BUSM7011: SIMULATION/REFLECTIVE REPORT

CHOICE HOTEL INTERNATIONAL’S INNOVATIVE APPROACH TO

MODERNIZING THE CENTRAL RESERVATION SYSTEM
This is a video case about Choice Hotel International’s innovative approach toward
project management, including the big changes in digitizing its supply chain into a global
oriented reservation system that flexibly manages data across all locations across the world. This
video case study is an accurate example of risk management when it comes to adjusting an
important informational system into something that is significantly different and requiring much
more technical and time investment in comparison to maintaining the former system (Krajewski,
Ritzman & Malhotra, 2019). One lesson I have learned from the Choice Hotel International’s
example is the necessity in taking quick, immediate actions instead of hesitating and waiting
until everyone was sure of them. In order to deal with potential negative implications, Choice
Hotel International has decided to divide the system transitioning process into smaller
components, first of all, by adopting the software “Agile'' instead of choiceEDGE, which was
initially planned for implementation but was deemed too incompatible and difficult for
immediate application. Having realized that they have no time to lose in such a competitive
hospitality sector, Choice Hotels executives decided to adopt the second-best-option, knowing
that it will be a low-hanging fruit that will enable the chain to keep up with its competitors while
buying the time necessary in order to successfully convert the system (Abrahamsson et al.,
2017). Another lesson I have learned from this case study is the importance of a computational
system that greatly enables corporations to control time iteration, resource management, scope,
and quality.
Having done research on this video case study, I believe that its lesson is highly
applicable to a wide variety of fields and industries, from customer service to human resources
management. Risks always exist and businesses need to be aware of the different theoretical
tools that can be used to handle them. In this case, Choice Hotel International did due diligence
in drafting the Work Breakdown Structure in order to cater for such systematic change in
accordance with the current technical capability of the company (Withiam, 2017). In most of the
companies that I have worked for in the past, there seems to be a lack of applications for the
techniques being mentioned in our textbook such as network diagrams or critical path method
technique, therefore, I hope that by learning of how Choice Hotel International has been able to
turn these models into a reality, I will be able to replicate the same techniques at the company or
organization I am working with.
One factor that may prevent me from applying Choice Hotels risk management
techniques is the lack of finance and resources to conduct such an extensive project, especially
with a team of specialists who are always available at notice.
The theory that is most applicable to this video case study is the decision theory. In the
video case study, Choice Hotels CIO realized the necessity and urgency in replacing the chain’s
Central Reservation System into a more advanced international digital communication system
that is suitable for the ever expanding operational requirements of Choice Hotel International. In
line with the decision theory, the CIO considered all alternatives that could outperform or proven
to be a better fit in comparison to the initial choiceEDGE program. This sensitivity testing

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process has resulted in the immediate adoption of Agile as the most suitable candidate for the
currently adapting operational system of Choice Hotel International.
This session has changed my idea on management, specifically regarding its real-life
implication of the theory of constraints, which indicates the importance of prioritizing simplicity
over complex and grandiose choices or decisions that may become yet another constraint for the
company to jump over. In the companies that I worked for in the past, it was extremely difficult
to have a procedure or step-by-step process simplified, since many departments were involved in
it and they could not agree on which step to cut and which one to keep. As a result, this video
case study is an illustrative example as to how big corporations eliminate constraints, which has
challenged my view of corporate bureaucratism being a norm (Weatherford & Kimes, 2003).
One knowledge gap that I find worthy of further investigation is the implication of
potential mistakes or failures that may occur after the decision has been made or the project was
completed. Even though companies may be able to come up with another project to fix small
issues here and there, the question is do they need to revisit the entire project all over again and
look for possible problems coming from their previous steps. In order to close such a knowledge
gap, I plan to research other project management case studies in order to make a connection with
the relevant theoretical implications being provided by Choice Hotel International (Prasad &
Dev, 2000).

Reference

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Abrahamsson, P., Salo, O., Ronkainen, J., & Warsta, J. (2017). Agile software development
methods: Review and analysis. arXiv:1709.08439.
Krajewski, L., Ritzman, L. P., & Malhotra, M. K. (2019). Operations management. Processes
and Supply Chains, Harlow: Pearson.
Prasad, K., & Dev, C. S. (2000). Managing hotel brand equity: A customer-centric framework
for assessing performance. The Cornell Hotel and Restaurant Administration Quarterly,
41(3), 22-4.
Weatherford, L. R., & Kimes, S. E. (2003). A comparison of forecasting methods for hotel
revenue management. International journal of forecasting, 19(3), 401-415.
Withiam, G. (2017). Choice Hotels subdivides, arranges financing. Cornell Hospitality
Quarterly, 38(3), 11.