An e-CRM Application in the Telecommunications Sector: A Case study from Greece
.85427031 August 2015

An e-CRM Application in the Telecommunications Sector: A Case study from Greece

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TITLE: An e-CRM Application in the Telecommunications Sector- A

Case study from Greece


Correspondence: Dr Evangelia K. Blery

Technology Park

NCSR ‘Demokritos’

Patriarxou Grigoriou and Neapoleos



Tel./Fax: ++30 2106005950

Mobile: ++30 6944955733


Μichalis G. Μichalakopoulos

Technical Studies Department

National Printing House

Kapodistriou str., 34



An e-CRM Application in the Telecommunications Sector: A Case

study from Greece


CRM (Customer Relationship Management), is a strategy that can help companies to

build long lasting relationships with their customers and increase profits through the

right management system and the application of customer focused strategies.

Nowadays, the penetration of the Internet has dramatically changed the situation

because the Internet is suitable for the incorporation of CRM applications. Thus,

CRM has changed into electronic-CRM or e-CRM. In this study the implementation

of e-CRM in the Greek Telecommunications Organization is examined and the

benefits and problems as well as the success and failure factors are analyzed and

presented. This study was based on the case study approach, since its fundamental

characteristic is the “focus on a particular setting or event”. The results showed that

the Organization had a lot of benefits from e-CRM implementation, since it helped

significantly the information flow in the Organization as well as the relationships with


Keywords: Electronic Customer Relationship Management, e-CRM, Telecommunications


Evangelia Blery has a PhD in Marketing and an MBA (area of research work in

Marketing) from the University of Surrey in the UK. She is currently working in the

area of marketing of innovative technologies in the Liaison Office of the Attika

Technology Park ‘Leukippos’ in the NCSR ‘Demokritos’. In parallel she has

participated in the EU projects conducting market studies and marketing and

exploitation plans. Her previous experience includes PLANET - ERNST & YOUNG

S.A, as a consultant in the Strategy Management Department, on marketing and

management issues, Institute of Technology of Athens, as a part-time assistant

professor. Her areas of research interest include: Consumer behaviour, customer

loyalty, Customer relationship management.

Mr Michalakopoulos Michael has an MBA (area of research work in Marketing),

from the Athens University of Economics and Business, an Msc in Quality Assurance

from the Hellenic Open University and a degree in Mechanical Engineering from the

National Technical University of Athens. He is currently working in the Studies

Department of the National Printing House of Greece. His previous experience

includes Hellenic Aerospace Industry (HAI) in the Division of Quality Assurance and

in the Institute of Technology of Chalkis, as a part-time assistant professor. His areas

of research interest include: Customer Relationship Management (CRM), Quality



There is a relative lack of literature in the area of e-CRM. Kotorov (2002) defined e-

CRM as the application of information and communication technology to increase the

scale and scope of customer service. Another definition of e-CRM presented by

Kelley et al., (2003) is: e-CRM refers to the marketing activities, tools and

techniques, delivered over the Internet (using technologies such as Web sites and e-

mail, data-capture, ware housing and mining) with a specific aim to locate, build and

improve long-term customer relationships to enhance their individual potential.

The aim of this research is to examine an e-CRM application in a constantly

developing sector such as the Greek Telecommunications sector and analyze the

implementation of e-CRM in the Greek Telecommunications Organization. Thus, it

examines the situation in the Organization before e-CRM implementation and

analyzes the reasons this need emerged, then examines the situation after the

implementation and identifies the benefits, the problems as well as the success and

failure factors.



The Importance of CRM

A literature review was conducted and issues concerning e-CRM, its aims, its

strategic importance, its implementation, as well as the benefits and problems and the

success and failure factors of e-CRM applications, were examined and discussed


According to Peppers et al., (1999), the original focus of CRM was to forge closer

and deeper relationships with customers, ‘being willing and able to change company’s

behaviour toward an individual customer based on what the customer tells and what

else the company knows about the customer’ The premise being that existing

customers are more profitable than new customers; that it is less expensive to sell an

incremental product to an existing customer; customer retention would be maximized

by matching products and levels of service more closely to customer expectations and

attracting new customers is expensive. The central objective of CRM is thus to

maximise the lifetime value of a customer to the organization (Peppard 2000). As the

consulting company Gartner noted, CRM can be defined as a business strategy which

can bring results such as increased revenues and profits through customer satisfaction

(Thompson and Moscardini, 2002).

