1. Technology Strategies for the Hospitality Industry© 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 E-Commerce Chapter 5

2. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Interview Jerry Reece Managing Director Travel and Transportation Practice Dimension Data What they do: Goal- Provide interaction method with customers across all available channels

3. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Interview (cont.) Technology consultants work alongside with the creative and strategic disciplines to architect solutions. Fragmented and intermediary nature of the hospitality industry made it a prime candidate for initiatives such as E- commerce.

4. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Interview (cont.) Keys to e-transformation success:  Plan  Understand client’s requirements  Design  Develop  Deploy  Conclude

5. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 1. Introduction E-commerce: doing business over the Internet Now, just another way of doing business!

6. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 2. Beginnings B2B vs. B2C Two very important technology trends:  Proliferation of wireless devices  XML (extensible markup language) Benefits to consumers  Lower prices  Higher availability Flexible pricing mechanisms  More frictionless, efficient, and worldwide market

7. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Overcoming Obstacles Geographic fragmentation High cost of information exchange  Ability to function as vertically or horizontally integrated virtual enterprises, while providing the benefits of economies of scale and specialization Excessive inventory and purchasing

8. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 3. Catalysts for Adaptation Increasing experience with Web technologies Consolidation of industry standards Simplification of application technologies Increasing stickiness in B2B and B2C solutions Cost savings and revenue opportunities

9. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 4. Other E-Commerce Business Models Advertising Auctioning E-markets

10. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 5. E-Commerce Technologies Servers  Web Server  High Traffic = Redundant Servers  Electronic Commerce Server Software Content Management and Performance  Content Management Software  Performance Monitoring Software Consumer and Business Tracking  Collaborative Filtering  Clickstream Tracking

11. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 6. E-Marketing Crawlers (Spiders) Directory (Human Powered) Paid Listings Meta-Tag: descriptions and Keywords Entire Web site scanned for relevant words and links to other web sites Paying

12. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 7. Security Major Risks  Spoofing  Unauthorized Action  Unauthorized Disclosure  Data Alteration

13. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 7. Security (cont.) Securing the Website  Server ID from a Certification Authority (CA) Message Security  Secure Sockets Layer (SSL) Authentication Message Privacy Message Integrity

14. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 8. Summary E-Commerce strategy and usage a “must have tool” Understand its relationship with technology, marketing, operations, customers, and security! Additional Resources: cyberatlas.internet.com www.techdirt.com www.internet.com