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Management Information Systems


Case Analysis
Harrah’s high Payoff from Customer Information

Date: 16th March 2006

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1. Discuss the factors that drove Harrah’s customer relationship Strategy.

a) Integration of various casinos – This was the most important and effective step taken by Harrah. The integration helped them maintain commonalities in the gambling experience for customers. This in turn helped them in building a brand for the organization and subsequently increasing their customer base.

b) Customer relationship Management through IT – The decision to use information technology for CRM had been very successful and has helped Harrah retain and capture new customers. The Information
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Rewarding customer loyalty- MWB helps Harrah’s managers to segment customers and study their attributes so as to predict their future likings. In this way they can design new services and offers rewards suited to customer preferences. The rewards can also be tracked as to their usage.

The factors that contributed to achieving this alignment are: • Gary Loveman who was both the CIO and Director of strategic marketing for Harrah’s Entertainment Inc. This meant that there was no scope of miscommunication or filtering of objectives from business strategy to IT strategy formulation. He was a former Harvard professor and had an understanding of the customer behavior which was critical for any CRM strategy. • Coordinating the data warehousing job with the IT consultant NCR’s Professional Services group and not outsourcing the job. This meant that Harrah’s IT department was responsible for the project and was receiving expertise from the consultant. The decision helped the company implement a smooth IT knowledge transfer plan without compromising on the seriousness of the business objectives. The factors that detracted from achieving this alignment are: • Harrah’s initial architecture was inadequate for MWB as complicated queries took infinitely long run time. The problem was solved by consulting NCR. • Manual play games like Blackjack making it difficult to enter customer data and manual entry system for hotel reservations.

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