Implementation of CRM System in Sydney Harbor Marriot Hotel

The report proposes the implementation of a CRM system in Sydney Harbor Marriot Hotel for improving sales and customer relations. It includes SWOT and PESTEL analysis, 7-step SDLC model, and project management strategies.

Running head: MANAGING INFORMATION SYSTEM
Letter to Sponsor
Ms Jennifer Brown
General Manager
Sydney Harbor Marriot Hotel
30 Pitt St, Sydney NSW 2000, Australia
Sydney, New South Wales, Australia.
Marriot International, Inc is considered to be a leader in the domain of lodging organization with
more than 6,700 properties in more 130 countries. It has reported revenue more than 22 billion in
this fiscal years that 2017. This particular group was founded by J. Willard and Alice Marriot
which is guided by a family leadership for more than 90 years. The headquarter of this
organization is located outside Washing, D.C Bethesda, Maryland.
I am pleased to have this wonderful opportunity for present in this proposal that is development
of CRM system in this hotel of Marriot group. For our point of view, the main focus of this CRM
system will be used for keeping track of activities related to sales, excellent service to customers,
field services, analysis of given data and proper CRM solution. The adaptation of CRM system
in this hotel will require a time interval of six months. The phases of system implementation are
divided into seven steps that are planning, analysis, implementation, testing, maintenance. For
the success of this project, Marriot group needs to appoint project team members for monitoring
the step of system implementation.
I am waiting for feedback from your side and attaching the proposal of the implementation of
new CRM in this hotel of Marriot group.
Regards,

1MANAGING INFORMATION SYSTEM
Managing Information System
(Implementation of CRM System in Sydney Harbor Marriot Hotel)
Name of the Student
Name of the University
Author Note:

2MANAGING INFORMATION SYSTEM
Executive Summary
In the year 2016, Marriot international acquires aims to acquire Starwood hotels and resorts. It
has built the world largest hotel organization with more than 5700 properties offering more 1.1
million to its guest. It tends to have room for more 30 brands over 110 countries. With the help
of IT management System (CRM) this particular hotel can easily increase sales revenue and
enhance its relationship with customers. An analysis has been done concerning implementation
of CRM system in Sydney Harbor Marriot Hotel. The report aims to provide proper background
along with vision of this hotel group. It is mainly done so that they can easily provide luxury
products and services to large number of customers. It is considered to be good proposal for
developing and making use of CRM (Customer Relationship System) for increasing their overall
sales.

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Table of Contents
Introduction..........................................................................................................................5
Organizational Background.............................................................................................5
Internal and External Environment..................................................................................5
SWOT analysis............................................................................................................6
PESTEL Analysis........................................................................................................7
Identification of both Problem and Opportunity.............................................................8
7-Steps of SDLC Model in this CRM system for Marriot Group...................................9
Planning Phase...........................................................................................................10
Monitoring Phase of SDLC Model............................................................................14
Design phase..............................................................................................................15
Stage of Developing of CRM System.......................................................................16
Stage of Testing CRM System..................................................................................16
Implementation Phase of CRM System.....................................................................16
Post Implementation Phase........................................................................................17
Project management, risk management and Change Management...............................17
Project Management..................................................................................................17
Change Management.................................................................................................18
Risk Management......................................................................................................19
Conclusion.........................................................................................................................19
References..........................................................................................................................21

