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Reservation System

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603 Information System in Business

Case 1: Saskatchewan Provincial Park Campsite Management and Reservation System

Sijian Chen

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Table of Contents

I. II. III.

Executive Summary Key Issues Analysis  Quali t at ive Anal ysi s  Quantit ati ve Anal ys i s

Pg. 2 P g. 3

P g. 5 P g. 6 P g. 5 Pg. 12 Pg. 15 Pg. 16 Pg. 17

IV. V. VI. VII. VIII.

Alternatives and recommendations Implementation Plan Contingency Plan Conclusion References

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I.

Executive Summary

Launched in 1997, Saskatchewan Park Services stepped into a digital transformation. The campsite reservation system changed from carbon-copy forms to a data based information system. The park firstly applied was Reservation Operating System (ROS). However, problems of park reservation system emerged constantly. Measures had been taken during 2007 to 2010 to improve the system. Nevertheless, some serious issues are still remained, and need to be resolved urgently, and find out a permanent solution to improve the overall operational process. In 2010, Saskatchewan Provincial Park renewed the reservation system, and applied Online Reservation Administration System (ORAS). However, the system crashed on January 1st, the same day it went live. Saskatchewan Provincial Park reservation system is currently facing the following problems: 1) the problem of the reservation software, and the problem of centralized process operation; 2) the problem of intensive-labor, and employees are lacking in trainings; 3) trust and loyalty issues from customers; 4) the bad effect on provincial economy for the failure reservation discourage customer. Five potential options for the improvement of the reservation system are following: 1) to build full cover connectivity within park between campgrounds; 2) to request ITO to build a custom system for Park Services; 3) to contract interprovincial government IT agreements; 4) a pure variable-cost option; 5) keep using ROS with doing some modification. Following are the analysis of existing problems and key issues of the park reservation service, and alternatives to resolve the problems.

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II.

Key Issues Identification and Analysis

During the past 13 years, problems of park reservation system kept appearing and arising all the time. For example, the software issues and labor issues have existed for all these years. Here, 4 key issues are listed. Analyzing these issues is essential for us to better understand the present situation and find out alternatives to resolve the problems of park reservation systems. Connectivity of Reservation System. The park service reservation system has been changing during these years, but the problems still existed all the time. Poor network connectivity is one of the big issues. The dis-connective situation disables remotely process. Data are not shared with each other through parks. Due to the decentralized system, reservations from each park are deal with separately. In this way, more labor are needed, and at the same time, information mistakes happened frequently as fail to get comprehensive analysis of customer data. Quality of Database. The reservation system is lacking of the ability of obtaining and extracting valid information from customers, due to the absence of centralized database system. Data of customers gathered by parks is scattered. Customer data are always duplicated and missed. And also, errors of information is arising. Therefore, it turns out to be difficult to analyze and deal with the data efficiently, which as a result affect customers’ reservation experience. Quality of Software. Park Service has been applying ROS for these years. Many features of the System are not able to cater to Park Service specific needs. Park Service has experienced many difficulties and problems of the system. In 2010, Park Service launched a new system named Online Reservation Administration System (ORAS). However, the system crashed on January 1st, the same day it went live. The software has been the problem bothering Park Service for all these years.

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Competition with Other Provincial Parks. Failures of the park reservation system discourage customers from doing reservation and go to parks for entertainment. Even though the tourist resource is very rich in Saskatchewan. And there are numerous number of parks. However, there are some other province, like Alberta and Manitoba, where the natural resource are also rich. Customers, especially for whom are from out of the province will choose to go to other places for camping after experience the failure reservation from Saskatchewan parks. Moreover, the behavior of customers may also be changed by it, because they are lack of trust and confidence towards the provincial park services. Labor. Trainings given to employees obviously are not enough. Especially when the system modified, and they did not get the training in time. This is one of the reason why mistakes appear frequently. And also their inability to gather and analyze data also decrease the efficiency of the work. Due to the decentralized management system, more labor are needed to gather the customer data and make reservations. Key Issues Importance and Urgency Matrix Importance --------------------Urgency


Low Competition with Other Provincial Parks.

High

Low

 

Labor

High

Connectivity of Reservation System  Quality of Data  Quality of Software

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III.

Analysis

Qualitative Analysis Table of SWOT Analysis S.W.O.T. Analysis


More than 34 provincial parks provide with variety campgrounds  The related facilities in campgrounds are complete.


Strengths
    

Government support. Contributed $1.5billion to the economy in 2008-09. Employees are local, and they know about customers Employees loyalty There are few competitors. The number of customer is very large

Decentralized infrastructure  Untrained employees  Payment issues Weaknesses
     

Intensive labor Bad quality of data The reservation software problem Inability to gather valid customer information Bad management structure

Opportunities

Great importance was attached to tourist industry, government provide more supports.  Growing number of people are using online services.  Provide more services for customers.  The marketing of the industry is growing.


