ATTENTION This presentation breaks down the purchasing process into 6 steps, which are then detailed in the subsequent slides. While responding from either.

ATTENTIONATTENTION

This presentation breaks down the This presentation breaks down the purchasing process into 6 steps, which purchasing process into 6 steps, which

are then detailed in the subsequent slides.are then detailed in the subsequent slides.

While responding from either the printed While responding from either the printed material or this will be OK, some may find material or this will be OK, some may find

this easier to understand.this easier to understand.

WHAT ARE THE 6 STEPS TO SELECT AND WHAT ARE THE 6 STEPS TO SELECT AND IMPLEMENT A COMPUTER SYSTEM?IMPLEMENT A COMPUTER SYSTEM?

STEP 1. ANALYZING THE CURRENT STEP 1. ANALYZING THE CURRENT INFORMATION NEEDS OF THE BUSINESSINFORMATION NEEDS OF THE BUSINESS

STEP 2. COLLECT RELEVANT COMPUTER STEP 2. COLLECT RELEVANT COMPUTER SYSTEMS SALES LITERATURESYSTEMS SALES LITERATURE

STEP 3. ESTABLISH COMPUTER SYSTEM STEP 3. ESTABLISH COMPUTER SYSTEM REQUIREMENTS REQUIREMENTS

STEP 4. REQUESTING PROPOSALS FROM STEP 4. REQUESTING PROPOSALS FROM VENDORSVENDORS

STEP 5. EVALUATION VENDOR STEP 5. EVALUATION VENDOR PROPOSALSPROPOSALS

STEP 6. CONTRACT PROVISIONS STEP 6. CONTRACT PROVISIONS

STEP 1. ANALYZING THE CURRENT STEP 1. ANALYZING THE CURRENT INFORMATION NEEDS OF THE BUSINESS (2 INFORMATION NEEDS OF THE BUSINESS (2

Parts to this step)Parts to this step)

Part 1. IDENTIFY INFORMATION NEEDS:Part 1. IDENTIFY INFORMATION NEEDS: Part 2. CREATE A PROPERTY PROFILEPart 2. CREATE A PROPERTY PROFILE

Part 1. IDENTIFY INFORMATION NEEDS: Part 1. IDENTIFY INFORMATION NEEDS: (3 components)(3 components)

1. Compiling samples of all reports presently 1. Compiling samples of all reports presently prepared for management. prepared for management. – Daily operations reportsDaily operations reports

– Weekly forecastsWeekly forecasts

– Cash flow analysisCash flow analysis

– Labor productivity analysisLabor productivity analysis

– Departmental analysisDepartmental analysis

– Room rate analysisRoom rate analysis

– Return on InvestmentReturn on Investment

– Exception reportingException reporting

– Guest history analysisGuest history analysis

– Future booking reportsFuture booking reports

Part 1. IDENTIFY INFORMATION NEEDS: Part 1. IDENTIFY INFORMATION NEEDS: (3 components)(3 components)

2. Analyze the purpose, content, and use of 2. Analyze the purpose, content, and use of these reports.(Flowchart)these reports.(Flowchart)

Part 1. IDENTIFY INFORMATION NEEDS: Part 1. IDENTIFY INFORMATION NEEDS: (3 components)(3 components)

3. Identify any gaps or improvements that can 3. Identify any gaps or improvements that can be made.be made.

Part 2. CREATE A PROPERTY PROFILEPart 2. CREATE A PROPERTY PROFILE

1. A property profile is a set of descriptive 1. A property profile is a set of descriptive statistics that allows the comparison of this statistics that allows the comparison of this operation to others to help identify similarities operation to others to help identify similarities and differences. and differences.

This information can be used by vendors to This information can be used by vendors to establish if existing programs have been used in establish if existing programs have been used in similar operations and how they have functioned.similar operations and how they have functioned.

This information should also include any This information should also include any equipment that is currently in use and if these equipment that is currently in use and if these functions are best integrated into a new system functions are best integrated into a new system or equally efficient as individual systems. or equally efficient as individual systems.

STEP 2. COLLECT RELEVANT COMPUTER STEP 2. COLLECT RELEVANT COMPUTER SYSTEMS SALES LITERATURE (2 parts)SYSTEMS SALES LITERATURE (2 parts)

Part 1. SOURCES OF INFORMATIONPart 1. SOURCES OF INFORMATION Trade AssociationsTrade Associations Trade shows have beenTrade shows have been Visit local vendorsVisit local vendors Request information from reputable vendor Request information from reputable vendor

across the country.across the country.

STEP 2. COLLECT RELEVANT COMPUTER STEP 2. COLLECT RELEVANT COMPUTER SYSTEMS SALES LITERATURE (2 parts)SYSTEMS SALES LITERATURE (2 parts)

Part 2. SPECIFIC INFORMATION TO Part 2. SPECIFIC INFORMATION TO REQUESTREQUEST– Hardware documentationHardware documentation

– Software documentationSoftware documentation

– List of current product usersList of current product users

– Sample report formatsSample report formats

– Sample training materialsSample training materials

– Annual financial statements of the vendorAnnual financial statements of the vendor

– Purchase/lease optionsPurchase/lease options

– User support and maintenance programs.User support and maintenance programs.