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Introduction
The upcoming pages of the report deal with implementation of CRM (Customer
Relationship Management) in Sydney Marriot by making use of SDLC Model. The report begins
with an analysis of internal and external environment of Marriot group (Evanoff 2016). Apart
from this, it tends to highlight the importance of new CRM system for achieving its required
goals. As per the seven-step of SDLC, Marriot group needs to project team for the
implementation of new system. Both the project manager and team members need to follow the
seven-step for executing the CRM implementation project (Zervas, Proserpio and Byers 2017).
The report highlights the primary activity and steps how this CRM project can be completed
successfully. It also tends to highlight the benefits and drawbacks of any other method. It tends
to highlight the proper step needed for bringing solution for each kind of step. The last section of
the mainly deals with Project management, change management and lastly risk management. It is
mainly done so that it can mitigate risk, minimize cost and meet the requirements of their
business successfully.
Organizational Background
In the history of 80 years, Marriot International tends to build a proper reputation for best
quality of services and innovation. Marriot is considered to be leader in lodging industry. It is
considered to be leader in the global distribution system, frequent travel programs (Leung, Bai
and Stahura 2015). It mainly focuses on global sales and marketing techniques. Marriot tends to
given its guest and owners with confidence for putting their brands. It tends to come up with
more than 3000 properties in different region of the world. Marriot tends to define its success
which is constantly moving forward.

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Internal and External Environment
SWOT analysis
Marriot International Inc is considered to be brand name in the whole Hotel groups and
chain of hospitality which is based on United States (Deraman et al. 2017). This particular group
aims to own both five star and seven-star hotels in different regions of the world. In the year
1927, this particular hotel chain was established in Washington.
Strength: The biggest plus point of this group is all about strict value to operational
factors. It comes up with strict codes of conduct which has been designed by the top
management of these hotels. Every hotel needs to follow its details in final way (Molina-Azorín
et al. 2015). Marriot is considered to be one of the competitive brands in the present business
which mainly focuses on competition.
Weakness: Marriot group focus on aggressive drive and empire which is very much
huge. So, it is difficult to maintain its standard of services throughout our brand until and unless
the brand is diluted (Fang, Ye and Law 2016). The image of Marriot group has been marred by
various continuous controversies. The most recent one is the blockage of personal Wi-Fi of
customer resulting in risk of privacy. The negative marketing tends to keep this brand in poor
light. Marriot group tends to focus on family values which is not going change in the upcoming
days.
Opportunities: People from different regions of the world are very much open to staying
in some of the luxury hotels when they travel with family. It is continuous trend which comes up
with sharp incline in the developing economy (Bontis, Janošević and Dženopoljac 2015). In last

6MANAGING INFORMATION SYSTEM
ten years, the average number of people travelling on work and pleasure has increased. It comes
up with tie-ups with some of the airline hotels which can affect this option for their advantage.
Threats: Marriot tends to encounter huge amount of competition in different kind of
brand like Hilton and Novotel which focus on becoming marketing leaders (Mahal 2018). The
present recession has badly hit the hospital industry and along with properties which are out
market. It has been because they are unable to generate proper revenue.
PESTEL Analysis
Marriot group at present is considered to be most successful in the expansion of Effort
which has led to the growth of proper revenue (Nyadzayo and Khajehzadeh 2016). In the year
2015, Marriot group has expected growth of revenue around 14.22 billion dollars.
Political: There are some major political factors which can affect the Marriot group of
any kind of terrorism, relation with international clients and political climate in most of the
tourist destination (Navimipour and Soltani 2016). It is considered to be biggest threat in the
domain of terrorist attack or even military conflict. It can ultimately result in disrupting for air
travel or even frighten people from travelling.
Economic: There is large number of economic factors which has slowed the economic
growth of this hotel group in China (Hassan et al. 2015). There are some events like collapsing
its stock market in China. There is crisis of debit in Europe which has reduced the overall
buying power and its ability to travel. The biggest impact of this tapering off its business travel
on which Marriot group is heavily depended.
Social: Social factors mainly tends to highlight its future for the Marriot group just
because of the number of people who have planned international travel. There has been

