Perisher Blue Resort - Action Plan for Strategic Information System - Example

Perisher Blue Resort It Strategic Planning Customer Inserts His/her Name Customer Inserts Grade Course Customer Inserts Tutor’s Name 05, 10, 2010 Outline 1. Executive Summary 2. Purpose for IS strategy 3. Overview/summary of business strategy a. Internal/External Analysis of Business Objectives b. Environmental Assessment (SWOT etc.) c. Critical Success Factors 4. Business Process and Information Requirements a. Current systems assessment (findings) i. Examine how the changes will impact on existing business processes (using flow chart created in milestone) b. Business process redesign assessment (findings) i. Argument for new IS/IT opportunities 5. Recommendation(s) a. Applications b. Data c. Technology infrastructure d. IT management process 6. IT action plan a. Tactical plan i. Issues and problems arising from the strategy ii. Project implementation Schedule iii. Outsourcing considerations 7. Conclusion 1. Executive Summary This analysis addressees issue related to strategic information system of Perisher Blue Resort. It seeks to advice the resort on the best implementation strategies that will foster its information technology sector in the short term perspective and the long term perspective. The SWOT analysis provides the fundamentals consideration points of the recommendation necessary for the resort to consider, this analysis therefore provides recommendations on the application, data, technological infrastructure, IT management process and the most suitable IT tactical plan that seeks to establish issues that seeks to establish problems arising from the strategy among other factors. 1. Purpose for IS strategy Information System implementation is one of the most fundamental requirement for any organization that seeks to enhance its competitive advantage in the market. The implementation of the IS strategy has the potential of leveraging on the business process implementation and the organizational structure. The major purpose of IS is to manage of information flow and enhancement of communication protocols within and outside an organization. Perisher Blue Resort can take advantage of information system in the course of creating a more reliable and resilient administration system within and outside the resort. Full implementation of Information System requires that it be aligned with the business process and infrastructure of the organization. 1. Summary of business strategy Business strategy in this case is leveraging on Information Technology in order to bridge the market gap and consequently decrease the chances of competitors overtaking the resort in the market. In this case the usage of IS coupled with promotional strategies will aim at creating sustainability in a competitive environment. The SWOT analysis and the environmental consideration are the basis of the creation of the business strategy that seeks to solve the problems of the 21st Century resort issues. In summary the business strategy seeks to address business process information requirements and the best way of addressing the current problems using business system redesign (Ingman 2002). a. Internal/External Analysis of Business Objectives Internal and external factors of a business play a critical role in its success. In essence, the strategic planning of a business venture is usually supported to a large extent by the results of the internal and external factors commonly referred to as Strengths, Weaknesses, Opportunities and Threats (SWOT). The major business objective is to make profits and also be able to sustain its market niche for as long as possible. In this case of Perisher Blue Resort, the major objectives of the resort are to enhance its strategic placement by leveraging on technology as a means of achieving this objective. The reason for this rationale is to remain relevant in the ever growing market place. Transformation is necessary despite the rigidity that it normally attracts because of the people’s reluctance to change. The SWOT analysis of Perisher Blue Resort shows both these internal and external factors that have the potential to shape the future of the company. Strengths Perisher Blue Resort is the biggest ski resort in Australia which provides international class facilities. The coverage are of the resort is about one thousand two hundred and fifty hectares which covers about seven mountain tops, the connection is by about fifty ski lifts. The resort provides an extensive and varying snowboarding and ski which essentially enhances the experience in the resort. The terrain of the resort offers varying style and standards for both the beginners and experts of the skiing profession. This is mainly because of the enormous land and terrains at the disposal of the resort. Persiher Blue Resort has an extensive range of lodging styles such as cafes, restaurants and pubs. The other necessary facility at the disposal of the resort includes; police station, pharmacy, ATMs, children minding, supermarkets, news facilities, varying beverages, food outlets, post office and retail outlets. The accessibility of the resort is by road and skitube (the only Australian underground rack rail). There is a at no cost transport that is available throughout the day and occasionally extends to the night. For the visitors with their own cars, there is a wide range facility that offers free parking in several areas including Guthega and Presiher Valley. Weaknesses The resort clearly lacks homologates competition race courses with a high snow reliability which is both artificial and natural. This weakness inhibits flexibility for planning and carrying out competition under varying conditions. The resort also lacks diversification in terms of other activities that are not skiing for visitors with no intention of skiing. The resort has not maximized on its scope to