This report discusses the implementation of CRM system in Park Hyat Sydney. It includes SWOT and PESTEL analysis of the hotel, opportunities and challenges, and the seven steps of SDLC model. The report also highlights the benefits of CRM system and its impact on sales and revenue.
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Running head: MANAGING INFORMATION SYSTEM Letter to Sponsor Mr Von Armin GM (General Manager) Park Hayat Sydney 7 Hickson Rd, The Rocks NSW 2000, Australia Sydney, Australia. Park Hayat Sydney aims to bring new level of luxury on the edge of Sydney Harbor. It comes up with a new level of harbour front which is situated between Opera House and Sydney Harbour Bridge. Park Hayat Sydney aims to offer its guest to intimate, Residential-Style hotel with proper architecture, design. It art aims to reflect the present Australian landscape most uniquely. It comes up with three rooftop suites which are inclusive for Sydney suite for more than 360- degree panoramic views. I am pleased to have this wonderful opportunity for presenting this report that is development of CRM system in your hotel. From our viewpoint, the main function of this new CRM (Customer Relationship Management) system is keeping track of various activities like sales, building portfolio, data analysis and providing on-demand solution. Around five months is needed for implementation of this new CRM system in Park Hayat Sydney. The process of implementation is divided into mainly seven stages of SDLC like planning, design, testing, development, implementation and lastly testing I am waiting for feedback from your side along with discussion of each part of the report for development of CRM. Regards,
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1MANAGING INFORMATION SYSTEM CRM System in Park Hayat Sydney Name of the Student Name of the University Author Note :
2MANAGING INFORMATION SYSTEM Executive Summary Hyatt group was founded by Jay Pritzker in the year 1957 when the Hyatt house was purchased to adjacent Los Angles. Hyatt Hotel Corporation is known to be global hospitality organization which is widely recognized in the industry. It is considered to be leader in the brand and tradition for innovation which has developed in last sixty years. Hyatt comes up with strong cultural values which are supported by the success in the past. The members of family of Hyatt are united by shared values along with a common goal. This new CRM system in Hyatt will help in improving sales and revenue along with maintaining a relationship with their customers. In the coming pages of the report, both SWOT and PESTEL analysis of Park Hyatt Sydney has been provided in details. A list of opportunity for developing and implementing CRM system in this hotel has been discussed in brief.
3MANAGING INFORMATION SYSTEM Table of Contents Introduction..........................................................................................................................4 Background of Hyatt............................................................................................................4 Internal and External analysis..............................................................................................4 PESTEL Analysis............................................................................................................4 SWOT Analysis...............................................................................................................4 Analyzing Problem and Opportunity...................................................................................4 Seven Steps of SDLC Model...............................................................................................4 Stage of Planning.............................................................................................................4 Monitoring or analysis of the Phase................................................................................4 Design Phase....................................................................................................................4 Upgradation Phase...........................................................................................................4 Analyzing (Testing Phase)...............................................................................................4 Adaptation or Implementation Phase...............................................................................4 Stage of Post Implementation..........................................................................................4 Project Management, Change Management and Risk Management...................................4 Project Management........................................................................................................4 Change Management.......................................................................................................5 Risk Management............................................................................................................5 Conclusion...........................................................................................................................5 References............................................................................................................................5
