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INFORMATION SYSTEMS

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The implementation of the "OnQ" information system by Hilton Hotels Corporation aimed to standardize and enhance its computer operations following a chaotic hardware merger after acquiring Promus Hotel Corporation. This strategic decision not only streamlined Hilton's IS infrastructure but also improved customer service and operational efficiency across its various hotel brands. By enabling effective cross-selling, Hilton garnered significant incremental revenue, positioning itself with a competitive edge in the hospitality industry.

RICHFIELD GRADUATE INSTITUTE OF TECHNOLOGY (PTY) LTD FACULTY OF BUSINESS ADMINISTRATION MANAGEMENT & COMMERCIAL SCIENCE QUALIFICATIONS ASSIGNMENT COVER SHEET Name & Surname: ______________________ ICAS No: _________________________ Qualification: __________________ Year: _______ Module Name: ____________________ Specialization: _________________________ Assignment Due Date: _______________ ID Number: __________________ Date submitted: __________ Semester: _______________ ASSESSMENT CRITERIA MARK ALLOCATION EXAMINER’S MARK MODERATOR’S MARKS REMARKS MARKS FOR CONTENT QUESTION ONE QUESTION TWO QUESTION THREE QUESTION FOUR QUESTION FIVE TOTAL 90 MARKS FOR TECHNICAL ASPECTS TABLE OF CONTENTS Accurate numbering according to the numbering in text and page numbers 2 LAYOUT AND SPELLING Font – Calibri 12 Line Spacing -1.0 Margin should be Justified 4 REFERENCE According to the Harvard Method 5 TOTAL MARKS 10 TOTAL MARKS FOR ASSIGNMENT 100 EXAMINER’S COMMENTS MODERATOR’S COMMENTS Name of the Examiner : __________________ Name of the Moderator: __________________ Signature of Examiner: __________________ Signature of Moderator: __________________ Date : ___________________ Date: ____________________ NB: 1.Candidates are advised to read the guide lines on page 2. 2. Assignment questions are on page 3. 3. For reference use prescribed, recommended books and other resources you may come across. 4. Correct referencing carries ( Marks). The purpose of an assignment is to ensure that the Student is able to: Use methods of enquiry and research in a disciplined field. Interpret and evaluate text. Have a sound understanding of key principles and theories, rules and awareness. Solve unfamiliar problems using correct procedures as well as investigate and critically analyse information and report thereof. Present and communicate information reliably and coherently. Instructions and guidelines for writing assignments Use the correct cover page provided by the institution. All essay type assignments must include the following: Table of contents Introduction Main body with subheadings Conclusions and recommendations Bibliography The length of the entire assignment must have minimum of 5 pages. Typed with font size 12 Calibri The quality of work submitted is more important than the number of assigned pages. Copying is a serious offence which attracts a severe penalty and must be avoided at all costs. If any student transgresses this rule, the lecturer will retain the assignments and ask the affected students to resubmit a new assignment which will be capped at 50%. Use the Harvard referencing method. Please note that these guidelines are not applicable to quantitative subjects like Accounting and Statistics. INFORMATION SYSTEMS 511 QUESTION ONE [30 MARKS] 1.1 Describe the four categories of Application Software and explain how System Software is different from Application Software (20) 1.2 Discuss the Cloud Storage and give the advantages of using such storage (10) QUESTION TWO [30 MARKS] When purchasing a computer, you must consider the type of input, data storage, output and processing hardware devices for the computer. Use the Internet, a newspaper advertisement, flyer or visit a computer store to locate a listing for two computers. 2.1 Use Microsoft Word to create a chart that you will use to compare the capabilities of the two computers. Five suggested capabilities have been entered into the chart. (10) 2.2 You need to add any other five capabilities that you think will be important when making your decision. (15) 2.3 You need to explain the reason for your preferred computer between Computer 1 and Computer 2. (5) Computer Components Computer 1 Computer 2 Preferred Computer RAM CPU Speed Monitor Size Hard Drive Size QUESTION THREE [30 MARKS] Hilton Hotels Implements “OnQ” Hilton Hotels Corporation owns, manages, and develops hotels, resorts, and timeshare properties totalling 337,000 rooms at 2,084 properties worldwide. Hilton hotel brands include Hilton, Hilton Garden Inn, Doubletree, Embassy Suites, Hampton, Homewood Suites by Hilton, and Conrad. Hilton also develops and operates timeshare resorts through Hilton Grand Vacations Company and its related entities. In a strategic move, Hilton acquired the Promus Hotel Corporation, with some 1,600 hotels and 45,000 employees. Although the acquisition made perfect business sense, it created many problems for the company’s IS organization. Even before the purchase, the two companies had a hodgepodge of computer hardware, including laptop and desktop computers from various vendors, plus HP-9000 and IBM AS/400 servers. Following the acquisition, Hilton was left with a hopeless jumble of IS hardware, software, and databases. Not only was the resulting tower of Babel expensive to operate and maintain, but it was not as reliable as needed to support the business. Hilton decided to implement a common IS platform to link all its brands and all its hotels. Such a common platform would also improve the reliability and efficiency of computer operations by simplifying and standardizing the architecture. Hilton replaced the various computers and servers with Dell computers connected to powerful Dell servers holding common software and data about employees and customers. The total cost of the conversion was close to $4 million, but Hilton expects to save about $5 million of its $150 million IS budget. Now with “OnQ,” as the system is known, when a frequent guest walks into a Hilton hotel, reservation specialists can talk to that guest about his or her last stay at a Hampton or Embassy Suites hotel, report that the guest’s special room requirements and amenities have been taken care of, and see that his or her reservation next week at the Homewood Suites, Hilton, or Doubletree down the road or in another city is all set. The ability to cross-sell among the entire Hilton family of brands helps ensure that Hilton keeps business within its system when a customer’s first choice is not available. In fact, cross-selling accounted for more than $300 million per year in incremental system wide booked revenue. None of Hilton’s competitors has this capability, and with technology advancements taking on increased importance in the years ahead, it gives Hilton a real competitive advantage. In addition, this common platform has enhanced the efficiency and productivity of back-office operations, such as payroll, purchasing, and financial forecasting to maximize revenues. Hilton has been able to create a distinct advantage through the implementation of new information systems to operate the business efficiently and maximize customer service and loyalty. In short, information systems are helping Hilton bring customer service to a new and even better level. QUESTIONS 3.1 What would you identify as the biggest benefit that Hilton gained by implementing it “OnQ” information system? (10) 3.2. What do you suppose were some of the factors that were considered in selecting the vendor for the computer hardware? (10) 3.3. Do you think that Hilton will be able to maintain a permanent competitive advantage with its “OnQ“system? Why or why not? (10) SOURCES: Gary H. Anthes, “Hilton Checks into New Suite,” Computerworld, June 30, 2003, www.computerworld.com; “PeopleSoft: Hilton Customer Success Story,” accessed at PeopleSoft Web site, www.peoplesoft.com, January 20, 2004; “Room to Grow,” Dell Web site, February 2003, www1.us.dell.com; “Hilton Hotels 2002 Annual Report—Dear Fellow Shareholders,” accessed at Hilton Web site, www.hilton.com, January 20, 2004. TOTAL MARKS 100