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Case Analysis (35 points)

Overview: This case analysis assignment, as well as Chapter 6’s DQ, are both based on Chapter 6 Case: Outrigger Hotels and Resorts. Please complete this assignment first, since it serves as the basis to work on this week’s DQ.

Instructions:

  1. Read Outrigger Hotels and Resorts: A Case Study
  2. Copy questions on the next page to a Word document. Answer all questions and save the Word file. Name the Word file as “First name+Last name_ Case Analysis” (Example: JohnDoe_Case Analysis).
  1. Submit the above file via “Case Analysis” link in Blackboard by due date specified in Course Schedule. Remember to first attach your file, and then click on the Submit button at the bottom of the page to submit the assignment.

Guidelines: your case analysis should follow the guidelines below:

  1. First copy the questions into your Word document, and then type your answer under each question. If there are multiple sub-questions, use bullets or numbering to highlight your answer for each sub-question.
  2. Relate your answers to the material provided to you in the questions. Use vocabulary that we are studying. If asked for an opinion, you should support your opinion with fact and concepts from the course material.
  3. Write answers in your own words. Do not copy verbatim from the textbook, the case, or other material. Cite the sources when you need to refer to ideas from these resources.
  4. Use a spelling and grammar checker – good writing counts as part of your grade.

See questions on the next page.

1.(18 points) Perform a brief SWOT analysis for Outrigger Hotels and Resorts.

oIn bullets format, identify at least three points for each cell in the table below (like the example I gave, you can just use short phrases instead of elaborating on each point; but the bullets still need to be clear about what it is about this point that makes it a strength/weakness/opportunity/threat).

oNote that at this point of case analysis, do NOT think in terms of IT or information systems but rather in terms of general firm strategy.

Strengths

  • Strong relationships with wholesale (this is an example; please identify at least three additional strengths)
  • Less brand recognition as compared with major brands (this is an example; please identify at least three additional weaknesses)

Opportunities

Weaknesses

Threats

2.(17 points) How well are current IS resources serving the needs of Outrigger Hotels and Resorts?

oRefer to textbook page. 178-179 and identify IS resources in the following three categories.

oIn bullets format, identify at least three IS resources in each category and discuss in a sentence or two how well each resource is serving the business needs.

oIt will be helpful to use Sidebars 6.1-6.3 on p. 179-180 to aid your assessment of IS resources.

Technical Resources

(this is an example; please identify at least three additional technical resources) Stellex is aging but still thought to serve the firm well.

Data and Information Resources

Human Resources

———————————————————

o1.(12 points) Perform a brief SWOT analysis for Outrigger Hotels and Resorts.

oIn bullets format, identify at least three points for each cell in the table below (like the example I gave, you can just use short phrases instead of elaborating on each point; but the bullets still need to be clear about what it is about this point that makes it a strength/weakness/opportunity/threat).

oNote that at this point of case analysis, do NOT think in terms of IT or information systems but rather in terms of general firm strategy.

Strengths

  • Outrigger has the largest market share of the Hawaii market
  • Its hotels are in Prime Location
  • The firm has a very low Employee turnover which translate to stronger institutional knowledge retention
  • Exceptional guest services
  • The web Electronic Interface integrate well with the online wholesalers
  • Firm captures and possess extensive Marketing Data
  • Strong rooted local knowledge and community ties
  • Online reservation intake would enable it to receive and process more reservations and more efficiently.
  • Effectively incorporate extensive
  • Partnering with online brokers would give the firm a competitive advantage over its competitors who lag in joining the online adaptation.
  • Inherent friction with its centralized IT infrastructure
  • The firms’ inability to incorporate marketing data into operations poses loss of opportunities.
  • The limited technology options the firm offers in its properties could lead many of the online savvy guests to book with competitors who offers those features.
  • The larger hospitality firms
  • Small individually ran condominiums
  • Commoditization from online one-stop reservation brokers.
  • To maintain our leadership position in our markets by strengthen the electronic relationships with distributors.
  • Effectively integrate the firm’s extensive customer database into daily operations to drive internal communication and operational efficiency.
  • Enable the firm to expand and compete in a wider market by establishing a robust connection between all the firm’s properties in order to drive synchronous communication of data between properties.

Opportunities

marketing data into operations would help the firm streamline its operations to improve productivity and enhance customer services.

Weaknesses

Threats

2.(18 points) How well are current IS resources serving the needs of Outrigger Hotels and Resorts?

oRefer to textbook page. 178-179 and identify IS resources in the following three categories.

oIn bullets format, identify at least three IT resources in each category and describe each resource in a sentence or two.

Technical Resources

The firms only outsourced its website. All other applications are managed by the firm’s in-house IT groups.

The firm’s IT system is centralized which provides the firm with needed competitive advantage.

There are no servers kept in any of the properties in Hawaii.

A service level agreement in concert with traditional metrics are used quantify and report on progress.

Data and Information Resources

The firm captures data, including sources of business, stay information and guest consumption

E.piphany provides excellent data mining capability for the firm for the purpose of data captured by Stellex.

