University POLITEHNICA of Bucharest [622508]

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University POLITEHNICA of Bucharest
Faculty of Entrepreneurship, Engineering and Business Management
Management of the Digital Enterprise

DISSERTATION PAPER

“TRENDS TO IMPROVE THE COMMUNICATION PROCESS
THROUGH IT”

Scientific Coordinator Graduate
Prof. Univ. Dr. Ing. Anca Alexandra Purcărea Chiru Mihai -Cristian

Bucharest
2017

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ACKNOWLEDGEMENTS

Through this note, I would like to thank all the professors from FAIMA
faculty, part of the University Politehnica of Bucharest for all the support over
the two years of study. Their help was outstanding and helped me to better
understand important concepts used in the Dissertation Paper.

I would like to address a special “Thank you” to Prof. Univ. Dr. Ing Anca
Alexandra Purcărea that guided me throu gh all the 4 semesters of the Master
Program and helped me at all times with valuable suggestions regarding this
paper.

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Contents

1. Abstract ………………………….. ………………………….. ………………………….. ………………………….. …………….. 5
2. Introduction ………………………….. ………………………….. ………………………….. ………………………….. ………. 6
3. Research methodology ………………………….. ………………………….. ………………………….. ……………………. 7
4. IT&Communication Industry Overview ………………………….. ………………………….. ………………………….. 8
4.1 Historical background ………………………….. ………………………….. ………………………….. ………………. 8
4.2 Evolution ………………………….. ………………………….. ………………………….. ………………………….. ……. 8
4.2.1 Mainframe Era ………………………….. ………………………….. ………………………….. ……………………….. 9
4.2.2 Personal Computers and Local Area Network Era ………………………….. ………………………….. ……. 9
4.2.3 Internet Operations Era ………………………….. ………………………….. ………………………….. …………. 11
4.3 Romanian IT&Communication market ………………………….. ………………………….. ………………….. 12
4.4 Global IT&Communication market ………………………….. ………………………….. ……………………….. 15
5. Communication Process ………………………….. ………………………….. ………………………….. ………………… 15
5.1 Historical background ………………………….. ………………………….. ………………………….. …………….. 15
5.2 Evolution ………………………….. ………………………….. ………………………….. ………………………….. ….. 17
5.3 Integrated Communicatio ns ………………………….. ………………………….. ………………………….. ……. 18
5.4 Video Calls ………………………….. ………………………….. ………………………….. ………………………….. … 19
5.5 Applications based on Cloud technology ………………………….. ………………………….. ……………….. 19
5.6 Portable Devices of small sizes ………………………….. ………………………….. ………………………….. … 20
5.7 Business Social Networks ………………………….. ………………………….. ………………………….. ………… 20
5.8 Collective Workspaces ………………………….. ………………………….. ………………………….. ……………. 21
5.9 Unified Technology Integration ………………………….. ………………………….. ………………………….. .. 22
5.10 Chat Platforms ………………………….. ………………………….. ………………………….. ………………………. 22
6. Communication Flow in Business ………………………….. ………………………….. ………………………….. ……. 23
6.1 Internal Communication ………………………….. ………………………….. ………………………….. ………………. 23
6.1.1 Downward communication ………………………….. ………………………….. ………………………….. . 23
6.1.2 Upward Communication ………………………….. ………………………….. ………………………….. ….. 24
6.1.3 Horizontal Communication ………………………….. ………………………….. ………………………….. . 25
5.2 External Communication ………………………….. ………………………….. ………………………….. ………………. 26
7. Means of Communication in Business ………………………….. ………………………….. ………………………….. 26
7.1 Microsoft Lync ………………………….. ………………………….. ………………………….. ………………………….. … 26
7.2 Yammer ………………………….. ………………………….. ………………………….. ………………………….. …………. 27
7.3 Sharepoint ………………………….. ………………………….. ………………………….. ………………………….. ……… 28

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7.4 Summary ………………………….. ………………………….. ………………………….. ………………………….. ……….. 30
8. Other Business Communication Software ………………………….. ………………………….. …………………….. 30
8.1 Hipchat ………………………….. ………………………….. ………………………….. ………………………….. ………….. 30
8.2 Slack ………………………….. ………………………….. ………………………….. ………………………….. ……………… 31
9. Case Study – Acquisition of a CRM in a telecommunication company ………………………….. ………….. 32
9.1 System Architecture Audit ………………………….. ………………………….. ………………………….. ……………. 32
9.2 CRM Implementation ………………………….. ………………………….. ………………………….. …………………… 45
10. Conclusion ………………………….. ………………………….. ………………………….. ………………………….. ……. 56
11. Bibliography ………………………….. ………………………….. ………………………….. ………………………….. …. 58

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1. Abstract

In order to better understa nd the ways through which the continuous change in technology
affected positively the society we will need to look at the history and the provenience of what
we call Information Technology (IT). This paper reviews and analyzes the origin and evolution
of IT and synthetizes its major contribution in the human progress and especially in the
communication techniques. It also provides insight on the communication process in different
periods of the humanity and describes the main communication instruments that are met
nowadays, for personal and business use.
We will also see how a software tool very common nowadays (Customer Relationship
Management) positively impacts the course of a business in the telecommunication industry .
For this, I have elected a company in the aforementioned field with a CRM solution
implemented, which together represent the object of my case study.
In the following pages, the CRM will be analyzed from both financial and non -financial
perspectives and I will outline the findings that incl uded among others a good payback period
in terms of figures and several reasons why a developed company needs this kind of tool.
Prior to the implementation I have tried to perform a high -level network architecture audit
that would reveal any vulnerabilit ies within the company’s system. This assessment has been
performed through Mehari method and quantified through the Mehari coefficient.

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2. Introduction

“Just because something doesn’t do what you planned it to do doesn’t mean it is useless ”,
said the brilliant inventor Thomas Edison. I have picked this quote as I find it particularly
relevant with what happens nowadays in the ever growing and fast developing IT industry.
Even there are only around 60 -70 years of background, the pace at whic h technological
changes happen is sometimes overwhelming. From the first computer, ENIAC, to the creation
of the first personal computer by IBM and the first operating system from Microsoft to the
contemporary times when communication is done via real -time videos and files are transferred
within seconds, IT industry continues to reveal new means of communication.
In Romania we observe that the IT industry is a very important source to the GDP growth.
Our country provides highly skilled graduates, due to th e very good educational systems which
are also incentivized by government regulations to work in this field, one of the most important
measures being the income tax exemption. Apart from hardware and software solutions, our
country also benefits from a par ticular field, semiconductor software development. This
reinforces the above mentioned and our credibility in the eyes of Western Europe companies
as they look to invest into local branches of their businesses.
Globally, North America is the most importan t generator in the industry. One particular
thing to be remembered is that North American workforce is done only in a small percentage
by locals but by emigrants from Asia/Pacific or Eastern Europe.
Looking at the communication process nowadays, Bill Gates stated that he is “a great
believer that any tool than enhances communication has profound effects in terms of how
people can learn from each other and how they can achieve the kind of freedoms that they’re
interested in”. This quote is particularly true as communication is the main tool that influences
people day -to-day lives and has effects on their behavior and way of thinking. Unlike
Information Technology (IT), communication has its roots from the beginning of human kind.
The only changes over time we re the means of communication that had the sole purpose to
make the long distance communication more convenient and available at every time of the day.
The ability to communicate can be deemed the most powerful attribute a human being
possesses. It may als o be regarded as a strict disciple, serving to educate, and inform society.
Today, a higher level of learning and knowledge are maintained due to the volume of
communication we are exposed to. Thus, communication may be regarded as a specialized
function, as it encompasses our everyday lives, and helps us function more efficiently and
productively. Communication insures understanding and provides knowledge of information.
As a society w e have all come to understand communication and in particular how technology,
has radically helped to improve the way information is transmitted. To fully gain an
understanding of communication we must first look at the first means people used to
communica te.

