HARRAH’S

ENTERTAINMENT INC. ‘CASE’

• Technology is organizationally neutral. IT impacts entry barriers and switching
costs (All 5 forces of Porter’s model)
The ERP implementation generally fails because skills of software development
perspective is given more importance to the skill of user usage perspective.

If decided to go for ERP, and then deciding for best modification for own context, rather
than off-shelf, one finds to have 3 options:
o Configure: It is done after purchase therefore organization pays extra cost
for built in features, which may not be required by an organization.
o BPR (Business process re-engineering): It is changing the organization to
suit the software, which is least desirable. (If the change is desirable and
completed before ERP implementation, then most probably, the need of
ERP would have been over then!!!)
o Customize: The customization of ERP software will require lot of bugging
& debugging

Generally, an organization has many functions and one ERP may not be best software
for all the functions. Also, just ERP implementation will never give competitive
advantage. Company owned or in-house developed software may be better for some
functions.

ERP and ‘Project Management Systems’ integration is almost impossible. Therefore,

best of the breed (BoB) strategy is followed by project management organization, (esp.
by project management companies like Boeing and GE), wherein software for each
organization function is individually picked & developed and then, integrated / coupled
as a whole.

ERP software should not be purchased without internal assessment. ERP is not panacea
of all problems.

Therefore, Harrah has to follow a Retention strategy (unlike the Carnival Cruise example –
which had to have Acquisition of new customers strategy), (or the earlier thought – Loyalty
reward strategy).
The Retention strategy ® Personalization strategy

IT has made possible the ideal size of market size as one. For example, Dell provides
customized solution to all customers. Airtel provides: “My number my plan”. (30 years
ago – text books said that ideal market size of unity is practically not possible)

Types of customer data analytics:

o Descriptive analytics: captures basic information
o Predictive analytics: provides suggestion as a group.
o Prescriptive analytics: provide real type suggestion to customers.

Before purchasing CRM software, business strategy, Functional (STP) strategy, CRM
strategy and application requirement should be analyzed in sequence.

• If centralized solution of CRM/ ERP software is proposed to be implemented in

an organization then zonal centre managers may resist it to prevent power
structure change and dilution of their power (Changes the power dynamics of
the organization). This is the main challenge of IT (CRM /ERP software)
implementation.