ABSTRACT
This proposal
concerns examining the possible level of utilizing the
digital century to run Riba/interest free profitable
businesses globally centred on customer value and
satisfaction and societal
responsibility
by applying modern CRM-SCM Systems as well as free
trade friendly national and international regulations
and treaties. This issue is necessitated by the
importance of customer and society orientation in
world trade and business in the wake of Bankruptcies
of Giants in consumer vigilance and a digital
century. Global Riba-Free trade and finance on IT's
Societal oriented CRM & SCM Systems would pull the
world from the current financial crisis Allah Willing.
Keywords
CRM: An
Instrument of Great Value
SCM: An
Applicable Social Power
Riba/Interest:
An Overlooked World enemy
Riba/Interest
Free Economy and Finance worldwide
Current World
Financial Crisis
Conference on
Integrating/ merging IT (CRM, SCM) and Riba-Free
Economy and Finance in one
1.0
INTRODUCTION
The objective of
this paper is to propose a separate IT conference on
the possibility of merging the above three Keywords:
CRM (Customer Relationship Management), SCM
(Societal/Social Care Management and Riba/Interest
Free Global Economy and Finance in order to save the
world from
the kind of
crisis and chaos it is now in. The point is to have an
objective of establishing a centralised
international
management system based on the three systems stated
above ( and IT in general) with its own international
organization, for instance, a union of the world Bank,
the International Monetary Fund, the Islamic
Development Bank, World Trade Organization, etc. The
paper which is to be presented to the International
Conference on IT 09 will present an updated accounts
on CRM, SCM and Riba/Interest Free Economy and Finance
and the current level of Islamic Finance Industry in
the world today. In this regard, the paper will also
touch the current international financial crisis and
shall try to submit documented recommendations in the
conclusion, Allah Willing.
1.1
Methodology
Since both the
secondary data and the primary data that are being
used in this paper are available literature on the
internet and e-libraries like OUM digital Library only
qualitative methodology and descriptive/causal
instruments are being used. As this is an applied
preliminary study, descriptive and causal techniques
are combined to achieve all desired objectives of the
study.
1.2 Brief
Descriptions of the Keywords
1.2.1 CRM
CRM is an effort
by enterprises aimed at attempting to retain
profitable customers while focusing on building
long-term and sustainable relationships with the
customer. The objective of this is to add for both the
company and the customer. However there are many
definitions of CRM due to its being new and still
under definition (Turban et al., 2008) [1]
Customer Relationship Management is a
central and determining matter and in summary one of
the biggest challenges companies are currently facing
is not only to deliver more sophisticated sales and
service capability, but they also have to deliver and
manage these capabilities more quickly and
cost-effectively. Earlier approaches of managing CRM
are out-dated now. The prediction is that companies
would have to avoid losing revenues and share with
each passing year by settling for making incremental
improvements to current capabilities (Freeland,)
[2]
In Microsoft Dynamics CRM 4.0 Step by
Step CRM software is presented with what CRM has come
through and its importance now. It is stated that
Every successful organization relies on its customer
base to sell products or services. Businesses that
want to track and manage all of the various
interactions with their customers shall have to deploy
frequently a Customer Relationship Management (CRM)
software system such as, infact has to be,
CRM system
which enables organizations to a Achieve a 360-degree
view of the customer relationship. They can automate
common business processes to reduce manual tasks and
common workflows and can deliver a more consistent
customer experience by streamlining customer
interactions. CRM can enable executives to measure and
report on key metrics related to their business so
they can make better business and strategy decisions,
(Synder et al., 2009) [3]
Now having
defined CRM briefly let us see the amazing development
made by the science, ISD and IT, which CRM is a part
of, especially the massive software sections of ISD
and IT. SE IT Lab reports on the following Conference
on ISD as part of IT,
from August
25-27, 2008 The 17th International Conference on
Information Systems Development (ISD2008) was hosted
by the Department of Computer Science, University of
Cyprus at Paphos, Cypru and the theme of the
conference was"Towards a Service-Provision Society".
