Implementation of a New CRM System

This proposal suggests implementing a CRM system in Primus Hotels to enhance customer relationship management. It includes a 7-step SDLC model, SWOT and Porter's Five Forces analysis, and project management details.

Running head: IMPLEMENTATION OF A NEW CRM SYSTEM
Letter for Sponsor
Date
Sponsor Name
Address
To whom it may concern,
The Primus Hotels has been one of the most iconic accommodation offering organisations in
Sydney and it stands as one of the most ancient hotels in the town. The accommodation offering
organisation of Primus hotels has been amalgamating the roots of the organisation along the
history of Sydney and the new technologies to be utilised within the organisational operations.
The primary reason for this has always been the key organisational goal of setting a good level of
relationship with the customers and the guests. This is why the customer relationship
management system at the CRM system is what the organisation is looking for to implement
within the system.
The overview of the entire project is to maintain the best possible CRM system that would
enable the software setup containing all the data generated within an organisation including the
customer details and the business operations regarding every individual guest in the hotel. The
CRM system would enable all the details about every customer engrossed within a database
system that would be easily accessible and handled with all kinds of connecting devices via
Internet. This is elaborated in the proposal attached below provided by the justification of the
chosen system, the system analysis and system design of implementing the CRM system the
development, testing and implementation of CRM and all the post implementation activities
added along.
It would be extremely beneficial for the organisation in setting up an impeccable relationship
with the customers and at the same time utilise the technological advancements within the
operations of the company to maintain a well balanced competitiveness with the other
competitors in the industry. Therefore we would like to request you to accept the sponsorship
deal for providing us with valuable monetary support to fill out the necessary details about
implementing the CRM system within the operations of Primus Hotels.
I hope you would keep our request and oblige.
Thanks and regards,
Name of the Concerned Employee,
The Primus Hotels

1IMPLEMENTATION OF A NEW CRM SYSTEM
Implementation of a new CRM System
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................4
Organizational Context................................................................................................................4
Discussion on the External and Internal Environment................................................................5
SWOT Analysis:......................................................................................................................6
Porter’s Five Force Analysis...................................................................................................7
Identification of the Problems and the Opportunities..................................................................9
SDLC Model in the Customer Relationship Management System...........................................10
Managing the Project.................................................................................................................14
Change Management Procedure................................................................................................14
Risk Management......................................................................................................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................17

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Executive Summary
Organizations specialized in the hospitality industry has been ever developing and this is why the
organizations in the hospitality industry have been developing the technological advancements in
their operations to gain competitive advantages. The organizations like Primus Hotels are
enlisted as one of the most popular hotels in midtown Sydney that is declared as a heritage hotel
in Australia. It forms one of the most iconic attractions in the city of Sydney and this hotel stands
as one of the most ancient hotels in the town.. The CRM system helps in the proper management
of the various departments within an organization by handling them. It also supports the sales
management in the organization along with the delivery of actionable insights. The CRM system
also integrates the social media and helps in the effective communication between the teams in
an organization as well as the various systems keeps the business be up to date with all the
information about the customers and track all the interactions of the customer with the operations
in the organization and at the same time manage their accounts within the organization. The
research report as presented below is a proposal for the sponsors to provide with valuable
monetary support for filling out all the necessity is required to implement the CRM system
within the operations of the Primus Hotels. This wills be described through the implementation
of a 7-Step SDLC Model that would be presented through a proper set of analysis of the external
and the internal environment within the organization developed through various methodologies
like the SWOT and Porter’s Five Forces Model respectively. The report also has a letter of
proposal attached that introduces the main reason behind raising this proposal for implementing
a CRM system for the Primus Hotels, Sydney.

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Introduction
The purpose of this research proposal is to establish a 7-Step Model for Systems
Development Life Cycle or SDLC to implement the Operational CRM System within the Primus
Hotel in Sydney. This entire implementation plan needs to be developed through an overall
background of the organization presented to see whether the implementation is feasible enough.
Next, the proposal would analyse the external and the internal environment within the
organization developed through various methodologies (John 2017). This would help in
identifying the provision of the CRM system in the organization based on the current state of
relationship between the customers of the organization and the organization itself to help
understand the methods that the organization should utilize in implementing the CRM system.
The last and final leg of the proposal would have the managing of the project, the
implementation of the new change included in the system and the assessment and management
of the associated risk within the system implementation.
Organizational Context
The Primus Hotel in Sydney is enlisted as one of the most popular hotels in midtown
Sydney that is declared as a heritage hotel in Australia. It forms one of the most iconic attractions
in the city of Sydney and this hotel stands as one of the most ancient hotels in the town. There
are almost 172 rooms in the hotels which are endowed with all the amenities (Rapp and Ogilvie
2015). The amenities make up for an engaging and authentic experience for the guests. There are
also Presidential Suites that are provided for the people from the cream if the society and the
highest of the dignitaries. The accommodation offerings in the hotels are endowed with state of
the art settings regarding the application of new technologies to make sure that the hotels are
equipped with all the amenities that makes sure that the stay experience of the guests are one to

