Republic of the Philippines

CAVITE STATE UNIVERSITY

General Trias City Campus
General Trias City, Cavite
☏ (046) 509-4148
www.cvsu.edu.ph

BSHM23: APPLIED BUSINESS TOOLS

AND TECHNOLOGIES

MODULE TITLE : Applied Business Tools and Technologies

“ICT in HM Industry” ( Week 8 & 9 )

This module contains skills, knowledge and performance outcomes required to

understand and operate relevant IT systems that are used in the hotel and restaurant
industries. Topics covered include folio systems for front office ; POS systems from F&B
operations as well as other reservation, finance, housekeeping, marketing and public
relation.

MODULE CONTENT

1. Introduction to the development of IS

2. Commonly used Enterprise Application (Roles/ Benefits/ Trends/ Challenges)
1. ERP

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 2. CRM
3. SCM
4. BIS

SUMMARY OF LEARNING OUTCOMES

1. Understand the development process of good IS;
2. Comprehend the different business – tools provide its own purpose.
3. Enumerate different examples of each Enterprise Application

INTRODUCTION

The ever blooming hospitality industry is one of the major contributors to the economy of
developed and developing countries and with the introduction of IT in this sector it has
been more fortified than ever. With the IT (information & technology) sector undergoing
tremendous changes in the last 20 years, it is revolutionizing the world hospitality
industry with innovative technologies that have made landmark setting various
benchmarks and breakthroughs for future advancements in coming years with automation
and mechanization.

Chapter IV
ICT IN HM INDUSTRY

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Introduction to the development of IS

“Information systems (IS) is the study of complementary networks of hardware and

software that people and organizations use to collect, filter, process, create, and
distribute data.”
The main object of an information system is to provide information to its users.
Information systems vary according to the type of users who use the system.

MIS (Management Information System) Need for Information Systems

Managers make decisions. Decision-making generally takes a four-fold path:
● Understanding the need for decision or the opportunity,
● Preparing alternative course of actions,
● Evaluating all alternative course of actions,
● Deciding the right path for implementation.

Enterprise Applications:
● Enterprise applications are specifically designed for the sole purpose of
promoting the needs and objectives of the organizations.
● Enterprise applications provide business-oriented tools supporting electronic
commerce, enterprise communication and collaboration, and web-enabled
business processes both within a networked enterprise and with its customers
and business partners.

Services Provided by Enterprise Applications

Some of the services provided by an enterprise application includes −
● Online shopping, billing and payment processing

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 ● Interactive product catalogue
● Content management
● Customer relationship management
● Manufacturing and other business processes integration
● IT services management
● Enterprise resource management
● Human resource management
● Business intelligence management
● Business collaboration and security
● Form automation

Most Commonly Used Enterprise Applications

Multitude of applications comes under the definition of Enterprise Applications. In this section,
let us briefly cover the following applications −
● Management information system (MIS)
● Enterprise Resource Planning (ERP)
● Customer Relationship Management (CRM)
● Decision Support System (DSS)
● Knowledge Management Systems (KMS)
● Content Management System (CMS)
● Executive Support System (ESS)
● Business Intelligence System (BIS)
● Enterprise Application Integration (EAI)
● Business Continuity Planning (BCP)
● Supply Chain Management (SCM)

ENTERPRISE RESOURCE PLANNING (ERP)

● ERP is an integrated, real-time, cross-functional enterprise application, an
enterprise-wide transaction framework that supports all the internal business
processes of a company.
● It supports all core business processes such as sales order processing, inventory
management and control, production and distribution planning, and finance.

Why’s of ERP
ERP is very helpful in the following areas −
● Business integration and automated data update
● Linkage between all core business processes and easy flow of integration

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 ● Flexibility in business operations and more agility to the company
● Better analysis and planning capabilities
● Critical decision-making
● Competitive advantage
● Use of latest technologies

Features of ERP
● The following diagram illustrates the features of ERP –

ENTERPRISE RESOURCE PLANNING (ERP)

Advantages of ERP
● Reduction of lead time
● Reduction of cycle time
● Better customer satisfaction
● Increased flexibility, quality, and efficiency
● Improved information accuracy and decision making capability
● Onetime shipment
● Improved resource utilization
● Improve supplier performance
● Reduced quality costs
● Quick decision-making
● Forecasting and optimization
● Better transparency

ENTERPRISE RESOURCE PLANNING (ERP)

Disadvantages of ERP
● Expense and time in implementation
● Difficulty in integration with other system
● Risk of implementation failure
● Difficulty in implementation change
● Risk in using one vendor

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

● CRM is an enterprise application module that manages a company's interactions
with current and future customers by organizing and coordinating, sales and
marketing, and providing better customer services along with technical support.
● Atul Parvatiyar and Jagdish N. Sheth provide an excellent definition for customer
relationship management in their work titled - 'Customer Relationship
Management: Emerging Practice, Process, and Discipline' –

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 ● Customer Relationship Management is a comprehensive strategy and process of
acquiring, retaining, and partnering with selective customers to create superior
value for the company and the customer. It involves the integration of marketing,
sales, customer service, and the supply-chain functions of the organization to
achieve greater efficiencies and effectiveness in delivering customer value.