Threats

There are many other Federal National Parks  Unpredictable weather  Off-season  The privacy and security issues

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Table of PSET Analysis: PEST Analysis
 

Parks are charged by the government. The government is willing to invest money to promote and improve the tourist industry

Politics



In 2007, the management of government structure changed due to the election.



PCI (Security Standards Council) created rules for the protection of credit and debit card data, which make difficult in online payment.



Global economic crisis burst out in 2007, and the negative influence is still continued until 2010, which discourage customers to do consumption.



Tourism is one of the pillar industries in Saskatchewan, which contribute &1.5 billion dollars in 2008-2009

Economic


Economy in Saskatchewan keeps growing smoothly, with growth rate of 2.9% in 2010.( http://www.fnr.ca/images/file/fnr_stoon_corp.pdf)



The population growth: Saskatchewan population growth rate was 1.53% in 2010, compared with nationwide population growth rate was 1.1%, it continues to be the fastest growing province in

Social

Canada.The population of the people from 14 to 64 was 66% of the whole Saskatchewan population.


Canadian people like outdoor activities. People are likely to go to natural resorts for recreation.

 

IT keep developing The popular use of online services The development of network caused some social privacy security issues.
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Technology



Quantitative Analysis Reviewing the 2009-2010 annual report of Saskatchewan, the revenue from parks was about $28 million through the year. The number of reservations happened in 2009 was 24,459 (cold and wet weather happened in 2010). The current reservation fee is varied from $10 to $12 for each person. Therefore, the range revenue of reservation fee is $244,590 to $293,508. The number of online reservation is growing dramatically, as technology development faster and faster. The portion of online reservation of the total reservation is growing fast. From 9.8% in 2007, increased to 40% 2010. The reasonable cost of the new reservation should be controlled within 2.4 million, which is about 10 year reservation revenue.

IV.

Alternatives & Recommendations

Step #1: Solve the Problem of Connectivity with Parks between Campgrounds In order to build a centralized system, the first step is to establish the appropriate level of connectivity between campgrounds and a central data base at Park Services. There are two ways for network connectivity. One is to establish a 100% connectivity with parks between campgrounds; and the other one is to build a Tier I and Tier II campground system. Following are the two alternatives: Alternatives Alternative #1: 100% Connectivity with Parks between Campgrounds The centralized system would be build up if 100% connectivity network is established. After the centralization realization, the work effectivity and accuracy would be improved quickly. And also due to the data can be gathered and analysis through central server, the demand for more labor would drop. For customers, the reservation experience would be more comfortable and friendly. Customers can have self-serve option, which enable them to customize their own preference by themselves, and at the
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same time make the reservation time more flexible. What’s more, the payment procedure would be easier and faster. However, this alternative will cost a lot. Advantages
     

Disadvantages


Centralized database, gather and sort data effectively Simplify the management Decrease the labor cost Easier payment Self-serve option for clients Flexible reservation time

High cost to fulfill 100% connectivity  The result is unknown  Maintenance cost unknown

Alternative #2: Tier I and Tier II Full connectivity will cause a high cost. Some provincial park system, like British Columbia, build a Tier I and Tier II system. Tier I allows clients serve themselves for the reservation system was connected with the campground system directly. For the campground within the Tier II level, the reservation system remains manual. This alternative make only part of parks to fulfill the connectivity, and some campgrounds still need manual process. The good side compared to the 100% connectivity alternative is that this methods is much cheaper, and less investment require at one time. However, it is still not an ideal way to optimize the system since some campgrounds still have to do the reservation process manually. In fact, not every park is popular and will get many reservations. In this case, the connectivity for campgrounds there is not urgent necessary. Tier I system can be applied in these popular campgrounds, and Tier II is for those with less reservation demands. Advantages
  

Disadvantages


Fulfill partial network connectivity Lower cost compare to alternative #1 Campgrounds within Tier I will be improved
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Some campground remain disconnected

through the same way as 100% connectivity method.

Step # 2: Solve the Problem of Park Service Software After the network connectivity is established, the software issues need to be deal with urgently. The current system Online Reservation Administration System (ORAS) came up with many flows. Following are options of improve the level of Park Service Reservation system. Alternative #1: Interprovincial Government IT Agreement The alternative is to involve an interprovincial government IT agreement with other province, like Alberta and Manitoba. Sierra System, a broad consulting company, currently is taking in charge of the province’s new system of Alberta. At the same time, Manitoba contracted the development of park reservation system to Protegra Solutions, who is also a general IT consultant. As the interprovincial agreement is reached, the reservation software of Alberta or Manitoba can be shared with Saskatchewan. The system is tailor-made, which enable customers to serve themselves, and gives them details and descriptions about campsites. The overall Saskatchewan Park reservation system can be improved with little cost paid on buying the intellectual property. However, the cost of tailoring the system for Saskatchewan will be about $1 million, and some extra cost will be paid for ongoing enhancement and upgrade. Advantages
  

Disadvantages


Low cost of buying the intellectual property of the software Self-serve option for clients Customers can get more information about campsites. Decrease the labor cost
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The tailor fee is high---about $1 million  Ongoing enhancement and upgrade costs will be charged  The development of the system can only relied on other province.





