03/01/2014 1 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved1 Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and D[.]
03/01/2014 If You Think You Don’t Need to Know About IT, Think Again! Chapter 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 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved Interview • • • • • • • Jason Rotter Digital Signage What is it? Why good or bad? Redundant? Other similar offerings His career choice Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 03/01/2014 INTRODUCTION 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 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved INTRODUCTION Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 03/01/2014 INTRODUCTION 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 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved INTRODUCTION Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 03/01/2014 INTRODUCTION 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 Why not just hire someone? • Sushi • Expensive 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 WELCOME TO THE WORLD OF IT! • IT is one of the greatest forces driving change in almost any industry, especially the hospitality industry—so get used to IT! – Unfortunately, human bandwidth, that is people’s ability to grasp IT and understand how to effectively use it and apply it in business, is one of the greatest barriers to a firm’s ability to successfully adopt IT and realize its many benefits 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 Also • IT moves fast • Technological demands of guests continue to rise • Competition • Labor 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 WELCOME TO THE WORLD OF IT! FIGURE 1-1 IT Pervasiveness Creates the Need for Boundary Spanners and IT-Savvy Individuals 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 MANAGING YOUR CAREER • To excel at your career, you need to have passion and enjoy what you – You also need to continue to develop yourself and your skills – Learning should be a lifelong journey and a regular part of your job • The hospitality industry has become so complex and continues to change at a rapid pace – Thus, you, too, need to change, adapt, and stay current with all aspects of the business—and especially with IT 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 MANAGING YOUR CAREER • At this point in your career, one of the best things you can is to conduct a selfassessment or SWOT (strengths, weaknesses, opportunities, and threats) analysis 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 DECISIONS, DECISIONS, DECISIONS • Within the hospitality industry, there are numerous avenues (roads) for exploring a career involving IT • However, at the macro level, careers can be defined as those involving – IT Managerial – IT Technical – Non-IT Managerial 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 DECISIONS, DECISIONS, DECISIONS FIGURE 1-2 Career Path Options 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 Summary • • • • • Business & IT! Strong technical skills foundation Become technologically savvy (knowledge) Understand service management Be socially and ethically responsible 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 03/01/2014 Using Information Technology to Drive Competitive Advantage Chapter 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 • Hospitality executives must continually look towards the strategic opportunities technology offers and use technology as a competitive method—or as a tool—to differentiate and create competitive advantage – Thriving in today’s competitive world is all about doing things better, faster, cheaper, and differently than anyone else 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 TECHNOLOGY TAKES CENTER STAGE • One of the most significant developments related to technology over the past few decades (and for the foreseeable future) is the concept of digital convergence—the coming together of numerous technologies to make great things happen 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 TECHNOLOGY TAKES CENTER STAGE FIGURE 2-1 The Great Convergence Gives Rise to the Digital Economy 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 FILLS • The table games supervisor accesses the computer in the pit – He requests a fill by completing an on-screen form • The computer automatically notes the date, time, pit, and requesting table games supervisor • The cashier cage receives the notification instantaneously – The cashier goes about filling the request while he or she waits for the security officer • The dispatch desk notifies the security officer to report to the cashier cage to complete a fill – The officer is also told which pit is requesting the fill 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 PLAYERS’ CLUBS • With the advent of electromechanical machines and then electronic gaming devices, the computerized capability allowed for the development of players’ clubs – A customer signs up for a casino’s players’ club either in the casino or online • The casino issues a plastic card similar to a credit card with a magnetic strip on the back – The front displays the player’s name and membership number 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 PLAYERS’ CLUBS FIGURE 11-3 Every Casino Has a Players’ Club to Encourage Players to Return and Spend More Money 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 RADIO FREQUENCY IDENTIFICATION • RFID is a chip which emits a radio frequency – It can be coded to identify the denomination, casino, and other information • By inserting an RFID chip into each chip of the casino, the casino can monitor the movement of each chip • Sensors at the table games will know when a chip is in play and whether it won or lost by reading its position – If it moves from the player’s area to the betting circle, it is in play 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 CUSTOMER RELATIONSHIP MANAGEMENT • As we discussed in Chapter 9, customer relationship management is familiarly referred to as CRM – Just as in hotels and restaurants, CRM is a popular topic for casinos today and arguably done to a higher degree • Casino companies invest a lot of resources into identifying customers and cultivating a relationship with them – The purpose is to establish loyalty with a customer so his or her preferred casino experience is the hosting casino 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 SURVEILLANCE • Surveillance is the department of the casino which watches all the other departments to ensure that procedures are followed – If everyone follows procedures correctly, the integrity of controls is maintained • Adequate controls are needed to prevent customers from stealing cash and cash