Introduction

Information Technology (IT) covers a broad spectrum of hardware and software solutions that enable
organizations to gather, organize, and analyze data that helps them achieve their goals. It also details
technology-based workflow processes that expand the capacity of an organization to deliver services
that generate revenue. IT includes a combination of hardware and software used together to perform
the essential functions people need and use every day.

IT impacts and assists the growth of practically every industry in the present age. The hotel industry too
isn't insulated from its effects. Companies in the hospitality industry face a highly competitive
environment in which differentiation and innovative customer experiences are key elements in
improving revenue by building brand awareness and loyalty among customers. They are under such
pressure to keep up with the expectations of guests that they are implementing new technologies to
regain their edge. Leading hospitality properties are using technology products to differentiate
themselves from their competition and thereby
increase market share and improve revenue

The success of a business, to a certain extent, depends on its ability to acquire and utilize updated
information to assist its management and marketing processes. Hence, Information Technology (IT)
assists organizations to manage information dynamically and influences business competitiveness by
assisting decision-makers to make appropriate investments and decisions. IT helps to meet the demands
for timely and accurate information by customers and the IT diffusion in the tourism and hospitality
industries has recently increased at an unprecedented rate. This is evident by the ubiquitous presence of
IT systems that work cooperatively to assist managers to deliver quality service to their customers and
to enhance operational efficiency and control costs. Researchers have stated that IT, by acting as a
protector and enhancer, directly influences the experiences

and behavior of tourists.

It is advantageous for tourism and hospitality managers in general and marketing managers, in

particular, to be aware of the recent changes in IT and their relationship with customer service. As IT
development becomes more sophisticated, industrial practitioners, educators, and policymakers may
find increasing difficulty in selecting, analyzing, implementing, and operating new IT systems. In order
to satisfy tourism demand and survive in the long term there is no choice but to incorporate technology
and enhance the interactivity with the marketplace.

With travelers becoming increasingly tech-savvy, hotels that do not embrace the latest technology to
deliver innovative services to their guests stand out to lose big time. However, keeping abreast of the
changing technology. and developing cutting-edge solutions based on such technology is a big challenge
for hotels and would, in any case, be a drag on their core focus.

Advantages of Information Technology in the Hospitality Industry

Listed below are the advantages of utilizing information technology in the hospitality industry:

  Reduce Operational Costs. The use of information technology can replace the role of humans in
performing some routine tasks. E.g. computers in the front desks can perform night auditing
functions. Hotels may not need 10 employ night auditors with rich accounting knowledge or
 they may consider recruiting fewer staff for overnight shifts since all calculations are
automated. Therefore, the labor cost can be reduced in the long run.

 Reduce the Workload of Staff. Some IT applications are also designed to reduce the staff's
workloads by assisting them in performing their job duties. E.g. by installing CCTVs (closed-
circuited televisions) in different locations of the hotel will allow the security staff to monitor the
key areas in the control room without patrolling in person.

 Increase Efficiency. As customers always expect quick services to be provided by the service
staff, some applications have been specifically designed to simplify some time-consuming
procedures. E.g. it only takes less than 10 seconds by using a credit card validator to verify a
guest's credit card. It replaces the need of calling credit card enterprises for credit approvals
which may take more than a few minutes for processing.

 Increase Revenue. IT applications also facilitate new services to customers: E.g the in-room
entertainment system allows customers to enjoy movies and video games while they are staying
in the guest rooms. It helps the hotel to generate extra sources of income if such a system is
installed.

 Access and Share Information. Computers and some hotel interfaces enable sharing of

information among departments. E.g. while a room attendant has finished cleaning a vacant
room, he/she can change the room status by telephone input. This action will simultaneously
update the room status in the front desk's computers (changed from VD to VC). Front desk
receptionists would then be able to tell if the room is ready for sale afterward

 Achieve Better Planning and Management. Customer information, including their preferences

and consumption records, are kept in the customer database. Hotel or restaurant management
can fully utilize this valuable information to examine the characteristics of their target segments
and plan for some new services and facilities which cater to their needs. Marketing activities can
also be implemented accordingly by using information, such as postal addresses or email
addresses of customers and enterprises.

Issues and Concerns of Information Technology in the Hospitality Industry:

 Lack of Knowledge of Top Management. Without much IT training in their work experiences,

top management normally has limited knowledge of the most updated IT being applied in the
accommodation sector. They tend to be more conservative and would like to keep the old ways
of doing business instead of implementing changes. Their reluctance to accept new technologies
has, therefore, slowed down the pace of IT development to a certain extent.

 Huge Investment Cost. Although the applications of IT may improve service efficiency and lower
the operational cost in the long run, some applications may involve huge investments in
installation and long-term maintenance. Continuous innovation also means that the new
technology will soon become outdated with the new replacements. E.g. the innovation of
TV models from a classic cube to a flat ‘liquid crystal display’ (LCD) which is then followed by a
‘touch-screen’ feature and the latest 3D versions. It can be estimated how much a leading hotel
 would spend for TV installation for all rooms once a new model comes up. Obviously, it may not
be affordable to those hotels with limited financial resources and scale.

 Resistance to Change of Personnel. There are two potential problems to be faced be faced by

the existing staff working in the accommodation sector. On one side, staff who are doing fine in
their own ways of practice would be reluctant to change and learn new technologies that they
are not familiar with. On the other side, there would be pressure given on staff once they think
IT can easily replace their roles in performing services to the customers. All these can lead can
lead to low motivation and a high turnover rate of staff in the industry.

