Business Case Project on Travel Tour Agency

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  1. Executive Summary

The essence of the executive summary or strategic context is to highlight the need for the anticipated change and also clearly define the necessity for delving into the investment (Leatherman et al., 2003).. Blue Link is a relatively new company in the market, and thus, it has to focus on the particular types of IT services to particular clients. The company intends, first of all, to provide services for the local market and expand it to the regional market before making it international. For Blue Link to achieve its goal of being one of the best in the provision of travel tour services, it will establish a differentiated reputation, offer unparallel service to the tourists, passionately promote excursions, and then build an image and awareness via consistency and distinctiveness while offering the services. The strategy entails growing our business through the maturing of customers, distinguishing our services from those of the competitors, particularly via service and staffs conduct.

The project will put into consideration several drivers of change including customer satisfaction, price competitiveness, staff attitudes, and service provision so as to make sure there is an improvement.  There will also be a regular training implemented to make sure that our staffs fully meet the expectations of our customers. There will also be alliances with the hotels, guest houses, as well as travel agencies as strategies as a way of penetrating into the market. As we enter the lucrative market, our strengths are the ability to make sure that we offer a timely response to the market demands and to provide excursions that are custom designed to the customers.

1.1. Issue

The expanding customer base for our company provides an opportunity for expansion, but we are not fully prepared to take this bull by the horns and tackle the impending problems at hand. As we want to expand our business to the regional and also to the international level, it has become hard to administer our workforce. The company also does not have the appropriate technologies in place to support this wide spectrum of clients and the meet the market demands promptly.  The administrative activities that are in the requirement to support the new requirements are not in place since the staffs are not adequately prepared to carry up the task. Even the legacy systems that are in place are not enough to effectively manage these new administrative activities. That inadequacy can be seen from the high turnover of the employees, and high operational costs. For the company to penetrate into the market, effectively manage its activities, and have a better market say to that of the competitors, there is a need to move into a Web-based application for our tour travel agency.

1.2. Anticipated Outcome

The expansion of the Blue Link’s services globally to all the locations via the IT services will mean that the company will reach many customers around the world, and this can, in turn, bring in more revenue for the company. The company will not only maintain the loyalty of its present customers, but it will also acquire new ones through better services provision and improved staff behavior. The customers are the cornerstones of any business, and the new strategies that will have implementation will help in the expansion of the customer spectrum. For instance, the joining of hand with the guest houses, hotels, and other travel agencies will help in the acquisition of those customers. Better service provision through the market expansion will help the company to outdo its business rivals. Of course, that is one of the most important goals of any business

1.3. Recommendation

There was business analysis carried out for the purpose of understanding the options that are available for solving the problems at hand and growing the company. The business analysis led us to several options of what can be done, particularly in leveraging technology to make sure that the business processes are improved and enhanced to aid the company to grow its sales and customers. The approach described in this document will enable us to achieve our organizational objectives of continuous improvement of the business, costs reduction and technology capitalization. The new application being created will allow many clients to use different devices to get our services, not necessarily visiting our premises or making phone calls. The regular training of our customers will help our key personnel to have a wide and an n in-depth knowledge of the area that the company intends to take the travelers, which will navigate trough and penetrate the market.

1.4. Justification

The justification of the approaches concerns the explanation of the reasons as to why the approach was chosen from among the many approaches that were put into consideration (Robinson&Dechant, 1997). The implementation of the new application and the migration of some services to the same will lead to greater efficiency in light of the company’s resources and business processes. The new Web-based application is in line with the company’s objectives and strategy because it leverages technology to improve the way business is performed in the company. As much as the analysis of other alternatives took place, the IT services application was preferred for proposal in this case as it offers the best opportunity for realizing the benefits in an effective manner while on the other hand, it allows for greater efficiency improvement and cost reduction.

The initial estimates for this new Web-based application project include:

  • A 20% decrease in the employee turnover
  • A 30% reduction in overhead costs
  • A 50 percent increase in revenue for the first six months
  • A 30% increase in productivity gains
  • 20% increase in the time for resolving conflicts
  1. Business Case Analysis Team

The following individuals form part of the business case analysis team. These are the individuals that are vested with the responsibility of analyzing and creating the IT services travel tour project.

Role Responsibility Name
Project Sponsor Provides executive advice for the project Adam Smith
Technology Specialist Provides all the technology support required for the project Angel Trichina
Process Improvement She gives the project team advice regarding the process improvement techniques Ann Morata
Software Specialist Is concerned about the software requirements for the project Adrian Thompson
Project Manager He is responsible for overseeing all the project activities and the project development team. He also acts as a link between the project team and the executives. Henry Henderson
  1. Problem Definition

3.1. Problem Statement

Blue Link is a new travel agency company that entered into the business a few years ago and is struggling with beating the Giants in the same market that are already established in the market. The new project will transform the company into a customer-driven one as it will help to focus more on the customers who are the backbone of any business. Clients are increasing every day as our company is becoming moiré famous in the travel tour market, but unfortunately, there are systems that can effectively serve the increasing number of the customers.  In the past, the enterprise has relied on the phone calls and landline to offer services only to the local customers due to its inability to provide services for the global market. The company has been hiring more employees that can help to serve that increasing number of clients and to carry out other functions in the company. That is resulting in more costs that are unnecessary if there were suitable mechanisms in place.

