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ITP BIT Coursework

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Information Technology Planning

ITP BIT Coursework

  1. 1. Information Technology Planning 1 Student Name: Myint Oo @ Amirul Hassan UOG Student Registration ID: 000805763 Coursework Title: Strategic Evaluation Document for Grunge Hotels COMP1647: Information Technology Planning Due Date: 15/11/2013 Section No: BIT-14 School Name: KMD (Yangon, Myanmar)
  2. 2. Information Technology Planning 2 Table of Content 1. Introduction 1.1 Background……………………………………………………………………3 2. Strategic Evaluation 2.1 SWOT analysis………………………………………………………………..4 3. Impact of IS 3.1 Key Processes…………………………………………………………………5 3.2 A major system that the Grunge Hotel needs…………………………..……..6 3.3 Compare and contrast to the information needs of managing director and hotel manager…………………………………………7 3.4 Biggest organizational changes………………………………………………..8 3.5 Processes for outsourcing…………………………………………………...…9 3.6 Disaster Recovery Plan ………………………………………………………10 3.7 Persuading the Managing director…………………………………………....11 3.8 Reference……………………………………………………………………..12
  3. 3. Information Technology Planning 3 Introduction Background Grunge Hotel was founded in 1991 and is inclusive of 43 1 star hotels in the UK. The hotel group has good image on the website. Many of the employees working in the hotel are Eastern Europeans with expertise. It is going to be renovated with a view to provide better services as well as basic accommodation with reasonable prices. The hotel group will attend an auction in the hope of getting properties with low prices. The managing director wants it to be standing as the number one group. Due to the recent changes of the government, it has been decided that all European employees have to hold UK passport, otherwise they have to leave the country. So, it has a high impact on the organization. So, the organization may lose the qualified employees and will have hardship to find the qualified staff instead which cost a lot. The organization can’t offer satisfactory services to the guest because the organization doesn’t have an IT system while other competitors are running IT system. Other competitors have broad audience base and the hotel doesn’t have much audience. It is obvious that some managers are worried of changing their accustomed work and some hates the changing of IT system. All the transactions are done manually such as record bookings on phone, financial record kept by the clerk. There is no standard way of keeping financial details which has to be sent to the Head Office on a daily basis. The organization has to hire external auditors as the financial staffs are lacking essential skills of keeping financial records. It needs to spend more money to set up an IT system as well as hire qualified IT technicians. Because of more money spent on these things, the organization may have to charge more their audiences to stay at the hotel which is completely against their purpose. There are many factors that the organization has to concentrate on focusing on the investment in order to get return on investment in a specified time so that the organization has to be careful over investment to prevent from wasting. Secondly, it needs to target the qualified employees because the organization will probably lose the qualified employees. So, they will have to target local qualified employees to use in the organization instead of European employees. Thirdly, it needs to develop an IT system as soon as possible in order to make all manual transactions to be easier and smooth. Fourthly, it needs to keep an eye on the competitors because they should know what their opposed competitors are doing and how they provide services to the audience. Fifthly, it needs to improve the skill of the financial staff and the director because they are lacking essential skills to record financial records. So, they need to be trained to improve their skills. Sixthly, it needs to motivate the managers who want to stay at the accustomed work and hate the change system of IT in order to accept the organization changes.
  4. 4. Information Technology Planning 4 SWOT Analysis Strengths - Enough budget in hand - Have strong status on the websites - All European employees have competence and skills - Can pay low rates to the employees compared to the market level - Has strong basement as well as other required equipments Weaknesses - Take time to develop an IT system - The financial records are kept below the standard - Has to hire external auditor to check the financial records - The director is lack of essential skills - Owing to the lack of IT system, the organization has to use many man power - All the transactions are running manually Opportunities - Organization’s images will be on the rise for cheapest price - No need of many man power for the same work - Many changes to get the auction properties with low prices - No need to spend money for places and equipments to set up IT systems - Many opportunities to get qualified local employees Threats - Need to spend more on the development of IT - Hotel charges may arise. - Competitors will get broad audience base during the renovation - May lose the qualified European Employees - Heavy rain can reach to the basement - Manager’s unwillingness on IT systems
  5. 5. Information Technology Planning 5 Impact of IS Key Processes of Grunge Hotel
  6. 6. Information Technology Planning 6 Major System Grunge Hotel needs a major system which is called “Financial Management System”. For the following problems of the hotel, FMS should be first set up in the organization. The organization is overcoming various difficulties such as recording financial records with account books which are done by the clerks. All the details of finance are sent to the head office which takes time. There is no standard way of keeping financial records. As the financial records are not correct, they have to hire external auditors to check financial records. It’s very expensive to do that. The FMS will hold all financial records about 42 hotels and allows to be accessed to them to the authorized person. It will show enough cash is available at the right time in order to run the hotels well. Cash will be required to invest in necessary things for hotels, pay employees etc. It will optimize cash management and cash flow problems when they go up. It will also let the organization know how definite possible scenarios like acquisitions or extra new business unit may impact its financial status. This leads tactical planning more successful. It will show daily, weekly and monthly income and expenses with complete details. It will clearly show how much budget is used for what .It will also record the audience information and payments for his or her stay and other services with names and date. It can also produce invoices, payments, and reminder letters for outstanding payment. It will also handle all the details of employees to arrange salaries for employees. It will also display how much salary has been provided to the employees each month in each hotel. The system will generate correct and consistent balance sheets, profit and loss statements and budget allocations. As it offers in-depth ad hoc analysis capabilities, enable financial experts simply create custom reports to assure their own unique information needs.
