© 2003, Educational Institute Chapter 11 System Selection Managing Technology in the Hospitality Industry Fourth Edition (469T or 469)

© 2003, Educational Institute 1 Competencies for System Selection 1.Describe ways in which hospitality managers can analyze current information needs. 2.Explain how managers can establish basic technology system requirements. 3.Explain the purpose of a Request for Proposal (RFP). 4.Describe how managers can evaluate proposals submitted by technology system vendors. 5.Describe how managers can get the most value out of technology product demonstrations. (continued)

© 2003, Educational Institute 2 Competencies for System Selection 6.Identify provisions and arrangements that hospitality managers generally negotiate with vendors of hospitality technology systems. 7.Identify factors involved in the installation of technology systems in hospitality operations. (continued)

© 2003, Educational Institute 3 Establishing System Requirements Determine what data to process  Data identification  Data collection  Data entry  Data coding Establish how data will be processed  Identify/apply formulas managers use  Survey departmental needs Identify formats for information output  Review vendor report formats  Survey managers’ preferences for print/ delivery

© 2003, Educational Institute 4 RFP Components Business overview/vendor responsibilities  Hardware configurations  Software descriptions  Maintenance/support services  Installation and training programs  Guarantees and warranties  Payment options  Future expandability of proposed system Bidding requirements Specific system application requirements

© 2003, Educational Institute 5 Vendor Site Survey Issues  Training programs  Exceptional cost considerations  System security features  Installation schedules  Backup system design  Communication links

© 2003, Educational Institute 6 Vendor Track Record How long has the vendor been in the hospitality technology business? Are hospitality systems the vendor’s principal business? How many installations does the vendor currently support? How satisfied are current users? Is the vendor’s business financially stable? Is the vendor expected to remain in business?

© 2003, Educational Institute 7 Scripting Product Demonstrations  Ensure demonstration covers relevant features.  Determine most important system capabilities.  Develop guest scenarios.  Arrange scenarios in a logical order.  Identify future events relevant to the system.  Limit demonstration time.

© 2003, Educational Institute 8 General Contract Provisions  Terms of delivery  Terms of payment  Survival past delivery  Saleable product warranty  Catastrophe remedies  Provisions for breach of contract

© 2003, Educational Institute 9 Hardware Contract Provisions  Specifications and performance criteria  Delivery, installation, and testing requirements  Costs and terms of payment  Reliability tolerances  Maintenance program options

© 2003, Educational Institute 10 Software Contract Provisions  Title not automatically transferred to buyer  Non-exclusive license  Copy of source code placed in escrow

© 2003, Educational Institute 11 Contractual Arrangements  Single-vendor contract  Multi-vendor contract  Other equipment manufacturer (OEM) contracts

© 2003, Educational Institute 12 Installation Factors  Site preparation  Design of printed materials  Initial entry of database elements  Acceptance testing  System conversion  Documentation