Hospitality Information
Systems and
Technology
The Internet and Communication
Using IT for Competitive
Advantage
What is competitive advantage?
To do things better, cheaper, or faster
than anyone else (competitors)
IT’s Role: Past and Present
Yesterday:
Support/Utility
Managerial focus
Efficiency
Cost reduction
Labor savings
Productivity
Today & Tomorrow:
Strategic/Enabler
Managerial focus
Differentiation
New products/services
Core competences
Strategic positioning
Value adding
Using IT to Create CA: Examples
American Airlines – Sabre
FedEx – Powership software
Walmart – Supply chain mgmt systems
Hertz – driving direction systems
Dell – computer self ordering system
Using IT for Marketing
What is marketing?

A process of identifying human wants and
needs, and developing a plan to meet those
needs
The Four P’s of Marketing
P____________
P____________
P____________
P____________
Marketing Mix
Marketing communication tools
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Direct marketing
Advertising
Interactive media – Internet marketing
Sales
Promotions
Sponsorships
Direct Marketing
Communicate directly with your target
audience

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Direct mail
Telemarketing
Various broadcast or print media
Sometimes internet
Advertising
Non-personal communication
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Magazine ads
Newspaper ads
Billboards
Interactive Media
Two way communication
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Internet
CD’s
Digital TV
Different Internet Communication
Platforms
Applications of Internet Communications
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Intranets
B2B online and through VPN
B2C online
C2C and C2B online
The Purpose of Internet
Communication for Business
Sales and marketing
Human resources management
Manufacturing and operations
Customer service and support
Finance and accounting
Customer service
Customer Relationship Management (CRM)
Public relations and information distribution
Employer – employee communication
Internet, Intranets & Extranets
Internet

Accessible to anyone, attracts all types of users,
decentralized
Intranet

Private access determined by the owner; users are
employees authorized by the company; highly
specialized and organized
Extranet

Privately controlled access to the public; it’s users are
the company’s internal and external customers; the
information is designed to be shared among the users
Using an Intranet for
Communication
Reduce call center loads and e-mail
backlogs
Help with customer service issues
Create ongoing customer dialog
Improve customer satisfaction and loyalty
Cut employee training time and costs
Reduce service response time
Using an Extranet for
Communications
B2B & B2C
Private network that connects to the Internet using the
same protocols. Part of a company’s Intranet extended
to outside users
A way to securely share part of a business’s information
or operations with suppliers, vendors, partners,
customers or other businesses
Requires security & privacy
Usually has a firewall at the gateway server to protect
the resources of the private network from users on other
networks
Using the Internet for
Communication
Benefits
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Reducing call center loads and e-mail
backlogs
Empowers customers to find their own
answers and share information across the
organization
Reduces service response time
Cuts employee training time and costs
Creates ongoing customer dialogue
Improves customer satisfaction and loyalty
Internet Tools for Customer Service
E-mail
E-newsletters
E-mail mailing lists
Discussion forums and FAQ’s
Live online chat
Webcasting
Using E-mail
Can be accessed anywhere
Can personalize message to customers
Relatively inexpensive and convenient
Readership of e-mail can be tracked
Using E-Newsletters
A special type of e-mail in publication
quality

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Mostly subscription based and can help
ensure a degree of loyalty in readership
Sent on a predetermined schedule
Provides higher degree of consistency in terms of
content and format
Using E-mail Mailing Lists
People who share same interests and
subscribe voluntarily to the list

Form Virtual Communities
Can be two way

Allows subscribers to send e-mail messages
to the list
Marketing from the company
Users send their views to the company
Keeping Subscribers on the Emailing list
Only send valuable information and tips you
know the subscribers may want
Include a concise privacy statement to ensure
collecting personal information is a priority
Should allow customers to remove themselves,
and faithfully carry out the promise
Each message sent should include a brief
explanation of how the recipient signed up for
the list & contain instructions how to unsubscribe
Using Discussion Forums and
FAQ’s
Convenient way to collect customers opinions,
input concerns and comments in one central
place
Benefits
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Viewed 24/7
Answers are simple and easy to understand
Questions should be ones customers are concerned
with
Your own expectations
Submitted by costomers
Using Live On-line chat
Allows instant communication with
customers and online visitors
Gives customers instant feedback
Using Webcasting
Allows customer to view streaming videos
in a live Web based video conference

Streaming media
Real time – plays as it is transferred via the
Internet

Downloaded media
Transfers a file to the customers computer to be
played back later
However, Remember This…
It is not the technology itself that provides
the competitive advantage in a firm, but
rather, how that technology is used,
what it enables in the firm, and what
that technology can deliver in the future
that makes a competitive difference.