The Internet and the World-Wide Web

       While thriving to be competitive in the global market, exactly the hospitality industry is exposed and
overburdened by exclusively high costs for:

 promotion in the global market,

 immediate communication / interactivity with the clients / tourists,

 booking by guests from distant tourist-generating destinations,

 market research

        The costs mentioned above can be reduced by using WWW in the tourism business. The Internet
and its application (WWW) have created an information infrastructure that now rivals the Plain Old
Telephone System (POTS) and other traditional ways of performing business in size, coverage, and
popularity. Many people use the terms Internet and World Wide Web (aka. the Web)
interchangeably, but in fact, the two terms are not synonymous. The Internet and the Web are
two separate but related things.

            The internet is a massive network of networks, a networking infrastructure.It was conceptualized

during 1969 by the Advanced Research Projects Agency (ARPA). It connects millions of computers
together globally, forming a network in
which any computer can communicate with any other computer as long as they are both connected to
the internet. Information that travels over the internet does so via a variety of languages known as
protocols. In everyday life, the Internet has been called different names that often interchangeable to a
lay person. It has been called the Net, the Web, the Information Superhighway and the Worldwide
Web. When someone use an app on their phone, send an instant message, transfer a file directly from
one computer to another via file transfer protocol (FTP) or simply send an email, they are using the
Internet — but not necessarily the Web.

            The World Wide Web, or simply the web, is much newer compared to the Internet and was
initialized during the 1990s. The WWW. is such an immensely popular Internet facility that for many
users, it has become synonymous with the Internet. The World Wide Web is a collection of web pages
linked together with hypertext links. These are the very same links that can be clicked on when browsing
the internet (i.e., clicking on gifs and Buzzfeed lists). It is an information-sharing model that is built on
top of the internet. The web uses the HyperText Transfer Protocol (HTTP), only one of the languages
spoken over the internet, to transmit data: Web services, which use HTTP to allow applications to
communicate in order to exchange business logic, use the web to share information. The web also
utilizes browsers, such as Internet Explorer or Firefox, to access Web documents called webpages that
are linked to each other via hyperlinks. Web documents also contain graphics, sounds, text, and video.

               Alternatively, the Internet can be viewed as a big book store while the Web can be viewed as a
collection of books on that store. At a high level, we can even think of the Internet as hardware and the
Web as software.

Figure 1. Internet vs World-Wide web

Benefits of the Internet and the World-Wide Web

          The hospitality and tourism industry has always been among the first to capitalize on new
technology. Because it is an information-rich industry, it depends heavily on finding and developing new
means to distribute travel and hospitality products and services, marketing information to consumers,
and providing comfort and convenience to travelers. The rapid expansion of the Internet and WWW
provides a unique mechanism for organizations' marketing and distribution as it holds the
unprecedented ability to disseminate in-depth information and receive direct feedback from consumers
in an open environment. Innovative small hospitality operators also discover that the Internet can
provide an international representation at a very reasonable cost and thus restructure their marketing
function to reap these benefits. Hence the Internet is also emerging to become a fundamental facility
supporting the functions of everyday personal and professional life. The hospitality industry activities
presented on the Internet have many advantages but one should not underestimate the possible
disadvantages this new medium might cause.

Competitive Advantages of Using the Internet in the Hospitality Industry are

1. Service improvements concerning:

 Large choice of access to a website

  Faster payment processing
 Reduced delivery time for many products
 Faster and greater availability of support literature
 More detailed and particularized

2. Low costs of:

 Marketing
 processing of booking and payments
 automation of tasks
 establishing direct links between the producer and the consumer distribution

3. Differentiation from the competition:

 Creating
 Presenting
 selling high-quality
 distinctive products

4. Creating up-to-date enterprise image

5. Information usage includes the following concepts:

 addressability
 interactivity
 flexibility
 accessibility

6. Efficiency in operational management and communication

7. Obtain know-how through discussions with newsgroups on the Internet

Potential disadvantages or threats of Internet usage in the hospitality

industry are:

1. Standardization of legal procedures for doing business over the Internet

2. The problem of inefficient accessibility to the website / unfavorable indexing by search engines

3. Spam

4. Bad quality of individual websites which might damage the whole destination image

5. Nonprofessional determination of purpose the website is supposed to fulfill

Chapter 2

 All businesses use a variety of tools and technology to carry out their work. A business tool can be
considered an 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. There are large, heavy tools such as stoves, refrigerators,
cars, or freezers. Business technology, on the other hand, includes any software or hardware used to
complete workplace tasks.

      Managers must learn to use business tools and technology according to the organization's
requirements. They should 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. Business tools and technology vary from organization to organization. Workers should
receive proper training in the technology they need to use. Organizations should have training manuals
specific to the equipment used.

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, they require usage monitoring, training, and
maintenance:

 Mobile Telephone
 Landline Telephones
 Scanners
 Photocopiers
 Notebooks
 Order taking handhelds
 Laser pens
 Keyboards
 Brochures
 Information
 Knowledge
 Facsimile
 Manuals
 Software
 Email
 Business website

        Each business will need to develop criteria so as to identify which tools are to be monitored and
therefore controlled to ensure that time and effort are devoted to managing the proper and important
tools. Obviously, a mobile phone supplied to a salesperson will need to be monitored and controlled to
ensure that all costs are consistent with business activity. However, the mobile of the business owner is
probably immune from such controls. A mobile phone may be on a contract and have a purchase price
of zero, while a stapler to fix paper together may cost a few hundred pesos.

       There are several criteria that may be used to identify and classify a business tool, and most
businesses will use a combination of these criteria to establish the classification of an individual tool.
Once identified, the tools need to be considered as a group and it is logical to provide a name for the list
that recognizes the importance of the group. Possible names could be:

 
  Portable and Attractive Tool - This states that the item is portable location and probably does
not have a fixed location. It also states they are attractive, meaning they could be a target for
theft or excessive use.

