Strategic Information Management in Hotels

This assignment delves into the crucial role of strategic information management within the hospitality industry, using Comfort Inn Hotel as a practical example. It highlights how organizations can leverage information to set goals, review progress, and adapt strategies for success. The text emphasizes the significance of data analysis in decision-making and customer relationship management, particularly for achieving long-term business growth.

Original Submitted on 31st August 2015 (1st
Submission)
Resubmission Task 4. (A.C 3.2) (2nd submission)
22nd November 2015
Subject: Strategic Information Management
Task 1:
Introduction:
Every organisation has to have some strategy. The entrepreneur has to plan ahead in
order for the organization to succeed within competitive market. In an organisation all
informations are very important to take decision, that’s why organisation has to have
very effective information management system. Information technology’s silent
feature is strategic information management. Every organisation has lots of
informations, strategic information management helps the organisation to categorise,
store, process of those information in a simple and cost-effective way.
1.1- Data and Information:
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Data is defined raw form of events which is unprocessed, unorganised form,
meaningful decision or idea can’t be taken from it. I work as a hotel manager we have
to collect lots of data from the guest to offer them services, to do so we need to
collect name, home address, credit card number, telephone number, length of stay,
price, signature, food list etc.
Information which is generated from raw form of data should be well organised, well
processed and meaningful. To take decision for an organisation we need correct,
timely information. After collecting all raw data from the guest we have to organise
them according to hotel needs. We use “guest manager” software, we have to fill up
all information manually in that software once we done we need only surname to find
out all about the guest like the date of arrival, price per night, food preference, credit
card details, address, contact details etc. Employee’s record and sales report are also
generated from raw form of data for the hotel.
In any organisation it is very important that all the relevant informations are available
for all the managers, staffs and its leaders, according to their position in the
organisation, it means right information for right person should be available. The
information must be accurate, timeliness, well organised and well structured. As a
manger of the hotel I have to know all the details of the gust, stock of the goods, sales
report, marketing strategy, employee’s record, employees availability etc. to take
decision but a receptionist does not need to know all of those, they just need to know
about the guest details who is coming on his/her shift and his/her shift pattern.
1.2- Data and information selection criteria:
Data must be collected according to the organisation needs; those data should be
accurate, valid and clear to take right decision. Irrelevant data will be misleading its
decision makers. While selecting or collecting data and information we must apply
some criteria for selection of the data such as completeness, validity, accuracy etc.
As a hotel guest he/she has to provide us valid credit or debit card details to process
the payment, it means we need accurate card numbers, valid expiry date of the card,
and CVC number etc. A not valid expiry date or not accurate card number could
mislead us, booking could be cancelled and guest could be misled.
A good quality of data could generate highly standard and valuable information. The
information must be clear and understandable by the organization employees so they
can perform according to organisation need. The organization has to present the
information to the employees in the right format and well-structured, should be
available on time.
The “Guest Manager” software is used by our hotel to generate complete information
about our guest, on arrival date our receptionists need surname of the guest once
they have that they could see a complete information about the gust, such as how
many nights he/she staying, what type room needed, how much paid, what type of
food they requested etc. all the informations are there for our staff just one click. It
means right and complete information is available for right person in the right time.
1.3- Impact of Management information system to an organization:
1.3. A. Increasing productivity:
Management information system provides knowledge to its employees to access all
the resources so they can perform. The productivity and creativity increased rapidly
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when the employees are well informed about the product or services. Management
information system helps every organisation to improve every way.
For our hotel we set up sessional price discount list, loyalty card etc. to our marketing
group so they can publish that through local media, Facebook etc. as much as
information we provide to our marketing group they can set up a creative marketing
plan which gives us more sales.
1.3. B. Understanding Information and Communication Technology as a tool for
accessing information:
For better understanding and accessing information within an organization
information and communication technology (ICT) tools are most common source. By
training and trainers employees must learn how to access and gather all the relevant
data through technology.
Our hotel has “Guest Manager” software with full of guest’s information, our staff has
to learn to operate it to get access all the information they need, better understand of
ICT lead to better service.
1.3. C. Market, Product and Customer information:
Using Market and customer information organization will have a better understanding
of customer needs. To improve sales, product and service quality, organization needs
to know its competitors, their products and customer choice.