STEP 3. ESTABLISH COMPUTER SYSTEM STEP 3. ESTABLISH COMPUTER SYSTEM REQUIREMENTS (4 parts)REQUIREMENTS (4 parts)

Part 1. DETERMINE DATA TO PROCESSPart 1. DETERMINE DATA TO PROCESS– Data Identification:Data Identification:

– Data Collection:Data Collection:

– Data EntryData Entry

– Data CodingData Coding

STEP 3. ESTABLISH COMPUTER SYSTEM STEP 3. ESTABLISH COMPUTER SYSTEM REQUIREMENTS (4 parts)REQUIREMENTS (4 parts)

Part 2. DETERMINE HOW TO PROCESS DATAPart 2. DETERMINE HOW TO PROCESS DATA

The way the system is programmed to The way the system is programmed to manipulate the data should be in line with the manipulate the data should be in line with the desires and expectations of management. desires and expectations of management.

STEP 3. ESTABLISH COMPUTER SYSTEM STEP 3. ESTABLISH COMPUTER SYSTEM REQUIREMENTS (4 parts)REQUIREMENTS (4 parts)

Part 3. DETERMINE INFORMATION FORMATSPart 3. DETERMINE INFORMATION FORMATS– Reservation ConfirmationReservation Confirmation

– Registration cardsRegistration cards

– Guest FolioGuest Folio

– Billing statementsBilling statements

– Payroll checksPayroll checks

Part 4. Determining the hardware Part 4. Determining the hardware configurationconfiguration– Stand-AloneStand-Alone

– DistributedDistributed

– IntegratedIntegrated

STEP 4. REQUESTING PROPOSALS FROM STEP 4. REQUESTING PROPOSALS FROM VENDORSVENDORS

Section 1: Description of businessSection 1: Description of business Section 2: Bidding requirementsSection 2: Bidding requirements Section 3: Specific Computer Systems Section 3: Specific Computer Systems

Applications Requirements.Applications Requirements.

STEP 5. EVALUATION VENDOR PROPOSALSSTEP 5. EVALUATION VENDOR PROPOSALS

Multiple rating systemMultiple rating system Vendors business reputation Vendors business reputation Comparing Direct, Indirect, and hidden costs Comparing Direct, Indirect, and hidden costs

of each system.of each system.

STEP 6. CONTRACT PROVISIONS (3 PARTS)STEP 6. CONTRACT PROVISIONS (3 PARTS)

Part 1. GENERAL PROVISIONPart 1. GENERAL PROVISION– Terms of deliveryTerms of delivery

– Terms of paymentTerms of payment

– Survival past deliverySurvival past delivery

– Saleable product warrantySaleable product warranty

– Catastrophe remediesCatastrophe remedies

– Provisions for breach of contractProvisions for breach of contract

STEP 6. CONTRACT PROVISIONS (3 PARTS)STEP 6. CONTRACT PROVISIONS (3 PARTS)

Part 2. HARDWARE PROVISIONSPart 2. HARDWARE PROVISIONS– Specifications and performance criteriaSpecifications and performance criteria

– Delivery, installation, and testing requirementsDelivery, installation, and testing requirements

– Costs and terms of payment Reliability tolerancesCosts and terms of payment Reliability tolerances

– Maintenance programs optionsMaintenance programs options

STEP 6. CONTRACT PROVISIONS (3 PARTS)STEP 6. CONTRACT PROVISIONS (3 PARTS)

Part 3. SOFTWARE PROVISIONSPart 3. SOFTWARE PROVISIONS– Escrow of source code for performance failuresEscrow of source code for performance failures

– Specifications and performance criteriaSpecifications and performance criteria

– Delivery, installation, and testing requirementsDelivery, installation, and testing requirements

– Costs and terms of paymentCosts and terms of payment

– Reliability tolerancesReliability tolerances

– Support systemsSupport systems

– Upgrades and updatesUpgrades and updates

REQUEST FOR PROPOSAL REQUEST FOR PROPOSAL (RFP 3 sections)(RFP 3 sections)

RFP Section 1: Description of RFP Section 1: Description of businessbusiness

RFP Section 2: Bidding RFP Section 2: Bidding requirementsrequirements

RFP Section 3: Specific Computer RFP Section 3: Specific Computer Systems Applications Systems Applications Requirements.Requirements.

RFP Section 1: Description of business RFP Section 1: Description of business

Property profileProperty profile Objectives for the computer SystemObjectives for the computer System Operational requirements for the Computer Operational requirements for the Computer

systemsystem Hardware configurationHardware configuration Payment optionsPayment options Future expandability of the systemFuture expandability of the system Software descriptionsSoftware descriptions Vendors future responsibilitiesVendors future responsibilities

RFP Section 2: Bidding requirementsRFP Section 2: Bidding requirements

Standardized response formStandardized response form

RFP Section 3: Specific Computer Systems RFP Section 3: Specific Computer Systems Applications Requirements.Applications Requirements.

Standardized response form for information Standardized response form for information requested.requested.