 Significant Small Items - This is very similar as the items are small so they can easily lost and
they are significant to the business.

  Significant Small Tools - Regardless of the group name that is identified, it is important to note
that the tools:

        1. Represent an investment to the business

        2. Require control as their use or loss can represent a significant cost to the business

        3. Will generally require training to prevent damage to the user or the business

        4. Are attractive in terms of cost and can be attractive to a potential thief. 

        5. Are often portable so they are susceptible to damage and loss as a direct

result of their portability and the exact location of a tool at any time may not
be known.

            One criteria may be the asset value; another could be the usage cost. Mobile telephones can be
very inexpensive to buy or are even sometimes free but the cost of calls or internet charges can be
frightening. Another can be the portability of the asset. Mobile phones and portable computers are
small and easily mislaid or concealed. A computer monitor can also be very expensive but it is not very
portable or easily removed as they are often secured in place or fixed to the computer which makes
quick removal a challenge. Therefore, monitors may be excluded from the tool list because they do not
present a risk. Another can be the training necessary to use the tool efficiently and safely. Although
most tools require some training, the tools in this group often have a wide range of functions
and capabilities so some level of training is mandatory. In some cases, some level of training is required
to be able to commence item usage.

Finding the Tool: The Register

            As these items are portable there needs to be a register of the tools that are owned and available
within the business. The register will need sufficient information to ensure the tools are locatable and
identifiable thereby ensuring the correct tool is identified. Each business will have different
requirements, but there are a general set of guidelines that will identify the data that most
businesses should collect. The actual selection of data to collect can vary because the size of the
business allows greater resources to be used in the process, the nature of the item and the nature of the
items in the business.

Description

          Because every asset must be described in a register to ensure that the asset can be identified, it,
therefore, follows that each business must create a set of guidelines as to what constitutes a good asset
description. There are many criteria that can be considered in the description. Rules can be established
for the various types of assets, but the description could include one or more of the following:

 Brand or manufacturer

 Model or name

 Purchase date

 Supplier

 Warranty Expiry date

 Purchase Price

 Department

 Physical Location

 Serial Number

 Asset Number

 Color

 Warranty responsibility

Other non-attached items that form the tools such as:

 Cables

 Power supply

 Lens

 Memory cards

Storing the Details

        There are various methods to record business tool details. The simplest is the paper approach
where all the details are recorded in a book — an asset register. This can be stored under the control of
an officer of the business. Spreadsheets are excellent tools to record the required details. These can be
easily constructed to suit the individual needs of the business and changed to suit changing needs. They
can be password-protected or secured using other methods to ensure the quality of the data allowing
many people to view the document and only a few to edit.

          Electronic document files can be as simple as word processing files that require a little more effort
to construct, but once done, are excellent tools. The electronic formation can be constructed on a multi-
access approach where employees can easily locate and view the file to find the required information,
but they cannot alter or edit the document. The ease of access makes the electronic format much more
attractive than the book approach which can only be accessed by one person at a time. There are
purpose-designed database software packages that store and manage the details of each asset. These
are flexible packages that can be configured to suit the needs of the business.
           Each tool needs to be described and identified, and this is especially important where there are
multiple of the same tools. Because every asset must be described in a register to ensure that the asset
can be identified, it, therefore, follows that each business must create a set of guidelines as to what
constitutes a good asset description.

Storage Location

         There are many places that can be used to store an item: a desk drawer cupboard, storage locker,
or cabinet. The location needs to be identifiable so there can be certainty as to the tool,s correct storage
location. Cabinets can be numbered or identified where there is a possibility of confusion because they
are similar in appearance. Shelves and boxes can also be identified with labeling systems to indicate a
unique storage location to ensure the tools are stored in the correct location and the correct location
can be found.

          Identification numbering can be used that provides some indication as to the location of the
storage item. As an example, a classroom may have the number C113. This indicates the room is in
building C on the first floor and it can be found between 112 and 114. Just as was proposed with asset
numbers, storage location numbers, or codes, should be constructed using a template or coding
standards that allow the consistent formation of the number or code and encourage the quick and
certain location of the storage position and the quick and certain return of the asset to the correct
location.

Proper Ways of Using Business Tools

         Business tools play an important role in meeting business objectives. Many business tools also
present a possible non-business use that should be considered when allowing access. The simplest
example is the telephone. Business calls to suppliers and customers are obviously part of the job of
many people. Just as obviously a telephone call to a relative in another country is not. The number, cost,
and nature of personal access have been a challenge for businesses for many years, but as the range of
tools with this issue has increased so has the range of challenges.

           Traditionally, employees have not been allowed to customize the place where they work as there
can be a conflict of interest and the possibility of fraud with free drinks or food. Modern business tools
provide new opportunities for an employee to waste or misuse business resources. There is a wide
range of tools to limit such practices but they need to be carefully planned, implemented,
and communicated to ensure the objectives of the business are not comprised:

 Telephones can have call-barring where certain numbers are not available, for example,
international or mobile numbers. In some systems, these restrictions can be applied on a
telephone-by-telephone basis. This means that executives can make international calls while
others cannot

 If this is not necessary, overriding codes can be made to managers that allow them to make any
call from any telephone. A manager can call overseas from a telephone that has the service
banned by first entering the number
  Agreements can be created that allow for personal access up to a set level employees may be
required to identify personal calls made on a business mobile and if they exceed a
predetermined amount the employee must make restitution. This can be set by time or cost.

         The 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. Email also
presents similar challenges as web surfing. Email can be where an employee accesses personal accounts
using the business internet. There is also a consideration of sending and receiving personal emails over
the business system. There is a time issue of staff using business resources for private use, but there is
also a security aspect. By publishing the business address there is a greater opportunity to receive
emails from a contaminated source and infect the system with a virus.