Organisation can’t effort to avoid information management system in 21st century; in
the 21st century MIS has huge impact on organisation growth. Comfort Inn hotel is
well an established hotel in Victoria, London. The hotel has different marketing
strategy; one of them is online marketing through Facebook page, so people can
follow us on Facebook. Every employee of the hotel has to be connected to that page.
As a manager I have duty to monitor that. Through the Facebook wall we share all
ongoing programmes, live market, festival around London (flower show, live concert,
art show, Sunday marker, street market etc.). So people knows what is happening and
where in London right now, a very high volume of guests come through Facebook
marketing, not only Europe all over the world. The hotel has multinational employees,
such as Polish, Indian, Pakistani, and Romanian, They all connected up to 500 plus
friends through Facebook, It’s a huge market hotel has covered for free. We publish
current price after comparing other hotels. We reply guest needs through Facebook
wall, its effective and time consuming.
Task 2:
Every organisation needs innovative ideas. Information needs to be shared within
organisation’s employees so they can work as a team, they can put their own ideas,
new creation and solve critical issues. It helps the organisations overall efficiency in
terms of products, services etc.
2.1. a. - Privacy and Confidentiality:
Organisation has to be very careful and must be taken extra care about storing,
sharing and sourcing information; every organisation has to be complied with data
protection act. The information about organisation, customer or employees must not
be shared with third party without their permission.
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Comfort Inn hotel where I work as a part time manager has very strict privacy policy,
any kind of information we collect from the guest and employees must be kept in our
secure server which is protected by password, after guest’s check out and employee
terminate their contract, all information we destroy securely. We always inform the
guest that because of the security reason we have to provide access to the police if
needed.
2.1. b. - Fairly and lawful process for limited purpose:
Personal data must be process fairly and lawfully it means information has been
collect by the organisation should be used legitimate purpose such as justice, health
and safety reason. The purpose should be clear before informations are collected, if
information needs to be used multiple purpose person or organisation, must be
informed.
Our (comfort Inn hotel) purpose is very clear when we collects information from our
guest, guests know their credit or debit card will be charged the amount we have
agreed in advance, their address and name will be used, to identify the guest on
arrival. The hotel doesn’t use anybody’s information for any other purpose such as
marketing.
2.1. c- Relevant, process time and not excessive:
Personal data collected by organisation should be correct, relevant and not excessive
in relation to the purpose. Unnecessarily storing personal data (longer then is
required) for long time will be risky and misleading for the decision maker.
As a hotel manager of the Comfort Inn hotel I have to make sure that we don’t collect
any unnecessary data from the guest, we collect name of the guest, address, card
number and contact details, we don’t keep those data longer than it’s required, once
guest check out we destroy them securely.
2.1. d- Sharing information lawfully:
According to the data protection act, personal information should not be shared with
third-party unless it is authorised by the organisation or person. Person or
organisation must be informed the purpose of the collecting data. But some legitimate
cases it could be shared such as justice and health and safety issue.
To stay with Comfort Inn hotel every guest needs to sign and agree with hotel’s terms
and conditions, one of the conditions is that if any security issue arise, police will
have access all the information they have provided without any further notice.
I have identified two types of information is restricted within the company (Comfort
Inn Hotel) (a) information of the shareholders of Comfort Inn hotel is not available for
its managers, (b) receptionists have no right to access of balance sheet of the hotel,
and it’s restricted for them.
2.2. The information availability and accessibility:
A task must be done effectively, problem must be solved and innovative ideas must
be discussed within an organisation, to do so information has to be shared within the
organisation. Wrong or invalid information leads to wrong decision. Organisation
needs to know who needs what type of information it means right information for the
right person or department at right time. In an organisation marketing department
does not need to know about company’s balance sheet it’s an account department
job. Personal information should not be shared with the third-party without person’s
consent.
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Every employee has right to know what types of informations their employer is
holding, Comfort Inn hotel is happy to show the information to its employees upon
their request.
As a manager I can access (1) weekly sales report of the hotel so, (2) stock list, (3)
customer’s details (customer names, address, Credit or debit card details, contact
details etc.), (4) employees performance report, (5) employee’s record, (6) bills of the
hotel report etc. through company’s computer using personal username and
password.
