Information System Management: Contiki ERP Implementation Report

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This report provides a comprehensive analysis of implementing an Enterprise Resource Planning (ERP) system for Contiki, a prominent tourism organization. The study begins with an executive summary and introduction, highlighting the need for ERP to enhance Contiki's operational efficiency and customer satisfaction. It details the organizational context, emphasizing Contiki's history, global presence, and the necessity of integrating information technology. The report includes an environmental analysis using Porter's Five Forces and SWOT analysis to assess market dynamics, competitive pressures, and internal strengths and weaknesses. It identifies issues and opportunities, followed by a discussion of IT/IS strategies and trends. The core of the report outlines the Software Development Life Cycle (SDLC) model, covering planning, system analysis and design, implementation, and post-implementation activities. It addresses risk management, providing a conclusion that summarizes the benefits of ERP adoption, such as improved communication, service effectiveness, and customer satisfaction within the tourism industry. References are also included.
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Running head: REPORT ON INFORMATION SYSTEM MANAGEMENT
REPORT
ON
INFORMATION SYSTEM MANAGEMENT
Name of the Student
Name of the University
Author Note:
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1INFORMATION SYSTEM MANAGEMENT
Letter to Sponsor:
To
Layton Andersen
Vice President of Digital and Technology
Level 3, 35 Grafton Street
Woollahra, NSW 2022, AU
Mr. Andersen
This is to inform you that Contiki has become of the largest tourism organization of Australia.
This organization is ruling Australian tourism industry for more than 50 years for delivering best
services to their customers. This organization has mainly intended to deliver best services to their
customers by making the travel experience better for the visitor. One of the primary belief of this
organization is delivering best travel experience to the consumers will definitely help to enhance
their business. Along with this it is also very prominent that the food, transport as well as the
accommodation is one of the best while comparing it with the others. However, it is also very
essential to effectively utilize the information present in the organization as well as to integrate
the operations of the nominated organization with the purpose to enhance the communication and
service effectiveness as well as it will definitely improve the customer satisfaction.
Thus, I am proposing to implement ERP system into the infrastructure of Contiki in order to
enhance the discussed features into the business operations.
I am providing a demonstration on the approached system and looking forward to get a positive
response from you.
Thank You
Kind Regrads
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Executive Summary:
This paper analyses the implementation of system of ERP into Contiki organization.
System of ERP is valuable tool for administrative control and information. It could be used for
managing each level of Contiki. ERP system’s feature at Contiki are module of financial
accounting, module of quality management, module of enterprise controlling, marketing and pre-
sales management system, billing and order management system, module of fixed assets and
module for consumer relationship management. ERP system in Contiki would reduce need for
maintaining and buying several software systems, which would enable every department of
Contiki for performing several functions simultaneously. This ERP system eliminates manual
process that is labour-intensive, which makes collection of data more accurate and efficient. This
paper discusses the implementation process of ERP system in Contiki organization.
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Table of Contents
Executive Summary:........................................................................................................................2
Introduction:....................................................................................................................................5
Organizational Context:...................................................................................................................6
Analysis on environment:................................................................................................................7
Porters Five Force Model-.................................................................................................................7
Threat of Substitution-.....................................................................................................................7
Threat of new entrance-...................................................................................................................8
Bargaining power of Customers-.....................................................................................................8
Bargaining power of Suppliers-.......................................................................................................8
Competitive Rivalry-.......................................................................................................................9
SWOT Analysis-...............................................................................................................................9
IT/IS strategies and trends-.............................................................................................................10
Identification of the issues and opportunities:...............................................................................10
Software Development Life Cycle Model:....................................................................................11
Planning-Justification of the choosing Enterprise Resource Planning............................................11
System analysis and design-............................................................................................................12
Implementation-..............................................................................................................................13
Post implementation activities-.......................................................................................................14
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Risk Management-..........................................................................................................................14
Conclusion:....................................................................................................................................15
Reference:......................................................................................................................................16
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Introduction:
Contiki is one of the most popular tourism industry present in Australia for more than 50
year. While analyzing the organizational operations it is identified that this organization has
mostly focused on providing best services to their visitors. For any tourism industry it is very
essential to impress their customers. Making allowance to this concern it is observed that
enhancement in their working process will definitely help to enhance their business services as
well as their customer experiences. Followed by this concern it is proposed to implement ERP
systems into the business services of Contiki. As it is identified from the investigation that
Contiki has become the most enhanced tourism organization due to their food quality,
accommodation as well as their best quality travelling experience. Thus, it will be very effective
if we implement information system into the business infrastructure.