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4MANAGING INFORMATION SYSTEM Introduction The main focus of this particular paper is all about implementation of CRM system in Park Hyatt Sydney (Stanimirov, Zhechev and Stanimirova, 2017). CRM can be defined as kind of business strategy which is needed by most of the global business organization. It can improve the overall productivity of the business can be used for effectively used for managing the business strategy of Park Hyatt Sydney. A healthy business relationship can be developed with the help of proper CRM System(San-Martín, Jiménez and López-Catalán 2016). There is mainly two kinds of CRM system that is analytical CRM and collaborative. In the coming pages of the report, the background of Park Hayat Sydney has been discussed in details. After that, an analysis has been done concerning internal and external environment of this hotel. The internal and external environment is all about SWOT and PESTEL analysis of Park Hyatt Sydney has been provided in details. Various problems and opportunity for this hotel that is Park Hyatt Sydney have been discussed in brief. The seven steps of SDLC in alignment with CRM system implementation has been discussed in details. Background of Hyatt Hyatt Hotels is a well-known hospitality organization which is recognized on worldwide platform (Zouaoui, Triki and Ferchichi 2016). It is considered to be a leading brand in the history which is focused on development of innovation. The existence of Hyatt group of hotels is distributed on global platform. It tends to operate chain of hotels in some of the popular centres in different places of the globe. Hyatt group tends to operate a huge platform which focuses on providing new kind of growth opportunities in the present market. It is the place where the brand is under-represented. This particular hotel group come up with global executive in various
5MANAGING INFORMATION SYSTEM offices around the globe which tends to provide proper experience(Stanimirov, Zhechev and Stanimirova, 2017). There is proper combination of experiences of present location and brands with developing team. Hyatt group comes up with strong group of culture which is rooted deep along with values which are provided in the past that is the foundation of the culture. The family member of Hyatt is mainly united by shared values, single purpose which comes up with common goal. There is large number of colleagues of Hyatt properties which are led by experienced group of managers(Srivastava, Chandra and Srivastava 2019). The main strategy of Hyatt group is all about driving long term growth along with creating values for customers and shareholders. This particular hotel focus on growing, running some of the core business for providing best in class along with portfolio for growth for generation of revenue. Internal and External analysis PESTEL Analysis Park Hyatt corporation is known to be as one of the coveted chains of hotels in the whole world. It was started as single hotel near the Los Angeles International Airport (San-Martín, Jiménez and López-Catalán 2016). It comes up with more than 750 hotels which are situated under Hyatt the whole group. It can come up with well diversified for line of 7 products for 2018. Political:There is large number of political factors which tends to impact this hotel like high tax implementation (Rigo et al.2016). Apart from this, there are some other political factors which tend to effect like impact of Brexit and threat from outside terrorism. Economic:In the last few years, there has been huge amount of growth for much stronger and customer spending. As of high growth in the present economy, this particular hotel
