Customer and supplier intimacy
– Serving customers well leads to customers returning, which raises revenues and profits
– Example:
High-end hotels that use computers to track customer preferences and use to monitor and customize environment (CRM)
– Intimacy with suppliers allows them to provide vital inputs, which lowers costs
– Example:
J.C.Penney’s information system which links sales records to contract
manufacturer (http://www.jcpenney.com)