Information Technology Management Issues †Myassignmenthelp.com

Question: Difference between Information System and Information Technology? Answer: Introduction Information Technology has an important role and helps the development of the industry at present years. The applications of IT have brought several changes in the business of an organization. User generated reviews as well as feedbacks on the websites helps to popularize the services by the world of mouth. Present study described the difference between information system and information technology related to the case scenario. In addition, impact of deploying websites for booking the hotel rooms and overall information technology on the organization and its customers are analyzed and recommendations are provided in the report. Law, Buhalis and Cobanoglu (2014) stated that information systems and information technology are usually considered as same terms. However, information technology is one of the subsets of information systems. Information systems can be considered as umbrella term for the systems of an organization, people and procedures designed in order to create and store, manipulate, distribute as well as disseminate the information. Information system acts as a bridge between a business and computer science (Lawet al. 2013). An information system consists of information theory, foundations of management, social science and information technology. On the other hand, information technology is included in the categories of information systems. It can be defined as study, design, deploy and support computer based information systems. IT consists of hardware, software and databases along with networks. In addition, Information Technology governs acquisition and processing as well as dissemination of digital information that are generated through computing and telecommunications. In the present case scenario, operations and processes such as supply chain including thousands of hotels and its operations are included. In addition, customer loyalty schemes like StayTogether, rebates on the airlines, corporate socially responsibility program and donating expenses to charity as well as opening of booking.com are included in the information system of the group of ten hotel chains (Zervas, Proserpio Byers, 2014). On contrary, as information technology only deals with computer and telecommunication related data like operations related to booking.com are consisted of information technology of the organization. Impact of IS and IT on customer service From an economic view point, information system is one of the major factors of production, which can be substituted for capital as well as labour. The information technology makes automation for the procedures of production and lessens the capital and labour required in order to generate specified result. Transaction cost theory gives a statement regarding development of organizations size for obtaining certain factors and services that are internally low cost for participating in the market (Cantallops Salvi, 2014). Information technology allows the organizations in order to obtain products as well as services in affordable price compared to others. Thus, information technology system assists the organization to increase its revenue during shrinking in size. On the other hand, agency theory views the organization as a nexus of contracts among the self-centred individuals clearly supervised for ensuring purse to the interests of the particular organization. However, information technology can assist to minimize agency cost in terms of coordinating several people as well as activities. In the international tourism scenario, it has been found that information system is largely accepted. The users of information system are not just involved in managerial activities. They are also involve to make suitable policy, planners, stakeholders and tourists. Fraj, Matute and Melero (2015) commented that the significance of information system in present case scenario help to combat several hotels in a chain in order to facilitate uses by understanding their demands and fulfilling as well. The customer loyalty scheme named as StayTogether is initiated by the organization with the help of applying proper information system technology In addition, fixing up price like operations are included in the effective planning and implementing of information systems in the particular organization. Including buffet breakfast and dinner in the hotel room price is one of the initiatives taken by the management of the organization to attract new customers. On the other hand, corporate social responsibility policy is one of the major polices achieved with the help of effective implementation of information systems in the company or group of hotels. As mentioned by Xiang, Magnini, and Fesenmaier (2015), at present days, travel and information technology become good motivator to the emerging global economy. Hotel business being an intangible product, it has obtained a lot from specific application of information technology. In this perspective, intangibility is related to the products that engages the incurred cost and dissatisfied customers. Information technology can be utilized in order to minimize the intangibility through ensuing that possible customers has lack of communication or transferring and transferring of important information. The opinion makes the entire system of information technologies being rapidly diffused in hotel industry. Hence, the influence of information technology in hotel industry is similar to the modern scenario of business that has a diverse range of information systems. In addition, many of the information systems are utilized in the hospitality sector. Therefore, identifying the types of informat ion system can be utilized in the organization. The system interviews as well as questionnaire methods are used. The information systems such as accounting systems for back office of the hotels and front office systems, self-service kiosks, Call accounting systems and electronic locking system, energy management systems are also used with the help of information systems. In addition, point of scale systems, restaurant management systems, credit card readers along with self check machines are included in the information systems. With the help of information systems, credit card readers are utilized in all hotels that can be categorized. PMS are mainly utilized in five star hotels to some of the extents in four star as well as three star hotels. Front office systems are usually utilized in the categories staring from three stars. On the other hand, accounting systems are generally utilized in those categories (Yeet al. 2014). The energy management systems are mainly utilized by the hotel in five stars hotels. The point of scale systems are generally utilized extensively in the five star hotels. Furthermore, restaurant management systems are presence in three stars and above as well. The report reveals that there are major usages of information systems in the hotels and limited to the accounting as well as credit card readers. There are approximately 50 % of surveyed hotels are utilized information system. On the other hand, nearly 75 % hotels use information system and there are 31 % of the three star hotels use information systems. On the other hand, information technology has evolved and becomes a major part of each aspects of the business. The hotel industry has accepted the changes in information technology and thee is moving towards integration of new technologies for fulfilling the target of satisfying demands of the organization. In order to get close to the adoption issue, it is required to focus on the process of adoption. The information technology serves the target of satisfying demands of the customers. Accompanying technological revolution in 1990, there are several opportunities as well as challenges for hotel business. The importance of the applications of information