Information Systems in TravelOz Travel Agency - Case Study Example

Information systems in organizations TravelOz Travel Agency- Case Study Executive Summary Information systems are very important for efficiency in any organization. The main purpose of this paper is to examine the importance of information system in businesses that is how information systems can be of help to a business in cases of emergency or disruptions in supply chain management. In this paper, we have assumed the existence of TravelOz Travel Agency as a company which operates in France but with other subsidiary branches abroad. Part1. Internal and External data Internal information is the kind of information which is obtained internally like financial statements, employees, internal auditors, management, company reports and accounts receivable (Kawalek, 2007). That is internal data is mainly derived from accounting system. The internal sources of information have a direct involvement in the company. External data on the other hand is the type of information obtained from external means like customer credit rating, advertising agencies, government agents and competitors. Both the internal and external data can be created by the company. As a travel agency, TravelOz Travel Agency is characterised by both types of information. Both internal and external data are very useful in decision making process in any company. Internal auditors, management, financial statements, employees and company reports will act as an internal source of information to the company (Prakken, 2000). This type of information is very important to the company as it will enable the company to evaluate its financial performance, social performance and its internal limitations. TravelOz Travel Agency was founded in 1952 and to date; it still operates like it was when it was founded. By use of the internal information, the company will be at a position of evaluating its strengths, weaknesses and threats hence devising strategies for business development. Internal data like break-even point is very important to TravelOz Travel Agency as it will enable the marketing manager to determine the profitability of the corporate marketing efforts. Data from the information collected from the daily revenue will enable the manager to plot the revenue curve of each year and compare it with the previous years. Employees of the agency like those who operate in the flights always come into direct contact with the agency customers. As a result, they form part of the internal data for the agency. This is because; they can use the opportunity of their contact with the customers to obtain information of how the customers view the company services (Kawalek, 2007). External information relevant to TravelOz Travel Agency includes competitors, consumer credit ratings and other government and non-governmental agencies. As a travel agency, the company is facing a stiff competition from other leading travel agencies. Consumer credit rating as an external source of information is also very important to TravelOz Travel Agency as it enables it to determine the loyalty of its customers in connection to their services. Government policy which is passed by the government agencies is an external source of information which has a huge impact on the operation of TravelOz Travel Agency. These external sources highly determine how the company will operate as well as how the company will devise strategies to gain a competitive advantage (Prakken, 2000). If the consumer rating is very low, the company will lose it customers to its competitors and the vice versa is true. As a result, TravelOz Travel Agency will use this information as a market analysis so as to devise strategies towards achieving a competitive advantage. Part2. Stakeholders TravelOz Travel Agency is mainly concerned with the provision of transport services to its customers. It also deals with the delivery of huge and urgent parcels within the area of its operation. The company has both internal and external stakeholders where the internal stakeholders include shareholders, customers, creditors, employees and suppliers. External stakeholders of TravelOz Travel Agency include government agencies, community and also banks. Their main concern in the business is to see to the economic success of the company. In TravelOz Travel Agency, a close relationship between the stakeholders is maintained with the aim of enhancing business operation for the company. For example, the company holds a general meeting annually where all the company’s key stakeholders should attend. The key stakeholders include the shareholders, employees and the company management. Part3. Competitive Advantage Threat of a new competitor TravelOz Travel Agency has been in business since 1952 but it has never had a single competitor. The company is likely to face a threat of a new competitor: Flight Centre, a large national chain of travel agencies which might be opening a branch a few blocks away from the company. As a result, TravelOz Travel Agency employees are highly worried that the competition might affect the business. The management of the company therefore need to develop a marketing strategy aiming at building a customer loyalty while remaining competitive in the market. The best strategy here is to use a customer-centric approach with the aim of building a strong customer relationship (CRM). Customer relationship management is a strategy which is well implemented with the aim of managing the company’s interactions with its customers. This strategy will involve the use of technology to organize, automate and synchronize the processes of the business (Kawalek, 2007). This strategy will involve the establishment of a customer-interface departments aimed at attracting new customers as well as retaining the existing ones. This means that TravelOz Travel Agency will use information technology to develop a database about its customers describing relationships in sufficient details so that salespeople, management and the customers could directly access the company information, the