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remember. In addition to that, the hotel lives up to the expectation of the heritage status in the
decoration of the hotel. The decoration of the hotel describes the roots of hotel from where it had
begun.
Other than the decorations owing its credits to the ancient times when the hotel was first
set up, the rooms are also divided into specific categories that describe the needs of the people.
Not just the suites, but the rooms also have categories according to the availability of the
amenities. The relationship between the customers and the hotel also needs to be extremely
intimate so that the Primus Hotel lives up to the expectation of the guests. In the changing
scenario of the world and the entire industry structure of the hotel businesses, it is identifiable
that the hotels would need to implement feasible systems to enhance the quality of services and
the relationship between the guests and the people in charge of the operations within the
organizational system. The amenities of the hotels include 172 rooms and suites, complimentary
wireless internet, room services available at any given hour, concierge, laundry and dry cleaning,
business centre, valet parking, gymnasium and outdoor heated pools (Pedron et al. 2016). The
hotel according to its external appearance stands an example of the fusion between the new age
state of the art amenities with the hint of ancient times when the hotel was set up.
Discussion on the External and Internal Environment
Before implementing a new system in the organizational set up, it is required that the
organization identifies its external and internal environment in an elaborate way, so that it is easy
to identify the places that the organization needs to improve within the organization (Rigo et al.
2016). The contemporary industry of the latest times calls for the hospitality industry to evolve
with time as it is required that they acknowledge the competition within the other hotels as well
in the market. To understand the internal and external environment of the Primus Hotels, it

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would be necessary to bring about the SWOT analysis, which analyses the strengths,
weaknesses, opportunities and threats within the operations of the organizations and the Porter’s
Five Forces analysis to describe the external forces that affect the operations of the organization
(Kumar and Reinartz 2018). Therefore, following would be the SWOT and the Porter’s Five
Forces rule utilized for the external and internal environment analysis for the Primus Hotels
respectively:
SWOT Analysis:
Strengths: The Primus Hotels have been in the business since the ancient times when
there were no such accommodations provided for the guests. The hotel is listed as one of the
heritage sites in the city of Sydney and has an elongated history which makes it an intriguing
stay for the guests. In addition to that, the organization merges the idea of age old decorations
and state of the art technologically advanced amenities that include a number of people to opt for
the Primus Hotels before looking for any other hotel (Gholami et al. 2018). Other than the
accommodation system, the restaurants and the bars inside the hotel is also known for its state of
the art amenities provided for the guests.
Weaknesses: The organization has been set up at the times when there was less to no
provisions of luxurious hotels in Australia and it was one of a kind (Jaber and Simkin 2017). The
Primus Hotels have evolved and developed ever since with changing times for providing the best
quality of services to the guests within the hotels. However, it is not identified as the most
technologically advanced hotels in Australia since the major focus remains on the amenities
provided to the guests with an amalgamation of the old and the new eras. The operations within
the Primus Hotels are not identified as one of the most technologically advanced ones.

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Opportunities: The Primus Hotels can utilize the changing technological advancements
since it has so far accepted the ever changing technologies when it comes to providing amenities
to the guests within their stay. This can be seen through the ancient times decorations that is seen
in the physical appearance of the hotel but the newer technologies adopted to form the
technologically advanced provisions to the guests (Kumar and Reinartz 2018).
Threats: The ever changing world of hospitality industry is developing with the
advancement of time and it has been reported that the organizations in this industry are happily
accepting the changes in the industry (Cambra-Fierro et al. 2017). The competitive organizations
in the same industry are always trying to implement newer technologies in handling the
operations within the organizations to make sure that it stays ahead of all the organizations in the
industry. This forms a threat for the Primus Hotels as well.
Porter’s Five Force Analysis
Competitive Rivalry: Primus Hotels are one of the biggest accommodative hotels in
Sydney and thus it has a certain level of expectations of the customers who are looking for an
exquisite experience during their stay or the time of accommodating in the hotels (González-
Benito, Venturini and González-Benito 2017). The hospitality industry has been gaining the
upper hand as an industry as a whole in adopting the technological means for handling the
operations within the organization.
Power of Suppliers: The Primus Hotels belongs to the hospitality industry which
primarily follows a B2B or Business to Business strategy in the operations. The suppliers for the
industry are mostly the other businesses that supply the equipments to the hotel so that they can
provide the same to the customers of the Primus Hotels (San-Martín, Jiménez and López-Catalán

