MNG03218 - CRM System Development and Implementation Proposal

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This report presents a comprehensive proposal for developing and implementing a Customer Relationship Management (CRM) system for The Falls Montville hotel in Australia, utilizing the seven-step Software Development Life Cycle (SDLC) methodology. The proposal emphasizes improving customer service and streamlining processes to enhance sales and customer relationships. It includes an analysis of the hotel's internal and external environments using SWOT and Porter's Five Forces, identifying opportunities to leverage its scenic location and address weaknesses like high rates. The report details each phase of the SDLC, from planning and analysis to implementation and post-implementation, outlining system selection, design considerations, and testing procedures. Furthermore, it addresses project management aspects, including change and risk management strategies, and provides a project plan with activities, timelines, and resource allocation. The CRM system aims to manage customer data effectively, integrate with social media, and facilitate team communication, ultimately improving the hotel's competitive position and customer satisfaction. Desklib provides access to this and other solved assignments for students.
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Running head: MANAGEMENT OF INFORMATION SYSTEM
Letter to the sponsor
To,
The CEO
The Falls Montville
Australia
This is to bring into your kind consideration that from the last few years we are providing
excellent service to the customers and have also gained a positive image in the market. By
focusing on the achievement that we have received in the last few years, we have decided to
develop a CRM system for the Hotel. With the help of the CRM system, the hotel will be able
to improve its service with the customers much more by meeting the needs and objectives of
the organization. In order to complete the project, we need a budget of around $105,000. The
entire proposal for the project is attached below:
I am looking forward to hear from you,
Regards,
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New CRM System Project Development and Maintenance
Name of the Student
Name of the University
Author's note
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Executive Summary
The paper mainly focuses on the implementation of a CRM system for the Falls Montville
hotel using the seven different steps of SDLC methodology. It is identified from the paper
that the development of a CRM system helps in creating strong as well as an efficient
approach for maintaining as well as developing a proper relationship with the customers of
the hotel. It helps in providing every bit detail of the customer and thus it becomes quite easy
to track the customers. In order to develop the CRM system, SDLC methodology is used. The
paper illustrates the seven steps of the SDLC methodology quite effectively. Phased method
is mainly used for the implementation of the system whereas the ASP approach is mainly
used for designing the entire CRM system. The paper also undertakes external as well as
internal analysis of the business environment of the hotel with the help of both SWOT
analysis and Porter’s five forces. In addition to this proper focus is on the changes that are
required within the project and the risks that are associated with the project for resolving the
risk and challenges. Moreover, for managing the project, a project plan for the development
of the CRM system is generally provided that contains information about the project
activities, duration as well as resources that are assigned to the project.
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Table of Contents
1. Introduction............................................................................................................................5
2. Introduction of organizational context...................................................................................5
3. Discussion of the internal and external environment.............................................................6
4. Identification of the problem and opportunity......................................................................8
5. 7steps SDLC Model in Customer Relationship Management System...................................9
5.1 Planning phase...............................................................................................................10
5.2 Analysis phase................................................................................................................14
5.3 Design phase..................................................................................................................15
5.4 Development phase........................................................................................................15
5.5 Testing phase..................................................................................................................15
5.6 Implementation phase....................................................................................................16
5.7 Post implementation phase.............................................................................................17
6. Project management, change management and risk management.......................................17
6.1 Project management.......................................................................................................17
6.2 Change management......................................................................................................17
6.3 Risk management...........................................................................................................21
7. Conclusion............................................................................................................................23
References................................................................................................................................24
Appendices...............................................................................................................................28
Appendix 1: Information about the organization.................................................................28
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1. Introduction
The paper mainly reflects on the development of a CRM system for one of the hotels
named “The Falls Montville” in Australia by using the 7 steps of SDLC methodology. The
main aim of the report is to develop a CRM system that helps in managing customer data by
delivering some of the important actionable insights that are integrated with social media for
facilitating proper team communication. This report mainly reflects on the background
information of the hotel by illustrating the problem and discussing the importance of IS/IT.
The paper uses 7 steps of SDLC methodology in order to develop the CRM system.
Moreover, the paper also illustrates the concept of proper project management, change
management as well as risk management of the project.
