Ritz Carlton Case Study

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The Ritz-Carlton – Using IS to Better Serve the Customer
Customer| Business and Leisure Travellers demanding individualized attention and high quality hotel experiences. Mainly focuses on corporate travel and meeting planners. | SAME| Company| 5* Luxury Hotels and Resorts Mostly franchisor and management contract providers with some ownership.Customer centric culture and use of knowledge base marketing. Human capital and systems support to provide personalized service based on customer knowledge and consistency in all properties. Empowerment| SAME| Competition| Four Season, Starwood, Fairmont, Hyatt, Intercontinental and other Luxury category hotels/ resorts Competitive advantage: leader in product and service excellence, service is difficult to copy or reproduce by competitors| SAME| Collaborators| Employees as the most important collaborator. Extremely well trained professionals.Efficient communication between marketing and sales partners Covia/Galileo (CRM), Encore (PMS)| SAME plus MIS vendors| Context| Weak fundamentals in hotel markets such as struggling European economy and over capacity in the US market, high customer perception of luxury brands.| Improving economics for full-service hotels| 4Ps|

Price| High end, Luxury| SAME|
Product| Luxury Hotel with individualized attention. Best locations, distinctive facilities. | Leader in quality of both physical product and service.SAME + Event wedding planning| Pistribution| Repeat customers, Corporate| SAME plus new customers (reduce turnaways)| Promotion| Reputation, Print and online distribution| To increase marketing|

Will you consider COVIA and Encore CRM systems? Which will be the differences with a product-oriented CRM?

COVIA is utilized more as just a global data storage center because of its large capacity for data storage, originally a reservation system for airline industry. ENCORE is the original PMS systems used in reservations for each hotel, and the system to be more close to a CRM. The systems interphase with each other, but with limitations: upgrades, support, and simultaneous update. Customer duplication is a problem and no categorizing or defect reporting is available from encore. We consider COVIA and Encore to be more systems of global distribution systems and local property management systems that have been adapted to record customer profiles, rather than pure customer relationship management systems. They do not actually mine such profiles for useful data or relations that can aid the guest relations interface but merely display information that has been historically recorded. A true product-oriented CRM system will organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals of CRM system are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. An important factor for the success of a product/process oriented CRM is a good knowledge of the process, the system flexibility to scale or changes, and the continuous training of the staff to use effectively. How will you align the database systems with your people, the operations and the customers? The case shows that the available technology was adapted as best as the company could for CRM activities and staff operations. Ideally, it should have been the other way around. First, choose a strategy. Then design a service delivery process and understand the skills the people need to have to deliver. Finally invest in the best technology that fits the purpose. Following this, the hotel should balance the different dimensions: CUSTOMER– PROCESS & PEOPLE –TECHNOLOGY CUSTOMER NEEDS: make sure that it is not only the transactional data (historic spending, complaints, segment) or...
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