Running head: LITERATURE REVIEW

The effects of Cloud-Based Customer Relationship Management on

Junix Resort & Spa

MGMT6000 - Management Information Systems

LITERATURE REVIEW 2

Literature Review

Introduction

Cloud computing is alleged to be a budding technology that is significantly affecting the

entire business sector. The hospitality and tourism industry is likely to profit from the use of

cloud based solutions and as a consequence increase the worth of organizations (Rudd, nd).

Technology of this kind is able to facilitate the effortless progression and change the way in

which the hotel employees interact with the customers; also making the operations simpler while

allowing managers to focus on more extreme issues (Sereseanu & Rus, 2014).

Even though it is likely that cloud computing will transform the operations of the industry

in an effort to systematize and network essential data, the hotel industry is flanked with

resistance. However, several small and medium (SME) hotels may possibly see the significance

of grasping this type of technology while others may put the decision on hold or prefer not to

adjust. According to Hopkins (2011), cloud base computing can improve the fiscal as well as the

technical features of the hotel by offering a faster, less chancy and more cost-effective resolution

to that of on-premise applications. Sereseanu and Rus (2014) also deemed cloud computing as a

valuable mechanism and as such SME hotels should seize all benefits of this technology.

Consequently, industry requests which were formerly accessible to more elaborate hotels

only, can now be attained by SME hotels through cloud computing at a lower rate with

minimized time. Cloud computing, by way of its exceedingly adjustable feature can be shared by

multiple clients concurrently. The cloud computing framework is pliable which can be extended

to enfold the increasing production and not reducing the daily progression. Along with the core

values of Junix Resort & Spa, the use of cloud-based CRM is assured to help foresee and handle

the visitors’ outlook. Basically, this vision is an intended and premeditated tool used to support
LITERATURE REVIEW 3

constructive statement ensuing in long-term associations that will prove cordial both to the resort

and its visitors.

Consequently, the rationale for the literature review is for the discussion of the ways the

implementation of cloud based Customer Relationship Management (CRM) software can

significantly benefit small and medium (SME) hotels and improve their place in the competitive

marketplace. Also, giving highlights to the potential threats and disputes that may appear by the

execution of cloud based CRM and the identifying of the cloud-based CRM through its

framework and design. This investigative approach of the features of cloud-based CRM will

assist Junix Resort & Spa in determining the practicability of switching to cloud-computing

futuristically.
LITERATURE REVIEW 4

Review of Literature

Benefits of the Cloud-based CRM for SME Hotels

The role of small and medium size enterprises (SME) in the financial system of

developing countries is enormous, which includes the reduction of unemployment within

communities. Even though, resources are frequently minimal that is capital, labour and support,

by appropriate preparation, modification and suitable use of technology, it is possible for SMEs

to develop and establish their position amid the competitive marketplace. It is alleged that cloud-

based CRM offers relentless payback, and then small and medium hotels ought to grasp the gain

of these opportunities.

During a wide-ranging study carried out by Amoako, Arthur, Bandoh and Kafui Katah

(2012) revealed that the variation of cloud based CRM for the Golden Tulip Hotel in Ghana

verified the gains established by the use of the technology which has enhanced the quality of

service and significance to the visitors. An improved visitor’s approval and trustworthiness

which solidified associations for upcoming dealings was the resulting factor. As a result,

products and services based on the individual visitor’s necessity were made superior. Another,

positive from the research is the improved competence and helpfulness of the sales personnel by

developing enhanced promotion approach and better fees which resulted in increase profits.

Orantes-Jimenez, Vazquez-Alvarez and Tejeida-Padilla (2016) also carried out a related

research on SME hotels in Mexico which unearthed similar outcome. It was declared that the

variation of cloud based CRM has immense payback to SME hotels in Mexico as it approved the

high quality service offered by the hotels based on visitor’s liking, along with the ability to catch

the fancy of spanking new visitors. They disputed that this sort of technology permitted SME

hotels to attain clientele worldwide which positioned them to contend with the more elaborate
LITERATURE REVIEW 5

hotels for the identical clientele. Orantes-Jimenez et al. (2016) were also able to recognize the

impact of the technology on SME hotels in Mexico and shared stories on the successful

implementation.

However, Truong (2010) highlighted a significant trepidation in his research and argued

that regardless of the expectant benefits that the cloud based CRM may possess, it is still unclear

of the ways in which this technology can assist SMEs to achieve an competitive edge in the

marketplace. Truong (2010) believed that it is not the adaptation of the technology that will

cause the hotel to be successful; it is the ability to capitalize on the use that will yield the desired

results. He further stated that cloud based CRM is unable to work single-handedly, it must

operate in tangent with other resources to realize the added benefits.