2. Introduction of organizational context
The hotel “The Falls Montville” is 2km away from the picturesque Sunshine Coast
mountain village of Montville and only 350 km away from the Kondalilla National park. The
main mission of the hotel is to delight the customers every time by providing attentive
services. It is found that the Falls Montville has generally acquired high reputation as the
organization has committed to provide a high quality of services to the customers (Creative
2019). The hotel helps in providing a number of services including personal check-in,
assistance with the luggage, free cappuccinos, departure gift, complimentary dinner transfer
and many more. The hotel has six different intimate cottages that are generally present in the
rainforest. Moreover, the hotel helps in providing Spacious yet cosy services including
hardwood floors, double spas, private decks as well as luxurious country furnishing.
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3. Discussion of the internal and external environment
Analysis of the internal environment
In the hospitality industry, it is necessary that the hotels must enhance their
competitive advantages by avoiding their weaknesses. The SWOT analysis is mainly used as
one of the tools that are helping the management in understanding the strengths, weaknesses,
threats as well as opportunities that are provided by the hotel.
Strengths: The main strengths of the hotel “The Falls Montville” is its reputation in
the market. The quality services that is provided by the hotel to the customers has created an
image of the hotel in the market (Josiassen, Assaf and Cvelbar 2014). Furthermore, as the
hotel is very much near from the Picturesque Sunshine Coast mountain and only 350 km
from the National park of Kondalilla with verdant waterfalls, rainforest as well as a varied
number of walking trails. It is found that the scenic beauty of the place attracts customers and
increases the yearly revenue of the hotel.
Figure 1: SWOT Analysis
(Source: Created by Author)
Strengths
Reputation in the market
Scenic beauty
Weaknesses
High rates of hotel
Unfavourable tax
Threats
Cheaper facilities
Presence of civil unrest
Opportunitires
Alternative opportunities
present
Lower prices
SWOT
analysis
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Weaknesses: One of the major weaknesses is the high hotel rates. It is found that due
to the high rates the hotel is losing their customers. In addition to this unfavourable tax rate is
also considered as one of the important weakness of the organization. Some of the rooms of
the hotel generally attract a specific amount of money as a tax which are generally charged as
per the day.
Threats: It is found that there are a number of problems like alternative lodging like
Airbnb has generally posed enough threat to the hotel industry. In addition to this, cheaper as
well as robust facilities that are provided by the boutique alternatives are generally creating a
threat in the hotel industry (Trainor et al. 2014). Moreover, Civil unrest in the country is also
creating risk for dampening down the entire hotel industry both directly and indirectly.
Opportunities: Due to the scenic beauty and the presence of verdant waterfalls,
rainforest, as well as a varied number of walking trails, generally attracts a large number of
customers which generally can enhance the opportunities of the organization. During the
peak season, the hotels generally can gain profit due to both domestic as well as international
tourism (Khodakarami and Chan 2014). Globalization as well as the online ticketing and
booking option is also creating an important opportunity for the organization.
Analysis of the external environment
Porter's five force model is considered as one of the simple tools that is used for
understanding the competitiveness of the entire business environment in order to identify the
potential profitability from the strategies. The Porter's five force model in context to the hotel
is provided below:
Competition in the industry: The competition in the market is high due to the cost
of service differentiation as well as switching costs are quite low. In addition to this, it is
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found that as the business growth that is needed in the market id great then the rate at which
the entire industry is growing is quite high.
Potential of new entrants: The hotel industry is mainly characterized due to the high
capital cost. The new entrants need to target the market as well as the quality service that the
hotel is providing presently and the hotel are mainly run based on the product differentiation,
therefore, the new entrants need to spend a huge amount and therefore the chances of
potential new entrants in the industry is low (Reicher, Komaromi and Szeghegyi 2015).
Figure 2: Porter’s five forces
(Source: Created by Author)
Power of suppliers: The power of the suppliers for the hotel "The Falls Montville" is
low. It is found that the hotel industry is mainly subjected to the power of the trained staff,
labour as well as personnel that are associated with the industry. It is found that the hotel
industry is generally not subjected to the bargaining power of the suppliers but it generally
has a very much indirect cost
Power of buyers: As the concentration of the buyers is quite high than the various
market players such that the entire industry is mainly subjected to the high power of the
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buyers (Santouridis and Tsachtani 2015). It is identified that a certain group of the buyers
generally exercises power over the purchasing power of the hotel rooms when the bulk
number of hotels are generally present.
