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Introduction to tourism systems Impact of IT computing on tourism systems development Internet services and Web generations Key funcionalities of e-business systems Customer Relationship Management - CRM Enterprise Resource Planning - ERP Supply Chain Management - SCM eTourism Cloud Computing Cloud Tourism
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E-BUSINESS SYSTEMS IN TOURISM - Lesson 2 -
Angelina Njeguš, PhD Associate Professor at Singidunum University
Belgrade - Serbia, 2013
Prof. dr Angelina Njeguš
Table of Contents
The Tourism System
Introduction to e-Business
E-Business Systems
E-Tourism
Cloud Tourism
Prof. dr Angelina Njeguš
The Tourism System
What is behind all this?
Attractions
Accommodations
Tourists And there is much more ...
Prof. dr Angelina Njeguš
The Tourism System
The answer:
Together:
THE TOURISM SYSTEM
Prof. dr Angelina Njeguš
What is a System?
In a system, all separate parts perform together to make it function
Prof. dr Angelina Njeguš
What is a System?
Something that has parts: Components
Which are Interrelated
As a part of Society, the system receives and sends influences from and to the External Environment
Because components, interrelations, and society change over time – all these make a system: Dynamic
Prof. dr Angelina Njeguš
Output
Feedback -> Dynamic System
Tourism as a System
Components: Tourists, Companies, Destinations
Interrelated: Supply and Demand
External Environment: Political, Economical, Social and Technological Factors ...
Dynamics: Nature of Tourism changes over the years
Tourist
Companies
Destinations
Input
Demand
Supply
Tourism System Environment
Prof. dr Angelina Njeguš
Dynamics of Tourism
Tourism in the recent past: OLD TOURISM
Travel industry was in charge
Attraction based
Old technologies
Tourism in the near future: NEW TOURISM
Consumer is in charge
Experience based
New technologies
Prof. dr Angelina Njeguš
Evolution of IT Computing
Impact on Tourism
1980s 1990s 2000s
Client-Server Computing
Mainframe Computing
Internet Computing E-Business
Cloud Computing
Service-Oriented Computing
2010s
Centralized services Shared services Self-services Services:
Software: Centralized Decentralized Distributed
e-Tourism
Cloud Tourism
Prof. dr Angelina Njeguš
What is Internet?
Network
A connected system of objects or people
Computer network
A collection of computers and other related hardware devices connected together so users can share hardware, software, and data, and electronically communicate
Internet
Global network of computer networks that:
─ transmit data using TCP/IP protocol
─ interconnected with special gateways or routers
─ provide various services
Prof. dr Angelina Njeguš
TCP/IP protocol
The most widely used communication protocol, that consists of two protocols:
Transmission Control Protocol (TCP) - responsible for delivery of data
Internet Protocol (IP) – provides addresses and routing information
Uses packet switching to transmit data over the Internet
Messages are separated into small units called packets and travel along the network separately
Prof. dr Angelina Njeguš
How TCP/IP works
Source: Nedorost, 2009
Prof. dr Angelina Njeguš
Internet services
Internet services can be grouped into:
Basic services (e-mail, FTP, Telnet ...)
Public services (IM, WWW ...)
Search services (Yahoo, Google ...)
Security services (Pretty Good Privacy - PGP, Secure Shell – SSH ...)
System services (Ping, X-windows ...)
Prof. dr Angelina Njeguš
Internet service: World Wide Web
World Wide Web (WWW, W3, or the Web) is a system of interlinked hypertext multimedia documents accessed via the web browser
Prof. dr Angelina Njeguš
Web generations: Web 1.0
Web 1.0 (1991 - 2004) features:
Static websites
Read-only content
P2W (People to Web)
Source: Hay, 2010
Prof. dr Angelina Njeguš
Web generations: Web 2.0
Web 2.0 (2004 – 2009) features:
– User-generated content
– Read-write web
– Collaboration
– P2P (People to People)
Web 2.0 technologies:
– Blogs
– Wikis
– Social networking sites
– RSS feeds
– Video-sharing sites ...
Source: Hay, 2010
Prof. dr Angelina Njeguš
Web generations: Web 3.0
Web 3.0 (2009 - ...) features:
Semantic Web (or the meaning of data)
Personalization
Intelligent search
W2W (Web to Web)
Source: Hay, 2010
Prof. dr Angelina Njeguš
Web generations
Prof. dr Angelina Njeguš
Intranet
Private network of an organization based on Internet technology, and accessed over the Internet
Prof. dr Angelina Njeguš
Extranet
Restricted computer network that allows controlled access to a company’s internal parts of information system to authorized outsiders such as customers, suppliers, partners etc.
Prof. dr Angelina Njeguš
What is e-Business?
Conducting key business functions over electronic systems:
– e-finance
– e-HRM
– e-procurement
– e-marketing
– e-manufacturing
– e-management
...