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Nowadays the communication process becomes more and more automatized with a large
variety of features for long -distance communication. Conference calls, video -call meetings or
even 3D -hologram presentations are not a myth anymore and are used by indivi duals to ease
the information transmission process.
3. Research methodology

The current Dissertation Paper is formed of two major parts.
First major part presents an overview of the IT&Communication industry in historical
terms and its evolution up -to-date together with an evolution of the communication process
either social or business related looking both at theoretical communication concepts and at the
newest communication technologies. This major first part was documented through written
bibliography (b ooks, journals, internet), through conversations with advised people within
companies (e.g. IT & HR representatives of several multinationals) and most important
through knowledge accumulated over time.
The second major part of the paper represent the pra ctical part of the paper and looks at the
integration of a CRM software tool within a multinational telecommunication company. First
section is destined to analyze the security of the system architecture prior to the CRM
implementation through Mehari metho d (detailed in the Case Study) . My contribution is
represented by creating a list of questions (combined both from choosing questions from
Mehari templates with my adjustment on top and creating new relevant questions, tailored to
the system architecture). After creating the final question list, I have addressed the questions
detailed below within the Case Study to a representative of each department involved (e.g. IT,
Network Operations, Customer Field Operations, HR, Legal) and asked for grades on a scale
from 1 to 5. I have then interpreted the results according to the Mehari method after calculating
the relevant coefficient through Mehari equation.
After assessing the network and company capability to adapt to the implementation of a
new CRM system I hav e analyzed the situation of the company before and after the CRM. The
analysis has been performed through both financial and non -financial perspectives. For the
financial part, I have collected information from all parties that reported savings after the C RM
implementation and quantified the information on high level. As you can imagine, it is very
difficult to keep perfect track and quantify the savings with 100% accuracy, but the informati on
in the paper represents best estimates provided by the Finance d epartment in a before/after
CRM scenario. Non -financial information has been collected through free talks with the
company’s representatives, including the CFO and senior managers. After obtaining rough
data from the persons aforementioned, I have tried to structure it on several distinct levels of
detail.

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4. IT&Communication Industry Overview

4.1 Historical background

Historically speaking, the term information technology refers to all types of technologies
associated with the collection, processing, storage a nd dissemination of information. However,
once with the modern world, the term has acquired several other connotations. The term IT
came into use in the late 1970s and is now used to include both computer technologies and
communication technologies, as wel l as their common foundation – microelectronic
technology and all associated software technologies.
Until the 1970s, computer and telecommunication technologies were considered as being
very much different. Despite that, significant technical changes in mi croelectronics, software,
optics and the growing integration of telecommunication with information technology have
made this distinction less and less significant. Microelectronics technology represented
common ground for both rapid development and for the convergence of telecommunications
technologies with IT. The transition from analogue to digital technologies has led to switching
systems and transmission that resembles more and more with computers and incorporates a
growing amount of software. Numerous media channels are currently more or less close to the
computers with specific use. In addition, once with the development of technology networks,
communications between computers have expanded enormously since the early 1960s, when
computer online systems were first developed. Together, these evolutions have blurred
traditional differences between telecommunications and information technologies and have
defined the contemporary information technology.

4.2 Evolution
Over the last 70 years, the information tech nology can be divide in several eras (Figure 1):
Mainframe, Personal Computers, Local Area Networks and Internet operations.

Figure 1 IT Evolution

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4.2.1 Mainframe Era
The first operational electronic di gital computer, ENIAC (Figure 2), was built in 1946, in
the USA . Being the first fully electronic computing machine, ENIAC was composed of 30
different units, totaling 30 tones, occupying around 167 sq m, with 17,468 vacuum tubes, that
could only do nearly 400 multiplications per second. Subsequently, the decades 1950 -1970 are
considered as being the high speed computer and organizational minicomputer era,
respectively mainframe. Around 1960s, the business calculations were done around the
mainframe computers which performed batch processing activities. The users were d epositing
stacks of use cards and waited for the results to be printed.

4.2.2 Personal Computers and Local Area Network Era

The first microprocessor (Figure 3), which was invented by M. E. Hoff, a young engineer,
in 1971 at Intel, a semiconductor compa ny, located in the United States of America, has
changed the history of information technology development. Hoff invented an integrated
circuit with 2,300 transistors, which is equivalent with the CPU (central processing unit) of a
computer, thing that rep resented one of the main drivers of data integration in the future
personal computers. CPU on a chip has become known as a microprocessor. Two memory
Figure 2 ENIAC

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chips were attached to the microprocessor: one to move data outside and inside the CPU and
the other one t o command the microprocessor. The computer was not able only to deal with
complex operations, but also control such things as an elevator or traffic lights, making this
invention one of the most important discoveries of the twentieth century.

The first PC, called “Altair”, was developed in 1975. Later , IBM announced the first IBM
Personal computer (Figure 4) and entered the personal computer market in 1981. IBM PC
quickly became a standard for the industry, in 1982 Time magazine awarding the IBM PC the
title “man of the year”. The PC offered 16 kb of user memory, 2 floppy disks and a color ed
monitor. Processor’s chip originated from Intel and the operating system called DOS (disk
operating system) came from a little company at that time, Micr osoft. This outsourcing from
IBM’s side totally changed the industry’s appearance.

Figure 3 First microprocessor
Figure 4 First IBM Personal Computer

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4.2.3 Internet Operations Era

The rapid progress of microcomputers and of communication requirements between
microcomputers has constantly stimulated the develo pment of computer networks and
communication systems via computer. LAN technology has quickly developed in the second
half of the 1980s. Interconnection through LAN has been the base for WAN (wide area
network) which extends over a large geographical area.
However, the project that represented the basis of the Internet began in 1969. “ARPANET”
had the goal to build a computer network enabling researchers across the country to share
thoughts. The initial point was to link four main universities in the Unite d States. By 1971
there were more than 20 sites connected, including Harvard or MIT. Three years later, the
number tripled and by 1981, more than 200 computers were interconnected. Different types of
computers were able to exchange information for the firs t time.
In 1990, things developed and ARPANET was left behind in favor of NSFNET, a network
founded by the National Science Foundation in the USA. NSFNET (Figure 5) was the
backbone of the current Internet. In the 1990s, the Internet became very popular am ong people
of different cultures. Most common means of communication were the electronic mail, Telnet,
a process that allows them to connect to a remote host or FTP (file transfer protocol), a protocol
that allows to circulate information between computers .

Figure 5 NSFNET Network Connections

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4.3 Romanian IT&Communication market

The IT&Communication market in Romania is the biggest and the fastest growing industry.
More than 3,500 players of different sizes, from large multinational companies (IBM,
Microsoft, Oracle) to local com panies and to small businesses make their way by adding
value. All these are a consequence of the Romanian education quality which trains skilled
specialists at the highest standards.
INS (National Institute of Statistics) showed that in 2014, the IT&C se ctor was an
important generator for the country’s GDP, with almost 6% of the total. The record level
registered is around 3.4 million Euro mark. The sector also registered a 0.5% yoy increase.
Of particular note are the government’s policies which strongly support the industry.
Romania is the only country in the CEE (Central Eastern Europe) which offers a full exemption
on income tax for employees working in IT. At first, the rule applied only for graduates of a
profile university, but a new policy now stat es that every graduate that works in IT can benefit
from the tax exemption. This financial incentive attracts students which corroborated with the
very good education quality, provide skilled workforce on the labor market. Also several
schemes for financin g are available, either from domestic money or EU funds, eligible for all
kinds of innovations from R&D centers to regional developments and to advanced technical
equipment.
The Employers Association of Software and Services Industry (ANIS) revealed a reco rd
high income for 2012 of over 350 million Euro, a 7.5% increase compared to the previous year.

Table 1 Evolution of the number of employees in the IT sector

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(Source: Ministry of Finance)

In terms of the num ber of employees, the evolution followed an ascendant path from almost
53,000 in 2010 to more than 63,000 in 2014 (Table 1).
Ministry of Finance portal shows that from 2010 IBM have almost tripled their team while
Oracle reached an impressive number of employees, almost 2,500.
Most important players on the market, in terms of their annual turnover are: Ora cle, IBM,
Siveco, Romsys, Teamnet. (Table 2)

(Source: Ministry of Finance)

Romanian market is also attractive in terms of software outsourcing. Many international
companies create local branches for improving their development operation s due to lower cost
of business compared to other countries (cheaper employees), highly trained and qualified
personnel, good language skills, geographical location (important node, close to Western
Figures are
expressed in
mln. RON
Table 2 Annual turnovers of top players on the IT market

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Europe). Over 400 million Euro were brought by this sub -sector to the country’s GDP. The
structure is composed by IT Services, BPO Services and R&D Services. Their distribution can
be observed in the Table 3.

