Information System Model for Managing Information Technology Resources in Hospitality Industries - Example

Information System Model for Managing Information Technology Resources in Hospitality Industries Executive Summary New technology and marketing strategies have forced Mr. Colonel Kin, the managing director of Highway hotel, to upgrade it. He has decided to assimilate a Property Management System into the traditional systems of operation. It is for this reason that this report has been prepared so as to delve into the E-commerce, Lodging Touch Property Management and the paragon systems. Equally, this study will look into these systems and compare them in terms of their general importance to the hospitality industry and their ease in application. Assimilating E-commerce into the hospitality industry means that, the consumers, employees and other organizations are able to communicate to each other on a regular basis hence easing transfer of data and information from one party to the other. It is equally important to note that assimilating the new Property Management System will not be easy since the traditional system that is already in place ought not to be interfered with. Table of Context……………………………………………………………………………………………..2 1. Introduction………………………………………………………………………………………..3 1.1 Background information……………………………………………………………3 1.2 Authorization……………………………………………………………………………..3 1.3 Report target………………………………………………………………………………3 1.4 To whom it is addressed…………………………………………………………….3 1.5 Scope…………………………………………………………………………………………..3 2. Finding………………………………………………………………………………………………….4 2.1 E-Commerce……………………………………………………………………………….5 2.2 Business application…………………………………………………………………..6 2.3 Impacts……………………………………………………………………………………….6 2.4 Risks…………………………………………………………………………………………….8 2.5 Brand Management & Marketing……………………………………………..9 3. Analysis…………………………………………………………………………………………………..9 3.1 Property Management Systems…………………………………………………9 3.2 Costs………………………………………………….………………………………………11 4. Conclusion……………………………………………………………………………………………..11 5. Recommendation & expectations…………………………………………………………12 6. Reference……………………………………………………………………………………………….14 CHAPTER ONE INTRODUCTION Relevant background information Wondertech Organization has been contacted by Mr. Kin to carry out a research regarding Property Management Systems and come up with the most suitable one that is efficient, user friendly and more economical. Authorization This has been authorized by Mr. Colonel Kin, the Managing Director of Highway Hotel. Report target This report mainly targets at recommending the best Property Management System and at the same time giving expectations from the proposed system. To whom it is addressed Colonel Kin, the Managing Director of Highway Hotel Scope Findings E-Commerce Impacts of E-commerce Risks involved in E-commerce Competitive Advantages of E-commerce Costs Brand Management & Marketing Business Application Analysis of the Property Management Systems/comparison of the PMS The chief objective of this study is to look into the E-commerce, Lodging Touch Property Management and the paragon systems, their involvement in; rapid deliverance in Information Technology service, value of the service, Information Technology Resource management. Equally, this study will look into these systems and compare them in terms of their general importance to the hospitality industry and their ease in application. This research discusses management and information systems in the hospitality industry particularly the ones that are being implemented by a variety of hospitality industries globally. Mission Statement We will provide superior services in a positive working atmosphere to make our guests feel at home. We will offer maximum satisfaction to our guests by delivering exceptional quality services. By continually striving to surpass expectations of our guests, we will engender the results required in satisfying our guests, staff as well as investors and sustain our individual and corporate growth. CHAPTER TWO FINDINGS Information systems are a very vital feature of management in the hospitality industry; nonetheless they are one of management's prime tests. The test comes in terms of assimilating them into the already existing ones. This will bring a lot of change into the industry. It is vital to note that regardless of the importance of the changes brought, integration of the new systems without disturbing customer service often requires a very careful balancing act. This is because usual processes have to carry on at the same time as the new ones are being integrated (Shoemaker 2008, 12-15). An effective system is one that is particularly easy to use and put into practice. The hotel manager must choose something that is going to do the basics and one that everyone is going to be aware of completely hence use it without any difficulties. Once that is achieved, then the end product will without doubt be successful in terms of service provision and help keep that consistency level so as to be in line with other competitors in the hospitality industry (Beckman 2008, pg 20). The hospitality industry has to some extent been reluctant in assimilating useful technology into their systems. According to Beckman (2008) only 27 percent believed that there are beneficial features to taking on complicated technology. As of now, most hotels take in technology policy as a piece of their company's general business preparation. Hospitality business consists first and foremost of exchanges that occur during the processing of dealings. Therefore, hospitality industries engage in the practice of commerce since it involves business. According to Tesone (2006), commerce ‘‘is a broad term that is used to describe the activities of businesses or commercial enterprises.” And for the specific purpose of hospitality industry the commerce has to be electronic. Therefore, the electronic commerce that will be created will be between the guests and the hospitality industry operators. This will be purely electronic communication (Siguaw 2006). E-Commerce E-Commerce mainly involves four levels. These are; Business to Consumer: these are transactions involving consumers purchasing and exchanging goods or services online from a certain business entity. Business to Business: they are mainly transactions involving business units purchasing goods or services online. A good example is that of a travel agent to hotel. Business to Employee: this level involves provision of products and services