Business Impact Analysis (BIA) is used to ensure that businesses continue with their time-sensitive activities in light of the impact of disruptions that are likely to occur. When a company is migrating its applications to the cloud, it needs to plan for this transition by ensuring that their customers and process are secured. The objective of the BIA is to monitor the migration of the on-premise CRM to the cloud. This process will affect customer relations and marketing. The economic impact of the migration is ensuring that customers can get sufficient care. The BIA cycle begins with understanding the organization, determining, develop and implementing response, and finally maintaining and reviewing the process.
Patrick’s Company has decided to migrate its e-Commerce System on cloud and, after thorough research, has settled for X2CRM. X2CRM is a seamless enterprise CRM, workflow, and marketing automation platform developed by X2Engine Inc. The company is a client-oriented committed to doing the necessary to guarantee the clients. The company chose this cloud because its applications are in a unified module in one platform and assure the user of complete control. The system contains pre-made and customizable features that provide the firm with the flexibility to appeal to its customers. It includes the management of sales, marketing, and support, all in the same location, with full control of the administration. It enables teams from different departments to work together seamlessly to deliverable quality service for their customers.
Business impact analysis (BIA) is a process used to determine business continuity needs by identifying time-sensitive activities such as workflow, process, and marketing, and how they can be affected by stemming disruptions. It encompasses identifying supporting resource dependencies and establishing recovery time targets. As such, the X2CRM platform provides such utility by improving business value and efficiency by automating customer experience. Moving a business application to this cloud will facilitate customer engagement through mass email management, complex list management, multiple campaign management, automated A/B testing for products, and sales and admin reporting. It also provided for advanced subscription management, which reduced the needs for consultants or coding experts. Therefore, this cloud system will support BIA by assisting the firm in prioritizing, managing inventory, and establishing recovery timeframes.
Wigand (1997) alluded to the importance of electronic commerce as one of the motivations for companies who were rushing to use computers in their process by the year 2000. He argued that information and communication technology had the potential of positively influencing structures and business processes as inadvertently their competitive advantage. The term “electronic commerce” emerged in the 1970s, and there was still a clear distinction between “electronic business,” “electronic commerce” and “electronic markets” (Wigand, 1997). However, the internet and the World Wide Web (WWW) led to increased interest and recognition of their role in commerce. The article foresaw the computer’s potential to facilitate two-way communication where customer can order their products while sharing their views with the world (Wigand, 1997). As such, the effects of information technology on electronic commerce had been envisioned as being critical in coordinating business transactions between customers and suppliers.
Cordella (2006) examined the impact of transaction costs and information systems on electronic commerce. Electronic markets have been described as providing answers to the shortcomings of the organization’s transactions. The paper builds on Ciborra (1996) proposal for the application of transaction cost theory as electronic commerce. However, Cordella (2006) states that the problems associated with information partly contribute to the transaction cost. The costs are related to interdependencies among different factors, which leads to their growth. There was an indication that information communication technology (ICT) design and implementation have a direct impact on information flow, distribution, and management. Survival in modern society depends on our ability to take on vast amounts of new information; it is critical for a business to know how this data can be converted to valuable information. Therefore, ICT is crucial as a point of exchange and retrieval of information for organizations.
Ciborra (2009) explore the use of electronic government as a mean of enhancing efficiency, accountability, and transparency in the economic governance of less developed countries. Using the case of Jordan, the paper demonstrated the difficulties experienced in implementing e-government in the local context, given the diverse socioeconomic and technological infrastructure. The system revealed that the marketization of the state and conversion of citizens into customers is counter-productive. Leonard & de Valliers (2000) argue that their relationship with the end-users determines the effectiveness of e-commerce application developers. As such, the customers are essential in defining whether an eCommerce system will be efficient. They argue that end-users are multidimensional entities that should be managed with care. Leonard & ed Valliers state that the two dimensions for managing the customers or end-users could be physical and abstract. The eCommerce developer and end-user’s relationship facilitate the element of support-oriented organization that creates mutuality, belonging, and connection. Therefore, customer relations management (CRM) tools are essential aspects of the business.
