The purpose of this research proposal is to establish a 7-Step Model for Systems Development Life Cycle or SDLC to implement the Operational CRM System within the Primus Hotel in Sydney. This entire implementation plan needs to be developed through an overall background of the organization presented to see whether the implementation is feasible enough. Next, the proposal would analyse the external and the internal environment within the organization developed through various methodologies (John 2017). This would help in identifying the provision of the CRM system in the organization based on the current state of relationship between the customers of the organization and the organization itself to help understand the methods that the organization should utilize in implementing the CRM system. The last and final leg of the proposal would have the managing of the project, the implementation of the new change included in the system and the assessment and management of the associated risk within the system implementation.
The Primus Hotel in Sydney is enlisted as one of the most popular hotels in midtown Sydney that is declared as a heritage hotel in Australia. It forms one of the most iconic attractions in the city of Sydney and this hotel stands as one of the most ancient hotels in the town. There are almost 172 rooms in the hotels which are endowed with all the amenities (Rapp and Ogilvie 2015). The amenities make up for an engaging and authentic experience for the guests. There are also Presidential Suites that are provided for the people from the cream if the society and the highest of the dignitaries. The accommodation offerings in the hotels are endowed with state of the art settings regarding the application of new technologies to make sure that the hotels are equipped with all the amenities that makes sure that the stay experience of the guests are one to remember. In addition to that, the hotel lives up to the expectation of the heritage status in the decoration of the hotel. The decoration of the hotel describes the roots of hotel from where it had begun.
Other than the decorations owing its credits to the ancient times when the hotel was first set up, the rooms are also divided into specific categories that describe the needs of the people. Not just the suites, but the rooms also have categories according to the availability of the amenities. The relationship between the customers and the hotel also needs to be extremely intimate so that the Primus Hotel lives up to the expectation of the guests. In the changing scenario of the world and the entire industry structure of the hotel businesses, it is identifiable that the hotels would need to implement feasible systems to enhance the quality of services and the relationship between the guests and the people in charge of the operations within the organizational system. The amenities of the hotels include 172 rooms and suites, complimentary wireless internet, room services available at any given hour, concierge, laundry and dry cleaning, business centre, valet parking, gymnasium and outdoor heated pools (Pedron et al. 2016). The hotel according to its external appearance stands an example of the fusion between the new age state of the art amenities with the hint of ancient times when the hotel was set up.
Before implementing a new system in the organizational set up, it is required that the organization identifies its external and internal environment in an elaborate way, so that it is easy to identify the places that the organization needs to improve within the organization (Rigo et al. 2016). The contemporary industry of the latest times calls for the hospitality industry to evolve with time as it is required that they acknowledge the competition within the other hotels as well in the market. To understand the internal and external environment of the Primus Hotels, it would be necessary to bring about the SWOT analysis, which analyses the strengths, weaknesses, opportunities and threats within the operations of the organizations and the Porter’s Five Forces analysis to describe the external forces that affect the operations of the organization (Kumar and Reinartz 2018). Therefore, following would be the SWOT and the Porter’s Five Forces rule utilized for the external and internal environment analysis for the Primus Hotels respectively:
Strengths: The Primus Hotels have been in the business since the ancient times when there were no such accommodations provided for the guests. The hotel is listed as one of the heritage sites in the city of Sydney and has an elongated history which makes it an intriguing stay for the guests. In addition to that, the organization merges the idea of age old decorations and state of the art technologically advanced amenities that include a number of people to opt for the Primus Hotels before looking for any other hotel (Gholami et al. 2018). Other than the accommodation system, the restaurants and the bars inside the hotel is also known for its state of the art amenities provided for the guests.
Weaknesses: The organization has been set up at the times when there was less to no provisions of luxurious hotels in Australia and it was one of a kind (Jaber and Simkin 2017). The Primus Hotels have evolved and developed ever since with changing times for providing the best quality of services to the guests within the hotels. However, it is not identified as the most technologically advanced hotels in Australia since the major focus remains on the amenities provided to the guests with an amalgamation of the old and the new eras. The operations within the Primus Hotels are not identified as one of the most technologically advanced ones.
Opportunities: The Primus Hotels can utilize the changing technological advancements since it has so far accepted the ever changing technologies when it comes to providing amenities to the guests within their stay. This can be seen through the ancient times decorations that is seen in the physical appearance of the hotel but the newer technologies adopted to form the technologically advanced provisions to the guests (Kumar and Reinartz 2018).
Threats: The ever changing world of hospitality industry is developing with the advancement of time and it has been reported that the organizations in this industry are happily accepting the changes in the industry (Cambra-Fierro et al. 2017). The competitive organizations in the same industry are always trying to implement newer technologies in handling the operations within the organizations to make sure that it stays ahead of all the organizations in the industry. This forms a threat for the Primus Hotels as well.
Competitive Rivalry: Primus Hotels are one of the biggest accommodative hotels in Sydney and thus it has a certain level of expectations of the customers who are looking for an exquisite experience during their stay or the time of accommodating in the hotels (González-Benito, Venturini and González-Benito 2017). The hospitality industry has been gaining the upper hand as an industry as a whole in adopting the technological means for handling the operations within the organization.
Power of Suppliers: The Primus Hotels belongs to the hospitality industry which primarily follows a B2B or Business to Business strategy in the operations. The suppliers for the industry are mostly the other businesses that supply the equipments to the hotel so that they can provide the same to the customers of the Primus Hotels (San-Martín, Jiménez and López-Catalán 2016). Therefore, the relationship between the suppliers and the hotel needs to be absolutely strong so that the luxurious amenities provided by the Primus Hotels are kept intact.
