Customer

Relationship

Manage-ment

IMEN381 Management Information Systems 

of

20090491 Hyungsoon, Park

20090507 Geunha, Oh

20090969 Yongjin, Park

About HyundaiCard

SWOT Analysis of HyundaiCard

Problems of HyundaiCard in past

Using IS; CRM - What is CRM? - CRM in HyundaiCard - Effect

Using IS; TPS for CRM - What is TPS? - TPS in HyundaiCard

Value Chain

P5CFM

Application of Hammer’s reengineering

to HyundaiCard

Contents

About HyundaiCard - Introduction & History

Introduction

- 1 -

Hyundai Card is the credit card subsidiary of the Hyundai Automotive Group. - major business: card issuing and operating.

Hyundai Card is pursuing a global company status through partnerships with the world leading financial company GE Consumer Finance, and continues to grow rapidly through supports from our customers by obtaining several awards. Eg] - 1st in NCSI (National Customer Satisfaction Index) - The most recommendable card company (Net Promoter Score)

In the past several years, Hyundai Card adopted innovative credit card design such as mini-card, transparent card. It also achieved outstanding success with differentiated marketing strat-egy using VVIP card. After 5 years since its establishment, the company achieved a 7-fold growth in market share.

History

About HyundaiCard - Market Share & Net Profit

- 2 -

Market Share Market Share Trend Year Market Share

(Sale on Credit)Ranking

2002 1.9%2003 4.1%2004 7.8%2005 9.8%2006 11.8%2007 12.8%2008 13.8%2009 15.7% 2nd (1st: Shinhan Card)2010 15.7% 2nd (1st: Shinhan card)

Net profit

Year Net Profit (billon Won)1999 (590)2000 (150)2001 6352002 (145)2003 (627)2004 (218)2005 862006 2812007 2342008 2022009 2132010 284

Market Share

Net Profit

SWOT Analysis of HyundaiCard - SWOT Analysis

- 3 -

Competitive

statusState ofExternal environment

Strong Weak

Opportunities Concentration Turnaround

ThreatsDiversificatio

n Liquidation

S.W.O.T. Analysis

Problems of HyundaiCard in past - Credit Card Weak Crisis, Following Company, Many competitors

- 4 -

Solution!

Following Com-pany

Credit Card Weak Crisis in

2003

Many competi-tors

Customer Relationship Management

Using IS; CRM - What is CRM?

- 5 -

- An integrated system and databases accomplish-ing a variety of customer-focused business processes that support the three phases of the relationship be-tween a business and its customers.

Managing the full range of the customer relation-ship involves two related objectives: one, to provide the organization and all of its customer-facing em-ployees with a single, complete view of every cus-tomer at every touch point and across all channels; and, two, to provide the customer with a single, com-plete view of the company and its extended channels.

CRM(Customer Relationship Management)?

Customer

Relationship Management

Using IS; CRM - CRM in HyundaiCard

- 6 -

Management systems to CRM in HyundaiCard

‘CLM(Customer Lifecycle Management) office’ - One of CRM team. 60 employees manage the customers analyzing the 7million members’(2009) data like buying habits, card use, life style.

‘P&C(Program & Communication) team’ - One of CRM team. They strategize the customer manage- ment and communicate with customers by analyzed data. * Role: communication with customers.

‘EEP(Early Management Program)’ - They recognize how customers use credit card, what they need for 6 months after issuing credit card.

CRM

By CRM, HyundaiCard analyze What customers’ need

then

They provide great eventproper to customersand develop fancy design

Target Segment

By target sement, HyundaiCard segmented VVIP, also potential VVIPcustomers

then

They provide special designand marketing to VVIP, keeprelationship with VVIP

CrisisFollowing company

Many competi-tors

Using IS; CRM - Effect

- 7 -

Contact Center & In-novative Customer Satisfactory Policy

VVIP

Effect of CRM

Customer can connect Hyundai Card by Contact center directly. -> Recognize customer’s informa-tion Hyundai Card innovated the sys-tem to react customer’s complain immediately

marketing which targeted high-income group at the first time Although the annual fee is 1mil-lion won, Hyundai successively col-lect 1500members in 3years by providing premium service

CRM Effect

Using IS; TPS for CRM - Introduction of TPS and TPS in HyundaiCard

- 8 -

TPS in HyundaiCardTPS?

- TPS is a type of information system.

TPSs collect, store, modify, and retrieve thetransactions of an organization. Transaction is an event that generates or modifies data that is eventually stored in an information system. -> It manages DATA that must be left in a consistent state.

Transac-tion Pro-cessing System

IS

TPS CRM

SIS

is the key of

At the time Hyundai Card planned to perform CRM, TPS would not be providing all the DATA CRM needsThen, HyundaiCard should innovate

Hyundai Card motivate customer’s appetite to use their services Analyzing customer’s needs, Hyundai Car could get great marketing effect

Value Chain - Value Chain focused on CRM

- 9 -

Marketing & Sales

Developing specific service that is fitted to specific customers to diversify Hyundai Card service for value creation in terms of service

Services

Primary Activi-ties

Support Activi-ties

Because CRM integrates customer-related data from outside and inside of company and analyze it for maxi-mize customer-centered information material, company can easily design marketing activities and service that they provide for value creation using CRM’s information material

Technological development

P5CFM - Poter’s 5 Competitive Forces Model

- 10 -

P5CFM

Threat of new entrants

Because of a huge entry barrier in credit card industries, so threat of new entrants is low.

Suppliers

Since large numbers of suppliers, also technology isn’t im-portant, so bargaining power of Hyundai Card to suppliers is strong.

Substitutive Prod-ucts

Credit card is a very convenient means of trade and there are few products which can be re-placed.

Buyers

Because there are so many kinds of credit cards, so power of buy-ers was strong. However, by CRM, Hyundai Card get strong bar-gaining power.

Low

Strong

Low

Weak -> Strong

Such as Shin-han card, Samsung card, KB card

Application of Hammer’s reengineering to Hyundai Card - Reengineering to Hyundai Card; Career Market

- 11 -

The radical redesign of an organization’s processes, espe-cially its business processes

Improving the main standard things such as price, quality, service, speed.

Reengineering

Career Market

Career Market

Career Career

Head ofDepart-ment

CareerCareer

Employees who want to change de-partment

By Career Market, employees registered their career, and they can change depart-ment

Question?

- 12 -

M I S