The Thomas Cook case

Résumé du document

Thomas Cook UK had transformed its business processes in order to improve the profitability and minimize losses. The Thomas Cook management team developed a program to reduce costs and improve the margins and integrate operations. Behind this real case, I will go deeply into the IT consulting work. This paper follows a methodological approach of solving problems and at the same time understands the base of the Business Process Outsourcing - more accurately by the transformational outsourcing process. The paper also explains the relationship between Business Strategy and IT, more accurately how can two different logical paths be combined and managed in order to increase results of a company. But limiting the issue, for this kind of case, will decrease the accuracy degree. That is why; I am going to develop different approaches like Business Modeling, Business Process Re-engineering, Business Outsourcing, Business Process Management and finally, the application integration. Because all these business approaches are quite important to analyze the case.

Extraits

[...] The case: Thomas Cook A. Company's activities II. The Problem's clarification III. The problem's decomposition A. The issues B. The approach to solve the problem IV. The findings and the final Recommendations Introduction Thomas Cook UK had for main issue to transform its business processes in order to improve the profitability and minimize losses. The Thomas Cook management team developed a program to reduce costs and improve the margins and integrate operations. Behind this real case, I will go deeply in the IT consulting work. [...]

[...] The savings has a two effects, the first one is to have a healthy financial situation which increase the benefits for the shareholders and stakeholders as well and the second effect is the opportunity for Thomas Cook to continue investing in the company. The total amount of the savings was is 14 mio. Of GBP, that means that the amounts to invest will necessary have an impact in the company. The Accenture-Thomas Cook's contract has lengths of 10 years and this partnership allows Thomas Cook to continue an optimization of its processes in order to be more competitive. [...]

[...] This leverage enhanced the reputation and the brand image of the company. But to face to the new competition and the change of the environment and of the customer habits, Thomas Cook had to transform its internal processes and organizational structure. The company spent too much money because its processes were not rationalized and not centralized. Among the three business units –sales, tour operations and the airline- had their own management board and infrastructure. For each business unit, it had its own financial processes and independent legacy information technology systems. [...]

[...] The problem was the decentralized organization of the company that generated losses. This situation came from the fact that Thomas Cook's strategy was to implement an economy of scope and with time, market changed, and this strategy was not the better one and generated lost. The economy of scope refers to efficiencies primarily associated with demand- side changes, such as increasing or decreasing the scope of marketing and distribution of different types of products. Economies of scope are one of the main reasons for such marketing strategies as product lining and family branding. [...]

[...] Thomas Cook now has control of the Brand worldwide. This transaction meets the company's acquisition criteria in terms of it being earnings Accretive and exceeding the cost of capital. But as well the strategy of development of its market share is illustrated through the point that Thomas Cook is forging ahead with its multi-channel strategy, claiming shops, online, television and call-centers attract more bookings across all channels. The vertical integration meant the operator could track customers and their needs and that led to increased conversion rates. [...]