to employees online. Consumer to Consumer: these are mainly transactions involving two or more consumers (Robles 2005). Business Application A business application of E-commerce in the hospitality industry is in lodging. This is a Business to Customer transaction for purposes of online reservations. This will include several services such as; viewing of hotel amenities and services, and videos for viewing of internal and external surroundings of the hotel. This has created one of the information system products that are available to hotel operators (Robles 2005, pg 1542). Positive impacts of E-Commerce E-Commerce has positive impact which is advantageous in that; The flow of work is computerized. This makes it easier to access whatever information one requires without having to disorganize other files. Similarly, the quality of information that one will get from this system is much organised and straight to the point. There is a well-organised business interaction between the parties involved be it business to employees, other businesses or consumers; or consumers to business. The customer service is very efficient. This may be achieved in the course the communication between the hotel management and the guests. E-commerce requires a lesser amount of time as far as communication is concerned. It is so because one will only be required to post or open an email for purposes of communication where there is very minimal consumption of time. This particular system is neither bound by venue or time. This is enhanced by several factors ranging from the mode of communication to advertising. Since communication is online via emails, one will not be required to be at the same venue as the person on the opposite side. Similarly, once an email is posted, the respondent does not need to respondent immediately since there is a guarantee that the other person will get a response. There is regular and fast updating of data. Regular and fast updating of data is enabled by the online transactions. The fact that E-commerce is not venue-bound enables updating of data regardless of the time and the setting. The information is passed online. Examples are that of reports, invoices among other transactions (Robles 2005, pg, 1543). Negative impacts of E-Commerce Equally, E-Commerce has negative impacts, which are; When it comes to recognizing the major spirited benefits, there are several difficulties experienced. Transfer of funds in order to reveal the competitive benefit forces is extremely hard. Universal expansion of a single hospitality company is usually difficult. The major factors that contribute to this are mainly cultural. The diverse nature of these cultural values contributes to this. It becomes completely difficult for the hospitality industry operators to understand the customer evolution. There are new customer needs that are surfacing. These needs range from physical to emotional needs. Mapping Changing Technology. This situation whereby an hotelier is supposed to go with the technology of each customer’s requirements is very hard. Coming up with a sensible business plan is what should be in the hotelier’s mind rather than an exaggerated one. Putting together both online and offline activities may end up being a very cumbersome task. Their alignment so that they do not tamper with each other is difficult. These activities range from advertising via branding to guest services and interaction (Douglass 1991, pg 34). Risks involved in E-commerce The assimilation of PMS means that there is regular online communication and online transactions carried out between the business and the consumers all over the world. This can create a very good breeding environment for cybercrime such as hacking. Security concerns may occur where the software tends to create errors leading to malfunctioning of the entire system or exposure of private information regarding the business. In case of errors occurring, very large amount of money will be used to correct that. Similarly, a single person within the business may decide to mess up the whole system. This will be very easy since all the information regarding the whole system is in the fingertips. Competitive Advantages of E-commerce The strengths of E-commerce mainly lie in its universality. If the consumer needs are met regardless of the location of the customer, then a competitive advantage will be achieved. This will be effectively achieved if there are better services at a lower cost and more options provided for the consumer to select (Douglass 1991, 30). Brand Management & Marketing It is imperative to note that marketing a hotel that has adopted E-commerce will have to consider several areas. These are; Much more investment in regard to monetary allocation. Physical and emotional needs of the consumer. The ever changing cultural values across the globe. Mapping Changing Technology. Similarly, its management will call for; Coming up with a sensible business plan (Siguaw 2006 pg 10-14). CHAPTER THREE ANALYSIS Property Management Systems Analysis and comparison of Paragon AS/400 Front Office System and Lodging Touch System. The Paragon AS/400 Front Office System Normally, setting up a guest's stay takes into account different chores. These range from management of accommodations, aggressive pricing and marketing, forecasting to putting into practice of the reporting controls. This kind of system is elastic in nature so that the information is provides helps the hotel operator to achieve the ideal standards. For all information, it provides, there will be a feedback in order to assess the monetary impact and value. To be precise, this system can deal with the whole hotel system. It can also be incorporated with, Central Reservations, complementary products and Paragon Back Office (Siguaw & Enz 2002, pg 15-18). There are advantages that a hotel manager will get from the Paragon system, and these include; The return on rooms is maximized due to the flexible nature of this system so that rate configuration provided is flexible. In addition, the use of rooms is completely taken full advantage of. There is better service offered to the consumers. Similarly, information on services such as adverts is done online so that one can access both the internal and the external environs of the hotel from anywhere. The internal operations are more efficient. Paragon system affords trouble-free proviso effort. Similarly, this system ensures that there is accessibility by room type, total hotel and group. This