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Due Date: 27th April 2017
Information Technology Planning
Strategic Evaluation Document for Heaven Hotels
National College of Information Technology (NACIT) – Blantyre

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Table of Contents
Introduction ……………………………………………………………………………………………………………………………….. 3
Background ………………………………………………………………………………………………………………………………. 4
Strategic evaluation ………………………………………………………………………………………………………………….. 6
SWOT Analysis……………………………………………………………………………………………………………………… 6
Strengths …………………………………………………………………………………………………………………………… 6
Weaknesses………………………………………………………………………………………………………………………. 6
Opportunities ……………………………………………………………………………………………………………………… 7
Threats ………………………………………………………………………………………………………………………………. 7
Impact of IS ………………………………………………………………………………………………………………………………. 8
Major systems the hotel needs ……………………………………………………………………………………………… 8
The type of information the Managing Director Expects ………………………………………………………… 9
Managing director ……………………………………………………………………………………………………………… 9
Hotel Managers …………………………………………………………………………………………………………………. 9
Organizational changes faced and how they can be addressed. …………………………………………. 10
Processes which might lend themselves to outsourcing………………………………………………………. 10
Steps undertaken to ensure that systems are resurrected quickly in the event of disaster. …. 11
Ideas to persuade the managing director that the new system is affordable. ………………………. 12
Conclusion ………………………………………………………………………………………………………………………………. 14
References ……………………………………………………………………………………………………………………………… 15

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Introduction
The document is titled strategic evaluation for heaven hotels. The document has the background
information, which discusses the issues that are hindering the organization to expand and what it
needs to focus on so that the hotel chain can move forward. The second section has the strategic
evaluation for heaven hotel, SWOT (an abbreviation which stands for Strengths, Weaknesses,
Opportunities and Threats) has been used to analyze the hotel chain for heaven group hotels,
SWOT tool analyses the Strengths, Weakness, Opportunities and Threats that an organization
has. In the last section of the document, there is a discussion of the impact of information systems.
Under this section several issues have been highlighted supported with their reasons, why the
issues have been highlighted. Firstly a description of major systems which heaven hotels needs
and what the systems need to do has been discussed, then the type of information which the
managing director needs has also been included in the document, this includes the comparisons
and contrasts to the information which the hotel managers need. The other issues which have
been discussed in the document in their chronological order include the following: the biggest
organizational changes faced with the new systems and suggestions on how they should be
addressed, processes lending themselves to outsourcing and their reasons. The steps
undertaken to ensure that the systems can be resurrected quickly in the event of failure or disaster
at head office and the ideas to persuade the managing director that the new systems will be
affordable.

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Background
Heaven hotels group has 43 6 – star hotels which are located in different locations throughout the
world. The hotel group is rich in cash and it has been growing progressively by purchasing and
acquiring run down and dilapidated premises which are turned into top of the range hotels. The
vision of the managing director is that they should become the number one hotel group in the
world by offering unsurpassed luxury accommodation. The hotel group has good ratings on
websites that produce reports for hotels. Medical practitioners recommend heaven hotels to run-
down high earning executives needing a break from everyday life.
The issues that are hindering the hotel group from moving forward include the following on the
list:
The first factor hindering the hotel group from moving forward is the ban of all Eastern Europeans
from entering the American continent – as it is read in the scenario of heaven hotels (page 3,
paragraph 3) the hotel group (heaven hotels) heavily relies on Eastern European employees who
are highly skilled in renovating properties and work thoroughly and creatively. Meaning that if
these migrants are banned in entering the American continent, the hotel group has to find other
laborers who can work on the renovations this means that the new laborers might not be cheaper
as their counterparts from the Eastern European region.
The second factor hindering the hotel group from moving forward is the retaliation of the
governments of Europe, Africa, Asia and Australasia, these mentioned governments have also
banned all citizens from North America and Latin America to travelling to their shores. With this
retaliation it means that the hotel group cannot collect much revenue in the hotels which are
located in the areas where the governments have banned all Americans from entering their
countries as the American tourists will have to stay in their continent and not travel anywhere.
The third factor is the lack of fundamental I.T systems. In the scenario of heaven hotels (page 3
paragraph 5) it has been stated that currently most of the hotel activities are done manually for
example recording of bookings which is done through the phone only. This means that the
receptionist have to record whatever is said on the phone on paper, and if they lose this booking
information a booking cannot be reserved for that customer.
The fourth factor hindering the growth of the business of heaven hotels is the lack of appropriate
qualifications for employees who are employed in the finance department this is also an issue
hindering the hotel group from moving forward. As the external auditors noted that the end of year
accounts were below the standard expectation of a commercial company which means that the