As the enterprise resource planning is nothing but a system which are applied into the
organizational infrastructure with the purpose to centralize the organizational operations by
integrating all of the department present in an organization. Considering this discussion it is
identified that in the tourism industry ERP holds a major influence their services. One of the
primary objective behind this approach is to deliver faster and most effective services to
customers (Chauhan and Singh 2017).
Followed by this consideration this paper will give a proposal on how the implementation
of ERP can influence the services of a tourism industry. In order to get a detail information about
this proposal in the below section a brief discussion on environmental analysis and the SDLC
model as well as an detail risk analysis is present which will help to understand how this
adoption may influence the business services of Contiki.
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Organizational Context:
As it is identified from the investigation that Contiki is an old company thus, it is visible
that it has already gained customer trust and has created a good impression on their customers
mind. Making allowance to this concern it is identified that this company has their branches over
Australia, South America, Asia, Africa, and Europe as well as in other countries. Followed by
this investigation it is identified that the company has effectively delivered their best services
like best travel experience as well as accommodation. However, considering the rapid growth of
technology it is identified that the organization needs to incorporate information technology into
its business structure (Melián-Alzola et al., 2020).
Followed by this concern it is identified that others tourism organization present in
Australia has intended to incorporate effective information technologies in order to manage their
business services. Apart from the considerations of their best quality services it is identified that
fir any tourism industry it is also very essential to effectively communicate among the
departments present in that organization’s infrastructure. As this will help to enhance the services
of the organizations by reducing service latencies (Chofreh et al., 2020).
\While analyzing the mission and vision of this organization it is identified that they have
entirely contributed their services to improve their customer satisfaction thus it is very essential
to incorporate effective customer management system that which help to manage this operation.
However, I will be not possible to implement different systems for different activities. Thus, it is
determined to adopt the ERP systems into the organizational operations which will help to
integrate all of the organizational activities that may enhance the services of Contiki.
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Apart from the above aspects Contiki consists of more than 300 staffs working with them
for each branches thus, it is identified that adoption of ERP system will definitely help to
collaborate all of the activities present within the organization with the purpose to keep the track
of every activities.
Analysis on environment:
Considering the above discussion it is identified that the organization requires to
implement ERP system into their business infrastructure. Making allowance to this concern a
detail analysis on the organizations based on its external and internal factors is mentioned in the
below section with the purpose to get a detail idea about the environment of Contiki and which
are the factors that is impacting its business services:-
Porters Five Force Model-
Threat of Substitution-
After analyzing the business operations of Contiki Company it is identified that due to
introduction of technologies into the business infrastructure the market demand has changed in a
significant way. Which may majorly impact impression of this organization and that may cause a
replacement of Contiki by some other tourism organization. One of the most prominent reason
behind this problems is the youth that are more comfortable which fast services with high
accuracy. Followed by this concern it is identified that companies like INTRO Travel may
replace Contiki as they have already adopted technologies for their business purpose.
Thus, it can be stated that into the business field of Contiki a huge threat of substitution is
present which needs to be mitigated for enhancing the services of the nominated company.
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Threat of new entrance-
Along with this above discussion it is identified that in the business operation of Contiki
the threat caused by new entrance is very low. As it is identified from previous study that Contiki
is one of the old tourism company present in Australia although there are more than 50
companies thus, according to the analysis there will be no such impact on Contiki for new
entrance (Torres and Singh 2016).
