Individual Assignment: MBA/2015/3810 C.G.N Perera

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Individual Assignment

IT STRATEGY OF ELEPHANT ISLAND (PVT) LTD

MBA/2015/3810 C.G.N Perera

Sub Group No.: C–4

Course : MBA 510 Information Management


Instructor : Mr. Sisira Athuraliyage
Term : October - December 2015

Postgraduate Institute of Management


University of Sri Jayewardenepura
Declaration

I am fully aware of the content under plagiarism stated in Chapter 6 of the PIM Student
Handbook and I hereby declare and affirm that I have strictly observed the law relating to
intellectual property, copyright and plagiarism in this exercise.

…………………… ...........................
Signature Date
1.0 Introduction
This report focuses on highlighting the current IT strategy of Elephant Island (Pvt) Ltd. First this
looks at a brief overview of the company and then highlights the current It strategy of the
company. Thereafter it evaluates current IT strategy and ultimately presents recommendations in
order to address the areas where further improvements are needed in responding to growing
competition in the business environment.

2.0 Company Overview

Commencing operations in 1998, Elephant Island (Pvt) Ltd (ELIS) is the fifth largest tour
operator for the British market to Sri Lanka. They are mainly in to inbound tourism while also
having several hotel projects within Sri Lanka. As a destination specialist, the company has
positioned itself as a niche service provider by catering solely to high end traveller segment and
their business solely dependent on web sales that are generated through corporate website and
online live travel consultancy platform. Having main office in UK, ELIS has its representative
and operational offices in Sri Lanka, France, India and USA.

3.0 Current IT Strategy

ELIS’s current IT strategy focuses 02 main aspects of the business as depicts by figure 1.0.

Figure 1.0: Main focuses of IT strategy of ELIS

IT Strategy

Operational Management Business Development


Related to managing internal operation of Related to developing markets, promoting
the company such as product and service products and services and other
development, handling inquiries etc; marketing related activities.

Source: Author

It strategy of ELIS designed to achieve overall business objectives of the organisation as depicts
below. Each year IT strategy has been adjusted to support overall performance of the
organisation by aligning to evolving market dynamics.
 Leadership in British traveller segment to Sri Lanka
 Operational excellence
 Superior service performance
 Developing emerging tourist markets
 Increase profitability

Adaptation of digital technologies is a must for tourism driven organizations like ELIS in order
to respond to the growing competition and capitalize market opportunities. ICT has created
major impact to the growth of tourism and emergence of online based travel platforms due to the
ease to reaching target markets. In this case, having a comprehensive and flexible IT strategy
which include highly optimized company website, online tour consultancy platforms, systems to
support internal operational performance etc; have supported and will support ELIS in achieving
sustainable competitive advantage over rivals.

4.0 Evaluation of current IT strategy

Strengths Weaknesses
Strong alignment with the business strategy Low focus on operational management element
Adaptability to changing market dynamics Unrealistic web promotional expenditure that
accounts for 10-12% of its total revenue.

Dedicated and skilful in-house IT team Lack of interdepartmental coordination


Leadership support and commitment Unavailability of customer information
management system.

5.0 Recommendations

- Realignment of IT strategy in order to strengthen the operational element by further


developing and integrating available system with other functional areas of the company.
- Reconsideration of planning and development in order to make investment expenditure more
effective by selecting most effective and efficient IT strategies.
- Communication of IT objectives to all the employees and getting them involved in decision
making and implementation process.
- Have routine sessions to communicate changes to the original IT strategy among all the
departments and employees that are involved in the operation.
- Improve service performance with technologically developed and efficient systems and
processes.
- Development of a system that enable ELIS in managing client information, in order to support
service performance and future decision making.

7.0 Conclusion

As discussed above, it is evident that ELIS has a well aligned strategy in order to respond to the
growing competition of the tourism industry. However it was identified that there are drawbacks
in the current strategy which hinders level of service, financial and operational performance of
the company. By considering all discussed areas, strategic recommendations have presented to
address shortcomings that will lead in enhancing overall IT strategy to support achieving overall
business objectives of the organisation.

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