Hopkins (2011) maintained that cloud based CRM has many more benefits to SME hotels

apart from the customer satisfaction aspect. He stated that it will reduce the time and cost of

project completion, integrates ready to use systems, minimize the burden of operational

maintenance, and will involve less technical resources. Sereseanu and Rus (2014) also agreed

that this kind of technology will benefit SME hotels because of the reduction in information

technology (IT) infrastructure, operational costs, upkeep and service. They further argued that

this technology provides ease of access to readily available data, attest to being user friendly, has

an abundance of storage capacity, increases staff efficiency and integrates easily with other

software applications.

Ramkhelawan, Gobin and Cadersaib (2015) in their research on SME hotels in Mauritius

articulated that if these hotels desire to stay in operation, they must adopt cloud based technology

as it would allow them to deal with new disputes, augment the competence of their functions and

augment visitors adventure while reducing expenses. Opposed to all the gains that were stated,
LITERATURE REVIEW 6

Truong (2010) argues that although organizations store their data on the cloud, pandemonium

will occur if there is an interruption of operations from a glitch in the technology.

The abovementioned analysis conducted on SME hotels in varied nation-states yield the

identical result that cloud primarily based technology proves useful. It conjointly established that

the difference of cloud-based computing would enable new players to avoid wasting on cash

which may ideally be accustomed promote defrayment for business creation. It may bridge the

gap that exists in data/information communication technology (ICT) between SMEs and bigger

hotels. in operation on a restricted budget during a extremely aggressive market, it is crucial for

SME to remain ahead within the trade. With cloud computing these hotels will prolong the

period of time of their existing systems with new inventions, providing them with time to raise

and market their services and eventually gain competitive advantage within the hotel industry.

Potential risks and challenges of implementing cloud CRM.

With all businesses, regardless of size of operation, return potential risks and also the risk

of challenges. This can be not completely different for small and medium (SME) hotels once

considering the implementation of cloud based CRM software package as this can be a call that

must be assessed permanently. Though some hotels feel snug victimization the additional

standard cloud services like emails and payroll services, they prove less trusting within the new

services because of doable security risks.

According to Truong (2010), SME hotels can expertise challenges they value more

highly to use cloud computing as there are vital considerations relating to privacy and security of

knowledge, integrity and responsibility of the service supplier, responsibility and audit trial.

Sereseanu and Rus (2014) conjointly shared the same opinion that the hotels can lose

management of its information as a result of being for good connected to the web. They
LITERATURE REVIEW 7

conjointly brought into understanding that the performance of the business may be negatively

affected because of the slow speed of the network property and also the dependency and

responsibility of the service supplier.

However Hopkins (2011) begged to dissent as he believes that in comparison to the on-

premises system, cloud based mostly infrastructure has additional reliable and developed

platforms that uses enterprise-class security like firewall protection, intrusion detection systems

and Secure Sockets Layer (SSL) encoding to properly secure information and to counteract

hacking. He suggested that this kind of security feature lessens the price and burden of security

maintenance as this can be mechanically transferred to the service supplier.

When examination all the knowledge provided by these researchers, it was absolutely

established that the problems known appeared to be the common cause within the slow revision

of cloud-based computing within the SME hotels. It is determined that though several

organizations use the web daily, these researchers believed that lack of understanding of the

cloud functions provides rise to extra considerations relating to privacy, responsibility, security,

lack of management knowledge to identify some. All the same, it was conjointly established

that these risks and challenges conjointly affects the on-premises technology. The objective is to

use this new technology to boost the operations of the business and to sustain the clientele and

overcome the negativity. Hopkins’ (2011) argument remained convincing as he believes that

customers have to establish a point of trust within the service supplier therein they are able to

maintain a particular degree of ordinary. Additionally, with the ever-changing business model

and also the preparation of cloud based applications, the amount of security should be conjointly

modified to satisfy the requirements. Therefore, the cloud-based service supplier is totally
LITERATURE REVIEW 8

answerable for providing secured surroundings and should meet the desired laws before

transferring information to the cloud.

Infrastructure of cloud-based CRM

In considering the execution of any new technology, it is imperative to appear as its

framework and what is needed for its operation. With the introduction of recent technology

inside the industry, SME hotels have the choice to decide between cloud based CRM and on-

premises CRM. Though they serve the identical purpose, the most important discrepancy

between the two systems is that the method within which they are put in. whereas the cloud

based application is hosted on the vendor’s server and accessible to the client via an internet

browser, the on-premises application is put in directly onto the company’s own computers and

servers.