             Non-essential downloads can consume precious bandwidth and slow internet access for
legitimate access. Downloads may involve objectionable material that can offend other employees and
in some cases, because in dismissal. The possible consequences of such action need to be fully explained
and communicated. Off premise access to computer resources. Allowing users to connect memory sticks
and other equipment provides an opportunity to infect the computer system with unwanted software
that may present a risk to the business. Malware in the form of viruses and spyware can be easily spread
from a memory stick. The denial of such access will remove the possibility but such restrictions may
place unreasonable challenges on an employee to do their job.

Business Web Site

              A well-managed site will often have an approval process that will hide any changes to a site until
they have been vetted and approved by another person. There may be a group of authors that have
permission to make changes to the site and these people become the first step in the approval process.
They can check that language, style, and content is consistent with the existing material on the site. But
any changes made by an author do not become visible or published on the site, until the edits have been
approved by another party, often called the approver.

Software

          Where software is distributed on portable it will be installed on various computers and then stored
and it may never be needed again. But should it be required the hardware — the disk or similar — must
be accessible as well as the associated passwords or install keys. These are often on the disk case or
packing: but they may be sent via email. Replacement keys are obtainable, but it is obviously quicker,
easier, and cheaper to have the key with the disk. It is not unknown for a company to have useful
software that has been made by a manufacturer that has ceased operation so support in the form of
additional keys is not available.

Social Networking
           Sites such as  Facebook, Twitter, and Instagram can be assets for the business but they can also be
liabilities. 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 needs to be aware of the
consequences of publishing material on social sites.

Telephones

           Landline telephones can be restricted to local 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. There should be a standard corporate greeting and the ability to perform, again, a
standard set of tasks. Depending on the telephone system, these could include transfer calls, how to put
a person on hold, to recover from hold, use of the speaker system, and others. 

Email

        This is very similar to the landline requirements. It may be possible to assume that most can use an
email system, but different programs present different challenges.

         There is also the consideration of email etiquette and how a sent email will reflect on a business.
Modern businesses will often have a standard email template with a standard signature block and users
may need to be trained on how to change the template for an individual user.

          In all cases, the efficient use of any tool requires some training before the tool can be used
efficiently and safely. Efficiency refers to the ability to achieve the desired results or outcomes within an
acceptable time frame and with a reasonable effort. Assume that a user wants to take a photograph
from a digital phone and further assume they have no training. The results could be anything and the
time involved could be significant as they fumble and take pictures of fingers that cover

the lens.

       Safety needs to be considered for the person and the equipment. A camera flash close to the eyes
can injure and possibly blind. There is also a consideration of damage to the equipment. More than one
phone has fallen from a top pocket into a sink or other body of water; plugging parts of a computer in
while the computer is operating has been proven to be damaging to a computer.

       All these dictate that before a person is allowed to use a business tool, they must undergo some
level of training, and perhaps a refresher level of training for those using the same tool later to remind
them of the first set of skills provide new opportunities for an employee to waste or misuse business
resources.

Chapter3

Record Keeping and Monitoring of Business Tools

        Each tool has to be monitored and controlled for various reasons. It is important to know who has
the tool so that it can be located should the need arrive. If the tool is to be used for a set period there
needs to be a process, that should be followed to get the tool back. Companies need to develop a
procedure to allocate the tool to a user and record the date or time that it is expected back.

         There will be a person or people that have the authority to release the asset and maintain the
business records. The business will need documentation to record the movement of the tool, the
allocation, and the return. There will also be some form of documentation for the user so they know
when the asset is to be returned. The document could be a piece of paper with the relevant details or it
could be an email. For some tools, there will be procedures that need to be followed when the tools are
returned. In some cases, a record of usage will determine maintenance requirements. Photocopiers will
need a service after a pre-determined number of copies have been done. Printers also have similar
requirements.

Damage 

          Companies should create rules and responsibilities for tools that are damaged as a result of
negligent behavior by the user. Some businesses will have insurance and others will be willing to accept
damage as it is not a common event and may not occur at all. Others will have a statement stating that
the responsible party will be expected to pay a percentage of the cost as an
encouragement to take responsibility for their actions and to utilize a higher level of care and
responsibility when dealing with the business tool.

             There will be a need for a reporting process to ensure that the appropriate action is taken to
ensure the tool is available when next required. This may be having the tool repaired if possible or
the initiation of the replacement process.

Security Tools in Storing Business Tools

              The storage requirements for each tool must be considered. There is the physical space that will
be needed for the tool and any other items. There is a security trade-off: the more secure the item the
less accessible and the more difficult it is to be accessed, the less secure the more accessible.
Management will need to determine the level of security required and the resources that are to
be devoted to the security. The simplest tool is a document that controls the use and access to the tool.
The cheapest is a book that records all the relevant information and has to be signed on access and use
of the tool. Other security tools include a selection of the following.

1. Password
         Computer systems can have password protection to restrict access. When considering access to
knowledge or information users can have security access attached to their log-in profile. The
disadvantage of this system is that users will forget their passwords and some protocol needs to be
established to enable users to reset their passwords when they forget them. To increase security,
passwords can be set to expire at regular time intervals and force the user to create a new password.
          Any system will need to have a method to reset the password. In most cases, the password cannot
be read by anyone in the system so a process will be required to reset passwords if they have been
forgotten. 

2. Swipe Card Access

         Access to the tools can be controlled by the use of swipe cards. The system can record each person
that accesses the storage area and also the users take the tools from the storage location. This has a
higher cost than the paper approach provides greater flexibility and of course, does not rely on a
person to check the item in or out.

