This document describes the development of an innovative customer relationship management (CRM) system called Happy Guests Relationship Management (HGRM) by Carlo Fontana, the owner of two hotels in Switzerland and Italy. HGRM aimed to provide personalized service to guests in order to differentiate the hotels from competitors. It included modules for reservations, communication with guests, and housekeeping. The system went live in 2009 and improved communication and attention to guests. Further development was needed to expand language support and integrate additional processes like housekeeping. Overall, HGRM helped enhance the customer experience and business operations of the hotels.

1. Submitted By:-
Gunjan Gujral
501704072

2.  Domino's is an American pizza restaurant
chain founded in 1960
 In February 2018, the chain became the
largest pizza seller worldwide in terms of
sales
Innovations:-
 The company was first in introducing their iPhone
app for the U.K. market in September 2010
 The iPhone app automatically detected the Domino’s
location closest to the customer

3.  After logging in to the mobile app, a
standard menu displayed to the customer
and a customized.
 With the availability of customization they
could choose different toppings, sauces
and add ons as they want.
 The interaction with the restaurant’s
employee became minimal that allowed
customers to order even when stores were
closed.

4.  After placing and paying for the order, the
customers have the ese to track their order
where they could track the progress of their
pizza till the time it is delivered
 After certain period of time, the same app
was enhanced technically which was used
by Android users also.
 The availability of the app to the users
increased with that step.

5.  In October 2014, another step towards
technology was taken by Domino’s that
was including an additional voice
ordering feature
 The Domino’s always focused on the ease
of access to the customer in order that
they can easily place the order

6.  With the pace of technology and in
order to maintain the technological
reach to the customer, Domino’s
extended its mobile application to the
Smart watches.
 This helped the order processing and
monitor its process more easier for the
customer

7.  Traditional models of value creation with IT
 Industry Analysis
 Value Chain
 Customer Service Life Cycle
 Virtual Value Chain
 Crafting Data-Driven Strategic Initiatives

8.  In this chapter, we will understand how to identify opportunities
and to design and evaluate IT-dependent strategic initiatives.
IT-dependent strategic initiatives
 Initiative- Defines the boundaries of what strategy is designed to
achieve
 Strategic- Firm seeks to create added value
 IT Dependent- Use of information technology as core

9.  The emergence of influential strategic models focusing on competitive positioning and
competitive advantage helped shine a light on the value creation potential of IT
 Three analytical tools were introduced or adapted to the search for strategic
information systems opportunities at this time:
1.Industry analysis
1.Value chain analysis
1.Customer service
life cycle analysis

11.  This is a time-honored tradition i.e.
respected or valued because it has existed
for along time
 The Threat of New Entrants-
 High entry barriers
 Mature Market
 Long- established companies

12. The Threat of Substitute Products or
Services-
 Substitute Performance
 Cost of Change
The Bargaining Power of Buyers-
 No significant group buyer
 No switching cost
 Information Asymmetries

13.  The Bargaining Power of Suppliers-
 Size and no. of suppliers
 Uniqueness of each supplier’s product
 Focal company’s ability to substitute
 The Rivalry among Existing Competitors-
 No. of competitors
 Diversity of competitors
 Industry Concentration
 Industry Growth

14. The following are some of the questions that are
typically asked:
 Can the Use of IT Raise or Increase Barriers to
Entry in the Industry?
 Reduce the threat of new entrants.
 Example :-Gaming Industry
 Can the Use of IT Decrease Suppliers’ Bargaining
Power?
 Yes, Use of IT Decrease Suppliers’ Bargaining Power.
 Example:- Alibaba (http://www.alibaba.com)

15.  Can the Use of IT Decrease Buyers’
Bargaining Power?
 No, as there is increase in the use of IT the buyers
are also getting multiple option
 Example- Snapdeal, Flipkart etc.
 Can the Use of IT Change the Basis of
Industry Competition?
 With change in industry trend, all the larger
companies need to follow and adapt the same trend
to stay in the market
 Example-Amazon

16.  If what the firm does is unique, such that no competitor is able to offer comparable
value, the firm creates added value and has achieved a position of competitive
advantage.
 The value chain model maps the set of economic activities that a firm engages in and
groups them into two sets: primary activities and support activities.

17.  Primary Activities- These represent the firm’s actions that are directly related to
value creation.. The classic value chain identifies five primary activities:
1. Inbound logistics
2. Operations
3. Outbound logistics
4. Marketing and Sales
5. Service

18.  Support Activities-These represent the firm’s actions that, while not directly
related to the transformation process, are nevertheless necessary to enable it. The
classic value chain identifies four support activities:
1. firm infrastructure
2. HR management
3. Technology development
4. Procurement
 Example :- Human Resource management activities

19.  On June,2006,an IBM commercial became worldwide
famous:-
https://www.youtube.com/watch?v=eob532iEpqk
 At end of the commercial it says "This is the future of
e-business”

20.  A firm has relationships both upstream and downstream.
 In other words, the firm’s own value chain exists in a larger value network that
comprises the firm’s suppliers upstream and the firm’s customers downstream

22.  The CSLC breaks down the firm-customer relationship into 13 stages, grouped into
four primary phases:-
Requirement- the customer realizes
the need for a specific product or
service and begins to focus on its
attributes.
Acquisition- the customer orders,
pays for, and takes possession of
the product or service.
1.Ownership- the customer has the
product or the service and must deal
with issues regarding its efficient and
effective use.
1.Retirement- the customer may
begin to think about repurchasing,
trading in, or dismissing old
products.