Semiconductor software
Romania is also strong on the semiconductor software development. Im portant
multinational companies like Freescale, Intel or Infineon are present on the market. Their
activity is mostly done in their i nnovative R&D Centers.
The IT development in Romania is predicted to grow. According to ANIS, the Compound
Annual Growth Ra te is expected to grow at a rate of 2.4% and to reach almost 3 billion Euro
by 2017. Therefore the market is far down the road from reaching its saturation and is expected
to rise even faster than the current pace. Growth of the economy, consumer spending and
government spending growth are expected to stimulate the sector’s expansion. Forecasts of the
Ministry for Information Society, show that a full policy implementation for the interval 2014 –
2020 would require an expenditure of 3.9 billion Euro. Outcome expected is a 13% growth in
the GDP, an 11% increase in the number of available jobs and a 12% decrease in administrative
costs.

60%27%13%
IT Services
BPOs
R&D Services
Table 3 Distribution for software outsourcing in Romania

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4.4 Global IT&Communication market

The global IT Services industry holds important opportunities for industry players due to
increasing IT spending in the healthcare, retail, and transpo rtation sectors, among others.
North America, with 42% of the global market share, dominates the highly fragmented
global IT services industry. Outsourcing locations such as India, China, Vietnam, and the
Philippines are anticipated to be key drivers because of their low -cost labor and skilled talent
pools. The Asia/Pacific IT services industry is expected to register the highest growth rate
among all regions during the forecast period and lead the industry. Government -backed
reforms are expected to contribute to significant increases in spending for IT investments. In
addition, by generating new opportunities for IT vendors globally, cloud computing is expected
to reshape the industry. It is anticip ated to offer immense opportunity to penetrate in the small
and medium business sector.

5. Communication Process

5.1 Historical background

The need to communicate is part of man’s inherent being. Since the beginning of time the
human race has communicated using different techniques and methods. Circumstances and
available technology have dictated the means and method of communications. Looking back
to our ancestors, early forms of communication were writing, depicted on cave walls. Then
communication advanc ed by the development of language and the use of symbols. Papyrus
(Figure 7 ), especially in ancient Egypt, stone encryptions (Figur e 6) and paper were used to
record communication for later use. Drums of African tribes, smoke signals of the early
American Indians and the towers of the Chinese wall are indications of the desire to
communicate beyond the immediate physical boundaries of space. Story tellers around the
Figure 6 Stone carve – Greek characters Figure 7 Ancient Papyrus

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camp -fire are a good example of communication, using animation, gestures and sound to
commun icate their message to other members of the tribe.

For centuries verbal mediation served the function of expressing information. Cultures
depended on spoken words, opposed to written, ensuring a direct understanding between
source and receivers were maint ained.
Communication can be defined as a process which implies exchange of ideas or facts
between people with different ideas, thoughts, attitudes, beliefs. More specific we are looking
at people that hold different positions in organizations that communic ate to reach mutual
harmony (e.g. maximize profit).
The process is affected by a wide range of variables which can change other objectively or
subjectively. At first we have the sender, which is the person who addresses the message. Then
we have the idea t o be communicated which has to be transmitted in a certain way. Since the
subject matter of communication is theoretical and intangible, its further passing requires use
of certain symbols such a s words, actions or pictures . Conversion of subject matter in to these
symbols is the process of encoding. After encoding the information we would require a
communication channel which can be either formal or informal. For the last three steps we
have the receiver (the person to whom the message is addressed), the pr ocess of decoding (try
to extract and completely understand the sender’s message) and feedback (ensure the sender
that he understood the correct message).

Figure 8 Communication process

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5.2 Evolution
In 1948, a model of communication (Figure 9 ) was proposed by Claude Shannon. S hannon
worked for the Bell Telephone Company in America, and was concerned with the transmission
of speech across a telephone line.
Warren Weaver, in association with Shannon, wrote a preface to this model and it was
published as a book in 1949. Weaver s aw the applicability of Shannon's model of
communication to a much wider sphere than just telephony, and it has served as a basis for
explaining communication since that time.

Table 4 Explanation of Shannon's Model of Communicat ion

Nowadays, oral communication is present in our everyday lives, from the car radio
providing the latest traffic reports, to a professor educating students in a lecture hall, all oral
mediation serves to provide the same service: to inform and provide new information. With
the evolution of the pr int press came the evolution of preservation. Ideas could now be stored
for future centuries. Print mediation provided a society a way of preserving history and
tradition, and also served as an independent learning tool. Marshall McLuhan suggested that Message The idea, subject
Source The brain
Transmitter The transmitting device, the mouth
Channel The medium the message travels over, air
Receiver The receiving device, the ear
Destination The brain
Figure 9 Shannon Model of Communication

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print, “allows logical and analytical thinking to occur” (1998). He also asserts that, “technology
of print communications can be seen as promoting both individualism and uniformity” (1998).
Print mediation was both limited in quantity as well was only availa ble to a select few
audiences. However it was a way of keeping the society connected with the past but also
knowledgeable of the future. Print media are prevalent everywhere, as an example books,
newspapers, magazines, etc.
Communication must be understood as a process which has evolved over time from these
traditional mediations. Today, communication and the way we communicate have radically
changed. Although, traditional means of communication will never be eradicated, it is
important to understand that t echnology has aided in the way we interact. Technology assists
in the transmission of information because it has the ability to surpass many boundaries.
According to Manuel Castell’s idea of “ space of flows ” he explains this idea of the
transmission of information. He goes on to define the space of flows as "the material
organization of time -sharing social practices that work through flows". As an example,
consider communication over the internet . The internet may be regarded as an open
communication field which links people all around the world. We may stay connected and
informed because such communication mediums are present and allows us to do so. The idea
of the internet plays on Castell’s the ory because two people do not need to be in the same
vicinity to share information or interact. E -mail (Figure 10 ) or Yahoo chat (Figure 11) are
prime examples of different ways people communicat e over the internet and surpass the idea
of the physical spac e.

5.3 Integrated Communications

Unified communication is the integration of real -time and real -time communication
systems. This in cludes the integration of chat, video calls , audio calls, messaging, feedback,
Figure 10 E-mail service example Figure 11 Yahoo Chat

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commenting solutions and more. Unif ied Com munications also provide a user interface and
consistent experience across a wide range of devices and media types.
With the sole purpose of bringing together voice and data, a unified communication system
reduces infras tructure costs and contains extra features for a more receptive experience. This
makes life easier for everyone and allows management to quickly check when employees are
available for chat (e.g. software commonly used in companies nowadays such as Lync, Skype
etc.).

5.4 Video C alls

While vide oconferen ces have existed since the 20th century, new technologies are
nowadays in common use . The traditional case of videoconferencing in the boardroom has
been replaced with video compatible phones and tablets that allow employees and managers
to call a nywhere, anytime. Within most blue chip companies, performant laptops are given
usually to top management employees, in order for them to be able to keep in touch with their
subordinates when travelling abroad or when being out of office.
Web -based video conferencing services have also facilitated t eam meetings in virtual
cameras and have greatly improved collaboration efforts.

5.5 Applications based on Cloud technology
The c loud movement continues to grow and we are seeing more services directed in this
way. Many companies that provide cloud solutions have affordable service s for small
businesses that can not pay for a fully integrated system to run their daily activities.
Figure 12 Video -conference model

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Services and applications based on cloud technology are also available on portable d evices,
which is very convenient when we collaborate on project s and communicate with the team.
With real -time editing capabilities and other advanced sharing options , many companies elect
cloud options due to their flexibility.

5.6 Portable Devices of small sizes

One of the biggest trends in business communication is the power of portable devices with
full internet access . They have changed the face of business for the better, similar to what the
desktop computer did in the early 80s to the people t hen. Nowadays smart devices are more
advanced than comp uters were just a few years ago bringing features that regular human brain
could not perceive years back (e.g. unlock your mobile phone with retina scan, running devices
that monitor your cardiac perfo rmance etc.)
It is no longer necessary for employees to be glued to their desks to get work done. They
can log in via their smartphones or tablets, access company data, and update the rest of the
team on their progress. With a bring -your-own-device program in place, you can establish
better internal communication in the workplace. Employees can use their personal devices at
work and be just as efficient. The real benefit here is that employees enjoy using their own
devices – and the company benefits by hav ing easy reach to employees at all times.