6MANAGING INFORMATION SYSTEM has become lucrative (Reid and Catterall 2015). As the capital increase, there is increase in the overall capacity of individual which tends to affect the luxuries. It tends to become profitable in the hospitality domain like Hyatt. Social:There is large number of social factors which tends to affect the Hyatt group like shift of consumer preferences (Reicher and Szeghegyi 2015). There is large number of U.S millennial which tends to spend more on vacation. In the last few years, there has been shift of products for gathering overall experiences. Technological:IoT (Internet of Things) aims to establish connection with system of gadgets, home machines implantation of generating sensor. It mainly empowers to speak with each other that is to be controlled with each other. There is large number of visitor who can incline with the development in the technology (Rapp and Ogilvie 2015). The power of IoT has been understood and analyzed by some of the key hotel players. Park Hyatt Sydney can also explore technology like IoT for improving their customer experience along with offering personalization of services. Legal:The biggest legal factor which should be taken into consideration is all about an understanding concerning cybersecurity concerns and issues. Environmental:There are some factors like adverse effect of bad weather which can damage the reputation and business of Park Hyatt Sydney (Rahimi and Gunlu 2016). After from this, there is some kind of sustainable kind of hospital which is on high rise. SWOT Analysis
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7MANAGING INFORMATION SYSTEM Hyatt group of Hotels is considered to be one of leading organization in the present industry (Pedron et al.2016). Hyatt hotels aim to maintain a good position in the present market by analyzing the SWOT analysis. This particular hotel group was listed as 9thbest hotel for working with by fortune magazine 2018. StrengthWeakness Properties like Strategic Location Strong brand name and recognition on worldwide platform Loyal customer base Thisgroupcomeswithdiverse exposurelikehotelmanagement, ownership and development Hyatt comes up with limited market Share Very low amount of difference The major amount of this brand tends to dependent on US market. OpportunityThreats
8MANAGING INFORMATION SYSTEM Hyattgroupaimstoprovide membership plans. It tends to provide assets light model of business. It is one of the growing organization in whole hotel industry. Theorganizationfocusonsomeof health-conscious consumers. Thisparticulargroupfacestough competitionfromotherbrandslike Marriot International. It tends to encounter long term risk from lodging options. Otherfactorsliketerrorismand geopolitical tends to affect this hotel group. Analyzing Problem and Opportunity The main target in this industry is the consumer so tend to play a key role in their overall roles and profit (Ogilvie and Rapp 2015). There is large number of issues encountered by the consumer of this hotel industry which needed for profit and overall growth of Hyatt group. This particular hotel tends to have guests from regions of the world. They tend to have guests from different culture which needs to be effectively managed as per the needs of their business. The implementation of CRM system in this Park Hyatt can bring huge number of benefits (Lipiäinen 2015). It is needed for dealing with various kind of issues and challenges encountered by this organization. The growth and progress of the given business instruction can be improvised by the help of CRM System. The implementation of CRM System can easily provide huge number of benefits like improving their business process (Law et al. 2018). Sales and Marketing in Hyatt group can
9MANAGING INFORMATION SYSTEM provide huge number of benefits by benefits of CRM. Keeping a track of the provided services can be given by Hyatt which can be done in more professional way by the help of new CRM system. Seven Steps of SDLC Model Stage of Planning The implementation of CRM System can be easily integrated into Hyatt group as it can bring huge number of benefits to them (Kumar and Reinartz 2018). The best feature of new CRM System is all about contract management, opportunity for customers and managing the leads. Management of Sales and marketing can be adopted by this Hotel. It is all about forecasting of sales for this hotel. There is large number of services provided by new CRM System which will help in increasing sales and revenue (Kumar and Reinartz 2018). It is needed for managing proper business relation with the associated stakeholders. All the required business aspect of Hyatt group can be maintained with the help of working environment of this hotel. All the customers of this organization can be easily maintained by the help of CRM System. There are large number of business process associated within this organization like marketing and sales. It can be managed by the help of operational CRM System. Cost-Benefit Analysis for implementing CRM in Park Hyatt Sydney Hardware$200,000.00 Software$50,000.00 Development team salaries$200,000.00