The CRM market emerged 9-10 years ago. The first systems were designed to support

only one division of the company. During the second stage of development more

integrated solutions were developed (Κritikou and Rachoutis, 2003). Later the

introduction of the Internet changed the situation because it is appropriate for the

integration of CRM solutions, Thus, CRM became electronic-CRM or e-CRM (e-

Epichirin, 2004).

The International market of CRM is showing a continuous growth. Research

conducted by Forrester Research showed that the revenues from CRM will increase in

$73.8 billion in 2007. The increase of CRM industry foreseen is 10-15% each year

(Κoutsiouris, 2003). The Greek CRM market follows the International market

According to an on-line research conducted in 2001, a fast increase is expected for

CRM in Greece and 58% of the Greek top executives mentioned that they believe it is

very important for their companies to adopt CRM. However, the percentage of Greek

companies having even one CRM application was only 21% (CRM2day, 2001).

Implementation of e-CRM

E-CRM can use alternative channels such as e-mails, web sites, wap sites, voice

portals, interactice TV, SMS, MMS, WAP and IVR (Skouloudis, 2003). Attention

should be paid in the implementation of e-CRM. Many companies set-up ad hoc

cross-functional teams for the implementation of e-CRM, however, in this way they

speed-up the implementation of e-CRM, but once the teams are dissolved they can not

ensure immediacy and continuity (Kotorov, 2002). The selection and the efficient

implementation of e-CRM requires a combination of skills (technical, operational,

cultural, organisational, etc.) and may require a team-based approach (Adebanjo,


Benefits from the Implementation

Organisations that adopt e-CRM solutions expect to improve their efficiency and

create value to the organisation. Value can be created in many ways: by reducing the

cost of contacting customers (by making customer details readily available, customer

contact personnel has better opportunities to resolve customer enquiries in less time,

thereby freeing them for other productive work); by transferring some responsibility

to the customer (e.g. product configuration, order tracking, online customer details

collection) administrative and operational costs are reduced; by integrating e-CRM

applications with back-office legacy systems such as production, finance and supply

chains, workflow can improve and consequently the efficiency of the organisation,

thereby delivering cost savings (Adebanjo, 2003). All e-CRM applications have the

potential to deliver some form of value to the organisation. They have the potential to

improve sales by customer profiling, automated campaign management, e-mail

marketing, etc. The challenge for organisations is to identify and quantify the impact

that a prospective solution would deliver and use this information as a factor in the

selection decision (Adebanjo, 2003).In such an analysis, an organisation may use

frameworks such as Porter's five forces (Porter, 2001) to identify the value from

which they would most potentially benefit by adopting any e-CRM application. For

example, in industries where there is strong competition, organisations should

implement an e-CRM solution which improves efficiency or differentiates services. In

industries with high barriers to entry (e.g. technology, aerospace), organisations

should choose e-CRM applications which improve customer experience or enable the

customer to participate in the design of the product (Adebanjo, 2003).

A study conducted by Kelley et al. (2003),found that by embedding an e-CRM

strategy into the business strategy of the Internet companies, it is possible to gain a

better understanding of customer needs and create a strong relationship with them to

achieve customer loyalty and increased profitability.

The US company Virgin Wines achieved a 12% customer conversion rate (the

percentage of customer visits to its website that resulted in sales) compared to a 4%

rate before adopting e-CRM (Stringfellow et al., 2004).

Causes of failure for the system

Many researchers claimed that CRM applications fail to deliver the expected benefits.

There are many causes of failure. Rheault and Sheridan (2002) mentioned the lack of

robust implementation approaches and the selection and configuration of the e-CRM

tools. The research of Peppard (2000), which was conducted in Financial Service

Organisations, has highlighted a rather narrow view of e-CRM and as such, benefits

are limited. For some, it is seen as a technology solution rather than a strategy. Rigby

et al. (2002) argued that the lack of strategy can be a serious cuase of failure. In

addition according to Peppard (2000), in some organizations the e-CRM project is

driven by the requirements of one function rather than as part of an overall enterprise-

wide customer centric strategy. Bradshaw and Brash (2001) further noted that CRM

applications must not only integrate functionally at the front office but also integrate

with back office functions such as manufacturing and billing.


