Role of Information System Strategy Literature Essay

Abstraction

Information System Strategy ( ISS ) literature has a important function to play in developing and spread outing a business.A Systems development is the agencies by which the chosen applications indentified during ISS will be designed, developed and implemented within an Administration. The ISS by and large accepts as a given the executions of the strategic purpose through systems developments activities. For illustration – Ward and Peppard ( 2002 ) recognised and agreed that the world of ISS scheme execution is non every bit simple as first understood. Idealization or conjectural purpose is non basically guaranteed, so the programs may necessitate alteration and redisposition to incorporate updated demands, demand precedences, the substructure slowdown and mechanisms for supervising internal/external and business/IT facets.

on this thesis, I chose Sheraton Athlone Hotel ( SAH ) , Co. Westmeath, Ireland. The ground I decided on Sheraton Athlone Hotel is because it is my current employer for the past 2 1/2 old ages and this helped me happen educational/business information necessity to utilize in this thesis. I do believe that using Weil & A ; Broadbent theoretical accounts will assist me to analyze the Business Information Systems ( BIS ) in SAH.

Established in 1942, The Starwood trade name has gone from strength to strength, it includes worldwide good known names, The Sheraton, Le Meridien, The Four Points Sheraton, The Westin, They besides have a Luxury five star hotels include The Saint Regis and The ‘W ‘ trade name Hotels. In 1960 ‘s, 3 hotels were purchased in Boston, and shortly after that 6 more Hotels from Maine right across to Florida. The initial of Sheraton day of the month back to early 1937 when the laminitiss, Ernest Henderson and Robert Moore, obtained the first belongings in Springfield, Massachusetts. Following two old ages, they purchased three hotels in Boston and shortly expanded their retentions to include belongingss from Maine to Florida. Sheraton crowed a portfolio of more than 400 hotels in 70 states including stunning and modern universe category hotels.

SAH is a four star hotel and offersinimitable watering place facilities,167 epicurean sleeping rooms and suites with many affording brilliant positions over the River Shannon.

The Benefits of IT use in SAH

Information System ( IS ) with concurrence with Satellite/Wireless Technology, the IT investing portfolio playing of import functions in current clime particularly in cordial reception industry. Weill ‘s and Broadbent ‘s reviewed that an attack which combined all investing determinations such as costs, hazards and benefits of investings into one incorporate process.

My surveies show that the strength of the Sheraton Group and the long-run mentality depends vastly on advanced IT programmes. I understand that the rating and measuring methods are invariably being developed to undertake that hard but the Balance Scorecard still playing outstanding to gauge the concern and scheme which was developed by Robert Kaplan and David Norton. Here, I do hold 12 sub-topics the challenge of success of adaptation of IT in SAH.

Based on old analysis, ( Duncan 1995 ) stated IT substructure consists a group of mechanism, IT resources that provide a foundation to let present and prospect concern operations ( Broadbent & A ; Weill 1997 ) .A These resources include:

• Computer hardware and package
• Network and telecommunications engineerings ;
• Core data-processing applications
• Integrated IS direction.

How does IT presently help SAH to run mundane concern?

1. Reservations: OPERA Reservation – integrated with other plans ( profiles, hard currency minutess, updating single, group, reserves direction room blocking, and conference and banqueting direction ) .

e- Commerce playing critical function in SAH via on – line reserve. e – Commerce and e – pool alive and good in concern to concern minutess as diagram below and of import communicating between seller via EDI ( Electronic Data Interchange ) through VANs ( Value-Added Networks ) .

E – Commerce can be broken into 10 chief classs: B2B, B2C, C2B, and C2C. G2G ( Government-to-government ) , G2E ( Government-to-Employee ) , G2B Government-to-Business ) , B2G ( Business-to-Government ) , G2C ( Government-to-Citizen ) , C2G ( Citizen-to-Government ) are other signifiers of ecommerce that involve minutess with the authorities – from procurance to registering revenue enhancements to concern enrollments to regenerating licences.