3. Security Cameras
           This can record handling and use of the tool in the area as well as recording access. It may be that
many people will need to access the area where the tool is kept. A security camera can record who
actually uses or even touches the tool and how they use it. The presence of the camera also acts as a
motivator to staff to ensure that they treat the business tool in an appropriate manner as they know
they will be recorded and can be held responsible for their actions.

4. Lockable Access

          Locks can be used to prevent access and to enhance the possibility of the tool being available for
later use. Rooms can be locked and keys made available to a limited number of people to control access.
Cabinets and drawers can also be locked for the same reason. Laptop computers can be locked with
cables to desks to inhibit theft and misuse.

         Locks can be of the traditional type with a metal key and door or padlock. For greater control, a
swipe card system can limit access and record who has access. It becomes a higher level of difficulty to
gain undetected access. Higher levels involve fingerprint identification such as is common with laptops.
Higher levels of control can be achieved with retina scans, facial recognition, voice prints, or a
combination of these methods.

       Each of these controls has benefits and costs. Management will need to consider the level of control
that is required and determine the level of resources that will be required to install and maintain the
system to a level to provide the
required security level. It is silly to implement a system of swipe card access and never check on who is
actually accessing the tools.

Audits

          Audit refers to the assessment of the processes that are in place on how the business tools are
monitored, controlled and used. The audit process can be the start of a sequence of events that may
result in retaining, replacing, or disposing of the asset. A tool that has not been accessed for an

unreasonable period may be a sign that the tool is no longer valuable to the business. The audit
should also confirm that all relevant documentation for each business tool is present and located in the
correct location. As well as the individual tool, and the associated support items, manuals are an
important factor in the efficient use of the tool. Being able to find the documentation, should the need
arrive, is important.
         Usually, this is a two-person (or more) process to ensure that the audit report is accurate and
mistakes or false data has not been entered to hide deficiencies in the system. If both sign they both
agree to the details and this complicates or reduces the possibility of fraud or innocent mistakes
occurring.

         The audit process should be a standard management process and not seen as an exemption.
Although it is impossible to dictate time periods for this process for every business, it would be highly
unlikely that the time between audits is longer than one year.

Information as a Tool

       Information is an important business tool in a modern organization. Like the other tools it needs
protection from unauthorized use and access, it needs maintenance as information that is old or
outdated may be useless and even dangerous. Assume that a recipe that did not have peanuts is
changed to have this ingredient. A waiter is asked if there are peanuts and, as this same question has
been asked before, the confident answer is “No”. Unfortunately, the dish has changed and a person with
allergies consumes the dish and dies. Perhaps this is a little dramatic but certainly not an impossible
situation. Other scenarios 5, include:

 Buying goods from the wrong supplier and paying too much because prices have not been
updated

 Buying the wrong goods e.g. Roma instead of Cherry tomatoes because the order requirements
have changed but these have not been recorded in the system

 Sending accounts to the wrong address because the client's details have not been updated

         Information has a shelf-life aspect or age characteristic. It may be easy to see that a mobile
telephone is old and has limited functionality, but it is virtually impossible to determine, without other
details, that a piece of information is old. A person can look at a price list of fruit and vegetables and
determine which are incorrect because they were at the market last week and know the prices. It
is impossible to look at the price on a screen and visually identify it as old without that additional insight.
Systems can include metadata to meet this need. Metadata is data about the data. In the case of an
ingredient price, the metadata could be the last date and time the data was updated, or who did the
updating. This provides some assurance on the quality of the data. A price that had not been updated
for a year should be treated with suspicion, while a price that was updated yesterday can be relied upon
with some confidence.

Just as with other tools, there is an access issue. Privacy laws and commercial considerations mandate
that people that are able to view certain information must be controlled or limited. In most cases,
privacy laws allow only people with a valid reason for accessing the information to be allowed to do so.
Managers may have a legitimate business reason to view the personal details of a staff member, but it is
most unlikely that a colleague will be able to provide an acceptable justification: Thinking that a co-
worker is attractive and wanting to invite them on a date is not a sound reason to access their personal
details.

            It, therefore, follows that access to an organization's information must have the same access
limitations and restrictions as other business tools and many of the control techniques can be equally
applied to information access. Locked rooms can hold paper or computer information, passwords can
restrict access to a computer, the program, or the file on the computer. Security cameras can survey the
area to monitor access. Information can be signed in and out and responsibility is attached to its use.

          A further challenge is that information can be duplicated which is impossible with all of the other
tools. When considering access to the information but there must also be restrictions on printing
coming and email access. There have been situations where staff have printed customer lists or emailed
confidential information to competitors.

        It becomes even more interesting because access to information is often time-sensitive and delays
can hinder the operation of the business. Assume that a form requires the company number. This is
public information generally and does not require any restriction. If the user cannot get the information
the form cannot be processed and this may produce delays. With most business tools restrictions
relate to a class of tools — all cameras are controlled. When considering information thereare various
categories with varying restrictions. If the business is large enough and the number of users sufficient an
internal website, and intranet is an excellent tools to control access. In the case of a small business with
a limited number of users a password-protected computer system in a locked room may be a
suitable tool. As there is a limited number of users the people that do access the company information
can know it all because they have a valid reason to do so.

Legal Implications Where information is disclosed various privacy acts and controls can impose penalties
for the business and the individual for acts that breach the act. Computer programs have had to be
changed to hide information about guests staying in a hotel as it was deemed that not all employees
needed to see the guest's telephone numbers.

Maintenance Most business tools require some type of maintenance, ranging from simple in-
house operation to complete machine services that require technicians. Maintenance is the process of
preparing a tool for operation and ensuring that is in a suitable operating condition to minimize the
possibility of a future failure. In most cases, there is a set of stated procedures for each tool that
needs on a regular basis. It is impossible to identify all the possible procedures to be able to identify the
various common tools that may require, but it is important events that will be done by employees and
the procedure to be followed when outside assistance is required.