Case study approach

The present study was based on the case study approach, since its fundamental

characteristic is the “focus on a particular setting or event” (Stake, 1995). Thus, since

the objective was to examine the implementation of e-CRM in the Greek

Telecommunications Organization, the case study approach was the most preferable


Sampling method

Purposeful sampling seems to be the most appropriate, as far as the case study

approach is concerned (Stake 1995, Cresswell 1998). Two particular versions of this

type of sampling were used in combination, namely “snowball sampling” and the

“maximum variation sampling” (Cresswell 1998, Minichiello et al, 1990, Patton,

1990). In the first case, a “gatekeeper” is used in order to bring the researcher in

contact with other participants within the organization (Stake 1995), especially when

the researcher has limited knowledge concerning the Organization’s operations

(Mason, 1996). In the second case, the aim is to gather data from a wide range of

informants that are located in different positions within the Organization (Cresswell

1998, Patton, 1990). The manager of the ‘Programs’ department was used as the

‘gatekeeper’, since the researchers had limited familiarity with the Organization’s

procedures and operations. As soon as he agreed to participate in the study, he

suggested seven more people within the Organization that could be interviewed for

the purposes of this research. The ‘maximum variation’ was achieved, since these

people came from different organizational levels. In particular, four in-depth

interviews were conducted with the managers of the Programs, Information

Technologies (IT), Marketing, Customer Service departments, other two interviews

were conducted with the assistant managers of the IT and Marketing departments and

other two with two executives of the customer service department, who are in direct

contact with customers and can have a better insight on the customers’ point of view

concerning the Organization.

Data collection methods

Several authors have suggested that it might be useful to gather data from multiple

sources when conducting qualitative research (Patton, 1990, Mason 1996, Lincoln,

και Guba 1985). This phenomenon is called “triangulation” (Cresswell 1998, Maycut

and Morehouse, 1997) and is also necessary, when undertaking a case study

(Cresswell 1998, Minichiello et al. 1990). In the present study three methods were

employed in order to collect the appropriate data. In particular, eight in-depth

interviews were conducted with the Organization’s medium and senior executives and

secondary and visual data concerning general information about the Organization’s

operations and organizational structure were gathered through press articles, the

Organization’s leaflets, newsletters and monthly reports and the Web site.

As far as the in-depth interviews are concerned, these were based on a questionnaire

which was developed around a list of topics regarding e-CRM (Appendix Ι).

However, despite the fact that it was focused on those issues that were central to the

research questions, “the type of questioning and discussion allowed for greater

flexibility”(Minichiello et al., 1990). Furthermore, the “funneling” process of

questioning was used, where “the initial questions are designed simply to start the

informant thinking about the issue in general terms”. Then, “the interviewer guides

the informants` view toward more specific issues by using questions that narrow the

area, while at the end the interviewer begins to ask specific questions directly about

the issue being examined” (Minichiello et al., 1990). Moreover, during the interviews

some “probing questions” where used in order to elicit information more fully from

the respondents (Stewart and Cash, 1988), while an effort was made to avoid

influencing answers.

The summation of responses was based on the content analysis method (Stake 1995,

Kent 1999). The main objective of this analysis is to understand the meanings of what

each respondent says and try to work out the implications of these meanings. This

goal can be achieved by going beyond what people say and “not accept their

comments at face value” (Patton 1990).



General Information

The Greek Telecommunications Organization, was established in 1949, and since

January 2001 it is operating in a freeTelecommunication market. Starting from 1996

the Greek state gradually reduced its shares and today it owns only 33.7%. The

turnover of the Organization in 2004 arrived at € 5,181 million and the net profit at €

132.6 million. It has 17.000 employees and offers integrated solutions of fixed

telephony and specialized services such as business telecommunications networks.

The Organization is following a flexible and customer centric strategy and focuses on

the following: high quality and competitive prices, packages and products for all

customer categories, complete line of products and innovative services, ability to

comply immediately and effectively to the new competitive environment. The

Organization’s vision is to be the first choice for its customers in all their

communicational needs.

The situation before CRM Implementation

Since the Organization lost the monopoly and is now operating in a free market, it

should become competitive and operate as a private company. However, due to its

bureaucracy the decision of the implementation of an e-CRM system was a difficult

task and a very important step for the Organization’s business process reengineering.

