ATTENTION
This presentation breaks down the
purchasing process into 6 steps, which
are then detailed in the subsequent slides.
While responding from either the printed
material or this will be OK, some may find
this easier to understand.
WHAT ARE THE 6 STEPS TO SELECT AND
IMPLEMENT A COMPUTER SYSTEM?






STEP 1. ANALYZING THE CURRENT
INFORMATION NEEDS OF THE BUSINESS
STEP 2. COLLECT RELEVANT COMPUTER
SYSTEMS SALES LITERATURE
STEP 3. ESTABLISH COMPUTER SYSTEM
REQUIREMENTS
STEP 4. REQUESTING PROPOSALS FROM
VENDORS
STEP 5. EVALUATION VENDOR
PROPOSALS
STEP 6. CONTRACT PROVISIONS
STEP 1. ANALYZING THE CURRENT
INFORMATION NEEDS OF THE BUSINESS (2
Parts to this step)


Part 1. IDENTIFY INFORMATION NEEDS:
Part 2. CREATE A PROPERTY PROFILE
Part 1. IDENTIFY INFORMATION NEEDS:
(3 components)

1. Compiling samples of all reports presently
prepared for management.
–
–
–
–
–
–
–
–
–
–
Daily operations reports
Weekly forecasts
Cash flow analysis
Labor productivity analysis
Departmental analysis
Room rate analysis
Return on Investment
Exception reporting
Guest history analysis
Future booking reports
Part 1. IDENTIFY INFORMATION NEEDS:
(3 components)

2. Analyze the purpose, content, and use of
these reports.(Flowchart)
Part 1. IDENTIFY INFORMATION NEEDS:
(3 components)

3. Identify any gaps or improvements that can
be made.
Part 2. CREATE A PROPERTY PROFILE

1. A property profile is a set of descriptive
statistics that allows the comparison of this
operation to others to help identify
similarities and differences.
This information can be used by vendors to
establish if existing programs have been used
in similar operations and how they have
functioned.
 This information should also include any
equipment that is currently in use and if these
functions are best integrated into a new
system or equally efficient as individual
STEP 2. COLLECT RELEVANT COMPUTER
SYSTEMS SALES LITERATURE (2 parts)





Part 1. SOURCES OF INFORMATION
Trade Associations
Trade shows have been
Visit local vendors
Request information from reputable vendor
across the country.
STEP 2. COLLECT RELEVANT COMPUTER
SYSTEMS SALES LITERATURE (2 parts)

Part 2. SPECIFIC INFORMATION TO
REQUEST
–
–
–
–
–
–
–
–
Hardware documentation
Software documentation
List of current product users
Sample report formats
Sample training materials
Annual financial statements of the vendor
Purchase/lease options
User support and maintenance programs.
STEP 3. ESTABLISH COMPUTER SYSTEM
REQUIREMENTS (4 parts)

Part 1. DETERMINE DATA TO PROCESS
–
–
–
–
Data Identification:
Data Collection:
Data Entry
Data Coding
STEP 3. ESTABLISH COMPUTER SYSTEM
REQUIREMENTS (4 parts)

Part 2. DETERMINE HOW TO PROCESS DATA
The way the system is programmed to
manipulate the data should be in line with the
desires and expectations of management.
STEP 3. ESTABLISH COMPUTER SYSTEM
REQUIREMENTS (4 parts)

Part 3. DETERMINE INFORMATION FORMATS
–
–
–
–
–

Reservation Confirmation
Registration cards
Guest Folio
Billing statements
Payroll checks
Part 4. Determining the hardware
configuration
– Stand-Alone
– Distributed
– Integrated
STEP 4. REQUESTING PROPOSALS FROM
VENDORS



Section 1: Description of business
Section 2: Bidding requirements
Section 3: Specific Computer Systems
Applications Requirements.
STEP 5. EVALUATION VENDOR PROPOSALS



Multiple rating system
Vendors business reputation
Comparing Direct, Indirect, and hidden costs
of each system.
STEP 6. CONTRACT PROVISIONS (3 PARTS)