ensure that necessary facilities are strategically placed at every point of the restaurant especially at the ski slope precincts. Opportunities The business has an advantage of leveraging on Information Technology through snowmaking technology which will greatly improve on the reliability of the snow cover at the resort. This will be beneficial to both the environment and operations in the resort. This strategy will increase the resorts competitive lead given that it will be able to assure its visitors availability of skiing activities all seasons. Snow fencing is another opportunity that the resort can enhance to promote snow accumulation in relevant areas, and also maximize snow accumulation in areas with significant wind exposure (Leavy 2003). Leveraging on technology for the management and operation of the business is also another chance for the resort to enhance its position in the market. Aligning technology and business operations will provide a fundamental basis for business sustainability and development. Threats The number of skiing resorts in Australia is expected to increase and this may reduce the number of visits to the resort. There is also a chance for other resort to take advantage of technology and improve on their efficiency and thus reducing the Perisher Blue Resort clientele. With regard to environmental issues, the expansion of hospitality services means that there will be an increase in the water, sewerage and electrical supply to the resort; these additional facilities have negative impact on the environment. Due to increasing developments of the resort, the snow routes may conflict with the skiers’ movements which are vital between the resort centers and the skier movements. The external activity that may impact negatively on the development of the resort is the risk of the global warming consequences which may affect the number of skiing activities in the resort. b. Environmental Assessment Environmental assessment provides a number of vital factors to consider regarding the future of the resort, such factors may have insignificant or significant consequences regarding the survival of the resort. The most significant environmental issues includes; technology, economic, socio-cultural trends and political climate. In order to narrow down on the scope of these effects, only the most significant environmental factors that have the most potential of altering the operations of the resort in the near future will be succinctly discussed. These factors are; technology and economical variation (Lavia 2004). Technology Technology has two effects on any organization, it can increase its competitive advantage and increases is sustainability over time or decrease its competitive advantage through increased expenses as a result of adopting unplanned technological requirements. Despite this, technology is essential any market oriented business as it creates a leverage to its infrastructural placement. Perisher Blue Resort has not fully utilized its information system placement, it is not yet aligned with its organizational structure and as a result, this can create a significant threat from its competitors. Perisher Blue Resort has wastefully utilized its Information System which is supposed to increase its market scope and sustainability. In this sense, it is imperative for the executives of the resort to consider proper alignment of informational structure and strategy with the current business process and organizational structure (Lavia 2004). Economical variation Economical variations usually have either negative or positive impacts on the business depending on the current economical trend. With this consideration, as recently experienced in recession period, there was a more cautious spending approach from the customer; this means that businesses experienced low goods and services turnover. During this period, there was significant reduction of activities in the resort. This effect reduced with reduction of recession that was experienced in the world. It is therefore imperative to consider economical variations in the implementation of the IT strategic plan. c. Critical Success Factors In order for an organization to attain complete functionality, sustainability and strategic, it is imperative to consider the alignment of factors that contribute to the business success both in long term and in short term period. This can simply be attained in the presence of a system in place that seeks to coordinate strategic management process. The coordination of these factors is critical in ensuring success in the implementation process (Bischoff-Turner 2008). Information technology can leverage business process if it is used in a way that creates advantage to the business. A mere use of information technology is not a guarantee of success if its use is not properly aligned with organizations business strategy and infrastructure; instead, there will be an increase of cost (expense) that does not leverage the organization in terms of its competitive advantage. In essence, the critical success factor relating to this case is the alignment of contributing factors such as IT strategy, business infrastructure, IT strategy and business strategy. After the alignment of these factors with respect to the organization, the implementation process should be enhanced with proper timing, resource allocation through budgeting, with consideration of internal and external factors that have a significant impact on the organization. Such internal factors includes; financial capability of the organization and the competitive positioning of the organization. External factors includes; the market trends that defines the how competitive the firm will be in the future and uncertainties brought about by increased globalization. These are the critical factors in ensuring success in strategic planning (Griggs 2002). 