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revenue which is used for expenses is above average as the accountants are not well qualified
and they do not know how to trim the expenditure revenues used.
The areas which the hotel group needs to focus on in order to move forward include the following
highlighted below:
Firstly the hotel group can take advantage of the change of policy of the world’s government
whereby the governments are refocusing on other trades such as plumbing, decorators. The hotel
group can employee these people who can learn from the eastern European citizens on how to
renovate run-down buildings, by doing this the hotel can overcome the challenge whereby eastern
Europeans have been banned from entering the American continent.
The second point is that the hotel group needs to computerize its manual based system, by doing
this, most of the activities can be done using computers thereby relieving the receptionist from
writing down bookings from phone calls which they receive from customers.
Thirdly the hotel group also needs to employee staff who are qualified for example staff in the
accounts department should have the right qualifications so that when auditing is done the
accounts should be above expected standard for a commercial company like heaven hotel group.

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Strategic evaluation
This section of the document highlights the strategic evaluation of the hotel group heavens hotels
using SWOT analysis.
SWOT Analysis
According to (Taylor 2016) SWOT is an abbreviation which stands for Strengths, Weaknesses,
Opportunities and Threats. SWOT is an analytical framework that helps a company face its
greatest challenges and find its most promising markets. The same author (Taylor, 2016) says in
business context SWOT enables an organization to identify both internal and external influences.
Strengths
Strengths are internal factors, attributes and resources that support a successful outcome this is
according to (Rouse 2013).
? From the scenario of heaven hotels (page 3 paragraph 1) it is said that the hotel group is
rich in cash which means it can be able to expand to the areas where they are not in
existence and they can buy properties in these places where they are not present.
? Good ratings on websites that produce hotel reports (page 3, paragraph 1), this is an area
of strength as many tourist like to spend their money in places where there is good
hospitality and they are treated nicely with this in mind the hotel group can collect much
revenue from the tourists.
? Highly skilled work force on the renovations of dilapidated premises (page 3, paragraph
3), the employees who work on the dilapidated premises are hard workers who are highly
skilled in their field of work this means the hotel does not need to outsource these laborers
from elsewhere.
Weaknesses
According to (Rouse 2013) weaknesses are the internal factors and attributes that work against
a successful outcome.
? Lack of fundamental I.T systems, the hotel operates using a manual system where by the
procedures are paper based for example booking from customers are recorded on paper
from phone calls received.
? Employing staff who have no proper qualifications. Employing someone without the right
qualifications for a particular post is a weakness this shows lack of seriousness as the
hotel can afford to pay those who hold relevant qualifications as they are rich in cash.

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Opportunities
The opportunities are external factors the organization can use to its advantage
? Recommendations by medical practitioners to run – down high earning executives
needing a break from everyday life.
? Worlds government policy changing and now they are refocusing on promoting trades
such as plumbing
? Identification of the 22 neglected properties which are suitable to convert into hotels.
Threats
Threats are external factors that could endanger the project (Rouse 2013).
? Flooding of the basement when heavy rains have fallen
? Managing directors concern of raising costs to an extent that people may be charged more
for staying at the hotel.