The competitory scheme of e-commerce in SAH:

1. CSF of development of e-commerce schemes has been highlighted:
   • Ensure the undertaking is backed by a senior direction.
   • Develop a scheme:
   • Before developing a Web presence.
   • Concentrating on engineering, branding service.
   • IT substructure
2. Rate Management: The OPERA Property Management System ( PMS ) offers a wide-ranging set of plans automatically control rates, and for gross statistical. PMS interface with the OPERA Revenue Management Systems.
3. Profiles: OPERA ‘s PMS provides – complete demographic records for invitees and concern histories. Opera able to link CRM to analyze guest experience. Customer Relationship Management ( CRM ) – is to better long-run growing and profitableness through a better apprehension of client behaviour. In the compartment complecting CRM, Customer Experience Management ( CEM ) playing important function to roll up machine-controlled information in SAH.
4. Front Desk: Arrivals and in-house invitees direction – room direction, invitee messages and wakeup calls etc.
5. Back Office Interface: Gross relocate, statistics and metropolis leger transportations can be easy made via OPERA to finance section.
6. Rooms Management: Rooms Management manage all aspects of room disposal together with handiness, housework, care, and installation direction.
7. Cashiering: Including revenue enhancements and other generates ) , doing posting redacting and progress sedimentations, completion, check-out procedure and pagination printing. Cashiering methods including currency, check and hundred cards via Point of Gross saless Systems ( POS )
8. Histories Receivable: AR is integrated with the OPERA Database Management Systems ( DBMS ) and includes measure direction via Opera Financial Enterprise System.
9. Coverage: OPERA stamp over 360 studies. Reports can be modified and new studies can be created with constitutional Report Writer.
10. System Interfaces: OPERA PMS integrated and interconnected with – Eircom phone system, video amusement – Pay-tv, Key-lock – Micros Ving-Card, POS, and Virtual-Spa Systems.

From my analysis, there are certain countries “must travel right” to guarantee that foreordained “goals” are targeted. Therefore, CSF s represents precedency subdivisions for on – traveling data/information judicial admission for determination – devising. For illustration, in SAH concern reappraisal, if the aim to increase room gross, so the CSFs elements is to pull off the figure of suites sold and room rate charged.

Average room rate and RevPAR 1 to supervise the consequences.

1 revpar = tenancy rate A- mean day-to-day room rate

Strategic Information Systems Planning

Applications in Strategic Information Systems ( SIS ) , Management Information Systems ( MIS ) and Data Processing ( DP ) country need to pull off harmonizing to their existing and prospect engagement to the concern in SAH. A portfolio theoretical account imitative from McFarlan ( 1984 ) considers the engagement of IS to the concern impact in SAH and theoretical account applications are divided into 4 classs, as below:

Strategic Applications are important for future success, illustration: Opera integrated nexus to HQ in US	Turnaround Applications are important future strategic importance, illustration: electronic mail or informations interchange with other belongingss.
Factory Application – critical to prolonging bing concern, illustration: employee DBMS, guest birthday	Support Application – good direction and “recital” but are non critical to the hotel concern, illustration: clip sheet, staff birthday

A feature of SISdevelopment are:

1. Main mission: strategic advantage, relationship to concern scheme.
2. Purpose: pursuing chances and integration IS
3. Direction from: top direction and clients, alliance of clients and IS.
4. Chief indicant: commercial, multiple ( bottom-up development, top down analysis ) at the same clip.

Research Methodology

In order to research an experience of public presentation measuring of SAH, practical research carried out with hotel directors and employees. This survey included research into CSF ‘s in hotels and interviews offered an chance to analysis CSF of the hotel. See below tabular array of the CSF ‘s the success factors were highlighted.

Customer Expectation and CSFin SAHotel.

To derive a better apprehension of the SAH, this survey explored the nature of CSFs hotel operations and development in Internal and External concern scheme as diagram below harmonizing to invitees, engineering disposition, authorities statute laws, and hotel stakeholder. In peculiar, the research inquiries are:

What are the:

• most important factors set uping the success of SAH?
• different point of view towards CSFs among clients, investors, and governments?
• countries should hotels concentrate on to better function their invitees

Phases of development in Strategic Planning

The above diagram adapted from Ward 2004

The Strategy of Implementation of Information System Strategy in SAH

Increasing population, internationalization concerns and advanced engineering hold given blowhole to new and customized cordial reception solutions. With popularising hotel industry was happening it hard to manage the complex DBMS. To do the procedures hassle free, hotel package has developed to supply efficient working environment. Harmonizing to Peansupap ( 2004 ) , three chief countries where IT can convey benefits to hospitalization sector as illustrate in diagram below:

The diagram above show ends and ( Internal & A ; External ) Strategy are critical to SAH – a foundation for finding what information is needed by direction to estimate their public presentation. The use of CSF analysis is explained whereby the features necessary to the success of a concern can be identified.

Case Analysis of IS execution in SAH

Systems betterment planning must be kept to a lowest to let for “revolutionizing” and version, with a focal point on the bringing of the IS and the high-ranking execution issues ( Lientz and Rea, 2001 ) . This attack should guarantee a grade of formalistic good planning to enable control and purposes to be realised but besides guarantee that the systems development public presentations integrate a grade of flexibleness to suit alteration.