5.7 Business Social Networks

The implementation of business social networks has been on a constantly upward trend
over the last years . This trend has been powered by commitment and eagerness . Social
Figure 13 Cloud applications scheme

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networks within companies embody common social components similar to what you would be
able to find on well-known sites like Twitter or Facebook .
These features will build more successful internal communication within a
company. They also provide a more relaxed and easie r way to communicate – everybody is
able to contribute and brainstorm ideas as part of a whole .

5.8 Collective Workspaces

Successful companies recognize that working in groups is the key to their success.
Traditional workstations have been replaced with collective workspaces . They embody a social
component to host communication and innovation. These measures came as a consequence to
the need to support worthy work procedures , originality , diversity and a sense of social
connection .
Improved collective work stations upkeep small group connections in less formal
backgrounds . Large spaces make small groups feel uncomfortable and affect in ternal
communication.

Figure 14 Model of a collective work space

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5.9 Unified Technology Integration

The capability to transfer information and data from a platform to another is very common
these days. It is expected that all devices will store all historical conversations and logs
containing the activity performed by a certain user .
This business communication tendency can also be seen in some have your personal
device initiatives. Many companies encourage their employees to treat their own devices
as work partners which might be harmf ul on the social side.

5.10 Chat Platforms

Despite the fact that it is an old innovation, chat services are still around, but they are
renewed. Chat services now support a wide range of media types, including data sharing and
video conferencing. These service s have also been incorporated into existing services, allowing
teams or employees to quickly catch -up when needed.
Social software platforms usually integrate chat service with other communication tools
and some groups have dedicated tools to keep in touch with assigned team divisions.

Figure 15 Selection of Chat Services

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6. Communication Flow in Business

Business communication is a process of exchanging, explaining and promoting business.
It is a proven fact that business success or survival is totally dependent on effect
communication as it is the circuit of the business. The best way to study the important of
communication is to observe t he direction in which it flows within an organization. The
channels of communication can be either formal or informal.

6.1 Internal Communication

Formal Communication Channels
6.1.1 Downward communication

Downward communication means passing information from higher management to
workers and employees etc.
When a manager passes information to subordinate, communicate is flowing downward
the message may be conveyed orally to a group through a meeting, workshop or a written
memo. When employees receive appropriat e downward communication form management
they become more efficient. They need clear job directions, safety rules and view point about
their benefits such as health care, promotion, training pension etc.

Management

Message

Employees

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Advanta ges & Disadvantages:

6.1.2 Upward Communication

Passing information from lower level employees to upper management.
Upward communication is as important as downward communication. Many executives
want communicate form employees in addition to the u sual periodic report. Successful
managers listen closely to opinions, complaints, problems and suggestions especially when
these are clearly put forward. An executive cannot be everywhere at once; he depends on lower
level employees to give him timely repo rt.

Management / High Authority

Message

Lower employees

Figure 17 Advantages of Downward Communication Figure 16 Disadvantages of Downward
Communication

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Advantages & Disadvantages:

6.1.3 Horizontal Communication

Horizontal Communication means passing and receiving information between persons of
same level of job or information.
In addition to transmitting messages up and down the organization, the formal
communication network also carries messages horizontally from one department to another.
Horizontal communication takes place between in organization in order to solve problems an d
to perform job duties.

Advantages & Disadvantages:

Figure 18 Advantages of Upward Communication Figure 19 Disadvantages of Upward Communication
Figure 20 Advantages of Horizontal Communication Figure 21 Disadvantages of Horizontal Communication

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Informal Communication Channels
Every organization has one informal communication network. This is known as ‘the
grapevine’. As people go about their work, they have causal conversations with their friends
in the office, they joke and discuss different things like sports, movies their families etc.
Although many of these conversations deal with personal matters, business is often discussed
as well.
Among various ways of internal communica tion within organization there are memos,
reports, meetings, face to face discussions, teleconferences, electronic mail etc.

5.2 External Communication

Passing and receiving information from outside the organization.
Communication takes place outside the organization is called external communication. It
helps to create a good reputation among other organizations and people. Ways of external
communication:
External communication is made through letters, proposals, telephone call, pamphlets,
annual reports can win back an energy customer. It creates desire for firm’s product services.

7. Means of Communication in Business

Communication in business is the sharing of information between employees of the
company and people outside the organization which is perf ormed for the financial benefit of
the organization. It can also be defined as relaying of information within a business by its
people. I will present below the most popular means of communication that are used in
nowadays business world for easing the pro cess.

7.1 Microsoft Lync

Skype for Business, formerly known as Microsoft Lync Server, is a unified
communications (UC) platform that integrates common channels of business communication
including instant messaging (IM), VoIP (voice over IP), file transfe r, Web conferencing, voice
mail and e -mail.
Notable features include the following:
 Functionality across a variety of communications devices and platforms.
 User -friendly communications control across all devices and architectures.

27
 Integration into all Micr osoft Office applications.
 Drag and drop file sharing.
 Multiparty high -definition (HD) video and content sharing for real -time meeting
experiences and collaboration.
 Simultaneous display of multiple videos.
 The use of open standards, allowing HD videoconfe rencing across a range of devices.
 Presenter controls optimized for meeting format, audience size and content sources.
 Accessibility from within a computer browser to HD video, VoIP, instant messaging,
desktop applications and PowerPoint.
 Calling, instan t messaging and participation in meetings from a Windows, Apple or
Android mobile device.
7.2 Yammer

In this case, it would serve two purposes, you could connect and network with
others as well as get some experience using Yammer. To join the group, chec k out the
information post created by Joel Olsen (Group Creator and Admin) and follow his
instructions for requesting an invitation.
Organizations that want to get started with Yammer have two options – a free model
and a paid subscription. The difference between the two models is mostly around access to
additional administration features. More specific details can be found on the Yammer
pricing page.
Figure 22 Microsoft Lync display

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These two models give organizations the ability to quickly and easily set up a free
community to try out th e features with low risk and high reward. If usage takes off, then
it's possible to upgrade to receive the additional features that can be used to help manage
and ease integration with other systems in the environment.
Two of the main social features in Yammer are the concepts of groups and
conversations. Users are able to join groups and then participate in threaded conversations.
Whenever they access the Yammer site they are able to see a roll up of the conversations
across all groups in their network.
Below is a screenshot of a network page. You can see from the image that there are
several different groups (listed on the left) and that the main feed (center) is a rollup of the
content within all the groups.

Figure 23 Yammer d ashboard

7.3 Sharepoint

We will first approach the software from a technical perspective. There are the
Windows SharePoint Services (WSS), the Microsoft Office SharePoint Server (MOSS)
and Microsoft Search Server.
Windows SharePoint Services function is the basic functionality that Gartner calls
Basic Content Services. It offers the user access to Versioning and Check -in/Checkout
functionality.
Microsoft Office SharePoint Server (MOSS) sits on top of WSS and adds additional
features, both to the underly ing WSS layer as well as additional ways for the end -user to
interact with the repository. The data resides in a SQL Database. Using Webparts it can

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then present this information to the user using a wide range of different modules and for
interaction in di fferent business scenarios.
Finally there is the Microsoft Search Server, an Enterprise Search engine that
provides advanced indexing and searching capabilities that can be integrated into a MOSS
Web -based interface.
Microsoft describes SharePoint as Coll aboration, Portal, Search, Enterprise
Content Management (ECM), Business process management (BPM) and Business
intelligence (BI), again a lot to choose from.
My research has shown that even today many people start their large information
management project s without a clear plan, or without a plan altogether, or steadfastly
ignoring the one that you have. For a product that has so many facets as a SharePoint
installation can potentially have it is choice that needs to be made before you jump in.

Figure 24 Sharepoint dashboard

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7.4 Summary
The above presented software products are part of an integrated platform of the
Microsoft Suite. I will summarize below the purpose and use of the products as well as a
practical example in order to better understand how they behave in practic e.

8. Other Business Communication Software

8.1 Hipchat

HipChat is easily one of the most well -known team chat apps. And for good reason: it is
fast, reasonably priced, has native apps for every platform, and includes almost everything
your team could want .

