Reference no: EM131816940

Collaborate with students on the following exercise. In particular, consider using Google Docs, Windows Live SkyDrive, Microsoft SharePoint, or some other collaboration tool. Wilma Baker, Jerry Barker, and Chris Bickel met in June 2010 at a convention of resort owners and tourism operators. They sat next to each other by chance while waiting for a presentation; after introducing themselves and laughing at the odd sound of their three names, they were surprised to learn that they managed similar businesses.

Wilma Baker lives in Santa Fe, New Mexico, and specializes in renting homes and apartments to visitors to Santa Fe. Jerry Barker lives in Whistler Village, British Columbia, and specializes in renting condos to skiers and other visitors to the Whistler/Blackcomb Resort. Chris Bickel lives in Chatham, Massachusetts, and specializes in renting homes and condos to vacationers to Cape Cod. The three agreed to have lunch after the presentation. During lunch, they shared frustrations about the difficulty of obtaining new customers, especially in the current economic downturn.

Barker was especially concerned about finding customers to fill the facilities that had been constructed to host the Olympics in the prior year. As the conversation developed, they began to wonder if there was some way to combine forces (i.e., they were seeking a competitive advantage from an alliance). So, they decided to skip one of the next day's presentations and meet to discuss ways to form an alliance. Ideas they wanted to discuss further were sharing customer data, developing a joint reservation service, and exchanging property listings.

As they talked, it became clear they had no interest in merging their businesses; each wanted to stay independent. They also discovered that each was very concerned, even paranoid, about protecting their existing customer base from poaching. Still, the conflict was not as bad as it first seemed. Barker's business was primarily the ski trade, and winter was his busiest season; Bickel's business was mostly Cape Cod vacations, and she was busiest during the summer.

Baker's high season was the summer and fall. So, it seemed there was enough difference in their high seasons that they would not necessarily cannibalize their businesses by selling the others' offerings to their own customers. The question then became how to proceed. Given their desire to protect their own customers, they did not want to develop a common customer database. The best idea seemed to be to share data about properties. That way they could keep control of their customers but still have an opportunity to sell time at the others' properties. They discussed several alternatives. Each could develop her or his own property database, and the three could then share those databases over the Internet. Or, they could develop a centralized property database that they would all use.

Or, they could find some other way to share property listings. Because we do not know Baker, Barker, and Bickel's detailed requirements, you cannot develop a plan for a specific system. In general, however, they first need to decide how elaborate an information system they want to construct. Consider the following two alternatives:

a. They could build a simple system centered on email. With it, each company sends property descriptions to the others via email. Each independent company then forwards these descriptions to its own customers, also using email. When a customer makes a reservation for a property, that request is then forwarded back to the property manager via email.

b. They could construct a more complex system using a Web-based, shared database that contains data on all their properties and reservations. Because reservations tracking is a common business task, it is likely that they can license an existing application with this capability.

1. Create a process diagram for alternative a, using Figure as a guide. Each company will need to have a role for determining its available properties and sending emails to the other companies that describe them. They will also need to have a role for receiving emails and a role for renting properties to customers.

Assume the companies have from three to five agents who can fulfill these roles. Create a role for the email system if you think it is appropriate. Specify roles, activities, repositories, and data flows.

2. Create a process diagram for alternative b, using Figure as a guide. Each company will need to have a role for determining its available properties and adding them to the reservation database.

They will also need a role for renting properties that accesses the shared database. Assume the companies have from three to five agents who can fulfill these roles. Create a role for the property database application.

Specify roles, activities, repositories, and data flows. In your answers to 1 and 2, use Microsoft Visio and BPMN templates to construct your diagram. If you don't have those templates, use the crossfunctional and basic flowchart templates. If you do not have access to Visio, use PowerPoint instead.

3. Compare and contrast your answers in questions 1 and 2. Which is likely to be more effective in generating rental income? Which is likely to be more expensive to develop? Which is likely to be more expensive to operate?

4. If you were a consultant to Baker, Barker, and Bickel, which alternative would you recommend? Justify your recommendation.