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

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

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

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

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

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

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

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

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

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

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

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

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