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10MANAGING INFORMATION SYSTEM Training$50,000.00 Total Development Cost$500,000.00 Hardware$200,000.00 Software$200,000.00 Operational Labor$50,000.00 Total Operational Cost$450,000.00 Approximate salary savings$100,000.00 Reduced operating cost$490,000.00 Total Benefit$590,000.00 Discount Rate Used5.00% Project Cost- Benefit Analysis Analysis Variables: Discount Rate Used5.00% Annual Benefits $ 590,00 0.00 Annual Operational Costs $ 450,00 0.00 One-Time Development Cost $ 500,00 0.00 Year of Project 012345TOTAL
11MANAGING INFORMATION SYSTEM S Economic Benefit$0.00 $ 590,000 .00 $ 590,000 .00 $ 590,000. 00 $ 590,000. 00 $ 590,000. 00 Discount Rate1.00000.95240.90700.86380.82270.7835 PV of Benefits$0.00 $561,90 4.76 $535,14 7.39 $509,66 4.18 $485,39 4.46 $462,28 0.44 NPV of all BENEFITS$0.00 $ 561,904 .76 $ 1,097,0 52.15 $ 1,606,71 6.34 $ 2,092,11 0.80 $ 2,554,39 1.24 $ 2,554,39 1.24 One-Time COSTS $ (500,00 0.00) Recurring Costs$0.00 $ (450,00 0.00) $ (450,00 0.00) $ (450,000 .00) $ (450,000 .00) $ (450,000 .00) Discount Rate1.00000.95240.90700.86380.82270.7835 PV of Recurring Costs$0.00 $ (428,57 1.43) $ (408,16 3.27) $ (388,726 .92) $ (370,216 .11) $ (352,586 .77) NPV of all COSTS $ (500,00 0.00) $ (928,57 1.43) $ (1,336,7 34.69) $ (1,725,4 61.61) $ (2,095,6 77.73) $ (2,448,2 64.50) $ (2,448,2 64.50) Overall NPV $ 106,126. 73 Overall ROI 0.0433 Table 1: Cost-benefit analysis of CRM System Implementation in Park Hyatt Sydney (Source: Created By Author) Monitoring or analysis of the Phase This particular stage aims to highlight the need of analyzing the information along with condition for design of CRM System. This particular stage comes up with two phases that are collecting needs of the business, building process diagram. An organization like Park Hyatt
12MANAGING INFORMATION SYSTEM Sydney needs to include various kind of department like sales manager another kind of hotel executive (John 2017). The main function of this CRM System is all about keeping track of sales related activities and delivering customer experiences. Design Phase This particular section of the report aims to deal with an analysis of given information for analyzing the business needs of this Hyatt group (Jaber and Simkin 2017). A particular process diagram is needed for understanding this system in much better way. Upgradation Phase In the development stage of the CRM system, it is very much important for user to provide list of details about the needed data (Hefner et al. 2017). It can be managed by the help of new kind of CRM system. An IT infrastructure is needed for building new kind of system. With the help of new CRM system, there is large number of operations which is available to free of cost. There is some effective kind of training which is available for free of cost for which new CRM System can be reduced. Analyzing (Testing Phase) The implementation of this new CRM System tends to have professional which can reduce proper kind of outcome from it (Hasan 2018). Various kind of error, risk in this CRM project can be reduced by the help of testing plan. Every unit of operational CRM System can be examined with the help of Software Tester. Adaptation or Implementation Phase
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13MANAGING INFORMATION SYSTEM All the required details, making selection of proper procedure for implementation plan and training to staff members can be associated in this Park Hyatt Sydney. The implementation plan in this system is all about making use of proper system that is CRM for its customers (Hardjono and San 2017). It mainly tends to highlight the administration and proper training to staff of this Park Sydney hotel. There are various kinds of implementation ways like plunge, phased, pilot and parallel method. Proper selection of method can be done with the help of present system of the organization where various kinds of risk are encountered. Some professional in the domain of CRM System is needed for getting proper result which is needed by this Park Hyatt Sydney (González-Benito, Venturini and González-Benito 2017). Proper training should be given to the associated stakeholders of this organization. In the below table, proper training should be given to staff members like in the table format in the below ActivitiesStakeholders of CRM System Required Attendance Duration of Each project SomeBasictraining aboutthisCRM System Alltheassociated stakeholders of CRM system implementation project Attendanceofevery StaffofthePark Hyatt Hotel Two days Proper TrainingVendor of this CRM System IT Staff members for tacklingthepresent 3 days
