System Development Life Cycle For CRM Implementation In Westpac Bank

Background of Westpac Bank

The following report mainly highlights about 7-step of SDLC which will help Westpac bank to develop a new CRM system (Kumar and Srivastava 2016). The report begins with background of Westpac bank after that internal and external environment has been provided in brief. It also highlights present relationship of bank with customers. After that importance of CRM system for Westpac group has been discussed in brief. The seven steps of SDLC model, a project team and next seven steps have been discussed in details (Girchenko, Ovsiannikova and Girchenko 2017). The coming pages of report mainly deal with internal and external environment of this organization. Apart from this, the report mainly tends to highlight certain number of activities along with process in each group (Sattar, Bajwa and Shafi 2015). It is mainly needed for analyzing some of the detail activities in the given process. The report tends to provide pros and cons for some of the alternative. It also tends to provide some kind of optimum solution for each of the given step. The last section of the report mainly deals with project management, change management and risk management in the activities (Corner and Hinton 2015). It is needed for having a proper kind of understanding concerning mitigating the involved risk, reducing overall cost and understanding the need.

Westpac group is considered to be as one of the oldest banks of Australia. It is considered to be as one of the largest banks of whole New Zealand. Westpac group tends to provide a wide range in banking and financial services in the whole market (Reicher, Komáromi and Szeghegyi 2015). The services are mainly inclusive of institutional banking and wealth management services. The main business of Westpac group tends to operate in wide range of portfolio brands. The consumer bank of Westpac group is mainly responsible for understanding overall sales and services for various kind of customers in Australia. It is mainly responsible for required sales and services in macro, small medium enterprises and commercial business in Australia. The division mainly tends to provide services for flow of cash and auto financial loans. Westpac in Australia tends to provide large number of services like insurance business and is responsible for manufacturing and distribution of investments (Fang 2017). BTGF tends to operate in wide range of fund management and financial services. Westpac institutional bank aims to provide a range of financial products and services for both commercial and corporate institutes and various governmental connection in Australia. WIB is mainly responsible for Group pacific banking operation which tends to provide huge range of services (Ahmed, Amroush and Maati 2019). Westpac New Zealand is mainly responsible for understanding sales and services related to banking services

Internal and external environment of Westpac

SWOT Analysis 

Westpac is one of the oldest banks in Australia which was found in the year 1817 completing 200 years in 2017 (Lipiäinen 2015). It is considered to be first bank of Australia and oldest organization among all the major banking firms.

Strength: Westpac is known to be 200-year-old brand which focuses on operation with some core-markets in both Australia and New Zealand more than 13 million customers (Khan et al. 2016). It is considered to be as one the Big four player in Australia who comes up with assets of 852 billion dollars.

Weakness: Westpac bank is embroiled in various kind of legal issues and problems. This particular banking organization comes with poor environmental record for its employees.

Opportunity: There is huge number of developments in the banking industry which has been found in the last few years (Belias et al. 2017). Westpac is focusing on kind of time on which whole thing can be depended. It emphasizes some of the underlying technology which will make sure of the fact that the whole thing is nimble and competitive.

Threats: It focuses on introduction of bank for understanding its effect on stakeholders. Westpac group focus customer centric which can rise a fintech of threat for understanding the present banking players (Hosseini, Hosseini and Meymand 2016). Also, Westpac focus on some of the increase of digital technologies implementation which will ultimately result in various kind of cyber security threats.

Pestle Analysis 

The headquarters of Westpac is located in Sydney which tends to provide large number of portfolios for both banking and financial services (Santouridis and Tsachtani 2015). Westpac group tends to employ more than 35,096 employees in the year 2017.

Political: There is certain number of rules and regulation which tends to have some direct effect on the industry. Australian Parliament focuses on certain number of things like banks with coming up with more than 100 billion dollars (Dakhare et al. 2018). Westpac is considered to be as one five Australian Banks which tends to fall under this rule.

Social: There has been increasing ageing and culture diversity for various kind of consumers. It is mainly done so that they can require particular products and services (Aljohani and Qureshi 2016). There has been growing demand for affordable services and housing.

Technological: Westpac bank tends to offer huge number of services and products for its customers (Pinciroli et al. 2017). It merely tends to highlight various kind of transformation in the services provided by it. Digitization is all about providing large number of services and improving its efficiency.

Importance of CRM for Westpac Group

Legal: It focuses on implementation of some kind of regulation by certain number of authorities which has ultimately led to various kind of challenges that can affect the business (Roy, Dasgupta and Chaki 2016). Westpac group focus on implementing certain of policies which will increase scrutiny of various financial borrowers.  

Environmental: There is large number of environmental criticisms which focus on certain number of changes in the current business practices (Karim, Saba and Albuolayan 2017). Westpac group should invest in certain number projects that will result in climate change-based solution.

Economical: The stable Australian and global economy tends to outlook the whole thing in the year 2018 (Nazir and Nazir 2018). In the coming year, there is possibility of Chinese investment which drives up the Australian property prices.  

