Why is technology important in

business?
Why is technology important in
business?
 Technology has important effects on business
operations. No matter the size of your enterprise,
technology has both tangible and intangible
benefits that will help you make money and
produce the results your customers demand.
Some reasons…

 Communication with customers

 First and foremost, technology affects a firm’s ability to
communicate with customers. In today’s busy business
environment, it is necessary for employees to interact with
clients quickly and clearly.
Some reasons…

Efficiency of Operations
 Technology also helps a business understand its cash
flow needs and preserve precious resources such as
time and physical space.
 With proper technology in place, executives can
save time and money by holding meetings over the
Internet instead of at corporate headquarters.
Some reasons…

 Business culture and class relations

 Technology creates a team dynamic within a
business because employees at different locations
have better interactions.
 If factory managers can communicate with
shipment coordinators at a different location,
tensions and distrust are less likely to evolve. Cliques
and social tensions can become a nightmare for a
business; technology often helps workers put their
different backgrounds aside.
Some reasons…

 Security
 Most businesses of the modern era are subject to
security threats and vandalism.
 Technology can be used to protect financial data,
confidential executive decisions and other
proprietary information that leads to competitive
advantages.
Some reasons…

 Research capacity
 A business that has the technological
capacity to research new opportunities will
stay a step ahead of its competition.
Lesson 1. BUSINESS TOOL
Abusiness tool can be considered as any
asset that helps or assists the organization
to achieve its stated aims or objectives.
There are various types of tools that may be
used in a business varying in size,
complexity, danger, and importance to the
business operation.
Modern managers must to be able to
manage these tools to ensure that they
are available when required, are in a
usable and operating condition and that
the user is sufficiently trained to use the
device efficiently.
Examples of Common Business
Tools
 Each of these items represents an
investment by the business and can
be considered important to the
business. As they are portable they
can be misplaced, require usage
monitoring, training, and
maintenance.
Digital Cameras
Mobile Telephones
Scanners
Photocopiers
Laser pens
KNOWLEDGE
Facsimile
Software
Email
The business web site.
Lesson 2. Use business tools
efficiently and effectively
a. The business website
b. software
c. Social networking
d. Land lines
e. E-mails
Many modern business tools have wide
applications in a business where they
can assist the business in meeting its
objectives.

Modern business tools provide new

opportunities for an employee to waste
or misuse business resources.
Is the employee allowed to use the tool
for personal use?
Traditionally, employees have not been allowed
to frequent an establishment where they work.
The same restriction can be applied to business
tools so they cannot be used for non-business
purposes. Employees are not allowed to borrow
a camera to take a few photographs at home.
Internet presents a wide range of
opportunities to misuse and abuse
resources. Precious business time can
be squandered while surfing the
internet on unrelated business
activities.
a. The Business
Web Site
This business tool is unique and must
be considered as a separate entity.

Whereas the other tools have

common challenges and issues
regarding use, access, and cost, the
website of the business can do
unpresented damage to a business
and requires special care and control
to ensure the objectives of the
business are achieved.
Software
Software is also a unique item.

Where software is distributed on portable media it will

be installed on the various computers and then stored
and it may never be needed again.

It should be required the hardware – the disk or similar –

must be accessible as well as the associated passwords
or install keys.
Social Networking
There have been several cases where
people have been fired because of what
they wrote on Facebook and the impact
the comments would have on the business.
Staff need to be aware of the
consequences of publishing material on
the social sites.
Landline Telephones
Landline telephones can be restricted to local calls if
necessary and they usually have unlimited access. Some
businesses may not approve personal calls, but in most the
cost and number of local calls make it inefficient to
monitor.
Large businesses are able to develop specialists: specialists
to take reservations, and other areas. Small businesses
often require cross-skilling where anyone in the business will
need to be able to take a reservation. The process is the
same; identify the skill set and ensure that all can perform
the required tasks for the business.
 Lesson 3.
TECHNOLOGIES IN THE
HOSPITALITY INDUSTRY
 Hospitality
Industry is one of the driving forces
of the global economy. The widespread
adoption of new technologies in this industry
over recent years has fundamentally reshaped
the way in which services are provided and
received.
The Impact of Technological
Innovations in Hospitality Service
Еvеry industry is undеrgоing а tеchnоlоgy-drivеn trаnsfоrmаtiоn, аnd
thе hоspitаlity industry is nо diffеrеnt.

