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How is BI different from CRM?

William McKnight EXPERT RESPONSE FROM: William McKnight

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QUESTION POSED ON: 12 May 2003
How is BI different from CRM? What I have understood is that customer-related data mining and data warehousing are done by CRM, and the rest of the facets are done by BI. Please clarify.

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CRM is a business strategy that identifies the customer as a very important business asset. It recognizes that customers are unique and need to be treated as uniquely as possible. It recognizes customer satisfaction as important only as a determinant of managing churn and future revenue potential. Information is critical in such a strategy and can only come about through the analysis of data. Smart use and analysis of data makes business intelligence. So, business intelligence is a broad category which includes many uses of data, one of which is in pursuit of a CRM strategy.


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