  7. 7. Information Technology Planning 7 Compare and Contrast to the information needs of MD and Hotel managers Decision making is very important for the hotel management team for further improvement because wrong decision may take their hotels to disaster. So, information about all hotels is needed for them to make effective decision. Without information about the hotels, they will be unable to make correct decisions. If the correct decisions are not made, the organization will have to overcome many difficulties and problems. What’s worse they may even lose the audience and the reputation. The need of information needed by the managing director and hotel managers will be different because MD will need summarized data or information while hotel managers will need detail information. The following are some required information which will help the managing director make correct decision strategically while hotel managers operationally. Based on the following information, MD will be able to invent solutions for hotels performance for example if any of the hotels has lower income and audience base, then he can consider which hotel needs to use much resources and which not. Managing Director Hotel Managers 1. Needs to know the total daily income and outcome of all hotels Need to know the daily income and outcome of a hotel 2. Desires to know which hotel has highest and lowest income Desire to know to know each week’s highest income in a hotel 3. Monthly overall profit and loss of all hotels Weekly profit and loss of a hotel 4. Performance and progress of each hotel Which team has better performance (for example chefs) 5. Would like to know what type of audiences are most stayed at his hotels Would like to know the audiences complaints and feedback on their stay 6. Requires to know the number of audiences stayed monthly at 43 hotels Require to know how many audiences have checked in and out daily 7. Which hotel has broad audience base What type of rooms are most stayed by different guests 8. Making sure that all hotels have enough resources to operate Ensuring that resources has effective used in their hotels
  8. 8. Information Technology Planning 8 Biggest Organizational Changes Whenever a new system is introduced to an organization, there are always changes and difficulties it has to overcome. Likewise, the Grunge group is going to have an IT system to improve their processes. On having a new system, there will be many biggest changes they have to overcome for example, employees’ training, employee’s disappointment to apply IT on their works etc, misunderstanding of employees on IT system etc. The first change of the organization can be staff training because without the staff, the IT system is nothing to do. By choosing the right employees for example those who are interested in IT, should be well-trained to run the IT systems. The training should be targeted solely on application of the new IT system in the situation of the processes and employees’ role. When proving training to the employees, the trainers should establish with the essential knowledge and expertise together with a good plan for reducing the likely risks and problems to occur. The second biggest change can be staff unwillingness to apply IT on their work. It’s widely said that the success of a system is completely relying in the keenness and ability of its users in order to adjust to the new technology and efficiently use with their work. So, the top management should educate and motivate them by letting them know how each process will change in IT system and the benefits of using IT system such as it reduces workload, their way of working becomes faster and smooth. Using IT system, they will reach to their goal of standing as a number one hotel group from which employees and employers can get benefit. The third change will be reallocating the hotel employees depending on the IT systems. After setting up IT systems, all current processing will become faster and smooth. So, the organization doesn’t need to use man power for daily operations. So, the excessive employees should be appointed to other required fields which are in need of employees. The fourth change will be hotel layout or structure. The organization should make preparations such as choosing the right places and decorating them before setting IT systems at all hotels. If possible, they should be put at the safe place of the hotels and put restrictions to touch them by allowing authorized employees. The last change can be misunderstanding of employees on the new IT system and new IT environment. They may think that by applying IT system in the organization, the employees will be reduced to save cost. So, they should be clearly convinced by explaining why IT system is for, where it will be used and how it can help them with their daily process.
  9. 9. Information Technology Planning 9 Outsourcing As Grunge Hotels are 1 star hotel, there are not many services to outsource. But depending on the need of the hotel, there will be processes to outsource to get audience’s satisfaction and make their processes faster. The Grunge Hotel group has many difficulties with their current way of working such as record bookings on phone, keeping incorrect financial data etc. So, the Managing Director is very willing to have an IT system for his organization. So, the organization may outsource IT system as he doesn’t have IT technicians and employees who have knowledge of IT. Hiring IT technicians and make them develop an IT system in the organization will be very expensive rather than outsourcing it at software house. This may cause ethical and social issues between IT technicians and existing employees through communication. The management team will also find it difficult to manage IT experts as they don’t have relevant knowledge and management experience to supervise them. Unwanted workload will come up in the organization. The important point is that his hotels are 1 star hotel and he can’t use much money for solely on IT as charges for the stay at his hotels may come arise. Otherwise, the purpose of providing basic accommodation with the cheapest price will not come into possible. As no IT systems are perfect, there are always the needs for them even if after well- developed. The systems will always be required maintenance for better performance. Appointing permanent IT experts to maintain servers and IT systems will be expensive. So, the organization will also outsource required services and sever maintenance for the IT systems. It should be done every three months or six months. Not also it saves cost but also it reduces workload. This will also help top level management offer much attention on improving their business as they don’t need to focus on operational issues. So, they can easily get to their goal of being a number one hotel in UK.