Оnlinе bооking systеms, custоmеr rеlаtiоnship mаnаgеmеnt, sоciаl

mеdiа аnd smаrtphоnеs аrе trаnsfоrming thе hоspitаlity industry аnd
еnаbling а nеw lеvеl of custоmеr sеrvicе.

The efficiency and purposefulness of implementing each new

technology depends on the decision of end users (employees and
clients) to accept and use it.

Dеspitе thе mаny chаngеs thаt аrе bеing brоught оn by thеsе

tеchnоlоgicаl innоvаtiоns, thеy аrе thеrе tо еnhаncе, nоt tо rеplаcе,
thе cоrе оffеrings оf а hоspitаlity businеss.
 Technological innovations are becoming more and more
widely used in the hotel industry.
 It is evident that information technology investments will
increase hotels’ productivity, reduce their costs, and at
the same time add value to the services and products
offered to their customers (Bilgihan et al., 2011)
 The service process is transformed in response to changes
in consumer behavior, their new requirements and needs
of modern technology before, during and after the hotel
stay.
 Adaptation of technological innovation to the specifics
of hotel services is a source of opportunities and
challenges both for hotel managers and employees as
well as for customers themselves.
Barriers and difficulties might hinder successful implementation of
information technology in a hotel organization.

EXAMPLE:
employees’ willingness,
ability and managers’ support,
customers’ attitude and expectation
The cost of innovation,
resistance from owners,
resistance to change,
training issues,
pace of advances in new technology,
time and budget constraints
Innovation in tourism is a multifaceted
phenomenon, particularly in terms of
information and communication
technology and the internet. (Aldebert
et al., 2010)
Role of technologies for the hospitality
service sector
The online era has played significant role in the
change of tourists consumer behavior.

A “new type” of traveler is emerging. He is

interested at the same time in global and regional
products in order to satisfy different needs such as
personal socialization, thrilling emotional
experiences, entertainment, specific hobbies and
interests (Fyall, 2005)

In order to achieve his goal he is using more and

more the technical tools. They help him to travel
and spend his vacations more efficiently.
Technologies play important part not only for the
customers, but for the owners of hotels as well.

They tend to use them for two main reasons:

1. Through technologies the managers are obtaining

detailed data concerning their consumer behavior

2. They provide a better and more personalized

accommodation and services for their clients.
The volume of data available to companies and its
accessibility will grow rapidly with advances in smart
technology on smart phones, wearables and the Internet of
Things. Combined with artificial intelligence, travel brands will
be able to deliver greater personalization to consumers, at
greater speed (Euromonitor, 2016)

Hotel managers can obtain customer data through the main

internet reservation platforms, social media sites, personal sites.

They can also use technologies such as tablets, smart phones

and other devices in order to obtain information from the
tourists buy asking them to fill in questionnaires on the spot.
 Hotelcompanies are not only focusing on improving
their online availability and marketing strategies to
respond to changing traveler demands.

 An increasing number of hotels are implementing

technological innovations and mobile applications,
which have the potential to enhance the guest
experience when staying in the hotel, these tools can
be introduced in various forms and places in the
hotel.
 Technologies in tourism can include a large variety of
personalized services.