equivalents and employees from embezzling the same 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 03/01/2014 SURVEILLANCE FIGURE 11-4 A PTZ or Pan, Tilt, Zoom Camera Can View More of the Casino Floor Than a Fixed Camera Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 17 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved SOFTWARE IN THE ENTERPRISE • The casino uses software like all businesses – Advances in back office reporting, utility monitoring software, communications capabilities, and so on, all add to the efficiency of the modern casino • Given the size of modern casinos, particularly in larger markets, computerdriven software is essential to operating these properties Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 18 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 SOFTWARE IN THE ENTERPRISE FIGURE 11-5 CityCenter in Las Vegas Is the Latest Example of a Casino Development Whose Size Requires an Extensive Use of Technology to Manage and Operate Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 19 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved SOFTWARE IN THE ENTERPRISE FIGURE 11-5 (Continued) Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 20 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 10 03/01/2014 SOFTWARE IN THE ENTERPRISE FIGURE 11-5 (Continued) Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 21 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 11 03/01/2014 Technology for the Meetings and Events Industry Chapter 12 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 • It wasn’t all that long ago when meetings and events were planned and executed on paper, or without the aid of technology – Now, it is important for a meeting/event planner to be comfortable using various technological advances to maximize a meeting or event’s return on investment (ROI) 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 AUDIO AND VISUAL EQUIPMENT • Meetings are typically held to communicate a message and/or to increase learning • Every meeting or event requires its attendees to see and hear the presentation – Audio – Visual – Virtual Meetings 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 DESKTOP AND ONLINE TOOLS • The planning process of meetings/events has certainly become more efficient with the increased use of technology • Computers, both desktop applications and online tools, help to organize and analyze the vast amount of information needed to make the best decisions for a meeting/event 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 DESKTOP AND ONLINE TOOLS • • • • High-Speed Internet Access Desktop Applications Portals and Online Searching Social Networking 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 COMMUNICATION DEVICES • Meeting/event managers use a wide variety of technology to communicate prior to a meeting/event, or on-site – VoIP – RFID – Audience Response Systems – PDA – Bluetooth 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 THE FUTURE • Corbin Ball, of Corbin Ball Associates, discusses some of the upcoming trends in meeting technology on his Web site • Many future innovations in meetings/events technology will center on Web 2.0 (the participatory Web) • In the future, meeting/event managers can use Wikis (interactive, collaborative Web pages) to track event management details – Wikis provide a common document usable by remote planning teams 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 Strategic Hospitality Technology Investment Chapter 13 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 REDUCING EXPENSES AND INCREASING PROFITS • The single most important thing to remember when you think about strategic investments in hospitality information technology (IT) is that these investments must generate a positive return on investment (ROI) just like any other strategic corporate purchase 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 REDUCING EXPENSES AND INCREASING PROFITS • Decreased Expenses • Increased Gross Profits 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 SYSTEM EXAMPLES • Yield management systems can generate higher gross margins on room revenues while restaurant menu management systems can generate higher gross margins on food items by substituting less costly ingredients or by using historical sales data to accomplish the following: – – – – – – Develop more effective pricing strategies Create a more effective menu mix Schedule employees more efficiently Improve functionality for offering and controlling promotions Process credit and gift cards more efficiently Improve functionality for cross-marketing other services to existing customers – Increase covers or average checks through the implementation of the new system 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 CASH FLOW AND COSTS • There are many formulas for calculating specific cash flow relative to different types of investments, and a good technology investment can and should be reduced to a financial investment equation before a purchase decision is made 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 SYSTEM SELECTION PROCESS Verify/develop the conceptual design for the enterprise Define functional and system requirements for the component application(s)/create organizational consensus on the requirements Compile a request for proposal (RFP) Develop a vendor short list Solicit proposals Assess proposals against criteria Visit reference sites Have vendors provide demonstrations Final selection 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 SYSTEM SELECTION PROCESS • VERIFY/DEVELOP THE CONCEPTUAL DESIGN FOR THE ENTERPRISE • DEFINE FUNCTIONAL AND SYSTEM REQUIREMENTS FOR THE COMPONENT APPLICATION(S) AND CREATE ORGANIZATIONAL CONSENSUS ON THE REQUIREMENTS • COMPILE A REQUEST FOR PROPOSAL (RFP) • DEVELOP A VENDOR SHORT LIST 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 SYSTEM SELECTION PROCESS FIGURE 13-1 Purchasing a New System Requires Proper Planning A Matrix Can Help Keep Information Organized 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 SYSTEM SELECTION PROCESS • SOLICIT PROPOSALS • ASSESS PROPOSALS AGAINST CRITERIA • VISIT REFERENCE SITES • HAVE VENDORS PROVIDE DEMONSTRATIONS • FINAL SELECTION 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 IMPLEMENTATION • A proper implementation procedure needs to be adopted whether it is hardware or software • There are ten steps Choose a project manager from your existing staff Set a schedule Establish a training system Meet with the vendor and exchange notes on steps through Stop and analyze Start implementation in one department Stop and analyze Move on to the next department Stop and analyze again 10.Rollout the system propertywide 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