7MANAGING INFORMATION SYSTEM
increasing around 13% in between the year 2013 to 2014 (Gummesson 2017). Any kind of
change in culture can easily impact the Marriot group which is inclusive of number of Chinese
and travellers from another part of Asia. Huge population in US and other parts of Europe has
been growing old due to increase in demand for various kind of experiences gathered from travel
like packaged tours.
Technological: Technology tends to have huge amount of impact on the overall hotel
business in the given form online business in rental services to its guest. It is expected that
around six million guest tends to stay in Airbnb in the year 2013 (Zerbino et al.2018). One of the
biggest threat possessed in Marriot group is due to Airbnb on some of the traditional hotels
which can avoid expenses like taxes and regulation of fire.
Legal factors: There is major number of legal factors which can affect the business of
Marriot group like Airbnb. There is some kind of authorities in cities like New York and
Barcelona which have fined Airbnb and its host (Laudon and Laudon 2015). There some kind of
criticism about the host abusing the Airbnb for understanding the amount running on illegal
hotels. Another kind of issue encountered is Airbnb for understanding large number of revenue
for some municipalities.
Environmental: At present, there are some environmental factors which can damage the
business of Marriot group. Reducing the oil prices can easily result in reduction of cost of travel
along with demand for more hotel rooms (Zhang et al.2016). There is threat to the business of
Marriot that there can be increase in the sudden cost of the fuels more specifically the airline
industry.
Identification of both Problem and Opportunity

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The word marketing can be defined all about targeting and segmentation of customer of
any industry. Customer is considered to forefront of any business organization in this hotel
industry. Marriott international is considered to be a global leader in the global operator of the
hotel and its related facilities. In the year 1927, this particular hotel group was founded by J.
Willard and Alice Marriot (Fidel, Schlesinger and Cervera 2015). The organization comes up
with more than 30 brand portfolio which is positioned in luxury and mid-marketing prices.
Marriot is considered to be overall lodging system which comes up with more than 6520
properties and resorts. Management of this hotel requires CRM system so that they can
understand their demand and change in its overall strategy.
Another kind of issue encountered in Sydney Marriot is that the hotel does not have any
kind of system so that they can manage the relation with the customers (Agnihotri et al.2016).
The main function of this CRM system is to check the function like check in and check out while
it has the function of storing customer database and CRM system which is not highlighted. This
particular hotel has some issues like the sales activities are recorded manually by salesperson in
the word doc which reduces the overall efficiency. So, it becomes a difficult task to keep track of
different business process (Heding, Knudtzen and Bjerre, 2015). It can easily affect the sales
performance in direct way. With the help of new CRM system model all the required executives
of sales and marketing department can track and organize their daily work along with
improvement of business process. It can provide huge number of benefits for sales manager to
keep track of each of the representative along with planning for sales strategy.
7-Steps of SDLC Model in this CRM system for Marriot Group

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SDLC stands for System Development Life Cycle (SDLC) can be defined as a systematic
approach which is needed for providing solution to various kind of information System based
solution (Tzokas et al.2015). It mainly comes up with seven steps of Information System. A
proper kind of CRM system is needed for maintaining healthy relation with customers along with
improving the overall business performance. In the coming pages of the report, a step by step
method has been provided for implementation of CRM system in Sydney Marriot.
Fig 1: Seven Steps of SDLC
(Source: Shaw 2016)
Planning Phase
Identification of CRM system
CRM system comes up with four kinds of major application like operation, analytical,
collaboration and lastly portal depended. In the hotel industry, CRM system can be defined as
the combination two major kind of function like day to day operation and analysis of customer
information as per the given data warehouse (Tzokas et al.2015). There are mainly two kinds of

10MANAGING INFORMATION SYSTEM
analytical that is operational CRM system and analytical CRM system. Operational CRM is
considered to be a part of daily business activities which is all about delivery of different kind of
products and related services. For different sales persons of this hotel, they can easily keep track
of sales related activities. Sales staff needs to have a proper kind of input from various customer
needs along with preference in this CRM (Haislip and Richardson 2017). On the contrary,
analytical CRM is considered to be part of customer demand along with present market trend
which is needed for data analysis. It is needed for providing new thoughts and ideas on the
strategy for sales.
Fig 2: Operational and Analytical CRM System
(Source: Rodriguez, Peterson and Ajjan 2015)

