Harvard Case - Calgary Drop-In Centre: Donor Information System
"Calgary Drop-In Centre: Donor Information System" Harvard business case study is written by Derrick Neufeld, Deb Elkink, Michelle Woo, Dennis Dupuis, Dan Hausermann. It deals with the challenges in the field of Information Technology. The case study is 9 page(s) long and it was first published on : Feb 1, 2017
At Fern Fort University, we recommend that the Calgary Drop-In Centre (CDIC) embark on a comprehensive digital transformation strategy to modernize its donor information system and enhance its fundraising capabilities. This strategy should focus on leveraging technology and analytics to improve donor engagement, streamline operations, and ultimately increase the effectiveness of its fundraising efforts.
2. Background
The Calgary Drop-In Centre is a non-profit organization dedicated to providing essential services to vulnerable individuals and families in Calgary. The CDIC relies heavily on donations to fund its operations. However, its current donor information system is outdated and inefficient, hindering its ability to effectively manage donor relationships and track donations. This case study focuses on the CDIC's need to upgrade its donor information system to improve its fundraising efforts. The main protagonists are the CDIC's leadership team, including the Executive Director and the Director of Development, who are responsible for overseeing the organization's fundraising operations.3. Analysis of the Case Study
The CDIC faces several challenges related to its current donor information system:
- Outdated Technology: The existing system is outdated and lacks the functionality to support modern fundraising strategies. This limits the CDIC's ability to analyze donor data, personalize communications, and track the impact of its fundraising initiatives.
- Inefficient Operations: The current system is manual and prone to errors, leading to inefficiencies in data management, donor communication, and reporting.
- Limited Insights: The CDIC lacks the ability to effectively analyze donor data to identify trends, understand donor preferences, and tailor fundraising campaigns.
- Missed Opportunities: The outdated system prevents the CDIC from leveraging emerging technologies such as AI and machine learning to enhance donor engagement and optimize fundraising strategies.
To address these challenges, the CDIC needs to implement a comprehensive digital transformation strategy that includes the following key elements:
- Digital Transformation: A digital transformation strategy will enable the CDIC to leverage technology to improve its operations, enhance donor engagement, and increase fundraising effectiveness. This will involve adopting new technologies, modernizing its IT infrastructure, and implementing a cloud-based donor information system.
- Data Analytics: The CDIC needs to develop a robust data analytics capability to gain insights from donor data. This will involve implementing a data warehouse, utilizing business intelligence tools, and developing data-driven decision-making processes.
- Customer Relationship Management (CRM): A CRM system will enable the CDIC to manage donor relationships effectively. This will involve tracking donor interactions, personalizing communications, and segmenting donors based on their preferences and giving history.
- Marketing Automation: Marketing automation tools will help the CDIC automate repetitive tasks, personalize communications, and track the effectiveness of its fundraising campaigns.
- Mobile Technology: The CDIC should leverage mobile technology to enhance donor engagement. This includes developing a mobile-friendly website, implementing mobile payment options, and utilizing mobile apps for communication and fundraising.
4. Recommendations
The CDIC should implement the following recommendations to modernize its donor information system and enhance its fundraising capabilities:
- Develop a Comprehensive Digital Transformation Strategy: The CDIC should develop a comprehensive digital transformation strategy that outlines its vision, goals, and roadmap for leveraging technology to improve its fundraising efforts. This strategy should be aligned with the organization's overall mission and strategic objectives.
- Invest in a Cloud-Based Donor Information System: The CDIC should invest in a cloud-based donor information system that offers advanced functionality, scalability, and security. This system should be able to manage donor data, track donations, personalize communications, and provide insights into donor behavior.
- Implement Data Analytics Capabilities: The CDIC should implement data analytics capabilities to gain insights from donor data. This will involve developing a data warehouse, utilizing business intelligence tools, and building data-driven decision-making processes.
- Adopt a CRM System: The CDIC should adopt a CRM system to manage donor relationships effectively. This system should enable the CDIC to track donor interactions, personalize communications, and segment donors based on their preferences and giving history.
