Implementation Of CRM System In Sydney Harbor Marriot Hotel

Internal and External Environment Analysis of Marriot Group

Implementation of CRM System in Sydney Harbor Marriot Hotel

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.

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.

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.

Importance of New CRM System

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, Janoševi? and Dženopoljac 2015). In last 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.

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.

Steps for Successful Implementation of CRM System

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 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.

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.

Benefits and Drawbacks of Other Methods

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.

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. 

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 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.

Project Management

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 4^th and 5^th 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
Total Benefit	$       590,000.00
Discount Rate Used	5.00%

Project Cost-Benefit Analysis
Analysis Variables:
Discount Rate Used	5.00%
Annual Benefits	$     590,000.00
Annual Operational Costs	$     450,000.00
One-Time Development Cost	$     500,000.00
				Year of Project
		0	1	2	3	4	5	TOTALS
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	$561,904.76	$535,147.39	$509,664.18	$485,394.46	$462,280.44
NPV of all BENEFITS		$0.00	$      561,904.76	$   1,097,052.15	$     1,606,716.34	$     2,092,110.80	$     2,554,391.24	$     2,554,391.24
One-Time COSTS		$     (500,000.00)
Recurring Costs		$0.00	$     (450,000.00)	$     (450,000.00)	$       (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	$     (428,571.43)	$     (408,163.27)	$       (388,726.92)	$       (370,216.11)	$       (352,586.77)
NPV of all COSTS		$     (500,000.00)	$     (928,571.43)	$  (1,336,734.69)	$    (1,725,461.61)	$    (2,095,677.73)	$    (2,448,264.50)	$    (2,448,264.50)
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.

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).  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.

Change Management

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.

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 group needs to discuss with the sales department so that they can have a proper understanding concerning functional needs.

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.

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.

It can be defined as a stage which can convert all the given project parts to a given operational system (Bontis, Janoševi? 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.

Risk Management

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 

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.

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 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 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.

Marriot International Inc

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