Enterprise Resource Planning ( ERP ) continues to saturate in SAH and have taken Business Process Re-engineering ( BPR ) to new boundaries. Organisational-wide IS are now being developed and implemented by dedicated ERP administrations in SAH. However, these IS can hold a immense impact on an administration:

From my research the Technology Leadership – McKinsey ‘s 7s was utile the undermentioned intents:

• Organization alliance or public presentation betterment
• Understanding the nucleus and influential factor
• Determining how best to realine to new scheme
• Analyzing the current working and relation in SAH wonts

The SAH ability to better an organisation and win over new clients in a really competitory market

The theoretical account below, made by the Mckinsey depicts the mutuality of the elements and indicates how a alteration in one affects all the others. Here is the 7S theoretical account that portrays seven elements helps me:

• To indentify how better the public presentation in SAH and besides other organisations.
• Analyze the likely effects of future alterations.
• Support sections & A ; processes during amalgamation.
• Establish the best to use a proposed scheme.

The Top of Critical Success Factor of Sheraton Athlone, adapted from Ward and Pappard 2002

CSF ‘s Analysis and the keys countries of Business Strategy Development

CSFs analysis can be measured to be impact every bit good as an alignment methodological analysis. CSF in the context of IS are used for understanding the aims and operational actions in footings of chief information demands of the SAH directors and strengths or failings of the bing systems. Rockart ( 1979 ) describes “CSF as being for any concern the limited figure of countries in which consequences, if they are satisfactory, will guarantee successful competitory performance.” The diagram below show that CSFs are exists at a figure of degrees and represents the cardinal countries indicants to follow up for the concern scheme development.

Consequently, CSF is countries of motion that should be uninterrupted and careful attending by the direction, Rockart chiefly developed the CSF “emerge” as a agency to considerate the data/information necessitate of CEOs. The attack has accordingly been functional to the ES as a complete and has been derived into a broader betterment methodological analysis. CSFs at a poorer degree are derivative from those to the predating upper degree. The CSF established IT/IS into the preliminary phases of the planning procedure and supply a sensible rating of the IT ‘s part to the SAH.

Strengths:

CSF analysis provides influential technique for concentrating on cardinal information demands of industry component, or director. This allocates the direction to concentrate resources on developing IT/IS around these demands. Hubbard ( 2004 ) directs his definition of ‘strategy ‘ at making value for clients every bit good as turn toing issues raised by rivals. And besides “Those “pronouncements” which have high or medium to long term impact on the activities of the administration, including the “execution/implementation” of those “pronouncements” , to bring forth value for invitees and cardinal stakeholders to surpass competitors.”

Failings:

• Even though a constructive and extensively used method/technique, CSF analysis is non sufficient to accomplish extended ranging of IS – it does non sort information architecture or offers an machine-controlled facilitates for analysis.
• To be estimation, CSFs analysis minimally and uncomplicatedly related back to the aims of the industry unit under rating. It has been the experience by utilizing this technique by and large “dropped” its rating at the 3rd degree in an organisational hierarchy ( Ward, 1990 ) .
• CSFs focal point chiefly on direction control and therefore thin to be internally focussed and methodical instead than originative.
• CSFs do non pull attending to the value-added facet of information systems. While CSF analysis facilitates designation of information systems which meet the cardinal information demands of an organization/business unit, the value derived from these systems is non assessed.

The direction issues were:

Deriving concern value from current investing in IT and accomplishing alliance between concern and information schemes. The directors or stakeholders have to recognize the potency of IT to do a important part to improving of invitee services and did non to the full understand the size of the IT investing and did non believe that IT provided a quality service.A The 2 engineerings issues were development and execution of an IT substructure, the application of Client Server Architecture ( CSA ) , and mechanisms for the constitution of “interorganisationals” Electronic Data Interchange ( EDI ) .A A Implementation and proper IT substructure was seen as peculiarly imperative, and was viewed as a manner of a accomplishing the long term strategic aim of an organisation, while keeping flexibleness and incorporating cost.

IT Governance Coverage in SAH and indispensable to the Stakeholder.

IT administration covers 5 relevant focal point subdivisions, which are all driven by stakeholder value. The 5 subdivisions are significance bringing and hazard direction and other three countries are strategic alliance, resource direction and public presentation steps. They are showed as below:

The above shows the relationship between 2 elements which are the value bringing and strategic alliance with the debut of associate elements ( hazard direction and public presentation measuring ) that are non straight mentioned in the IT administration definitions, but play an of import function in the administration of IT in SAH.

