Enterprise System Implementation
Memo
Walt Disney World Resorts
To: CIO
From:
CC: CMO, CFO, COO
Date:
Subject: Success Criteria for Enterprise System Implementation
The organization in this technology-oriented market without Enterprise Resource Planning is running by some software, which does not even allow customization while integration is a bigger target. To incorporate in this challenging and competitive world the companies are moving toward best ERP solutions to get the benefits i.e. SAP, Oracle, Microsoft. In case of Walt Disney World Resorts case I suggest implementation of Customer Relationship Management for certain benefits and to eliminate issues that the company are currently facing. In the gravity of this implementation here are certain success criteria in the back of my suggestion.
Criterion 1: Application Strategy
The application integration architecture is the most complete and integration solution in ERP for orchestrating agile, user friendly and user oriented business processes across all the enterprise business application. This will help the organization in:
1. Gain business and IT efficiencies
2. Increase agility which is a basic requirement in case of Walt Disney
3. Lower total cost of overall ownership
Criterion2: Product Integration Strategy
For Tier I level organization like Walt Disney SAP provides best ERP solutions (Schickel, 1968). The product integration strategy of a solution allows a company to focus either on:
· Focusing on one product line and investing totally in that particular product line or
· Companies can focus on supporting multiple application with or without overlapping in functionality but allows the customer to chose best of if its product application
These aspects help the Walt Disney to encounter the issues in different business segments and facilitate the customer by providing friendly user application on mobiles and in booking area for receiving tickets and food items without queuing in long lines.
Criterion 3: Comprehensive CRM capabilities
A CRM is a comprehensive package in business support and facilitation from its customer data maintenance to report generation. This provides role based customer intelligence and pre-built integration. Company can develop a complete database of its valued customers and provide facilities even online to avoid the hassles. Following are certain capabilities of CRM:
· CRM with a proper training becomes a friendly intelligent system of employees that save time cost, Psychological cost, and monetary cost.
· This System also help is maintains the record of millions of customers and retrieval on just one click by unique account numbers (Moore, 1980).
Criterion 4: Web Based Application Strategy
Web based application strategy helps organization transform to gain more and valued by lowering the cost and risk. This creates integration among the business processes and application to widen the approach and access of authorized users. But the risks of cyber ...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
Enterprise System ImplementationMemoWalt Disney World Reso.docx
1. Enterprise System Implementation
Memo
Walt Disney World Resorts
To: CIO
From:
CC: CMO, CFO, COO
Date:
Subject: Success Criteria for Enterprise System
Implementation
The organization in this technology-oriented market
without Enterprise Resource Planning is running by some
software, which does not even allow customization while
integration is a bigger target. To incorporate in this challenging
and competitive world the companies are moving toward best
ERP solutions to get the benefits i.e. SAP, Oracle, Microsoft. In
case of Walt Disney World Resorts case I suggest
implementation of Customer Relationship Management for
certain benefits and to eliminate issues that the company are
currently facing. In the gravity of this implementation here are
certain success criteria in the back of my suggestion.
Criterion 1: Application Strategy
The application integration architecture is the most complete
and integration solution in ERP for orchestrating agile, user
friendly and user oriented business processes across all the
enterprise business application. This will help the organization
in:
1. Gain business and IT efficiencies
2. Increase agility which is a basic requirement in case of Walt
Disney
2. 3. Lower total cost of overall ownership
Criterion2: Product Integration Strategy
For Tier I level organization like Walt Disney SAP provides
best ERP solutions (Schickel, 1968). The product integration
strategy of a solution allows a company to focus either on:
· Focusing on one product line and investing totally in that
particular product line or
· Companies can focus on supporting multiple application with
or without overlapping in functionality but allows the customer
to chose best of if its product application
These aspects help the Walt Disney to encounter the issues in
different business segments and facilitate the customer by
providing friendly user application on mobiles and in booking
area for receiving tickets and food items without queuing in
long lines.
Criterion 3: Comprehensive CRM capabilities
A CRM is a comprehensive package in business support and
facilitation from its customer data maintenance to report
generation. This provides role based customer intelligence and
pre-built integration. Company can develop a complete database
of its valued customers and provide facilities even online to
avoid the hassles. Following are certain capabilities of CRM:
· CRM with a proper training becomes a friendly intelligent
system of employees that save time cost, Psychological cost,
and monetary cost.
· This System also help is maintains the record of millions of
customers and retrieval on just one click by unique account
numbers (Moore, 1980).
Criterion 4: Web Based Application Strategy
Web based application strategy helps organization transform to
gain more and valued by lowering the cost and risk. This creates
integration among the business processes and application to
widen the approach and access of authorized users. But the risks
of cyber crime get attach with this strategy and needs a strong
security wall around the system to protect from any kind of
cyber attack.
3. Criterion 5: Training and consulting support
One very powerful and strong aspect of this ERP solution
acquisition is the consulting and training (Stone, 1975).
Companies can get the only required and desired kind of system
that let the organization to be play within the budget and get
user-friendly application. Then the major ERP solution provider
conducts a proper training program for the employees to help
them in understating the operation of system.
