Academic journal article Asian Social Science

A Novel Two-Dimension' Customer Knowledge Analysis Model

Academic journal article Asian Social Science

A Novel Two-Dimension' Customer Knowledge Analysis Model

Article excerpt

Abstract

Customer knowledge has increasingly importance in customer-oriented enterprise. Customer knowledge management process with models can help managers to identify the real value chain in business process. The purpose of the paper is to develop a tool for classification and processing of customer knowledge from perspective of knowledge management. By review previous customer knowledge management model, this paper proposes a novel two-dimension' customer knowledge analysis model, which make customer knowledge more understandable and manageable. The two-dimensions are customer's scope and variability. Base on the model, the process strategies for each kind of customer knowledge are given. To verify the effectiveness of this model, a case study was conducted in a hotel and shows the application of the CKM model in customer knowledge management process can lead to increased process performance. This sample analysis model acts as a guide in practice to help enterprise to develop proper methods in customer knowledge system.

Keywords: knowledge management, customer knowledge, customer knowledge management, knowledge co-creation, process management, analysis model, hospitality

1. Introduction

1.1 Challenges for Understanding Customers

In the age of information, the core competence of enterprises is differentiation rather than scale. To achieve differentiation, one good way for enterprises is better known of their customers. Unfortunately, customers are so elusive and unpredictable. Few firms are able to manage the dialogue with their customers effectively and use their knowledge to create more value for customers and improve firm performance significantly(Smith, 2005). Typically, they use Customer Relationship Management (CRM) system to capture, storage and discover the customer related information, such as customer name and favorites. Some companies try to employ measurement tools to identify a customer's value to the organization (Reinartz & Kumar, 2002). With the database technology development, companies use data analysis and data mining to get the whole picture of their customers' demographic and behavioral patterns and re-partition their customers into different categories. But most of companies just only have the information and utilize surface value for improve customer loyalty and satisfaction (Zanjani, Rouzbehani, & Dabbagh, 2008). As a result, they do not know how to use what they know to provide better products or services for their customers and develop differentiation against their competitors. One possible solution is to combine the Knowledge Management (KM) method to CRM system so it is possible to develop a Customer Knowledge Management process. The CKM process with models can help managers to find the real value chain specifically in service-oriented business. This method helps companies to improve knowledge management performance for their business processes, which aims to develop the differentiation of their products and services.

Some e-business enterprises, such as Google, e-Bay and Amazon, using customer knowledge to improve the customers' experience. These companies obtain competition advantages by process customer knowledge. Using knowledge to support customers was found to be an important factor in retaining existing customers (Desouza & Awazu, 2004).

1.2 Research Goals and Structure

The research focuses on how to understand CKM concepts and applied it within the area of service-oriented business. The method makes companies understand CKM in a deeper level, which aims at improving their service quality and making differentiation.

To achieve the research goals, firstly the theory of knowledge management and CK & CKM are reviewed, then the customer co-creation models are also discussed in section 2. Base on that, in section3, a two-dimension analysis model for CKM is proposed, which makes the concept of CKM more clarity and more operational. …

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