Bargaining power of Customers-
The power of bargaining is one of the major threat that may influence the services of
Contiki. As followed by the traditional way it was not easy to compare and contrast the prizes of
services providers but after the incorporation of the ERP system Contiki will be able to deliver
services with low cost that may reduce the threat of customers bargaining power into the
organizational services of Contiki (Moreno-Izquierdo et al., 2016).
Bargaining power of Suppliers-
Along with this aspect it is identified that the due to the incorporation of ERP into the
organization’s infrastructure the bargaining power of the supplier will be high as the adoption of
information technology the suppliers will be able to compare between best deals offered by the
organizations. Thus, it will be difficult to maintain supplier sustainability (Varelas and
Georgopoulos 2017).
Competitive Rivalry-
Apart from the above discussion it is identified that while analyzing the competitor of this
company there are several competitors present which holds the capabilities to replace Contiki.
Thus, it is very essential to develop organizational strategies that will help to reduce the threat of
competitive Rivalry (Nyanga, Pansiri and Chatibura 2019).
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SWOT Analysis-
Strength Weakness
Contiki is one of the oldest tourism
industry which is popular for their best
quality services.
This company offers several services
related to accommodation, travelling,
tours as well as foods.
The quality of services offered by
Contiki is one of the best among the
other tourism industries present in
Australia.
Contiki has offered very healthy and
friendly work environment for their
employs.
While analyzing business operations
of Contiki it is identified that lack of
utilization of Technology is one of the
major threat into the infrastructure of
this organization which significantly
impacts the services of this company.
Due to less utilization of technologies
into the infrastructure of Contiki it is
identified that since, this organization
consist of a large number of staffs as
well as suppliers it is very difficult to
manage these with traditional
approaches.
Opportunity Threat
Followed by this aspect it has been
identified that for the further benefits
of the organization that adoption of
technologies will surely help to
enhance the services of the
organization as well as they will be
able to beat
Followed by the analysis it is
identified that in this organizational
environment there is a major threat
present caused by other competitors
that has intended to adopt the services
same as Contiki.
IT/IS strategies and trends-
Considering the above discussion it is identified that into the business structure of Contiki
the adoption of IT/IS strategies will help to integrate the services of the tourism industry as this
will convert the entire organizational process into a centralized system by which it will be very
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easy to track the organizational activities of Contiki. Followed by this discussion it can be
summarizes that the adoption of ERP will help Contiki to enhance their organizational services
by which they will be able to enhance the customer satisfaction as well (Wagaw and Mulugeta
2018).
Identification of the issues and opportunities:
Issues of the chosen organization, Contiki: The major issue that have been spotted in the
operational process of Contiki is that the cost that it charges for providing service s have been on
the higher end. Contiki was generally booking 3 star hotels for accommodation. Another issue
that have been spotted in the tour package is that in the big cities, the accommodation that was
provided was at a distance of more than 40-50 minutes. It have been seen that with an increase in
quality of the hotels that they provided the distance of the hotel form the main city also
increased. Hence there was a constant compromise in the process. Wi Fi have been one important
aspect that is to be considered in regular day to day life. However, this becomes an issue for the
touring process of Contiki. They do not provide free Wi Fi. This issue that have been spotted and
requires proper attention to eliminate the issue. They have been charging for Wi Fi and the
charges are quite high. This increased charges for Wi Fi have been acting as a major issue. The
food that is provided by the hotels is limited. This also acts as an issue.
There are certain opportunities that are present. The main opportunities that are present in
the operational process of Contiki is that diversity of ours and travels that they provide is high
and this benefits the entire system. This is one of the major reason that they have been gaining
constant success. The tour packages are set as per the cost that is to be paid by the clients are as
per the services that they take. Hence this makes the tour packages for every single member. The
locations that are covered are also highly diverse. This ensures that people wanting to travel
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different locations will be able to use their services. The tour packages are modifiable and
flexible in nature. It can be stated that in case an added excursion trip is to be performed, it can
be done by adding the excess amount.
