1. The Power of Information
Chapter 10
Interview
Problems with current systems
Most of the systems are not integrated
Geographic dispersion of the many systems
Amount of paper-based data, which must be inputted manually
Data should be captured as close to their sources of origination as possible
Managers need to do a better job of defining reporting needs and they must have the ability to question
Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc
Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458

2. 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 07458

3. 1. 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.
Information asymmetry
Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc
Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458

4. 1. 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 07458

5. 2. Data Versus Information
Power & Competitive Advantage
Confidence is a prerequisite to action
The pinnacle of the pyramid is action because your ultimate goal should be to do something impactful with the newly acquired knowledge or wisdom
Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc
Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458

6. Process 1. 2. 3. 4. 5. 6. Data Collection (Input)
Data Cleaning & Standardizing (Quality Checks)
Analysis & Synthesis (Processing)
Reporting & Communicating (Output)
Interpretation & Application (Use)
Return on Investment (Measurement)
Know how to ask the right question, but keep in mind that not all questions have answers or ones that are easily obtainable. You must often make decisions with the best available data, however imperfect or incomplete, and you must be comfortable with this. (Avoid paralysis by analysis)
Correctly determine cause-and-effect relationships so that you can address the root cause of problems, not just their symptoms
Although depicted in a linear fashion, the process will likely be iterative, with each stage having a recursive relationship with the one before it.
Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc
Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458

7. 3. 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 07458

8. 4. 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 07458

9. 5. 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 07458

10. 6. 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 07458

11. 7. 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 07458

12. 8. 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 07458

13. Additional Resources
- online job posting -tech based companies
Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc
Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458