In-House Maintenance The most common type of maintenance required for all business tools relates to
the supply of consumables. These are the items or materials that the tool consumes during its normal
operation. Copies consume paper and toner, facsimile machines consume paper and toner, and there
are many others. Often these items involve an order process so a procedure needs to be established
where a person is allowed to order the consumables and a source of supply has been established.

Although the detail for each tool will be different, the process involved is the same, and once
established one tool can be followed for a range of tools. To demonstrate the process, we will apply it to
a photocopier as it will cover a wide range of considerations.

Repairs The repair process returns a faulty tool to an operational condition. Something is broken on the
tool and the repair process makes the machine functional again. Unlike maintenance, repairs are not
predictable and cannot be planned. There may also be an element of time pressure as the tool is not
available and it may be needed. Repairs could be considered as simple as replacing the batteries in a
camera, to the complete replacement of the tool because the required repairs are not economically
feasible.

Who Does the Repairs? If a machine does require repair there is a need for a record maintained by the
relevant service authority. This can be in the tool register or alternately a list of authorized repairers can
be kept. Contact names, numbers, and people can be recorded. A database in Excel can be kept that will
allow the relevant people to be contacted and arrangements made.

Repairs vs Maintenance In most cases, repairs imply some immediacy where action needs to be taken
promptly to ensure the tool is in working order. In other cases, a repair may not immediate and the
tools are still serviceable, although not as efficient as before the damage. A mobile phone may have a
cracked image hard to read but is still usable. 

          Maintenance and repairs without a time pressure component can be arranged to suit the needs of
the business and match the time available for service repair times. Users may be willing to suffer
some inconvenience in return for use of the tool.

Establish an Expert Usually, this means allocating the responsibility of the machine to a single person
who has the authority to spend the company’s money on service calls and other items. They will often
be more versed in a wider range of activities on the tools

 
Cleaning Routinely cleaning and maintaining equipment can prevent problems and faults from
occurring. There are some maintenance processes you can do yourself to keep the equipment you use in
good working order. For example, you can routinely clean your keyboard, monitor, and mouse by using
a damp cloth or other cleaning materials such as monitor wipes.

Fault Recording for the Business It may be useful to maintain a record of fault types to use when
deciding on the future of a machine. Repeating faults may indicate that a tool is being used beyond its
specifications and that a more robust model is required.

         Fault repeating may also indicate that the repair process has fixed the symptom — paper jamming -
but not the cause, which is a faulty pickup roller in the paper bin. Some companies do not maintain
records of faults but only action is taken and they may not investigate for a deeper problem.

       Details of the fault are helpful for technicians to arrive at a solution faster. In this case, details means
issue details. Complaints such as “machine not working” or "cannot copy" do not provide any helpful
information. It is always the case that detail is helpful e.g. "machine jams only when duplexing on A4"
directs the technician's attention to a particular area.                              Documentation may be necessary
that encourages details or the expect to collect the details. Some manufacturers have a standard form
that is designed to ensure the correct and most complete data is collected to enable the problem to be
solved as soon as possible. This could include details such as:

 Employee’s name

 Contact details

 Email address
  Sequence of events

 Asset name

 Model

 Finance officer

 Problem description

 Service contract number

 Serial number of machine

 Urgency of the problem

 Access hours

Chapter 4

Electronic business(e-business) can be defined as the use of the internet to network and empower
business processes, electronic commerce, organizational communication and collaboration within a
company and with its customers, suppliers, and other stakeholders. E-business utilize the internet,
intranets, extranets and other networks to support their commercial processes. Electronic commerce(e-
commerce), on the other hand, is the buying and selling, marketing and servicing of products and
services via computer networks. Since e-business includes the process of transacting with suppliers and
customers their is an overlap in activities with e-commerce.

        Although the terms ‘e-business and ‘e-commerce are often used synonymously, the distinction
between them lies in the broader range of processes in e-business that incorporates internal
transactions within an organization. These include transactions relating to procurement, logistics, supply
chain management, payment, stock control, and order tracking. E-commerce can be best described as a
subset of e-business. Therefore, E-business is a more general term than e-commerce.

      One key issue for the e-business application in service operations is the possibility of online delivery
of the services customers ordered - as not all types of services (or products) can be delivered online,
such as haircuts (or hot cooked meals). Specifically, the services requiring customer participation (or the
items demanding immediate delivery) are difficult (if not impossible) to be purchased and delivered
online. In this regard, the online booking of hotel/ motel rooms, airline tickets, advanced car rental, or a
total travel package has become one of a few good example services - which can be inquired about,
checked, and ordered easily while conveniently communicated and delivered online with the Internet.

The function of Electronic Business

         The most important role of electronic business is “electronic value creation’ — the generation of
electronic added value. The forms of electronic added value are usually distinguished in the following
way:

 Structuring value: an online offer achieves an overview of a large quantity of information

  Selection value: an online offer provides specific database information upon request

 Matching value: an online offer makes it possible to merge inquiries from suppliers and buyers
more efficiently

 Transaction value: an online offer makes a business more efficient

 Coordination value: an online offer allows different providers to better combine their services

 Communication value: an online offer improves communication between different consumers

         Depending on which type of value a company decides to pursue, they can choose one or more
value activities — for example, the collection, structuring, pre-selection, summary, or distribution of
information. A so-called “digital information product” can also be created, offering added value that the
customer is prepared to pay for. This information product may be a website, blog comparison portal, e-
book, or software application.

