Case Study
Interact Systems, Inc. has developed software tools that help hotel chains solve application integration problems. Interact’s Application Integration Server (AIS) provides a two-way interface between central reservations systems (CRS) and property management systems (PMS). At least two important trends in the hotel industry are relevant. First, hotels are shifting away from the manual booking of room reservations and electronic bookings will continue to increase as more bookings are made over the Internet. Second, competitive pressures are forcing hotels to implement yield management programs and to improve customer service. By integrating the CRS and PMS through Interact’s AIS, inventories can be better managed, yields improved, and customer service enhanced.
All reservation traffic is routed from the CRS to individual hotel properties. This allows Interact Systems to create a database that can be used to track customers and to facilitate marketing programs, such as frequent stay or VIP programs, as a way of increasing customer satisfaction. Interact forecasts application integration expenditures in the hospitality industry to exceed $1 billion by 2021.
Greg Thomas founded Interact Systems in 2015 and developed the firm’s middleware software and hospitality applications. He has twelve years of systems applications experience and currently is Interact’s Chief Technology Officer. Eric Westskow joined Interact in early 2018 as President and CEO. Prior to that time, he worked in sales and marketing in the software industry for over twenty years.
Address the following questions in detail?
A. What are the advantages of having formed the company as a corporation?
B. What other organizational structures would have been appropriate?
C. Could Interact Systems qualify for S corporation status with the IRS? Why or why not?
D. What is the intellectual property involved in Interact Systems’ business model?
E. What methods of protection are available for Interact Systems’ intellectual property?
Parameters:
1. Your assignment should be 3 – 4 pages in length and written in APA style format.
2. Separate title and reference page (minimum of 3 or 4 reference)
3. Double spaced with 12 point Times Roman font and 1” by 1.5” margins.
4. Paraphrasing of content – Demonstrate that you understand the case by summarizing the case in your own words. Direct quotes should be used minimally.