Management Information System in Hospitality - Case Study Example

Management Information System in Hospitality Student's Name: Course Name and Number: Instructor's Name: Date Submitted: Executive summary The management of Greenwich Hotel endeavors to upgrade the technology systems as part of building the refurbishment that is currently being considered. She wishes to ensure that she has the entire necessary technological infrastructure that will help to cater for the planned influx in international tourists. The managing director also looks forward to finding new avenues to outline and uphold competitive differentiation. This report seeks to acknowledge the strategic approach on Information and technology that will play a key position in improving the hotels managerial scheme. For the Greenwich Hotel to excel, the Management has come up with an IT program that can execute multiple programs concurrently. The program is supposed to create changes in business processes, operating models, product portfolios IT systems and target markets. Accordingly, the management of Greenwich Hotel has sort to be availed with three separate systems with recommendation and justification for the most appropriate IT system that is most suitable for an internationally oriented hotel. As an the Director of an IT programming company Intercomp, I have been presented with the directive to present two most appropriate systems that are suitable for globally oriented Hotel. As such Intercomp presents two of its systems to Greenwich Hotel that has been previously tested by other establishment in the Hospitality industry. It is upon the Managing Director of Greenwich Hotel to choose which among the Zig43 network and Zig44 best fits her plans. Contents Contents 3 1.0 Introduction 4 1.1 Case Background 4 1.2 Authorization 4 1.2 Aim and purpose of the report 5 2.0Discussion 6 3.0 Conclusion 12 4.0 Recommendations for future project or future implementation 12 5.0 References 13 1.0 Introduction 1.1 Case Background In the present-day society Information Technology has become the back bone of every business. In this point of view, Greenwich Hotel seeks to initiate an IT enabled system for its strategic of every day running of it business. Greenwich management is keen on the implication, effects and benefits of IT, in its daily running and the ability to realize e effectiveness of e-commerce on the hotel business. The main aim of the Managing Director at Greenwich Hotel is to create maintainable and sustainable competitive advantage over other five star hotels in the locality. The main aim of the management is to introduce a program that necessitates a superior level of diligence expertise synchronization to deliver the targeted profits with minimum costs. At Greenwich, IT-Enabled system will allow the hotel management to plan and convey the organization’s plan coherently to boost efficacy, monitor the Return on Investments (ROI) and to profitably drive change. 1.2 Authorization As an IT company director, with the mandate to tackle the fore mention task, I opted to offer Zig44 network that would link up the Greenwich Hotel mini-bar and increase both the effectiveness and excellent organization of the mini-bar department without wiring network. The network would effectively centralize the departments so that they can be run from the same office help improve coordination. The introduction of a new system will require an expanded budget. However, it will improve Greenwich’s strategic management. The introduction of e-commerce is also projected to boost sales and hence earnings without lowering products’ prices and the quality of services the hotel provides. A major point that has been focused through integration of Information technology is improvement of service provision, efficiency and class in the hotel. In reference to Bruce and Zaiyong (2006), IT-enabled property management system can be used through a value chain of activities that would enable the Managing Director to control function of the hotel’s operation for quick and easy decision making. Bruce and Zaiyong (2006), further indicates that Information Technology enabled system lays its ability to develop a concept “value chain” through creation of interdependent generic value activities that incorporates elements of finance, stock and human capital management. 1.2 Aim and purpose of the report The aim and purpose of this report is to show how Intercomp plans to implement Zig44 system IT enabled system. How Zig44 system would help Greenwich Hotel to create linkage between all the hotel’s activities through value chain. How e-commerce will transform the value chain activities and the physical components of the products offer and also how the new system will transform the physical components of the products offer and also how the systems will allow to lower costs on products and activities. 2.0Discussion Greenwich hotel management has recognized he great potential that is presented by the internet and e-commerce. The management is therefore pursuing an aggressive online strategy to entail doing 30% of its half a billion yearly procurement over the web. The core reason that e-commerce has such enormous potential for the hotel since the hotel business is basically one room one customer business i.e. everything in between the client and the room is marketing, profit, and sustain centers. The prevailing high cost of finding that one customer in need of one room and the supply chain required to support him is providing unlimited opportunity to amalgamate information systems to lessen costs along the value chain. At Greenwich, the web will drive reservations straight from clients and intermediaries at reduced costs associated with Zig44 systems. Customers will be in a position to directly book the all the rooms and the management will have the power to manipulate room rates at will and not in line with old forecasts by hourly and in minutes. The top precedence for business tourist in a hotel of the future according to