Threats of substitute products: The threat of the substitutes within the hotel industry
is quite low. It is identified that when the people are generally looking for cheaper
accommodation then they generally can opt to live in the motels, hostels as well as with their
relatives. The entire market is considered to be very much price sensitive in order to target
the audiences.
4. Identification of the problem and opportunity
Marketing generally involves targeting the business based on the activities of the
customers is quite necessary. Customers are generally considered as the forefront of the
organization within the entire hotel industry. Presently the organization is attracting the
customers due to the scenic beauty of the verdant waterfalls, rainforest as well as varied
number of walking trails however due to the rising competition, the organization is facing
difficulty in attracting customers and in order to resolve this issue, the organization has
decided to develop a CRM system for the organization.
Development of a CRM system will help the hotel in managing the interactions with
the customers as well as with the various potential customers (Sebjan, Bobek and Tominc
2014). It is identified that CRM will help the organizations in streamlining the processes as
well as helps in building proper customer relationship by enhancing the sales as well as by
improving the customer service.
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5. 7steps SDLC Model in Customer Relationship Management System
The hotel “Falls Montville" wants to develop a CRM system by using seven stages of
SDLC methodology. SDLC methodology is considered as one of the systematic approaches
that are useful in resolving the problems that the business is facing with the development of a
proper information system (Khlif and Jallouli 2014). The sales and marketing of the hotel
generally need a CRM system for maintaining an adequate relationship with the customers
that will further help in improving the business performance. The figure that is given below
helps in reflecting on the seven stages of SDLC methodology.
Figure 3: SDLC methodology
(Source: Trainor et al. 2016, PP.1207)
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5.1 Planning phase
Selection of system
In the planning phase, the most important step that is required to be taken is the
selection of the system. There are a number of mainstreams of the system within the market
including Siebel, SAP and more. CRM system helps in providing a number of applications in
different fields including operational, collaborative as well as the portal base. The CRM
system that is mainly present in the hotel industry is mainly helpful in combining the
important functions like the daily operations as well as determining the customer related
information as per the data warehouse (Zhang 2016). The CRM system that will be selected
for the hotel is mainly done by determining the goals and objectives of the hotel. The use
both of CRM system assists in enhancing customer satisfaction as well as customer service
by providing unpredictable sales growth.
Feasibility analysis
Economic feasibility is defined as one of the terms that is used for measuring the
expected cost saving by increasing the revenue as well as profit. The cost-benefit analysis is
mainly undertaken in order to reflect that the money that is invested in the development of the
CRM system generally helps in bringing some profit for the organization. The cost-benefit
analysis that is undertaken is reflected in the table below:
Project
Cost-
Benefit
Analysis
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Analysis
Variables:
Discount
Rate Used
10.00
%
Annual
Benefits
$
82,00
0.00
Annual
Operation
al Costs
$
20,20
0.00
One-Time
Developm
ent Cost
$
1,05,
000.0
0
Year of
Project
0 1 2 3 4 5 TOTA
LS
Economic
Benefit
$0.00 $
82,000.
00
$
82,000.
00
$
82,000.0
0
$
82,000.
00
$
82,000.
00
Discount
Rate
1.000
0
0.9091 0.8264 0.7513 0.6830 0.6209
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PV of
Benefits
$0.00 $74,545
.45
$67,768
.60
$61,607.
81
$56,007
.10
$50,91
5.55
NPV of all
BENEFIT
S
$0.00 $
74,545.
45
$
1,42,31
4.05
$
2,03,921
.86
$
2,59,92
8.97
$
3,10,84
4.52
$
3,10,8
44.52
One-Time
COSTS
$
(1,05,
000.0
0)
Recurring
Costs
$0.00 $
(20,200.
00)
$
(20,200.
00)
$
(20,200.
00)
$
(20,200
.00)
$
(20,200
.00)
Discount
Rate
1.000
0
0.9091 0.8264 0.7513 0.6830 0.6209
PV of
Recurring
Costs
$0.00 $
(18,363.