It included
tracks on Information Systems Engineering &
Management, Business Systems Analysis & Design,
Intelligent Information Systems, Agile and High-Speed
Systems Development Methods, Enterprise Systems
Development & Adoption, Public Information Systems
Development, Information Systems Development
Education, Information Systems Development in
Developing Nations, Legal and Administrative Aspects
of Information Systems Development, Information
Systems Research Methodologies, Service-Oriented
Analysis and Design of Information Systems, IT Service
Management, Philosophical and Theoretical Issues in
Information Systems Development, Model-driven
Engineering in Information Systems Development and
Human Computer Interaction (HCI) in Information
Systems Development. [4]
The hardware
side development is equally amazing and almost
needless to attempt to present it in detail. This is
what made CRM so developed to an extent that it should
be combined with other equally highly developed
sciences and concepts such as SCM/SRM (Social Care
Management/ Social Responsibility Management and Riba/Interest
Free Global Economy and Finance to safe the world from
the danger of war from the Almighty.
One can see how
for example only CRM has developed and has become
nearly a separate, independent major subject by having
a look at only a few of the vast topics which IT
TOOLBOX Knowledge Base specializes in, indicating
that so many sources defines and provide services in
many different branch es.
Analytical CRM is defined
as an Analytical
CRM which applies Business Intelligence and reporting
methodologies such as data mining and OLAP (Online
Analytical Processing) to CRM applications.
Business
Intelligence, financial Services and Major
Applications of Business Intelligence Software in the
Financial and Service Industry have made tremendous
progress and due to the vast range of customers and
customer needs, changing regulations and growing fraud
threats, financial services, companies need
information management solutions that will allow them
to make smart decisions.
Data Service
has made a breakthrough technology for the information
management market. Data Services unifies
market-leading data quality and integration into one
platform - enabling organizations to move, transform
and improve any type of data anywhere, at any
frequency. It provides one development, runtime,
management, security, and data connectivity
environment
Reports, Plans
and Delivering Metrics for Marketing
have become
possible because of the critical role IT can play by
providing Marketing with timely information in areas
such as competitive risk, customer demand and profit
potential. Organizations have to learn, and in fact
did, how IT can help deliver critical business
information for Marketing resulting in less guesswork,
greater customer value and greater return on
investment. [5]
1.2.2 SCM:
Social/Societal Care Management
SCM is equally central and it must be
attached to CRM since one is at individual level while
the other is at the community level. Caring for the
buyer without caring for the community will not be
logical since the small group customers of the the
company would not make a surviving market for the
company. That is way companies should have one
comprehensive strategy for CRM-SCM and also that this
has to be attached to "Social
responsibility"
Which is defined
as an ethical or ideological theory that an entity
whether is is an governmental, organizaitonal or
individual has a respnsibility to society but this
responsibility can be negative. This responsibility
rests on the shoulders of all entities whether,
business, government practices, activist groups and
local communities on equal degree.
1.2.3 Riba/Interest:
An OverlookedWorld Enemy
Riba is best
defined by the Holly Qur'an and the Sunnah of Prophet
Mohamed (PBUH)
What is Islamic
finance?
Islamic Finance
is an interest-free economic and financial System
which places equal emphasis on the ethical, moral,
social, and religious dimensions, to enhance equality
and fairness for the good of society as a whole. The
system can be fully appreciated only in the context of
Islam's teachings on the work, ethic, wealth
distribution, social and economic justice, and the
role of the state.
So, What is
Interest/Riba?
Sheikh Ahmed
Sahid, one of the Ulama in Bosaso, gives the following
answer to this question:
"Definition of
Interest: The literal meaning of interest or Al-RIBA
as it is used in the Arabic language means to excess
or increase. In the Islamic terminology interest
refers to several meanings, these include: -
![Blocked image]()
Effortless profit or that profit which comes free from
compensation
![Blocked image]()
Extra
earning obtained that is free of exchange.
Definition: "Riba`
is a loan with the condition that the borrower will
return to the lender more than and better than the
quantity borrowed."
Prohibition of Riba.