Band (2008) examined the best practice framework for CRM. He argued that most enterprises struggled with the adoption of CRM best practices because of poorly conceived strategies that lack focus. Consequently, many businesses have had shrinking marketing return on investment (ROI). Although businesses are expanding their resources on effective and efficient marketing strategies, they still find it challenging to measure their efforts. The weak customer analytic keeps companies in the dark (Band, 2008). This blind spot results in poor service, which inadvertently reduced satisfaction and erodes loyalty. The adoption of a weak data management cloud is also associated with a poor understanding of customer behavior. Poor understanding of customers leads to lost sales opportunities. Band (2008) proposed understanding the importance of CRM capability to business goals.
Business Impact Analysis
CRM is meant to improve the customer’s overall experience by enabling the organization to manage direct interactions such as sales, customer service, and marketing. It is an essential determinant of profits as well as loyalty and overall success. The tool will help the firm to control the data related to customer relationships and keep track of it to predict the client’s needs (Stefanou et al., 2003). However, as the organization grows, so does the data and its sources. The sources of the data can be sales or social media monitoring. CRM allows the organize the data, analyze it, and use it to forecast trends and customer behavior. The information derived from the tool will be embedded into the company’s business strategy. It is also critical in building positive customer’s experiences based on real-time and relevant information. However, the company needs to understand the business impact of the system going into the cloud.
Impact of Moving X2CRM to the Cloud
Although many companies know that they should be moving their CRMs to the cloud, they express concerns over costs, disruptions, security, and compliance as more cybersecurity regulations are implemented. Managers struggle with quantifying the economic impact of moving the X2CRM from on-premise to the cloud. Therefore, the first focus should be on the primary stakeholders who are the customers. Recently, customers are demanding applications for virtually everything, from ordering pizza to booking movie tickets. Customers expect the highest level of service, availability, and engagement from companies (Stefanou et al., 2003). As such, moving the CRM to the cloud will deliver on these customer experience needs. In a recent Forrester study, the impact of good customer experience can lead to an equivalent of a 1% increase in revenue per customer.
Moving X2CRM to the cloud enables marketers to understand customer behavior and trends. While the purchasing stages have remained constant, a well-structured application can provide all the necessary information for customers to purchase without going “outside” it. For instance, as opposed to on-premise CRM, the cloud enables marketers to provide all the necessary information that customers can access anywhere and in whatever format they want. Marketers can prioritize leads and build segments that enable them to lace the right products and information in front of the customers. As such, the business impact of moving to the clouds encompasses the faster conversion of leads and more sales (Stefanou et al., 2003). It also provides a direct link with the customers to provide feedback, which can be used to improve the information.
Business Continuity Process
Cloud CRMs allow the agent to access relevant information in one place, which will enable them to hit their key performance indicators (KPIs). Cloud-based CRM enhances the management of opportunities and sales pipelines and improved sales team productivity. Increased sales performance is a measure of profitability. Upon making a purchase, customers usually need essential information on payment and shipment. Customers are looking for the quick time-to-value response, which makes them feel appreciated and develops their loyalty (van Velzen et al., 2019). These customers will also spread the message to their friends and customers, which increased the leads and, hopefully, conversion. The collection of customer information at this point, such as feedback and reviews, can be used to define the marketing strategy.
X2CRM moved to the cloud will enable the company to be nimble by allowing it to scale up or down faster. The company can also switch location as well as provide flexibility in terms of hours. This reduces the organizational expenditure of transport and wages. Deploying, maintaining, and upgrading CRM on the cloud is also far easier than on-premise. This means that there are fewer interruptions as updates can be scheduled to provide the least disruption to the business. The company will also worry less about the physical security of the organization’s services since the cloud is created to protect such information.
The General Data Protection Regulation (GDPR) that came in force in May 2018 was developed to protect the online privacy of EU citizens by allowing them more rights and control over their information (Degerman et al., 2019). The protection includes how it is collected, stored, and used. Moving the CRM into the cloud means that they will be subject to the EU countries. CRM applications help organizations track, monitor, develop, and leverage relationships to increase revenue. Compliance with the GDRP means managing consent at all points of contact. This process ensures that customers understand and consent to their information being collect and for what reasons. The company will also be able to define and control access to data. The organization will also need to oversee data security and facilitate the right to erasure should users’ demand. Therefore, the implementation of these measures means getting people who are qualified.
