This document proposes using cloud computing and mobile applications to improve communication and customer satisfaction at InterStar hotels. It recommends implementing Huddle for collaboration, developing a customer-facing mobile app, and using Rackspace to consolidate customer data. This would allow InterStar to better understand customer preferences and engage them across multiple channels, increasing loyalty and revenue while reducing costs through improved efficiency. Initial costs can be justified by these anticipated benefits.

1. Presented by
Deloitte Consulting
Chelsea Winkler
Evan Keith
Kyle Williams
Philip Alexander Chen

2. Table Of Contents

3. Problem Statement
To provide exceptional customer satisfaction, InterStar
needs to have more effective communication. Their lack of
visibility and consistency is currently hindering their ability
to optimize profits.

4. Deloitte’s Postdigital Enterprise Framework

5. Implementation Steps

6. Application Improves Mobility
∗ Creation and Implementation of mobile
phone/ tablet application (Übermind).

7. Rackspace Accumulates Data
∗ Consolidate all information
systems to support and store all
customer data
∗ Target certain demographics
and tendencies
∗ Analyze Rackspace data
internally

8. Customer Satisfaction Increases Revenue
By using customer
data we are better
able to cater to
their preferences
(Building loyalty)

9. Benefits of Cloud Computing
Greater Customer
Satisfaction
Reduces Costs
Increases Revenue

10. Deloitte Improves Brand Consistency
By using a Cloud, which
stores internal
information, employees
anywhere around the
world can be
interconnected using
universal company
guidelines.

11. Justification of Implementation Cost

12. Summary

13. Appendix
∗ Expedia, Inc. Reports First Quarter 2012 Results:
∗ Tech Cost +Expenses
∗ 2011 = $82.9
∗ 2012 = $104.6
∗ Results indicate a 26% growth in cost between 2011 and 2012 which is explained by an increase
in personnel cost and depreciation expense.
∗ Reports showed advertising and media produced a 14% increase in revenue in
the first quarter of 2012
∗ Hotels.com’s booking app resulted in over 5 million downloads in a year and
the Expedia Hotels app resulted in over 2 million downloads in 13 months
∗ A refreshed webpage for deals led to an increase in gross bookings
∗ Hotels.com’s Facebook fan page doubled it’s fan base in the first quarter 2012
∗ Expedia.com’s website launched a sales promotion that led to a three digit
room night growth.
∗ http://files.shareholder.com/downloads/EXPE/1827268210x0x563523/5e3f52cf-b7

14. Appendix
∗ Huddle Cost
∗ The implementation and cost of Huddle would be minimal to InterStar.
It would maybe take a couple days for the user to become familiar with
the program and only cost InterStar at most $40 a month per user.
Given that InterStar has 2,500 hotels, and let’s suppose that you only
need one person to have access to the cloud at each hotel. This equal
$100,000 in total cost and the individual costs could easily be covered
by each hotel.
∗ http://cloudcomputing.sys-con.com/node/2172661

15. Appendix
∗ Application Cost
∗ The development of the application would cost somewhere in the area
of $150,000 to $200,000. This would include the code as well as the
back end server and infrastructure as well as any testing that would
have to be done. The average going rate for a coder is $100 per hour.
The price is driven up because this application would be rather
complex and take time. This application would tap into the growing
sector of instant information and access. It would allow customers to
easily book rooms and be updated on deals. Though it may be a high
upfront cost, it will generate revenue through a whole new target
market; feeding into the fast paced lives of the busy American.
∗ http://www.padgadget.com/2010/10/17/the-cost-of-building-an-ipad-app/
http://osxdaily.com/2010/09/07/iphone-development-costs/
http://appmuse.com/appmusing/how-much-does-it-cost-to-develop-a-mo

16. Appendix
∗ Rackspace Cost
∗ Projected costs for a 1200 GB Disk with Rackspace would be $1,576.80/
month or $18,921.6 for one year, however the costs would be offset
with the money that we actually save from not having to buy our own
hardware, server maintenance fees, power and cooling costs, as well
as software licensing and upgrade expenses. By subscribing to
Rackspace for a relatively low monthly fee, InsterStar would actually
be saving money from not having to maintain hardware that not only
takes up valuable company space but also often goes unused, which
would help stretch our budget further for other aspects of the
business that could also use improvement. Rackspace would also allow
us to scale down during slower periods in the year by using less
storage space in order to cut costs.
∗ http://www.rackspace.com/cloud/cloud_hosting_products/servers/pricin