By having access of weekly sales report I can take decision on daily rate, stock list
helps me to order goods we need for the guest, customer details helps me to find out
how many nights they are going to stay and how much they are paying, employment
performance report helps me to find out who is doing what Whose performance has
been improved who is underperforming, employee’s record helps me to find out their
current status (visa propose), how much money we are spending to run the hotel, bills
helps me to find out that.
2.3.
Different formats of information:
Information of any organisation can be found in a variety of formats such as
structure, unstructured, spatial, non-spatial, self-organise etc. It depends on decision
maker what types of information he/she needs, not all formats are useful, and some
format proves more useful than others.
2.3. a: Structured :
Only structured data can offer you a clear meaning and decision can be taken from it.
Mostly Comfort inn hotel collets structured data such as name, address, contact
details etc. through secure log in hotel manager can access them, and this is very
useful data for the hotel.
2.3. b: Unstructured:
Unstructured data are unorganised, a clear meaning or decision can’t be taken from it.
It often include multimedia contend, text, number. The comfort inn hotel collets
unstructured data such as email, audio, photos, files, video etc. those are available for
its managers through secure login details.
2.3. c: Spatial data: Spatial data somehow directly or indirectly related to a location of
the earth called spatial data, it can be mapped, Such as latitude.
2.3. d: Non spatial:
Non-Spatial data has no natural spatial qualities such as attributes.
Task 3:
3.1:
The trend and patterns of the market needs to be analysed to become a successful
organisation. The competition, economic situation, government legislation, change of
customer buying behaviour has to be scanned by the organisation for growth.
For Comfort Inn Hotel income statements analysis provide the clear trend and pattern
of the business is below-
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Year 2011 2012 2013 2014
( £ 000) (£ 000) ( £000) (£ 000)
Sales 200 300 400 300
Cost of Sales (60) (90) (120) (130)
Gross Profit 140 210 280 170
Variable Cost (20) (30) (40) (30)
Earning before Fixed Cost 120 180 240 140
Fixed Cost (30) (30) (30) (30)
Earnings Before Tax and Depreciation 90 150 210 110
Depreciation (100) (100) (100) (100)
Net Income -10 50 110 10
Table 1: Income statement of Comfort Inn Hotel
Source: Comfort Inn Hotel Accounts book, (2011, 2012, 2013, and 2014)
Table number 1 shows that the sales trend is growing or net income in positive mood.
Table shows huge margin of profit drops in 2014 compare to 2013 but still has some
profit. But the bad sign is increase cost of sales and decrease sales, because of that
gross profit affected in 2014. It might be company hired more employees or increase
their salaries and spend more on maintenances; reason behind these changes might
be sales increase in 2013.
Though Comfort Inn Hotel is making profit by selling their services but net income
percentage is going down. The hotel needs to increase sales and cost of sales must
be decreased by analysing the cost. The trend is hotel’s cost of sales is being
increased each year in compare to previous year.
The cost is increasing is not good for hotel’s long term business. The expenses
mostly increase due to salaries and wages of the hotel staffs. Hotel could apply zero
hour’s contract with its employees to save more money or decrease the cost.
3.3
For good quality information data needs to be analysing carefully. Effective decision
can be made if the managers of an organisation have timely, accurate, valid
informations. Two main sources of data and information of comfort inn hotel are
technology resources and people resources.
Technological resources for the hotel are software application, hardware,
telecommunication etc. Hotel use “brilliant software” to manage its guest, the
information about the guest needs to be put manually in “brilliant software” need
surname of a guest to find out his/her details.
People resource is most valuable resources of comfort inn hotel. They are only one
who could operate other resources such as computer and other technology. People
resources are staffs, customers and suppliers of comfort inn hotel.
Task.4:
3.2 :
Without effective decision by the managers organisation can’t grow. There are
various tools and techniques available for decision making process, which helps to
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achieve organisation’s strategic objectives; those are SWOT analysis, Porte’s five
forces, P.E.S.T analysis etc.
A: SWOT:
An organisation’s strengths, weakness, opportunities and threats need to be
accounted to be successful in the competitive markets, SWOT is simple and useful
framework for analyse of those factors. It helps to minimise the threats and show the
window for opportunities (success) of the organisation. As a manager of comfort Inn
hotel I found SWOT very useful to achieve hotel’s goals and objectives. Each part of
SWOT explains internal and external factors of the hotel which have great effect on
achieving hotel’s proposed goals and objectives.