Software Development Life Cycle Model:
Planning-Justification of the choosing Enterprise Resource Planning
ERP is the selected technology in this case. ERP have been benefitting in performing
proper synchronization of the reporting process and add innovation and automation in the
process. The main aspect that is to be considered in the process is help the employees maintain a
spreadsheet in a manner that will be increasing the automation process (Heinzelmann 2017).
ERP helps in pulling out reports from a single system. It can be considered that in case of the
Sales orders the entire data is transacted to the financial department without any kind of manual
effort being given.
The main reason of selecting technology of ERP in the tourism company is that there will
be decrease in the operational cost. This decrease in the operational cost includes the fact that
proper controlling of the human resources can be made. Management of finance have been
another issue that is to be considered in the processing. Analyzing, region planning can also be
made with the help of ERP implementation. The basic errors that are to be considered due to
manual processing of the operational process can be eliminated. With the help of ERP system the
main aspect that is considered is that there will be an increase in efficiency as well as accuracy of
the functionality (Attri and Panwar 2018). It gets easier for the staffs to perform the operational
process. It can be stated that the data management will be performing better analysis of the
operational process. Quick and faster access to data can be received with the help of the ERP
system. As data is completely sored in the system, the main benefit that is received in the process
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ensures that the data is centrally available and hence wise tracking of the data can be made in a
regular basis. Tracking the functionality of the employees are also decided in the process. It can
be stated that the data that have been generated by the working of the employees of Contiki will
be well analyzed.
Feasibility: Feasibility of implementing ERP in the operational system have been high. The
major treason of implementing ERP is that the cost that have been incurred in the initial stage is
recovered in a shirt period. In excess to a very short NPV, providing a very high return of
investment. It can be stated that the cost that is incurred in training of the employees is much
higher. However this ensures that the employees will be getting proficient and will be growing as
a unit. This will be acting as an asset to the organization. Hence it can be stated that
implementation of ERP have been acting highly feasible and hence this is one of the major
aspect that is to be considered in the process and this will be beneficial.
System analysis and design-
The system design that is to be selected in the process is namely Web Based Architecture.
This ensures the fact that proper management of the data sets that are collected will be
performed. In this case the web based system, specific run of the web environment can be done.
The clients are responsible for the interface that it has (Jagoda and Samaranayake 2017). This is
one of the major aspect that is considered in the process. The web enables web connectivity for
the systems. The entire process is based on the multilingual interface. It can be stated that the
entire process is platform independent. The installation process is easy as well (Simmonds,
Tadesse and Murthy 2018). The maintenance of the process have been easy and this is one of the
major reason of selecting web based ERP system. There are certain aspects that are to be
considered. It can be said that the processing of encryption will be performed with the help of
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SSL. This have been benefitting the operational process and the encryption process gets
benefitted and the efficiency increases. The authorization system that can be considered in the
process is also highly efficient. This will help in increasing the robustness of the system. There is
a presence of cache cleaning software in the process.
With the introduction of internet the main aspect that is to be considered in that the ERP
system develops the processing and integrates same with internet. In this case the main alteration
that is focused in this case is that there is a complete migration in the architecture that is being
used. The architecture changes from client/ server architecture to web based client/ server
architecture. The entire architecture has 3 major layers. The layers are namely user interface, web
server and application/ data server (Ali and Miller 2017). The user interface layer is focused on
proper analysis and processing of the shifting of the layer from the GUI interface to the web
browser interface. The usage of the web based server ensures that there is usage of HTML and
ASP transaction. This acts as a gateway in between the application/ fata server as well as the user
interface. The web application is also responsible for performing proper distribution of the
database storage.
Implementation-
There are 3 major types of implementation process. They are namely Express, Standard
and Advanced. There are certain stages that are to be maintained in the process. They are namely
discovery, plan and monitor, Analyze, build the ERP system, stabilize the system, deploy the
system and after that proper monitoring of the functioning process will be considered. These are
the major aspects that are to be considered in the process. In case these steps are followed in a
proper manner the entire process can be performed in a better manner and Contiki will be
successful in performing ERP implementation.
