Lesson 2: e-Business Systems in Tourism

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Introduction to tourism systems
Impact of IT computing on tourism systems development
Internet services and Web generations
Key funcionalities of e-business systems
Customer Relationship Management - CRM
Enterprise Resource Planning - ERP
Supply Chain Management - SCM
eTourism
Cloud Computing
Cloud Tourism

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Lesson 2: e-Business Systems in Tourism

  1. 1. E-BUSINESS SYSTEMS IN TOURISM - Lesson 2 - Angelina Njeguš, PhD Associate Professor at Singidunum University Belgrade - Serbia, 2013
  2. 2. Prof. dr Angelina Njeguš Table of Contents  The Tourism System  Introduction to e-Business  E-Business Systems  E-Tourism  Cloud Tourism
  3. 3. Prof. dr Angelina Njeguš The Tourism System  What is behind all this? Attractions Accommodations Tourists And there is much more ...
  4. 4. Prof. dr Angelina Njeguš The Tourism System  The answer: Together: THE TOURISM SYSTEM
  5. 5. Prof. dr Angelina Njeguš What is a System?  In a system, all separate parts perform together to make it function
  6. 6. Prof. dr Angelina Njeguš What is a System?  Something that has parts: Components  Which are Interrelated  As a part of Society, the system receives and sends influences from and to the External Environment  Because components, interrelations, and society change over time – all these make a system: Dynamic
  7. 7. Prof. dr Angelina Njeguš Output Feedback -> Dynamic System Tourism as a System  Components: Tourists, Companies, Destinations  Interrelated: Supply and Demand  External Environment: Political, Economical, Social and Technological Factors ...  Dynamics: Nature of Tourism changes over the years Tourist Companies Destinations Input Demand Supply Tourism System Environment
  8. 8. Prof. dr Angelina Njeguš Dynamics of Tourism  Tourism in the recent past: OLD TOURISM  Travel industry was in charge  Attraction based  Old technologies  Tourism in the near future: NEW TOURISM  Consumer is in charge  Experience based  New technologies
  9. 9. Prof. dr Angelina Njeguš Evolution of IT Computing  Impact on Tourism 1980s 1990s 2000s Client-Server Computing Mainframe Computing Internet Computing E-Business Cloud Computing Service-Oriented Computing 2010s Centralized services Shared services Self-servicesServices: Software: Centralized Decentralized Distributed e-Tourism Cloud Tourism
  10. 10. Prof. dr Angelina Njeguš What is Internet?  Network  A connected system of objects or people  Computer network  A collection of computers and other related hardware devices connected together so users can share hardware, software, and data, and electronically communicate  Internet  Global network of computer networks that: ─ transmit data using TCP/IP protocol ─ interconnected with special gateways or routers ─ provide various services
  11. 11. Prof. dr Angelina Njeguš TCP/IP protocol  The most widely used communication protocol, that consists of two protocols:  Transmission Control Protocol (TCP) - responsible for delivery of data  Internet Protocol (IP) – provides addresses and routing information  Uses packet switching to transmit data over the Internet  Messages are separated into small units called packets and travel along the network separately
  12. 12. Prof. dr Angelina Njeguš How TCP/IP works Source: Nedorost, 2009
  13. 13. Prof. dr Angelina Njeguš Internet services  Internet services can be grouped into:  Basic services (e-mail, FTP, Telnet ...)  Public services (IM, WWW ...)  Search services (Yahoo, Google ...)  Security services (Pretty Good Privacy - PGP, Secure Shell – SSH ...)  System services (Ping, X-windows ...)
  14. 14. Prof. dr Angelina Njeguš Internet service: World Wide Web  World Wide Web (WWW, W3, or the Web) is a system of interlinked hypertext multimedia documents accessed via the web browser
  15. 15. Prof. dr Angelina Njeguš Web generations: Web 1.0  Web 1.0 (1991 - 2004) features:  Static websites  Read-only content  P2W (People to Web) Source: Hay, 2010
  16. 16. Prof. dr Angelina Njeguš Web generations: Web 2.0  Web 2.0 (2004 – 2009) features: – User-generated content – Read-write web – Collaboration – P2P (People to People)  Web 2.0 technologies: – Blogs – Wikis – Social networking sites – RSS feeds – Video-sharing sites ... Source: Hay, 2010
  17. 17. Prof. dr Angelina Njeguš Web generations: Web 3.0  Web 3.0 (2009 - ...) features:  Semantic Web (or the meaning of data)  Personalization  Intelligent search  W2W (Web to Web) Source: Hay, 2010
  18. 18. Prof. dr Angelina Njeguš Web generations
  19. 19. Prof. dr Angelina Njeguš Intranet  Private network of an organization based on Internet technology, and accessed over the Internet
  20. 20. Prof. dr Angelina Njeguš Extranet  Restricted computer network that allows controlled access to a company’s internal parts of information system to authorized outsiders such as customers, suppliers, partners etc.