The definition
of interest has already been mentioned as well as that
it is prohibited. If we explore the Qur'an we will
come across at least four places where Allah has
mentioned interest.
Qur'anic
Verses
May be the first
revelation talking about Riba was the verse in Surah
Al-room (39). Surah al room is 30srd surah
in the chronological order of the Quraan revelation
and its a Mecan surah. This shows that Quraan started
talking about the Riba even when there was no
legislation or rules existing in that stage of Mecca
except some forms of worshiping and salat.
However, this
verse indicates that Riba is not blessed deed, and
comparing to Zakat Allah increases and multiplies the
charity.
وماءآتينم من ربا ليربو في اموال
الناس فلا يربو عندالله، وما ءآتيتم من زكاة تريدون وجه
الله فأولئك هم المضعفون(39)
"That which you
give in usury for increase through the property of
people will have no increase with Allah: but that
which you give for charity seeking the countenance of
Allah, it is these who will get a recompense
multiplied."
The first one is
in Surah Al-baqarah verse no.275
الله البيع وحرم الربا فمن جاءه موعظة من
ربه فانتهى فله ما سلف وأمره إلى الله ومن عاد فأولئك
أصحاب النار هم فيها خالدون(275)"
"Those who
devour usury will not stand except as stands one whom
the Satan by his touch has driven to madness. That is
because they say, "trade is like usury", but Allah has
permitted trade and has forbidden usury",
1.
In the next verse
276 in the same place He says,
"يمحق
الله الربا ويربي الصدقات والله لا يحب كل كفار
أثيم(276)"
"Allah will
deprive usury of all blessing, and will give increase
for deeds of charity, for he does not love any
ungrateful sinner."
2.
Two verses later in
verse 278 He says,
"يا
أيها الذين أمنوا اتقوا الله وذروا ما بقي من الربا إن
كنتم مؤمنين(278)"
"فإن
لم تفعلوا فأذنوا بحرب من الله ورسوله وأن تبتم فلكم
رءوس أموالكم لا تظلمون ولا تُظلمون(279)"
"Oh you who
believe! Fear Allah and give up what remains of your
demand for usury if you are indeed believers."
Narrations of
the Prophet PBOH
عن جابر قال:
>>لعن
رسول الله صلى الله عليه وسلم آكل الربا، ونوكله،
وكاتبه، وشاهديه، وقال هم سواء<<
صحيح مسلم
1)
Jabir bin Abdillah Radiyallahu anhu
has reported that the Messenger of Allah
sallallahu alaihe wasallm cursed the devourer of
usury, its payer, its scribe and its two witnesses. He
also said that they were equal (in sin).
Declaration
of War
The Holy Qur'aan
states:
"يا
أيها الذين أمنوا اتقوا الله وذروا ما بقي من الربا إن
كنتم مؤمنين(278)"
"فإن
لم تفعلوا فأذنوا بحرب من الله ورسوله وأن تبتم فلكم
رءوس أموالكم لا تظلمون ولا تُظلمون"(279)
"O' you who
believe, fear Allah and give up what remains of your
demand for usury, if you are indeed believers. If you
do not abstain take notice of war from Allah and His
Rasul."
What greater
threat could there be than the declaration of war by
Allah and his Rasul? Allah does not fight with
armaments, the wrath of Allah descends in ways that
are impossible to oppose or avert. Murder, fear,
crime, bankruptcy, are but some of the missiles that
suddenly shatter our lives when Allah declares war
against us. The prophet (sallallahu alayhi wa sallam)
said: "When usury and fornication appear in a
community, the people of that community render
themselves deserving of the punishment of Allah."
In another Hadeeth, the prophet (sallallahu alayhi wa
sallam) has said: "Allah has cursed the one who
takes interest, the one who pays it, the one who
writes the contract and the one who witnesses the
contract".
Islamic
Solutions
Islam has a
concrete solution for Interest and Usury, which if
someone would obey and practice would be rather
enough.