64)
$
(16,694.
21)
$
(15,176.
56)
$
(13,796
.87)
$
(12,542
.61)
NPV of all
COSTS
$
(1,05,
000.0
0)
$
(1,23,36
3.64)
$
(1,40,05
7.85)
$
(1,55,23
4.41)
$
(1,69,0
31.28)
$
(1,81,5
73.89)
$
(1,81,5
73.89)
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Overall
NPV
$
1,29,2
70.62
Overall
ROI
0.7119
In addition to this, technological feasibility is also needed to be checked in order to
make sure that the technology that is used for the development of the hardware and software
will generally helpful in meeting the needs of the information system development so that the
entire business can be operated effectively within the expected time. The hotel “Falls
Montville" already has enough hardware capacity that will help in achieving the equipment
requirement of the CRM system within the entire market.
Development of a project plan
After evaluation of project feasibility, it is quite necessary to develop a proper plan
for the project. The plan that is mainly developed mainly includes information regarding the
scope, schedule, resource as well as other types of issues that are associated with the
proposed project (ElKordy 2014). It helps in suggesting that the hotel generally invest more
than 3 months completing as well as launching the CRM system in order to improve the
customer service of the hotel.
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5.2 Analysis phase
The analysis phase mainly reflects on the condition as well as information that is
utilized for designing a proper system or application. In order to undertake the analysis, it is
quite necessary to gather proper business requirement as well as to create a proper process
diagram.
Gathering business requirement
The details, as well as resources that are required for meeting the need of the system
successfully, must be properly gathered. It is the responsibility of the organization to know
about the various needs as well and the requirements of the business properly while gathering
information and data (Kurawa and Garba 2014). The hotel “Falls Montville" must gather
information about the resources that are generally needed in order to develop the CRM
system properly. In addition to this, guidelines about the collaboration of the CRM system
with the suppliers and risk management must be done. Moreover, the functional requirements
of the project must be properly analyzed for reporting the needs and requirements of the
system successfully.
Create a process diagram
The setting up of proper process modelling for capturing, manipulating as well as
storing and distributing information between environment as well as system is necessary. The
hotel “Falls Montville" must consider the mainstream approaches of the CRM process
diagram quite successfully. The DFD is the one of the most significant approaches that
generally includes inputs, outputs as well as other data storages for establishing the system
successfully.
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5.3 Design phase
System design helps in describing the entire system and how the system will be able
to achieve the goals. It is very much necessary for the organization to get an integrated IT
infrastructure for supporting the entire IT system. As the risks that are related to the internet
as well as data confidentiality, it is quite important to develop a CRM system for allowing
system installation (Wei and Ma 2014). It is found that the entire system must be properly
forbidden for using it within the mobile devices for properly connecting it with the WIFI. The
second step that is needed to be followed for designing the entire system model which
generally helps in requesting a graphical representation of the entire design. The most
common method that generally has a graphical user representation of the design helps in
reflecting on the data model as well as entity relationship-based diagram (Kupper et al.
2014). It is quite necessary to design the documents properly for documenting the hardware
as well as software with proper software specifications which must be approved with the help
of the hotel executive.
5.4 Development phase
Development phase generally helps in formalizing detailed design documents into the
actual system from the proper design step. The primary activities that this particular stage is
generally helpful in developing the database, infrastructures as well as programs quite
successfully (Ruivo et al. 2014). It is found that in order to develop the CRM system, it is
quite necessary to develop application service provider approach. This approach to
development is mainly used as it helps in saving the cost of the initial internal infrastructure
layout by avoiding some of the common problems that occur within the hotel industry.
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5.5 Testing phase
Testing is considered as one of the essential steps that help in avoiding as well as
eliminating the various types of software problems before it is generally converted to the real
operating system. Testing mainly helps in involving assembling of all the sections of the
project such that the specific environment must be properly tested against the errors,
compatibility as well as vulnerability. It is found that there are four different categories of
application that is generally dependent on the patterns of the test case. It is quite necessary
for the project team of the hotel is to write the various test conditions-based details process
for performing the system testing. The hotel project team must properly review all the
important steps and must amend them with the vendor if any type of errors generally occurs.