  21. 21. Prof. dr Angelina Njeguš What is e-Business?  Conducting key business functions over electronic systems: – e-finance – e-HRM – e-procurement – e-marketing – e-manufacturing – e-management ...  Connects critical business systems directly to its customers, employees, partners, and suppliers using Internet technologies  An integrated system that should provide: – e-Commerce – e-Payment – e-Communication – e-Production – e-Distribution
  22. 22. Prof. dr Angelina Njeguš E-Business Adoption Proces Source: The McKenna Group Interviews and Analysis
  23. 23. Prof. dr Angelina Njeguš e-Commerce  e-Commerce is a subset of an overall e-business strategy  the sales aspect of e-business  e-Commerce involves conducting business transactions over electronic systems  It is usually associated with buying and selling over the Internet, or conducting any business transaction involving the transfer of ownership or rights to use goods or services [6]  The main e-commerce actors are represented as:  B – Business  C – Customer/Consumer/Citizen  G – Government  E – Employee
  24. 24. Prof. dr Angelina Njeguš E-Commerce Models  Depending on the parties involved in the transaction, e-commerce can be classified into some basic models:  Business-to-Business (B2B)  Business-to-Consumer (B2C)  Consumer-to-Consumer (C2C)  Business-to-Employee (B2E)  Government-to-Business (G2B)  Government-to-Citizen (G2C) ...
  25. 25. Prof. dr Angelina Njeguš E-Commerce Business Models  B2B Business Model  B2C Business Model
  26. 26. Prof. dr Angelina Njeguš Consumer-to-Consumer Model  The C2C model involves transaction between consumers  a consumer sells directly to another consumer  eBay is common example of online auction Web site that provides a consumer to advertise and sell their products online to another consumer
  27. 27. Prof. dr Angelina Njeguš E-Government Models  E-Government provides and improves online services, transactions and relationships with their employees internally, businesses, citizens, other government agencies 27
  28. 28. Prof. dr Angelina Njeguš Mobile commerce  Modern e-commerce typically uses mobile devices  Mobile commerce is delivery of e-commerce capabilities via wireless technology
  29. 29. Prof. dr Angelina Njeguš E-Payment 1The difference between e-money and e- finance is the fact that e-money funds are not kept in the bank's financial accounts  Electronic transfer of money from one account to another e-Payment E-Finance E-Banking Internet banking Telephone banking Other e- channels Other financial products or services Online brokering Internet insurance Other e- services E-Money1
  30. 30. Prof. dr Angelina Njeguš E-Communication  E-communication is electronic transmission of coded information between software units, that:  combine numerous media (text, graphics, sound, video ...) into a single message  are interactive – engages audiences in active two-way communication  involve many-to-many communication - geographically distributed groups communicate interactively and simultaneously  use World Wide Web as communication tool to enhance team work
  31. 31. Prof. dr Angelina Njeguš Some e-Communication Methods Method Description E-mail Method of transmitting communication across the Internet Phone Conf. Digital Phone System – allows conference call by participants Chat A method of real-time communication between a group Instant Messaging (IM) A method of real-time communication between two people Video Conf. Telecommunication technology that allows two way video conf.
  32. 32. Prof. dr Angelina Njeguš E-Business Systems
  33. 33. Prof. dr Angelina Njeguš What is CRM?  Customer Relationship Management (CRM): The measures an organization takes to identify, select, acquire, work with, and retain its customers CRM Technology Customer Process CRM is a business and marketing strategy that integrates technology, process and all business activities around the customer (Feinberg & Kadam, 2002)
  34. 34. Prof. dr Angelina Njeguš CRM parts ...a management strategy that enables an organization to become customer- focused and develop stronger relationships with its clientele. It helps piece together information about customers, sales, marketing effectiveness, responsiveness and market trends. (Soutiman Das Gupta, 2005)
  35. 35. Prof. dr Angelina Njeguš CRM features  Continuous dialog across all customer touch points  Consistent user experience across all contact points that the customer chooses  Personalization of products and services based on customer needs and expectations  Real-time access to all customer information across the enterprise
  36. 36. Prof. dr Angelina Njeguš CRM software  CRM software provides sales, marketing, and support teams with powerful tools to efficiently and effectively manage customer relationships [7]
  37. 37. Prof. dr Angelina Njeguš From Traditional to Social CRM  Traditional CRM  Social CRM
  38. 38. Prof. dr Angelina Njeguš CRM solution example
  39. 39. Prof. dr Angelina Njeguš
  40. 40. Prof. dr Angelina Njeguš What is ERP?  Enterprise Resource Planning (ERP) system is a packaged business software system that allows an organization to automate and integrate key business processes, share common data, and access information in a real- time environment
  41. 41. Prof. dr Angelina Njeguš ERP Modules  ERP solution is divided into several different software modules:  Financial Management  Human Capital Management  Sales and Marketing  Procurement  Production  Analytics ...