4. Business Process and Information Requirements a. Current systems assessment (findings) Applications The company has few applications running some critical and basic tasks for any business venture. The company is not wholly information technology dependent indicating that there’s wide room for leverage on information technology solutions for efficiency and timely provision of quality services. Content, document management and web services Perisher Blue currently does have an official website but not intranet services. This is coupled with lack of a centralized document management system. The company documents are entrusted in individuals therefore making the organization vulnerable to individual failures and risks. Online payments system especially for such a world class facility is also lacking. This limits the customer base and payment flexibilities consequently low customer satisfaction. Corporate and Administration This is usually the point of contact with the outside world hence needs systems that creates relevant image. Currently Perisher Blue has no customer management systems in place. The company lacks critical administration support applications for bookings, admissions, sports and event management, visitors’ identification and staff management. Perisher Blue has the office suite to support basic office functions as one of its software applications. Business application Being a commercial venture, Perisher Blue currently has MYOP which is a financial management system. The system is a standalone and has not been integrated with other systems. The current financial management system is not integrated with other system. This enhances creation of duplicates and related redundancies. Data management The data network consists of internal and external networks supporting voice and data transmission. The network infrastructure also supports wired and wireless communication components. The company has an SQL database support for storage of data. There are no data securities systems in place since there are no antivirus programs installed yet Windows software’s are vulnerable to attack by viruses. Technology infrastructure Server Infrastructure Perisher Blue has several servers running on Microsoft Windows 2003. These servers support e-mail communication systems in place and application software’s. All desktops in the company are connected to the servers via network infrastructure. IT management process There are IT resources in Perisher Blue but there has been no clear service provision charter that describes services offered by the IT team and respective problem escalation procedures. The company does not have IT helpdesk systems and IT assets management applications. This puts the IT service provision and assets management in jeopardy. Resilience and Business continuity Perisher Blue currently does not have a disaster preparedness plan. The use of individual backups does not make the organization less susceptible to disasters but rather a risk on its own. The current IT infrastructure needs a build in resilience so that it can survive any disaster. IT security and protection The current system has no clear security procedures. It has been clear that the company lacks a predetermined access control procedures and systems. i. Impact on existing business processes The main areas of strategic leverage for the ultimate success of the Perisher Blue lie in the provision of quality services efficiently. Efficiency can only be inbuilt in business processes hence clear identification of inefficiencies and available opportunities is necessary. Perisher Blue needs to implement the following strategies; The company should do a redesign of its critical processes like booking, reception, visitors monitoring so that it will be in tandem with the company’s Master plan by acquisition of necessary enterprise resource planning applications. This should contain the following applications; customer booking, marketing, Financial reporting and recording, visitors management and security, project and event management. Perisher blue should put in place data management infrastructure that will support large dataset since there is a projected growth in the industry. The company should therefore plan for requisition of database management system that is robust and flexible. The company should also put in place data security protocols through purchase of necessary security hardware and support software’s. Manual identification of customers requires to be phased out since it is unnecessary inconvenience to customers while in enjoyment. This calls for a security management system that will be customer friendly and will not cause unnecessary harassment to customers. The IT service provision should be conversant with the needs of the company and technically alert. This calls for acquisition of service management application to enable clear administration of this critical role. The IT service provision team should also put in place disaster recovery plans and systems infrastructure that are resilient to disasters. b. Business process redesign assessment With the master plan and the current system functionality at hand, necessary restructuring is unavoidable else the status quo will be maintained. Perisher Blue’s vision of being a pre eminent four-season destination mountain resort in Australia, providing international class facilities, based on ecologically sustainable principles, calls for radical change in the business processes of Perisher Blue. The following business process changes will be required; Visitors’ security management will be changed so that the customer inconvenience of searching for their identification cards is eliminated. This calls for security process that will eliminate this and enhance customer satisfaction levels. Database management system will need radical change since SQL database currently in place is subject to capacity limitations