Benefits, Design and Acquisition of Information Systems for Golden Fleece Hotel - Assignment Example

Business report on the benefits, design and acquisition of information systems for Golden Fleece Hotel Introduction Golden Fleece Hotel is a resort hotel located in South Yorkshire with 100 rooms. Its serves business people and pleasure travelers who are in need of more personalized hotel experience. The hotel is need of information systems to help upgrade its operations and management in order to improve room occupancy rates. This report provides problem analysis of Golden Fleece hotel providing recommendation for the required features in the system that the firm may be in need of. The report further provides benefits and limitations associated with implementation of information system and internet. The report in addition proposes an information system solution for Golden Fleece Hotel and how the firm can acquire, develop and implement. Problem analysis This entails requirements of a firm. Requirements definition involves a careful assessment of the needs that a system is to fulfil (Hallows, 2005). Thus, problem analysis ought to say why a system is needed based on current and foreseen conditions, which may be internal operations or external market (Beynon-Davies, 2002). Furthermore, problem analysis must say what system features will serve and satisfy this context and must say how the system is to be constructed. The drop in room occupancy rates at Golden Fleece are attributed to change in promotional campaigns, which initially gave favourable rates to travelers, affiliated with certain organizations. In spite this; the owner was not convinced that the promotions had been very successful since no formal data were maintained. Thus, the new system should be able to provide and maintain such data that can be used to track customers of the firm. The struggling economy and increased organizational use of technology was also seen as a reason behind the drop in room occupancy. Thus, the firm needs a system, which can help it focus more on pleasure travelers rather than business travelers. It is also noted that Golden Fleece’s use of information technology was insufficient. As a result, handling of reservation at the resort is done using a paper system, which is often characterized with many errors (Hallows, 2005). Thus, the new system ought to help the firm automate reservations by employment of electronic system that is less prone to errors in terms of bookings. Other areas of the hotel, which had problems, include operations, guest services and hotel staff (Beynon-Davies, 2002). From the case, it is clear that most operations were manual and time consuming. Most reservation involve the potential customer calling the reservation department, then manual preparation or searching for client card and manual checking for availability of a room on the said day and entering the customer’s name into the reservation binder and completion or updating of the client card (Ward and Peppard, 2002). The customer’s address and place of employment are verified and finally a confirmation number is given to the customer. The new system should allow automation of this process to allow the customer to book online and those calling to use shortest time possible to get a reservation. This will serve to cut the number of staff at the firm and hence reduce the cost of operation. Many guest services exist at the firm and tracking of the costs are done manually. A new system should be able to track costing of the services at the firm automatically (Beynon-Davies, 2002). This will lower the costs of tracking the costs and provide data on the most utilized guest services to allow their improvement and elimination of those services, which are not valued by the customers (Lucey, 2004). As identified most employees at the firm were computer literate even though they were average (Vasilecas, 2005). Thus, the system to be employed should be easy to use and should allow on job learning. Analytical tools In the case of Golden Fleece Hotel, we shall use case technique to identify the requirements of the system (Hallows, 2005). This will help us to describe how the system should interact with end user or another system to attain a specific business goal (Pries-Heje, Venable and Bunker, 2010). Benefits of information system (IS) and internet The main benefits of information systems include central access, easy backup, central distribution of information, easy record keeping, easy tax preparation and easy customer trait identification (Lucey, 2004). Information systems also act as arenas for competitive advantage and increased efficiency (Hallows, 2005). They also add value to products, increase accuracy and communication within firms and reduce labour requirements (Grembergen, 2002). Information systems also provide firms with avenues for making superior financial decisions and for controlling its operations (Beynon-Davies, 2002). They also increase safety and service provision within a firm (Hall, 2010). Limitations of IS and internet Employment of information system often leads to loss of the human element. Since IS are not able to present all kinds of information accurately human analysis is required in thick information which is rich in meaning and not quantifiable (Lucey, 2004). Information systems are also hard to develop and difficult to install (Pries-Heje, Venable and Bunker, 2010). These limitations associated with information systems can be avoided by listing the major goals of the firm, building support for the system with workers, creating formal training programs and emphasizing that face-to-face contact is important. Other limitations associated with IS are unemployment, lack of privacy, lack of job security and emergence of dominant culture (Lucey, 2004). Implementation of an IS often results in a streamlined business process which in most case does away with lower and middle level jobs. This has resulted in rise in unemployment rates (Hallows, 2005). With IS many privacy issues have arisen from cell phone signal