Manage Continuous Organizational Improvement Athe Marketing Essay

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Hilton Hotel is planning to introduce a new customer relationship management information system OnQ, which is supposed to enhance the services provided by the hotel management to their customers. The risk of introducing this system is that the hotel management need to guard against is hitting a hotel staff a hotel staff with so much information, or doing it in such a disruptive way, that it might prevent employees from interacting with guests and making judgments.

This case is on real world examples "Hilton Hotels Corporation: Data Driven Hospitality" by Tony Kontzer (InformationWeek Aug 2, 2004 12:02 AM) where hotel management took a big step to provide the best service in the world to their loyal customer. For a strong management they associated with the IT connection, launched CRM system which is known as OnQ, what is having a customer database where all the necessary information about a customer is saved. For further service to that loyal customer, with the help of OnQ, front desk employees will be very attentive and take the extra care which will make the customer come and take their service again. With the customer preferences beyond their rooms will make the Hilton very loyal to their customer.

These things above discussed only possible with the help of CRM system and our focus is on how the system work. If it can work in hotel management then it also can work in other business organization such as travel agencies, phone companies, grocery shop, multinational companies, and international companies and so on where customer is really matter.

Already this OnQ system is yielding measurable benefits is in its ability to match customer reservations with profile database records. So now Hilton has to do something to create a competitive advantage through OnQ. Like wise:

This system should be 100 percent flawless system.

Forecasting functions can make this system more powerful.

Try to cut the expenses and make profit.

This OnQ helps Hilton run its existing operations, the system's real return will be measured by whether it lets the company reinvent what it does and what it offers customers.

In customer database, they can have more relevant information such as what she/he eats in breakfast, in lunch and in dinner, what likes in desert, does that person like amusement park or swimming pool for her/his recreational satisfactory, what kind of room he/she likes, like normal, special, business class, special suite and so on. By knowing that information, Hilton can provide more facilities and extra care to their customer, and make them to come and stay there again.

This system is associated with other components which include a property-management system, the CRM application and a hotel owner-reporting module. So it also can include many other components like enterprise resource planning (ERP) to concentrates on the efficiency of a hotel's internal production, distribution and financial processes; Partner relationship management (PRM) to aims at acquiring and retaining partners who can enhance the selling and distribution of Hilton's services. Supply chain management (SCM) to focuses on developing the most efficient and effective sourcing and procurement processes with suppliers for the products and services needed by the hotel business. Knowledge management (KM) to application focus on providing hotel's employees with tools and support group collaboration and decision support.

They also can use the enterprise application integration (EAI) software to interconnect some of the cross-functional enterprise system which is being used by many companies to connect their major e-business application such as it enables users to model the business processes involved in the interaction that should occur between business application, and perform data conversion and coordination, application communication and messaging services, and access to the application interfaces involved. For an example: EAI integrates access to the entire customer of Hilton and product data customer reps need to quickly serve customer. EAI also streamlines sales order processing so products and services can be delivered faster. Thus. EAI can improve customer and supplier experience with the hotel business because of its responsiveness.

The System even can be used to identify that very rare invaluable customer. One such frequent guest of Hilton's Hampton Inn brand, it turned out, hadn't paid for a single night over 107 stays. Once OnQ went live, it became clear this customer had logged a complaint each time she stayed at a Hampton property, taking the brand's "100% guest satisfaction" guarantee to extremes.

On the check-in front, Hilton has been experimenting with kiosks at hotels in New York and Chicago, with plans to expand the program to 45 hotels this year. Each hotel will get an average of three kiosks, which use Web services to call information from the OnQ system, and there's also an employee on hand with a tablet computer connecting wirelessly to the full OnQ system to assist customers who have trouble with the new check-in option. Next year, Harvey expects guests to be able to print airline boarding passes from the kiosks before departing the hotel. Hilton also is working on offering Web check-in by year's end.

Hilton hopes to expand its profile preferences beyond rooms. For the best guests, that might include what they want in their rooms when they arrive--water, extra pillows, a treadmill--or other ways to individualize treatment. By next year, Hilton expects to begin pitching customer's additional services, such as golf, spa, or theater packages, based on their preferences.

It's also planning to build Web-based connections to let corporate travel departments at its biggest customers directly book rooms from Hilton's central reservation system and give them a window into the OnQ system to access certain information from their employees' profiles.

For 50,000 smaller business accounts, Hilton is rolling out portals for booking employee travel, letting them take advantage of volume discounts and access their Hilton travel records, called from OnQ, to generate reports on their Hilton spending. It's a way to offer a degree of personalized service to companies that aren't big enough for Hilton to provide dedicated staff to serve. The program is in testing with nine companies with plans to launch later this month.

Hilton Hotel can implement the policies mentioned above that includes increasing license fees from franchises, training and reducing front desk turnover which will ensure the profitability of the hotel and also successful implementation of their OnQ system. It can be explained with the help of an example. When Mr. Fiorendino recently arrived at one of the Hilton properties he frequents most, the Doubletree Hotel in San Jose, California, front-desk manager Sheila Santos entered his name, was prompted to welcome him, and confirmed that the room he was getting based on his preferences in OnQ was what he wanted. Santos then asked him if he wanted to get frequent-flier miles for his stay--something OnQ can do for just about any airline. He provided an account number, and the miles were his. Next year, Hilton expects OnQ to help drive more revenue per visit, such as letting Santos sell restaurant reservations or tee times or concert tickets. Through this system, Hilton Hotel can develop their customer relationship and therefore can establish long-term relationship with the customers to ensure long-term profitability.