and resilience features. The company will therefore require a Database management system that will support large datasets. Instituting of procedures and technologies to support skiing sporting which is a crucial item in the strategic plan where sporting facilities needs to be world class. This calls for a business function and technologies that will institute live coverage of sporting events. Marketing and promotional activities of the company will radically change with global market being the target of Perisher Blue. The marketing process and function needs more relevant to the global audience. The use of customer relationship management should be of great necessity, coupled with internet based marketing strategies. Functional process needs to be customer responsive. This calls for establishing of processes that will facilitate faster information processing and communication. This is where information technology as a tool of reengineering will be used. Functional processes in administration, service provision, finance, marketing and sporting needs to have high end technologies that will be able to serve all customers efficiently and timely. This calls for the use of enterprise management systems whose functionality traverses financial system and management, human resource and payroll processing, customer relationship management and facilities management. This whole organization system is relevant for the case of Perisher Blue where necessary information integration is inevitable. Facilities construction will have to be enhanced up to the necessary international environmental, functional and service standards. The rail network, housing, and skiing facilities should be compliant with all necessary global legislations and standards. i. Argument for new IS/IT opportunities a) Cost saving Relevant information technologies have led to cost savings through process automation and efficiency. With integration of various processes cost savings will be achieved especially in the area of marketing and sales. Customer satisfactions as a result of built in systems that are customer centered leads to increased revenues. b) Accuracy and speed Automation of business processes will eliminate information processing systems susceptible to human errors and omission. Faster information processing enables production of real time information which gives an advantage in decision making systems. c) Process integration As a result of the usage of enterprise resource planning system, companies will be able to have a central data depository, curbing the problems associated with data redundancy and duplication. It also facilitates faster information processing and reliability of information. d) High efficiency and effectiveness Information technology ensures that information processing efficiency consequently leading to high employee effectiveness especially with regards to decision making. 5. Recommendation a. Application Perisher Blue resorts requires applications that will facilitate the attainment of its strategic objectives through support of functional processes and administrative functions. The following applications would be recommended for Perisher Blue; Enterprise resource planning system This will ensure function processes integration using one system. It incorporates financial management system, human resource and payroll administration, inventory management and procurement systems. The ERP should also have an inbuilt management information system to support management in their decision making roles. This business system should have the following functionalities; Financial service and sub-processes such as payment processing, invoicing, ordering, budgeting and other financial information systems requirements Integrated human resource and payroll processing Customer relationship management for marketing knowledge processing Ecommerce systems Perisher Blue requires a system to promote online transactions and marketing. This will ensure that customers are served efficiently and conveniently. This system will facilitate service delivery to customers, online order processing, online payment and customer feedback processing. This calls for development of websites not just for information sharing but also commercial service provision. The following functionalities should be supported; enquiries handling online order processing payment processing service information Administration and office automation application This application will be required to enhance administration and office work. The administration applications will include security management applications and other applications to facilitate service provision and functionalities including; Booking of services Admission of visitors Billing of visitors Security and visitor tracking Communication and broadcasting functions Industry specific Application These are applications specific to resort and skiing industry. Besides development tailored applications the company should acquire applications which will support the resort and skiing business. This applications will be relevant to world class skiing. The following are the functionalities to be supported; Sports management Applications Resort management applications Lift control applications Inventory and IT support applications This will ensure safe use and management of IT assets. They include the following applications; IT service administration Applications Helpdesk management applications b. Data Data handling and processing systems should be put in place. Data storage and integrity applications shall be of first priority since all other applications shall be founded upon a database management. Perisher Blue should plan for the purchase of the following applications to support data processing; A robust database management system like Oracle so that it can support large databases and several application software’s Data security