Criterion 6: Reports and order generation
One success factor of the well-developed CRM is that it can
provide reports of all kind the company management needs for
their use in different purposes. Also the reports can be
customized and the particulars can be designed and placed as
per management requirement for future use and ease of
interpretation. Secondly the order and billing generation helps
in time effective activity where the click and design generates
the orders, memos, reports, bills, receipts and all related official
documents within no time.
Criterion 7: Data safety and centrally managed
The data in a CRM is centrally managed and safe as only
authorized users can access the data. This is also a satisfactory
sign for the customer as their overall data with company is
secure and company can also highlight this element to bring
loyalty and customer satisfaction with the company. Not only
for customer but for the company itself the management of the
data becomes easy as the whole data is placed and managed in
one place for access, interpretation, usage and processing. The
log generation facility of CRM helps in fraud control and
related activities.
References:
Moore, A. (1980). Walt Disney World: Bounded ritual space
and the playful pilgrimage center. Anthropological Quarterly,
207-218.
Schickel, R. (1968). The Disney version: The life, times, art,
and commerce of Walt Disney (p. 339). New York: Simon and
Schuster.
4. Stone, K. (1975). Things Walt Disney never told us. Journal of
American Folklore, 42-50.
Walt Disney Page 1
Customer Relationship Management – A Review of Two Case
Studies
Team 4 | Group Project 1 | Page 3
Introduction
The purpose of Customer Relationship Management (CRM) is to
efficiently and effectively increase the acquisition, growth and
retention of profitable customers by selectively initiating,
building and maintaining good relationships with them.
Examining two cases, Disney and Marriott, will provide an
informational analysis of the approaches to CRM and some of
the lessons learned by following this approach to improving
customer experience and increasing profitability.
Case Study 1. Disney – Business Description & Problem
A weak domestic economy, competition in the amusement park
5. realm, potential amusement park attendees lacking patience
when it comes to inconveniences, fewer international travelers
and mounting operations costs leave Walt Disney World in a
precarious business situation. To stay competitive in this
difficult landscape, Disney needs to find new ways to show each
visitor value in its brand and commitment to his or her vacation
experience, without breaking the bank. One way Disney hopes
to accomplish this is by integrating technology into the overall
customer experience.
Many people recognize the famous characters, voices and the
hilarious children’s cartoons that began in late 1928 from The
Walt Disney Company. Their iconic brand has made Walt
Disney Co. an “international family entertainment and media
enterprise with five business segments: media networks, parks
and resorts, studio entertainment, consumer products and
interactive media” (Walt Disney Company). Their goal is to
provide families with wholesome entertainment and memories
that will last a lifetime in which many make the pilgrimage to
their top-of-the-industry theme parks and resorts. They also
maintain multiple other businesses that include collectible toys
and memorabilia, television networks and who could forget
their films such as the recent “Saving Mr. Banks.” With theme
parks and resorts in countries like Japan, Paris, and the United
States of America, Disney has to ensure the customer
satisfaction of millions on a daily basis and in 2003, CIO Roger
Berry, was placed at the helm to “restore the luster of its aging
brand, increase efficiencies and boost attendance” (CIOinsight,
2003).
Walt Disney World is losing sales. Disney’s theme parks are
experiencing lower attendance figures and in turn, lower
revenues. At the same time costs for insurance, healthcare and
pension plans for employees is on the rise. The ticket prices
have also risen 20% since 1998. These ticket prices are one of
the main reasons, among others, for lower sales figures. In an
effort to turn things around for Walt Disney World, Roger Berry
wants to bring in fresh technology to the park. Disney wants to
6. restore its aging brand by increasing efficiencies, boosting
attendance, and increasing the bottom line revenue. By
bringing in new technology, Berry hopes to create a more
personalized environment and improve the overall customer
experience.
The Analysis & Lessons Learned
Walt Disney is operating in a service industry where
communication with the customer is very important and keeping
customers happy is even more important. This is a kind of
industry where “word of mouth” really improves popularity to
the service provider. To provide better services to the customer,
Disney took help of Customer Relationship Management
(CRM).
To gain a strategic advantage and in an attempt to serve the
customers in a better way information technology can support
their ideal CRM. They will implement an array of new
technology, for example, “Pal Mickey” that puts to use GPS,
smart sensors, wireless technology and mobile devices. (Time to
Invest, 2004).
The problem to be solved in Disney’s case goes beyond
providing the means to justify current leisure spending in a
weak, post-recession economy. Their use of a CRM model and
subsequent expansion of the use of technology must get
customers to increase their spending on leisure. The success
will greatly depend on whether the customers see the benefits
the way Disney thinks they will.
A key lesson for Disney is that they must focus on the customer
part of CRM. A quick search on the Internet for news sources
on keyword “Disney” provides a long list of articles, mostly
complaining about their high prices. Some blog sites have
began to take issue with Disney’s prices in innovative ways.