E-commerce Business Model

           The Internet has consolidated itself as a very powerful platform that has changed the way we
communicate, and the way we do business. Over the last decade, the population of Internet users has
increased rapidly. Customers are constantly seeking new sources of information to help them make
decisions before purchasing services. Online sales are an important part of the business. The growing
importance of e-commerce in the modern hospitality industry has created an urgent need for simple
solutions to manage companies’ online presence

        A business model can be defined as the organization of product, service, and information flows, and
the sources of revenues and benefits for suppliers and customers. An e-business model is the adaptation
of an organization's business model to the internet economy. A business model is adopted by an
organization as a framework for maximizing value in this new economy. Through the use of a business
model, an organization can identify where and how in its value chain it can create added value and
profit. A business model also enables a firm to analyze its environment more effectively and thereby
exploit the potential of its markets; better understand its customers; and raise entry barriers for rivals.
E-business models utilize the benefits of electronic communications to achieve these value-adding
processes. The internet has increased the number and combination of possible business models that link
consumers, public and private organizations, and government bodies. There are seven e-commerce
business markets around which business models are constructed business to business, business to
consumer, consumer to consumer, consumer to business, business to government, government to
business and government to citizen.

1. Business - to - Business

             Otherwise called as B2B. This business model sells its products to an intermediate buyer who
then sells the product to the final customer. As an example, a wholesaler places an order from a
company’s website and after receiving the consignment sells the end product to the final customer who
comes to buy the product at one of its retail outlets.

             Some of the examples of B2B models are Alibaba (the world’s largest online business-to-the-
business trading platform), Amazon business, IBM, Boeing, Exxon Mobil Corporation, and more.

2. Business - to - Consumer

          In the B2C business model, the business sells its products directly to a customer. A customer can
view the products shown on the website.  The customer can choose a product and order the same. The
website will then send a notification to the business organization that will dispatch the products/goods
to the customer. 

         This model works by marketers and retailers so that they can sell their goods to internet users. This
is the traditional retail model, but the business is conducted online as opposed to in a physical store.
Some examples of B2C models, Wal-Mart, Staples, Target, and REI

3. Consumer — to - Consumer

            Following the C2C model, consumer helps consumers to sell their assets like residential property,
cars, motorcycles, etc., or rent a room by publishing their information on the website. Website may or
may not charge the consumer for its services. Another consumer may opt to buy the product of the first
customer by viewing the post/advertisement on the website.
            Also, having a C2C business or website requires immense planning and marketing understanding.
Although the sites act as intermediaries to match customers, they don't check the quality of products
being posted online. The few examples for this model include Craigslist, eBay and OLX.

4. Consumer-to-Business

          Customer-to-business, known as C2B, involves customers selling their services or products to

business. It is roughly same as a sole proprietorship serving a large business. 

         The one thing that differentiates C2 from other business models is that the consumers create value
for the products. Also, the model caters to the need of freelancers who works on tasks given by the
clients. However, these websites require planning due to the legal complexities involved. 

      Examples of C2B business models include Google Adsense, Commission Junction and Amazon. Fotolia
is also good example of the emerging C2B Model.

5. Business - to - Government

          B2G  model is avariant of B2B model. Such websites are used by governments to trade and
exchange information with various business organizations. Such websites are accredited by the
government and provide a medium for businesses to submit , application forms to the government. The
Internet is used for procurement, filling of taxes, licensing procedures, business registrations and other
government-related operations. This is insignificant segment of e-commerce in terms of volume, but it's
growing. 
6. Government-to-Business

          Governments use G2B model websites to approach business organizations, Such websites support

auctions, tenders, and application submission functionalities.

7. Government-to-Citizen

     Governments use G2C model websites to approach citizens in general. Such websites support

auctions of vehicles, machinery, or any other material. Such a website also provides services like
registration for birth, marriage, or death certificates. The main objective of G2C websites is to reduce
the average time for fulfilling citizens' requests for various government services.

   

Types of E-Models
1. Portal Model

         Portal models give visitors the chance to find almost everything they are looking for in one place.
They often offer news, sports, and weather information, as well as the ability to search the web. Portals
links consumers to online merchants: online shopping malls, and auction sites. They help users collect
information on an item for which they are looking and allow users to browse independently
owned storefronts. Examples include www.hotbot.com; www.about.com;
www.altavistcom; www.ask.com; www.yahoo.com; www. agilesyslic.com. These portals provide users
with a shopping page that links them to thousands of sites carrying a variety of products.

2. Electronic Retailing (E-tailing)

     Electronic retailing (E-tailing) is the sale of goods and services through the internet. E-tailing can
include business-to-business (B2B) and business-to-consumer (B2C) sales of products and services. E-
tailing requires companies to tailor their business models to capture internet sales, which can include
building out distribution channels such as warehouses, internet webpages, and product shipping
centers. Strong distribution channels are critical to electronic retailing as these are the avenues that
move the product to the customer. 

3. Auction Model

        The Web offers many kinds of auction sites that search other auction sites to pinpoint the lowest
prices on an available item. Auction sites act as forums through which Internet users can assume the
role of either seller or bidder, As a seller, you post an item you wish to sell, the minimum price you
require to sell your item and, the deadline to close the auction, and many other features depending on
the site. eBay is one of the most profitable online auction models. On eBay, people can buy and sell just
about anything. The company collects a submission fee, plus a percentage of the sale amount.

4. Bartering Model

       Another popular method of conducting e-business is bartering or offering one item in exchange for
another. The seller makes an initial offer with the intention of bartering to reach a final agreement with
the buyer. A broad range of products and services is available for barter. Products can be sold directly or
on a barter basis. Potential customers send their pricing preferences to the merchant, who evaluates the
offer. Deals are often part barter and part cash. Examples of items typically bartered are over- stocked
inventory items, factory surplus and unneeded assets Ubarter.com is a site that allows individuals and
companies wishing to sell a product to post their listings. If a business is looking to get rid of an
overstocked product, iSolve (www.isolve.com) can help sell it.

