M204: A Case Study

Improved Essays
The current approach
Model 204 (M204) is the underlying mainframe technology for the Department of Human Services (DHS) core Income Security Integrated System (ISIS), which is a system that Centrelink has used to help with social welfare payments for last 30 years. Since M204 was introduced in 1983, there have been bolted over 350 additional components on top of the M204 database. (Cowan, 2014) M204 was chosen because it can be highly customized to crunch large volume of numbers. However, after 30 years, there as several significant limitations with M204.

As the first disadvantage of M204, which is highly complicated. The system meets current functional requirements, but layers of business rules, processes and policy changes built up over
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For example, nearly half of Centrelink transactions still result in face-to-face or over the phone contact. The current system is built around specific payments and not the individual customer and their circumstance. This means that when a person starts a new claim they are treated by the system as a “new” customer and have to provide some or all of their details again even if they are already known to the department. (Barwick, 2015)

Lastly, the current system cannot send real-time information about the progress of a claim to a customer’s digital account. This leads to customers having to enquire about their claim in person or on the phone. As an example, last year almost a quarter of the calls to the welfare contact center line were customers checking on the progress of their claim, according to the government. (Barwick, 2015) Benefits:
Customer Relationship Management (SAP CRM) offers deep analysis and insight to anticipate consumer needs and create profitable, lasting customer relationship and increase the overall efficiency. In other words, consumer interaction plays an essential role in determining the success of a business. There has several proven ways to show how a fully integrated CRM system would benefit the Department of Human Services
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It will help them manage their customer relationships proactively when they want to generate business or do a follow-up call and it will help DHS handle things well when they receive an inquiry, too. Having important information in a central location can help DHS proceed with the right amount of insight and can help them share information with others who collaborate with them on that account. Insight from historical reports and other data will help DHS anticipate the needs of those customers and put important data at their fingertips so that every phone conversation they have with their customers will be a conversation that they are prepared for. (Dana, 2012)
Reusability
DHS currently uses many different systems for many different departments. Introducing a CRM can integrate many systems into the CRM system. The CRM can be configured to segment customers by any category which means the one system can be used to contact specific customers from DHS. The other advantage of having one system is that the DHS can maintain one system rather than many.
Better Customer

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