interceptions to email hacking. This implies that a firm relying on IS can no longer be assured of the privacy of their information (Beynon-Davies, 2002). Industry experts believe that advent of internet has made job security a big issue since technology is now very dynamic. Thus to have job security one has to constantly learn new ways of carrying out his/her duties. Information technology has contributed to one culture dominating other weaker cultures. Proposed solution The proposed information solution for Golden Fleece Hotel is customer relationship management system (CRM). CRM has three parts of application architecture. They include operational, analytical and cooperation. The operational part helps in automation of enterprise marketing, sales force automation and a customer service and support (Hallows, 2005). CRM provides information about the business environment, keeps track of customer preferences, buying habits and demographics in addition to sales staff performance. It also automates some service requests, complaints, product returns and information requests (Beynon-Davies, 2002). The system also allows customers to perform their own service via a variety of communication channels such as email, fax and web. The CRM has an application, which allows automation of marketing (Lucey, 2004). Internet personalization tools on this application allow firms to track behaviour on a web site and allow tailoring of the contact experience or generation of cross selling opportunities based on this behaviour. Given this features, CRM will enable Golden Fleece Hotel to develop better communication channels. The system will allow the company to be able to deliver instant company wide access to customer histories. Thus, it will reduce time required to attend to a customer who needs to make a reservation by calling a reservation department of the firm (Hallows, 2005). CRM enables firms to realize that customer relationships exist at different levels including customer service and web presence (Lucey, 2004). This allows the firm to start understanding the need for sharing data that is available throughout the organization. As consequence, the CRM system will enable the employees of Golden Fleece Hotel to make informed decisions and follow up on the different levels (Grembergen, 2002). Furthermore, a firm that implements CRM is able to offer better customer service. This is because all data related to interaction with the customer are centralized (Grembergen, 2002). Thus by implementing CRM the customer service department of Golden Fleece Hotel will have all the information it needs at their disposal. Thus, all decisions made will be based on real time data and not via guesswork (Hallows, 2005). It will also allow customer service representatives to use push technology in leading the customer towards the information they need (Beynon-Davies, 2002). With such system, the customer is able to do most of this on their own since the CRM system is able to anticipate the need of the customer. This will greatly enhance the customer experience. Implementation of CRM system at Golden Fleece Hotel will also increase customer satisfaction. This is because the system makes the customer to feel more as part of the team rather than a subject for sales and marketing since the system anticipate the need of the customer (Lucey, 2004). Moreover, such firms are able to create detailed profiles such as customer preferences, which enable it to meet the needs of its customers (Beynon-Davies, 2002). Thus, the system will ensure that guest service provided are based on the available detailed profiles such as customer preferences, which will enable it to meet the needs of its customers. Complemented with products which exceed the expectations of customers; CRM system is able to increase customer satisfaction (Hallows, 2005). Therefore, customers will be delighted and this will greatly increase customer loyalty to the firm. The firm is also able to identify new selling opportunities once it implements a CRM (Grembergen, 2002). Thus, CRM enables firms to manage their sales leads, accounts, orders, and case management, which increases their revenue and customer satisfaction and reduces costs resulting from less administrative tracking time and greater turn around time. For the case of Golden Fleece Hotel, cost of tracking cost of guest services will be reduced once this system is implemented. CRM systems will also enhance the ability of Golden Fleece Hotel to retain its customers (Beynon-Davies, 2002). This is because the CRM system will help Golden Fleece Hotel to enchant its customers which will in turn increase customer loyalty who will keep on coming back to buy from the firm again and again hence resulting in increased customer retention (Ward and Peppard, 2002). The delighted customers will be turned from doubting clients to loyal advocates of the business resulting in more repeat business. CRM will also enhance development of innovative products and services (Hallows, 2005). This is because the system is a more personal approach, which leads to development and design of innovative and improved products and services (Grembergen, 2002). Such innovations will results in increased revenue for the Golden Fleece Hotel. Furthermore, CRM will enhance cross selling of Golden Fleece Hotel. By implementing an effective CRM, the selling of other products, which are directly or indirectly related to the main product offered by Golden Fleece Hotel, will be increased (Ward and Peppard, 2002). Thus, the system will enable the business to highlight and suggest enhancements and substitutes of the main products, which are desired by their customers. This will increase product lines for the Golden Fleece Hotel and enhance its profitability. The CRM will also enable Golden Fleece Hotel to increase its sells (Hallows, 2005). This is because the firm will be able to identify and anticipate the needs and desires of the customers in a better manner than businesses without the system (Ward and Peppard, 2002). This will result in increased sales since