The Core Blocking for Running an Effective Business - Essay Example

The Core Blocking for Running an Effective Business Name Institution Course Date The Core Blocking for Running an Effective Business Introduction E-business is growing to become an essential initiative for organisations that impacts the operations of a business (Matos, Afsarmanesh and Rabelo, 2001). E-business can be defined as the process where an organisation carries out business operations over a computer-mediated network. E-business includes buying and selling and customer-, production-, marketing-, and management-focussed processes conducted by for-profit or non-profit organisations. It is founded upon the processing, transmission and sharing of digitised information and data such as text and visual images from one electronic device to another (Matos, Afsarmanesh and Rabelo, 2001). E-business entails e-commerce that encompass buying and selling of goods and services. E-business is considered a business activity that has the capabilities of transforming internal and external relationships creating value and exploiting market opportunities. Implementation of e-business in any organisations requires process redesign, new job descriptions, revised policies and organisational restructuring (Matos, Afsarmanesh and Rabelo, 2001). The ability of an organisation to embrace e-business is considered the key to enhancing productivity and success. If utilised effectively, e-business is able to develop effective relationships, share information, manage projects etc. This report will highlight the use of e-business by hospitality industry. It will also detail out how the hospitality industry can make effective use of the concepts of e-business to develop internal and external relationships, share information, manage projects and operate effectively. Hospitality Organisation and E-business Tourism and hospitality is the fastest growing industry in the world. E-business in hospitality industry entails e-commerce, serving customers, e-booking, e-distribution, business collaborations to name a few (Kumar, Dhiman and Dahiya, 2015). E-business has had huge impact on the tourism and hospitality industry (Lee, 2014). For instance, many customers are booking and reviewing hotel rooms online working with time-saving electronic systems. The industry uses e-business to communicate with suppliers and other intermediaries. Hospitality industry has a broad range of fields that include lodging, theme parks, cruise line, restaurants and other fields found within the tourism industry. The industry depends on the availability of both leisure time and disposable income. For instance, a hospitality field like a restaurant serving a global market consist of a number of departments and groups such as direct operations (kitchen workers, cleaners, and housekeepers), management, human resource, maintenance and marketing. Any hospitality company focus mostly on customer satisfaction thus exceptional service is very important as it leads to customer loyalty resulting to success of the company (Lee, 2014). In order to enable the company succeed, e-business should be incorporated in these operations. To start with, e-commerce and other internet platforms should be used effectively to promote and improve hotel businesses. How Hospitality Industry can Utilize Themes of E-business E-business in Developing Relationships E-business has played a major role in how the Hospitality industry has been able to deal with their customers effectively thus promoting their relationships with their customers (O’Connor, 2002). It has created a beneficial relationship with its customers which in turn, created satisfying sight for daily business transactions by their customers (Lee, 2014). The occurrence of e-business has transformed a number of aspects in the hospitality industry. It has enabled the industry to track and handle event via the internet. This has made the industry consistent in its interaction with other companies and also across all extents its customers interact with. E-business in the hospitality industry has enabled capturing, assimilation and distribution of data via the organization’s website and throughout the enterprise. This has given the hospitality industry a competitive advantage therefore giving it more management to customer relationship through the internet (Matos, Afsarmanesh and Rabelo, 2001). The industry has been able to use chats, mobiles, e-mails, frequently asked questions and also clienteles’ databases in order to gain feedback from their customers as well as their employees which in turn has enabled proper scrutiny of their complaints hence increasing the relationship between the customer and the industry and the employees and the industry. The use of customers’ databases has permitted them to gain access to various services in the hospitality industry from different locations and this is due to the implementation of e-business in the industry (Lee, 2014). In addition, e-business has also been beneficial in developing relationship by increasing customer loyalty. This has made it possible for the hospitality industry to communicate to its customers effectively hence aiding the industry to recognize the cost of captivating and holding individual customers. It has also helped the industry to improve the services and support they give to their customers. This has enabled the industry to attend to customer needs and not leaving behind the needs of their employees hence getting rid of customer’s frustration in their ‘hunt’ for help. Lastly, it has also promoted more effective strategies towards marketing (Matos, Afsarmanesh and Rabelo, 2001). This is by having information about their customers therefore creating more effective sales campaigns planned to attract the appropriate audience. E-business and Information Sharing The hospitality industry has used e-business to enable business-to-customer and business-to-business information sharing (Lee, 2014). This has been made possible by using social media applications for example online reviews and social tagging increasing the ability of consumers to produce and share information regarding the services that are offered by the hospitality industry. The effort by the consumers in producing such information is substantial which influences other consumers who are in need of the same services which aids them in their purchasing decisions. This comes about after the consumers have read the reviews and blogs of other consumers. Sharing information through e-business in the hospitality industry has enabled it to reduce any uncertainties in which consumers face when trying to access some services (Kumar, Dhiman and Dahiya, 2015). This information offered through e-business either by the industry or by the consumers relates to the products and the opinions of the users. With this information, the hospitality uses it to attend to the needs of the users in the most effective way. The industry has been keen on creating websites which enables consumers to gain further information and also gain some knowledge of how to make use of their information (Kumar, Dhiman and Dahiya, 2015). This allows the consumers to gain in-depth knowledge about the industry together with their relevant products and services and as well as gaining a bit of information from consumers who have already experienced the same. The use of e-business has also promoted active participation within the online community. The hospitality industry has opened up review pages where people in the community can communicate amongst each other about the kind of services offered. Active members are of significance since they spread their knowledge regarding the industry sparking a thread of conversations which in turn helps in marketing the industry’s services (Kumar, Dhiman and Dahiya, 2015). E-business in