CRM System Proposal: Development for Park Hyatt Sydney Hotel CRM

This report proposes the development and implementation of a Customer Relationship Management (CRM) system for the Park Hyatt Sydney hotel. The proposal outlines a detailed plan, including an executive summary, internal and external analyses (PESTEL and SWOT), and the identification of problems and opportunities. It further details the seven steps of the Systems Development Life Cycle (SDLC), covering planning, design, development, testing, implementation, and post-implementation stages. The report also addresses project, change, and risk management aspects, including cost-benefit analysis. The student assignment, intended for a sponsor, aims to improve sales, customer relationships, and overall business performance by leveraging the CRM system's capabilities. The report discusses the background of Hyatt, its strengths, weaknesses, opportunities, and threats, while also considering political, economic, social, technological, legal, and environmental factors affecting the hotel's operations.

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,

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

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

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 9th best hotel for
working with by fortune magazine 2018.
Strength Weakness
 Properties like Strategic Location
 Strong brand name and recognition on
worldwide platform
 Loyal customer base
 This group comes with diverse
exposure like hotel management,
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.
Opportunity Threats

8MANAGING INFORMATION SYSTEM
 Hyatt group aims to provide
membership plans.
 It tends to provide assets light model
of business.
 It is one of the growing organization in
whole hotel industry.
 The organization focus on some of
health-conscious consumers.
 This particular group faces tough
competition from other brands like
Marriot International.
 It tends to encounter long term risk
from lodging options.
 Other factors like terrorism and
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

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 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

11MANAGING INFORMATION SYSTEM
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
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