Coursework Title : Strategic Evaluation Document for Grunge Hotel

COMP1647 : Information Technology Planning

Center : KMD Institute (Myanmar)
Date :1st Nov 2018

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Table of Contents
1. Introduction............................................................................
 Background ………………………………………………………………….2
 Issues……………………………………………………………………………3
 Moving Forward……………………………………………………………4
2. Strategic Evaluation ………………………………………………………………
 SWOT Analysis……………………………………………………………….5
3. Impact of IS ………………………………………………………………………….….6
 Major Change…………………………………………………………………6
 Type of Information…………………………………………………….…6
 Biggest organizational changes……………………………………….7
 Outsourcing………………………………………………………….…….....8
 IT Disaster Recovery Plan…………………………………………….….9
 Persuade to Managing Director…………………………….………..9
4. References……………………………………………………………………………….10

1. Introduction
Background
Grunge Hotel Group established since 1991 and which is corporate 43 based in the UK. This
hotel is good rating on website. Most of employee are eastern Europeans who are highly qualified in
renovating with expertise. The Managing Director want to change their current situation and his vision is
to become the number one hotel group in UK with that accommodation at cheapest prices.

At the moment, their building need to do redecoration to be better and they found the best way
will be suitable to convert with very low price. So, they will hope to attend an auction to get sale
properties. As a result, currently they do not use IT system and manually run recording bookings and
financial transactions, expecting to change IT system.

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Issues

(1) Run down their premises

They need to do renovating for dilapidated premises because it is essential to get a massively
attractive from customer and to increase customer members.

(2) Change Policy

This is one of the issue for hotel. Most of employee are eastern Europeans and they have to
leave from UK who are not holding passport according to government policy.

(3) Lack of fundamental IT & Current run manually the whole process

Hotel is not using IT system currently. So there have many risk and problem such as recording
booking manually only taken with phone and can’t get customer expeditions what is the best
way to choose option for booking not only by phone. (eg. Online booking)

(4) Finance staff and director don’t have appropriate qualification

All of financial transactions & accounts books are below the expected standard because staffs
have no highly appropriate ability to operate work.

(5) Some manager is reluctant to change

They don’t change to IT system and prefer the old one because they accustomed all of
transaction running by manually and this way is comfortable for them.

(6) Managing director used to ignore employee’s suggestion

Ignoring suggestion from employees happed a lot of damage due to during the summer
thunderstorms of 2008 and water heavy rains of the autumn of 2000. This is indicating even one
suggestion, shouldn’t ignore and more important for developing organization.

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 (7) Lack of centralized manage

Each of the hotel is individually run and only daily report send to head office with no standard.
So, there have no control and connect with each other from head hotel. Lacking control impact
deeply down reputation for the whole image of organization.

(8) Can lose qualified staff

According to change policy, working at hotel employee have to leave from UK and most
of them are skill qualified and expert. So hotel has to hire expert people with high salary
in local and this is a huge impact on their business.

(9) Hiring external auditors

Hotel is hiring external auditors to check their financial transaction in order to standard
expected. So, cost extra budget for that and due to lake qualification of employing
financial staff.

(10) Hire IT technicians

If system develops in their hotel, the hotel has to hire IT technicians to pay salary, this
consequence will be increasing to charge for customer when they stay at hotel and may
sharply decrease or loss customer and it’s seriously against with the hotel ambition.

Moving forward
According to scenario, the first mission is to become number one in UK with cheapest
accommodation price. So they need to reduce unnecessary others thing and must focus their return on
investment. They hope to convert manually to computerize to save more money. Firstly, they have to
do decoration for renovating to get more attractive from customer. Besides, the group of hotel intend to
target employee who are school leaver and have qualification higher in local because currently working
some employee are lower in skill qualification. Otherwise, hotel expect to use computer system and all
the transaction control by the main basic hotel. But some manager hesitates and don’t allow changing to
IT system. So the hotel must encourage for them to be enthusiastic and accepting plan. During IT system
development, the hotel should think about that other competitor are how to give service customer and
need to consider the trend of customer expectation. Some staff are not skill in financial process. So, the
hotel must train for them to be better in professional skill and has to do training for a moment. If IT
system is successfully done, server and other software hardware devices need to maintain somewhere
safety place and this is proactive and prevent from risk.

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2. Strategic Evaluation
Strength
• Medical professionals recommend Grunge hotel group

• Good ratings on website

• Has enough money in hand to attend an auction

• Can pay below the employee’s salary according with average of the market

• Grunge hotel employees are highly skilled in renovating properties

• Hotel has large head office very well with substantial basement

Weakness
• Run down and dilapidated premises

• Hesitate & take time to develop an IT system

• Managing director used to ignore the comment of employee

• Lack of fundamental IT system, so they need man power instant of IT.