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Impact of IS
Major systems the hotel needs
The hotel chain needs a hotel management system with an enterprise resource planning (ERP).
According to (Rouse 2013) an ERP is a business process software which allows an institution to
use a system of integrated applications to manage the business and automate back office
functions with technology. The ERP need for heaven hotels needs to have the following sub
components which have been explained in detail below:
Central reservation system – with this system customers will be required to make bookings
through the hotels group website or mobile application, there will be no need for the receptionist’s
to receive bookings from customers through phone calls. The reporting tools which are required
from this sub – component of the system include the following; expected arrival of hotel guests,
the number of the days which a customer has requested to be reserved for him or her and a daily
booking activity summary this according to (Provab 2013).
Customer relationship management system – with this subsystem it is expected to gather and
compile customer’s information through the company’s website, direct e-mail and also through
the websites that rate hotels. The reporting tools which would be needed from this sub system is
what the customer likes and their purchase histories (Griffith 2016).
Billing software – this sub system is the one which is going to handle the bills of the customers
which are supposed to be settled down and invoicing the customers for the services rendered to
them. The reporting tool which is needed from this sub system is the number of days the customer
has booked for, the services rendered and what amounts have been received from customer’s
payments or the amounts a particular customer is supposed to settle down after services were
rendered to him or her (Griffith, 2016).
Marketing automation – this is mainly for the marketing department, to enable it to market the
hotel chain easily through various mechanisms such as social media and direct emails to its
customers. The reporting tool which is needed from this software are lead scoring which according
to (Rouse 2015) this is an approach used by marketing departments to determine the worthiness
of potential customers by attaching values to them based on their behavior relating to their interest
in products or services.
Inventory management system – with this component in the main system it is going to help in
tracking of commodity levels in the stores room and notify relevant authorities when commodity
levels are dropping down. The reporting tool required from this system is the ABC analysis (also

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known as the selective inventory control) which provides a mechanism for identifying different
categories for stock which require different management and control this is according to (Myob
2016).
An accounting system – this will be used for gathering and storing financial records of the hotel
group. The main reporting tools which will be required from this are the cash flow statements,
expenditure reports which will be showing the a mount of funds collected and used within a
certain period of time respectively (Rouse 2015).
An executive information system – this system will be used by senior management and it is going
to be used to support senior management in decision making process. The reporting tools which
will be required from this sub system are the company’s performance with other companies, the
investments which have been made and the how funds have been used (Gray 2014).
The type of information the Managing Director Expects
Managing director
? Group hotel performance reports – the managing director has to know how his company
is performing against other competitors on the market and know what are the areas in
which the group is lagging behind so that he or she can know what is supposed to be
done.
? New properties acquired – the managing director has to know the properties that have
been acquired for him or her to have a clear picture on how the hotel group is growing and
what new opportunities will be offered in the areas where the new properties were
purchased.
? Fiscal year earnings for the hotel group – apart from the two types of information
suggested above the managing director also needs to know how revenue collection has
been when a fiscal year has ended as he is the one who probably makes the final
decisions about the hotels and how they should be run.
Hotel Managers
? Hotel performance – as each hotel that heaven hotel operates has its own manager, the
manager at each of the hotel where they are based at, they would want to see how the
hotel they are operating is performing on the market against other competitors within the
area.
? Staff performance under their hotel – the hotel manager would want to see how each of
the staff members has performed during the year as the staff members would be given