WHAT ARE THE THREE TYPES OF WHAT ARE THE THREE TYPES OF CONTRACTUAL ARRANGEMENTS LISTED IN CONTRACTUAL ARRANGEMENTS LISTED IN

THE CHAPTER?THE CHAPTER?

SINGLE-VENDOR CONTRACTSINGLE-VENDOR CONTRACT TWO-VENDOR CONTRACTTWO-VENDOR CONTRACT TURNKEY PACKAGETURNKEY PACKAGE

WHAT ARE THE INSTALLATION FACTORSWHAT ARE THE INSTALLATION FACTORS

TRAININGTRAINING SITE PREPARATIONSITE PREPARATION DESIGN OF PRINTED MATERIALSDESIGN OF PRINTED MATERIALS INITIAL ENTRY OF DATABASE ELEMENTSINITIAL ENTRY OF DATABASE ELEMENTS ACCEPTANCE TESTINGACCEPTANCE TESTING SYSTEM CONVERSIONSYSTEM CONVERSION DOCUMENTATIONDOCUMENTATION CONTINGENCY PLANNINGCONTINGENCY PLANNING VENDOR SUPPORTVENDOR SUPPORT

WHAT IS A MANAGEMENT WHAT IS A MANAGEMENT INFORMATION SYSTEM?INFORMATION SYSTEM?

A management information system is designed A management information system is designed to provide managers with the necessary to provide managers with the necessary information to plan, organize, staff, direct, information to plan, organize, staff, direct, and control operations.and control operations.

Monitor progress of organizational goalsMonitor progress of organizational goals Measure performanceMeasure performance Identify trendsIdentify trends Evaluate alternativesEvaluate alternatives Support decision makingSupport decision making Assist in corrective actionAssist in corrective action

WHAT IS INFORMATION WHAT IS INFORMATION PROCESSING TECHNOLOGY?PROCESSING TECHNOLOGY?

Established the communication process in Established the communication process in which data are transferred from independent which data are transferred from independent computer systems and physically computer systems and physically transformed into the information requested. transformed into the information requested. – ReservationsReservations

– POSPOS

– CAS CAS

– Energy Management SystemEnergy Management System

– PayrollPayroll

– AccountingAccounting

WHO ARE THE MIS MANAGEMENT STAFF AND WHO ARE THE MIS MANAGEMENT STAFF AND WHAT FUNCTIONS DO THEY PERFORM?WHAT FUNCTIONS DO THEY PERFORM?

Property systems manager: Property systems manager: Department systems supervisor: Department systems supervisor:

WHAT IS A MULTI-WHAT IS A MULTI-PROCESSOR ENVIRONMENT?PROCESSOR ENVIRONMENT?

A multi-processor environment results from A multi-processor environment results from interfacing independent computer processing interfacing independent computer processing units (CPU), enabling them to share data, units (CPU), enabling them to share data, peripheral devices and operating systems. peripheral devices and operating systems.

SYNERGY: SYNERGY:

The whole is greater than the sum of its parts. The whole is greater than the sum of its parts.

The interfaced system has advantages over The interfaced system has advantages over the "stand alone" systems because:the "stand alone" systems because:

SYSTEMS TESTING:SYSTEMS TESTING:

Usually one application is brought on-line at a Usually one application is brought on-line at a time and tested. Each module should with time and tested. Each module should with other systems and stand alone as individual other systems and stand alone as individual modules.modules.

CONTRACT CONTRACT CONSIDERATIONS:CONSIDERATIONS:

What are the organizations rights to alter the What are the organizations rights to alter the code in the software packages purchased?code in the software packages purchased?

Can you add code to include a particular Can you add code to include a particular interface?interface?

Will altering the code change any existing Will altering the code change any existing maintenance agreements?maintenance agreements?

To what degree will each vendor involved To what degree will each vendor involved support the interface?support the interface?

WHAT IS DOWNTIME AND MULTI-TASKING WHAT IS DOWNTIME AND MULTI-TASKING AND HOW DOES IT IMPACT THE AND HOW DOES IT IMPACT THE

ORGANIZATION?ORGANIZATION?

DOWNTIME: DOWNTIME: MULTI-TASKING: MULTI-TASKING:

WHAT ARE THE THREE TYPE OS MIS WHAT ARE THE THREE TYPE OS MIS SECURITYSECURITY

ENERGY BACKUP SYSTEMS:ENERGY BACKUP SYSTEMS: INFORMATION BACKUP PROCEDURES:INFORMATION BACKUP PROCEDURES:

– REDUNDANT COPYREDUNDANT COPY

– DUPLICATE COPYDUPLICATE COPY

– HARD COPYHARD COPY

– FAULT-TOLERANT PROCESSINGFAULT-TOLERANT PROCESSING

INFORMATION PROTECTION:INFORMATION PROTECTION:

Keeping information out of the Keeping information out of the wrong hands is an important wrong hands is an important

consideration. FRAUDconsideration. FRAUD Functional division of duties. Functional division of duties. Recovery. Recovery. Avoid tampering. Avoid tampering. Unauthorized access prevention. Unauthorized access prevention. Detection and correction. Detection and correction.