• All processed are running by manually

• Finance staffs have no appropriate qualifications

• Hiring the external auditor for checking financial data.

Opportunity
• Can get properties with very low prices from auction

• opportunity to get realistic ambition due to confidence of managing director

• No need to cost for storing place and essential equipment to develop IT system
• Can get qualified employee in local

Threat
• Weather problem (thunderstorms)

• Some managers can resign from their job due to set up IT system

• During doing renovating, competitors will get many customers.

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 • If system is set up to develop, hotel charges will raise higher.

3. Impact of IS
Major Change
Hotel need to change IT system is called “Booking Management System”. Changing to new
computerizing is more efficient and effective in organization.

In booking, there will include registration member such as customer detail info. Besides, system
can order booking from customer and we divided two categories such as member and customer. For
member, they will get discount, promotion service and others allowances. Customer can pay with credit
cart. So, the system will automatically calculate the charges depending on their discount and
allowances. Moreover, system will show room type and which room is available and not available to
stay for customer and can manage and support check in and out function. Firstly, they can apply room
reservation inquiry form. In this form, we will record their name, phone no, desire room type and
number of group people and so on. We will keep customer information as a record in the system
database. Besides, there will support reservation update and cancellation for booking. There can print
report for invoices, registration form, Rooms availability that if necessary.

Finance is part of system including in system. In this, partition authorized person and who can
only log in with user depending on their role and responsibility. Payment also include as a function for
each employee salary, expenditure and instrument of payment. All of payment will be proper record-
keeping and we categorize segregation of duties. For expenditure, the system will generate report of in
detail invoice exactly amount of budget. System will show which type of instructions expend with which
amount and also by showing daily, weekly and monthly income. if the Managing director wants to know
the business debt and profit for each hotel, it can easily show and automatically calculate and display
the remaining of profit amount from system.

So, the time is safe and faster and no need a lot of manpower. Furthermore, the system will
keep as a record with date for customer who is how long stay at hotel with other service. So, hotel
totally income will know by seeing this record and can manage payroll and do arrangement for each 43
of employee salary. The system will generate each monthly 43 of reporting profit and loss according to
each their income.

Type of information
Reports are not the same for hotel manager and managing director. Hotel manager has to
decide for only one hotel and make decision what is the best way to promote his hotel. But managing
director has to manage all of 43 hotels and analysis which hotels income are the highest and lowest.

Hotel Manager Managing Director

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 1 require daily or monthly income Each of 43 hotels total income report
2 require daily or monthly expend Each of 43 hotels total expend report
3 List the cost of accommodation and other Desire all of hotel list of accommodation and
service report (eg. Catering) service report
4 List customer daily room booking for check Analysis and compare which hotels are the most
in, check out to do booking
5 Manage customer feedback and complaints Analysis which hotel has the most customer
their needs complaints that is to prevent from loss of
customer
6 Check performance, Recruiting and Monitor all hotel of staff performance
monitoring for staff report
7 Need to know Customer information report Compare which hotel is increase the most
that which type of customer is mostly stay at customer stay
hotel
8 List hotel daily report that send to head Check daily or monthly each hotel performance
office
9 Evaluate weekly highest and lowest income Evaluate which hotel is lowest and highest
income
10 Analysis each weekly profit and loss of hotel Compare current weekly and the previous of
profit
11 List hotel resource damage or requirement Plan budget each of hotels resource requirement

Biggest organizational changes

Firstly, Grunge hotel group change their mission to be number one in UK with cheapest price. So
According to scenario, Customer charges are raising when developing system and this impact sharply
down customer members and against their mission. So, they need to change their marketing strategy
and should think how to reduce unnecessary expenditure for the whole business.

Recently the government policy change and most of hotel employee are leaving from UK. So,
the organization will face lack of qualified employee. If hotel employs new staff, it can’t be possible all of
employee are qualified with low salary. Initially, the organization need to prepare extra staffs who are
trained by qualified staff.

Culturally some existing staff position can change to another new department. So, their ability
and productivity can debase their low moral because they don’t exactly know how to work in new
department and can get stress being unknowns.

For processing, currently they do book via phone and all of booking is running manually. If all of
transaction will change to computerize, business process especially booking system will transfer to
online and all of booking data and others will keep in database as a record and customer can do book
not only by phone but also appoint room by using online.

Currently they want to change computerize from manually and they need people who must
have technical skill in IT. So, they will be choosing IT staff in their employees but who must be interested
in IT because if they don’t change their position and not interested in IT, it can higher chance to resign
from their work.
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 Organization should hire Trainer who must has expertise and well-know about technical skill and
providing training for them to be expertise in running system. So, technically the organization need to
do training for them to promote their existing skills.

