Ms. Stehle

Revenue Management

Top 10 Benefits of a Business Intelligence Software Solution

By Tina Stehle, Senior Vice President & General Manager, Agilysys Hospitality Solutions Group

As the old saying goes, ‘You don’t know what you don’t know.’ Yet, hotel managers around the world make critical business decisions every day based on limited information. Some rely on reports produced by their IT departments; others on assumptions or ‘gut’ feeling.

The problem with IT reports is that the picture they portray is sometimes misleading. As a result, decisions based solely on spreadsheets aren’t always right. On the other hand, decisions based on hunches aren’t driven by data at all. Instead, they are grounded in intuition, which may or may not be correct. Over time, this kind of decision-making can lead to frustration, decreased productivity and, worse, revenue losses.

Hoteliers that want to prosper in today’s economic environment are increasingly turning to business intelligence applications that enable them to assess risks and make more informed decisions. Business intelligence solutions help you to gather, analyze and leverage a wide variety of data in order to gain a competitive edge and increase your visibility in a crowded market. Fortunately, business intelligence technology is not only more affordable today than it was in the past but also easier to implement.

There are dozens of benefits to incorporating a business intelligence solution into your daily business operations — from helping reduce costs to improving guest satisfaction. While many of these benefits are clearly measurable, some of the more intangible ones, such as improved decision making, can give your hotel a big advantage over its competitors. Following are the top 10 benefits of incorporating a business intelligence solution into your everyday operations.

1. Easy access to the data

For years, hotels have gathered transactional data from numerous software systems and compiled it in an effort to improve their business processes. However, as these rich data resources have grown, the task of managing, evaluating and processing the data has become more burdensome. A business intelligence solution can collect information from multiple and often disparate systems as well as from various geographic locations within an organization and consolidate it into a single and integrated portal, making it easy for managers to access all the data for comprehensive reporting, auditing and predictive analysis.

2. Equal access to the data

Most hoteliers realize that knowledge — or a lack of it — can mean the difference between success and failure. Yet, in many hotels, IT staff are the only people who are privy to all the data. With a enterprise-wide business intelligence solution, key information, such as financial data and performance metrics, is available to every manager. The data is gathered electronically and delivered in an easy-to-understand format, allowing even the most non-technical users to understand the business and determine the factors that drive day-to-day activity.

3. More accurate information

A business intelligence solution can remove the multitude of spreadsheets — many of which contain errors, omissions or duplicate information — from the organization. Reports are created automatically and are accurate and up-to-date.

4. Faster response times

With business intelligence, hotel managers can view reports on a daily basis instead of waiting until the end of month, enabling them to respond quickly to even the most unpredictable situations. The ability to drill down into operating data and customize report views gives managers a clearer understanding of what's happening in the business. Armed with this knowledge, they can immediately make adjustments that affect performance rather than waiting until it is too late.

5. Improved decision making

When analytical data is readily available and understandable, managers can make well-informed and insightful business decisions quickly and efficiently. Moreover, routine problems are less likely to be escalated up the management hierarchy. When managers have access to reports, charts, graphs and analysis, they also feel empowered to take proactive measures to improve performance and ensure that profit expectations are met.

6. Identification of problem areas

Business intelligence can help uncover problem areas in the hotel that might otherwise go unchecked, such as fraud or poor performance, more easily. For example, if your restaurant manager notices an increased depletion of a particular inventory item, yet can't find matching sales of that item, a business intelligence solution can enable him to review purchases versus revenue and make necessary adjustments within the organization.

7. More effective inventory monitoring

Hotels can use business intelligence to evaluate suppliers, track spending, measure performance, analyze procurement data, conduct in-depth financial analysis and develop strategies to reduce spending. Procurement staff can also use a business intelligence solution to ensure compliance and reduce 'maverick buying'. With detailed reports and dashboards, staff has a clear picture of spending patterns and trends and can make more informed decisions that conserve resources and increase profitability.

8. Enhanced negotiations

When it comes to negotiating with suppliers, an accurate grasp of facts and figures is invaluable. A business intelligence solution can provide the supplier performance data you need to maintain a strong position — such as on-time delivery trends, percentage of rejects and price changes. As a result, you can discuss all aspects of the contract and may be able to negotiate more favorable terms.

9. Improved marketing analysis

Hospitality venues can now take advantage of the same kind of business intelligence used by such consumer-centric retail giants as Amazon, Costco and Wal-Mart to make up-to-the-minute marketing decisions and improve market effectiveness. With a business intelligence solution, you can determine the success rate of advertisements, direct mail campaigns and e-mail promotions. You can then tailor your marketing efforts to specific guests in an effort to gain an edge over the competition.

10. An enhanced guest experience

Integrating business intelligence into your everyday operations can help you create a more memorable guest experience and build long-term guest relationships. With a business intelligence solution, you can create detailed guest profiles that include history, itineraries, interests and preferences. Armed with this information, you can anticipate guest needs and offer more personalized service, which boosts satisfaction and engenders loyalty.

In today’s economic environment, where competition is fierce and guests increasingly expect outstanding and personalized service, it takes more than spreadsheets and hunches to keep a property operating at maximum efficiency. You must work harder than ever to protect market share and identify new revenue opportunities. A business intelligence solution can help ensure your hotel's success — both now and in the future — by leveraging the wealth of information your hotel accumulates into meaningful data that can help you survive and prosper, even in a difficult economy.

Tina Stehle is senior vice president & general manager of Agilysys Hospitality Solutions Group. Agilysys is a leading provider of innovative IT solutions to corporate and public-sector customers, with special expertise in select markets, including retail and hospitality. The company uses technology — including hardware, software and services — to help customers resolve their most complicated IT needs. Ms. Stehle joined Agilysys in 2004 through its acquisition of Inter-American Data, Inc. (IAD), where she served as vice president of software services. Ms. Stehle can be contacted at 800-262-3600 or tina.stehle@agilysys.com Extended Bio...

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