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appraisal forms which would be used to assess each individual staff performance against
their planned work.
? Financial performance per month – the hotel managers would like to know how much
profits or losses they have made at the end of each month in order to see how processes
and procedures could be improved.
Organizational changes faced and how they can be addressed.
? Changing job roles – for example in the case study it is stated that all the booking are
manually recorded and are only taken over the phone, the ones who carry out the bookings
probably the receptions will have their job roles changing as they will be focusing more on
welcoming the hotels guest and directing them to their rooms.
? Job losses – job cuts will be there because bringing in a computerized system means that
work which was done by ten people would be carried out with two or three people which
means in the accounts departments some of the staff there could lose their jobs as an
accounting software would automate some of the processes which were done manually.
? New job creations – the hotel group wants to implement an IT system, which means the
hotel group has to create an IT department where they can employee persons such as a
system administrator, network and database administrators to operate the IT systems
which the hotel group wants to implement.
Processes which might lend themselves to outsourcing.
? Accounting – as it was stated in the scenario that the accounts personnel who are currently
employed now by the hotel group have no appropriate qualifications, the accounts
department is a critical part of the organization and employing people without proper
qualifications could lead into a disaster. The hotel group would be encouraged to
outsource this part so that end of year accounts should be in the expected standard as it
is expected for a commercial company.
? Payroll – this could be outsource, and could be done with the accountants who are hired
to do the accounting services of the hotel group.
? Car rental services – as a hotel there is no need for them to be running such kind of
services, what they need to concentrate on is their hotel business which is to offer
hospitality to clients, they can have an agreement with leading Car Company hiring
services to run such kind of businesses on the hotels premises.
? Cleaning services – as it has been stated that the hotel is rich in cash they can also
outsource these type of services while they are focusing more on the development and

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implementation of the IT system. Cleaning services which can be outsourced could include
laundry services, where they can have an agreement with laundries which would do the
laundering and a cleaning company which can do all the housekeeping for the hotel group.
? Auditing – the advantage of having this service being outsourced according to (Gray
2014) is that an independent auditing consultant often specializes in a specific industry
and brings an in-depth knowledge of that industry and utilizes the years of experience they
have to support an internal audit function within the organization they have been hired to
carry auditing.
Steps undertaken to ensure that systems are resurrected quickly in the event of
disaster.
In order for the systems to be resurrected as quickly as possible when disaster has hit the
organization the following measures could be under taken:
Firstly the hotel group needs to have a hot site, the site would be useful when the impact of the
disaster that has his the hotel group I.T systems is very huge. A hot site is defined as a disaster
recovery facility that mirrors the organization’s production databases and other IT resources in
real time. A hot site has the other equipment necessary to become active at a moment’s notice,
including but not limited to; office furniture, active network/internet connections, phones this is
according to (Yeager 2016). The advantages of having this is that it will be readily available when
disaster has struck and the hotel group can quickly switch on to the hot site with a minimum down
time to operations.
Whereas the impact of the disaster which has hit the hotel group I.T systems is so minimal and
other systems are working heaven hotel group should consider implementing a cold site. A cold
site is defined as an available facility that has not yet been fitted out with an organization’s
hardware or other necessary items to begin operations immediately but is under the control of an
organization. A cold site typically requires some significant effort and time to become operational,
but is available to the organization at a moment’s notice this is according to (Yeager 2016). The
advantage of using this type of recovery facility is that in terms of cost it is cheaper and it would
be required for applications which do not require much protection.
Heaven hotels group could also utilize cloud computing which is defined as the process of storing
and accessing information over the internet instead of a computer’s hard drive (Griffith 2016). The
advantages of using this recovery plan is that when a disaster has hit the organization employees
can work from anywhere what will be need is just an internet connection, using devices such as
smart phones, tablets or even laptops.

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Database replication – with this method electronic data is copied from one computer to another
computer in order for users to share the same level of information resulting in a distributed
database (Rouse 2013). The advantage of this method is that in terms of availability it is easy to
access the data, for example if disaster hits station A, the data which was being held at station A
can be accessed at station B because of the replication which was done.
Ideas to persuade the managing director that the new system is affordable.
Below are some of the ideas which could be used to persuade the managing director to invest in
the new systems.
Cost benefits analysis – this is a method where all the business process are analyzed, the benefits
of a business related action are summed up and the cost associated with taking such actions are
subtracted (Investopedia 2007). The advantage of using this kind of method within the company
is that when the cost have been analyzed of implementing the new hotel management system
with an enterprise resource planning, then possible benefits have to emerge which would include
automation of marketing processes, there will be no need to record bookings on paper because
this would be done on the hotels website.
Return on investment – this measures the gain or loss generated on an investment relative to the
amount of money invested (Investopedia 2007). The advantage of this is that when the hotel
management system has been implemented and is in use, for example the billing software would
be giving the correct amounts that a customer is supposed to pay when services have been
rendered to him or her.
Strategic management analysis – this is the management of an organization’s resources to
achieve its goals and objectives it involves setting objectives, analyzing the competitive
environment, analyzing the internal organization this is according to (Taylor 2016). Using methods
such a SWOT (abbreviation standing for Strengths, Weakness, opportunities and threats) PEST
(an acronym which stands for Political, Economic, Social and Technology factors) and Porters
five forces would enable the organization (heaven hotels) to know its internal and external factors
which are hindering heaven group’s hotel from moving forward and what needs to be done by
exploiting the opportunities which are there and also working on the weaknesses which the
organization has.
A differentiation strategy would be suggested to the marketing director with this strategy after
inviting tenders for bids for the development of the system, the managing director has to look at