Figure 25 Microsoft Suite products usage

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HipChat is built around team chat, with group chats front -and-center on the sidebar. You
can make public or private groups, invite guests to join in individual chat rooms, and see who’s
online and strike up a private conversation with them. It also ha s a video -chat function and
real-time screen sharing, so you can talk face -to-face with your colleagues and collaborate on
projects in the same application.

8.2 Slack

Slack is a newer product than Hipchat. One of the Slack’s feature is SlackBot which
helps you setup your account via chat. Chat rooms are organized by hashtag topics
(Channels), there is a private group, individual chats and integrations with a big number of
other applications.
A very impressive feature is Slack’s search. It looks through conversations, attachments
and connected accounts, making it quick to locate anything you want. Users are able to store
multiple versions of files and look through older copies.

Figure 26 Hipchat screenshot
Figure 27 Slack screenshot

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9. Case Study – Acquisition of a CRM in a telecommunication company

Our c ase study is based on the analysis of a top player in the telecommunication field. We are
looking at all possible implications of implementing a Customer Relationship Management
within the firm, together with assessment of current state, identification of quantitative measures
(revenues and costs) and non -financial impact. The company provides the following services:
Analogue TV, Digital TV, Internet and Voice.
The first part of the case study will provide a method of internal audit for the company by
using Mehari method. The second part displays a CRM analysis with all advantages and
disadvantages in place versus not using a software of this kind.

9.1 System Architecture Audit

In order to proceed installing a Customer Relationship Management Tool within the
company, we will have to identify potential threats and vulnerabilities within the information
technology section of the company. In network and system security, threats are always present
but they will always be mitigated through correct use of securi ty procedures and features.
Selection of security procedures and features shall be based not just on general protection
objectives but also on distinct potential vulnerabilities of the in -cause system in light of the risks
to which it is exposed.
One of t he methodologies used for risk assessment within a company is Mehari Method.
Mehari stands for “Method for Harmonized Analysis of Risk”. In practice, Mehari and its
associate bases have been designed for a precise analysis of risk situations often describe d
through scenarios.
In day -to-day life security management is a function or activity that evolves over time.
Corrective actions are different depending on whether the organization has not done anything in
the domain or has made substantial investments in time and effort. In taking the first steps in
security, it is no doubt advisable to take stock of the state of the existing security measures and
policies of the organization and to benchmark these against best practices in order to clarify the
gap to be filled. (Mehari -2010 -Overview, pg. 6)
For our audit below we assume the following structure: question, answer (1 -YES, 2 -NO),
weight (0 -4) and comments. The audit consists of 8 questionnaires with 7 questions each.

Questionnaire 1 – Organization

a) Is there a document that describes the security policy regarding the informational system,
more specific regarding the administration, organization and lead of security policy (roles

33
and responsibilities), but also fundamental principles that mark the administrati on of
information security?

Answer: 1
Weight: 2
Comment: The security policy is brought to each employee’s knowledge through a
document that iterates the principles, roles and responsibilities for security assurance.

b) Is there a procedure to regularly up date the documents regarding IT system security
together with the change of organizational structure?

Answer: 1
Weight: 2
Comment: The security procedure gets updated and its updates are brought to the
knowledge of people involved as often as necessary.

c) Was the security function communicated to internal auditors stating the obligations of
each staff category and the requests and recommendations of the CEO?

Answer: 1
Weight: 4
Comment: Auditors have been informed accordingly.

d) Are the obligations and re sponsibilities of the employees related to the use and protection
of goods and resources that belong to the company detailed in a document available for
the Senior Management Team?

Answer: 1
Weight: 4
Comment: For goods and resources there is not a stan dard procedure for new employees.
It varies from case to case.

e) Is there a document that defines general rules applied to protect access to computer
resources and control of permission privileges?

Answer: 1
Weight: 2
Comment: The management of access ri ghts is under a strict control, assured by both
Admin and HR departments. Information owners have the right to limit access to
confidential information.

f) Is it stipulated in the work contracts or within the Internal Regulation a clear clause
regarding comp ulsory conditions to adhere to security rules?

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Answer: 1
Weight: 4
Comment: Among the confidentiality clause in the working contract there is the
employee’s guide that presents the security principles.

g) Is there a unique ID associated to each user that can have access to information in the
system?

Answer: 1
Weight: 4
Comment: Each employee has a unique user through which he receives access to
information in accordance with the job description.

We will only detail the Mehari coefficient formula for Qu estionnaire 1 below:

𝑀𝑤 =4∗∑(𝑅𝑖∗𝑊𝑖)
∑𝑊𝑖 = 4*(1*2+1*2+1*4+1*4+1*2+1*4+1*4)/(2+2+4+4+2+4+4) = 4*22/22 =4

The risk level regarding organization is 4. Organization and implication on security are
done by Admin and HR department that align to the rules of t he mother company.
Questionnaire 2 – Wide Area Network

a) Has an incident list that can affect the correct usage of wide area network been agreed
together with the proper measures of correction, including safety backups of information?

Answer: 1
Weight: 4
Comment: The IT department has done a proper analysis and the situation and a series of
measures have been put together. Also the safety plan includes procedure in case of
system hacking and safety backups.

b) Is there a mechanism that allows authentication and access control within internal and
external network?

Answer: 1
Weight: 4
Comment: Both access to external and internal network need to be approved by the IT
department.

c) Are all backup copies and configuration files that allow the reproduction of the
production environment of the WAN also saved in a safe location?

35
Answer: 1
Weight: 4
Comment: Configuration files and backup copies are saved in base locations.

d) For every incident of the WAN, has an estimated resolution time been established
together wit h a plan for possible delays?

Answer: 1
Weight: 4
Comment: Possible incidents have been analyzed, however a time of resolution has not
been estimated.

e) Has a history of past malfunctions been kept for the surveillance team, in order for them
to be instruc ted and prepared to provide the solution?

Answer: 1
Weight: 4
Comment: A team for analysis and resolution of recurrent and historical issues has been
created.

f) Is there a 24/7 phone line opened that can handle and record calls regarding the WAN
and that w ill report all incidents? Is there an application that keeps track of this?

Answer: 0
Weight: 2
Comment: There is no 24/7 line to handle calls regarding WAN and there is no
application that handles malfunctions.

g) Has the backup plan ever been used in oper ational activities?

Answer: 1
Weight: 2
Comment: No, because there was no need yet.

Mehari coefficient:

Mw = 4*22/24 = 3.67
The risk level regarding Wide Area Network is 3.67. The IT department has put together a series
of measures in order to prevent the possible malfunction and created a thorough backup plan.

Questionnaire 3 – Local Area Network

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a) Has the LAN been divided in security domains, each one having specific rules regarding
security?

Answer: 1
Weight: 4
Comment: The LAN is partitioned in dom ains for each department where there is a
shared and a private location.

b) Does the architecture of the network equipment adapt to the changes at all levels?

Answer: 1
Weight: 2
Comment: The equipment used is adaptive.

c) Do the reconfiguring and monitoring tools of the network allow corrective actions
compatible with users’ equipment?

Answer: 1
Weight: 4
Comment: The network does not allow reconfiguration in order to adapt to users’
equipment.

d) Has a management policy been established for access rights with in the LAN?

Answer: 1
Weight: 2
Comment: Rights are assigned upon job description.

e) Is there an authentication method that allows access to LAN from external sources?

Answer: 1
Weight: 4
Comment: In order to access the LAN from outside, you need approval from the IT
department.

f) Is there a person available 24/7 to assist in the case of a network incident?

Answer: 1
Weight: 4
Comment: The LAN is under surveillance periodically as there is no need for constant
monitoring.

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g) Has a backup plan that covers all network settings and defines the objects and how often
they need to be saved?

Answer: 1
Weight: 4
Comment: Regarding backup copies, there is a procedure that establishes the frequency
of auto -savings and the parameters that need to be backed up.

Mehari coefficient:

Mw = 4*24/24 = 4
The risk level regarding Wide Area Network is 4. The company owns a Local Area Network
where employees have access. Rights of Read and Write are assigned to each employee
depending on his job description. Each employee has ac cess to a shared and a private section on
the server.