8IMPLEMENTATION OF A NEW CRM SYSTEM
2016). Therefore, the relationship between the suppliers and the hotel needs to be absolutely
strong so that the luxurious amenities provided by the Primus Hotels are kept intact.
Power of Customers: The customers are the major consumers in the hospitality industry
and it is and unchangeable factor in the case of the Primus Hotels as well. All the enhancements
that the hotel makes are only inclined in making the operations of the hotel much better so that
they can serve their customers in a better way (Dalla Pozza, Goetz and Sahut 2018). The
amenities and technologies are thus required to be at a state of constant improvement to make
further better utilization of the amenities for the customers, thus making the relationship between
the customers and the organization much stronger.
Threat of New Entrants: The competitors that already exist within the hospitality
industry are at a constant stage of implementing technologically advanced strategies that would
make sure that the organization is a profitable one. The customers would be naturally attracted
towards the hotel that would be more appealing as a value for money one providing all the
advanced amenities (Bahri-Ammari and Soliman 2016). In the case of Primus Hotels, it has
already been established long back and therefore, it needs to upgrade the systems with the
changing time. Whereas, the new organizations in the industry has the opportunity to notice all
the trials and errors performed by the other organizations and establish the organization by
eradicating all the errors performed by the already existing ones. Therefore, there is a threat from
the new entrants prevailing in the industry for the Primus Hotels.
Threat of Substitutions: When an organization in a specific industry fails to live up to
the expectations of the customers, there is naturally a threat from the other organizations in the
industry that might be the threat in the form of a new entrant (Ogilvie and Rapp 2015).

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Therefore, the Primus Hotels always have to be at a constant level in upgrading so that they are
not at a threat of being replaced by the other organization in the industry.
Identification of the Problems and the Opportunities
Problems in the Organization Opportunities for the Organization
 The hotel does not have a specialized
system dedicated to manage the
customer relationships within the
organization.
 The system of operations from a
technical point of view is quite outdates
since it was found that most of the
systems still work under the ancillary
functions of the Opera Systems (Al-
Azzam and Khasawneh 2017). The
main functions that the system follows
are the check in time and check out
time which does not highlight the
storage of the customer database and
the management of relationship
between the customers and the
organization.
 The sales activities are found to be
recorded only by the sales person in a
manual way. It has been found by the
researches that this system results to
numerous human related errors and the
huge load of customer data makes it
impossible to backtrack the errors to
solve them.
 Customer retention has been a major
factor for the Primus Hotels but the
researchers have found that this is a
major problem that hospitality industry
faces in trying to retain the old
customers rather than trying to be more
open to the new customers (Srivastava,
Chandra and Srivastava 2019). The
amount of profit that Primus Hotels
could have made with the entry of new
customers is much higher than the
hotels are gaining by retaining the old
ones.
 It has been found that since the
organization is regarded as a heritage
site and has huge historical value, there
is high customer demand found
(Rahimi and Gunlu 2016). This gives
an opportunity to the organization to
increase the amount of sales and
revenue by maintaining a good
customer relationship to achieve the
expectation of the customers.
 The general trend also indicates that the
business performances in the hotel has
been using the technology system in the
market are better than the ones that do
not have.

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 The relationship management system
within the organization is not clearly
defined and it has been described that
the nature of proper customer
relationship management system is
much lower than that of its customers.
This is valid for all the departments,
starting from the sales department to
the operational management.
Table 1: Problems and Opportunities in Primus Hotels
(Source: Created by Author)
SDLC Model in the Customer Relationship Management System
The Systems Development Life Cycle or SDLC Model is developed to have a systematic
approach in solving a problem that has arrived in the business through 7 stages of solutions for
the information systems to complement the implementation process (Law et al. 2018). The
Primus Hotels is in the need of a Customer Relationship Management or CRM System. It needs
to be implemented in the sales and marketing department to maintain a good customer
relationship for helping the business performance to improve in a much better way than it is now.
Following would be the SDLC Models for implementing the CRM system in the sales and
marketing department for the Primus Hotels:

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Figure 1: SDLC Model for Implementing the CRM System in Primus Hotels
(Source: Created by the Author)
 Planning Phase: In this stage, the available CRM systems that are available in
the market are analysed. There are four major categories of CRM systems
available in the market; namely, operational, collaborative, analytical and portal
based (Hardjono and San 2017). There should be proper implementation of two
main categories of the CRM systems that would feasibly handle the daily
operations as well as analyse the customer information according to the data
warehouse (Lipiäinen 2015).
 Analysis of Project Feasibility: This phase analyses the economic feasibility of
the project that would be used to measure the expected savings in cost, increased
revenue and profits and all the other benefits that would exceed the costs of