Bruce and Zaiyong (2006) is to have a computer and internet connection in the hotel guestroom. Internet provides a means to internally connected network to the hotel’s commerce processes combined with room booking, housekeeping, foodservices to car rental, tours and even other services like kennel services for dogs. The hotel should be connected to a unique world of internet with extremely rich displays. In the online adverts the features of the online marketing should represent a variety of services, strategic alliances. E-commerce opens up the depth and breadth that are normal mode of human. It represents the latest and most effective marketing methods, development of tourist market for the hotel and brings in unlimited opportunities. Advantages of the technology enhanced system Technology enhanced system can be defined by the use of simple, low cost, fast electronic means of communication and hotel functions management. The systems carry out an assortment of trading activities. From trade point of view, Zig44 system can be administered in several areas and hence can be divided into low level e-commerce like the e-trade, electronic and contracts; and advanced e-commerce that require use of network internet and intranet for all trading activities like information flow, logistics, capital flow as part of complete realization of technology enhance hotel management. The system provides broaden sales market and expands consumer’s bookings; the system is linked to the internet and hence provides a wide range of products being offered by the hotel. Internet also broadens the area of coverage and advertisements. It is critical to note that technology enhanced management plan is a source of sustainable competitive advantage. The customer expectations in the premises are high, the system also include electronic amenities such as the indoor audio systems, televisions and internet connections. The achievement of competitive advantage is a primary goal in the hotels strategic management. The hotel has a five year cycle of redecoration and renovation of the hotel rooms a factor that will keep the standards of the premises to have a competitive advantage. Although price adjustments create a transitory competitive advantage, it hardly differentiates the competitive services. In reference to David et al. (2005), IT-enabled strategic planning increase competitiveness, public relations, customer service, method of product delivery, calibre and employees dedication, marketing and social networking and product quality. Utilization of IT-enable strategic management makes Greenwich Hotel product stand out. It helps both the establishment by provision of excellent services and enhancing consumer and business technology, it also creates a progressive market place. Peppard et al. (2002) indicate that IT-enabled strategic management process force Greenwich management to set objectives and gauges of success. The setting of success evaluation necessitates that the management first determine what is critical to its endeavors and forces its establishment of objectives. These critical measures are placed in front of the management. The management of the Greenwich also sorts to minimize lost revenue as key success criteria for the renovation. The management also scheduled the work to be done during the dawdling summer months. To keep the competitive advantage constant supply of drinks in the mini-bar, introduction of sensing tray would be introduced. This would help the management to monitor the supply and easy monitoring of product movement. Sustainable competitive advantage comes from the capacity to ad infinitum improve, upgrade, innovate and configure resources and capability to match with the contemporary needs. Sustainable competitive advantages rarely rise from a few transient competencies. Sustainable competitive advantage rise from dynamic capability to reconfigure and accustom existing resources has been observed as the leading source of sustainable competitive advantage. Competitive advantage in Greenwich would successfully be achieved by fully exploiting the already existing resources and adapt to new environments. IT-enabled system would bring about resource reconfigurability- this is the dynamic capability to bring out new opportunities, and improve in organizational management. The second lesson learnt is that IT-enabled strategic plan implementation gives the hotel financial advantage. According to Baumann (2000) the use of IT-enabled system to augment Greenwich’s market competitiveness will benefit the hotel bottom line. Slashing the prices can increase sale; however, such a strategy can also decrease the profitability of products services. In this regard, Greenwich hotel must analyse the entire scope of its business practices and create the best IT-enable system and leverage utmost financial gain. Financial benefits attached to IT-enabled strategic management are attained from various areas like; reduce products and service costs, acquisition of cheap resources, provision of helpful customer service, building brand recognition, and creation of focused marketing campaigns. In accordance with Piccoli, and Ives (2005). IT-enable system will also help in increasing volumes of sales, customer satisfaction and at the same time decrease costs thus create financial advantage. Addressing the operational issues hardly looks at the entire establishment and its interrelatedness o f its different components. As argued by Piccoli, and Ives (2005), IT-enabled system takes the manager’s perspective and is keen on the mechanisms and the interrelationship between different projects in order to come up with a strategy that covers the whole business. The third lesson learnt is that IT-enabled strategic plan implementation entails organization advantage attained through IT-enabled strategic management and planning. In reference to Peppard et al. (2002) human capital forms the most valuable foundation in business. IT-enabled strategic management provides tools that can