Technology Strategies for the Hospitality Industry© 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey The Power of Information Chapter 10

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Interview Michael Goldenberg Co-founder Statability.com Offers web-based reporting -Nonintegrated systems problematic to industry -Geographic dispersion still a problem to proper data collection

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Introduction Managing today’s complex hospitality business requires effective use of information and a sophisticated business intelligence system that can gather, store, analyze, synthesize, share, and communicate information through the organization to those who need it, when, and where they need it so that the may apply it in effective value-creating ways.

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Introduction An Effective Manager must: (1) constantly be in the know, (2) always have your fingers on the pulse of the organization, and (3) continually know what information is necessary to do your job and run your business An Effective Information System: knowledge capture, creation, sharing, and policy enforcing devices.

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Data Versus Information Wisdom Knowledge Information Data Power & Competitive Advantage

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Process Data Collection (Input) Data Cleaning & Standardizing (Quality Checks) Analysis & Synthesis (Processing) Reporting & Communicating (Output) Interpretation & Application (Use) Return on Investment (Measurement)

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Information as a Valued Asset Hospitality firm’s most important, yet undervalued asset due to its intangible nature. Garbage in equals garbage out Perishable Context sensitive Humanistic element

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Working Smart Real-time access to information needed

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Tools That Can Help Executive Information System (EIS)  Graphical  Drill-down  Exceptions – Negative and Positive Decision Support System (DSS)  Online Analytical Processing (OLAP)  Predictive Analysis (Forecasting)

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey The Balanced Scorecard Critical Success Factors  Financial considerations  Operational statistics  Competitive activity and positioning  Internal factors  Employee measures  Guest perspectives  Supplier relationships and performances  Environmental concerns  Community  External factors  Assessment for learning and innovation

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey The Importance of Infrastructure People, technology, business processes, and organizational culture Standards Middleware Security Capabilities and limitations

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Summary Information, its timeliness, and actions taken are key Performance measuring and monitoring tools are needed EIS and DSS are two examples Systems must allow for customization Knowledge, not location, is the key

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Additional Resources - online job posting -tech based companies