In this context
Mohammad Nejatullah Siddiqi says: -
Islamic
economics research has shown that the economic system
can function without interest. A system using
profit-sharing modes where possible and trade based
modes, e.g. murabaha, leasing, etc.
where necessary, will be more equitable, more
efficient and more stable than the current interest
based system.
In the case of
consumption loans, if it is for food, drinks,
clothing, etc. necessary for survival, charging
interest violates the nature of social life which
requires cooperation, care and help of the needy by
the well to do. If the loan is for consumer durables
aiming at increase in efficiency, murabaha
provides a safer, better way of financing than
interest based lending.
And instead of
using interest based business, Islam has its own
economic principles which all culminate in the welfare
of both the entrepreneur and the wealthy as same.
No effortless
profit reaping and no unfair loss bearing".
1.2.4 Riba/Interest
Free Economy and Finance worldwide
The definition
of this can best be the definition of Islamic Finance
and it is in short the opening of the definition of
Riba above:
Islamic Finance
is an interest-free economic and financial System
which places equal emphasis on the ethical, moral,
social, and religious dimensions, to enhance equality
and fairness for the good of society as a whole. The
system can be fully appreciated only in the context of
Islam's teachings on the work, ethic, wealth
distribution, social and economic justice, and the
role of the state.
As for Islamic
Finance Industry update, it has no doubt become a
global industry so much that for example London is
emerging as the key centre for Islamic finance outside
of the Middle East as financial institutions clamber
to become part of a growing market while every other
major city in the world has so many major banks that
are either Islamic banks or have several products
and/or windows. Published updates from November
estimate that Islamic banking alone manages funds up
to $200 billion. And it is predicted that it will hit
the trillion dollars by the year 2010 as it increases
by up to 15 percent a year.
There is no
doubt as well, according to Islamic academics and
clerics, that the fast growing Sharia financial
system may receive a further boost as an alternative
to capitalism amid the credit crunch and banking
crisis.
1.2.5
Current World Economic and Financial
Crisis
Much effort is
not needed to elaborate the magnitude of this crisis
for two reasons. First, it has been on top of the news
hour in number of months. Secondly, every one's pocket
has felt it severely. So many stock markets have been
closed for some time and up to now each online edition
of the media is reporting both falling rates and shut
down markets, banks, giant companies of many types,
uncontrollable commodity prices, collapsed communities
and summits of Heads of States the latest of which
being the Apec and the one scheduled in Doha, Qatar –
WTO – which will also be used for the crisis. After
all these summits so far there is no solution to the
problem. This has become more dangerous for the world
than terrorism! Why? Because the threat of terrorism
is coming from few small human groups, or if too big,
a couple of countries according to specialists, while
the threat of economic and financial crisis and thus
destruction of life on Earth comes from the Almighty
Allah (or do you call God ) because of the prohibited
Riba/Interest. Perhaps, terrorism is simply one of
the punishments of Allah because of the Riba and we
thus ought to put combating Riba first then terrorism.
Moslems believe this for sure and some clerics have
voiced it, that is, all global crisis and lack of
security are due to Riba/Interest. It is therefore
time we should consider a common solution for the
globalised village and study the proposal given just
below.
1.2.6
Conference on Integrating/Merging IT
(especially
CRM & SCM) and Riba/Interest Free Economy and Finance
for the safety of Planet Earth
As the term
"Digital Century" has been used above, one may argue
that the current standard of IT has globalized the
world or, in other words, made the world a small
village. Though there can be many proves for such
argument, the latest exhibition of this is the current
global economic and financial crisis chaos. The term
" All Economies
or markets" has become nearly none existent and it
turned out that the right term is "World's Unitary
Economy or Market" since each spot or so called market
feels each touch with the other markets or spots. Why?