14MANAGING INFORMATION SYSTEM issues Training for AdminTeamformanaging thisCRMSystem implementationin Hyatt Hotel. Properuserofthe System Five days Stage of Post Implementation The implemented CRM system in the Park Hyatt Sydney needs to be evaluated on continuous basis so that proper environment can be created for the implementation plan (Girchenko, Ovsiannikova and Girchenk 2017). The change mainly focuses on some kind of effective kind of new kind of system which needs to be implemented by making use of certain procedure. Project Management, Change Management and Risk Management Project Management There are various types of project which needs to managed by the help of project managers of this CRM system project. There is large number of stakeholders associated with this project which is needed for understanding the roles and responsibilities. It is mainly done so that the CRM system project can easily achieve in much successful way (Gholami et al. 2018). All the stakeholders tend to play a key role in the progressing of this project so it can be affected directly and indirectly. It is the duty of project manager to identify and make evaluation of the
15MANAGING INFORMATION SYSTEM stakeholder for its impact. It is needed for understanding their responsibilities so that the given CRM project is complete in proper way. MilestoneDurationStakeholder Understandingthebusiness needs of Park Hyatt Sydney 5 June 2017Project Manager and GM of this hotel Defining the technologies for this Park Hyatt Sydney 5 June 2017Projectmanagerandhotel executives Ananalysisofthepresent requirements of this hotel 1 July 2017ProjectmanagerofCRM system Makinganinputfromall customerandmaking documents of the customer 22 July 2017Head of sales of department and Project Manager CompletetheCRMsystem operation testing 10 August 2017Project manager Planning a training schedule23 August 2017Head of sales department and project manager Maintenance of implemented CRM system On-going processProject manager. Change Management
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16MANAGING INFORMATION SYSTEM All the required changes in the CRM system can bring huge number of benefits for Park Hyatt Sydney. It will ultimately improve their overall sale in business of this hotel. Accepting the minimum amount of changes in this strategy which is considered to be important part for CRM System. Leaders tend to play a key role in any kind of project (Dalla Pozza, Goet and Sahu 2018). Proper managing of the resources is known to be an important factor for this project. Abilities related to communication and motivation can easily play key role in this CRM System project. Risk Management Risk can be defined as uncertain event which can take place in any of the projects. The effect of risk can be of either type that is either positive or negative. Project Managers need to have an understanding of mitigating the main strategy in this CRM project (Bahri-Ammari and Soliman2016).ThereislargenumberofriskassociatedwiththisCRMprojectlike identification, analysis, response, monitoring. Proper identification of the risk can be done with the help of risk associated in this CRM implementation project. Some of the common types of risk of project are cost risk, schedule risk and performance risk. In this CRM project, cost risk can be encountered due to poor estimation of cost of materials. Schedule risk is all about various kind of risk which is not expected. Any kind of slippage in the schedule of this project can easily increase overall cost (Boyle 2015). It can result in delay of receipt for project benefits along with loss of competitive advantage. There is large number of risk associated with this project which can result in consistent specification of this CRM system project.
17MANAGING INFORMATION SYSTEM Conclusion The above pages of the report help in concluding the fact that there is various kind of risk associated with CRM implementation in Park Hyatt Sydney. The need for efficient customer management System. In the above pages of the report, two kind of CRM System that is analytical and collaborative has been discussed in details. Both SWOT and PESTLE analysis helps in having a proper kind of understanding of Park Hyatt Sydney. The current market reputation of organization that is internal and external stakeholders have been discussed in details. All the business opportunities and threats in this Park Hyatt Sydney can be understood by the help of SWOT analysis technique. CRM system implementation can be understood by the help of seven steps of SDLC model. Both the drawback and disadvantage of CRM system has been discussed in details in the above pages of the report.