5. Group Buying

        Group buying business model functions in such a way that subscribers of group buying websites
make use of discount offers reaching them online, making payments, and waiting until a determined
minimum number of people sign up for the same offer. Then the transaction is confirmed and the
voucher is sent to the e-mail address. Through this model of cooperation, shops, restaurants, and
other entrepreneurs that offer their products and services on web pages of various group buying
services are obliged to reduce the price significantly, while getting immediate access to a new market
segment which is to new customers. The origins of group buying can be traced to China where it is
known as TuanGou or team buying.

6. Infomediary Model

       An organizer of a virtual community is called an information intermediary or infomediary, which

helps sellers to collect, manage, and maximize the value of information about customers. A major
internet business model, the infomediary model is characterized by the capture and/or sharing of
information. The simplest form of the infomediary model is the registration model. In this scenario,
companies require users to register before gaining access to information on their website even in the
information itself is provided at no charge. Registration is a condition for viewing or downloading articles
so the company can capture contact information and other data from the interested party and use it to
make sales calls and potentially acquire new clients for its consultants. 

         Data about consumers and their buying habits are extremely valuable especially when that
information is carefully Salted and used to target marketing campaigns. They are information
businesses, implying that they compete on their ability to capture and manipulate information in a
manner that adds value for their clients who could be sellers or buyers.

7. Affiliate Revenue Model

         The affiliate program is an online distribution solution that is based on the principle of commission.
Merchants advertise and sell through links to partner websites. It is a pay-for-performance model:
Commissions are only paid for actual revenue or measurable success. An affiliate link includes a code,
which identifies the affiliate. That's how clicks, leads, or sales are tracked.
The affiliate, therefore, acts as the interface between merchants and customers. This model leads to a
win-win situation: the merchants sell their products or services and the affiliates get their commissions.
Variations include banner exchange, pay-
per-click and revenue-sharing programs. The affiliate model is well-suited for the web and therefore
very popular. Examples include Amazon and affilinet.

8. Subscription Model

       Users are charged a periodic -- daily, monthly or annual -- fee to subscribe to a service. It is not
uncommon for sites to combine free content with “premium” (i.e. subscriber- or member-only) content.
Subscription fees are incurred irrespective of actual usage rates. Subscription and advertising models are
frequently combined.

Framework for Analyzing Business Models

       Business models are designed to help firms add value to customers and achieve their stated
objectives. To succeed, firms need to understand their external environment, utilize their resources
effectively and build distinctive capabilities that leverage a competitive advantage over rivals. Figure 3.6
illustrates the process linking a business model with a competitive advantage.

        Developing and implementing business models help firms to compete in a marketplace. Analyzing
the business model helps firms identify what activities in the value chain contribute to profit and help
create a competitive advantage. The effectiveness of a business model is determined by the ability of
firms to exploit market opportunities, match or exceed customer expectations and achieve stated aims
and objectives. There are key characteristics of a viable e-commerce model.

Firms must:
  Design programs that take advantage of the internet network effects and other disruptive
attributes to achieve a critical mass of installed customer base;

 Leverage a single set of digital assets to provide value across many different and disparate
markets:

 Build trust relationships with customers through e-business communities to increase their costs
of switching to other vendors

 Transform value propositions and organizational structures for enhanced value creation and:

 Generate synergy effects on e-commerce product and service offerings.

In developing and implementing an e-business model firm must meet three critical success factors. They
must: 

 Understand and exploit the e-marketspace characteristics;

 Add value to customers; and

 Achieve economic viability.

E-Cash

         Since the explosion of the Internet, more and more people are being hooked to the convenience
Internet has to offer. The Internet has connected people around the world and subsequently enables
businesses to offer products and services around
the consumers or potentially the globe without being physically present in front of the consumers. As
time goes by, the Internet has become a part of daily life, which demands more and more applications
be created and services are made available to make full use of the infrastructure. In line with online
business transaction, E-cash is one of the services that attract people's attention for doing business
transaction electronically. It is a replacement for traditional coins and paper notes, which is not viable
for e-commerce. Electronic cash (also called e-cash or digital cash) is a general term that describes any
value storage and exchange system created by a private (nongovernmental) entity that does not
use paper documents or coins and that can serve as a substitute for government-issued physical
currency. Because electronic cash is issued by private entities, there is a need for common standards
among all electronic cash issuers so that one issuer's electronic cash can be accepted by another issuer.
This need has not yet been met. Each issuer has its own standards and electronic cash is not universally
accepted, as is government-issued physical currency.

Advantages and Disadvantages of Electronic Cash

          Traditional business transactions entail large amounts of paperwork, personnel, and postage to
move documents from one locale to another. Let us examine some of the advantages and disadvantages
of e-cash:
Advantages:

 E-cash is cheaper and more efficient: less paper and personnel are required to process
transactions,
  Transfers occur on the Internet and established networks that span the globe — this enables
consumers to transfer cash at very low rates, and

 E-cash does not require one party to receive authorization as is the case with credit card
transactions.

Disadvantages:

 E-cash is anonymous so there is no audit trail and this can lead to fraud such as money
laundering: this occurs when criminals convert cash obtained illegally into money they can use
without questions being raised as to its origin,

 Illegally obtained e-cash is used to purchase goods/services which are then sold to the public for
real cash,

 E-cash can be forged, and

 A negative economic impact can be realized when banks loan huge amounts of e-cash to
consumers and vendors