5.6 Implementation phase
The implementation phase is considered as one of the procedures that is mainly
utilized for converting all the pieces of the project to an actual business operational system.
The main implementation-based activities that include the proper formulation of the detailed
documentation of the user as well as the selection of the implementation method as well as
giving proper facility of training to the end users.
Formulation of detailed user documentation
Formulation of proper user documentation is required as it generally needs an
explanation about the usage of the system, administration, security requirements as well as
different types of guidelines (Too and Weaver 2014). They must also include details about
the original literature that are helpful in training the new employees in the coming future.
Selection of the implementation method
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In order to develop the CRM system, it is quite necessary to use Phased method. This
method helps in allowing gradual implementation procedure within the hotel. It generally
helps in giving proper chance to the project team for fixing the problems before the entire
system is installed properly. This method of implementation is generally followed as it
generally requires less staff for installation and the problems that are mainly related to one
specific area can be fixed at the time of installation.
5.7 Post implementation phase
System maintenance generally helps in monitoring, evaluating as well as modifying
the entire operational system after the completion of the implementation phase. The main
primary activities which mainly include reviewing post-implementation, building proper
assistance for providing support to the users as well as performing the required changes and
giving proper supportive environment (Kerzner 2017). It is quite necessary for the hotel team
to properly examine the new CRM system properly by upgrading the entire system for
meeting the objectives and goals of the hotel. All the system related historical changes must
be properly documented in order to make the necessary improvements within the system in
the future.
6. Project management, change management and risk management
6.1 Project management
Project management is generally defined as the application of various types of skills
knowledge as well as activities for meeting the requirements as well as needs of the business.
It generally helps in managing cost, scope, time as well as the quality of the project. Project
plan generally helps in managing the project and the table that is given below reflects on the
plan that is generally made in order to manage the entire project effectively.
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6.2 Change management
Change management within a project generally refers to the changes that are generally
required within the mission, strategy as well as within the structure of the organization. The
organization must develop appropriate strategies for managing the risks that are mainly
associated with the project (Joslin and Muller 2015). The changes that are generally required
in order to develop the CRM system effectively must be included within the project. In
addition to this, the hotel must adopt proper change strategy in response to a number of
potential changes within the entire processes. The first and the most important step is creating
a proper vision for making the required changes (Hornstein 2015). People are considered as
the most important assets for determining the success as well as failures that are mainly
related with the project and thus it is quite necessary for the project manager to adopt
important strategies after the entire system is implemented so that the necessary changes
within the entire system is made.
WBS Task Name Duration Start Finish
0
Development of CRM system for Falls
Montville
100 days
Wed 23-01-
19
Tue 11-06-19
1 Initialization 8 days
Wed 23-01-
19
Fri 01-02-19
1.1 Project requirement analysis 2 days
Wed 23-01-
19
Thu 24-01-19
1.2 Resource accumulation 3 days Fri 25-01-19 Tue 29-01-19
1.3 Project charter documentation 2 days
Wed 30-01-
19
Thu 31-01-19
1.4 Project initiation meeting 1 day Fri 01-02-19 Fri 01-02-19
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M1 Project approval 0 days Fri 01-02-19 Fri 01-02-19
2 Planning 19 days
Mon 04-02-
19
Thu 28-02-
19
2.1 Project activities scheduling 3 days
Mon 04-02-
19
Wed 06-02-
19
2.2 Project resources division 2 days
Thu 07-02-
19
Fri 08-02-19
2.3 Project schedule development 4 days
Mon 11-02-
19
Thu 14-02-19