According to Hopkins (2011), cloud computing facilitates hotels to realize returns on

their investment inside weeks of implementation. He stated that SMEs ought to begin minuscule;

this might attract least direct prices and additionally provides the choice of customizing their

options and practicality. It additionally allows SME hotels to contour their business operations

through a quicker and cheaper method. Rudd (n.d.) in his analysis of the framework and repair

models is in agreement that the implementation of on-premises solutions is costly and time

intense. He stated that these prices additionally to coaching, salaries and designing is oppressing

to SMEs. Rudd (n.d) discovered that the eminent feature of the cloud base service is that it is the

power to manage business systems via simplified web-based interfacing, permitting the typical

user to take care of systems that may unremarkably need the information of associate degree IT

skilled.
LITERATURE REVIEW 9

Ramkhelawan, Gobin and Cadersaib (2015) in their analysis on SME hotels in Mauritius

explicit that if these hotels were to adapt cloud computing, they might reduce the necessity for

company Management to small manage their IT Department as answerability would be passed

on to the service suppliers, affording them time to concentrate on their core functions of

delivering outstanding service to their guests. Though Mell and Grance (2010), in agreement that

cloud computing have its blessings, there also are gray areas. It absolutely was more explicit that

the top user is at a drawback as they need no authority over the cloud-based infrastructure,

servers, storage, operative systems or network. Likewise, businesses might not have complete

domination over individual application capabilities however can be granted restricted access to

specific application computer code configuration settings.

Although the researchers have checked out the cloud computing from associate degree

infrastructure perspective, there are way more that may be expressed on this development.

However, the cloud based technology reduces the high value of getting the required hardware

wherever because the on-premises needs long hours in planning and implementing pc

applications. Additionally, this will be exhausted stages that rely upon the necessity of the SME

hotels and therefore the service model chosen. Whereas cloud computing provides nice profit to

its users it would not be the simplest answer for each organization as those affected has to

acknowledge the implications of migrating to the cloud each operationally and financially. This

kind of technology does not have a group value that causes fluctuations within the budget

supported its usage; so communication needs to be consistent between the required stakeholders

to cause it to work.
LITERATURE REVIEW 10

Conclusion

Cloud computing has verified to be the latest price, time and performance economical

technology. It is evident that the usage of cloud computing are going to be a lot more appreciated

and enforced within the future. The literature reviewed there are still issues on several problems

such as adapting this technology can enable SMEs to be ready to contend with larger or

international chains hotels. Additionally, some SMEs cannot get pass the difficulty of security

and dependableness of the service suppliers, additionally to lack of management over their

information, and are of the opinion that this could make them too vulnerable. It had been

conjointly necessary that the end-users understand the various sorts of infrastructure associate

degree preparation between a cloud-based services from that of an on-premises service to what a

decent service supplier ought to provide.

However, while there are various existing literatures on the acceptance of cloud based

technology contained by the hotel industry, there is poor literature on SME hotels within the

Caribbean that provides an avenue for more analysis.

LITERATURE REVIEW 11

Reference

Amoako, G., Arthur, E., Bandoh, C., & Kafui Katah, R. (2012). The impact of effective
customer relationship management (CRM) on repurchase: A case study of (Golden Tulip)
hotel (Accra-Ghana). African Journal of Marketing Management Vol. 4, 17-29.

Hopkins, G. (2011, June 2). Why the cloud is right for hospitality. Retrieved from Hospitality
Net: https://www.hospitalitynet.org/opinion/4051622.html

Mell, P., & Grance, T. (2010). The NIST definition of cloud computing:Communications of
the ACM, 53(6), 50.

Orantes-Jimenez, S.-D., Vazquez-Alvarez, G., & Tejeida-Padilla, R. (2016). Customer

relationship management and hospitality management. Proceeddings of the 10the
International Multi-Conference on Society, Cybernetics & Informatics (IMSCI 2016),
(pp. 163-167). Mexico.

Ramkhelawan, S., Gobin, B., & Cadersaib, Z. (2015, January). Cloud computing as an
alternative for on-premise software for Mauritian Hotels. Retrieved from Research Gate:
http://www.researchgate.net/publiation/28262429

Rudd, D. (n.d.). Cloud computing in the hospitality and tourism industry. Journal of
Instructional Pedagogies, 1-9.

Sereseanu, R., & Rus, R. V. (2014). The Hotelier in the clouds. Proceedings of the International
Conference ENTREPRENEURSHIP IN THE HOSPITALITY INDUSTRY, third edition,
Trends in Hospitality (pp. 75-81). Romania: Risoprint.

Truong, D. (2010, January). How cloud computing enhances competitive advantages: a

research model for small businesses. Retrieved from Research Gate:
https://www.researchgate.net/publication/273447113