Questionnaire 4 – Network Operations
a) Is there a security policy that targets the staff that performs Network Operations and
covers all aspects regarding the security of information (confidentiality, av ailability,
integrity)?

Answer: 1
Weight: 4
Comment: There is a distinct procedure that targets Network Operations.

b) Does the personnel need to sign contractual clauses to adhere to the security policy (FTE,
temporary or intern)?

Answer: 1
Weight: 4
Comm ent: The personnel only signs clauses with respect to confidentiality and
intellectual property.

c) Is there a training for Network Operations Personnel? Is the training compulsory?

Answer: 1
Weight: 2
Comment: There is no dedicated training. Information is transmitted by qualified staff
during the activity.

d) Is the new equipment acquisition based on its ability to accommodate a necessary volume
taking into account the predicted evolution of demand?

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Answer: 1
Weight: 2
Comment: New equipment is acquired dep ending on needs and has to be approved by
the CEO.

e) Are the network equipment and working stations verified periodically in accordance to
their guidance?

Answer: 1
Weight: 2
Comment: They are verified periodically.

f) Is the system protected against unautho rized software installation and configuration
change?

Answer: 1
Weight: 4
Comment: Yes, only network administrators can perform these changes.

g) Do the rights assigned to members of Network Operation teams allow any fictive change
of operational instrument s and send an alarm to the Manager?

Answer: 1
Weight: 4
Comment: Rights assigned to members allow only usage. Therefore no alarm is sent to
the Manager.

Mehari coefficient:

Mw = 4*22/22 = 4
The risk level regarding Network Operation is 4. The configurat ion of the equipment as well as
periodic checks are only performed by the IT department.

Questionnaire 5 – Architecture System Security

a) Is the process of defining and managing rights assigned to profiles under strict control? Is
strict control required that the list of people who can change the rights assigned to the
profiles be limited and that the implementation of these rights is certain and there is also a
control capable of modifying those rights?

Answer: 1

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Weight: 4
Comment: Rights of profile assi gnment are done by Admin and HR departments and
there is a limited number of people that can perform these changes under a strict
procedure.

b) Is the list of profile and rights, assigned to each user, available at any time?

Answer: 1
Weight: 2
Comment: Adm in department owns this list which is confidential.

c) Is there a process that allows temporary transfer of a user privilege to another user for a
limited period of time?

Answer: 1
Weight: 4
Comment: Transfer of rights can be done, but only with Manager’s a pproval.

d) Do the setting of passwords or unique key access obey a series of safety measures such as
8 character length, incorporation of one letter, one figure and one capital letter, change
once a month etc.?

Answer: 1
Weight: 4
Comment: For password cre ation there is a specific set of rules outlined in the guidance.

e) Is the login process secured? Is the password displayed on the screen when logging in
with a user?

Answer: 1
Weight: 2
Comment: Information is secured. Nothing is displayed until the login information is
introduced correctly.

f) In the case of multiple failed login attempts is there a process that temporary disables that
user?

Answer: 1
Weight: 4
Comment: No, the system does not disables any created user in this situation.

g) Are periodic tests performed in order to ensure that the equipment is able to sustain the
minimum level of performance in case of an error?

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Answer: 1
Weight: 2
Comment: Yes.

Mehari coefficient:

Mw = 4*22/22 = 4
The risk level regarding Architecture System Security is 4. The equipment is handled by Admin
and IT departments. For some equipment, periodic quality tests are performed.

Questionnaire 6 – Application Security
a) Has a management policy for user data access rights been established? Is it built on an
analysis of se curity demands based on business risks?

Answer: 1
Weight: 2
Comment: For application security there is a special procedure in place.

b) Can you adjust the access rights assigned to a given profile upon the context (origin of
the connection, network path, pr otocol) and accessed resource classification?

Answer: 1
Weight: 4
Comment: Access rights are provided upon user categories and they can be modified
upon approval.

c) Do these user rights guarantee non -violation of user account? Passwords will always be a
weak spot.

Answer: 1
Weight: 4
Comment: Passwords are the only safety instrument. No other tools are used. Passwords
are changed regularly according to IT guidance.

d) Is a malfunction in the encryption service detected immediately by the system and
observed by a 24/7 team?

Answer: 0
Weight: 4
Comment: There is no team available 24/7 for immediate reaction.

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e) Have any special transactions that need to be validated through electronic signature been
identified at application level?

Answer: 1
Weight: 4
Comment: Yes, the IT department handles them.

f) In case of system intrusion, have the erasing of the entire system been taken into account
and have any backup procedures been established?

Answer: 1
Weight: 4
Comment: There are backups performed periodically for th e entire system. This data is
also verified by the IT department.

g) Have the procedures and calculation methods that allow creation of log files and
information rebuild been stored, documented and tested?

Answer: 1
Weight: 4
Comment: Yes. Only exception is data left on local system, which is in the owner’s care.

Mehari coefficient:
Mw = 4*22/26 = 3.38
The risk level regarding Application Security is 3.38. Maintenance is performed by the IT
department. Encryption surveillance can be further improved.

Quest ionnaire 7 – Working Environment

a) Is it a delimitation between public area in the building and staff area? Are the meeting
rooms also with separate access?

Answer: 1
Weight: 4
Comment: All areas are protected as meeting rooms are next to the working space .

b) Are visitors accompanied within the building?

Answer: 1
Weight: 2

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Comment: Yes, at all times.

c) Is the access to local equipment accessible to everyone?

Answer: 1
Weight: 2
Comment: Access to every system is done upon user permissions.

d) Are all element s used in the encryption process protected against alteration and changes?

Answer: 1
Weight: 4
Comment: All elements are protected using basic process.

e) Is there a support center for software available?

Answer: 1
Weight: 2
Comment: The IT department hand les both hardware and software issues through
Helpdesk service.

f) Is data on local stations protected against viruses?

Answer: 1
Weight: 4
Comment: Every computer has a licensed antivirus installed. There is also firewall and
antivirus at server level.

g) Are the antivirus products update regularly?

Answer: 1
Weight: 4
Comment: Yes.

Mehari coefficient:
Mw = 4*22/22 = 4
The risk level regarding Working Environment is 4. The access in staff area is done through
access cards. The building is video surveille an d security software is updated regularly.

Questionnaire 8 – Legal
a) Is there a set of rules and legal measures associated to the IT system regarding personal
data protection?

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Answer: 1
Weight: 4
Comment: Regarding personal data there is a strict procedure regarding confidentiality
both for employees and for data provided on the website.

b) Is there a set of rules associated to the IT system regarding the protection of intellectual
property rights?

Answer: 1
Weight: 4
Comment: Within the IT department there i s a section handling the production and
implementation of new modules. Therefore there is special procedure regarding
intellectual property rights.

c) Are there regular verifications regarding installed programs licenses?

Answer: 1
Weight: 2
Comment: All pr ograms installed are licensed.

d) Has the evaluation quality document been revised by financial auditors?

Answer: 1
Weight: 2
Comment: The firm is certified regarding quality assurance with periodic controls in
place.

e) Is the audit performed with an indepen dent company according to the regulations?

Answer: 1
Weight: 2
Comment: Yes, audit is done with a company in Big 4.

f) Is there a collection of all rules and measures applicable legally and compensatory
associated to the IT system regarding encryption usage ?

Answer: 1
Weight: 4
Comment: The system regarding encryption is under a thorough control and in
accordance with Romanian legislation.

g) Are the operational systems that have direct and indirect connection with the
administration system held in accordanc e with the legislation? Are the accounting

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application and application that provides information for the administration system
checked?

Answer: 1
Weight: 4
Comment: The whole accounting process is kept according to Romanian regulations.

Mehari coefficien t:
Mw = 4*22/22 = 4
The risk level regarding Working Environment is 4. The access in staff area is done through
access cards. The building is video surveille and security software is updated regularly.

Conclusions:

The 8 questionnaires above represent an audit of the IT system within a
telecommunication company. The audit has been performed in order to prepare the system for a
Customer Relationship Management Application.
Using the Mehari method, we will calculate below the Mehari coefficient for busin ess
risk:
𝑀𝑤 =4∗∑(𝑅𝑖∗𝑊𝑖)
∑𝑊𝑖= ∑𝑀𝑖
12 = (4+3.67+4+4+4+3.38+4+4)/8 = 3.88.
The risk level for the business is 3.88.
As we can observe, the figure is close to 4 which is the maximum level. In the case of
Security of Inform ation, a higher figure is better. A value close to 4 means that the security
service will remain active and efficient against aggressions. The system could however be
damaged but only in a mix of exceptional circumstances.

