Marriott International, Inc

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Marriott International, Inc

• By Courtney Dameron

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OneSystem

• The system was developed in-house, which made
  user involvement easier.
• It helped Marriott fix its issue with changing
  prices based on days of the week and month.
• It has a system that can give a price for any
  room based on day, current reservation levels,
  and history. (There is also a revenue manager who
  could override these recommendations if
  unfitting)
• OneSystem uses internet technology that enables
  the management to be able to fix a problem or
  even upgrade the system on one computer and it
  will change throughout the rest of the system.
• This systems can prepare a theoretical maximum
  revenue for each property, which can be compared
  to actual revenues.
• Marriott has increased its revenue from 83 to 91
  percent using this system.

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Advantages of having one revenue-management
system instead of two

• First and foremost, when dealing with any
  organization or personal system, having to deal
  with one computer compared to two is always
  easier in the long run.
• The OneSystem doesnt use pre-technology, it uses
  internet technology.
• By using one system the management team can avoid
  having to install all the different updates
  locally to each Marriott.

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Continued

• The OneSystem could now avoid the updates that
  were expensive and problematic because they had
  to be installed locally. With the new system,
  the updates only has to be done in one place and
  can change all the information simultaneously.
• As for entering prices, this new system can have
  prices entered in one computer and it will tell
  could tell you recommendations on hotel prices.
• The team of in-house and out-house personnel were
  also able to provide constant communication to
  the systems users with concern to problems or
  updates.

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Why Companies Outsource Parts of Their Systems

• Marriotts Objectives
• This business wanted more revenue coming in.
• In addition, they wanted to stop losing revenue
  that can never be made up
• Empty hotel rooms
• They wanted to be able to use the concept of
  revenue management
• Lowering the pricing of rooms at slower times of
  the week and raising them on busier days

• Nature of The System
• Since it is a new system, everyone who uses it
  must relearn how to use it.
• People will also have to know the systems full
  potential to get the most benefit from it.
• The system could do so much good for this
  business, but to take advantage of all it can
  offer, they needed an outside source of
  professionals

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Outsourcing Continued

• Marriotts In-House Expertise
• The personnel and management were used to the two
  systems, so, therefore, had to relearn this
  OneSystem.
• The management team had limited experience in
  developing a business case for the new system.
• Therefore, they knew they needed outside help to
• Learn the new system
• Maintain constant communication to all users
• Provide as much user involvement as possible.

• Uniqueness of the System to Marriott
• Marriott wanted a system built in-house, so it
  would be developed precisely for their needs
• These outside sources that joined with The
  Marriott, show how important this business thinks
  about user involvement
• By having outside help with this system, it can
  also help to avoid problems that management are
  faced with and have no answer.

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What Outsourcing Human Relations Contributed

• By outsourcing, the management of The Marriott
  were able to form a joint team with an outside
  source of help
• They formed a joint IT business user team
• The professionals understood the importance of
  user involvement
• The team developed the business case for the new
  system
• This team also managed the systems development
  equally throughout its processes
• They used prototypes to identify problem areas
  early before they become disastrous
• This outside source, including in-house help,
  have to continually train the Marriotts
  employees to keep everyone up to speed with the
  changes.

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Decision Between Building a System In-House or
Outsourcing one

• Building a system
• in-house
• There would have to be employees who know in
  depth how to work and manage these systems in
• Development of system
• Progress of system
• Crisis Situations that occur in the system
• The business would have to have people that were
  able to train, supervise, and help all the
  different users.

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Continued

• Using outsourcing to build a system
• This is an easy way to gain experience in areas
  like automated software installation, remote
  support, etc.
• This is also used to free up managers time so
  they can concentrate on other areas of the
  company.
• By outsourcing there is a risk reduction because
  vendors will provide a computer work station with
  certain software that is already connected to the
  network.