Introduction to Stonebridge
Stonebridge, since 1991, is a middle size, privately owned hotel development and hospitality management company. Currently, this firm owns more than 7000 guest rooms, holding franchise license with Hilton Worldwide, Marriott International, Starwood Hotels and Resorts, and InterContinental Hotel Group. Its primary bands are Holiday Inn, Hampton Inn & Suites, Marriott Hotels. [1]
Stonebridge’s problems to be resolved
As of 2006, hotel information systems had been fragmented. With applications catering to specific functions with little or no integration between each system. In a larger sense, hospitality was hampered by legacy systems which were often incompatible and hard to update. [2] Since Stonebridge had acquired many hotels while growing, it had many old compatibility related problems. These hotels’ management systems are inconsistent.
• Invoice processing was inefficient and error prone. This process had been totally paper and manual based. Worse, aside from difficulty to find invoices, some invoices had been missing.
• Inconsistencies between payroll and employee time tracking management systems. The process of payroll was inefficient and took a long time
• Rolling up financial data required too much time and labor for each hotel when they were preparing monthly financial reports for investors
• Outdated paper based and manual processes within the company, which not only was inefficient but also costing
• Too many databases, their data was
Sales invoices are prepared in batches on a daily basis using numbered sales invoices. Sales invoice numbers are automatically generated by the company’s computer system. The accounts receivable clerk does not have appropriate computer rights to override the computer-generated invoice number. Upon preparing sales invoices, the accounts receivable clerk verifies that the first invoice number of the batch is consistent with the last invoice number of the previous batch. Inconsistencies or skipped sales invoice numbers are investigated and resolved before new sales invoices are prepared. The items shipped are compared to the items billed for proper quantity, price, and other sales order terms.
There are several red flags in the invoices. There are several invoice numbers that are repeated and have an A at the end of the repeated invoice.
The staff was made complacent by technology and leaned on the technology to hold and reproduce information. They never checked on the validity of the information they were receiving from the system. They also received information from the system in a form that was not easily usable.
Consequently, the potential increased volume of transactions and vendors would require an increase in the number of employees to perform the activities if the existing process were to be maintained. The increase in transaction and vendor volumes would be relative to the amount of time it takes to manage the invoicing of vendor payments. Of the six days per month taken to manage the processes, four days are for invoicing, which would now need to be multiplied by four, resulting in 16 days per month, more than half of the month being spent processing invoices by one of The Store’s admin team. This is valuable time taken away from more productive activities.
* Software (Stellex, in 1987; Stellex 2.0, in 1992; centralized IT systems; E.Piphany; JD Edwards). – Appendix 1
Invoices are accounted for as spent as soon as the work has been performed. Another inadequacy with
This new system would allow for the finance office to create pretty well any type of report that you could look for,
InterContinental Hotel Group is a hotel company with over 350,000 employees working in 100 countries. It has over 5,000 hotels globally. One of IHG’s brand is the Holiday Inn, the Holiday Inn’s international headquarters are in Americas, Europe and Australasia. In London, UK, there are 72 hotels with the Holiday Inn or Holiday express brand. The InterContinental Hotel Groups structures their business into sections depending on what the hotel’s aims are. For example, the Holiday Inn Resort is abroad with outdoor swimming pools, it’s a very holiday place when you can spend 1-2 weeks there where the Holiday Inn is a place to stay over for one night or even the weekend. These two hotels have the same brand but different aims.
As we discussed in class, every business is faced with these issues and they are important to managers making strategic decisions. One of the first things learned about business is that if there is no demand for a good or service, the firm that provides it will not continue to exist. Over time the hotel industry has continued to change with market conditions and make itself attractive to business
Homestyle Hotels Inc is a result of merger of Lifestyle Resorts and Home Away Hotels. Each individual hotel operates in silos with no standardized process to capture client information. Initially, Ben Garrett (the IT director)’s mandate was to ‘consolidate the firm’s IT’, however with the said objective having been achieved, the higher management now wanted a more cohesive picture to enable better analysis and present a consistent picture to the outside world. The roadblocks to the integration are one too many- two different hotels, two different ways of working, vast geographical expanse. The question now was, of the two vendors who had come to present their software applications, which application would most suit the
3.1 For each hotel, what is the role of technology and the role of operations
The new employee scheduling system that Walmart has implemented is unethical. Calling an employee last minute for an opening is unethical not only because they will be caught off guard, but because they also have other things in their life that they might be doing in that moment they recieve a last minute shift call. This creates an environment for Walmart that includes employees that are stressed out, due to being called in at the last minute, and may create a decrease in productive work being done, based of bad attitudes the employees may have while working. Personally, if I were an employee at Walmart I would do anything I could to get this new system out of the business as a whole. Using
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Inventors: Andreas Elkeles (Foster City, CA, US) Fabian Guenther (Mauer, DE) Philipp Suenderhauf (Leimen, DE) Andreas Bold (Ludwigshafen, DE) Peter Latocha (Malsch, DE) Bernhard Drittler (Walldorf, DE) Joerg Heitmann (Walldorf, DE)
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