23. Requirements
• Establish
Requirements
• Specify
Acquisition
• Select source
• Order
• Authorize and
pay for
• Acquire
• Evaluate and
accept
Ownership
• Integrate
• Monitor
• Upgrade
• Maintain
Retirement
• Transfer or
dispose
• Account for
Each of the four main phases is then further broken out into
subphases, or stages

24.  In the physical value chain, information is treated as a support element, designed to
enable the physical activities of the value chain.
 The virtual value chain model uses the same logic but recognizes information as the
entity

25. DistributeSynthesizeSelect
• Users identify
and extract the
needed data
from the data
repository
Organize
• The firm stores
the gathered
data in a way
that makes later
retrieval and
analysis simple
Gather
• The firm
collects
information
from transaction
processing
systems
• the firm
packages the
selected
information
• the firm transfers
the packaged
information to its
intended user or
customer.

26.  The proponents of the virtual value chain offer three classes of strategic initiatives
that firms typically create.
Strategic
Initiatives
Visibility
Mirroring
Capabilities
New Digital
Value

27.  Visibility-The ability to “see through "organizational process previously treated as
black box
 For Example:-Coca Cola Freestyle Dispenser

28.  Mirroring Capabilities-The ability of transforming physical activities into
information based ones
 For example- Think about the Ergo Bike Premium 8i from Germany’s Daum
Electronics

29.  New Digital Value-Creating relationship with customer
 For example:- Netflix

30.  There are certain initiatives that are
taken using customer data and
information to do something of value of
a company.
 Some analysis are required in order to
do so :-
 Value Proposition :- At its most basic, it
answers the question: “Why do customers
buy our products?

31.  The Dimensions of Decision Making:-
Repurchase and
Customizability
Theoretical
Repurchase
Frequency
Degree of
Customizability

32.  Theoretical Repurchase Frequency:-
Regularity with which the average
customer acquires goods and services
offered by the firms. Example-Mc
Donald's
 Degree of Customizability:-The extent
to which the product or service your
firm offers can be tailored to the
specific needs and requirements of
individual. Example- Hotel Industry

33.  General Customer Data Strategies:-
Personalization
Strategy
Rewards
Strategy
Acquisition
Strategy No Potential

34. Identify relevant
transaction
processing
systems (TPSs)
Inventory data
currently
available in these
systems
Conceptualize
initiatives that
use the available
data
Prioritize among
the selected
initiatives

36. Trade-offs
• Projects that
have significant
upside potential
but rely on
information that
is not readily
available
• Consequently
tends to be quite
costly.
Imperatives
• Projects that
have significant
upside potential
• Rely on readily
available
information.
Quick Wins
• Projects that,
while not having
much upside
potential
• Can be readily
implemented
based on
immediately
available
information.
Losing Causes
• Projects that are
deemed to have
little upside
potential
• Rely on
information that
is not readily
available.

37. An Innovative Platform for managing a great and unique
Guest Experience

38.  The case centers on the dilemma faced by Carlo Fontana
 He is owner-operator of a small chain of two four-star urban
hotels located in Lugano, Switzerland, and the other in Milan,
Italy
 He developed an extensive customer service and operations
information system, called Happy Guests Relationship
Management
 Doing so may provide a welcome new source of income during
the greatest economic slowdown in recent history

39.  Hospitality had dramatically changed
as hotels catered to increasingly
techsavvy, time-starved, impatient,
global travelers
 Tech-savvy customers had embraced
the Internet and were increasingly
shopping online
 Greater access to information made
it increasingly difficult for hotels that
provided undifferentiated products
(i.e., travel commodities), to sustain
premium prices

40.  Before the trend of usage of internet
was limited to traditional computer
 But now, there is an easy accessibility
of mobile internet connectivity which
gives acceleration to sites like Trip
advisor

41.  Customer Relationship Management (CRM) had
been proposed as a solution to the increasing
commoditization of hotel services since the
early 1990s
 But the limitation for CRM implementation was
 Complicated in such a people-intensive business
as hospitality
 Complicated by the need for significant
personalization for each and every guest

42.  The need for an information system that would help the hotels under
Carlo Fontana management to better structure their relationship with
customers
 For example, the Berna hotel paid as much commission to
Booking.com as it paid in rent to the building owner.
 He discovered that four-star hotel could, with the help of technology,
provide a five-star level of attention to its guests.

43. Carlo Fontana Paola Fontana
Benea
Riccardo
Capellini
Davide
Bernasconi
Silvia
Gasparini
Alberto
Capellini
Sabrina
Dandrea

44.  The HGRM system went live, in its first iteration, at the Hotel Lugano Dante in
November 2009 with the reservation confirmation module.
 Through their personal page prospective guests could immediately see all the details
of their reservation
 One of the key design principles in HGRM was user friendliness and ease of use for
everyone using the system.

45.  The application triggered increased levels of communication and attention
immediately shifted to the quality of that communication.
 HGRM would need to define e-mail templates and then make them available in
multiple languages
 HGRM would require redesign of the current housekeeping system
 As standard practice in the hospitality industry was that housekeepers relied on
paper to manage their “rooming lists.”

46.  It is a need for every industry to innovate themselves with the time also keep on
renovating them to stay in the market
 The HGRM was a step-in order to increase the business in the hotel industry which
focused on the customer relationship
 The results obtained from this innovation were beneficial for Internal and external
of the operations
 There was an acceleration in the financial field too