Recommendations:

In order to provide support to the company in implementing an integrated information
system, my recommendation would be to expand the internal audit roles on the IT system usage
through specific certifications at operational level. Surveillance on processes and possi ble
malfunctions can be improved.

The second part of my case study will incorporate information about the Customer
Relationship Management itself, including financial and non -financial analysis of its
implementation.

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9.2 CRM Implementation

Product:
The CRM previously mentioned is an integrated tool within the telecommunication
company’s system. Its main role is to keep track of client’s history and contains the following
information: personal details, contact details, history of billing, offers provide d, boxes/modems
installed at the premises, notes regarding the communication with the client, potential conflicts
with call -center employees, contract length etc. As it can be observed, there is a big variety of
information put together in one place with e asy access for parties involved in the process. Below
you will find a series of relevant images with the CRM in different moments of use and its
particularities explained :

The screen above (Figure 28) is called client interaction and shows all details about the
client including: name, address, client code, social security number etc. At the middle, there can
be viewed a series of information like available products for the current client, interaction
history, client history, installed equipment, bills e tc. This platform is usually used by call center
staff in interactions.

Figure 28 CRM Client Interaction

Figure 29 Network damage Figure 30 CRM Client Interaction

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The panel above (Figure 29) provides all information about the customer. As you can see,
this screen provides all identification data that otherwise would have been stored on seve ral
pieces of paper or within various excel type files. All fields are customizable, depending on
several levels of permissions with respect to each employee.
Figure 31 Client information

Figure 32 Shannon Model of Communication Figure 33 Client information

47

In Figure 30, it can be observed how there are listed a series of damages either in
progress or closed. The CRM is connected to the call center telephony system and when the
telephonic central detects a number from a certain area in Bucharest (city assumption) which is
stored in the system, looks in the system for a damage and if there is a damage on the client’s
service route, the robot jumps in the phone line and lets the client now about the issue, without
reaching with the claim to a consultant (the client has this option as well).
Figure 34 Network damage

Figure 35 Client damage case Figure 36 Network damage

48
The panel in Figure 31 shows information about the client c onnection to the
telecommunication provider network. Several clients share the same hub, node and each client
has a unique web card id and /or a unique web router id (depending on the services) assigned.

Figure 40 Bill listings
The call-center consultant has access to all invoices issued to the client including
outstanding or upfront payments. He can check if a bill has been issued and when in order to
successfully solve claims.
Figure 37 Client damage case

Figure 38 Stock information Figure 39 Client damage case

49

Another functionality of the CRM is the evidence of stock for equipment, including a
tracking of monthly acquisitions, installations and disposals. In Figure 33 I tried to display all
functionalities of the CRM with respect to equipment and not to client. Figure 34 shows the
customizable menu for a certai n equipment with details about the vendor, model and milestones
regarding its delivery.

Figure 41 Stock information

Figure 42 Equipment listed Figure 43 Stock information
Figure 44 Equipment listed

Figure 45 Equipment listed

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We can observe that even it does not have the latest display features and customizable
tools, the CRM has enough to contribute positively in certain business aspects .
Success of a new CRM is mainly given by three factors: revenue and gross margin
enhancement, customer satisfaction, operational excellence.
Revenue and gross margin enhancement refers at the potential increased performances
generated by acquisition of new customers, high diversity of personalized products and services,
customer profitability, up -selling and cross -selling, return on customers’ and partners’
investments. Key performance indicators in the process can be represented by average
revenue/custo mer, number of accounts/customer, average growth/footprint, cost of marketing
and sales, forecast accuracy (improve planning process), value of new contracts closed.

Customer satisfaction segment refers to the adaptability to continuously changing
custome r needs and market trends, as well as determine clients’ behavior through unique
requirements on segments of customers and shape the strategy for providing new products and
services. This part also includes the retention operations of the business which ar e very important
when looking from outside. Key performance indicators represent the % of “On -time” deliveries,
time of response to customer service incidents, customer satisfaction index, customer complaints,
trends for new vs. old customers (including re venue generated and offers/retention offers) and
referrals.
Last but not least, the operational excellence refers to processes automation,
administrative improvement, lower OPEX (operational expenditure), inventory decrease and
cycle -time decrease. Key pe rformance indicators are represented by average time to market for
new product development, improved time delivery of tasks, number of complaints, first contact
resolution, cost/customer contact and incident resolution time.
In the telecommunication field, an important benefit indicator would be given by a
reduction in the cost of sales. This refers to allowing sales channels that are self -serviced, tele-
sales, internet based sales, change the components of direct sales or field agent sales. An
additional g oal would be to diminish administrative costs by decreasing the period spent o n sales
administrative responsibilities such as allocation of commission s or estimating and reporting the
retailing time. Others such as improving the closing rate of converting leads into sales, reduce
customer disconnects and improve customer value by providing latest top products and services
indicate the benefit of a CRM.
Key factors:

Cost s of CRM Ownership
A first measure before acquiring a CRM is to figure out how to keep u nder control the
Cost of Ownership ( CO). When executing a CRM technology, the preliminary expenses for
hardware, software, licenses as well as maintenance costs and costs with the training of
employees , all influence the business case . Failure to neglect p art of the cost of the

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implementation would lead to failure in CRM acquisitioning . Nowadays , smart companies are
collaborating with sellers in order to keep CO to a minimum. Th e smaller the CO, the quicker a
company can start having ROI on its investment (low payback period) .

Improvement of Return on Investment (ROI)
ROI from CRM is normally determined by two parts : the first would be a reduction of
costs by increasing effectiveness and the second form is reven ue increase . By dividing the
diverse managemen t levels, the most important aspects that have important impact on the ROI
are outlined below:
1) Tactical level
The method to achieve smaller CO and higher R OI should comprise the following:
• Grow a tactical plan that leverages the base of clients as an i mportant asset and
increases the asset value over a certain amount of time.
• Separate customers based on their value for the company (how much money they
contribute with) and their specific requirements and draw a plan to allocate resources for the
most important clients.
• Offer solid executive management through visibility and strengthening of customer –
focused strategies.
• Pledge to administrative change within the company in order to communicate strategic
measures and objectives and describe procedur es.

2) Technology level
Technology range and structure will assess the level of success of the CRM project and
therefore minimum compulsory conditions in terms of technology would be the following:
• Build a cross -functional crew to design technology require ments in advance , prior to
investing in the asset (an example of this has been described above through Mehari method) .
• Establish a trustful connection with a trustworthy vendor capable of fulfilling business’
requirements and initiative s with a prior ag reement on budget and timing .
• Create an integrated tool that would be able to adapt organizations’ requirements in case
of evolving over time .

3) Methodical level
a) Cost reduction Methodical solutions reduce costs by empowering the company to:

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• Decrease customer support necessities by providing products/services that align better
to their needs.
• Target campaigns properly to compactly defined client categories instead of bulk,
chaotic efforts.
• Decrease the cost of acquiring new client through targeted and segmented retention
campaigns.
• Adapt interactions differently depending on customer value, by allocating more costly
equipment and/or more attractive agreements where the revenue is higher .
• Remove products/ services that do not meet custom er expectations.

b) Revenue Increase Methodical solutions increase incomes by empowering the company
to:
• Foresee which clients are most likely to buy, by identifying client’s needs and
requirements that are subsequently shifting , based on several reason s, such as transitions, major
milestones or purchases , technology change etc.
• Upsell and cross -sell more efficient . It is cheaper and easier to retain existing
subscribers than to sign with new ones; therefore, companies will make higher profits by
grow ing revenue from existing clients and not by count ing on all revenue growth to come from
first connects.
• Improve client satisfaction, fidelity and recommendations through using his insights
generated by the analytical CRM to distinguish the company from its competition with attractive
offers and latest equipment with the highest download/upload speed.

