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03/01/2014 Competing on Knowledge: How the Power of Information Can Enable Great Things Chapter 10 Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved INTRODUCTION FIGURE 10-1 A Quick Test of Your Firm’s Informational Savviness Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 DEFINING BUSINESS INTELLIGENCE • 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 throughout the organization to those who need it, when and where they need it so that they may apply it in effective, value-creating ways Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved DEFINING BUSINESS INTELLIGENCE FIGURE 10-2 Key Goals for Business Intelligence Systems Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 DEFINING BUSINESS INTELLIGENCE FIGURE 10-3 A Proposed Textbook Definition for Business Intelligence Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved DATA VERSUS INFORMATION • The terms data and information are often used interchangeably, yet they are not the same – It is worth noting the distinction • There is actually a data hierarchy, which is illustrated in Figure 10-4 Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly FIGURE 10-4 Data Hierarchy (Source: Adapted from Professor Richard G Moore (Emeritus), Cornell University’s School of Hotel Administration.) Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 DATA VERSUS INFORMATION FIGURE 10-5 The Process of Refining and Making Sense of Data Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved INFORMATION AS A VALUED ASSET • Information is one of a hospitality firm’s most important, yet undervalued, assets due to its intangible value – It is highly coveted as its role is critical in every aspect of the hospitality industry, from guest services to marketing, decision making, administration, and control of the operation or organization Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 INFORMATION AS A VALUED ASSET • Information is a critical source of competitive advantage, but it is not just the information that contributes to one’s competitive advantage It is how quickly one can act on this information after finding meaning in it through the discovery of patterns, relationships, and insights—before the competition—to things that they cannot Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved INFORMATION OVERLOAD • Some of the challenges associated with running today’s operations are trying to wade through reams of reports, e-mails, financial statements, operating statistics, operational log books, and so on to figure out what’s important versus what’s not, to separate the important signals from all the noise Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 10 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 WORKING SMART • As managers’ time is spread across a wider array of issues and business operations, managers are expected to oversee multiple aspects of the business without necessarily having all of the specific expertise—and certainly not all of the time—required to focus on the many important details to ensure smooth business operations, the consistent delivery of exceptional guest services, and the desired performance levels – Clearly, managers must figure out how to work smart if they are to be effective and productive and how to pay close attention to the numbers while maintaining high visibility across departments Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 11 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved TOOLS THAT CAN HELP • There are two systems that run behind the scenes whose specific purpose is to help aggregate, analyze, interpret, and report data from multiple systems – These are the executive information system (EIS) and the decision support system (DSS) Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 12 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 THE BALANCED SCORECARD • Over time, EIS systems have evolved and now focus on providing a balanced scorecard (an organizational report card of key performance measures or dashboard of sorts) to top managers, a concept first popularized by Kaplan and Norton (1996) • The balanced scorecard may vary from organization to organization, but the underlying premise is the same: ascertaining the health of the business Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 13 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved THE BALANCED SCORECARD Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 14 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 THE BALANCED SCORECARD FIGURE 10-6 Sample Balanced Scorecard Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 15 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved THE IMPORTANCE OF INFRASTRUCTURE • Like a building’s foundation, the technology infrastructure is the base upon which all technology applications are built – Simply put, the technology infrastructure is everything (i.e., people, technology, business processes, training programs, and organizational culture) necessary to support the flow and processing of data and information Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 16 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved