Effects of Technology on Business Operations - Coursework Example

Accommodation Management Name: Lecturer: Course: Date: Introduction The lodging industry operates within a highly dynamic business climate, and one of the most significant aspects it has to cope with is technological change (Nyheim & Connolly 2011). Firms are under pressure to cut costs and ensure greater customer satisfaction, making technology a necessity, for instance through embracing computerization and automation within their operational systems (Van der Wagen & Goonetilleke 2011). Technological change has significantly affected business operations and guest expectations within the lodging industry, making it necessary for firms to plan better if they are to stay competitive. This paper discusses the effects of technological change on the lodging industry and how firms should respond to the challenges posed. Effects of Technology on Business Operations Technological change has greatly affected the running of firms in the lodging industry. According to Uysal & Williams (2013), it has affected job quality. Management has had to pursue labour and time-saving technologies, and these have generally increased the pace of work. However, at times it has resulted in loss of jobs. For instance, lodging services go hand in hand with catering for instance. Technologies have enabled some food preparation tasks to disappear. For instance pre-cooked food has implied that agribusiness firms perform more food preparation procedures, leaving only the final tasks such as preparing, arranging and delivering of food to catering departments of the lodging facilities. Nyheim & Connolly (2011) observe that it has also led to elimination of some tasks. For instance, switchboards have been replaced by small control devices or computers. Technologies may also increase tasks to be done by front desk employees who have to oversee the system and rectify any problems. Technology has impacted on labour relations. According to Uysal & Williams (2013), it has generally promoted cost-cutting and quality control through greater labour flexibility. Computer software is often used in enhancing employee productivity. It can for instance be used in monitoring individual performance, automatically calculating optimum levels of performance and in so doing helping to set targets and goals. Performance is then evaluated against the targets. However, According to Hayes & Ninemeier (2009), the rapid changes arising usually lead to workers having to struggle to keep up. Their unions on their part are often not able to make effective assessments of the impact of such changes early enough and where they are better organized, management is obligated to negotiate with them, leading to commitments to either retain the employees or improve their skills. Features such as internet technologies have led to efficiencies and savings. According to Uysal & Williams (2013), they have led to greater productivity. The full utilization of communications technologies such as integration of lodge Performance Management Systems has enabled workers, right from those in housekeeping to the front desk to become more productive. Nyheim, P and Connolly (2011) indicate that the ability of technological systems to create greater access to more communication tools has also enhanced overall productivity as management of calendars is easier and alerts for voicemails are delivered instantly. Teams can also keep in touch through Instant Messaging services. Technological advancements have enabled firms to ‘go green’, which is an ideal highly valued by some guests. According to Nyheim & Connolly (2011), communications systems enable easier provision of information to customers, especially by means of phones that have large screens. The guests are able to use the phone system to learn more about services at the facility, learn more about the attractions in the locality and check menus. This has made it possible to get rid of the printed publications usually placed in all rooms to offer such information, hence indirectly contributing to conservation of forests. Such has in some cases ended up becoming a source of differentiation hence competitive advantage. Technological advancements have increased the role of computer-based platforms in determining corporate policy. According to Koutroumanis (2011), lodging facilities have had to recognize the significance of consumer-generated online content sites in determining their choice of residence. Online reputation and reviews contribute greatly to choice of establishment including the mention of its atmosphere, recommendations and price. Competitive management has had to review social networks and react appropriately to both negative and positive comments. Nyheim & Connolly (2011) add that the industry has also benefitted from better surveillance and control. The lodging business places high premium on security, hence security technologies such as bar-coded identification and video cameras are often taken up. The same technology also becomes important in regulation and prevention of information access by employees. This has increased surveillance and hence control over the workers. Effects of Technology on Guests Internet-based technologies have improved in house communications for customers. According to Van