technology as well as use of internet has a large influence in the hotel industry. Strategic framework would be helpful to analyze the impact of information technology on the hotel business. Market wisdom at present days suggests that hotels need to embrace technology in order to complete against of traditional competitors. However, new entrants develop businesses with the latest technology. The new models of distribution need to be designed in order to lead the changes. The modern applications of information technology in the hotel business can be grouped under major areas such as operational, guest service as well as management of information (Yeet al. 2014). The functionality of applications are helpful to improve the service of business. These supports for instance have tendency to use the minicomputers for managing property. Diffusion of the system of IT in hotels increases efficiency, quality as well as flexibility in the hotel. It is required to have effective tactical as well as strategic management. The customers in the medium of internet are more than passive recipients in the process of marketing. Internet is one of the interactive mediums as opposed to the traditional marketing that generally allows one-way communication from marketer to the customers. PEST analysis would be helpful to analyze the market strengths for using the information technology in the business. Political / legal: The policies of the Government have a huge effect on internet users along with its potential development, through introducing the new policies as well as limitations. In addition, the privacy as well as security issues have an important role. Thus, the providers of internet need to consider the ethical matters as well as the usage of personal data that are stored within networks. In the present case scenario, launching of websites for booking hotel need to consider and fulfil all these factors in order to overcome the issues faced for these. Hotels deploying IT to gain competitive advantage may also face the legal risks for potential violation of the anti-trust laws as well as violation of privacy. The policies as well as processes need to be created in order to promote the comprehension of legal risks. Economic: Internet is not sensitive to the economic cycles. On contrary, it is considered that the hotel sales from the internet are affected through making economic changes in the countries from the booking of customers. It includes several changes for economic development and rates of interest (Yeet al. 2014). The inflation in currency fluctuations can be mitigated with the help of using IT in the business of the organization. Social/ Cultural: The changes in demography as well as attitudes of customers towards implementation of new technology have direct impact on business of the hotel chain. At present days, the customers are more skilled as well as advanced in utilization of the technology. In addition, the social system dimension needs to include larger social as well as political procedures through which interests of distinctive social groups makes interaction with each other and technology. Technological: Development of computerised networks as well as electronic distribution systems led to the huge structural changes within hotel industry. CRS becomes essentially in a database, which enables the organization in order to manage inventory as well as enhance accessibility to the information among the partners. Individual product suppliers in the industry became aware that the systems of integration as well the subsequent creation of shop window allows the products to be showed as well as bought across the world. IT would be important determining factor in the perspectives of competitiveness as well as profitability of the operations. It results new all-encompassing GDSs are matured from the original development. On the other hand, GDSs are the major drivers of the information technologies in hotel and being the backbone of industries. In addition, GDSs are single most significant facilitator of making globalized IT. Along with these, developments in GDSs are complemented through introduction as well as expansion of Internet. The development is facilitated in unprecedented scopes for having distribution of the multimedia information as well as interactivity between the principals as well as the consumers (Fraj, Matute Melero, 2015). It acts as interlinking structure of internet that enables provision along with the packaging of information, products along with the services. Furthermore, the information on the websites is chaotic and not well structured. Hence, it is required to have proper security measures in the websites so that the users can transact in safe and secured way. Recommendations With the present development of communication and information technology, it becomes necessary to implement the IT in the business of the organization. However, there are some problems faced by the organization at the time of deploying in the system of the organization and after deployment as well. In order to reduce the risks factors and overcome the challenges, some measures can be taken that are provided as followed. The organization needs to analyze the business scopes, target customers and potential infrastructure at first before deploying and using IT as one of the major parts of the process. It is important to launch used friendly and quickly accessible websites that can launched easily in the users devices. In addition, it is important to use secured data base for storing confidential information of the customers. Securing the process of transaction could be helpful to attract more number of customers and retain old customers for long by giving a belief of secured transaction process. Conclusion Rom the above discussion, it can be concluded that information system and information technology has an important role in hotel industry. Several programs like communication with stakeholders effectively can be achieved with the help of information system. On the other hand, corporate social responsibility, StayTogether loyalty reward system would be helpful for the organization in order to gain competitive advantages in the market. In addition, effective utilization of information system would be useful for the organizations to participate in the charity program. On contrary, enabling information technology and its applications are useful to combat difficult market situations for adopting communication and information technology in the business processes. References Cantallops, A. S., Salvi, F. (2014). New consumer behavior: A review of research on eWOM and hotels.International Journal of Hospitality Management,36, 41-51. Fraj, E., Matute, J., Melero, I. (2015). Environmental strategies and organizational competitiveness in the hotel industry: The role of learning and innovation as determinants of environmental success.Tourism Management,46, 30-42. Law, R., Buhalis, D., Cobanoglu, C. (2014). Progress on information and communication technologies in hospitality and tourism.International Journal of Contemporary Hospitality Management,26(5), 727-750. Law, R., Leung, D., Au, N., Lee, H. A. (2013). Progress and development of information technology in the hospitality industry: Evidence from Cornell Hospitality Quarterly.Cornell Hospitality Quarterly,54(1), 10-24. Nieves, J., Segarra-Ciprs, M. (2015). Management innovation in the hotel industry.Tourism Management,46, 51-58. Xiang, Z., Magnini, V. P., Fesenmaier, D. R. (2015). Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet.Journal of Retailing and Consumer Services,22, 244-249. Ye, Q., Li, H., Wang, Z., Law, R. (2014). The influence of hotel price on perceived service quality and value in e-tourism: an empirical investigation based on online traveler reviews.Journal of Hospitality Tourism Research,38(1), 23-39. Zervas, G., Proserpio, D., Byers, J. W. (2014). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry.Journal of Marketing Research.