customers could be able to access the products and services as well as be able to purchase online. If the company succeeds in retaining its existing customers as well as attracting new customers, it will be in a position of remaining competitive in the changing market and this will give TravelOz Travel Agency employees confidence to continue working. In addition, TravelOz Travel Agency has been in operation in that particular area from 1952 to date. In this case, the company has been operating under a monopoly type of business. As a result, the company should do an environmental scan or a market analysis to determine its customer loyalty. Monopolies enjoy differentiation as a competitive advantage since it seeks to be unique in its line of operation along some widely appreciated dimensions by buyers. First mover advantage is the type of advantage enjoyed by the initial occupant of a market. For example, TravelOz Travel Agency is the initial occupant of the market in that type of business and hence enjoys a first mover advantage (Prakken, 2000). In this case, TravelOz Travel Agency has gained control of resources which the new entrant Flight Centre may not gain. TravelOz Travel Agency has been in that particular market since 1952 and hence has acquired the first mover advantage and this will earn it a competitive advantage over the new entrant and hence no cause for alarm on the side of employees on whether the company will survive. Part4.E-Business and Collaboration Customer Relationship Management (CRM) TravelOz Travel Agency customers are experiencing long wait times during peak hours and the company need to develop a strategy of using You Tube as a vehicle for communicating to the customers on the reasons for the long wait and the measures to curb it. As part of the customer relationship management, the company will use the current technology to use you tube as a channel of communication between the company and the customers. Some of the pros of using You Tube are that the company and the customers will be able to read from the script when it comes to communication of what is happening in the company. That is by use of the You Tube channel, the company will be able to address the company’s move to speed up the performance of the new system (Kawalek, 2007). The system is faster, economical and reliable. Some of the customers may lack the You Tube know how hence a disadvantage. That is they may lack the knowledge of using and operating a computer system. Some of the customers may not be able to access the internet leading to communication barrier. Other new technologies which the company could use as a customer communication vehicle and which would be more effective than You Tube include the use of LAN and WAN. The use of either of the two will enable the customers to access the company’s information system hence able to access the information on long lines during peak hours (Prakken, 2000). Supply Chain Management (SCM) For TravelOz Travel Agency to keep its business running regardless of the riots in France it must use e-business as a model of operation. By use of this model, the company will be able to offer services to its customers via the internet. Since the supply chain of the travel agency are disrupted, I would advise the company to use the e-business as a model of operation where the customers will be able to purchase and book flights online. Since the government had cancelled all France flights, the company by use of its supply chain should devise a strategy to offer transport services to its customers. For example, for the holiday travellers, business travellers and those travelling to visit their families, the company should have alternative transport means like road transport. That the customers will be picked from one of the company’s chain by road to France. Part5. Systems Development Time and Attendance System The company management has decided to replace the existing manual employee tracking system with a new system to enhance efficiency. Using an employee to build a custom system for a company is very advantageous. Since the employee has worked for the company, it is certain that he or she knows the strengths and weaknesses of the company and will therefore develop a system which will solve the company problems. On the other hand, using an employee can very disastrous when it comes to the development of a custom system. The employee might configure the system in a biased way which may not be of any help to the company. Purchasing a commercial time and attendance application and outsourcing custom development is very advantageous to a company since the company will always go the best or for a quality system based on the market demand. Once a company outsources a custom development, the company is assured of lack of biasness in configuring. Some commercially purchased commercial time may be of low quality and may not serve the intended purpose. The older employees will definitely feel left out in the new system. To ensure a smooth transition from the manual system to the new system, the management should intensify training and development on how to use the new system in the company. Conclusion In conclusion therefore, TravelOz Travel Agency has understood the importance of information systems in its business operation and this has constituted to the managements desire to change from it old manual operation to the new system. It is also very important for any business to devise business strategies in case of disruptions in its supply chain management so as maintain its operations during these times References John Paul Kawalek, (2007). Rethinking information systems in organizations: integrating organizational problem solving. PublisherTaylor & Francis Alessandro D’Atri, Domenico Sacca, (2009). Information Systems: People, Organizations, Institutions, and Technologies: ItAIS: The Italian Association for Information Systems. Springer Bart Prakken, (2000). Information, organization and information systems design: an integrated approach to information problems. Springer Read More