der Wagen & Goonetilleke (2011), guests can for instance be offered amenities such as Wireless Internet Access, and this is usually quite appealing to the more communications-savvy customers. In addition to these, facilities often offer conference calling, where communications solutions provide built-in facilities that enable several callers to hold a virtual meeting. This has helped in getting rid of the need for external services and offers a new, attractive amenity. By having cheaper connectivity, facilities enable guests to enjoy communication with people both within the establishment and outside. The proliferation of technologies has resulted in guests perceiving lodging facilities as needing to offer ‘just like home’ experiences. Nyheim & Connolly (2011) explain that this is because technology has become part of day to day life, and many institutions ensure that such facilities are there, hence others have to keep up or lose out in the competition. One of the most effective strategies opted for is leveraging technology to the level of home. Leisure and business travelers particularly place a lot of emphasis on High definition Video and WiFi as factors when choosing a place to stay. According to Uysal & Williams (2013), hotels no longer just seek to be different, but also have to know what the guests actually want. If one through omission does not provide what some guests consider a basic need, or it is provided by unreliable, they might be disappointed and move, resulting in a flight of revenue. Technology has altered the typical guest experience. According to Cobanoglu (2012), customer service has been improved as any request made by a guest can be responded to faster and more personally. There are many variables that would define what guests want. However, the key are whether the guest feels that they have got value for their price, whether service was generally timely, whether the interiors of rooms or other spaces were nice, whether the food served was as requested and well prepared and whether the staff was friendly. Stack (2015) suggests that a good experience is a good way of differentiating an establishment and encouraging guest loyalty and return visits. By use of communications systems to improve responsiveness to clients, loyalty is built in a cost-effective manner. However, technology has raised expectation levels as the younger and tech-savvy generation demands more control over their experience as guests. Embracing of technology has therefore had to satisfy dynamic customer requirements. With technological advancement, guests have increasingly viewed destination lodges as changeable options due to the variety accessible. According to Koutroumanis (2011), the many sources of information that virtually everyone can access have ensured the availability of a wide variety of firms to choose from, and customers can easily evaluate them by way of comments before making their eventual decision on which ones to try. Stack (2015) explains that as realize their importance, most customers expect a friendly welcome, yet there is the tendency of those receiving them appearing more interested in the payment and paperwork. Technology can help to reduce focus on documentation so that receptionists become better hosts. Technologies have resulted in a change in customer expectations from lodging facilities. Hayes & Ninemeier (2009) explain that in recent times, customers have ended up expecting more instant response from facility workers, as computer technology is assumed to have already facilitated faster delivery of everything. As a result, customers are likely to be more impatient, resulting in greater emotional and psychological pressure on workers that serve them. There has further been the dehumanization of the relationship that usually existed between guests and workers. According to Uysal & Williams (2013), quality has been redefined from seeking customer service to pursuing target quotas that are computer-determined. This has implied that things have to be more quickly done, even if not well. The result has been a compromising of job quality within the lodging industry. How Firms Should Respond In response to the effects of change, lodging facilities need to be more receptive to information technologies. According to Kapiki (2012), information is increasingly becoming a powerful tool in the industry. Effective adoption of information systems will help in developing concepts, targeting better locations, identification of possible franchisees, the location of new sources of labour, the tracking of employee performance and much more significantly tracking of customer satisfaction. Uysal & Williams (2013) add that better marketing can be done by using data mining tools. The strategy could include direct mail, advert campaigns, seasonal promotions, creation of personal advertisements, definition of markets and assisting in room reservations. Combined with other statistical tools, these can help in ensuring greater competitive advantage. Kapiki (2012) confirms that with greater competition, quality is now crucial in both the attraction and retention of guests. Guest satisfaction is consequently the main differentiating feature for lodging firms. Technology leads to the opportunity for more efficiency and improved customer service. Advanced