management system to manage access control rights c. Technology infrastructure Networking technology should be upgraded and made resilient to different disasters. This calls for a network with port access authentication and use of CISCO switched infrastructure. Server designs should have the features of cohesion, resilience and relevance. There should be a clear policy on purchase, use and commissioning of servers so that they will be in harmony with other hardware and applications (Lowson 2002). Systems continuity is another aspect that technology should comply with. The Company should develop a business continuity and disaster management plan. This will form resilient implementation through necessary hardware purchase, contracting and regulations. With no business resilience plans in place, the organization will give in to disasters. Perisher Blue should also acquire necessary hardware and applications to provide for security, authentication and data protection. CISCO offers a wide range of this hardware plus their supporting software. They include the Network Access Control (NAC) and Cisco Security Agent. They do provide server security by preventing uncontrolled access to servers. In addition Perisher Blue should consider acquisition of Antivirus software and a review program for its effectiveness. Computer devices provided to staff should also support mobility and working flexibility. This will ensure that all applications operational at Perisher blue shall be accessible from their premises through mobile devices after necessary authentication has been done. Hardware procurement process policy should be developed so that hardware purchases shall be compatible to the existing systems (Bischoff-Turner 2008). d. IT management process IT management shall be very crucial for the implementation of the plan therefore recruitment of competent staff and adherence to international standards is necessary. Perisher blue therefore need compliance to international standards on information security, IT service management, usage of email, internet, web authoring and document management, and software development and configuration. The IT skill required from all members of staff shall also form basis of the successful implementation of the strategic plan. All staff therefore should have the following competencies; Proficiency in use of standard desktop applications Knowledge and effective use of e-mail and web browsing systems Understanding windows operating systems The Company should also put in place a staff training policy that will guarantee training when new applications are introduced in to the company 6. IT action plan This plan is an IT strategy for the attainment of IT objectives which are in harmony with the business objectives. The IT action plan shall institute deliberate actions that will cause systems purchase, customization and replacement. The action plan deliberately meets the following objectives of the IT strategic plan. To enable ease of access to lifts and Perisher Blue resort facilities To develop a robust, secure and sustainable IT technology infrastructure that will support all relevant systems to perisher Blue Ensure Business operations and process continue to achieve effective and competitive level of operations a. Tactical plan The plan shall cover our four areas of recommendation with specific tangible solutions that shall be measurable. Applications development Enterprise resource planning The company should undertake a functional needs assessment and document it in the report. This will form basis for procurement of an ERP system that will be relevant and meeting the business objectives the company. The company should do a due diligence study on the available ERP software’s and select one meeting its needs The company should acquire and customize the ERP application to be more relevant. E-commerce application The company should a redesign of the website to accommodate e-commerce applications. Perisher Blue should procure for an e-commerce application so that customer can process their requests, booking and payment online to avoid long queues at the finance department and also provide convenience to customers. Administration and office automation The company should undertake needs assessments regards administration. The company should acquire a management system that will support the functions of customer bookings, admissions, communications and security management. Industry specific applications Resort and skiing business engages in a unique and specific business of sporting. The following applications needs to be acquired Skiing sports management system Resort management system Lift control and surveillance system Data Security and management Actions Acquire a database management system that will manage the size of the projected organization data and compatible with the organization hardware. Institute relevant data access and control authentication and control using policies and technically implemented (Boyle 2001). Technology Action plan This is the genesis of Information technology architecture. The following technology related actions are necessary for the successful strategy; The company should immediately undertake IT hardware and software audit to assess the availability, location status and functionality of various IT assets. The company should requisition for all the necessary IT hardware that will for the platform on which various systems will run. Perisher Blue’s network should have an end to end authentication support for reliable security. The company should develop, document and implement an efficient process of deployment of all central servers The physical securities should be ensured for all IT hardware and software The company should develop and implement a disaster management and continuity plans Operating system platforms should be harmonized so that unnecessary compatibility