The kind of data in CRM is what is protected by the GDPR laws in the EU countries. The personally identifiable information (PII) is what organizations use to understand the behavior of their customers. Organizations using customer information are required to comply with these laws when dealing with clients from EU countries. 92% of companies use databases to store customer information and need to plan for GDPR compliance (Degerman et al., 2019). First, it is crucial to understand what the GDPR laws encompass. The cloud CRM solution should support the collection and management of personal data securely. The company must engage the services of an in-house legal expert to interpret the implication of the regulation on the business. The company will also consult the GDPR resource to ensure compliance.
The GDPR affects how information is collected, stored, and protected. The main impact of the regulation is on marketing and sales prospecting, which means that it has to change the customer service department and handle personal information with extra-caution. The initiation means adopting a cloud CRM that is focused on privacy by design. Privacy should be built into the core of the system. The information should be secured in an encrypted database that is well protected from internal unauthorized access or hackers. The CRM tool should also envision the eight rights provided for by the GDPR which are: the right to consent, right to data protection, right to view personal data, right to correct data, right to get notified, right to data portability, right to be forgotten, and automated delete (Hossan, 2019). The company should be ready to consistently and continuously facilitate this process. Finally, the organization should understand that any customer information that goes into the database is by default personal data.
The legal considerations in data storage encompass three CRM features for customer data. The GDPR required businesses to define their purpose for collecting personal information, which should be supported by the law. A legal base is a contractual obligation or legitimate interest for storing and using data that have explicit consent. The organization must prove that the individual user provided consent. Second, CRM encompasses subscription management, whereas GDPR requires that, even with consent, the user has the right to opt-out of receiving marketing information (Hossain, 2019). The X2CRM should have a feature that allows customers to decide which kind of information they would like to receive from the company. Finally, the company should segment the data into personal data and other types of information that may not need the same level of compliance. Bulk updates of the information should be set up to save on time.
The movement of a CRM to the cloud requires an all-round analysis of the business from an economic and legal perspective. The information will be accessible to consumers, and marketers will be able to use customer feedback to monitor trends. In this case, moving the CRM to the cloud will be a positive as far as access customers are concerned. However, the legal implication of GDPR means that the company needs to ensure they gain customers’ consent. As such, they were migrating to the cloud has legal implications that may affect the business from the legal perspective. The GDRP regulations secure the customers’ trust and business commitment, which is essential for a thriving business. The platform for migration should provide for the security of personal information, which can be subject to legal considerations. The cloud platform should also be fast and scalable to ensure that it grows with the business. The project migration evaluation must be determined by analyzing its effects on business continuity.
The migration of company business applications on cloud is a critical process that can have a legal and economic implication on the company. Numerous researches have indicated the importance of CRM for electronic commerce. The business impact analysis performed to take into account business continuity and time-sensitive processes. The process of the company carried out by the CRM include marketing, customer service, and sales management. The standard for compliance includes customers’ privacy as well as banking regulations for the business. The legal compliance requirement consists of the GDPR, which requires firms to guarantee that clients’ information will be protected. As such, although the decision to migrate to the cloud is reasonable, the company needs to ensure compliance with the legal requirements.
Band, W. (2008). CRM best practices adoption. Business Process & Applications Professionals. Forrester, 6-11.
Ciborra, C. U. (1996). Teams, markets, and systems: Business innovation and information technology. Cambridge university press.
Cordella, A. (2006). Transaction costs and information systems: does IT add up? Journal of Information Technology, 21(3), 195-202.
Degerman, I., Eckerbom, J., & Gu, H. (2019). How do B2B companies approach CRM and the management of customer data in today’s era of social media and GDPR?: A Multiple Case Study.
Hossain, S. (2019). A case study on managing customer data to comply with GDPR.
Leonard, A. C., & de Villiers, C. (2000, April). The nature of end-user relationships in the development of electronic commerce applications. In Proceedings of the 2000 ACM SIGCPR conference on Computer personnel research (pp. 86-92).
Stefanou, C. J., Sarmaniotis, C., & Stafyla, A. (2003). CRM and customer‐centric knowledge management: an empirical research. Business Process Management Journal.
van Velzen, D., de Jong, M., & Jansen, S. (2019). Business Continuity Risks Through the Use of Software-As-A-Service: A Descriptive Survey.
Wigand, R. T. (1997). Electronic commerce: Definition, theory, and context. The information society, 13(1), 1-16.