The implementation of the system should be decided after the agreement of the

general management and the departments. The aim was to offer better services to the

customers, improve communication and establish good relationships with them.

Before the implementation of e-CRM, the Organization could not utilize the existing

customer information. There were many different legacy systems, which were not

able to communicate and the result was the delay in transactions and the absence of a

complete view of customers. These systems could offer only specific services (main

stream features) and were not adapted to the individual needs of customers


The Organization’s vision concerning e-CRM and the design of the system

The Organization considers the system as everything that can improve the

relationships with customers. It is not a choice but a need, since it can support the

adaptation to the constantly changing market. According to the Organization’s vision

anything that influences customers is CRM, because the aim is to improve

relationships with customers. A characteristic comment was: ‘we see the organization

though the glasses of CRM’.

The Information Technology department undertook the implementation of e-CRM,

and developed a master plan. There was a very good collaboration with the users that

helped the team to achieve its objectives. The organization is trying to expand the

system and makes efforts to improve it on the basis of the experience and the mistakes

of the past. The management of the Organization fully supports the system. The

contribution of the employees and the existing knowledge in the Organization,

supported the success and the profitability of the system.

Description of e-CRM

The Oracle solution (Oracle E-business Suite) and in particular CRM11i Suite, was

preferred, because it could be integrated in the future with the already installed legacy

systems. It was very important to integrate e-CRM with the existing legacy systems

such as the Genesys Call Center. The Oracle E-Business Suite is used for the ERP,

HCM and SCM systems and for the CRM of the Organization’s business customers.

The Oracle modules that have been used were: Oracle Marketing Online (OMO),

Marketing Encyclopedia, Telesales, Scripting and Order Capture.

Oracle successfully analyzed and designed the appropriate interface since there was

not any other solution available in the market for the collaboration of e-CRM with

Genesys. The interface should be installed on the PCs of the employees, however, the

communication between a desktop application such as Genesys with client software

philosophy and a server based application such as the Oracle solutions, should be


The system is used for the submission of customers’ orders, requests and complaints.

Employees requests are also entered and analysed. In addition, customers’ claims

concerning damages are registered and as it was mentioned the system is integrated

with the Call Center. Another application of the system is Contact Management to

improve the level of communication from and to the customer, by better organizing

the information concerning customers. The system is also used to organize the Points

of Sales network. Furthermore, the system has corporate customers applications and

can support market segmentation.

Problems and challenges during the implementation of the system

The management has mentioned various problems concerning the system because due

to the size of the Organization it is difficult to have a complete picture of the system.

The general situation of the Organization is also a problem (social profile, political

choices, bureaucratic structures, hierarchy, lack of flexibility, reorganization), and

causes a kind of inertia.

Starting to use the system was a difficult task for the Organization, because agreement

should be achieved between all users. The implementation of the system was not easy

and needed teamwork, collaboration, devotion to the target and managers with

knowledge and vision. In addition, many technologically old legacy systems existed

and there were problems in the creation of interfaces.

The implementation of e-CRM started in the beginning of 2001 and lasted about 4

months. It revealed technological challenges and needed changes in mentality, in the

organizational structure as well as in the processes, taking into consideration the

bureaucratic and composite environment of the Organization.

Results after the implementation of the system

After the implementation of the system the Organization was able to serve its

customers better and acquire new customers, because e-CRM significantly helped the

information flow in the Organization.

E-CRM has a perfect ‘reporting’ system, which offers a lot of information, when it is

necessary and in the way users want it. Customer Care Division conducts a significant

number of inbound and outbound telemarketing campaigns. By improving reporting

a better control of telemarketing campaigns was achieved as well as accuracy of

measurements concerning the achievement of certain indices which were set as

targets. In addition, the system gave the necessary support to the Telesales Agents to

improve business reporting and allow closed loop marketing.

Furthermore, the relationships with customers improved e.g. the ‘monthly statement’,

because customers are aware about what they should pay and the relationship with

them is clear.

All users made positive comments about the system, only in the Project Management

department the system is still not performing as it should, thus some problems occur

such as delays in the management and synchronization of human and financial

resources and materials. This is due to the lack of training and the adequate culture of

the employees in the department’.

In general, the system has the ability to resolve the problems and for this reason, it is

considered successful. There is true commitment of all the users of the system and a

lot of customer information is gathered.