18MANAGING INFORMATION SYSTEM References Bahri-Ammari,N.andSoliman,K.S.,2016.TheeffectofCRMimplementationon pharmaceutical industry’s profitability: The case of Tunisia.Management Research Review, 39(8), pp.854-878. Boyle,M.,2015.TheAnnualScientificMeetingoftheAustralasianTraumaSociety, TRAUMA2007, Park Hyatt Hotel, Melbourne, Australia 13-14 October 2007.Australasian Journal of Paramedicine,5(4). Cambra-Fierro, J.J., Centeno, E., Olavarria, A. and Vazquez-Carrasco, R., 2017. Success factors in a CRM strategy: technology is not all.Journal of Strategic Marketing, 25(4), pp.316-333. Dalla Pozza, I., Goetz, O. and Sahut, J.M., 2018. Implementation effects in the relationship between CRM and its performance.Journal of Business Research, 89, pp.391-403. Gholami, H., Zameri Mat Saman, M., Mardani, A., Streimikiene, D., Sharif, S. and Zakuan, N., 2018.ProposedAnalyticFrameworkforStudentRelationshipManagementbasedona Systematic Review of CRM Systems Literature.Sustainability, 10(4), p.1237. Girchenko, T., Ovsiannikova, Y. and Girchenko, L., 2017. CRM System as a Keystone of SuccessfulBusinessActivity.Knowledge-EconomySociety:ManagementintheFaceof Contemporary Challenges and Dilemmas, pp.251-261. González-Benito,Ó.,Venturini,W.T.andGonzález-Benito,J.,2017.CRMtechnology: implementation project and consulting services as determinants of success.International Journal of Information Technology & Decision Making,16(02), pp.421-441. Hardjono, B. and San, L.P., 2017. Customer Relationship Management Implementation and its Implication to Customer Loyalty in Hospitality Industry.Jurnal Dinamika Manajemen, 8(1). pp. 77-78
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19MANAGING INFORMATION SYSTEM Hasan, A.A.T., 2018. Customer Relationship Management (CRM) Practices of City Bank in Customer Retention Perspective in Bangladesh.Global Journal of Management And Business Research.pp.84-190 Hefner, J.L., Hilligoss, B., Knupp, A., Bournique, J., Sullivan, J., Adkins, E. and Moffatt-Bruce, S.D., 2017. Cultural transformation after implementation of crew resource management: is it really possible?.American Journal of Medical Quality, 32(4), pp.384-390. Jaber, F. and Simkin, L., 2017. Unpicking antecedents of CRM adoption: a two-stage model. Journal of Strategic Marketing, 25(5-6), pp.475-494. John, W., 2017. Measuring Organizational Capital in CRM context: An EFA Approach.FIIB Business Review, 6(4), pp.39-47. Kumar, V. and Reinartz, W., 2018.Customer relationship management: Concept, strategy, and tools. Springer. pp.471-431. Kumar, V. and Reinartz, W., 2018. Future of CRM. InCustomer Relationship Management(pp. 385-404). Springer, Berlin, Heidelberg. Law, R., Fong, D.K.C., Chan, I.C.C. and Fong, L.H.N., 2018. Systematic review of hospitality CRM research.International Journal of Contemporary Hospitality Management, 30(3), pp.1686- 1704. Lipiäinen, H.S.M., 2015. CRM in the digital age: implementation of CRM in three contemporary B2B firms.Journal of Systems and Information Technology, 17(1), pp.2-19. Ogilvie, J. and Rapp, A., 2015. CRM and social media. InThe Dark Side of CRM(pp. 76-91). Routledge. Pedron, C.D., Picoto, W.N., Dhillon, G. and Caldeira, M., 2016. Value-focused objectives for CRM system adoption.Industrial Management & Data Systems, 116(3), pp.526-545. Rahimi, R. and Gunlu, E., 2016. Implementing customer relationship management (CRM) in hotel industry from organizational culture perspective: case of a chain hotel in the UK. International Journal of Contemporary Hospitality Management, 28(1), pp.89-112.
20MANAGING INFORMATION SYSTEM Rapp, A. and Ogilvie, J., 2015. CRM and social media. The Dark Side of CRM:Customers, Relationships and Management. pp.39-40 Reicher, R. and Szeghegyi, Á., 2015. Factors affecting the selection and implementation of a Customer Relationship Management (CRM) process.Acta Polytechnica Hungarica, 12(4), pp.183-200. Reid, A. and Catterall, M., 2015. Hidden data quality problems in CRM implementation. In Marketing, technology and customer commitment in the new economy(pp. 184-189). Springer, Cham. pp.526-545. Rigo, G.E., Pedron, C.D., Caldeira, M. and Araújo, C.C.S.D., 2016. CRM adoption in a higher education institution.JISTEM-Journal of Information Systems and Technology Management, 13(1), pp.45-60. San-Martín, S., Jiménez, N.H. and López-Catalán, B., 2016. The firms benefits of mobile CRM from the relationship marketing approach and the TOE model.Spanish journal of marketing- ESIC, 20(1), pp.18-29. Srivastava, S.K., Chandra, B. and Srivastava, P., 2019. The Impact of Knowledge Management andDataMiningonCRMintheServiceIndustry.InNanoelectronics,Circuitsand Communication Systems(pp. 37-52). Springer, Singapore. pp.526-545. Stanimirov, E.P., Zhechev, V.S. and Stanimirova, M.R., 2017. Strategic Readiness for CRM Process Management: the Case of Business Service Companies in Bulgaria.Inquiry, 2(1). Zouaoui, F., Triki, A. and Ferchichi, A., 2016. CRM Implementation Process: Application of the Strategic Alignment Model.International Journal of Application or Innovation in Engineering & Management, 5(3), pp.142-152.