QUESTION :

1. Create an Event diagrams (for processes P5-P6).

2. Create The Business process catalog (for processes P5-P6)

3. Create The Detailed File on each new Business Process (for processes P5-P6).

4. Create The Solution Concept Diagram (for Processes P5-P6).

"Case Study Consider the luxurious spa-resort LG-RUS (acronym for "Life-is-Good-Are Us. LG-RUS operated as a family business for more than 30 years and has a limited but dedicated clientele. The spa is about to be acquired by the Continental.Co chain of resorts. LG-RUS owners are reluctant on the move as it relinquishes control of their corporation but have been advised that this is important to be able for the LG-RUS to be kept operational. The owners and VPs of LG-RUS are not sure how to proceed and are skeptical of the project. The LG-RUS managers and staff are enthusiastic of the idea been acquired by Continental.co. LG-RUS is structured as follows: LG-RUS Board (4 Board members, plus LG-RUS CEO). The VPs provide recommendations to the LG-RUS board CEO (the owner of LG-RUS) Operations Department (VP Operations, Operations manager, staff of 20) Marketing Department (VP Marketing, Marketing manager, staff of 5) Sales Department (VP Sales, Sales manager, staff of 5) Accounting Department (VP Accounting, Accounting manager, staff of 5) - IT Department (IT Manager, staff of 2) The Continentals departments and key participants involved in this acquisition project include: The Continental's Board (10 Borad members plus the C-level executives) The Continental's CEO - The Continental's CIO (responsible for IT) The Continental's CFO (responsible for finance) - The Continental's COO (responsible for operations, sales and marketing) The Continental's VP Sales, VP IT and, VP Marketing The Dept., its Sales Director, and Sales North America Regional Manager The Continental's IT Dept. and its IT Director along with IT Operations Manage and a team of three developers, one architect, and one security expert The Continental's Marketing Dept. and its Marketing Director The Continental's Accounting Dept. and its Accounting Director along with two Accountants and one Tax expert 1. Target Architecture and Processes Continental.Co operates in 100 different countries offering hospitality services. Continental.Co is the first time it enters the spa-resort business. Continental.Co upon acquiring LG-RUS would like to expand the business of LG-RUS and integrate LG-RUS IT systems with theirs. Continental.Co hires the consulting company CANDO.Co to advise on the IT transformations required so that LG-RUS can expand its business, and the acquisition to be meaningful. These are summarised in the general categories of a) increasing visibility and revenue; b) automating and optimizing accounting processes; c) increasing customer satisfaction and retention; d) reducing operating expenses and; d) ensuring regulatory compliance with respect to privacy and security. CANDO.Co provides the following recommendations: a) For the acquisition to be profitable for Continental.Co LG-RUS should be able to generate a revenue of at least 10M USD per year b) The operating expenses of LG-RUS have to be reduced overall by 20% c) The LG-RUS spa-resort should increase its clientele base by 80% the first year and follow an increase of 20% for the next six years d) The LG-RUS should be able to perform at least 90% of its bookings electronically over Web portals e) The LG-RUS has to increase the bookings conducted through third party travel agencies by 300% the first year and make sure that on average 10% of its bookings come from third-party external agencies f) LG-RUS and its services have to be visible and accessible to a wide range of potential clients and from different portals. It is recommended that the following processes are implemented: A. Increase Visibility and Increase Revenue Goals P1. On-line Bookings and Promotions 1. The web site of LG-RUS should be updated so that it allows for direct bookings. The clients should be able to register on the LG-RUS or Continental's system and obtain a unique client ID number. The clients should be able to reserve, cancel, modify, and find the status of their reservation by accessing LG-RUS's or Continental's on-line systems, by providing their client ID 2. The web site of LG-RUS and its booking system should also be connected with the booking system of the to-be parent company Continental.Co, so that bookings can also proceed through the Continental's main site 3. The booking system of LG-RUS should be connected with popular travel consolidation sites such as Trip-Ago and InPedia 4. The booking system of LG-RUS should connected to third-party external travel agencies 5. Special discounts should be advertised by the LG-RUS site as well as all connected to it sites (i.e. travel consolidation sites, travel agencies). B. Automate and Optimize Accounting Processes P2. Payments and Accounting 1. The LG-RUS accounting processes and IT system have to be upgraded. LG-RUS has to acquire a new accounting system that allows for charges (spa-services, drinks, dinners, other hospitality services) to be reflected at real time on the system's data base g) The LG-RUS payment system has to upgrade its payment system so that in addition to credit card payments, debit payments can be made h) The LG-RUS has to acquire a new back-end accounting system which has to be integrated and synchronised with Continental's accounting system. Continental's accounting system will be finally responsible for the final reporting and generation of accounting reports C. Increase Customer Satisfaction and Retention P3. In-house Customer Experience 1. The LG-RUS has to acquire a new Business Intelligence module so that it can perform analytics in order to provide customised services to clients and ensure client retention. The CANDO.CO recommends that the retention rate has to reach a level of 60% (i.e. 6 our of 10 LG-RUS customers are expected to re-book at the spa within a two years period) 2. Automate the in-spa ordering of services by providing i-pads to the guests throughout the duration of their stay so that they can connect to an on-line ordering system and issue their orders (e.g. order snacks, refreshments etc.) or book services (e.g. tennis courts, gym sessions etc.) on their own. In this respect form the perspective of a vacationer, the "Stay at LG-RUS" concept resort is a collection on "Hospitality services" offered to them. D. Reduce Operating Expenses P4. Energy Use 1. LG-RUS premises have to be monitored by loT sensors so that energy consumption is controlled. The sensors regarding monitoring heating, cooling, and lights are connected to a central IT system that needs be installed in order to control the optimal operation of heating, cooling, and illumination (e.g. floodlights are turned off when tennis courts are not booked, cooling/heating is reduced when room is not booked etc.). The central IT system maintains a database of data so analytics and energy prediction reports can be generated P5. Procurement 1. LG-RUS has to implement a business analytics system so that optimal procurement can be achieved (e.g. based on anticipated number of guests, the procurement of food, supplies, number of custodian staff can be optimally scheduled). E. Ensure Regulatory Compliance P6. Privacy and Security 1. LG-RUS has to make sure that any client information is kept secure and private especially now that its systems and databases are integrated with Continental's. 2. LG-RUS will ensure all IT communications (in-house communication, mobile devices with guests) are encrypted and secure, and all IT communications with third parties (banks, vendors, Continental's IT systems) are also encrypted and secure. "Case Study Consider the luxurious spa-resort LG-RUS (acronym for "Life-is-Good-Are Us. LG-RUS operated as a family business for more than 30 years and has a limited but dedicated clientele. The spa is about to be acquired by the Continental.Co chain of resorts. LG-RUS owners are reluctant on the move as it relinquishes control of their corporation but have been advised that this is important to be able for the LG-RUS to be kept operational. The owners and VPs of LG-RUS are not sure how to proceed and are skeptical of the project. The LG-RUS managers and staff are enthusiastic of the idea been acquired by Continental.co. LG-RUS is structured as follows: LG-RUS Board (4 Board members, plus LG-RUS CEO). The VPs provide recommendations to the LG-RUS board CEO (the owner of LG-RUS) Operations Department (VP Operations, Operations manager, staff of 20) Marketing Department (VP Marketing, Marketing manager, staff of 5) Sales Department (VP Sales, Sales manager, staff of 5) Accounting Department (VP Accounting, Accounting manager, staff of 5) - IT Department (IT Manager, staff of 2) The Continentals departments and key participants involved in this acquisition project include: The Continental's Board (10 Borad members plus the C-level executives) The Continental's CEO - The Continental's CIO (responsible for IT) The Continental's CFO (responsible for finance) - The Continental's COO (responsible for operations, sales and marketing) The Continental's VP Sales, VP IT and, VP Marketing The Dept., its Sales Director, and Sales North America Regional Manager The Continental's IT Dept. and its IT Director along with IT Operations Manage and a team of three developers, one architect, and one security expert The Continental's Marketing Dept. and its Marketing Director The Continental's Accounting Dept. and its Accounting Director along with two Accountants and one Tax expert 1. Target Architecture and Processes Continental.Co operates in 100 different countries offering hospitality services. Continental.Co is the first time it enters the spa-resort business. Continental.Co upon acquiring LG-RUS would like to expand the business of LG-RUS and integrate LG-RUS IT systems with theirs. Continental.Co hires the consulting company CANDO.Co to advise on the IT transformations required so that LG-RUS can expand its business, and the acquisition to be meaningful. These are summarised in the