manage human capital as well as create a positive culture that can help a business to thrive. Utilizing Piccoli, and Ives (2005) can create better workplace and a better workforce. Companies invest training and time into employees. However, these are only rudimentary necessities used to create a healthy and productive working environment. Increment of employees’ satisfaction can be sort from various arenas; employee empowerment, flexible work schedules, training programs among others (Peppard et al. 2002). IT has been often regarded as a strategic necessity and an economic imperative, the effective use of IT can result to differential performance outcomes more so if directly applied to the development of dynamic capabilities (Baumann, 2000). In the Greenwich management, the fundamental role o IT-enabled strategic plan is a fundamental platform for building capabilities. Resource reconfigurability would be posited as key mediating variable that enables the hotel to leverage existing resources and build more effective functional competencies that would match the existing environmental contingences. In reference to Baumann (2000) IT-enables system improves functional competencies. Allowing the staff and the management to work together will enable them to have a better understanding of the chosen direction and associated benefits. To some employee knowing it adequate, in order to gain full support from some people they must fully understand the system. Advances in IT extend well past booking, nevertheless. Internet is essential for vacationers and business tourists who wish to contact those at home and those travelling on business to get in touch wit their businesses and office. In this case wireless internet has become very common and useful in hotels. Most clients who are business minded require that a hotel should offer internet services those that they can continue with their office work while on vacation. The Zig44 system provides with technology that ensures safety; door locks, security cameras and other devices fundamental to the establishment’s security and safety are wired into the network. This alerts the staff any time a fire alarm goes off, the door is open or any suspicious activity occurs. The hotel guests might be unaware of it but these safety precautions are beneficial to the management and he guests. The system also allows for intelligent booking systems that enhance prompt guest feedback and the ability to predict the clients who are likely to use the facility again and inform them through e-mail and text messages any time good deals props up. The system also will assist in offering the hotel menus online, this will allow for quick updates, superior quality photos among other ways of allowing the guests to view and make orders before they arrive. The system also is advanced in processing of inventory and payroll, this makes it valuable asset for minimizing costs and maximizing earnings. The unique nature of the hospitality industry makes this industry a great place for new and emerging IT. 3.0 Conclusion E-commerce in the hospitality industry has been enormously developed, and has numerous advantages over the traditional business. The Zig44 system will provide a convenient and proficient service to guests; hotel information that on the internet focuses on the image displayed for the guests to presents B2C direct guest booking channels and customer only need to make their choices according to their needs. This system bequeaths with a discipline that allows the management to take some steps back and concentrate on the future of the hotel. Without a system that is technology enhanced, the management of the hotel can become solely exhausted with working through its problems without deliberation of a larger picture. Technology enhanced systems provides a framework within which the workforce can make their daily operational decisions and understand that their decision assist in moving the entire business ahead. The system further provides a vision of the upcoming prospects, sets objectives, confirms the purpose of the business and determines the methods to leverage strengths and alleviate weaknesses. 4.0 Recommendations for future project or future implementation Greenwich Hotel technology enhanced strategic change will facilitate the business to do extremely well in its large projects. Technology enhanced plan should assist in the establishment and to identify dependencies across its scheme portfolio and then formulate a proposal with a long-standing effect in mind. The Greenwich Hotel should institute a structure that can manage the hotels missions holistically in order to generate synergies and avoid silos. Baumann (2000) argues that the hotel management should also access the impact of change that can strengthen planning, maintain costs within the budget and avoid delays. The management should also blueprint a solution architecture that will lay a foundation for to change. To boot on these the management of Greenwich Hotel must analyze future trading scenarios and evaluate their impact on IT configuration; hence, plan to administer such scenarios smoothly. Lastly, the management must envision the renovation and desired change. Greenwich management should also spot priorities to realize the vision. 5.0 References Bruce A. & Zaiyong T. (2006). IT-enabled strategic management increasing returns for the organization. Hershey PA: Idea Group Pub. David M, Alison B, & Tarek T. (2005). Operations management: a strategic approach. London Thousand Oaks, CA: SAGE Publications. Baumann, M. (2000), "Internet a Powerful Sales Tool for Vacation Ownership," Hotel and Motel Management, 215, (January), 1, 20. Peppard, J., Ward, J., Daniel, E. (2002). “Managing the Realizing Business Benefits from IT Investments,” MIS Quarterly Executive 6(1): 1-11. Piccoli, G., & Ives, B. (2005). Review: IT-dependent strategic initiatives and sustained competitive advantage: A review and synthesis of the literature. MIS Quarterly, 29(4): 747. Read More