INFORMATION TECHNOLOGY

The Role of IT in Enabling Business Performance: A Critical Study of Service Sector in UK with Special Reference to Tour Operators, i.e., Thomas Cook!

Abstract

This study purely discusses the role of IT in enabling business performance in UK with special reference to tour operators, i.e., Thomas Cook. In the introductory part study explains the role of Information Technology (IT) in modern business practices in UK and rest of the world. It also discusses why organisations like Thomas Cook Group Plc are spending more on their IT sectors as compare to other available options.

Table of Contents

ABSTRACT2

CHAPTER 14

Introduction4

Thomas Cook5

Aim/Purpose of Study7

Research Hypotheses7

CHAPTER 28

Literature Review8

CHAPTER 346

Research Methodology46

CHAPTER 448

Results and discussion48

CHAPTER 583

Conclusion and Recommendations83

REFERENCES86

BIBLIOGRAPHY91

APPENDIX110

Chapter 1

Introduction

Recent advances in information technology have changed the way organisations work. Personal computers do the work done earlier by mainframes. Computers are networked together in organisations and users share programmes, files and electronic messages. Telecommuting is on the rise with the ability to connect to organisational computer systems from home. The Internet has provided an environment in which information can travel across organisational and geographical boundaries. Although organisations are making increasing investments in information technology, the effect of such investments on firm productivity has been unclear.

The term “productivity paradox” has gained notoriety in the information systems circles. Although computing power has increased exponentially in the last three decades, yet productivity in firms, especially in the service sector, has stagnated (Brynjolfsson, 1993). Other studies have shown that information technology investment provides negligible benefits (Loveman, 1994). Since organisations are spending increasing amounts of capital on information technology, it is very important to understand the relationship between information technology investment and firm productivity. One such relationship is the determination of whether investment in information technology is increasing firm productivity.

Thomas Cook

Thomas Cook Group plc is one of the world's leading leisure travel groups with sales of £8.8 billion, 22.3 million customers, 31,000 employees, a fleet of 93 aircraft and a network of over 3,400 owned and franchised travel stores and interests in 86 hotels and resort properties. It operates under five geographic segments in 21 countries. We are number one or number two in our core markets. Thomas Cook AG is the third largest integrated tourism group in the world, serving some 14 million customers. This corporation has a large workforce, employed in a wide array of services, with reference to company's market of operations. As the travel industry consists of numerous sectors and divisions, companies within the industry vary greatly in their activities and the segments of the market they are involved in. The leading company, namely Thomas Cook AG, a leader in its respective field. Thomas Cook AG is an international leisure group, created in 2000 by C&N Touristic's purchase of Britain's Thomas Cook Holdings Ltd., with roots tracing back to 1841. The company is represented in the sales markets of Germany, Great Britain, UK, France, Belgium, Luxembourg, the Netherlands, Austria, Hungary, Poland, Slovakia, Slovenia, Egypt, India and Canada, providing products and services in most market segments, including airlines, hotels, tour ...