Part 1. GENERAL PROVISION
–
–
–
–
–
–
Terms of delivery
Terms of payment
Survival past delivery
Saleable product warranty
Catastrophe remedies
Provisions for breach of contract
STEP 6. CONTRACT PROVISIONS (3 PARTS)

Part 2. HARDWARE PROVISIONS
–
–
–
–
Specifications and performance criteria
Delivery, installation, and testing requirements
Costs and terms of payment Reliability tolerances
Maintenance programs options
STEP 6. CONTRACT PROVISIONS (3 PARTS)

Part 3. SOFTWARE PROVISIONS
–
–
–
–
–
–
–
Escrow of source code for performance failures
Specifications and performance criteria
Delivery, installation, and testing requirements
Costs and terms of payment
Reliability tolerances
Support systems
Upgrades and updates
REQUEST FOR PROPOSAL
(RFP 3 sections)
 RFP
Section 1: Description of
business
 RFP Section 2: Bidding
requirements
 RFP Section 3: Specific Computer
Systems Applications
Requirements.
RFP Section 1: Description of business








Property profile
Objectives for the computer System
Operational requirements for the Computer
system
Hardware configuration
Payment options
Future expandability of the system
Software descriptions
Vendors future responsibilities
RFP Section 2: Bidding requirements

Standardized response form
RFP Section 3: Specific Computer Systems
Applications Requirements.

Standardized response form for information
requested.
WHAT ARE THE THREE TYPES OF
CONTRACTUAL ARRANGEMENTS LISTED IN
THE CHAPTER?



SINGLE-VENDOR CONTRACT
TWO-VENDOR CONTRACT
TURNKEY PACKAGE
WHAT ARE THE INSTALLATION FACTORS









TRAINING
SITE PREPARATION
DESIGN OF PRINTED MATERIALS
INITIAL ENTRY OF DATABASE ELEMENTS
ACCEPTANCE TESTING
SYSTEM CONVERSION
DOCUMENTATION
CONTINGENCY PLANNING
VENDOR SUPPORT
WHAT IS A MANAGEMENT
INFORMATION SYSTEM?
A management information system is designed
to provide managers with the necessary
information to plan, organize, staff, direct,
and control operations.
 Monitor progress of organizational goals
 Measure performance
 Identify trends
 Evaluate alternatives
 Support decision making
 Assist in corrective action
WHAT IS INFORMATION
PROCESSING TECHNOLOGY?

Established the communication process in
which data are transferred from independent
computer systems and physically
transformed into the information requested.
–
–
–
–
–
–
Reservations
POS
CAS
Energy Management System
Payroll
Accounting
WHO ARE THE MIS MANAGEMENT STAFF AND
WHAT FUNCTIONS DO THEY PERFORM?


Property systems manager:
Department systems supervisor:
WHAT IS A MULTI-PROCESSOR
ENVIRONMENT?
A multi-processor environment results from
interfacing independent computer processing
units (CPU), enabling them to share data,
peripheral devices and operating systems.
SYNERGY:

The whole is greater than the sum of its parts.

The interfaced system has advantages over
the "stand alone" systems because:
SYSTEMS TESTING:

Usually one application is brought on-line at a
time and tested. Each module should with
other systems and stand alone as individual
modules.
CONTRACT CONSIDERATIONS:




What are the organizations rights to alter the
code in the software packages purchased?
Can you add code to include a particular
interface?
Will altering the code change any existing
maintenance agreements?
To what degree will each vendor involved
support the interface?
WHAT IS DOWNTIME AND MULTI-TASKING AND
HOW DOES IT IMPACT THE ORGANIZATION?


DOWNTIME:
MULTI-TASKING:
WHAT ARE THE THREE TYPE OS MIS
SECURITY


ENERGY BACKUP SYSTEMS:
INFORMATION BACKUP PROCEDURES:
–
–
–
–

REDUNDANT COPY
DUPLICATE COPY
HARD COPY
FAULT-TOLERANT PROCESSING
INFORMATION PROTECTION:
Keeping information out of the
wrong hands is an important
consideration. FRAUD





Functional division of duties.
Recovery.
Avoid tampering.
Unauthorized access prevention.
Detection and correction.