For example, one popular fashion travel site lists French Castles
that families can rent for less than a stay at Disney (Elle Decor,
2014). Another site praises Disney’s improvements, but still
cautions that the increase in prices will continue to be a major
challenge for Disney moving forward (Harry, 2014). In
7. Disney’s current strategy, in order for the Disney to solve their
sales problem, customers must agree to pay increased prices.
Time will tell if this strategy of increasing value for increased
prices will be successful.
Case Study 2. Marriott – Business Description & Problem
Marriott International Incorporated (MAR) has been in the
hospitality industry since the late 1920s. With more than 85
years of history, 3,900 properties in 72 countries, and 195,000
hotel rooms currently in development—making Marriott one of
the leading hospitality company in the world. It is mostly
recognized by their values, spirit to serve, and a corporate
commitment to creating better places to live and work (Marriott,
2014). Unfortunately, the decrease demand in the hospitality
industry has made Marriott owners turn to a Customer
Relationship Management (CRM) technology to increase sales
and improve operations.
Marriott International is a top hospitality corporation that is
headquartered in Bethesda, MD. Today the company owns,
franchises, and operates more than “4,000 properties, and more
than 690,000 rooms in 78 countries and territories.
(FundingUniverse, 2014)” Currently there are approximately
330,000 employees working for Marriott international. Marriott
started out as a root beer shop in 1927 opened by J. William
Marriott. It's first hotel, the Twin Bridges, was opened in
Arlington Virginia in 1957. Incorporation of its name took
place thereafter in 1967. Marriott most recognized brands
include Marriott, JW Marriott, Renaissance, and Ramada
International, etc. There are eighteen brands in total.
Convenience and Customer satisfaction have always been the
two main focal points for the business. E-business strategies
are being utilized to drive sales and increase revenues.
In early 2001, the hospitality industry anticipated approximately
a 5.6% decline in hotel profits (Carr, 2002). As a result,
Marriott wanted to get ahead of this potential decline. In an
effort to fine tune business practices, it used technology
products to enhance sales management and operate more
8. economically.
Analysis & Lessons Learned
Through Marriot’s global market strategy and dedication to the
consumer they were able to put into place a uniquely tailored
Customer Relationship Management platform across their entire
enterprise of over sixteen brands. This provided the customers
what they wanted and the employees the tools and data that they
needed to effectively and efficiently work with the customer.
Moving into the change the focus on online sales, payments and
booking was underestimated, however has proven to be a main
contributor to the success of Marriott’s brand globally.
Consolidation of resources and customized systems plagued the
brands locations and ease of use for the consumer and has since
been cut-down and has the potential to consolidate further as to
cut cost as well as manage facilities more efficiently
(Information Week, 2001).
With more and more individuals and corporations using the
Internet and e-mail these days, Marriott needed to address the
‘spam’ notifications that clutter up e-mail boxes. Part of their
CRM implementation, data was used more practically and in a
targeted approach of the consumer. This created a much better
acceptance to consumers as it brought targeted ads and
promotions to them rather than generalized junk that inevitably
was deleted. These valuable CRM endeavors were able to
increase sales within months of going live, climbing the
international Marriott brand further up the ladder of success and
setting precedence for competitors to follow.
References
Carr, G. (2002, June 3). Record Decline in 2001 Hotel Profits,
Worst in Over 60 Years. http://www.hotel-
online.com/News/PR2002_2nd/Jun02_ProfitFallOff.html .
CIOinsight. (2003, December 01). Case Study: Walt Disney
World Resorts and CRM Strategy. Retrieved June 18, 2014,
9. from CIOinsight: http://www.cioinsight.com/c/a/Past-
News/Case-Study-Walt-Disney-World-Resorts-and-CRM-
Strategy/
Elle Decor. (2014). It's Cheaper to Rent A French Castle Than
to Stay at Disney World. Retrieved July 3, 2014, from
www.elledecor.com: http://www.elledecor.com/design-
decorate/ideas/french-castle-chateau-cheap-rentals
FundingUniverse. (2014). Marriott International, Inc. History.
Retrieved June 29, 2014, from www.fundinguniverse.com:
http://www.fundinguniverse.com/company-histories/marriott-
international-inc-history/
Harry, J. (2014, June). Seeking Alpha. Retrieved July 4, 2014,
from www.seekingalpha.com:
http://seekingalpha.com/article/2280043-disney-excellent-
growth-but-at-what-price
Information Week. (2001, June 21). Marriott Uses CRM
Application to Boost Sales. Retrieved June 18, 2014, from
Information Week: http://www.informationweek.com/marriott-
uses-crm-application-to-boost-sales/d/d-id/1010910?
Marriott. (2014). Marriott Proprietary Information . Retrieved
June 25, 2014, from
http://www.marriott.com/marriott/aboutmarriott.mi
Time to Invest. (2004, January 12). Retrieved from
www.Eweek.com.
Walt Disney Company. (n.d.). Our Businesses. Retrieved June
18, 2014, from The Walt Disney Company:
http://thewaltdisneycompany.com/disney-companies