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Post implementation activities-
The sole activity that is to be implemented in the process is namely monitoring of the
operational process. After implementation of the ERP system, the main aspect that is considered
is that operating process of ERP have been performed in a better manner (Efe 2016). It can be
stated that in case there will be any kind of issues during the working process, in this stage, it can
be detected and hence this will be benefitting the entire process.
Risk Management-
Risk Impact Likelihood Mitigation Strategy
Data breach High Medium Usage of firewall in
the database will be
acting beneficial.
Excess initial cost Low High It can be stated that
the initial cost that is
required in the
process is high.
Hence creation of
NPV and ROI and
hence wise
investments are
needed to be made.
Expertise issue Medium Medium Proper training is to
be provided to the
employees in order to
perform the
functionality via ERP.
Conclusion:
From the above discussion it can be stated that Contiki have been one of the most popular
tour and travel agency that have been providing traveling services to their clients. They have
been enjoying high popularity in the process. However there are certain issues that have been
detected in the process. As per the detected issues, implementation of ERP have been suggested.
This suggestion will be ensuring that the efficiency of the entire process will be on an increasing
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15INFORMATION SYSTEM MANAGEMENT
node. This report also discusses about the architecture that is to be used and the implementation
process is also stated. The issues that are present in the system is also stated in the process.
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Reference:
Ali, M. and Miller, L., 2017. ERP system implementation in large enterprises–a systematic
literature review. Journal of Enterprise Information Management.
Attri, R. and Panwar, N., 2018. A literature review on the implementation of Enterprise Resource
Planning (ERP) system. International Journal of Metallurgy and Alloys, 4(2), pp.21-24.
Chauhan, V. and Singh, J., 2017. Enterprise Resource Planning Systems for Service Performance
in Tourism and Hospitality Industry. International Journal of Hospitality & Tourism
Systems, 10(1).
Chofreh, A.G., Goni, F.A., Klemeš, J.J., Malik, M.N. and Khan, H.H., 2020. Development of
guidelines for the implementation of sustainable enterprise resource planning systems. Journal
of Cleaner Production, 244, p.118655.
Efe, B., 2016. An integrated fuzzy multi criteria group decision making approach for ERP system
selection. Applied Soft Computing, 38, pp.106-117.
Heinzelmann, R., 2017. Accounting logics as a challenge for ERP system implementation: A
field study of SAP. Journal of Accounting & Organizational Change.
Jagoda, K. and Samaranayake, P., 2017. An integrated framework for ERP system
implementation. International Journal of Accounting & Information Management.
Melián-Alzola, L., Fernández-Monroy, M. and Hidalgo-Peñate, M., 2020. Tourism Management
Perspectives. Tourism Management, 33, p.100606.
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Moreno-Izquierdo, L., Ramón-Rodríguez, A.B. and Perles-Ribes, J.F., 2016. Pricing strategies of
the European low-cost carriers explained using Porter's Five Forces Model. Tourism
Economics, 22(2), pp.293-310.
Nyanga, C., Pansiri, J. and Chatibura, D., 2019. Enhancing competitiveness in the tourism
industry through the use of business intelligence: a literature review. Journal of Tourism Futures.
Simmonds, D., Tadesse, A. and Murthy, U., 2018. ERP System Implementation and
Sustainability Performance Rating and Reputation.
Torres, E.N. and Singh, D., 2016. Towards a model of electronic word-of-mouth and its impact
on the hotel industry. International Journal of Hospitality & Tourism Administration, 17(4),
pp.472-489.
Varelas, S. and Georgopoulos, N., 2017. Porter’s competitive forces in the modern globalized
hospitality sector–the case of a Greek tourism destination. J Tour Res, 18, pp.121-131.
Wagaw, M. and Mulugeta, F., 2018, December. Integration of ICT and tourism for improved
promotion of tourist attractions in Ethiopia. In Applied Informatics (Vol. 5, No. 1, p. 6). Springer
Berlin Heidelberg.
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