Managing Projects Management of projects involves the application of processes, procedures, knowledge, and experience in achieving organisational goals and objectives. A project is a unique and transient endeavour that is implemented by organisations to bring success and achieve goals. In the hospitality industry, projects may involve expansion of business, increase in sales, reduction of expenditure, and enhance customer service to name a few. E-business has been used to enhance project management in hospitality companies. One major concept of e-business used in the hospitality companies is E-booking (Lee, 2014). It is noted that E-booking in the hospitality companies has increased tremendously. Through booking online, customers spend less money compared to using travel agents or phone reservation systems. For effective e-booking, Hospitality Company should develop a website where bargain hunters will be able to book reservations online (Kumar, Dhiman and Dahiya, 2015). Also, the company should change its initial agreements with online travel agencies where the hotels made rooms available to the travel agencies at wholesale prices before padding them to the customers. Doing this will enable the hotels have full control of their rooms through online booking. This will also enable the hotels offer more competitive prices for their rooms on their websites. This has led to the companies increasing customer loyalty and market base globally. To enhance e-booking, hospitality companies should constantly add fresh content, update promotions and rich media to their websites (O’Connor, 2002). The website should also be marketed across all channels such as the desktop Website, social media and mobile phone sites. E-business has also improved customer service in the hospitality companies. When a customer has any question or complains regarding a particular hotel, the first line of support entails visiting an online customer centre with additional information (Lee, 2014). The purpose of an e-business customer service centre is to guide the customer to the appropriate information as fast and easily as possible. Establishment of a customer service standpoint has enhanced customer service in the hospitality industry as customers can perform tasks themselves if the online customer centre is well planned and designed. Use of e-business has led to cost effective, fast and easier management of projects. In addition, the available traditional capital budgeting methods are very hard to apply. E-business enables managers to adapt to non-traditional approach to measure the payoff of a project (Kumar, Dhiman and Dahiya, 2015). This is to mean that e-business has provided an easier way for the hospitality companies to measure the payoff of projects which determines whether a project will generate value or not. E-business for Effective Operations E-business has provided a means by which hospitality business processes can network internally from bookings, car rental, tours, food service etc. (Lee, 2014). For instance, when clients are making reservations, they do not have to sacrifice quality or breadth of choices. Instead, www.booking.com, the largest accommodation site, can provide them with choices and provide them with personalised booking experience (Chhabra, 2013). Via www.booking.com, customers can access more than 580,000 hotels and reservations around the world and the site can be accessed through the mobile phone aand computer (Chhabra, 2013). www.booking.com also personalizes real-time reservation search results on the basis of unique traveller profile which can be created by first users with accommodation preferences and other reservation details. Centralized internet based management systems in the companies will eradicate the need for costly on-site computer hardware and software. Use of the internet will also control and manage such routine processes as point of sale transactions and credit card authorisation. E-business also provide a means for restaurants to integrate external business operations into their supply chain such as upgrading reservation system to a unified surrounding for agents inside and outside the companies. E-business is able to provide the ability for HRI to take part in business to business E-commerce such as integration with external supplies and integration with external businesses (Lee, 2014). Hospitality industry purchasing has been considered a painful process- bureaucratic and ineffective. The operation of an internet-based hotel purchasing systems depends on its ability to yield substantial savings to a company through decreased product charges and maximised departmental efficiency. Enhanced functionality and efficiency is possible through back-office integration (Lee, 2014). This allows the suppliers to have a direct access to a company’s operation centre which often reduces ordering time and storage thereby reducing the transaction cost. E-business offers a wide range of suppliers where a hotel can choose the best possible fit. In addition, e-business makes it easy for the networking of suppliers and offer provision for hotels in value chain giving them an opportunity to replace functions carried out by a company. It also offers a platform where competitors can share core competencies thereby enhancing the worth of both organisations. A hospitality company engaging in e-business is able to have a worldwide presence (Lee, 2014). A company can collaborate with other companies and reach customers from all over the world. Therefore, worldwide presence is guaranteed if a hotel implements e-business in its operations. In addition, worldwide reach of market and suppliers is ensured at a minimal price when e-business is used. Moreover, any company should implement a competitive strategy in order to enhance competitive advantage. With lack of an effective strategy, it will be difficult for a hotel to earn profits and maintain competitive advantage. Use of e-business develops a competitive strategy for hospitality companies customizing its services to suit the requirements of specific customers. This will enable the companies attract a huge segment of market worldwide (Kumar, Dhiman and Dahiya, 2015). Conclusion The emergence of e-business has improved the way organisations carry out their business operations. It has changed the way hospitality industry operates in a positive manner. E-business plays a fundamental role in e-booking and online marketing in hospitality business. Such services are beneficial to the business and the customers as well. In addition, hospitality industry has engaged in e-business to develop relationships with its customers, suppliers and other businesses, it has simplified the sharing of information within and outside the business, has enabled the companies to work effectively and has led to effective management of projects. The ability of the hospitality industry to take advantage of e-business has helped it take advantage of all the themes presented by e-business. Therefore, the future for such industry with the use of the internet seems rather bright. References Chhabra, S 2013, ICT influences on human development, interaction, and collaboration, Hershey, PA: Information Science Reference. Kumar, S., Dhiman, M. & Dahiya, A 2015, International tourism and hospitality in the digital age, Hershey, PA., Business Science Reference. Lee, I 2014, Trends in e-business, e-services, and e-commerce : impact of technology on goods, services, and business transactions, Hershey, Business Science Reference. Matos, L., Afsarmanesh, H & Rabelo, R 2001, E-business and virtual enterprises : managing business-to-business cooperation, Boston, MA., Kluwer Academic Publishers. O‘Connor, P 2002, An empirical analysis of hotel chain online pricing strategies, Information Technology and Tourism, vol. 5, 2, p. 65-72. Read More