Marketing generally involves some of the target business and its segment which focuses on customers related activities. Customers are considered to be forefront of any organization within this banking industry (Yadav and Kumar 2016). Westpac group is considered to be as one of oldest bank of Australia. This particular banking domain focus on proper management of customer relationship in some of the banks. So, as a result, the management tends to require customer management system which is in demand and can easily make changes in the current marketing strategy.

Apart from this, there is another kind of issue which is encountered in Westpac Bank is that it does not have a specialized system for managing their customers. CRM mainly tends to operate on Opera System for its operation in Banking domain (Karim et al. 2016). Apart from, there is certain number of functions related to storage of customer information which is not highlighted. All the activities related sales are merely recorded by various salesperson in the given document format (Alshamrani and Bahattab 2015). As per various research, there is large number of odd selling of goods for understanding their customers for 50% and 15% for new customers. Westpac bank can improve their overall profit by 85% by increasing customer retention by 5% only. There are other kinds of competitors in the market which focuses on customer relationship management system. The most suitable customer relationship management focus on managerial models for increasing their sales and marketing representative (Sattar, Bajwa and Shafi 2015). It can be organized on a daily basis along with improving the overall business performance. It can also bring huge number of benefits like tracking down of sales and assigning each representative and planning of the given strategy.

7 Steps of SDLC Model and Project Team

System development life cycle can be defined as a systematic approach which is needed for solving various kind of issues. It mainly focuses on development of various kind of information system solution (Rob 2015). It focuses on seven stages for complement information system. It focuses on understanding the need of customer relationship management system which is needed for maintaining healthy relationship with customer. It is all about improving the overall business performance.

There is mainly four streams of CRM system in the present market. CRM comes up with large number of applications like operational, collaboration, portal base and lastly analytical.  CRM system in banking industry comes up with two main functions like dealing with some of the daily operations and understanding the customer’s information (Kumar and Yadav 2017). The whole things mainly tend to occur as a result of data warehouse. CRM tends to a key role in the present business activities like delivery of product and related services. Analytical CRM is considered to be a part of overall customer demand. It mainly tends to work as a result of input data and providing list of strategy for input data along with suggestion.  

Understanding Project feasibility  

Economic feasibility is all about a proper kind of understanding concerning cost-saving, profits and increase in overall revenue (Jindal 2016). It mainly tends to focus on certain number of benefits like design, development and operation of the given system. It is considered to be an important factor for the launch of new information system. There is large number of numbers of organization around the globe like Westpac which focus on cost-benefit analysis of two major components like cost and benefit (Shiang et al. 2016). In the below table the cost-benefit analysis of the given CRM system has been provided.

Cost-Benefit Analysis for implementing CRM in Westpac group
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 Project Plan

After understanding the feasibility of this CRM project, a plan has been provided which is formal and certain number of documents have been approved. This particular plan requires proper schedule and scope of given resources (Vohra 2017). The complete plan needs to be properly scheduled, scope, resources and various kind of resources. It is expected that Westpac bank may require three months for the launch of system (Svensson, 2016). Apart from this, it is very much important to update a large number of things in the development phase of SDLC.

The analysis phase mainly focuses on gathering large number of information and condition which is needed for design of system and its application (Kerzner and Kerzner 2017). There is mainly two kinds of activities like collecting business needs and focus on process diagram.

Activities and Pros and Cons for Each Group

Gathering requirement for Business

There are large number details which are needed for meeting the present business needs and its success. The analysis of Westpac bank is considered to be an important factor in this particular stage (Ahmed, Amroush and Maati 2019). The given organization needs to have proper understanding concerning people, its business and current system. The top-level management of Westpac bank needs to have an understanding concerning sales manager and members of this bank. The bank also aims to provide some kind of guideline on the method of adopting CRM for suppliers and risk management (Lipiäinen 2015). The information technology team members need to have an understanding concerning functional needs for the new IT. The top-level management also tends to have an idea concerning various kind of details.

Creating Process diagram

The main focus of this process is all about representation, capture, store and lastly manipulation and lastly distribution of information (Khan et al. 2016). It is mainly noticed between the given CRM and system and its environment.

System design phase mainly tends to highlight how the system can easily achieve its desired goals. Firstly, the required infrastructure of Information technology will be designed. The given organization needs to have an integrated IT infrastructure for supporting the IT system. As there is risk in internet security along with confidentiality, CRM system can be implemented in the desktop (Belias et al. 2017). This particular system is forbidden for use by any kind of mobile devices by establishing connection to WIFL. The second step is all about design of system model which provides a graphical representation.

In this phase, the detail of design documents is provided for actual system in the given design step. The main function is all about development of certain number of activities in IT infrastructure, database and lastly various kind of programs. There are mainly four kinds of approaches which are used that are internal development, application service providers, outsourcing and acquisition (Hosseini, Hosseini and Meymand 2016). The bank committee is very much committed to comparing each of the given solutions with optimum one. Internal development mainly emphasizes on high cost in the given timeframe and outsourcing in the risk in security and control systems.