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The evaluation is mainly done for understanding the present system which is needed for
providing strategic goal. Marriot group of hotel is a luxury chain of hotel which is needed for
engaging various customers along with achieving desired targets (Mitrega and Pfajfar 2015). The
biggest plus point of CRM system is all about its application for improving customer satisfaction
along with managing sales growth. It is needed for optimizing the possible solution by making
use of data mining and data warehouse based technologies. This CRM implementation project is
considered to be in line with the strategy and goal of this Marriot group.
Analyzing the feasibility of CRM system in Marriot Group
Economic feasibility is needed for analyzing the involved cost in a project, improvising
the overall revenue and profits for this organization (Wang and Kim 2017). It is mainly needed
for improving the design, development and proper operation of this CRM system. Marriot group
needs to evaluate a cost-benefit analysis of this CRM system implementation. It can bring huge
number of benefits which this hotel group needs to address as it can provide benefit in the long-
term. An analysis has been done concerning ways of recovering the involved cost for CRM
system in the 4th and 5th year.
Cost-Benefit Analysis for implementing CRM System in Marriot International
Hardware $ 200,000.00
Software $ 50,000.00
Development team salaries $ 200,000.00
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

13MANAGING INFORMATION SYSTEM
Total Benefit $ 590,000.00
Discount Rate Used 5.00%
Project Cost-
Benefit
Analysis
Analysis
Variables:
Discount
Rate Used 5.00%
Annual
Benefits
$
590,00
0.00
Annual
Operational
Costs
$
450,00
0.00
One-Time
Development
Cost
$
500,00
0.00
Year of
Project
0 1 2 3 4 5
TOTAL
S
Economic
Benefit $0.00
$
590,000
.00
$
590,000
.00
$
590,000.
00
$
590,000.
00
$
590,000.
00
Discount Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
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 Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
PV of
Recurring
$0.00 $
(428,57
$
(408,16
$
(388,726
$
(370,216
$
(352,586

14MANAGING INFORMATION SYSTEM
Costs 1.43) 3.27) .92) .11) .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
Development of a proper CRM Implementation Plan
After carrying out proper feasibility of this CRM System, Marriot group needs to come
up with a formal plan which needs to be approved and documented for future needs (Williams et
al.2015). The plan has been designed in such a way that it contains proper schedule, resources,
scope and issues in this CRM system project. Apart from this, it is very important to keep track
of each and very phases of this SDLC model.
Monitoring Phase of SDLC Model
In this particular stage, an analysis carried out on the given information and condition
needed for design of this CRM System (Zhu, Feng and Choi 2017). This phase mainly comes up
with two parts that are collecting the needs of Marriot group and design of proper process
diagram.
Collection the needs of Marriot Group
All the required details of need of the Marriot group should align with the CRM system
so that the project becomes successful. Marriot group consider the structure of its management,
people, business and environmental and required system (Verma, Sharma and Sheth 2016).

15MANAGING INFORMATION SYSTEM
Marriot group requires a project team which is inclusive of IT specialists, manager and
commitment from different executives of this hotel. Marriot group needs to provide an idea
regarding the fact that how the given CRM System project can tackle with suppliers along with
proper risk management. IT team of Marriot group needs to have a proper kind of understanding
concerning requirements along with proper analysis (Evanoff 2016). The main goal of this CRM
system in Marriot group is keeping track of activities related to sales, delivering customer
experience, data analysis. Apart from this, it focuses on-premises and on-demand CRM based
solution.
Design the Process Diagram
The main task of CRM System is all about capture, storing, distribution of proper
information between the given system and its environment (Zervas, Proserpio and Byers 2017).
The process diagram of this CRM system can be data flow diagram which is considered as one
of the well-known approaches. It comes up with huge amount of data which is needed for proper
design of this CRM System.
Design phase
In this phase, an analysis is mainly carried out concerning ways by which the given
system can achieve its goals. In the beginning phases, Marriot group needs to integrate with the
present CRM System (Leung, Bai and Stahura 2015). There is large number of risk associated
with data confidentiality, so that CRM System can be easily installed and use in the given
desktop version. In the second phase of this CRM System project, a proper kind of graphical
design of this System (Deraman et al. 2017). Most common kind of GUI (Graphical User
Interface) and secondly ERD (Entity Relationship Diagram). The IT specialist at this Marriot

