Hospitality Information Systems and Technology The Internet and Communication

Using IT for Competitive Advantage What is competitive advantage? To do things better, cheaper, or faster than anyone else (competitors)

IT’s Role: Past and Present Managerial focus Efficiency Cost reduction Labor savings Productivity Yesterday: Support/Utility Managerial focus Differentiation New products/services Core competences Strategic positioning Value adding Today & Tomorrow: Strategic/Enabler

Using IT to Create CA: Examples American Airlines – Sabre Sabre FedEx – Powership software Powership softwarePowership software Walmart – Supply chain mgmt systems Hertz – driving direction systems Dell – computer self ordering system computer self ordering systemcomputer self ordering system

Using IT for Marketing What is marketing? A process of identifying human wants and needs, and developing a plan to meet those needs A process of identifying human wants and needs, and developing a plan to meet those needs

The Four P’s of Marketing P____________P____________P____________P____________

Marketing Mix Marketing communication tools Direct marketing Direct marketing Advertising Advertising Interactive media – Internet marketing Interactive media – Internet marketing Sales Sales Promotions Promotions Sponsorships Sponsorships

Direct Marketing Communicate directly with your target audience Direct mail Direct mail Telemarketing Telemarketing Various broadcast or print media Various broadcast or print media Sometimes internet Sometimes internet

Advertising Non-personal communication Magazine ads Magazine ads Newspaper ads Newspaper ads Billboards Billboards

Interactive Media Two way communication Internet Internet CD’s CD’s Digital TV Digital TV

Different Internet Communication Platforms Applications of Internet Communications Intranets Intranets B2B online and through VPN B2B online and through VPN B2C online B2C online C2C and C2B online C2C and C2B online

The Purpose of Internet Communication for Business Sales and marketing Human resources management Manufacturing and operations Customer service and support Finance and accounting Customer service Customer Relationship Management (CRM) Public relations and information distribution Employer – employee communication

Internet, Intranets & Extranets Internet Accessible to anyone, attracts all types of users, decentralized Accessible to anyone, attracts all types of users, decentralizedIntranet Private access determined by the owner; users are employees authorized by the company; highly specialized and organized Private access determined by the owner; users are employees authorized by the company; highly specialized and organizedExtranet Privately controlled access to the public; it’s users are the company’s internal and external customers; the information is designed to be shared among the users Privately controlled access to the public; it’s users are the company’s internal and external customers; the information is designed to be shared among the users

Using an Intranet for Communication Reduce call center loads and backlogs Help with customer service issues Create ongoing customer dialog Improve customer satisfaction and loyalty Cut employee training time and costs Reduce service response time

Using an Extranet for Communications B2B & B2C Private network that connects to the Internet using the same protocols. Part of a company’s Intranet extended to outside users A way to securely share part of a business’s information or operations with suppliers, vendors, partners, customers or other businesses Requires security & privacy Usually has a firewall at the gateway server to protect the resources of the private network from users on other networks

Using the Internet for Communication Benefits Reducing call center loads and backlogs Reducing call center loads and backlogs Empowers customers to find their own answers and share information across the organization Empowers customers to find their own answers and share information across the organization Reduces service response time Reduces service response time Cuts employee training time and costs Cuts employee training time and costs Creates ongoing customer dialogue Creates ongoing customer dialogue Improves customer satisfaction and loyalty Improves customer satisfaction and loyalty

Internet Tools for Customer Service E-newsletters mailing lists Discussion forums and FAQ’s Live online chat Webcasting

Using Can be accessed anywhere Can personalize message to customers Relatively inexpensive and convenient Readership of can be tracked

Using E-Newsletters A special type of in publication quality Mostly subscription based and can help ensure a degree of loyalty in readership Mostly subscription based and can help ensure a degree of loyalty in readership Sent on a predetermined schedule Sent on a predetermined schedule Provides higher degree of consistency in terms of content and format

Using Mailing Lists People who share same interests and subscribe voluntarily to the list Form Virtual Communities Form Virtual Communities Can be two way Allows subscribers to send messages to the list Allows subscribers to send messages to the list Marketing from the company Users send their views to the company

Keeping Subscribers on the E- mailing list Only send valuable information and tips you know the subscribers may want Include a concise privacy statement to ensure collecting personal information is a priority Should allow customers to remove themselves, and faithfully carry out the promise Each message sent should include a brief explanation of how the recipient signed up for the list & contain instructions how to unsubscribe

Using Discussion Forums and FAQ’s Convenient way to collect customers opinions, input concerns and comments in one central place Benefits Viewed 24/7 Viewed 24/7 Answers are simple and easy to understand Answers are simple and easy to understand Questions should be ones customers are concerned with Questions should be ones customers are concerned with Your own expectations Submitted by costomers

Using Live On-line chat Allows instant communication with customers and online visitors Gives customers instant feedback

Using Webcasting Allows customer to view streaming videos in a live Web based video conference Streaming media Streaming media Real time – plays as it is transferred via the Internet Downloaded media Downloaded media Transfers a file to the customers computer to be played back later

However, Remember This… It is not the technology itself that provides the competitive advantage in a firm, but rather, how that technology is used, what it enables in the firm, and what that technology can deliver in the future that makes a competitive difference.