The legacy systems are making it impossible for the clients to access the company services on any device. These systems also cannot allow for storage of huge customer data and process it in an intelligent way so as to make well-informed business decisions (Almonaies, Cordy & Dean, 2010). The organization’s staffs are also not well equipped with the required skills to handle the new trends in the market. The company has also been depending upon the other websites to advertise the business on its behalf.  There is also no way of storing the huge customer data through employing business intelligence that will help to maintain them and serve them better than we are doing. The new application will have the clients accessing the company website from their mobile phones. The users will only need to have Internet connections and then they can enjoy our services regardless of their geographical location around the globe.

3.2. Organizational Impact

The section embodies the discussion on how the proposed project will transform or impact the organizational processes, hardware, software, and tools (Blunt, 2003). It also embodies the explanation of the changes that will take place in light of the new job roles that will be brought about by the new changes to the business. There are many changes that the new IT services’ implementation will bring to the business. Below is a description of how this project will impact the various ways of the organization, tools, processes, hardware, and software.

Organization: The new IT services will mean that the company will penetrate into the travel tour business and become, known to many clients. There will also be an increase in revenue due to an increase of customers and cost reduction.

Tools: There will be the replacement of the legacy systems with the new improvements when the new IT services are fully implemented. The relevant staffs will thus need to be trained so as to understand how they can better utilize the new IT tools and how they can better offer the new IT services to clients.

Processes: The implementation of the new IT services will mean that the long manual processes will be reduced, and transactions will be greatly improved. That will simplify the work of the employees and administrators while on the other hand increasing the customer satisfaction.

Roles and Responsibilities: The new IT services’ implementation will mean that there will be new roles that will crop up. The work of the managers will be reduced while other roles will be removed as a way of avoiding duplication of responsibilities. The new services including the new Web-based application will be under the management of the IT staffs and the daily training proposed in this case will equip them with the required additional skills to make them more effective.

Hardware/Software: The Blue Link Company will need to purchase new hardware and software to cater for the new IT services being introduced into the company. One of the new hardware to be purchased will be the new servers and a data center to take care of the enormous amounts of customer data.

3.3. Technology Migration

The migration of the customer data from the legacy systems to the new data centers and Web-based platform will require the use of a phased approach until there is complete migration. The phase that will start is the acquisition of new hardware and software.  These will have installation after which the software development team will then develop the Web-based application. The new platform and the hardware installed will be thoroughly tested to make sure that there are no flaws that can make them not to function as per the expectations. The phase that will come next will involve the migration of data from the legacy systems to the new platform, but both platforms will operate in parallel for some time as the new one if being tested to make sure that it is reliable and that it can perform all the operations as desired. The third phase will have the legacy systems being eliminated so that the new system will be in use. The fourth phase will then have the users and the administrators being trained based on their roles so that they can understand how to serve the clients better and manage the new IT systems.

  1. Process Overview

4.1. Project Description

The new project being proposed will be the development of IT services so as to help the company to serve its clients better across the world.  There will be the application of business intelligence that will help in using the customer data and behaviors to inform the company decisions. The Web-based application will be developed to help the company to reach many customers around the world. There will be the new computer hardware installed will help in the storage of customer data and also father processing of the transactions to reach the customer goals. The staff will be trained on how to serve the customers better on a regular basis. We intend to build a good image as well as awareness via consistency and differentiation in our service provision. The company will also provide superior services in all the phases of the transaction such as timely follow-through. The project will be a full implementation of IT services aimed at improving overall performance and customer satisfaction.

4.2. Goals and Objectives

The project on implementing IT services in our tour travel agency supports several organizational goals and objectives. These goals and objectives have been listed in the table below and the ways this project will support enhance their achievement.

Business Goal/Objective Description
Improve the customer services Employee training will help to improve the services offered to customers
Timely reporting The Web-based application will allow for real-time reporting to the customers
Reduce operational costs expenses The new IT services will help reduce the employee overheads and the costly manual processes
Increased revenue The increase of revenue will result from many aspects including more customer turn-up, reduced number of staffs, and reduced costs among others.
Outdo rivals The company will outdo its business rivals through provision of distinctive and attractive services to clients

 

4.3. Project Performance

There are various resources, processes, and services that will be used to measure the performance of the project.

Resource/Process/Service

Performance Measure

Accuracy and timeliness

The use of IT tools will mean more accuracy and improved timeliness for delivery of services and completion of transactions

Staff Resources

The automation of data entry, customer, and other human resource management staffs will have a reduction of 8 employees.

