Case 3-2: Royal Caribbean Cruises Ltd.
Posted by busi6517 on June 12, 2006
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Catherine Hackett said
Hi Monalyn
Did you have any questions you wanted to ask in order to get the discussion started?
Thanks,
Katie
Catherine Hackett said
I think in the case of RCCL implementing option two, which is to make an additional $8 million infrastructure investment in the next 12 months for the reservation system, is key to success. This IT strategy fits well with the company’s overall strategy to enhance the customer experience, reduce costs and increase revenue. In fact, I feel that investing resources in this one pillar of the Leapfrog initiative will yeild the best results. By centralizing the reservations system, RCCL has the ability to reduce costs but also improving overall customer satisfaction by delivering a consistent service and lastly, gives RCCL the ability to upsell through Customer Relationship Management techniques, other products/servics, to increase overall revenue. Some considerations to keep in mind with this IT strategy include carefully managing the “dip” in the system during implementation of the new centralized system to ensure there is little to no impact on customer service and business operations. A second important consideration is that of assessing risk of this particular project by determining whether the project has low implementation risks and making sure this is the case.
monalynn said
Hi Catherine,
This week I am just posting a high level summary of the discussion and asking for additional feedback and or comments. Great discussion!
The leapfrog project was derailed by 9/11. Scope of the project had to be cut because of the declining revenues after 9/11. Discussion about the best course of action that could be followed focused on the justifiable ROI to investors, alignment and fit with overall corporate strategy. Consensus seemed to be that leapfrog should continue but at a reduced pace. Interesting viewpoints were provided by participants on if the reservation system was prioritized appropriately. It was suggested that maybe the focus on efficiency with IT was stronger than it should be and that somehow the importance of the human aspect of the customer experience was being overlooked. There was also a suggestion made to move from the factory to the strategic quadrant of the Strategic Grid. IT was seen as an enabler to provide an enhanced customer experience but was not seen as something that would change the companies strategy. The customer experience was seen as being the cornerstone of RC’s business.
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