1 Knowledge and Learning PG Diploma in Hospitality Management Customer Service and Quality Systems – Session 3

2 Objectives Understand the role of computer systems in the hospitality industry Describe the main computer system functions in hospitality Understand different purposes for which stored data may be used Explain the distinctions between data, information and knowledge Understand the importance of knowledge management Explain some techniques of knowledge management

3 Review Questions How can you ensure that you present a professional image at all times? What can you do to ensure that you communicate effectively in face-to-face situations? Give 6 examples of good telephone practice. What objectives did you specify for your Customer Complaint Handling course?

4 Computer Systems Thinking of a large hospitality organisation like a chain of hotels, list the main computer systems and their purposes

5 CRM – Guest History Hotel Computer Systems SCM – E-Procurement Accounts HR Stock ControlTelephone F&B - EPOS Security System Beverage Control GDS Pay per View Property Reservation System Switch PMS Online Distributors

6 Data and Technology Taking each of the different parts of the hotel’s information technology system, list some examples of types of data that is captured and stored List the advantages of guests using a swipe card rather than a key

7 Reservation System

8 GDS and CRS Global Distribution Systems –Originally developed by airlines –Made available to travel agents –Hotels were added at a later date –4 major systems Central Reservation Systems –Set up by hotel chains and as a service for affiliated hotels –Eg.

9 Online Distribution

10 CRM Customer Relationship Management Holistic system of customer information, transaction information, target marketing, market research and forecasting Purpose: to generate long-term customer loyalty –Eg. Customer loyalty programmes

11 Data Mining Associated with an organisation’s need to identify trends Guest Histories analysed for patterns –Individual guest preferences –Guests categorised into groups and sub-groups

12 Supply Chain Management Internet, Intranet and Extranet applications Automatically checks authorisation levels and passes down authorisation chain Allows purchaser to check progress Typically saves 15-20% on a manual system Reduces maverick purchases – typically 15-30% more expensive Usage rates and automatic reordering E-marketplaces eg. RFID systems for stock taking etc.

13 Enterprise Information Portal Search/discovery and navigation to information from a knowledge map Knowledge network, user interface to communities of interest/expert systems Personalisation and presentation of relevant information to the desktop eg.via intelligent agents Enterprise application integration Eg. Hilton has all HR manuals available on its intranet

14 Enterprise Information Portal

15 Data Hierarchy

16 Databases

17 Database Design You are asked to advise on a reservations system for a small owner run hotel: Suggest what database tables will be required Suggest what fields each of these tables should have

18 Data – Information - Knowledge Data – discrete facts that can be recorded in a computer system eg. name or passport number Information – data with a context but it is only information if it is useful to the receiver eg. At the front desk during check-out, Mr Smith is entitled to a 5% discount Knowledge – experience, values, contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information

19 Data Information Knowledge Understanding Relationships Understanding Patterns Increasing Complexity Increasing Context Data, Information & Knowledge

20 Information and Knowledge What kind of information do managers need to be able to obtain from a PMS – give as many specific examples as you can? Give examples of knowledge used in a hospitality organisation. Where is this knowledge stored?

21 Management Information Hotel - Night Audit Sales analysis Trends analysis Occupancy projections

22 Organisational Knowledge Explicit Knowledge – represented in documents, books, and databases Tacit Knowledge – organisational knowledge found in business processes products and services

23 Characteristics of Knowledge Subjectivity – depends on point of view Transferability – may be transferred from one context to another Embeddedness – not always easily accessible Self-Reinforcement – increases in value the more it is shared Perishability – diminishes in value over time Sponteneity – cannot be generated on demand

24 Organizational Learning and Knowledge Management Organizational Learning: creation of new standard operating procedures and business processes reflecting experience – “The Learning Organisation” Knowledge Management: set of processes developed in an organization to create, gather, store, disseminate, and apply knowledge

25 The Knowledge Management Value Chain

26 How Does Knowledge Management Create Value? Delivering the best products and services --- offerings that push performance boundaries Delivering solid products and services at the best price and with the least inconvenience Cultivating relationships to gain customer knowledge Delivering what specific stakeholders want Employee Capability Operational Excellence Product/Service Leadership Customer Intimacy Leveraging human intellectual capital in service design and delivery

27 Knowledge Management List ways that knowledge can be created or introduced into a hospitality organisation List ways that knowledge can be disseminated in a hospitality organisation List measures that may be taken to retain knowledge in a hospitality organisation