EBIS112-007 Assignment 1
KWOK SIO FONG HB410647

1. With reference to figure 1-8 in your textbook. The horizontal axis represents the IT Capital Investment relative to the industry average while the vertical axis represents the Productivity relative to the industry average. Each dot on the diagram represents the IT Capital Investment vs the productivity for a certain organization. a) Explain what is the core message intended to be delivered in this figure.
The answer lies in the concept of complementary assets. Information technology investments alone cannot make organizations and managers more effective unless they are accompanied by supportive values, structures, and behavior patterns in the organization and other complementary assets. Business firms need to change how they do business before they can really reap the advantages of new information technologies. b) Explain briefly with your point of view on why it will be the case?
Complementary assets are those assets required to value from a primary investment. For instance, to realize value from automobiles requires substantial complementary investments in highways, roads, gasoline stations, repair facilities, and a legal regulatory structure to set standards and control drivers.

2. a) Define customer relationship management (CRM) systems.
Customer relationship management (CRM) entails all aspects of interaction that a company has with its customers, whether it is sales or service-related. While the phrase customer relationship management is most commonly used to describe a business-customer relationship (B2C), CRM systems are also used to manage business to business to business (B2B) relationships. Information tracked in a CRM system includes contacts, clients, contract wins and sales leads and more.

b) Describe business values of customer relationship management systems.
CRM helps