12IMPLEMENTATION OF A NEW CRM SYSTEM
designing, developing and operating a proposal system (Zouaoui, Triki and
Ferchichi 2016). To launch a new information system, it is necessary to consider
the economic feasibility so that the company can evaluate a cost benefit analysis
for calculating the tangible and intangible costs and benefits. It would only be
considered feasible if the CRM implementation increases the acquired benefits
compared to the cost of implementation.
 Development of the design: This is the system design phase that would describe
the ways by which the Primus Hotels have been planning to achieve its goals. It
would also take into consideration about the risk that the internet security system
and data confidentiality systems possess since the data that the organization
would be dealing with are the intricate details of the customers. It should only be
confined to the systems used within the organization, and any employee working
in the Primus Hotels should be barred from using the same in their personal
connecting devices (Hefner et al. 2017). Even, the personal devices of the
employees should be prohibited to connect to the internet through the wireless
internet used within the hotels. The system model developed as such would be a
graphical model representing the system design that would include the GUI, data
model and entity relationship diagrams. The design would finally be drafted
including the Hardware, network, software, database, user permission
specification, which would be approved by the executives in the sales department.
 Development: This would be the next step of implementation where the design of
the system would be taken to develop the It infrastructure, database and programs.
After the analysis of the opportunities and problems in the sales and marketing

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department for the Primus Hotels, it can be said that it is better to implement the
ASP approach in the development of the CRM System (Hasan 2018). It is better
that the development phase implements a trial version of the entire system so that
the hotel employees can evaluate the system and changes can be made
accordingly specified for the Primus Hotels.
 Testing: It is essentially necessary that the system goes through a phase of testing
before the actual implementation of the system occurs. This would be done to
eliminate the software problems before the system is actually put together to be
implemented for handling the business operations of the Primus Hotels
(Stanimirov, Zhechev and Stanimirova 2017). It would control the entire CRM
system in maintaining quality of services of the organization and verify if the
CRM system is effectively handling all the sales and marketing operations within
the organization.
 Implementation: This phase converts all the project parts into and actual business
operation system including the main business activities including the detailed user
documentation, implementation method and the training of the end users, which
in this case are the employees of the Primus Hotels (Barcelo et al. 2018).
 Maintenance Phase: The primary implementation involves the review after the
process of implementation, developing an assistance guideline for the system
users, correcting the problems identified in the testing phase and the provision of
a supportive environment.

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Managing the Project
This would be the phase where the CRM system would be implemented within the
operations of the Primus Hotels focusing on the sales and marketing department to establish a
much improves customer relationship with the knowledge, skills, tools and techniques involved
to meet the project requirements (Reid and Catterall 2015). This would begin with the following
processes as below:
 Development of a project plan
 Identifying and managing the stakeholders
 Identifying the impact level of the project from the perspectives of the
stakeholders
 Evaluating the responsibility of each stakeholder involved within the project
Change Management Procedure
The processing of the new and improved CRM system with the organization focusing on
the hospitality industry would include a strategy to be implemented as well for handling the
changes through the new system (Girchenko, Ovsiannikova and Girchenko 2017).
 The first step in this strategy would involve change in the vision of the
organization.
 Next it would be defining an optimum change strategy and leadership style.
 It would then include the workforces who would be fit for handling the
technologically advanced CRM system after the existing employees have been
trained.

15IMPLEMENTATION OF A NEW CRM SYSTEM
Risk Management
Risks are an inevitable and unavoidable issue in the aggregation of company activities
and implementation of the new CRM system in the Primus Hotels are also susceptible to the
same risks (Almotairi 2016). All these risks are combined through the proactive and ongoing
activities of the company and the management of all these risks should be accompanied by the
identification, analysis, and response and monitoring done to control the risks (Reicher and
Szeghegyi 2015). The probability of the risks should be identified as a part of the risk
management plan and brain storming needs to be done to implement strategies to resolve the
risks.
Conclusion
Therefore, in conclusion it can be said that the processes that have been utilized as the
implementation plan of the new CRM system in the Primus Hotels has been feasibly described as
the above report. The implementation plan has been established through a 7-Step Model for
Systems Development Life Cycle or SDLC to implement the Operational CRM. This entire
implementation plan has further been developed through an overall background of the
organization presented to find the feasibility of the entire system within the current state of the
organization. Next, the proposal had a complete analysis of the external and the internal
environment within the organization developed through various methodologies like the SWOT
and Porter’s Five Forces Model respectively. This has helped in identifying the provision of the
CRM system in the organization based on the current state of relationship between the customers
of the organization and the organization itself. This has further been utilized to understand the
correct method to implement the CRM system within the sales and marketing department of the
Primus Hotels. The last and final leg of the proposal has the project management for the

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implementation of the project, the implementation of the new change included in the system and
the assessment and management of the associated risk within the system implementation.

17IMPLEMENTATION OF A NEW CRM SYSTEM
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