This life rhythm does non take topographic point in a vacuity. ES, CR and SupplierRelationship Management ( SRM ) control in an environment that is influenced by: A A A A A A A A A A A A A Stakeholder values ;

The operation, disclosure and values of the endeavor ;

The community and SAH moralss and civilization ;

Applicable Torahs, ordinances and policies ; and Industry patterns.

Business and Information Systems Alignment

The manner Business / IT alliance is conceptualized and measured differs within this research. In surveies, alliance is interpreted as the grading of adulthood in the concern and IS sphere. Alignment is besides considered as the lucifer between the type of IS and the formation or civilization of an organisation. Although these differences, the Strategic Alignment Model ( SAM ) as introduced by Venkatraman in 1993 serves in many instances as the theoretical starting point. As below diagram explained that the impacts and aligns among 4 substructures: IT Portfolio, IS Strategy, Environment and IT Portfolio.

IT investing portfolio which introduce Weill ‘s and Broadbent ‘s mentality is an attack which aggregates all investing appraisals such as costs, hazards and wage of investings into one incorporate process ( Weill and Broadbent, 1998 ) . Several challenges are noticeable in set uping what benefits a current portfolio may convey to planetary organisation. Capabilities and capacitates of literature are invariably being developed to undertake that trouble. The most outstanding methods remain a Balanced Scorecard ( BSC ) which was ab initio developed by Robert Kaplan and David Norton to apportion concerns to measure corporate IS/IT and on the whole to drive their schemes based on measurement.A

Broadbent and Weill described diverse barriers that organisations have experienced in alining concern with IT. The look barriers take topographic point from the organisation ‘s strategic context and from top direction behaviour, including deficiency of way in concern scheme and altering strategic purposes. This consequences in unequal apprehension of and irresistible impulse to the organisation ‘s strategic focal point by operational direction.

Specification barriers occur from the fortunes of the organisation ‘s IT scheme which ends up in a state of affairs where concern and IT schemes are set in isolation and non adequately related. The nature of the organisation ‘s current IT portfolio creates execution barriers, which happen when there are methodological, political, or economic limitations on the current substructure.

Recommendations

As per my concern, Sheraton Athlone Hotel can be fall ining together with other 2 sisters ‘ hotel to centralise the reserve squad. The analysis above thesis showed that the fiscal indicates how the concern running in organisation. Therefore, a group reserve would be suited to the current clime in order to cut cost, easy chief staffs and control productiveness and quality. As many organisations centralized their call Centre for illustration 3G, Dell, and Amazon etc. Yes, this could be difficult but there is manner by utilizing below method:

Stairss of developing of group reserve system

Adapted from Ward & A ; Peppard ( 2002 )

Finally, there are many other factors that are critical for effectual SISP, including high-levels of ingeniousness, the demand to concentrate on execution and the alliance of concern and IST ( Doherty 1999 ) . Furthermore, there is a demand to oppugn beliefs, highlight cardinal premises about current and future concern demands, review the benefits of SISP and derive senior direction engagement in the procedure ( Galliers, 1991 ) . Clearly, these issues are concerned with what must be considered and what facets are critical during SISP, exemplifying an highly complex state of affairs. What is still missing is the literature is an in-depth history of the procedures involved in how administrations cope with and get the better of the complexnesss of SISP.

Decision

Based on literature overview, I believe that farther advancement can be made in the field of business/IT alliance by theoretically explaining the function of IT administration, and practically analyzing the IT determination doing within organisation as a extremely relevant. From side to side tendencies Business Process Management ( BPM ) , Enterprise Application Integration ( EAI ) and Business Process Outsourcing ( BPO ) , the development of delegating determination rights and answerabilities for IT resources within organisations has become critical. With the deputation of actions to IT suppliers [ both internally as externally ] , IT direction and IT administration has become both more strategic and multifaceted.

I have gone through the benefits and barriers that are associating Information System Strategy and using Weil & A ; Broadbent theoretical accounts. The theoretical accounts can be a company ‘s best doctrine or methodological analysis when it is used exactly, nevertheless if non it will non give much salvaging for a company. It is best suited for in appropriate clip and administration every bit good.

My overall research does non urge that a company “blindly” put in topographic point the IT literature and political orientation from Weil & A ; Broadbent without proper cognition, research, technique, methodological analysiss and analysis for a term of “completed the paper work” . Nevertheless, for that grounds, the research with SSM and Enterprise System life rhythm playing important functions of the developing profitable to situating of the planetary administration in the international economic system.