general categories of a) increasing visibility and revenue; b) automating and optimizing accounting processes; c) increasing customer satisfaction and retention; d) reducing operating expenses and; d) ensuring regulatory compliance with respect to privacy and security. CANDO.Co provides the following recommendations: a) For the acquisition to be profitable for Continental.Co LG-RUS should be able to generate a revenue of at least 10M USD per year b) The operating expenses of LG-RUS have to be reduced overall by 20% c) The LG-RUS spa-resort should increase its clientele base by 80% the first year and follow an increase of 20% for the next six years d) The LG-RUS should be able to perform at least 90% of its bookings electronically over Web portals e) The LG-RUS has to increase the bookings conducted through third party travel agencies by 300% the first year and make sure that on average 10% of its bookings come from third-party external agencies f) LG-RUS and its services have to be visible and accessible to a wide range of potential clients and from different portals. It is recommended that the following processes are implemented: A. Increase Visibility and Increase Revenue Goals P1. On-line Bookings and Promotions 1. The web site of LG-RUS should be updated so that it allows for direct bookings. The clients should be able to register on the LG-RUS or Continental's system and obtain a unique client ID number. The clients should be able to reserve, cancel, modify, and find the status of their reservation by accessing LG-RUS's or Continental's on-line systems, by providing their client ID 2. The web site of LG-RUS and its booking system should also be connected with the booking system of the to-be parent company Continental.Co, so that bookings can also proceed through the Continental's main site 3. The booking system of LG-RUS should be connected with popular travel consolidation sites such as Trip-Ago and InPedia 4. The booking system of LG-RUS should connected to third-party external travel agencies 5. Special discounts should be advertised by the LG-RUS site as well as all connected to it sites (i.e. travel consolidation sites, travel agencies). B. Automate and Optimize Accounting Processes P2. Payments and Accounting 1. The LG-RUS accounting processes and IT system have to be upgraded. LG-RUS has to acquire a new accounting system that allows for charges (spa-services, drinks, dinners, other hospitality services) to be reflected at real time on the system's data base g) The LG-RUS payment system has to upgrade its payment system so that in addition to credit card payments, debit payments can be made h) The LG-RUS has to acquire a new back-end accounting system which has to be integrated and synchronised with Continental's accounting system. Continental's accounting system will be finally responsible for the final reporting and generation of accounting reports C. Increase Customer Satisfaction and Retention P3. In-house Customer Experience 1. The LG-RUS has to acquire a new Business Intelligence module so that it can perform analytics in order to provide customised services to clients and ensure client retention. The CANDO.CO recommends that the retention rate has to reach a level of 60% (i.e. 6 our of 10 LG-RUS customers are expected to re-book at the spa within a two years period) 2. Automate the in-spa ordering of services by providing i-pads to the guests throughout the duration of their stay so that they can connect to an on-line ordering system and issue their orders (e.g. order snacks, refreshments etc.) or book services (e.g. tennis courts, gym sessions etc.) on their own. In this respect form the perspective of a vacationer, the "Stay at LG-RUS" concept resort is a collection on "Hospitality services" offered to them. D. Reduce Operating Expenses P4. Energy Use 1. LG-RUS premises have to be monitored by loT sensors so that energy consumption is controlled. The sensors regarding monitoring heating, cooling, and lights are connected to a central IT system that needs be installed in order to control the optimal operation of heating, cooling, and illumination (e.g. floodlights are turned off when tennis courts are not booked, cooling/heating is reduced when room is not booked etc.). The central IT system maintains a database of data so analytics and energy prediction reports can be generated P5. Procurement 1. LG-RUS has to implement a business analytics system so that optimal procurement can be achieved (e.g. based on anticipated number of guests, the procurement of food, supplies, number of custodian staff can be optimally scheduled). E. Ensure Regulatory Compliance P6. Privacy and Security 1. LG-RUS has to make sure that any client information is kept secure and private especially now that its systems and databases are integrated with Continental's. 2. LG-RUS will ensure all IT communications (in-house communication, mobile devices with guests) are encrypted and secure, and all IT communications with third parties (banks, vendors, Continental's IT systems) are also encrypted and secure