Strength is resource of an organisation to achieve its objectives. Weakness is
limitation of an organisation where competitors can take advantages. An opportunity
helps organisation to find the future possible growth by offering new products or
services. Threat detects unfavourable situations of an organisation because of
political change, economical change, technological change etc.
SWOT analysis shows the strength, weakness, opportunity and threat of the comfort
inn hotel in a broad way
Evaluation of SWOT
Evaluation of SWOT as a decision making tool can be carried out in the following
manner. SWOT provides numerous advantages to the organization. It acts as a useful
source of information for strategic planning. In this way, this helps the hotel in supporting a
strategic decision. Moreover, SWOT also has another benefit of enabling an organization to
maximize its response to opportunities. In this way, it will help the hotel management to take
appropriate strategic decisions. Furthermore, the objectives of strategic planning can be set
with the help of it.
However, SWOT analysis also has certain limitations. This tool will not help Comfort
Inn hotel in prioritizing its issues. As a result of this, important strategic issues may be
unknowingly ignored by the management thus leading to greater problems in future.
Secondly, SWOT analysis does not offer alternative solutions to an organization. Hence, it
may not help the hotel in obtaining solutions to strategic issues.
B: Porte’s Five Forces:
According to M. Porter (2008) there are five important forces that help business to be
competitive within the market. To open a new branch or new business Porter’s five
force help analysis the current market.
Evaluation of Porter’s five forces analysis model
Porter’s five forces tool provides a number of advantages to Comfort Inn Hotel.
Firstly, it helps in analysing competition and determining appropriate strategy for the
organization. In this manner, it provides support to strategic decisions taken by the company.
Moreover, this tool is beneficial in determining the long term profitability for the hotel. This is
because it assists in exploring the environment with the help of which competitive
advantages can be gain by the chosen organization.
However, limitations of this tool are that it is suitable for simple market structures.
Hence, in complex market structures where there are a number of competitors, Porter’s
model would not be an appropriate tool to be used for supporting strategic decisions.
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Furthermore, it assumes that the market is competitive. However, the situation may actually
not be so. Therefore, the management of the hotel may take faulty strategic decisions due to
this tool.
C: P.E.S.T analysis:
PEST analysis helps to find the current situation of the market for an organisation. It
also helps to find for an organisation positive or negative changes within the current
environment which might affect the business overall. The effect of Political,
economic, social and technological analysis could give us bigger picture for an
organisation which is below
Evaluation of pestle analysis
Pestle Analysis proves to be a good tool with respect to supporting strategic
decisions. It assists in encouraging the development of strategy thinking within the business.
Moreover, this tool provides a simple and easy mechanism to the hotel to identify new
opportunities and exploit them. Furthermore, it enables the organization to carry out an
assessment of the implications of entering new markets. Therefore, with the help of this tool,
Comfort Inn Hotel will be assisted in taking decisions regarding novel strategies to be
adopted. However, a disadvantage of this tool is that it oversimplifies the information that
could be utilized for making decisions. Moreover, in order to be effective, it is necessary to
conduct this process regularly. This requires a lot of investment.
On comparing it can be said that Porter’s five forces tool is better as compared to
SWOT and Pestle analysis. This is because it assists the hotel in taking strategic decisions
by considering the aspects such as suppliers, competitors, buyers and new entrants.
Therefore, it helps in better strategic planning. With the help of this tool, better strategic
decisions can be undertaken. SWOT analysis does not provide alternative solutions to the
hotel. Similarly, pestle analysis would be a costly approach.
4.1:
Every organisation needs to know that company’s management information is
meeting the requirement of the company’s need, to do so they need to evaluate the
management information which is generated by company’s information systems. The
process needs to be done regular basis to find out the gap or improvement option.
Comfort Inn Hotel has implemented some methods to evaluate its management
information those are below-
Data Governance:
Data governance is an overall process to manage information. It focuses on managing
the security, availability, standardise, consistency of information collets by
organisation. Data governance is a framework of monitoring quality of data.
