Instructor’s Manual Abstracts
Vol. 3, Issue 1 IM Abstract: Strategic Decision-Making in Digital Transformation: Tourism Lethbridge
Sidney J. Shapiro; Andrii Fedorych; and Priyanshi Mishra
Case Overview
Dominika Wojcik, Senior Director of Communications at Tourism Lethbridge, the official Destination Management Organization for Lethbridge, Alberta, Canada, faced a decision in early 2023 regarding its digital transformation journey as she had to decide whether Tourism Lethbridge should continue using an existing third-party digital tourism application or develop a proprietary app. This decision was driven by the need for greater control, customization, and sustainability in their digital tools, aiming to enhance visitor engagement and data collection.
In early 2022, Tourism Lethbridge began using a third-party app to enhance digital engagement and provide gamified user experiences. Despite initial success, the app presented several challenges, including high costs, limited customization, and trust issues among merchants. The app’s backend system was complex, making it difficult for merchants to engage, and additional features required significant financial investment, leading to escalating expenses without ownership benefits.
By late 2022, these limitations prompted Tourism Lethbridge to consider developing its proprietary software. Dominika Wojcik and her team conducted a thorough cost-benefit analysis, comparing the ongoing costs and limitations of the existing app with the potential investment in custom software development. They decided that developing their own app would provide the necessary control and flexibility, allowing for tailored solutions to meet specific community and organizational needs.
The strategic decision to develop proprietary software was further supported by forming partnerships with local entities, such as the University of Lethbridge. Leveraging funding from the Mitacs Business Strategy Internship project, Tourism Lethbridge involved students and faculty in the development process, fostering community engagement and providing valuable practical experience.
Learning Objectives
By working through this case, students should be able to
- Understand the complexities and considerations involved in strategic decision-making, particularly in choosing between developing proprietary software and purchasing existing solutions and the challenges and benefits of adopting digital tools in the tourism sector.
- Analyze the importance of community and stakeholder engagement in organizational decisions and how local partnerships can influence and support strategic initiatives.
- Apply the Weighted Scoring Model to assist with the decision-making process.
- Provide recommendations based upon analysis with justification and a high-level implementation plan.
Course Suitability
This case is suitable for courses in business administration, management information systems (MIS), operations management, marketing, tourism management, hospitality and tourism.
Recommended Reading
Dolezal, C., & Novelli, M. (2022). Power in community-based tourism: Empowerment and partnership in Bali. Journal of Sustainable Tourism, 30(10).
Gretzel, U. (2022). The Smart DMO: A new step in the digital transformation of destination management organizations. European Journal of Tourism Research, 30.
Kindzule-Millere, I., & Zeverte-Rivza, S. (2022). Digital Transformation in Tourism: Opportunities and Challenges. Economic Science for Rural Development, 56.
Mahajan, R., Lim, W. M., Sareen, M., Kumar, S., & Panwar, R. (2023). Stakeholder theory. Journal of Business Research, 166.
Strategic Decision-Making in Digital Transformation: Tourism Lethbridge.
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