A company that currently runs just 1 hotel building in the city, currently uses an old software system that runs directly on one Windows XP desktop computer at the reception desk, to manage all the room bookings, which currently have to be arranged over telephone. They are wanting to replace it with a newer system, because the current computer is vulnerable to viruses and malware, and the existing system doesn't work on newer Windows 10 machines. As a business analyst working on a project for the hotel, you have found 2 potential candidate systems they could go with.

The first one is a service which runs on cloud-based infrastructure (i.e. on the internet), that allows a hotel to accept bookings through an internet website that is customized to the hotel's needs. It is provided by a local software development business that has just 3 employees, one of which is the programmer, one is the manager and marketing director and the third is the person who configures the installation of the service for each new hotel company that decides to purchase this service. So far only 2 other hotel companies are using the service, as it has only been available for 3 months. The price for the service is $4,000 per month per hotel.

 

The other one is another service that runs on cloud-based infrastructure and is used by 10 international hotel chains for various hotels all around the world. The service has been available for 8 years. There is a large group of over 40 software developers including security specialists, and 80 configuration/set-up and support specialists employed by the company, spread across the 60 countries that the company has a presence in. The service costs $70,000 a year and allows a hotel company to manage as many hotels as desired, for that price.

 

Tasks:

a) Identify 4 risks that could apply to the situation of switching to a replacement system. Try to identify risks which may have different risk ratings on the different systems.

 

b) For each of the systems, consider each of the risks from sub-question A (the previous answer box), and categorise it as either low, medium, or high risk if that system were to be adopted. Also categorise each risk as either low, medium, or high likelihood of occurring for that system.

 

c) Based on your assessment in sub-question B, which system would you propose the hotel adopt? Give reasons for your proposal. Please indicate clearly in your answer when you are answering sub-question A, B, and C. 

 

Answer:

As technology improves, there is a need for us to adapt to new technologies.

The main reason for this is that the old technologies are reducing and mostly not in use. In case of any small issues, we will not get any person to work on them. So, it is better to adapt to the new technologies and systems in the market.

From the two systems given in the question, I prefer the second system because

• it is used in many hotels for more years.
• It has several staffs to work on it.
• It is very strong to withstand in the market for several years.
• the service provided is worth the money.
• There are not many high risks in it as most of the risks are addressed in no time by the staff.
• working in cloud infrastructure will lead to no data loss.
• we can verify the system by reading the reviews of it submitted by other hotels.
• It is the best option among the given two systems.

Step-by-step explanation

a) RISKS WHILE SWITCHING TO A REPLACEMENT SYSTEM:

1. While switching to a new system, it will be difficult for the current staff at the reception desk to work in it. It may take time for the staff to learn the new system and adapt to it. Proper training about the system should be provided by the service company.
2. There may be a chance of missing the old details of the members who resided in the hotel.
3. The replacement of the system will cost more depending on the system that is implemented
4. In case of any small issue also, we should depend on the staffs of the system to clear and update the system. This may take more time during which the system will not work properly.

b) SYSTEM 1:

SYSTEM 2:

c) Based on your assessment, I would suggest the second system for the hotel proposal.

The reasons are

• This system is used by many international hotels that will not encourage a service that is not proper.
• This system has a lot of staff working with it. So, in case of any issue, it will be immediately addressed by a setup and support specialist and the issue will be cleared in no time.
• This system is on the market for over 8 years. So, we can understand that it is very strong and proper in providing service.
• So, we can understand that this system is keeping on updating depending upon the user's needs.
• we can see the reviews of this system as it is being used by many hotels for more years.
• As it is on market for many years, they will have an idea and solution for most of the issues as they would have cleared the same issue in other hotels.
• They will have separate staff for providing training to the employees in the hotel, so there is no problem in training the employee in the hotel about the new system.
• As the system works in cloud infrastructure, all the details extracted from the old device can be stored in the cloud. so there is no data loss.
• Even though the cost of the system is very high, we can expect a perfect service from them which is worth the money spent.