- Leverage Marketing Automation Tools: The CDIC should leverage marketing automation tools to automate repetitive tasks, personalize communications, and track the effectiveness of its fundraising campaigns.
- Embrace Mobile Technology: The CDIC should embrace mobile technology to enhance donor engagement. This includes developing a mobile-friendly website, implementing mobile payment options, and utilizing mobile apps for communication and fundraising.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with the CDIC's mission to provide essential services to vulnerable individuals and families in Calgary. By improving its fundraising capabilities, the CDIC can ensure that it has the resources to continue providing vital services to the community.
- External Customers and Internal Clients: The recommendations are designed to improve the experience of both external customers (donors) and internal clients (staff). By leveraging technology to streamline operations, the CDIC can improve efficiency and free up staff to focus on providing high-quality services.
- Competitors: The recommendations are based on best practices in the non-profit sector and consider the competitive landscape. By adopting modern technologies, the CDIC can stay ahead of the curve and compete effectively for donor dollars.
- Attractiveness ' Quantitative Measures: The recommendations are expected to have a positive impact on the CDIC's financial performance. By improving donor engagement and increasing fundraising effectiveness, the CDIC can increase its revenue and ensure its long-term sustainability.
6. Conclusion
The Calgary Drop-In Centre has a critical opportunity to enhance its fundraising capabilities by embracing digital transformation. By implementing a comprehensive strategy that leverages technology and analytics, the CDIC can improve donor engagement, streamline operations, and ultimately increase its effectiveness in providing essential services to the community.
7. Discussion
Other alternatives not selected include:
- Outsourcing IT Services: The CDIC could consider outsourcing its IT services to a third-party provider. This would reduce the need for internal IT expertise, but it could also lead to a loss of control over data and technology.
- Developing a Custom-Built System: The CDIC could develop a custom-built donor information system. This would provide greater flexibility and control, but it would also be more expensive and time-consuming.
Risks and Key Assumptions:
- Cost: Implementing a digital transformation strategy requires significant investment in technology, training, and staff.
- Data Security: The CDIC must ensure that its donor data is secure and protected from cyber threats.
- Change Management: The CDIC needs to effectively manage the change process to ensure that staff are comfortable with new technologies and processes.
8. Next Steps
The CDIC should implement the following steps to begin its digital transformation journey:
- Form a Digital Transformation Task Force: The CDIC should form a task force comprised of representatives from key departments to oversee the implementation of the digital transformation strategy.
- Conduct a Needs Assessment: The CDIC should conduct a needs assessment to identify specific requirements for its donor information system and related technologies.
- Develop a Detailed Implementation Plan: The CDIC should develop a detailed implementation plan that outlines timelines, resources, and key milestones.
- Pilot Test New Technologies: The CDIC should pilot test new technologies before implementing them on a large scale. This will help to ensure that the technologies meet the organization's needs and are well-integrated with existing systems.
- Provide Training and Support: The CDIC should provide training and support to staff to ensure that they are comfortable using new technologies and processes.
By taking these steps, the CDIC can successfully implement its digital transformation strategy and achieve its goal of enhancing its fundraising capabilities.
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Case Description
In the spring of 2016, the director of finance and administration for the Calgary Drop-In & Rehab Centre was frustrated with the organization's legacy donor and volunteer information system. The technology platform was outdated, data integrity was out of control, costs were spiralling, and most importantly, required information was not available on demand. The director was concerned that these issues with the organization's information systems would interfere with its ability to maintain positive relationships with existing donors and to secure new financial supporters-ultimately, that it could have an impact on the agency's efforts to achieve more good in the community. He was contemplating three options to solve this problem: build a new in-house system to replace the current Microsoft Access database system; purchase customer relationship management software specifically developed for non-profit fundraising and relationship management and install this on personal computers and servers in the offices; or adopt a cloud-based fundraising solution, where the organization's data would be stored on a secure, shared platform administered by the vendor.
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