TUI Deutschland Uses Information Systems to Gain a Competitive Advantage To succ
ID: 3787751 • Letter: T
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TUI Deutschland Uses Information Systems to Gain a Competitive Advantage To succeed, a business needs an edge over its competitors: a competitive advantage. A big part of creating a competitive advantage is using information systems effectively, meaning a business can't simply buy computers and expect good results. As Oscar Berg puts it in his blog The Content Economy, "What lcreates] competitive advantage is how we use technologies, how we let them affect our practices and behaviors If technologies are carefully selected and applied, they can help to create competitive advantage This chapter discusses the five forces that define any competitive situation: rivalry among existing firms in an industry, the threats of new competitors and of substitute products services, and a firm's relationships with suppliers and customers. Firms use these forces to achieve a sustainable competitive advantage, which is one that others cannot copy immediately to eliminate the edge an innovator can have. TUI Deutschland is Germany's leading tour operator Targeted pricing is vital in its market, with the travel company that sets prices to accommodate customers preferences and habits gaining a competitive advantage. For a large tour operator like TUI, setting optimal prices is not easy. Each season, the employee responsible for a particular tour must set around 100,000 prices for each destination region. The factors that affect the final price of hotel rooms for example, include facilities, types of rooms, arrival dates, and expected demand. In the past, decision-making processes were not clear," explains Matthias Wunderlich, head of Business Intelligence at TUI Deutschland GmbH. "There were too many gaps in e system, since the information needed to make pricing decisions was hidden in different places. The resultExplanation / Answer
a) In the past they used business intelligence system.According to the wunderlich there were too many gaps in the system because of the information lies on many factors this results there was a laborious time consuming process to fix the optimal price for the tour packages.
b) Because the information system is an organised system for the collection and storage of different information in an organised manner. This causes the retrievel of information is very easy from numorous amount of data.
Mainly information systems are used by the companies because of its features its provide like processing, collecting, filtering data and also to distribute data.
And also if need any calculations based on the previous data it will burden to do manually in this scenarios this information systems plays gives very optimal results.In this case the company goal is to achieve optimal prices for the customers based on the previous information in this case the information system is very much usefull to achieve that goal with its computing capabilities and all other features which the information system is having.
C) The best information system with the desired capabilities and to accomplish the organisation goals which i suggest is CRM Information system. CRM is Customer Relationship Managment system which is mainly used in developing the interaction and relation between the company and the customers. It stores the information about its potential customers and their previous relation with the company. It is also best in analyzing data about customers history and gives the good results towards the customer satisfaction.
Because of this system it just searches all the history about the specific tour package which the customer asks and also it takes into consideration about different factors like distance, places, facilities, fuel costs etc which is fixed by the company and make calculations according the customer requirements and gives optimal results which can satisfy the customer and the slighter margin to the company as well. This is how it satisfies the company goals.
d) There is no requirement for the changes in the organisation as this CRM is just a software need to installed in the computer system. Just make sure the systems and its configuration is according to the CRM software requirements and this is enough in order to implement. But there is a need to train the employees for some days in order to work with the newly implemented system.
e) The threats of new compitetors and of substitue products/services. This is factor currently organisation is facing like the new compitetors coming with new systems and with the same budget they might offer more services. In order to gain the more business current company has to implement the CRM system and store all the previous data and also make a calculation on how can we give maximum services to the customer within the limited budget and compare those with the services providing by the compitetors to know where we have to make changes or else how we give more benifits like this.
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