4) Operating level
a) Cost Reductions :
• Customer Call Center: less talking time, smaller issue -handling time, smaller waiting
times
• Sales operations : shorter cycle time, smaller cost of sales
• Marketing operations : less campaigns addressed to cold call customers, less duplicated
information and reduced levels of imprecise subscriber historical tracking
b) Revenue Enhancements :
• Customer Call Center : enhanced upsell and cross -sell rates, bigger percentage of
incident resolution s, improved customer satisfaction and new signing
• Sales operations : higher number of converted leads , more productive and client -targeted
visits depending on footprint

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• Mar keting operations : more advertisement campaigns on different channels , higher
number of generated leads etc.

Costs involved :
The total cost of acquisition for a CRM should respect certain criteria and should be most
importantly financially justified and driven by the Return on Investment.
The project needs to have a thorough financial justification. The Senior Management
Team is deeply involved in reviewing project funding requests as acquiring a CRM represents a
major investment. Risks need to be highli ghted in order not to be caught by surprise of potential
unpredicted events or customer behavior (e.g. old people are more reluctant to technology than
youngsters, people in countryside have less access to technology than people in big cities). CFO
togethe r with the planning team would need to assess the financial impact and provide a best
estimate of potential returns.
In the present analyzed situation the calculation had been done per client and included all
customizable features and database. At the acq uisition moment, the company had approximately
600,000 – customers. The cost has been calculated as follows:

600,000 customers x 0.5 EUR/customer = 300,000 EUR (total acquisition cost).

To be kept in mind is that it included all customizable features. H osting of the database
would be done on internal servers and internal IT department would have full access to modify
and customize the application. Therefore, there were no additional costs. Only additional cost
was shaped under the form of a guarantee and had to be paid annually with an amount of 8,000
EUR and included fixing of any possible malfunction of the application.
Previously to its use in production, half a year of testing has been done, but with no
impact on IT personnel, in terms of expenses. D uring this time, the contractor had several
meetings with the internal IT department and the Senior Management Team in order to
understand the process and requests within the telecommunication organization.

Revenues associated :
Now we will analyze the fi nancial impact within the first 3 years after implementing the
CRM.
A main improvement has been observed in the time of sales and call -center personnel in
handling the communication with the client, including resolution of incidents, stock reporting,
bad payers’ status and commission scheme. Input received from the financial department shows
a decrease in processing time of approximately 1% in the first year and then subsequently 3%

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and 4% for years 2 and 3 respectively. Medium wage was calculated at 500 E UR while the
number of employees benefitting is approximately 500.
This means that for the 1st year we have a saving in operational expenditure (OPEX) of:
Year 1: 1% X 500EUR X 500 employees X 12 = 30,000 EUR
For years 2 and 3 we have:
Year 2: 3 % X 500EUR X 500 employees X 12 = 90,000 EUR
Year 3: 4 % X 500EUR X 500 employees X 12 = 120,000 EUR
Total savings: Y1+Y2+Y3 =240,000 EUR
Therefore, for the first 3 years after implementing the business we have a saving of
approximately 240,000 EUR, coming from sta ff cost.

Another quantifiable improvement has been observed within the Customer Retention
department. This is shown by a decrease in the churn rate and decreases losses. The ARPU
(Average Revenue per Unit)/month is approximately 10 EUR. Total churn/year before CRM
approximately 60,000 customers.
For Year 1 we have a decrease of churn rate of 2%:

Year 1: 2% * 10 EUR/month * 60,000 customers = 12,000 EUR

For Years 2 and 3 we have a decrease of churn rate of 5% and 8% respectively:
Year 2: 5 % * 10 EUR/mont h * 98%* 60,000 customers = 29,4 00 EUR
Year 3: 8 % * 10 EUR/month * 98%*(98%* 60,000 customers ) = 46,099 EUR
Total savings: Y1+Y2+Y3 = 87,499 EUR

From the points outlined above we observe in the first three years, a total saving of
approximately 327,499 EUR outlined as follows:
Year 1: 42,000 EUR
Year 1 + Year 2: 161,400 EUR
Year 1 + Year 2 + Year 3: 327,499 EUR .

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This reveals the fact that our payback period is somewhere towards the end of year 3
which is a very good indicator that CRM implementation is succ essful.

Non-financial benefits:
On top of the financial benefits outlined above, CRM also brings value through its non –
financial benefits. The CRM represents an integrated solution that keeps record of all changes in
the customer’s life within the compan y. Parties that are granted access within the software leave
notes and are able to generate reports upon consumer’s behavior.
The features above help departments in the company to rethink their strategy and tactical
offers and decide what type of products to provide to each type of footprint (e.g.: for the base
clients provide migration to the newest technology, for the M&A (mergers & acquisitions)
clients provide upgrade to medium technology but with lower cost). This helps maximizing
profit by understand ing consumer needs.
Also the CRM represents a very useful tool in internal reporting. Sales, channel and
marketing teams use the information provided by the software in order to see what boxes have
been installed and where, being able to generate weekly a nd monthly trends that would help to
give valuable insights for future planning in terms of equipment needed.
In addition, the Supply Chain Management (SCM) has an evidence of all stocks that
come in the company (acquisitions) and what goes out (installat ion in clients’ houses or
disposals).

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10. Conclusion

IT&Communication sector is a fast developing industry that produces substantial revenue as
an impact to Romania’s GDP. Communication process is highly influenced by the technological
progresses that are meant to make the communication amongst humans easier . Last decade
benefitted from a massive improvement as the significant number of new -entry companies that
joined the market brought a substantial contribution not only on technological aspects but on all
business aspects . Here I refer to human interaction whether inside or outside the company and
different behavioral aspects that contributed positively to the world’s wellbeing. Leaving that
aside, access to information and real-time videos or in stant chatting is something widely met
nowa days, a low cost must have resource that can be accessed from the comfort of your home .
Speaking to my cousin, who is a school kid, he could not even imagine how the world withou t all
these resources would look li ke. How would he communicate with his friends?
However , the improvement in technology and in the communication process can also have bad
influences on people or even on nations. Good news is that nowadays online security is well
developed and the risk for security breaches is smaller than it used to be .
In my opinion, the last 20 years represented the real Industrial Revolution most of the
technological progress coming within this period. I believe further developments are expected to
come and incredible t hings will come on the market and people will absorb them as the society
and the world is in a continuous evolution.
On the other hand, b usiness communication has a vital contribution for a successful business .
One has to establish the weakness es in busine ss communication, mention these flaws and allow
room for listening. Communica tion represents more than just sending out messages; it involves
mainly listening, speaking, sending and receiving messages. Listening simply means holding back
one's judgment and allowin g answers to come from outside.
The Case Study I have done in this paper shows that a company needs an integrated solutions.
Findings show that especially in the telecommunication field, evidence of customers and details
regarding their activity c annot be held in several sources and need to be integrated and brought
altogether for better tracking.
After an extensive research within a company, one of the top players in the telecommunication
field, my findings were that a company needs a tailored CR M that would accommodate its needs.
Financial analysis with inputs gathered from several departments brings to our attention a payback
period of less than 3 years being amortized through different methods. That sounds like a bargain.
Not to mention the end less non -financial arguments in favor of CRM implementation. Leaving
aside the savings and the improved tracking system of customers (details, billing history, contract,
installed equipment, claims etc.) and stocks , the CRM also integrates the call center part of the
company’s activity by noting and registering damages of the network in different parts of the
country. It then links the damaged area with all customers affected. When the unhappy customers

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try to reach call -center consultants, they will be red irected to a robot letting them know about the
damage in the area. This improves the quality of time spent for the consultant and goes back to
having an impact in financials as well. It also helps handling large volumes of requests that, in
chain, improve the response time and therefore the quality of service provided.
Nonetheless, my findings, together with many of the opinions found in academic literature, all
show that technology is an important part of human life/experience and communication is
continu ously breaking new barriers and will continue to develop by trying to make interactions
easier irrespective of the distance. Technological solutions implemented nowadays in companies
smoothen the communication process and have positive impact in organizati onal cash flows. In
the mirror, other mouths say that we are easily being taken over by robots and human interaction
will disappear. Who knows? Only time will tell.

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xii. Microsoft website: https://www.microsoft.com/

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xiii. Guffer, M. E. & Almonte, R. (2009) Essentials of Business Com munication. Cengage
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xv. Hipchat website: https://www.hipchat.com/

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