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the different prices which are offered by developers on the market, the developer offering his price
at a reasonable price would be recommended to the managing director.

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Conclusion
In summary these are the areas which have been discussed in this document titled strategic
evaluation document for heaven hotels. Firstly the document looked at the background which
explained the issues which are hindering heaven hotels to go forward and the areas it needs to
focus on in order for the hotel chain to expand. The second part looks at the strategic evaluation,
analyzing the organizations current position with the help of SWOT (an acronym which stands for
Strengths, Weaknesses, Opportunities and Strengths) which is an analytical framework which
analyses the strengths, weakness, opportunities and threats an organization has in relation to
internal and external factors. The third section looked at the impact of information systems. The
issues which were discussed under this section include the following; the major systems that
heaven hotel group needs together with brief descriptions of what the particular system is required
to do and the reporting requirements which are expected from that system. Then the type of
information which the managing director wants with comparison and contrasts with the information
which the hotel manager’s needs. In the third the section also, the document discussed the
biggest challenges that would be faced with the new systems and how the challenges could be
addressed. The others areas which were also discussed in this document are: the processes
which might lend themselves to outsourcing with their supporting reasons, the steps undertaken
to ensure that the systems can be resurrected quickly in an event of disaster and lastly the ideas
which would be used to persuade the managing director that the new systems are affordable.

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References
Gray, K., 2014. LowersRiskGroup. Online
Available at: http://www.lowersriskgroup.com/blog/2014/09/30/outsourcing-internal-auditing/
Accessed 22 March 2017.
Griffith, E., 2016. PC Mag. Online
Available at: http://www.pcmag.com/article2/0,2817,2372163,00.asp
Accessed 19 March 2017.
Investopedia, n.d. Investopedia. Online
Available at: http://www.investopedia.com/terms/c/cost-benefitanalysis.asp
Accessed 20 March 2017.
ITIP ASSIGNMENT 2017, Heaven hotels group
Myob, 2016. Myob. Online
Available at: https://www.myob.com/au/blog/5-tools-for-inventory-management/
Accessed 1 April 2017.
Provab, 2013. Provab. Online
Available at: http://www.provab.com/hotelbookingsystem/hotel-crs-hotel-central-reservation-system/
Accessed 7 April 2017.
Rouse, M., 2013. TECHTARGET NETWORK. Online
Available at: http://searchcio.techtarget.com/definition/SWOT-analysis-strengths-weaknesses-
opportunities-and-threats-analysis
Accessed 5 March 2017.
Rouse, M., 2015. WhatIs. Online
Available at: http://searchsalesforce.techtarget.com/definition/lead-scoring
Accessed 19 March 2017.
Taylor, N. F., 2016. Business News Daily. Online
Available at: http://www.businessnewsdaily.com/4245-swot-analysis.html
Accessed 5 March 2017.
Yeager, R., 2016. ONGOING OPERATIONS. Online
Available at: https://ongoingoperations.com/blog/2012/12/definition-of-hotsite-coldsite-and-warmsite-
for-credit-unions/
Accessed 5 March 2017.

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