Why CRM?
● To keep track of all present and future customers.
● To identify and target the best customers.
● To let the customers know about the existing as well as the new products and
services.
● To provide real-time and personalized services based on the needs and habits of
the existing customers.
● To provide superior service and consistent customer experience.
● To implement a feedback system.

Scope of CRM

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CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Advantages of CRM
● Provides better customer service and increases customer revenues.
● Discovers new customers.
● Cross-sells and upsells products more effectively.
● Helps sales staff to close deals faster.
● Makes call centers more efficient.
● Simplifies marketing and sales processes.`

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

Disadvantages of CRM
● Sometimes record loss is a major problem.
● Overhead costs.
● Giving training to employees is an issue in small organizations.

SUPPLY CHAIN MANAGEMENT (SCM)

● Supply chain management is the systemic, strategic coordination of the
traditional business functions and tactics across these business functions - both
within a particular company and across businesses within the supply chain- all
coordinated to improve the long-term performance of the individual companies
and the supply chain as a whole.
● Design, planning, execution, control, and monitoring of supply chain activities
with the objective of creating net value, building a competitive infrastructure,
leveraging worldwide logistics, synchronizing supply with demand and measuring
performance globally.

SCM consists of -
● operations management
● logistics
● procurement
● information technology
● integrated business operations

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SCM Processes
● Customer Relationship Management
● Customer Service Management
● Demand Management
● Customer Order Fulfillment
● Manufacturing Flow Management
● Procurement Management

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 ● Product Development and Commercialization
● Returns Management

SUPPLY CHAIN MANAGEMENT (SCM)

Advantages of SCM
SCM have multi-dimensional advantages −
● To the suppliers −
● Help in giving clear-cut instruction
● Online data transfer reduce paper work
● Inventory Economy −
● Low cost of handling inventory
● Low cost of stock outage by deciding optimum size of replenishment
orders
● Achieve excellent logistical performance such as just in time
● Distribution Point −
● Satisfied distributor and whole seller ensure that the right products reach
the right place at right time
● Clear business processes subject to fewer errors
● Easy accounting of stock and cost of stock
● Channel Management −
● Reduce total number of transactions required to provide product
assortment
● Organization is logically capable of performing customization
requirements
● Financial management −
● Low cost
● Realistic analysis
● External customer −
● Conformance of product and services to their requirements
● Competitive prices
● Quality and reliability
● Delivery
● After sales services
● To employees and internal customers −
● Teamwork and cooperation
● Efficient structure and system
● Quality work
● Delivery
● Operational performance −
● It involves delivery speed and consistency

BUSINESS INTELLIGENCE SYSTEM (BIS)

The term 'Business Intelligence' has evolved from the decision support systems and
gained strength with the technology and applications like data warehouses, Executive
Information Systems and Online Analytical Processing (OLAP).

Characteristics of BIS
● It is created by procuring data and information for use in decision-making.
● It is a combination of skills, processes, technologies, applications and practices.
● It contains background data along with the reporting tools.
● It is a combination of a set of concepts and methods strengthened by fact-based
support systems.

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 ● It is an extension of the Executive Support System or Executive Information
System.
● It collects, integrates, stores, analyzes, and provides access to business
information
● It is an environment in which business users get reliable, secure, consistent,
comprehensible, easily manipulated and timely information.
● It provides business insights that lead to better, faster, more relevant decisions.

Benefits of BIS
● Improved Management Processes.
● Planning, controlling, measuring and/or applying changes that results in
increased revenues and reduced costs.
● Improved business operations.
● Fraud detection, order processing, purchasing that results in increased revenues
and reduced costs.
● Intelligent prediction of future.

Approaches of BIS
● Improving reporting and analytical capabilities
● Using scorecards and dashboards
● Enterprise Reporting
● On-line Analytical Processing (OLAP) Analysis
● Advanced and Predictive Analysis
● Alerts and Proactive Notification
● Automated generation of reports with user subscriptions and "alerts" to problems
and/or opportunities.

Capabilities of BIS
● Data Storage and Management −
● Data warehouse
● Ad hoc analysis
● Data quality
● Data mining
● Information Delivery
● Dashboard
● Collaboration /search
● Managed reporting
● Visualization
● Scorecard
● Query, Reporting and Analysis
● Ad hoc Analysis
● Production reporting
● OLAP analysis

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