This document outlines a strategic roadmap to help hotels select the most suitable ICT applications to improve decision making. The goal is to optimize value gain from ICT adoption. The researcher will investigate trending ICT applications used in hotels and their effectiveness on performance through a questionnaire. Based on the findings, a strategic roadmap will be proposed using a Business Model Canvas framework to help hotels determine which ICT applications best enhance value creation, labor productivity, cost reduction and sales.
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Strategic Roadmap for ICT Adoption in Hotels Using Business Model Canvas
1. ENTER 2016 PhD Workshop Slide Number 1
Proposing a strategic roadmap to improve effective
decision-making toward ICT adoption in hotels, using
Business Model Canvas
Mohsen Zamani
ULPGC University, Spain
mohsen.zamani@me.com
www.ulpgc.es
9. ENTER 2016 PhD Workshop Slide Number 9
2
Investigating effectiveness of trending ICT applications
on improving hotel performance
A
B
Identifying and listing trending ICT applications
catalogue in hotels
Perform a quantitative analysis by
administering questionnaires to investigate
effectiveness of each ICT application on
enhancing hotels performance.
• Value Creation
• Labor productivity
• Cost reduction
• Sales
10. ENTER 2016 PhD Workshop Slide Number 10
3
Proposing the strategic roadmap
Good morning, my name Is Mohsen Zamani.
I´m a PhD student at university of Las Palmas de Gran Canaria, here in Spain.
I´m really happy I´ve got a chance to present my dissertation here and I´m looking forward for your feedbacks to improve my study.
Information and communication technologies proved that can be beneficial for improving businesses.
They improve operational efficiency, increase productivity, elevate service quality, reduce environmental issues and use of material.
They can be new services their self or as foundation for introducing new services.
Many researchers tried to study the relationship between ICT adoption and business performance. Majority of the studies suggest that ICT adoption would reduce labor cost, reduce energy consumption, accelerate service delivery and many more.
If we put them all together in a big picture, it is clear that ICT adoption would reduce costs and create values which through them a company can increase its revenue.
Nowadays, in order to be competitive or remain competitive, it´s crucial to be innovative and constantly develop new services. ICT can be a great source of innovations and new services.
Hotels spent millions in ICT adoption every year. There are many reports that show how ICT successfully helped hotels to improve their business, but yet the awareness about how to achieve success with help of ICT is limited.
They are lots of cases that hotels invested in technologies but the results of those investment were not satisfying as it was expected. Their investment did not have a acceptable return.
WHAT WAS THE PROBLEM? It can not be technologies, because the worked very successfully in many other hotels.
Many studies suggested that the problem is not the ICT application, but the wrong strategies toward adopting them causing failure.
ICT adoption requires solid strategies.
Without strategies, hotels may not take full advantage of technologies.
Hotel need plans to use ICT applications to be more competitive and being competitive doesn´t mean to have the most or best ICT applications, but to invest on those that can address their actual needs.
For example, a hotel is not competitive in attracting customers, or is not competitive in operational productivity, or customers are not very satisfies with their services. That hotel should not blindly invest on a trending technology with a hope it may be effective for them, instead should first invest on ICT applications that known that can improve those areas.
ICT application have various capabilities and characteristics. They can more effective in create values than reducing costs, or do better in cost reduction rather than customer satisfaction and etc.
They can be good for one hotel but can be perfect for the other hotel.
I try to propose a roadmap that can help hoteliers to make better choices when they want invest on new ICT application.
the rapid growth in spread of new ICT applications and Hotel manager´s lack of adequate ICT knowledge.
Complexity of some ICT applications confuses the hoteliers.
They are not able to take advantage of full potential of acquired ICT application.
In fact, usually they select and invest on ICT applications without having a solid strategy. The spend their development budget on technologies that won´t address their needs.
Other possibilities could be that because of the rapid growth in spread of new ICT applications, hotel manager´s do not always have adequate ICT knowledge.
Or, the hotel was not able to take advantage of full potential of ICT application they invested on.
Or, Complexity of some ICT applications confuses the hotel personnel.
Not considering the hotel´s actual needs rather than investing on fancy technologies.
They are not able to take advantage of full potential of acquired ICT application.
In fact, usually they select and invest on ICT applications without having a solid strategy. The spend their development budget on technologies that won´t address their needs.
They regretted why they didn´t choose another technology instead or they wished they knew more about the that ICT application
This made many of them to hesitate for further investments on technologies.
It should be simple but comprehensive approach, It should be easy to understand, so hotel´s decision-makers with various educational background can understand it.
The methodology I choose is based on a innovative and very famous methodology and template for preparation and illustration of business strategies.
according to BMC methodology Osterwalder, the influences of new changes like introducing new ICT applications on firm´s value creation, cost reduction and sales performance should be analyzed.
It is Popular, comprehensive and easy-to-understand
In spite of its popularity in other industries and businesses, Its use in hospitality sector was very limited
In order to achieve goal of my study, I needed to divide my dissertation into three sections.
It is necessary to get a clear and detailed big picture of the hotel´s business model and Business Model Canvas methodology in order to create a foundation to explain the desired strategic roadmap.
Therefor, firstly, to understand a typical hotel´s business model and BMC methodology, an extensive literature reviews on business model canvas and hotel business have been undertaken.
As the result, I proposed a Business Model Canvas for hotel business.
Secondly, this study focuses on relationship between trending ICT applications (as independent variables) and the hotel performance indicators (as dependent variables). Similar to Ham et al. (2005), hotel characteristics such as geographic, service level, size, rating, affiliation and clientele as independent variable have been considered. In order to investigate the effectiveness of the ICT applications on hotel performance, from the review of academic and professional literature, a list of trending ICT applications for the hotels has been created. Then, in order to measure effectiveness of the selected ICT applications in improving hotel performance, a quantitative analysis through administering questionnaires has ben conducted. Questionnaires sent to X western European major cities four and five-star urban hotel managers involving Barcelona, Madrid, Milan, Rome, Berlin, Munich, Frankfurt, Brussels, Amsterdam, London and Paris. They include almost all four and five stars hotels in theses cities. The questionnaires designed to investigate the effectiveness of the trending ICT applications on the labour productivity, sales, costs and customer satisfaction.
Finally, by learning from the achieved results from previous sections, a strategic roadmap has been proposed. This strategic roadmap takes to the account the result of performed analysis, as well as the current performance of the hotels to determine suitable ICT applications for a specific hotel.
This study firstly designs a BMC for hotel business; secondly, examines the impact of ICT applications on improving the hotel performance
and finally, by using achieved results, proposes a roadmap. In following chapter I carried out an extensive literature reviews on BMC and hotel business
which as the result, I proposed a Business Model Canvas for hotel business.