challenges are experienced. IT management Actions; All IT projects should be tested for compliance with standards on information systems security, internet and e mail usage and property rights. The company should be also undertaking to undergo independent information systems audit which will give assurance in this regard. Human resource policies should be updated to include the minimum IT skills requirement for new members of staff. Staff training should always be included in new system implementation. IT department should develop service level agreements with various service departments. Tactical action plan summary based on availability of resources and priority Objective Strategy- IT project Priority To enable greater access to Lifts and resort facilities Booking systems Admission systems Frequent website update Lift control and surveillance High High High High To ensure that the companys technology utilization is appropriate and is capable of managing the movement of visitors within the resort Hardware audit Hardware requisitions Continuity and resilience plans Service level agreements Systems security using CSA Security applications High High High Medium Medium Mediun To ensure that the business operations continue to achieve an effective and competitive level of operation Enterprise resource planning Ecommerce applications Systems audit and review Medium Medium Medium i. Issues and problems arising from the strategy The following are some of the project strategy implementation challenges; Financing Strategy implementation is usually subject to funds availability and authorization in the organization. IT strategies usually have financing challenges since they are just cost centers and the finance management views them as lacking payback period. This has in the recent times been demystified after thorough cost benefit analysis has proved that IT projects are economic projects with many benefits compared to costs (Pemberton 2000). Perisher Blue resort still has financing challenges since its availability of fund shall be scattered over year consequently IT projects shall be funded on priority basis. Human resources availability Project implementation needs implementing teams which in most cases are employees which recurrent and daily responsibilities. This brings challenges in the implementation timeline and ultimate service delivery. Acceptance Resistance towards strategy implementations are bound to happen since some of the staff members will lose jobs due to reengineering of business processes. Implementation time IT strategy time schedules are usually fixed and need dedicated staff which in most cases will not be possible due to cost implications (Garner 2005). ii. Project implementation Schedule This schedule indicates the timelines for each strategy and the ultimate responsibility centre. The schedule shall be subject to funds availability as indicated in the budgetary requirements. Project Strategy Budget Responsibility Timeline Enterprise resource planning system $ 200,000 CIO, CFO 2013-2015 Ecommerce application $ 15,000 CIO, CFO 2017-2018 Resort management system $ 100,000 CIO, CFO 2012-2013 Lift control system $ 300,000 CIO, CFO 2012-2012 Skiing sports management system $ 180,000 CIO, CFO 2010-2012 Database management system $ 300,000 CIO, CFO 2010-2012 Hardware and Software Audit $ 50,000 CIO, CFO 2010-2011 Hardware requisition $ 300,000 CIO, CFO 2011-2020 Disaster management and recovery planning $ 80,000 CIO, CFO 2010-2012 IT helpdesk management $ 30,000 CIO, CFO 2014-2015 Training $ 700,000 CIO, CFO 2010-2025 Service level agreements CIO 2010-2025 Total &2, 255,000 iii. Outsourcing considerations Outsourcing of some of the IT services is an option of facilitating the business plan of an organization. Outsourcing involves the use of outside vendors to provide facilitation in some of the business processes. Perisher Blue has to decide whether it can reader to outsource of their services for example security provision, supply of some of the hardware, software and even services like IT management, Lift control, sports regulation and management. Outsourcing can be of much benefit to the organization in terms of cost saving, efficiency, production speed and specialized services. The vendors are usually dedicated experts in there are hence service quality cannot be in doubt unless the work load on their end is high (Gordon, G 2005). Organizations usually outsource provision of non critical services. It is therefore a requirement that has to undergo serious management and stakeholders considerations and consultations. The risks of associated with it are service provision compromise and no functional process can be non critical. This brings outsourcing into perspective and the challenge of identifying non-core activities has to be handled at the tactical level management. Outsourcing therefore is option during acquisition of IT hardware and software so long as there are benefits to the organization and assurance of high service level agreements contracts are committed by the vendor. 7. Conclusion This analysis has provided fundamental business processes that align with technological developments that the resort ought to implement in order to meet the future challenges. Being strategic through optimization of information system is the key to the future of this resort. Business process redesign and implementation of IT tactical plan provides the fundamental basis of the resort performance, this analysis has provided key options for the resort to take in order to achieve its short term and long term goals. References Bischoff-Turner, S 2008, From Strategic Planning to Strategic Positioning. Children's Voice, 12 May. pp.12-15. Boyle, P 2001, From Strategic Planning to Visioning: Tools for Navigating the Future. PM. Public Management, 21 May. pp. 283. 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