Customer Services

Reaching a wide spectrum of customers around the world will mean more revenue. Also the increased customer loyalty and turnout will mean improved services.

Data Mining

Data mining will be improved through the usage of data mining software system.

4.4. Project Assumptions

The assumptions listed below apply to this project, but more will have inclusion as the project planning commences.

·         All the staffs will be trained in their respective areas of specialization

·         The company has enough resources for completing the project development

·         There are enough funds for the purchase of the required hardware and software

·         The project will be completed within three months as proposed for in the project plan

·         There will be collaboration of all the stakeholders without which the project will not be successful

·         The company has the staffs with enough skills to develop, install and configure the new systems and services

4.5. Major Project Milestones

The table below presents the major project milestones so far. The development of the project plan and the schedule may also result in the modification and adjustment of these milestones as necessary.

Milestone/Deliverables

Target Date

Preliminary Investigation

04/07/2016

Feasibility Study

05/07/2016

Project Plan

07/07/2016

Project Start

08/07/2016

Phase I Complete

31/07/2016

Phase II Complete

20/08/2016

Phase II Complete

10/09/2016

Testing

12/09/2016

Implementation

15/09/2016

Project Closure

17/09/2016

5. Strategic Alignment

All projects need to support the strategy of an organization so as to add value and maintain the support of executive and the organization. The IT services implementation in Blue Link supports many of the company’s strategic plans. That is tabulated below.

Plan

Goals/Objectives

Relationship to the Project

2019 Blue Link Strategic Plan for Market Share

Have a greater market share than the business rivals

This project will make the company stand at a high chance of meeting this strategic plan through services differentiation form those of the competitors

2017 Blue Link Strategic Plan for Service Delivery

Deliver services throughout the world

This project will help the company to deliver its services to all parts of the world

2018 Blue Link Strategic Plan for Human Resource Management

Effectively manage the human resource including customers, staffs and employees so as to retain them for business continuity

The application of IT services as proposed in this project will help to improve the management of human resources.

6. Cost Benefit Analysis

The Cost benefit analysis is the most important part of the business case because it entails the expenses and savings that will be yielded by the project that will aid in winning the approval of the project(Letavec, 2006). Below is the tabular representation of the costs and savings related to this project?

Action

Action

Type

Description

Anticipated savings in the first year

Outsource Web-based project development

Cost

Getting external developers to develop the Web-based tour travel application

$350,000.00

Purchase of New software and hardware

Cost

Expenses that will be used to procure new hardware and software products to support the new IT services

$120,000.00

Training staffs

Cots

Expenses involved in procuring training materials and training employees

$80,000.00

Reduce the number of employees

Savings

Savings that will accrue from reducing the number of employees

-$200,000.000

Reduce the number of managers

Savings

Savings due to the reduction of the number of managers in the company

-$300,000.00

Improve data management

Savings

Savings due to improved data management

-$200,000.00

Reduce the system maintenance to only 3 months

Savings

There will be less frequency of maintaining the systems, thereby saving cots amounting to $50,000.

-$50,000.00

Net First Year Savings

$200,000.00

7. Alternative Analysis

No Project

Reasons for deselecting the alternative

Continue with the manual work and the current systems

·         Unnecessary expenses going to the more staffs

·         Inaccurate reports

·         Poor service offerings to the customers

·         Long transactions processes

Outsourcing the entire project

Reasons for deselecting the alternative

Outsource all the project work to an external firm or developers

·         There is high expense

·         The external firm does not understand the company operations

·         The company will lose control of the management of project

·         The company has qualified developers

Modifyingexisting functions

Reasons for deselecting the alternative

The existing functionalities and technologies can be modified

·         The modification may end up consuming much expenses

·         Some new technologies may not be compatible with the legacy technologies

8. Approvals

The signatories below agree with the project because they are fully satisfied with the improvements the project will bring to the organization and the accompanying savings. The signing of this document is witness that the project is given the go-ahead to proceed with the subsequent phases of development and implementation.

Signatory Name

Title

Signature

Date

James, D.

CEO

Anthony, M.

HR Manager

Sharon, T.

IT Manager

References

Top of Form

Top of Form

Bottom of Form

Bottom of Form

Almonaies, A. A., Cordy, J. R., & Dean, T. R. (2010, March). Legacy system evolution towards service-oriented architecture. In International Workshop on SOA Migration and Evolution (pp. 53-62).

Blunt, R. (2003). Communities at the speed of business: Communities of practice as peer-to-peer learning networks. New-York: iUniverse.

Leatherman, S., Berwick, D., Iles, D., Lewin, L. S., Davidoff, F., Nolan, T., & Bisognano, M. (2003). The business case for quality: case studies and an analysis. Health affairs, 22(2), 17-30.

Letavec, C. J. (2006). The program management office: Establishing, managing and growing the value of a PMO. Ft. Lauderdale, Flor: J. Ross Pub.

Robinson, G., & Dechant, K. (1997). Building a business case for diversity. The Academy of Management Executive, 11(3), 21-31.

 



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