Royal Caribbean Cruises, Ltd: Hbr Case Study Essay

1126 Words Mar 20th, 2008 5 Pages
Royal Caribbean Cruises, LTD: A Case Study
1. Using the Information Systems Triangle as a framework, evaluate the alignment of RCCL's business strategy, organizational strategy, and information systems strategy before Tom Murphy became CIO and then after Tom Murphy took over as CIO (up to 9/11/2001).
Prior to Tom Murphy's tenure as CIO, Royal Caribbean Cruises Line's (RCCL's) business strategies were not fully aligned with the organizational and IT strategies. Tom Murphy was instrumental in bringing these together.

A threefold business strategy was in place. It consisted of 1) design better cruise experiences, 2) reduce costs and 3) grow revenues. It improved guest experiences through luxurious ships with rock-climbing walls and
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Tom introduced a five-year IT strategy to support the business strategy. It consisted of creating fully redundant systems at two data centers, driving costs down through centralizing services and consolidating Celebrity and Royal Caribbean systems, focusing on innovative and flexible customer-focused systems. His goal was to serve the business 110% by providing the right tools to enhance guest experiences, cut costs, build revenues and leverage IT as a competitive advantage for Royal Caribbean. In 2000, after his organization was aligned with the IT and business strategies, Tom launched the Leapfrog project to get rid of legacy systems, gain supply chain efficiencies around integrating two ERP systems, improve employee systems to accommodate Royal Caribbean's personnel growth and build an integrated web-based reservation system to replace the current fragmented environment.

With Tom's help, Royal Caribbean had aligned their business, organizational and IT strategies. They focused on their key business objectives, leveraged an experienced staff and used IT as a competitive advantage. Then the 9/11/2001 attack occurred …

2. Do you agree with the 9/11/2001 downsizing?
After 9/11/2001, with the travel industry reeling under 50% booking declines, Royal Caribbean took quick, dramatic cost-cutting actions and adjusted its strategies accordingly. These actions were

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