Power of Customers: The customers are the major consumers in the hospitality industry and it is and unchangeable factor in the case of the Primus Hotels as well. All the enhancements that the hotel makes are only inclined in making the operations of the hotel much better so that they can serve their customers in a better way (Dalla Pozza, Goetz and Sahut 2018). The amenities and technologies are thus required to be at a state of constant improvement to make further better utilization of the amenities for the customers, thus making the relationship between the customers and the organization much stronger.
Threat of New Entrants: The competitors that already exist within the hospitality industry are at a constant stage of implementing technologically advanced strategies that would make sure that the organization is a profitable one. The customers would be naturally attracted towards the hotel that would be more appealing as a value for money one providing all the advanced amenities (Bahri-Ammari and Soliman 2016). In the case of Primus Hotels, it has already been established long back and therefore, it needs to upgrade the systems with the changing time. Whereas, the new organizations in the industry has the opportunity to notice all the trials and errors performed by the other organizations and establish the organization by eradicating all the errors performed by the already existing ones. Therefore, there is a threat from the new entrants prevailing in the industry for the Primus Hotels.
Threat of Substitutions: When an organization in a specific industry fails to live up to the expectations of the customers, there is naturally a threat from the other organizations in the industry that might be the threat in the form of a new entrant (Ogilvie and Rapp 2015). Therefore, the Primus Hotels always have to be at a constant level in upgrading so that they are not at a threat of being replaced by the other organization in the industry.
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Problems in the Organization |
Opportunities for the Organization |
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· The hotel does not have a specialized system dedicated to manage the customer relationships within the organization. · The system of operations from a technical point of view is quite outdates since it was found that most of the systems still work under the ancillary functions of the Opera Systems (Al-Azzam and Khasawneh 2017). The main functions that the system follows are the check in time and check out time which does not highlight the storage of the customer database and the management of relationship between the customers and the organization. · The sales activities are found to be recorded only by the sales person in a manual way. It has been found by the researches that this system results to numerous human related errors and the huge load of customer data makes it impossible to backtrack the errors to solve them. · Customer retention has been a major factor for the Primus Hotels but the researchers have found that this is a major problem that hospitality industry faces in trying to retain the old customers rather than trying to be more open to the new customers (Srivastava, Chandra and Srivastava 2019). The amount of profit that Primus Hotels could have made with the entry of new customers is much higher than the hotels are gaining by retaining the old ones. · The relationship management system within the organization is not clearly defined and it has been described that the nature of proper customer relationship management system is much lower than that of its customers. This is valid for all the departments, starting from the sales department to the operational management. |
· It has been found that since the organization is regarded as a heritage site and has huge historical value, there is high customer demand found (Rahimi and Gunlu 2016). This gives an opportunity to the organization to increase the amount of sales and revenue by maintaining a good customer relationship to achieve the expectation of the customers. · The general trend also indicates that the business performances in the hotel has been using the technology system in the market are better than the ones that do not have. |
Table 1: Problems and Opportunities in Primus Hotels
(Source: Created by Author)
The Systems Development Life Cycle or SDLC Model is developed to have a systematic approach in solving a problem that has arrived in the business through 7 stages of solutions for the information systems to complement the implementation process (Law et al. 2018). The Primus Hotels is in the need of a Customer Relationship Management or CRM System. It needs to be implemented in the sales and marketing department to maintain a good customer relationship for helping the business performance to improve in a much better way than it is now. Following would be the SDLC Models for implementing the CRM system in the sales and marketing department for the Primus Hotels:
This would be the phase where the CRM system would be implemented within the operations of the Primus Hotels focusing on the sales and marketing department to establish a much improves customer relationship with the knowledge, skills, tools and techniques involved to meet the project requirements (Reid and Catterall 2015). This would begin with the following processes as below:
The processing of the new and improved CRM system with the organization focusing on the hospitality industry would include a strategy to be implemented as well for handling the changes through the new system (Girchenko, Ovsiannikova and Girchenko 2017).
Risks are an inevitable and unavoidable issue in the aggregation of company activities and implementation of the new CRM system in the Primus Hotels are also susceptible to the same risks (Almotairi 2016). All these risks are combined through the proactive and ongoing activities of the company and the management of all these risks should be accompanied by the identification, analysis, and response and monitoring done to control the risks (Reicher and Szeghegyi 2015). The probability of the risks should be identified as a part of the risk management plan and brain storming needs to be done to implement strategies to resolve the risks.
Conclusion
Therefore, in conclusion it can be said that the processes that have been utilized as the implementation plan of the new CRM system in the Primus Hotels has been feasibly described as the above report. The implementation plan has been established through a 7-Step Model for Systems Development Life Cycle or SDLC to implement the Operational CRM. This entire implementation plan has further been developed through an overall background of the organization presented to find the feasibility of the entire system within the current state of the organization. Next, the proposal had a complete analysis of the external and the internal environment within the organization developed through various methodologies like the SWOT and Porter’s Five Forces Model respectively. This has helped in identifying the provision of the CRM system in the organization based on the current state of relationship between the customers of the organization and the organization itself. This has further been utilized to understand the correct method to implement the CRM system within the sales and marketing department of the Primus Hotels. The last and final leg of the proposal has the project management for the implementation of the project, the implementation of the new change included in the system and the assessment and management of the associated risk within the system implementation.
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