The system was tested by other province. There are expected no flaws in the system.

Alternative # 2: Service Provider--- A Pure Variable-Cost Option This option is to outsource the service system to a service provider with a five-to 10-year contract, and charges $10 fee per reservation. There is no fixed cost such as the cost of the hardware, software and telecommunications. Therefore, the total cost is only related to the length of the contract with the service provider, and the number of reservations will actual take place. Because it is outsourcing system, there will be no more maintenance and upgrade fee. And also, the park can save the labor cost, for no need of IT stuffs, and also the need of service employees. There are 24,459 reservations occurred in 2009 (the data of 2010 is not used for 雪灾 happed then). Assume that the number of reservation will not change in 10 years. The 5-year contract will cost $1,222,950, and the 10-year contract will cost 2,445,900. Advantages
   

Disadvantages


No fixed cost No ongoing enhancement and upgrade fees Decrease the demand of labor No technical issues bother

Cost is very high

Alternative # 3: Off-The-Shelf Package ROS has been applied for years since the park set up the reservation system. However, the Park service came up with many problems these years with the off-the-shelf package. Even though the system can be modified, the possibility of ongoing operation is cannot be foreseen. Many features of the off-the-shelf package are not fit for the needs of the park reservation system. The cost of the
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modification will be lower compare to other options, and also this option will spend less time to start. However, the ongoing enhancement and maintenance issue remain unpredictable.

Advantages
 

Disadvantages


Set-up cost low Little development time

Unpredictable complicated issues  Annual licensing fees


Lock into multi-year agreements  Need to pay a fee for each reservation made

Step #1 Matrix Scale Weight 100% Connectivity Tier I and Tier II

Connectivity Quality of Data Cut down Labor Cost Total

1not effective-3 effective 1not effective-3 effective 1not effective-3 effective 1 high—3 low

0.3 0.25 0.1 0.35 1

3 3 3 1 2.3

2 2 2 3 2.35

Although cost is not a key issue, it is a significant factor to impact the decision. Decision #2 Matrix Interprovincial Weight Government IT Agreement 0.3 0.3 0.1 0.3 1 3 3 2 2 2.6 Service Provider Off-theshelf Software Package 1 1 2 2 1.4

Scale

Quality of Data Quality of Software Cut Down Labor Cost Total

1 no effective—3 effective 1 no effective—3 effective 1 no effective—3 effective 1 high—3 low

3 2 3 1 2.1

Although cost is not a key issue, it is a significant factor to impact the decision.
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V.

Implementation Plan Cost is added into the decision matrix. Even it is not a key issue for Park Service, it is a

significant factor to make the decision, since the cost of each alternative very greatly. After computing, alternative of Tier I and Tier II is tuned out to be the most effective way to resolve the problem of connectivity. In a depth-sight, Tier I and Tier II decision is more economic and practical. However, for long-term consideration, 100% connectivity is a terminal goal. For the second step, the interprovincial government IT agreement is proved to be the best way to resolve the problem of software. The score of the alternative is 2.6, much higher than the other two alternatives. Phase I: Establish Tier I and Tier II network The first phase is to establish Tier I and Tier II network, so that to improve the connectivity through campgrounds, which is the prerequisite to go forward to enhance the system. The detailed procedures of the first phase are below: WHAT Conduct research on Tier I and Tier system 1. Consult British Columbia and Manitoba about the system. 2. Analysis the features of the system. Get the knowledge of operation 3. Estimate the cost. WHO Park Service IT staffs WHEN Sep 1st 2010---Jun 10th 2010

Hire people or IT company to build Tier I and Curhane and IT staffs Tier II system. There are three ways to select the vendor. 1. Park Service can directly hire the vendor who took in charge of the project in British Columbia or Manitoba. 2. Another option is to select the vendor through bid.
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Sep 11th 2010--Sep 30th 2010

3. The last option is to filter the vendor according to its reputation and previous performance. Start to establish Tier I and Tier II system New hired Tier I and Tier II Oct 1st 2010---Oct 1. Give an overall plan for the project. Point vendor 30th 2010 out which campgrounds in Tier I level, and which campgrounds in Tier II level. 2. Tailor the program according to the features of each campground. 3. Set up the system. Give trainings towards employees .Train personnel how to work with new system Test the system 1. Adjust and modify the system 2. Fix any exited bugs Phase II: Interprovincial Government IT Agreement After establishing connectivity system through parks, Phase II will be implemented. Actually, some steps can be conducted during the conduction of the phase I. Following are the timeline of the implementation of phase II. WHAT WHO WHEN Sep 20th 2010 IT staff IT staff Oct 31st 2010--Nov 6th 2010 Nov 7th 2010--Nov 20th 2010

Sign an interprovincial Saskatchewan’s ministry, Government IT agreement with Alberta or Manitoba. Pay for Curhane the intellectual property. Tailor Saskatchewan park reservation system and pay for the mapping and tailoring. Set up the system through parks Hire and Train employees to use the system. Test the new system 1. Adjust and modify the system Saskatchewan’s ministry, Software developers Software developers, IT staff IT staffs, Curhane Software developer, IT staff

Sep 15th 2010---Oct 30th 2010

Oct 31st 2010---Nov 30th 2010 Dec 1st 2010---Dec 5th 2010 Dec 6th 2010---Dec 30th 2010

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2. Fix any exited bugs Launch the new reservation system IT staff, Curhane Jan 1st 2011

Phase III: Final Performance Review and Assessment Six month later, phase III need to be started. At this phase the overall data required to be collected. Analyze the data, and assess the performance of the system, which include compare the current performance with the expected performance, and also take back look at performance of previous years. As done with the analysis, Park Service should formulate a plan to improve the system. Following are the steps of conduct phase III. WHAT Gather and analyze reservation through the period Make comparison with the expected, and as same as previous performance. Formulate and conduct a plan to make an improvement on the system. WHO Curhane, IT staffs Curhane, IT staffs WHEN Jun 1st 2011—Jun 7th 2011 Jun 8th 2011---Jun 12th 2011

Curhane, IT staffs

Jun 13th 2011--- Jul 10th 2011

Implementation timeline for renew the reservation system Short-Mid Term Implementation Phase Sep 1st 2010—Nov 20th 2010 Nov 21st 2010--Jan 1st 2011 Long Term Implementation Jun 1st 2011—Jul 10th 2011

1 2 3

Establish Tier I and Tier II network Interprovincial Government IT Agreement Final Performance Review and Assessment

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Implementation Plan: Anticipated Costs At the first phase, Tier I and Tier II alternative is chosen to implement. The work of network connectivity is costly. However, compare to the 100% connectivity, this way is much cheaper, and can save a considerable amount of money for the next phase. The second phase, conduct the interprovincial Government IT Agreement with Alberta or Manitoba. Firstly, Park Service need to buy the intellectual property with a cheap price. And then $1 million will be paid for data transfers, mapping and tailoring for Saskatchewan park reservation system. In order to support the process of the system, about six IT staff will be needed. The salary for each IT staff will be $50,000 per year. Therefore, the annual salary cost of six staff will be $300,000. For long term, a share of ongoing enhancement and upgrade cost will be added for annual maintenance fee.

VI.

Contingency Plan There are two situations that the interprovincial government IT agreement fail to implement. One

situation is that the system is not able to done within 4 months, and need more time to build up. Another situation is that the system is not work for Saskatchewan’s park, even the possibility is very slight, for it works well in Alberta and Manitoba, and it is supposed to work well also for Saskatchewan. When one of the situation happen, a backup plan need to be came out to resolve problems of current reservation system. The most fastest and economic way is to keep using the ROS, and do some modifications and enhancements based on the current system. Park Service ran the ORAS in 2010, and the features were supposed to work well on the reservation system. However, it crashed the day the reservation starts, for the overloaded number of reservations. IT staff and the software providers firstly need to upgrade the system to be able to take more reservations at a time. Then staff need to fix other
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bugs and flaws of the system.

VII.

Conclusion Currently, it is urgent for Saskatchewan Park Service to improve the reservation system. For

ongoing consideration, the best way to permanently resolve the problem turned out to be the combined decisions of the Tier I and Tier II network system and the interprovincial government IT agreement. The reservation systems will be fixed and improved from both connectivity and software aspects by following the implement plan outlined in the report.

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References:

1. Government of Saskatchewan. (2010). 2009-2010 Annual Report, Ministry of Tourism, Parks, Culture and Sport. Retrieved Oct 1st 2014 from Saskatchewan government. http://www.tpcs.gov.sk.ca/tpcs-annual-report-2009-2010, Oct. 15th, 2013.

2. Government of Saskatchewan (2014). Park fees. Retrieved Oct 1st 2014 from Saskatchewan government. http://www.saskparks.net/fees

3. Jonathan Chagnon and Anne Milan (2011 Jan 1st). Population Growth: Canada, Provinces and Territories. Retrieved Oct 2nd 2014 from Statistics Canada. http://www.statcan.gc.ca/pub/91-209x/2011001/article/11508-eng.htm

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