What makes so connected at so high speeds? The answer
is easy. It is IT and the natural fact that matters
are
inter-connected worldwide. Therefore, there can be a
feeling that IT has become a World Power that should
be used to the advantage of Man in cooperation and on
equal footing and contribution. Another major point
is that, since now all have seen the high degree of
international inter-dependence, the safest economic
and financial systems have to be taken unanimously in
the common interest of Man regardless of who puts it
forward or practiced more than others. By this is
meant, Islamic finance, which has been developing at
as high speeds as IT, is believed by more than one
point two (1.2) billion people that it is the solution
to the common problems since Allah vowed with WAR on
Riba and who practices. And when the WAR OF ALLAH
Comes, it will not harm only those who practiced (paid
and took) but the entire globalised village will
suffer as what is happening now (see again 1.2.4 and
1.2.5 above).
2.0 STYLE OF
MANUSCRIPT
This manuscript
is on A4 size (210 mm X 297 mm in single spacing using
font size of 10 points. Margins are 25
Mm top and
bottom and 15 mm from left and right leaving a gutter
of 5 mm.
3. CONCLUSION
Considering the
high level development of CRM, SCM,
SRM, IT in
general, the undividedness of the globalised village
and the undefendable declaration of WAR by the
Almighty Allaah due to Riba/Interest it is strongly
recommended that this current International Conference
on IT 09 debates on and further puts forward that
there should be a separate International conference on
Integrating and/or combining the above stated
sections of IT and the Islamic teachings of Riba Free
economy and finance for the safety and prosperity of
planet Earth.
As stated above,
the world has to great an international body for
globalised, IT-based (CRM+Society Focused) and Riba/Interest
Free Economic and Financial Management. This is not
only needed for the future but it is needed urgently
to solve the current Riba created economic and
financial global disaster.
The consumer
vigilance stated in the Keywords above makes all
sources to rethink and expand their focus areas and/or
priorities. This is well documented point as a CRM
Group UK, London, Roderick J. Brodie, University of
Aukland expresses in the Abstract of a Paper published
in the Journal of Service Research [6].
The title of the Paper is "Transforming
a Public Service Organization from inside Out to
Outside in ,The Case of
Auckland City, New Zealand" and explain that as
competition
intensified and customers become more vigilant and
demanding, service organizations are
recognizing that they have to become more
market oriented which means that they should be
broader society centered. They present and elegant
term which organizations need to apply be guided by:
"outside-in" as opposed to "insideout" processes
despite the fact that the pace of development is a
problem, that is, the speed at which the necessary
frameworks are developing by DAY.
A Paper titled "
Issues and Perspectives n Customer relationship
Management" by Ramaseshah, B. (et al.) [6]
at Curtin University of Technology and other
universities [6] presents and a term which is very
relevant and supporting for the proposal by the
current Paper. The term is "Global CRM (GCRM)" which
defined as the strategic application of
the processes and practices of CRM by companies that
operate in a number of countries or by firms that
serve international customers while naturally
maximizing customer valure and statisfactions. The
authors in fact advocate for benefiting
internationally from IT/CRM by presenting an overview
of the GCRM environment indicating the
challenges in formulation and
implementation of CRM across national boundaries as a
source of sustained advantage.
It is these
kind of thoughts that have to be expanded and
globalized in the interest of Earth, uniting the
public and private sectors, seeing the BUYER and the
SOCIETY as ONE and thus creating centralized, Riba
Free global ECONOMY AND FINANCE being
facilitated by IT by the APPROVAL OF THE ALMIGHT
ALLAAH for avoiding RIBA/INTEREST, something which is
possible by uniting the World Bank, the International
monetary Fund, the Islamic Development Bank, the
World Trade Organization etc. and supported by strong
and well experienced economic and financial world wide
institutions such as central banks epecially the
leading ones in Islamic Finance such as the Malaysian,
Indonisian and Middle Eastern central banks.
5. REFERENCES
[1] Turban et
al. (2008). Information Technology Management, John
Wiley & Sons
[2] Frleeland, John G. (2003). The
Ultimate CRM Handbook, McGraw Hill
[3] Microsoft
Dyanmics CRM 4.0 Step by Step (2009),
Microsoft
[4] ISD (2008)
WEBSITE
5.
http://knowledgemanagement.ittoolbox.com/
[6] Journal of
Service Research, Vol. 4, No. 1, 50-59 (2001) DOI:
10.1177/109467050141005