However, it is important that the transition to CRM is done by the whole organization

because else it can result in failure. In addition, employees should be well educated

and trained and should have the right mentality. E-CRM needs new people with

diverse education and experience, it is innovative and requires vision and

implementation capabilities.

Nowadays, the Organization must offer complex services to satisfy customers. Thus,

there is a need for additional and more complete information about customers,

because only in this way competition can be defeated. E-CRM is the best solution and

if competition adopted e-CRM first the customer base of the Organization would be in



In today’s very competitive and constantly changing Telecommunications market, the

Greek Telecommunications Organization considers the implementation of e-CRM

very important and is trying to expand the system. Before the implementation of e-

CRM, delays occurred in transactions, the Organization could not utilize the existing

customer information and did not have a complete view of its customers. The

implementation of the system was not easy because of the bureaucratic structures of

the Organization since it needed teamwork and collaboration and many

technologically old legacy systems existed and there were problems in the creation of

interfaces. However, e-CRM significantly helped the information flow in the

Organization as well as the relationships with customers. All users made positive

comments concerning the system and it is considered successful.

Though, according to the findings, for the successful implementation of the system,

vision and commitment from the management are needed. Strategic priority should be

given to e-CRM, which should embrace all the Organization and the aims of its

implementation should be completely defined. This finding is in accordance with

Adebanjo (2003) and Rigby et al. (2002), as mentioned in the literature review.

In addition, the implementation process should be clearly defined, the project team

should be carefully selected and a time-table should be decided. It is important to use

the right personnel to support the project as it was also mentioned by (Kotorov, 2002).

The users should have the appropriate technological background to understand the

operation of the system. Furthermore, it is important to offer the right training to all

users. All the employees should use the system regularly and enter all the information

available. This is in accordance with Peppard (2000), who mentioned that e-CRM

system can succeed only if it is recognized as a need by the whole company.

This study achieved its main research objectives to examine e-CRM implementation

in the Greek Telecommunications Organization and analyze the situation in the

Organization before e-CRM implementation, identify the reasons this need emerged,

examine the situation after the implementation and present the benefits, the problems

as well as the success and failure factors of the system.

These findings can become a useful marketing tool for the managers of the

Telecommunications Organizations in Greece and in other countries. Academically,

further research based on these findings can add to the present pool of knowledge by

further examining e-CRM issues in other Telecommunications Organizations.


The sample used was designed using in combination “snowball sampling” and the

“maximum variation sampling”, thus employees from different departments within

the Organizations were interviewed and data from a wide range of informants in

different positions within the Organization were gathered. However the sample size

might have been larger because the organization has a great number of employees. Though,

many difficulties were encountered to approach the directors of the different departments,

because they had a heavy time schedule and they had difficulties to offer some of their time

for the interview and the interviews took a long time to be arranged and they were postponed

in many cases. In the process of conducting this study no other important or

unexpected difficulties were encountered.


This study has contributed to the marketing literature by shedding some light on e-

CRM issues, which in the literature has not been widely examined. In addition, it has

contributed to the Telecommunications sector literature, where up to now little

investigation has taken place on issues concerning e-CRM in Telecommunications



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1. Profile of the Organization (history, activities, products/services, administrative

issues and organizational structure)

2. Financial results, present situation

3. Strategic planning, corporate culture on the basis of the degree of adoption of the


4. Time schedule and project team

5. Description of the project on the basis of: a. organizational issues b. factors

influencing change c. management d. technological resources and limitations e.

other business issues.

6. Culture – different aspects in the Organization that have contributed in the design,

the construction and the management of the organizational structure and/or the

business intervention.

7. Challenges and problems of the Organization during the organizational,

technological and/or business intervention.

8. Methods of solving the problems related to the system’s implementation

9. What is the vision of the Organization concerning the system?

10. How is information flow done through the Organization?

11. What operations does the system cover (Μarketing, Sales, Customer Service,

Loyalty System, Relationship Management)?

12. How did the system influence the operations of the Organization (Departments,


13. Expected business and technological benefits

14. Which operations improved most?

15. Issues that need attention during the implementation

16. Has the system an interface with the other technological tools of the Organization

(ERP, supply chain, business intelligence, knowledge management)?

17. Is the customer base of the Organization in danger if competition adopts the

system first?


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