system ensures that there is provision of confirmation letters and pre-printed registration cards. More information regarding customers/guests can be taken in the course of hotel field configuration fields. There is elasticity in terms of package configurations. There are different package configurations so that one picks that which he deems favorable to him or her. Paragon system gives one better management of financial data. This in turn promotes honesty in the company. Equally, this system ensures that there is maintenance of wait lists (Douglass 1991). Lodging Touch Property Management System This system consists of chief features that will simultaneously meet the needs of the hotel industry and the customers all over the world. These range from; accounts receivable, yield management, group sales, travel agencies, and guest history. Daily activities are modernized, data exchange is boundless and productivity is maximized. This makes it easier for hospitality industry operators to look for and get guest information through a range of means from the name, address, and confirmation numbers, among other means. (Alo, U.R. Ugah, J.O. & Igwe J.S 2009). Cost The Paragon AS/400 Front Office System costs around 15,000 US D for a new one, while a used one may go for 9,000 US D. For the lodging touch property management system the price ranges from 2,000 US D to 10,000 US D. This system is updated on an annual basis. (http://www.blog.mania_intelligence.com) CHAPTER FOUR CONCLUSION In conclusion, it is imperative to note that in this modern world, it is impossible to disregard the technology wave that has taken over. Almost everything ranging from the simplest to the hardest task has embraced technology. The hotel industry can therefore not afford to be an exception. Electronic commerce has far more advantages than disadvantages; hence the need to assimilate it into the hospitality industry cannot be stressed more. Having embraced it, then several goals have to be set. One notes that a lot of input is required to achieve the targeted level. A hotel manager aiming to achieve global standards should always be up to date with any emerging issues regarding consumer needs. Similarly, assimilating these or one of these systems will be like building a ship that is already at sea since there are other measures that have been in place since the hotel is already running. Integrating the new ideas without interrupting the old ones will need a lot of care. In addition to that, of the two systems, there is little or no doubt at all that the Paragon AS/400 Front Office System is the better of the two systems. Its advantages completely outweigh the disadvantages if at all there are any. Its flexibility is its biggest advantage over the Lodging Touch Property Management System bearing in mind the diverse cultural values across the world. In addition, it is far much simpler in terms of application with the results having a greater effect. In other words it is cost effective. CHAPTER FIVE RECOMMENDATIONS AND EXPECTATIONS The first recommendation is that the hotel manager is that sets some target before choosing the system that is preferable. This will be easier in terms of monetary budget, psychological preparedness and the company’s expectations. Having done that, then the company should put the necessary measures in place to ensure that the workflow should not be interrupted with the assimilation of the new systems into the existing ones. This might be achieved through educating the staff about the new systems. The hospitality industry investor should come up with a sensible business plan. This is so as to set stakeholders’ minds at rest and provide them with a clear image of what to expect. If otherwise, then investor might end up frustrating the consumers due to the mind set one had given them. A lot of care is required so that it does not happen. The system that is highly recommendable for the company is one that is flexible enough to meet the ever changing demands and the diverse cultural values. At the same time, this system has to be cost effective and user friendly (Pierce & Teece 2005, pg 3-5). Of equal importance are the laws that govern online transactions. This includes the location of the consumers, terms and conditions of the contracts that are to be entered into by the consumer and the company. The hoteliers should be well aware of these laws in case something illegal pops up. These may range from breach of contract to cyber crimes such as hacking among others. Expectations will be that these recommendations will be considered as they are given after a comprehensive research has been conducted. Similarly, it would be expected that for an hotelier who wants to maintain that highest level of service giving, regular contact with other major investors in the hospitality industry. This is so as to ensure that the latest consumer needs are in the finger tips. References Arcos, J., 2005, Application of Artificial Intelligence, Springer, New York. Beckman, T., 2008, Organizations, Cambridge University, Cambridge. Douglass C., 1991, Institutions, Institutional change and economic performance, Washington University, St Louis. Jay, L., 1999, Knowledge Management, CRC Press, Maryland. Pierce, L., & Teece, D., 2005, The Behavioral, Evolutionary, and Dynamic Capabilities Theories of the Firm: Retrospective and Prospective, Washington University, St. Louis. Robles, P., 2005, An Electronic institution’s approach for solving problems, Wiley, New York. Marco, R., 2006, A hotel information system implementation using MAS technology, ACM, Hakodate. Shoemaker, S., 2008, Hospitality Management, Sage, New Jersey. Siguaw, A & Enz, C., 2002, Cornell Hotel and Restaurant Management, Journal of Product Innovation Management, Vol, 20/4. Siguaw, J., 2006, Conceptualizing Innovation Orientation: A Framework for Study and Integration of Innovation Research, Journal of Product Innovation Management, Vol, 23/6. Alo, U.R. Ugah, J.O. & Igwe J.S (2009). Computer Application & Information Technology. Abakaliki, Ebonyi State, Nigeria: WilyRose and Appleseed Publishing Coy, 42p, 135p-137p. Ashwin, D. (2008). Characteristics of Management Information Services Online @ http://www.blog.mania_intelligence.com Mbam, B.C.E. (2002). Information Technology and Management Information System. Abakaliki, Nigeria: Green Light Computer. 3p, 132p. Ramesh, A.; Sinbh, Y. & Sachdeva R. (2008). Establishing a Management Information System. Online @ http://www.fao.org Read More