  10. 10. Information Technology Planning 10 Disaster Recovery Planning There are many types of disaster such as fire, eminent hurricane, flood, human attack, storm and earthquake. It is possible that a disaster called flood may likely to occur according to the case study. No matter how high or low the disaster is the organization should have beforehand preparation. Only then, it can help resume the business in a hurry way. Before a disaster happening in the organization, it must have a good plan (which contains the details guidance and procedures of restoring all destroyed servers and finding a place nearly to set up them for temporary, who will do what during the disaster etc) on how to overcome a disaster if happens. The key contact data should be put in front of the plan. As information and data are the most important to run the hotels, it must be backed up safely using hot site before doing anything else. If possible, the important information should be kept on cloud computing such as Google Drive etc. There should be a secure computer room with climate control to store back up and other hardware such as networks, servers, wireless device for server restoration and software applications for data restoration etc. During a disaster happening, all responsible employees will be informed immediately and enforce them to act according to the plan. The general manager will seek emergency help from the near Emergency Service Agency or Department by using key contact information such Police or fire department etc. Before contacting the IT professionals, the responsible employees will try to save servers not to get much destruction before IT professionals are contacted to come quickly and recover the servers with responsible employees. After the disaster happening, the organization must call for an urgent meeting and make a quick decision for resuming the business in a short time by seeking help from a nearly environment to locate servers in their area to run till the damaged office is renovated with an agreement. The data will be restored by using hot site data restoring software. All servers will also be restored by using necessary equipments at the secure room. In this way, the organization will succeed resuming their business within short time.
  11. 11. Information Technology Planning 11 Persuading Managing Director It’s widely said that IT systems are very expensive to set up in organization. The managing director of the Grunge hotel group also thinks like that and worries that he has to invest much money for IT systems required for his organization and he has to charge more for his audience for the basic accommodation at his hotels. As he is the decision maker of investing for IT systems, he needs to be persuaded to invest for the required IT systems in his organization. As he has to set up IT systems for 43 hotels, he has to buy necessary equipments such as computers accessories; network accessories etc expect the equipments in the basement. So, he should be advised to order and buy all required equipments together as there are many chances that he will get with reasonable prices. So, he can save cost. The cost of developing IT systems and installation will not be too higher as the same development team will develop IT systems and install them at 43 hotels. They will also train the employees on how to use the system with their respective roles. So, there will not be cost anymore for employees training. The current way of doing financial transactions cost more as they have to hire external auditors to check them. So, there will be no need of hiring external auditors when they new systems are introduced. The new systems will enable the financial transactions to be secure and correct. The current way of recording bookings over phone may make audience annoyed when the phones are engaged and they have to wait. The new system will help the audiences to book from anywhere around the world simultaneously and the employees can manage their bookings in a standard way and send messages over the network when required. So, they can get broad audience based from which the organization can profit. It can also help reduce man power for the booking process. Not only it saves time, but also it reduces workload. Presently all the operations are done manually. So, they have to record everything on papers. The more the papers used, the more places is required to store it. What’s worse is papers can easily be lost. It’s also hard to search the specific record or data on time. When the new systems are used for it, no paper and places will be required. All data will be systematically saved in the system. The specific data can be searched easily with a second. In conclusion, by setting up IT systems in the organization, all the current processing will become easier and smooth. Employees can get job satisfaction which is very important for an organization. He would get return on investment within short period of time for what he would have invested for the IT systems. So, it is the best way to invest for IT systems.
  12. 12. Information Technology Planning 12 References The world’s # 1 solution for cloud financial management, 2013. [ONLINE] Available at: http://www.netsuite.com/portal/products/netsuite/erp/financial-management.shtml. [Accessed 05 November 13]. Jim Riley. 2012. Introduction to financial management. [ONLINE] Available at: http://www.tutor2u.net/business/accounts/finance_management_intro.htm. [Accessed 05 November 13]. Paul Kirvan. 2009. IT disaster recovery (DR) plan template. [ONLINE] Available at: http://searchdisasterrecovery.techtarget.com/feature/IT-disaster-recovery-DR-plan-template-A-free- download-and-guide. [Accessed 07 November 13]. H. Wold, Geoffrey, 1997. Disaster Recovery Planning Process. Disaster Recovery Journal, [Online]. Vol. 5 #1., 1. Available at: http://www.drj.com/new2dr/w2_002.htm [Accessed 07 November 2013]. John Dudovskiy. 2012. The Grange: Information & Knowledge Needs for Decision Making. [ONLINE] Available at: http://research-methodology.net/information-knowledge-needs-for-decision- making/. [Accessed 07 November 13].

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