MNG03218 - CRM System Development and Implementation Proposal

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.

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