 In recent years private rentals like Airbnb and HomeAway are

getting more and more popular alternatives to classical
hotels, especially preferred by the millennials. Therefore they
pose a threat for the hotel companies

 A good way to deal with this problem and attract more

tourists is to offer the latest technologies in the
accommodation areas. Implementing these tools is still
difficult and sometimes expensive task, therefore big hotel
chains are more likely to use them in their hotel services.
The implementation of new innovations and technologies
started with keyless entry in 2014 and has progressed to
wearables (apps for smart watches), robots and virtual
reality. Many hoteliers rely on internet and mobile
technologies, but according to Euromonitor (2015) the
newest trend is room alterations through different means
like:
Digital mirrors
Custom coffee machines which can
make coffee at a specific time
Smart floor tiles which can
change colors
remote control for services such as blinds,
alarm clocks, tv, etc.
The role that technologies play in tourism services is constantly
changing and evolving.

Customers are getting more and more used to prepare and spend
their vacations with the help of new technologies.

Hotel managers are also implementing them in various creative ways

in order to attract more tourists, gather data and improve their
services.

Technologies, if used right, can make travel even more comfortable

and unique.
Impact of the technology on the
guest experience and company
efficiencies
Hotel guests think that it is “very or extremely important” for hotels to continue
investing in technology to enhance the guest experience”.

Innovation will enable hotel operators to stand out from the competition, fulfill
every guest’s expectation and attract new customers.

A positive experience will not only impact a guest’s stay but it will also influence
their behavior and online reviews after their trip.

Managers should try to make known any improvement in the areas of sales,
guest satisfaction, service quality, and productivity as a result of implementing
new technology
The following examples show the impact of the
technology on the guest experience and company
efficiencies:
1. Technology to improve efficiencies.
2. Online Booking
 3. Automating check-in and check-out
In an effort to improve
efficiencies, hotels are
looking to automate the
check-in (and check-out)
process. Mobile hotel
check-in and check-outs
may well become the
norm soon, enabling staff
to focus more on guest
experiences.
 4. Wearable technology
 With the rise of IoT (internet of things),
guests have greater access to
technology. In-room automation is an
easy way to make the guest stay more
comfortable when the need for human
interaction isn’t expected or required.
Tasks such as turning off the lights or
alerting the staff to hold off on cleaning
the room are areas where guests want
simple and immediate results without
having to interact with another human.
5. Smart TV
 Once inside the hotel bedroom,
guests are already able to access
in-destination activity choices
thanks to hotel Smart TV. Hotels
can collaborate with local
businesses to provide a guide to
the best dining locations, shows,
and other popular places for the
guests to explore outside of the
property.
6. The robotics trend in hotels.
 World’s First Robot-Staffed Hotels

 The HENN NA HOTEL

opened in April 2018
 Activity #1
 1. Try to make a
booking in two
different hotel booking
engine for 1 night that
is good for 2 pax.
 2. Compare the two
hotel booking engines
based on your
booking experience.
Lesson 4. Effects of Applying
Technological Innovations
in Hospitality Service
 In order to improve hospitality service and customer satisfaction
there are used specialized information and communication systems
which help to increase the efficiency of technological operations.
 Such systems make
a. easier management,
b. the flow of documentation and preparing hotel reports.
c. Productivity is increased
d. problems are detected and analyzed.
 Applying information systems in hotels stimulates visits of regular
customers, facilitates managerial decisions, creates and maintains
strategic competitive advantage (Koutroumanis, 2011).
Technological innovations whose software products are designed to improve
service in hotels.
Technologies are used to make and keep a record of guest history.
Expert systems evaluate clients’ needs and desires and generate data on:
a. enquiries;
b. types and numbers of rooms;
c. length and time of stay;
d. special requirements;
e. staff and others.

Through keeping such information in a guest’s personal record the expert system
can foresee requests, generate a considerable share of repetitive visits and
increase recommendations from former clients.
Specialized systems are adapted and used for improving and speeding the
concierge service at the hotel. Such systems provide information 24 hours/7 days.
With the pace of today's technological change, we tend to think of our age
as the most innovative ever. Despite the indisputable advantages of
technological innovations, the human factor is a key one for clients and
also irreplaceable in the process of hospitality service.

“Balancing Technology with the Human Touch in Hospitality”

 End of Lesson 4.