INTERACTIVE SESSION: ORGANIZATIONS Strategic Information Systems at Hong Kong Disneyland Spread across 68 acres on Lantau Island, Hong movements of audiences as they watch Disney Kong Disneyland is the largest theme park in movies. Disneyland then predicts which character Hong Kong. Though the park now attracts more or theme is most appealing and promotes the most than 7 million visitors a year, its current success liked theme or character in the park to match the is a remarkable example of a turnaround achieved collective tastes of its customers. through the strategic application of information Another strategic application of informa- systems. When it opened in 2005, it failed to meet tion systems is the management of Hong Kong its target of 5.6 million visitors the first year, and Disneyland's suppliers, who play a crucial role in that figure dropped by 20 percent the second year running the eateries and souvenir shops. To ensure against fierce competition from other tourist spots close coordination with them, a uniform interface and theme parks. Hong Kong Disneyland decided was developed to share real-time data-as soon to re-engineer its core operations by realigning its as a product is sold or an eatable is ordered, the information systems. suppliers know about it. This strategy has not only Every operation was studied exhaustively to re- played a vital role in managing inventory but has position information systems as a strategic asset. also reduced waste of perishable items. Online ticketing systems and point-of-sales (POS) Employees are a strategic asset for any orga- terminals recorded visitors' email addresses so nization, and Disneyland understands this well. that notifications could be sent to them whenever A specially designed staff engagement app called a new ride or a new character was introduced. CastApp connects every employee, anywhere This also enabled the park's management to iden- at the park. The app is based on Web Content tify regular visitors and send them special offers, Accessibility Guidelines (WCAG) 2.0, so the con- such as a 2-for-1 pass. In addition, text messages tent can be easily read by employees with vision were sent to regular visitors to inform them about problems. CastApp allows Disneyland's manage- special events. These measures worked, and visi- ment to share the daily rooster with employees, tors began to show up in great numbers again. The and the latter can keep tabs on any activity tak- long queues, however, were their own problem. ing place at the park. Moreover, there is a constant The management turned again to the informa- need to train the employees as new characters and tion it had gathered from visitors' emails, sending themes are introduced, and CastApp helps em- text messages to direct visitors toward other, less ployees enroll in the different training modules crowded sections of the park. that are offered regularly at Disneyland.. One of Disneyland's innovations in informa- tion collection is the MagicBand, a wristband pro- Sources: Education Bureau (Hong Kong), "Module III - Destination vided to all the visitors of Disneyland. Based on Geography: Theme Park," www.edb.gov.hk, accessed November 27, 2019; "Hong Kong Disneyland Resort Bags Technology Excellence Awards RFID technology and powered by a battery that for Media & Entertainment," Hongkong Business, March 1, 2019, hon- can last two years, a MagicBand can store all the gkongbusiness.hk; Li Yuan, "Discussion about the Business Model of Shanghai Disneyland," Management Exploration 3, 2017, 17-18; Jia Yao, visitors' vital information, including hotel keys, Research on Marketing Strategy: Case Study of Disneyland," Advances credit cards, and tickets. Data from the credit card in Economics, Business and Management Research 33 (2017), Second tells Disneyland which products are being pur- International Conference on Economic and Business Management (Feb 2017); Gao Yilian, "Comparative Analysis of the Business Model of chased, enabling it to manage inventories in real China's Theme Park," Journal of Finance and Economics 21 (2015); Zeng time. Visitors must swipe their MagicBands to Zhuoqi, "The Development Strategy of Disney Settled in Shanghai." Contemporary Economics 10 (2015), pp. 18-19; W. Wober, J. Frew, and M. get on a ride, and this tells Disneyland the exact Hitz, "Information and Communication Technologies in Tourism," Case location of its visitors, how many rides each one of Disneyland Hong Kong 5, No. 1 (2010), pp. 12-56; Accenture, "Theme has taken, and what the waiting times of the rides Park Operator Reinvigorates Sales through a State-of-the-Art Dynamic Distribution System," Accenture White Papers, 2008; Associated Press, are, which again allows it to direct visitors to those "Hong Kong Disneyland Fails to Hit Target," December 18, 2007, The with low waiting times. The MagicBand is more Motley Fool, www.fool.com; J. Dzeng and Y. Lee, "Activity and Value Orientated Decision Support for the Development Planning of a Theme than just about directing visitor traffic, however. Park," Expert Systems with Applications 33, No. 4 (2007), pp. 923-935; J. Disneyland wants to give its visitors a unique ex- Ward and J. Peppard, Strategic Planning for Information Systems, 3rd edi- perience, so it mines information that will help it tion (Chichester: Wiley, 2002); F. Kevin, Wong, and Y. Phoebe, "Strategic Theming in Theme Park Marketing," Journal of Vocational Marketing 1, decide which characters and themes to promote in No. 2 (1999), p. 319; T. O'Brien, "Free-Fall Attractions Making Wave," the park. Much of this information is sourced at the Amusement Business 109, No. 18 (1997), p. 20; W.Y. Oi, "A Disneyland Disney Studio, where cameras capture the facial Dilemma: Two-Part Tariffs for a Mickey Mouse Monopoly," The Quarterly Journal of Economics 85, No.1 (1977), pp. 77-96. 128Chapter 3: Achieving Competitive Advantage with Information Systems I29 CASE STUDY QUESTIONS I. Discuss the various strategies adopted by Hong 3. How does Hong Kong Disneyland manage its Kong Disneyland to attract visitors. suppliers? 2. What problem did Disneyland face as it began 4. How does Hong Kong Disneyland determine to draw more visitors to the theme park? How which theme or character should be introduced was it overcome? in the park? Case contributed by Sahil Raj, Punjabi University 3-5 How will MIS help my career? Here is how Chapter 3 and this book can help you find a job as an entry-level business # development representative. TH E COM PANY A+ Superior Data Quality, a fast-growing London-based company providing soft- ware and services to help large companies manage their data and data quality, is looking for an entry-level business development representative. 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