communication tools and software enable greater operational efficiency while tools for decision support help in easing the managers’ jobs. Cobanoglu et al. (2011) explain that technology is critical determinant of guest satisfaction in the lodging industry, and is used by firms in promoting differentiation and boosting customer experiences. It is applied as a value-added amenity that promotes differentiation and ensures greater loyalty among guests. Firms will have to ensure they offer up to date recreation and more control to consumers during their stay. According to Uysal & Williams (2013), the traditional kinds of in-house entertainment are quickly losing popularity. For instance, on-demand TV or movies are not liked. A guest who comes with his iPhone will for instance be having enough entertainment that is superior to what is being offered. Focus therefore has to be on creating an efficient internet connectivity that can serve the high traffic rather than providing the entertainment itself. Stack (2015) adds that firms will need to utilize more Self-service Technologies (SSTs). For instance, it should be possible for the guest to choose a room and even check in before arriving. Technology can ensure personalization of the lodging experience and apart from helping cut labour costs, SSTs can assist in the redefinition of service employee roles. Taking up of technology should be accompanied by attitude change towards customer experience. Firms should be even keener on strategic and quality planning. Hayes & Ninemeier (2009) for instance suggests that to appropriately handle the need for technology in serving customer needs, the firm should try and reduce the complexity of systems, enhance system availability and accumulate the necessary data that will enable effective marketing and management of the facilities. Adoption of cloud computing is among the best ways of deriving maximum benefit from systems as it will help eliminate proprietary interfaces while boosting data security. In planning, the target groups of customers should be well defined, described and understood, followed by an extensive product definition to ensure that it effectively serves the target groups’ key needs and detailed objectives plus a business strategy that will explain how the successful product is going to be delivered and measured. It may for instance involve creating a sub brand to satisfy emerging demands. Customer Relationship Management should be emphasized. According to Van der Wagen & Goonetilleke (2011), it should be at the centre of understanding guest needs more and engaging them effectively before, during and after their stay at the facility. Technology will always have to be suited to the needs of the business. The firm will first offer a clear definition of its business objectives in relation to change of systems or new technology. All the major players will need to be mobilized to support the objectives and get to understand their responsibilities and roles in it. Realistic Return on Investment (ROI) and cost/benefit measures should be identified so as to ensure the functionality and characteristics of the new technologies are tailored to business needs. Success should then be measured basing on the indices adopted earlier. Conclusion Technological change is one major outcome of globalization. Such change has greatly affected the nature of work, the workplace and labour relations. It has also enhanced efficiency and gained a greater space in decision-making procedures. Communication for guests has been improved although their attitudes have also changed as they demand for more and quicker service in the wake of having an ever increasing choice of alternative establishments. To deal with the challenges, firms will need to embrace information technologies more. They will also have to improve their recreation facilities so that they only provide what is relevant, grant guests more autonomy over their experience, plan more strategically and enhance the role of Customer Relationship Management. Bibliography Cobanoglu, C, 2012, Guest Satisfaction Linked to Technology, Retrieved on 13 January 2015 from Cobanoglu, C, Berezina, K, Kasavana, M and Erdem, M, 2011, The Impact of Technology Amenities on Hotel Guest Overall Satisfaction, Journal of Quality Assurance in Hospitality & Tourism, Vol. 12 (4): pp. 272-288 Kapiki, S, 2012, Current and Future Trends in Tourism and Hospitality. The Case of Greece, International Journal of Economic Practices and Theories, Vol. 2 (1): pp.1-12    Hayes, D and Ninemeier, J, 2009, Human Resources Management in the Hospitality Industry, Hoboken: John Wiley & Sons Koutroumanis, D, 2011, Technology’s Effect on Hotels and Restaurants: Building a Strategic Competitive Advantage. Journal of Applied Business and Economics, Vol. 12(1): pp. 72-80 Nyheim, P and Connolly, D, 2011, Technology Strategies for the Hospitality Industry, London: Prentice Hall Stack, P, 2015, Embracing Technology to Enhance Customer Experience in the Hospitality Industry. Retrieved on 13 January 2015 from Uysal, M and Williams, J, 2013, Current Issues and Development in Hospitality and Tourism Satisfaction, New York: Routledge Van der Wagen, L and Goonetilleke, A, 2011, Hospitality Management, Strategy and Operations, Sydney: Pearson Higher Education AU, 2011 Read More