The Impact of Information Systems on Business Organizations

This report examines the impact of information systems (IS) on organizations, specifically using Hilton Hotels as a case study. It begins with an executive summary and introduction, outlining the benefits of IS implementation in today's technological landscape. The report then provides background information on Hilton Hotels, including its business model and market position, followed by an analysis using Porter's Five Forces. The core of the report focuses on the methodology, including the context and objectives for IS implementation, the implementation process, and a timeline of activities and expenditures. Evaluation techniques are discussed, including the DeLone and McLean IS Success Model, Stakeholder Theory, and a CRM Evaluation Model. The report then applies these models to evaluate the benefits of using an IS system, including intangible and tangible benefits for various stakeholders. It also presents a cost-benefit analysis and discusses limitations of the IS system. The report concludes with recommendations for improvement and a comprehensive list of references, along with appendices. The analysis emphasizes how IS enhances customer satisfaction, streamlines processes, and contributes to overall organizational success. The report highlights how Hilton Hotels leverages IS to gain a competitive advantage.

Running head: IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
Name of the Student
Name of the University
Author Note

1IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
Executive Summary:
The purpose of the report is to present the concept of Information System (IS). The methodology
chosen for the report is focused on an organization that has implemented the IS within the
company. Various techniques for evaluating the effect of IS implementation into the organization
has been highlighted in the report. The report presents the result from the reach methodology
which sheds light on the various benefits received by the organizations as well as the various
stakeholders of the same. The report concludes with limitation from the IS system
implementation along with some recommendation for the same.

2IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
Table of Contents
Introduction:....................................................................................................................................3
Background of the Organization:.....................................................................................................4
Porter Five Forces:...........................................................................................................................5
Methodology:...................................................................................................................................5
Context and Objectives for IS Implementation:..........................................................................6
Implementation Process:..............................................................................................................6
Timeline of Activities and Expenditure:......................................................................................7
Evaluation Techniques:...............................................................................................................8
DeLone and McLean IS Success Model:.................................................................................9
Stakeholder Theory:...............................................................................................................11
CRM Evaluation Model:........................................................................................................12
Evaluation Model Application:..................................................................................................13
Benefits of Using IS System:.........................................................................................................14
Intangible Benefits:....................................................................................................................14
Stakeholder Benefit:..............................................................................................................16
Tangible Benefits:......................................................................................................................18
Cost Benefits Table:..................................................................................................................19
Limitation:.....................................................................................................................................19
Conclusion:....................................................................................................................................19

3IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
Recommendation:..........................................................................................................................20
Reference:......................................................................................................................................21
Appendix 1:...................................................................................................................................24
Appendix 2:...................................................................................................................................25
Appendix 3:...................................................................................................................................26
Introduction:
The technological advancements have brought about changes in the patterns of the
organizational structure of the companies. The relevant changes undertaken by the organizations
based on the rise of information technology is an important step that has led to the improvements
made by the organizations. The information system, is a group of events relating to the
management and transmission of important information which helps in the growth and expansion
of the business (Boonstra 2013). It is an organized system, which is used for the collection,
organization and the communication of the information.The organizations have evolved
eventually with the functioning of the Information systems and the technologies involved in the
process. It helped them in rendering the proper services based on the requirements of the clients.
The most intriguing part of this advancement helps in promoting the situation of the organization
among the range of consumers. Therefore, the report aims at providing the details of the benefits
enjoyed by the company based on their adoption of the information systems and the manner in
which the systems have helped the company in undertaking the improvements. The most
important consideration undertaken by the organizations is based on the requirements of the

4IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
clients. Therefore, the IS helps the companies in understanding the requirements of the clients
and bringing in modifications in their services.
Background of the Organization:
Hilton Hotels Corporation is one of the popular multinational hospitality companies that
is operating its business worldwide. The hotel brand was founded in 1919 by Conrad Hilton and
present the company holds 14 brands across diverse marker segments (Hilton Brands 2017). The
company is the 36th largest hospitality brand in the international market. As per the market
assessment made in 2016, the yearly revenue of the firm is US$ 11.663 billion (Facts Hilton
2017). In addition, this needs to be mentioned that the company has two chains under one name
along with more than 5000 locations in all over the world.
Considering the fact of using the IS system in operating the business across the globe,
Hilton Hotels Corporation is perhaps the best company undertaking the efforts of making the
most of the consumer oriented services. The company enjoys a competitive advantage over the
other companies through the awareness they create through their strong IS technologies
(Peppardand Ward2016). The organization is presently using the QnQ system. The organization
takes decision based on the information that it gathers based on the requirements of the clients
and the probable outcome of assessing the requirements of the consumers helps in the
development process of the organizations. Undertaking a decision is the most crucial part of the
organizational progress. Therefore, the involvement of Information technology has helped the
organizations in bringing about the considerable changes in the economic structures.

5IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
Porter Five Forces:
Forces Marking Reason
Rivalry among existing firm High
Number of multinational
competitors
Bargaining power of
suppliers
Low
Lack of uniqueness of the
service and products
Threat of substitute service Insignificant
There can be no substitute of
hotel service
Bargaining power of buyers High
Number of hotels are
available in the market
Threat of new entry Moderate
New hotels are emerging but
it is not possible to gain brand
loyalty within short span of
time
Methodology:
In regard to the importance of the IS system in the organizational business operations,
this section of the report proposes some models for the effective implementation of the IS system
within the organization. The models may not be directly linked with the implementation and
development of the IS model within the organization, but will help the organization to integrate
the models with the same.

6IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
Context and Objectives for IS Implementation:
The rapid technological advancement is the reason that has led the chosen organization to
implement the IS system to the organization (Clarke2012). Customer Relationship Management
(CRM) is one of the major and important part of the organizational management system as well
as of the IS system (Boonstra 2013). Before the implementation of the IS system within the
organization, the same was lacking its customer service. There were severe and unavoidable
issues that the company needed to resolve at the highest priority. The organization being a
multinational company, the customer management is given the highest priority. Before the
implementation of CRM within the organization, the company faced issues like customer
dissatisfaction, booking cancellation, payment issues and many others. Consequently, the
situation was leading the firm towards the loss of profitability and creating threats to the
sustainability of the same in the international context. In addition, other competitor organizations
belonging to the same industry was considering the IS system as one of the vital part of the
organizational management system (Cassidy 2016). Therefore, the purpose of implementing the
CRM to the organizational management system is to ensure the customer satisfaction along with
the profitability and sustainability of the organization.
Implementation Process:
The implementation of the IS system is thus based on the customer satisfaction and
profitability of the firm from its business operation (Petter, DeLone and McLean 2013). The
organization had to go through some stages for the implementation of CRM within
theorganization (Steel, Dubelaar and Ewing 2013). The stages undertaken by Hilton for the
implementation process are:
 Identification of the need for CRM

7IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
 Vendor research
 Installation of good business practice
 Formula creation for assessment of system benefits
 Identification of areas that needs to be under the usage of CRM
 Budget development
 Usage estimation for future
 Additional implementation or addition
 Integration of the system
These basic steps are followed by the organization for the implementation of CRM.
However, apart from these the implementation process needs more systematic procedures for
effective and successful implementation. The following chart is the timeline review of the tasks
undertaken for CRM implementation.
Timeline of Activities and Expenditure:
Duration Week
1
Expen
diture
Week
2
Expen
diture
Week
3
Expen
diture
Week
4
Expen
diture
Task
Infrastructu
re Readiness
3 days
$40,00
0
Process
Mapping
5 days
$30,00
0
Data
Cleanup
15 days $30,00

8IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
and Backup 0
Train users 4 days
$20,00
0
Evaluation Techniques:
The implementation of the CRM needs to be evaluated at the highest priority for
understanding the effectiveness of same within the organization. The aim of the evaluation
process is also to assess the differentiation of the situation before and after the implementation of
the process into the organization (Willcocks, 2013). There are different techniques that are used
for evaluating the situation of the organization customer management system in terms of
effectiveness of the CRM. The techniques however refer to some models and theories
appropriate to the evaluation process. The models used for Hilton’s IS system evaluation are:

9IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
DeLone and McLean IS Success Model:
Figure 1: DeLone and McLean model of Information Systems
Source: Delone and McLean 2003
The model proposed by DeLone and McLean is referred to the effectiveness of the IS
system within an organization. The primary objective of formulating this model is to determine
theclarity and accuracy of the communication.The six dimensions of the models
approachdifferent aspect of the IS system are the information quality, system quality, and
service quality which determines the service range of the company, accessibility of
information and service, capability of organization to meet the requirements of customers

10IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
respectively (Delone and McLean 2003). On the other hand, system use intention is the process
for assessing the user satisfaction which further indicates the net benefits of the firm from the
provided service.
Moreover, the system and service quality is also described through the usage intentions
and user satisfaction which leads through the net system benefits. The system quality is
implemented through the process of customization of the IS system, ease of learning and
efficiency of the system to the employees. In this way they can utilize the IS more effectively.
The information quality measures theoutput of an IS and the attributes that is considered
is timeliness, relevance, completeness and consistencyof information. The products element
emphasizes on information produced by an IS. Stakeholder and purpose orientation are the two
aspects of the quality. The organization gets the benefit that they can understand the demand of
the customer and fulfill their demands by addressing all the requirements. Electronic arts
benefitsmight be realized directly from the same processes that areconceptualized from the
respective viewpoints. Organization will also get the benefit of effective complexity
management, and increasingknowledge, flexibility and customer orientation.

11IMPACT OF INFORMATION SYSTEM ON ORGANIZATION
Stakeholder Theory:
Figure 2: Stakeholder Theory and Information System
Source: Mishraand Mishra2013
Stakeholders of the organization are referred to the people of the organization. The basic
theory of stakeholder is based on the organizational management system. Therefore, the
stakeholder theory for evaluating the implementation of CRM of IS system within the Hilton is
appropriate. The communication being one of the important aspects of both the stakeholder
theory as well as the CRM, the effectiveness of the CRM is evaluated by stakeholder theory