Comfort Inn Hotel is committed towards data governance. Hotel has set up a
dedicated team to work closely with the business. The team has been set up within
the hotel responsible for security of the data which collets hotel day by day operation.
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The procedures regularly reviewed by an independent team to ensure the approaches’
are working. Data governance helps the hotel to use timely and accurate data for
strategic decision to improve the business.
Management Information Value:
Decision needs to be taken effectively; organisation must provide the right
information for right person at the right time. Any delay or wrong information could
cause gap with the organisation. Understandable and essay access of information
helps managers to take effective decision, it customise the cost as well.
The comfort Inn Hotel knows its business value, because of that hotel managers get
easy access and right data for right time from its information system.
Goal Based Evaluation:
Goal based evaluation process explore about the target set by organisation. The
target or goal needs to be achieved within time limit. The goal should be clearly
explained within the organisation. Goal based evaluation approach should be
reviewed and monitor the progress if training needed should be given.
Target keeps active hotel’s employees. The comfort inn hotel set up the target for its
employees. Hotel provides appropriate training towards its staff to achieve them.
Task 5:
4.2:
There are multiple methods available for organisation to collets and develop data
collection such as survey, questioners, focus group, marketing campaigns etc.
 Survey:
The data organisation collets should be accurate, timely, and meaningful to take
appropriate decision. To maximise the response from the survey, should have taken
some effective action.
 Questioners:
Questionnaire helps organisation to find out the right direction of response. Any
improvement or action to be taken in its strategic decision organisation can find out
by effective questioners.
 Focus Group:
Focus group is special types of people who helps organisation by gathering data and
information.
 Marketing campaigns:
Marketing campaigns helps organisation to promote a service or products for an
organisation by creative and specific activities. It can be done through media, online
print etc.
To collets and develop the information, comfort inn hotel conduct survey, questioners
internally and externally, leafleting helps the hotel to promote its services as a part of
marketing campaigns.
4.3:
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The impact of information on strategic decision on an organization can be explained
by analyzing some steeps such as
Set new goals or objectives:
The information helps managers within an organization to develop or set objectives to
be achieved within time limit. It also helps to gather relevant resources to achieve
those objectives.
Review weather goals achieved:
It helps organization to evaluate whether the targeted goals achieved or not? If not or
any failure managers could utilize the resources and add more expertise or training to
archive them.
Review and implement new approaches or modify old one:
If the goal is not achieved the process can be revised or set up new approaches.
Sometime approaches are too complex to execute in that case new approaches can
be implemented or modify the previous one according to the needs of an
organization.
Right Information helps to take managers to take right decisions. The impact of
information of an organization can be done through audit.
The comfort inn hotel’s vision is creating value for customers to gain their trust. Hotel
needs new customers but loyal customers are more valuable. The hotel wants to
expand its business by creating value to do so the hotel needs to evaluate or critical
analysis of their approaches to achieve goals. Hotel can offer loyalty card for its most
valuable customers. Every time guest stays with the hotel hey will earn points
through loyalty cards those points will reduce their price of stay. Continue monitoring
or reviewing on loyalty card will provide the hotel valuable information to take
strategic decisions.
Conclusion:
Strategic Information management is very important of an organization. It helps the
organization run smoothly. For long term business it helps the organization to take
strategic decision effectively. Comfort inn hotel also not exceptional, it takes strategic
management very seriously.
References:
1. Dr.L.Ali.” Strategic Information Management, 2009.
2. Data protection Act 1998- “The Principles explined”
3. Rimskiii,V.(2011). The influence of the Internet on Active Social Involvement
and the formation and development of Identities. Russian Social Science
Review, 52-101.
4. Paridon,T. & S.M. ( 2009). Enterpreneurial Marketing: Customer shopping value
and Patronage behavior. Journal of Applied Management & Entrepreneurship,
14-28
5. Paridon, T. & Carraher, S.M. (2009). Entrepreneurial marketing: Customer
shopping value and patronage behavior. Journal of Applied Management &
Entrepreneurship, 14 (2), 3-28.
6. Comfort Inn Hotel Accounts book, (2011, 2012, 2013, and 2014)
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7. Comfort Inn Hotel “Guest Manger”, (2011, 2012, 2013, and 2014)
The End
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