it will have an efficient CRM, which bring innovative and beneficial products into the market. Acquisition Golden Fleece Hotel should acquire the SAP’s CRM solution (Hallows, 2005). This will help it to address short-term imperatives for increasing decision making ability and reducing costs. It will also help Golden Fleece Hotel to achieve differentiated capabilities in order to compete effectively over the long term (Grembergen, 2002). The SAP’s CRM solution is appropriate since it has marketing resource and brand management, campaign management, segmentation and list management, real time offer management, loyalty management and e-marketing tools that can be able to address the current and future information system requirements for Golden Fleece Hotel (Beynon-Davies, 2002). The marketing resource and brand management functionality in SAP CRM will enable the Golden Fleece Hotel to gain financial and performance accountability. Campaign management functionality will allow Golden Fleece Hotel to target their audiences and then to connect with their target audience via sending relevant personalized messages through the right channels at the right times (Grembergen, 2002). Segment and list management functionality will allow Golden Fleece Hotel employees to directly import large external data files at high speed. It will also allow the firm to visualize customer data from multiple sources to attain complete view of their customers. Real time offer management will allow Golden Fleece Hotel to fully automate the entire lead life cycle process from generation of highly qualified leads and their prioritization to distributing them to the best-suited sales professional or partner (Grembergen, 2002). Loyalty management functionality will enable Golden Fleece Hotel to exceed sales, service and marketing expectations, which will greatly enhance the customer experience and increase customer retention. It will also foster development of a community of persons who serve as advocates for the business (Ward and Peppard, 2002). The SAP CRM provides an integrated customer loyalty platform which will allow Golden Fleece Hotel to plan, develop and manage customer loyalty programs and to reward and retain its high value customer. Thus by acquiring SAP CRM, Golden Fleece Hotel will attain several benefits (Clarke, 2001). First, Golden Fleece Hotel will be able to align its marketing resources to support the objectives of the firm. Second, Golden Fleece Hotel will be able to understand the returns on its marketing expenditure (Beynon-Davies, 2002). Third, Golden Fleece Hotel will be able to accelerate its marketing processes with increased visibility and control (Ward and Peppard, 2002). In addition, SAP CRM will enable Golden Fleece Hotel to drive customer demand using targeted marketing messages (Lucey, 2004). Furthermore, Golden Fleece Hotel will be able to identify and retain high value customers with customer loyalty programs. Finally, SAP CRM will enable Golden Fleece Hotel to establish a standard, streamlined marketing process, which has a central marketing platform. Development and implementation Golden Fleece Hotel should source for a firm to develop and install the SAP CRM system (Gelinas and Dull, 2009). The firm sourced should be able to offer expertise in SAP CRM implementation, consulting and development (Beynon-Davies, 2002). The firm should be charged with implementation and integration with existing software at the Golden Fleece Hotel (Ward and Peppard, 2002). In addition, the firm chosen should be able to customize the SAP CRM to fit the special needs of Golden Fleece Hotel (Lucey, 2004). Since most of Golden Fleece Hotel employees are not much experienced in computer use, the firm deployed should be able to offer the required training for end users, administrators and developers at the hotel (Hallows, 2005). The management should also be involved in sensitizing the employees on the benefits of using the new system to avoid cases where the implementation process could be opposed by employees (Grembergen, 2002). Conclusion and recommendations Golden Fleece Hotel currently faces many operational and management problems. The firm is not able to efficiently maintain and track customer data. The firm is also not able to effectively target its customers. In addition, Golden Fleece Hotel bookings are done manual by the reservation department. Costing of guest services at the firm is also costly. Thus, the firm is in need of a system that is able to alleviate these problems. We recommend adoption of SAP CRM solution, which will enable the firm to address these issues effectively. We recommend that the firm outsource for a firm to develop and implement the SAP CRM solution so that it is tailored to meet the special needs of the firm. Reference Beynon-Davies, P. 2002. Information systems: an introduction to informatics in organizations. London: Palgrave. Clarke, S. 2001. Information systems strategic management: an integrated approach. London: Routledge. Gelinas, U., and Dull, R. 2009. Accounting information systems, 8th Ed. London: Cengage Learning Grembergen, W. 2002. Information systems evaluation management. London: Idea Group Inc (IGI). Hall, J. 2010. Information technology auditing (with ACL CD-ROM), 3rd Ed. London: Cengage Learning. Hallows, J. 2005. Information systems project management: how to deliver function and value in information technology projects, 2nd Ed. New York: AMACOM Div American Mgmt Assn. Lucey, T. 2004. Management information systems, 9th Ed. London: Cengage Learning EMEA. Pries-Heje, J., Venable, J., and Bunker, D. 2010. Human Benefit Through the Diffusion of Information Systems Design Science Research: IFIP WG 8. 2/8. 6 International Working Conference, Perth, Australia, March 30 - April 1, 2010, Proceedings. New York: Springer. Vasilecas, O. 2005. Information systems development: advances in theory, practice, and education. New York: Springer. Ward, J., and Peppard, J. 2002. Strategic planning for information systems, 3rd Ed. 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