Sunburst Facts

• Operate in 16 states

• Revenue of $105 Million in 2003

• Includes hotel chains such as– Comfort Inns and Suites– Best Western– Holiday Inn Express– Clarion

Sunburst System Obstacles

• Wanted to use the ERP similar to the one used by its parent company

• Would cost $1.5 Million to get operational– Hardware and Software were most costly

• Needed skilled staff to run and maintain network– This could cost another $500,000– Such a staff would be hard to assemble

Possible System Solutions

• Install and maintain their own software– Choice hotels had faced the same problem a

year earlier– Pleased with software but implementing it was

a disaster

• Outsource the ERP system– Use an ASP (Application Service Provider)

Benefits of an ASP

• ASP maintains ownership of hardware and the software

• Sunburst would operate the system as though it owned it

• Would not have maintain an IT staff

• Quicker implementation of the system

• Can slowly add options if desired

Risks of an ASP

• Security– Afraid information flowing back and forth could

be intercepted

• Companies may be locked into their vendor

ERP SYSTEM?

• Needed a way to keep information synchronized between all locations

• Easy way to share information between hotels

WHY OUTSOURCE?

• Cost

• Required Technical Skills

• Speed to production

Implementation?

• Management would have to be trained to use and operate the new system

• Organization would have to absorb a large upfront cost if they did not use an ASP

• Keeping and well staffed crew after implementing the system.

OUTSOURCE ERP TO ASP?

• Security

• Transferability

• Will the ASP be able to survive?

QUESTIONS?