collaboration. We believe this apparent contradiction can be resolved by focusing on the impact of shared IT on firms' two key objectives: efficiency and learning. We hypothesize that shared IT increases both efficiency and learning, but through different mechanisms and under different conditions.     

The Chinese Are Coming

ABSTRACT

A mixed-method research approach underpinned exploration of antecedents of strategies adopted by Taiwanese small medium-sized enterprises in the clothing and textiles industry to counter the negative economic effect of globalisation and the increasing competitive threat of lower-cost Chinese products. Primary data were collected from 10 case-companies. Phenomenological methods isolated the contingent variables, whereas positivistic statistical analysis quantified the extent of their perceived impact. A range of hypotheses developed from the literature framed the conceptual model. Although the limited data suggest some caution, findings show statistical significance between a perception of good performance and a range of deployed tactics that include: leadership with technical and innovative motivational style of management; horizontal and vertical industry networking, organisational culture underpinning continuous improvement; original equipment manufacture and original design initiatives; specialist staff recruitment; presence in key overseas markets; and integrated IS/IT. Government support initiatives were not regarded as useful. Whilst these empirical findings contribute to our theoretical understanding of strategic issues in this international sector, the results have implication for industrialists and policymakers alike.     

The Potential of Information Technology in Facilitating Relationship Marketing

Abstract

The aim of this paper is to explore the role of information technologies in facilitating a relationship-marketing orientation. On the basis of conceptual and empirical contributions, we propose that while the use of IT can improve customer knowledge, it does not facilitate me acquisition of me other elements required to develop long-term relationships with customers and clients (i.e., trust, commitment and personalization). Our survey of top managers supports our contention that the use of IT does not suffice to facilitate marketing orientation.     

New Service Development and Digitalization: Synergies of Personal Interaction and IT Integration

ABSTRACT

This study investigates the effects of personal interaction and information technology integration (IT integration) on new service development in business-to-business (B2B) service firms' relationships. Personal interaction, IT integration and new service development are latent variables in a structural model tested with LISREL (N = 138). The relationship between personal interaction and IT integration is strong and indicates that both these constructs are drivers for new service development. Although both these constructs represent diverse ways of interacting, they both positively impact new service development. Hence, managers should not expect IT to replace personal interaction to a great extent in B2B-service contexts.     

Fueling Innovation through Information Technology in SMEs*

This paper describes a study that investigates the mediating effects of information technology (IT) on the relationships among product and process innovations and firm performance (measured in multiple profitability and growth rate metrics). Using structural equation modeling on a sample of 397 small and medium‐sized enterprises (SMEs), we find evidence that (1) increases on the strategic emphasis placed on innovation, both product and process, positively impact the prominence managers place on IT; (2) the impact of innovation (both product and process) on performance (both profitability and growth) is primarily indirect, felt via the mechanism of the importance managers place on IT; and (3) an increased emphasis on IT abets managers' perception of their firms' performance, as compared with that observed among peer firms (other SMEs).     

Sales management: Learning and innovation in Japan

Abstract

The purpose of this study was to examine ways to promote learning, based on four empirical studies of salespeople and sales departments in Japan. First, analyses of survey data of 192 real estate salespeople indicated that customer- and goal achievement-oriented sales beliefs enhanced experiential learning at work. Second, analyses of data of 193 sales departments indicated that customer orientation in sales departments promotes innovation by facilitating task conflict and preventing process conflict. Third, analyses of survey research of 199 sales departments indicated that behavior-based and knowledge-based management control systems are effective at promoting learning and innovation. Finally, a case study of Nippon Boehringer Ingelheim (NBI) revealed several ways to facilitate learning using a behavior-based sales management control system. Theoretical implications for sales management systems were examined.