According to scenario, if they set up IT system, head office will control all of transaction and go
to change organizational structure. This mean that 43 of each hotel managers and some staff can be
unemployed due to replacing IT.

Outsourcing
In organization, outsourcing is essential and useful when the local cannot effort that situation
and lack of qualified skill. Some of organization need outsourcing when that can be necessary and
impact on their expectation target especially in man power and technical skill.

According to scenario, firstly the grunge hotel need renovation building and they need
decoration people who are highly skill in renovating because they do not have that skill and to become
increasing customer member in their business.

Secondly, they are hiring external auditors and this is outsourcing from external because
employees are not appropriate skill in financial and this is the best way to correct their financial data.
But in future, organization need to do training for their financial staff or employ qualified financial staff
because external hiring staff can divulge and betray important information data to other competitor and
loss of data.

Thirdly, they want to change IT system in their business and they need developers and IT
technical person. So, they have to hire that person to develop running system from external. So, all of
transaction will be faster and accuracy data rather than manually.

Fourthly, Grunge hotel has 43 of branch and if they set up IT in each of 43 branch hotels, they
will train and support IT for every branch. In case, they do not have time to train and support resource
for every branch, they need man power and must hire outsourcing from external such as training
center. So, the training center will go all 43 of branch and teaching how to use system and provide
training for them.

Fifthly, they need to server maintenance and other service plan for proactive and reactive from
disaster when IT set up and all of server will store in some place. They must connect with server
company and how to prevent from disaster and get information instruction and training from them. So,
it something happens, server company will support and help not to loss their important data
information from disaster.

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IT Disaster Recovery Plan
Recovery plan is the most important from losing essential information data. If organization set
up IT, they need to plan for both of proactive and reactive of recovery plan before the risk of disaster.

Before occurring the disaster, it should have plan for procedure that if server is destroyed and
how to prevent from this risk and also make a new place to restore temporally as a backup from old.
Hotel has to plan for hot sites and cold sites. For hot sites for recovery plan, they must to backup such as
power, HVAC because it is useless if there is no power engine for running the whole system. Besides,
should think to add extra network backup, hardware, computer and other related equipment and plan
VM ware if necessary. It is expensive and high cost for organization but reducing from lose reputation of
organization and prevent from higher risk. Moreover, give training to staff how to prevent their essential
data if disaster occur and do practicing weekly or monthly. Organization also need to connected with
server company.

During the disaster, the responsible employee must be informed as much as possible and
prevent server not to damaged according to instruction before connect with IT professional Team.

After the disaster, Hotel manager need to do rerunning for their transaction as much as they
can and seeking help connect with their environment. Moreover, take extra equipment that is necessary
restoring for server and the organization will completely succeed within short time.

Persuade to Managing Director

The reason of changing to computerize is to be safe as possible as the whole of business’s
expenditure and to meet their mission. Besides, aim to reduce work load time and all of transaction to
be smooth and correctly data.

Firstly, if the business change to computerize system, business has to expand for system first and they
are following as -

 Deploy the system

 Installation system
 Appoint new staff
 Maintenance Cost
 Pay Training

The organization has to hire the developer team to write coding which support and deploy for the
whole system. So, the organization pay charges for that and cost some installation resources such as
network, PC, and other cables. Besides, normally it will usually do maintenance monthly or annually for
system and the organization need to consider for doing maintenance fees. Moreover, the organization
will pay salary for new technical staff who will use the system. If necessary, spend budget to support
training for them to be qualify.

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 At the beginning of developing system, it seems a lot of budget will expend but the organization
income will be increasing more than the previous stage. For example, currently customer has to book
by only phone. So as customer point of view, there can be line busy or lost connection when they call to
hotel and it causes disappointing for them and lost customer. But in system, they can choose both
phone or via mail, email and online booking for ordering room so that customer can book any time
using this system and that will be increasing business income and it differ customer satisfaction
between manually and computerize system.

Using system, there will save money and no need to pay salary for some staff such as clerks who
manage and keep manual accounts book and system will be substituting instead of them. Besides,
currently the hotel making order with paper sheet that store in somewhere. But there is no more storing
place or any paper when developing effective system. The important of fact is all of transaction and data
are quicker accurately and without error rather than the previous stage.

References
1. Holiday Inn Express Hotel [Online]
http://www.researchomatic.com/Holiday-Inn-Express-Hotel-809.html
[Accessed 04 Oct.2018]

2. Designing a Domestic Model for Classification and Grading Hotels in Iran [Online]
http:www.ijbssnet.com/journals/Vol-3-No-10-Special-Issue-May-2012/32pdf
[Accessed 08 Oct.2018]

3. University of Oregon (2009) “Key Stages of Disaster Recovery Planning For Time-critical
Business Information Technology Systems”

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