  42. 42. Prof. dr Angelina Njeguš SAP ERP Modules
  43. 43. Prof. dr Angelina Njeguš Microsoft ERP Modules
  44. 44. Prof. dr Angelina Njeguš
  45. 45. Prof. dr Angelina Njeguš What is SCM?  The modern supply network is complex, covering many suppliers, modes of transport and different countries.  Supply Chain Management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain
  46. 46. Prof. dr Angelina Njeguš Supply chain  The supply chain encompasses all of those activities associated with moving goods from the raw-materials stage through to the end user
  47. 47. Prof. dr Angelina Njeguš The Value Chain
  48. 48. Prof. dr Angelina Njeguš SCM System  Supply Chain Management (SCM) system includes tools or modules that are used to execute supply chain transactions, manage supplier relationships and control associated business processes
  49. 49. Prof. dr Angelina Njeguš E-Business Enterprise Model
  50. 50. Prof. dr Angelina Njeguš E-Tourism  E-Business transforms tourism industry  The term „e-Tourism“ refers to the use of e-business systems in tourism industry E-tourism is the digitalization of all processes and value chains in the tourism, travel, hospitality and catering industries that enable organizations to maximise their efficiency and effectiveness. (Buhalis, 2003)
  51. 51. Prof. dr Angelina Njeguš Cloud Tourism What is Cloud Computing? Cloud computing (often referred to as simply „the cloud“) is the delivery of on-demand computing resources (software, infrastructure, platforms and information) over the Internet and on a pay-for-use basis [8] without the need to install, store, purchase and maintain them locally on client computers
  52. 52. Prof. dr Angelina Njeguš Why Cloud?  Small companies can not afford a large amount of hardware nor the staff that goes along with it  Large companies may find the costs of maintaining and managing their own datacenters to be prohibitive, or perhaps they have made a significant investment only to discover that much of their resources idling away ...
  53. 53. Prof. dr Angelina Njeguš Cloud dilemma  Why not outsource to companies who specialize in running data centers and providing hardware/virtualization services and only pay for what you use?  It is the classic "buy vs. rent" scenario  Users no longer need to worry about managing, saving, and backing up their files  Applications can be accessed from any computer with an Internet connection, eliminating expensive licensing and hardware costs and allowing organization to pay for only what it needs
  54. 54. Prof. dr Angelina Njeguš Cloud Tourism Hotels & Resorts Restaurants and Foodservice Cruise Airline Destination Service Providers Travel Agencies SaaS Software as a Service PaaS Platform as a Service IaaS Infrastructure as a Service Micros Cloud POS Fidelio WebSuite Sabre Airline Solution Amadeus e-Ticket Database Development tools Middleware Storage Servers Network
  55. 55. Prof. dr Angelina Njeguš Cloud Tourism Cloud Tourism Business • Management • Marketing • Finance ... Tourism • Transport • Travel • Hospitality • Heritage ... Information Technologies as a Service • Hardware • Software • Telecomunications ... Cloud Tourism
  56. 56. Prof. dr Angelina Njeguš References 1. Swindoll, C. (2011) „Redefining Fundraising – Data“, Pursuant [Online]. Available at: http://www.pursuant.com/blog/tag/dikw-model/ (accessed: 1.11.2012) 2. Nedorost, T. (2009) „CGS1060 Introduction to Computer Science“, PowerPoint presentation [online] 3. Hay, D. (2010) „Web 3.0 demystified: An explanation in pictures“, Social Media. Available at: http://socialmedia.biz/2010/10/21/web-3-0- demystified-an-explanation-in-pictures/ (accessed: 30.11.2012) 4. Venema, M. (2011) „An Introduction to the Tourism System“, Education for Tourism, Edutour BV. 5. Njeguš, A. (2012) Information Systems in Tourism Industry, Singidunum University, Belgrade. 6. WikiBooks, „E-Commerce and e-Buisness – Concepts and Definitions“. Available at: http://en.wikibooks.org/wiki/E-Commerce_and_E- Business/Concepts_and_Definitions (accessed: 16.01.2013) 7. Sage CRM (2010) „Creating a customer focused business with CRM“. Available at: http://www.sagecrm.com/northamerica/what-is-crm/ (accessed: 17.01.2013) 8. IBM Smart Cloud, „Computing as a service over the Internet“, IBM. Available at: http://www.ibm.com/cloud-computing/us/en/what-is-cloud- computing.html (accessed: 18.01.2013)

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