The IT group serves as custodian on the data, though user with the proper clearance can access it thru a web interface.

Human Resources

The firm relies on 26 full-time IT staff to support it’s IS infrastructure

The IT team were broken down into 3 groups: Alan White leads the IT solution ream for the hotel; JoAnn Okawa leads the back-office group, and Bob Owen leads the group managing the data center.

The firm’s IT professionals are able to perform routine maintenance and upgrade to Stellex and build XML interfaces for its website.

  1. (25 points) What should be, in your opinion, the role of the IS function at Outrigger Hotels and Resorts?
    • Refer to the Strategic Impact Grid in textbook page 182-184 and identify which quadrant Outrigger Hotels and Resorts falls into.
    • Explain why according to your analysis of the firm’s IT needs along the two dimensions in the grid (in at least 4-5 sentences). Please provide information specific to Outrigger when you analyze its IT needs along the two dimensions. For example, if you argue that the firm’s future need for new IS functionalities is high, please state what specific emerging systems and functionalities are responsible for this assessment. If you argue that the firm’s future need for new IS functionalities is low, also explain why.
  2. (25 points) Articulate the IS vision for the firm.
    • In answering this question, please refer to the Information Systems Vision section in textbook page 181 and use Sidebar 6.4 as an example, articulate the IS vision for Outrigger Hotels and Resorts in a similar format, i.e., the vision should starts with a paragraph that states the strategic role that IS function plays, followed by at least three bullets to show what IS function will do with information.
    • When I grade this question, I will not be concerned with what exactly you suggest the IS vision should be. Rather, my main focus is on internal consistency of the overall plan (i.e., your answers to questions 1-4 should not have contradictions among them), especially consistency between the vision (question 4) and the position of the firm on the strategic grid (question 3).

Which quadrant does the firm fall into? (5 point)

Factory Quadrant

Analyze whether the firm’s current need for reliable IS is high or low. Explain why in 4-5 sentences. (10 points)

Based on the facts in the case, including the industry in which Outrigger operates, it is clear that Outrigger’s IS infrastructure is designed to exceeds those of its biggest competitors, and to operate with the efficiency and effectiveness that gives it competitive advantages. This requires a strong reliance on a stable IS system for reservation intake, interfacing the firm’s website with online wholesale booking agents, reliable communication between properties, dependable POS, etc. This illustrates the firm’s reliance on its IT infrastructure it’s daily business operations. Relying on these facts, therefore, it is reasonable to conclude that the firm’s current need for a reliable IS system is high.

To further illustrate this conclusion, the firm places significant weight on its legendary guest services culture, it’s brand recognition, locations and other competitive advantages. Nonetheless, senior executives still recognize that the firm must maintain its current technological edge over its larger competitors in order to beat back the increasing competition.

Additionally, although senior executives believe that the current technology capability of the firm is adequate, and they don’t foresee any short-term need for significant system upgrades and/or changes, the firm nonetheless maintains a 26 group of highly motivated full time IT staff who possess deep expertise of the Outrigger’s IT infrastructure on payroll in order to perform regular maintenance and support, and to building enhancements that augments the firm’s IS strategic objectives.

Analyze whether the firm’s future need for new IS functionalities is high or low. Explain why in 4-5 sentences. (10 points)

Although the firm’s current IS structure is adequate, it is evident that the firm will have to develop a future IS plan that not only maintains its current advantages, but one that also captures new opportunities as it faces new competitors and increased competition – both traditional and new forms (i.e. Airbnb).

Of course, as competition in the reservation space as well as in the hospitality space intensifies, customers’ loyalty will change, and demands will also increase. Specifically, due to demographic (baby boomers to millennials) and technology shifts (wireless, AI), the customer demands for technological services will be a determinant factor when booking for a leisure venue. Therefore, Outrigger would have to provide IS functionalities that respond to these sorts of changes in the market such as stable “free” wireless services. Competition and customers’ demand will also necessitate quality and effective reward systems across the brand locations.

The firm would also be well served to add functionalities to its database system that captures and populates guests’ history and incorporate it usefully into daily operations.

In the final analysis, the company’s future need for new IS functionalities will be high as the firm competes, plans and designs its future IS vision.

State the strategic role that IS function plays in 2-3 sentences.

The IS function will continue to be an integral part of the Outrigger’s strategy. Although the firm leadership believes that the current IS function is adequate, it is cognizant of the need to thoroughly study the current infrastructure and develop a vison for the critical future role that the IS function will be tasked to lead.

State at least three bullets to show what IS function will do with information.

We will use information to:

State at least three bullets to show what IS function will do with information.

We will use information to:

· To maintain our leadership position in our markets by strengthen the electronic relationships with distributors.

· Effectively integrate the firm’s extensive customer database into daily operations to drive internal communication and operational efficiency.

· Enable the firm to expand and compete in a wider market by establishing a robust connection between all the firm’s properties in order to drive synchronous communication of data between properties.