Testing is considered to be an important step for both avoiding and elimination of various kind of software issues until and unless it is compared with real business operation. In the testing phase, there is assembly of various project section for understanding the environment for system vulnerability, errors and its compatibility (Santouridis and Tsachtani 2015). It mainly helps in control of a given system quantity along with verifying a given system. It is mainly needed for having an understanding of defining the earlier steps.

Project Management, Change Management and Risk Management

Implementation phase is all about method of making changes in the given project parts into actual given business system (Dakhare et al. 2018). The main implementation activities are all about formulating user’s documents, selecting its implementation method and lastly providing training to the end users.

Formulating Detail Documents for Users

By the help of formulating users, various kind of documents providing usage of system, administration, security needs along with guidelines about emergency handling (Aljohani and Qureshi 2016). It also tends to provide training to new kind of employees shortly.

Selection of Implementation Method

There are mainly four steps of implementation in this particular step that are Plunge, parallel, phased and pilot (Pinciroli et al. 2017). With the help of analysis, it can be found that, all the given four steps come up with pros and cons. Plunge method is not all about recommendation for use as it is defined as the direct method of conversion for both CRM system and high level of risk.

End-User Training

CRM system is used by large number of users so that they can be trained properly. With the help of proper design and feature help the developed system is ready to use. It mainly highlights the point that the given system can be divided into various groups (Roy, Dasgupta and Chaki 2016). All the required sales and marketing staff and IT department tend to come up with basic usage for system. Sales manager and head of the department of IT staff which is needed for half-day training to the staff members

Proper maintenance of system mainly emphasizes on proper monitoring, evaluation and lastly any kind of changes in the operating system after this process. The main activities encountered in post-implementation phase is all about building assistance, performing different kind of changes and providing support (Karim, Saba and Albuolayan 2017). Westpac team should analyze the CRM system after each analyzing every goal in the given system. Both the sales and marketing staff members need to have an understanding concerning responsibility for ensuring data input.

Project Management 

Project Management can be defined as the application of certain kills, tools and various kind of techniques in the project for understanding project needs. It mainly focuses on proper management in the given scope, quality, time, human resource and aspects of procurement (Nazir and Nazir 2018). Firstly, there is need of developing a Project Management Plan. Stakeholders mainly tend to influence a different kind of process in the project.

Cost-Benefit Analysis for Implementing CRM

CRM project at Westpac Bank Project Milestone

Milestone	Competition Date	Stakeholder
Defining the business requirements	5th  June 2018	Project manager and CEO of Westpac group
Accessing CRM system project feasibility	20th June 2018	Project Manager
Design of IT infrastructure	1 July 2018	Project Manager
Design of CRM model	1 July 2018	Project Manager
Selecting vendor of CRM system	30 July 2018	Project Manager
Planning a Training Schedule for the employees of Westpac	20 Aug 2018	Project Manager and head of sales department of Westpac Bank
Maintenance	30 Aug 2018	Project manager

Change Management is all about defining various kind of changes in the organization like mission, strategy and organization structure. Westpac bank needs to come up with strategy which is needed for reducing the involved risk and cost of any kind of change (Yadav and Kumar 2016). At the time of CRM system, some kind of changes can take place in project team core members. Westpac needs to address some kind of strategy which can easily various changes in the given process.

Risk is defined as uncertain occurrence of given event or condition which will affect the overall project objectives. Risk management can be defined as aggregation of the organization activities which is proactive and identification, analysis and lastly control of given risk (Karim et al. 2016). Identification of the given risk is all about controlling large number of risk which can be avoided or mitigated. It mainly ensures the fact the given project is complete in more successful way.

Risk Details	Description	Risk Score	Strategy for risk mitigation	Risk Owner
Corruption of the input data	v Schedule delay v May not be able to restore data	10	v Preparing a backup plan v Management through cyberSecurity	Vendor of CRM and Project Manager
Inaccurate cost budget	v  Any kind of over budget in this project. v Project may have been suspended for disagreeing to cost (Alshamrani and Bahattab 2015).	6	v Estimating the reserve fund for this project. v Lesson gained from the previous project.	Project Manager
Large number of defects found in the testing than expected	v Schedule delay in the project v Tackling any kind of over budget in the system.	6	v Both project managers and team members needs to follow the requirement in strict way. v Strict evaluation of risk in each of the step.	Vendor of CRM and Project manager

Table 1: Risk register and Response Strategy

(Source : Created by Author)

Conclusion 

From the above pages of the report, it can be easily concluded that this report is all about implementation of CRM in Westpac Bank. The implementation of this system can be done by following seven steps of SDLC model. In the above pages of the report, the background of Westpac bank along with internal and external environment has been discussed in details. In the beginning phase of the project, Westpac bank should focus on selecting system through economical and technical evaluation. After analyzing various approaches, it can be stated that Westpac group should follow ASP approach. Testing result is all about providing a chance to Westpac bank for making correction in the system. The report mainly ends with a discussion note on change management, project management and lastly risk management so that CRM is successful. 

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