16MANAGING INFORMATION SYSTEM
group needs to discuss with the sales department so that they can have a proper understanding
concerning functional needs.
Stage of Developing of CRM System
In this phase, all the required details of documents of this system have been designed in
this particular stage. In this stage, there are some key activities like database, codes and proper
infrastructure for it (Molina-Azorín et al. 2015). It mainly comes up with four stages that are
internal development, outsourcing, application services providers and lastly acquisition. Internal
development of System comes up with high amount of cost. It is suggested that the CRM system
needs to come up with trial version so that all the needs to Marriot group are met.
Stage of Testing CRM System
In this Stage, the main task or goal is all about eliminating the issues related to software
until and unless it is converted into proper business system (Fang, Ye and Law 2016). In this
phase, there is an assembly of various project parts like vulnerability, issues and compatibility
with the present staff of Marriot group.
Implementation Phase of CRM System
It can be defined as a stage which can convert all the given project parts to a given
operational system (Bontis, Janošević and Dženopoljac 2015). The main implementation phase is
all about formulation of documents, selection of suitable method and providing training to the
end User of CRM System. On every Wednesday of the Month, the staff of Marriot group needs
to be trained. With the help of proper design and features, the system can become easy for use
for the staff of Marriot (Mahal 2018). It mainly tends to highlight the fact that user of this
System will be divided into group that are training to Marriot Staff and System usage.

17MANAGING INFORMATION SYSTEM
Post Implementation Phase
There is need of proper System maintenance which is needed for monitoring, evaluation
and lastly modification of the System just after its implementation (Nyadzayo and Khajehzadeh
2016). There is large number of activities in this Stage that is posted implementation which is
needed for guiding to large number of System User, understanding changes and last providing
support in present environment (Navimipour and Soltani 2016). The main task of project team at
this hotel needs to analyze the CRM System at Marriot hotel so that it can meet the objective and
mission of this Marriot group.
Project management, risk management and Change Management
Project Management
Project Management can be defined as the application of certain number of processes,
methods, skills along with experiences. It is mainly so that this CRM system project achieve its
objectives in Marriot group (Hassan et al. 2015). It emphasizes certain number of domains like
scope, cost, quality, human resources and lastly managing risk.

18MANAGING INFORMATION SYSTEM
Fig 3: Schedule of CRM System Implementation in Marriot Group
(Source: Created By Author )
Change Management
Change management can be defined as a systematic way of dealing with any kind of
transition or even changes in the goals of Marriot group. It is all about focusing on certain
number of process or even technologies (Gummesson 2017). The main goal of this change

19MANAGING INFORMATION SYSTEM
management is all about use of certain number of strategies which can affect the goal and help
people to adapt changes and help people to adapt these changes.
Risk Management
Risk management can be defined as the method of identifying certain number of process
along with analysis and acceptance of risk of uncertainty in this CRM System Project (Zerbino et
al.2018). Risk Management takes place when an investor or even fund manager can analyze and
understand any kind of loss. If there are inadequate risk management then it can easily create
huge number of effects for this Marriot Group.
Conclusion
The fact can be concluded from above pages of the report that Marriot International is
one of leading organization in hotel industry. Marriot comes up with award-winning programs
for its hotel loyalty programs. It tends to come up with rewards that provide foundation for the
organization Customer relationship. It comes up with more than 28 million members for Marriot
Rewards for its action which allows the organization to determine its customer value. It comes
up with customer value, focusing on markets and messages. It can easily capture customer and
analyze the travel behaviour of the customer and potential in business. Marriot rewards come up
with the largest base for different business travellers for any lodging organization. It can easily
provide proper revenue for each of its customers. In the year 2007, the members of Marriot
rewards aim to contribute 50 percent for Marriot lodging room nights. After joining the Marriot
reward programs, its members were doable for number of trips for Marriot hotel.

20MANAGING INFORMATION SYSTEM
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