2.4 Documentation planning 5 days Fri 15-02-19 Thu 21-02-19
2.5 Project planning communication 2 days Fri 22-02-19
Mon 25-02-
19
2.6 Risk management planning 3 days
Tue 26-02-
19
Thu 28-02-19
M2 Getting approval 0 days
Thu 28-02-
19
Thu 28-02-19
3 Designing phase 13 days Fri 01-03-19 Tue 19-03-19
3.1 System requirement analysis 2 days Fri 01-03-19
Mon 04-03-
19
3.2 Proper platform selection 1 day
Tue 05-03-
19
Tue 05-03-19
3.3 Design outline 3 days
Wed 06-03-
19
Fri 08-03-19
3.4 Simulation testing 2 days Mon 11-03- Tue 12-03-19
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19
3.5 Design completion 5 days
Wed 13-03-
19
Tue 19-03-19
M3' Approval of design 0 days
Tue 19-03-
19
Tue 19-03-19
4 Development of system 23 days
Wed 20-03-
19
Fri 19-04-19
4.1 Design implications 1 day
Wed 20-03-
19
Wed 20-03-
19
4.2 Database immigration 3 days
Thu 21-03-
19
Mon 25-03-
19
4.3 Black box testing 2 days
Tue 26-03-
19
Wed 27-03-
19
4.4 Development of system interface 5 days
Thu 28-03-
19
Wed 03-04-
19
4.5 Prototype testing 2 days
Thu 04-04-
19
Fri 05-04-19
4.6 Testing of functional requirements 8 days
Mon 08-04-
19
Wed 17-04-
19
4.7 Beta testing 2 days
Thu 18-04-
19
Fri 19-04-19
M4 Entire development of the system 0 days Fri 19-04-19 Fri 19-04-19
5 System Deployment 14 days
Mon 22-04-
19
Thu 09-05-
19
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5.1 Deployment plan creation 3 days
Mon 22-04-
19
Wed 24-04-
19
5.2
Making modifications within the
system
4 days
Thu 25-04-
19
Tue 30-04-19
5.3 Compatibility testing 2 days
Wed 01-05-
19
Thu 02-05-19
5.4 System deployment 5 days Fri 03-05-19 Thu 09-05-19
M5 Functional testing 0 days
Thu 09-05-
19
Thu 09-05-19
6 Documentation and training 23 days Fri 10-05-19 Tue 11-06-19
6.1 Training manuals 2 days Fri 10-05-19
Mon 13-05-
19
6.2 Training program 3 days
Tue 14-05-
19
Thu 16-05-19
6.3 Staff training 10 days Fri 17-05-19 Thu 30-05-19
6.4 Distributing final reports 3 days Fri 31-05-19 Tue 04-06-19
6.5 Sign off the documents 1 day
Wed 05-06-
19
Wed 05-06-
19
6.6 Maintenance of the system 4 days
Thu 06-06-
19
Tue 11-06-19
M6 Project Closure 0 days
Tue 11-06-
19
Tue 11-06-19
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6.3 Risk management
The risks, as well as problems that are mainly related with the CRM system, must be
properly analyzed so that the risks can be resolved successfully by using proper risk
mitigation strategies. The table that is given below mainly reflects on the risks as well as on
the mitigation strategies that are used managing the risks successfully.
Risk Impact Probability Mitigation
Improper training High Medium Proper training
facilities must be
arranged for the
staffs of the hotel so
that they can be able
to work with the new
system.
Schedule slippage. High High Tracking the status
as well as the
progress of the
project is considered
important for
managing the
schedule of the
project.
Lack of budget High High Estimation of project
budget is necessary
for finishing the
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project on time.
Improper
management
Medium Medium Proper management
strategies must be
utilized for
managing the project
successfully.
7. Conclusion
It can be concluded from the entire paper that the development of the CRM system for
the hotel Falls Montville will be quite advantageous as the hotel will be able to provide
proper customer service to the organization. The paper discusses the seven steps of SDLC
methodology for developing the CRM system quite successfully. In addition to this proper
discussion on the change management, risk management as well as project management. It is
found that phased method of implementation is used for the development of the CRM system
as it generally requires less number staff for installation and the problems that are mainly
related to one specific area can be fixed at the time of installation. On the other hand, it is
found that the ASP approach is mainly used for designing the system.
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Appendices
Appendix 1: Information about the organization
The Falls Montville is 2kms from the picturesque Sunshine Coast mountain village of
Montville and only 350m from Kondalilla National Park - with its verdant rainforest,
waterfalls and varied walking trails. Falls Montville acquires high reputation as they are
committed to provide a high quality of services to the customers. The hotel helps in providing
a number of services including personal check-in, assistance with the luggage, free
cappuccinos, departure gift and complimentary dinner transfer.
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