Connects critical business systems directly to its customers, employees, partners, and suppliers using Internet technologies
An integrated system that should provide:
– e-Commerce
– e-Payment
– e-Communication
– e-Production
– e-Distribution
Prof. dr Angelina Njeguš
E-Business Adoption Proces
Source: The McKenna Group Interviews and Analysis
Prof. dr Angelina Njeguš
e-Commerce
e-Commerce is a subset of an overall e-business strategy
the sales aspect of e-business
e-Commerce involves conducting business transactions over electronic systems
It is usually associated with buying and selling over the Internet, or conducting any business transaction involving the transfer of ownership or rights to use goods or services [6]
The main e-commerce actors are represented as:
B – Business
C – Customer/Consumer/Citizen
G – Government
E – Employee
Prof. dr Angelina Njeguš
E-Commerce Models
Depending on the parties involved in the transaction, e-commerce can be classified into some basic models:
Business-to-Business (B2B)
Business-to-Consumer (B2C)
Consumer-to-Consumer (C2C)
Business-to-Employee (B2E)
Government-to-Business (G2B)
Government-to-Citizen (G2C)
...
Prof. dr Angelina Njeguš
E-Commerce Business Models
B2B Business Model
B2C Business Model
Prof. dr Angelina Njeguš
Consumer-to-Consumer Model
The C2C model involves transaction between consumers
a consumer sells directly to another consumer
eBay is common example of online auction Web site that provides a consumer to advertise and sell their products online to another consumer
Prof. dr Angelina Njeguš
E-Government Models
E-Government provides and improves online services, transactions and relationships with their employees internally, businesses, citizens, other government agencies
27
Prof. dr Angelina Njeguš
Mobile commerce
Modern e-commerce typically uses mobile devices
Mobile commerce is delivery of e-commerce capabilities via wireless technology
Prof. dr Angelina Njeguš
E-Payment
1The difference between e-money and e-finance is the fact that e-money funds are not kept in the bank's financial accounts
Electronic transfer of money from one account to another
e-Payment
E-Finance
E-Banking
Internet
banking
Telephone banking
Other e-channels
Other financial products or
services
Online
brokering
Internet insurance
Other e-services
E-Money1
Prof. dr Angelina Njeguš
E-Communication
E-communication is electronic transmission of coded information between software units, that:
combine numerous media (text, graphics, sound, video ...) into a single message
are interactive – engages audiences in active two-way communication
involve many-to-many communication - geographically distributed groups communicate interactively and simultaneously
use World Wide Web as communication tool to enhance team work
Prof. dr Angelina Njeguš
Some e-Communication Methods
Method Description
E-mail Method of transmitting communication across the Internet
Phone Conf.
Digital Phone System – allows conference call by participants
Chat A method of real-time communication between a group
Instant Messaging (IM)
A method of real-time communication between two people
Video Conf.
Telecommunication technology that allows two way video conf.
Prof. dr Angelina Njeguš
E-Business Systems
Prof. dr Angelina Njeguš
What is CRM?
Customer Relationship Management (CRM): The measures an organization takes to identify, select, acquire, work with, and retain its customers
CRM
Technology
Customer
Process
CRM is a business and marketing strategy that integrates technology, process and all business activities around the customer (Feinberg & Kadam, 2002)
Prof. dr Angelina Njeguš
CRM parts
...a management strategy that enables an organization to become customer-focused and develop stronger relationships with its clientele.
It helps piece together information about customers, sales, marketing effectiveness, responsiveness and market trends.
(Soutiman Das Gupta, 2005)
Prof. dr Angelina Njeguš
CRM features
Continuous dialog across all customer touch points
Consistent user experience across all contact points that the customer chooses
Personalization of products and services based on customer needs and expectations
Real-time access to all customer information across the enterprise
Prof. dr Angelina Njeguš
CRM software
CRM software provides sales, marketing, and support teams with powerful tools to efficiently and effectively manage customer relationships [7]
Prof. dr Angelina Njeguš
From Traditional to Social CRM
Traditional CRM Social CRM
Prof. dr Angelina Njeguš
CRM solution example
Prof. dr Angelina Njeguš
Prof. dr Angelina Njeguš
What is ERP?
Enterprise Resource Planning (ERP) system is a packaged business software system that allows an organization to automate and integrate key business processes, share common data, and access information in a real-time environment
Prof. dr Angelina Njeguš
ERP Modules
ERP solution is divided into several different software modules:
Financial Management
Human Capital Management
Sales and Marketing
Procurement
Production
Analytics
...
Prof. dr Angelina Njeguš
SAP ERP Modules
Prof. dr Angelina Njeguš
Microsoft ERP Modules
Prof. dr Angelina Njeguš
Prof. dr Angelina Njeguš
What is SCM?
The modern supply network is complex, covering many suppliers, modes of transport and different countries.
Supply Chain Management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain
Prof. dr Angelina Njeguš
Supply chain
The supply chain encompasses all of those activities associated with moving goods from the raw-materials stage through to the end user
Prof. dr Angelina Njeguš
The Value Chain
Prof. dr Angelina Njeguš
SCM System
Supply Chain Management (SCM) system includes tools or modules that are used to execute supply chain transactions, manage supplier relationships and control associated business processes
Prof. dr Angelina Njeguš
E-Business Enterprise Model
Prof. dr Angelina Njeguš
E-Tourism
E-Business transforms tourism industry
The term „e-Tourism“ refers to the use of e-business systems in tourism industry
E-tourism is the digitalization of all processes and value chains in the tourism, travel, hospitality and catering industries that enable organizations to maximise their efficiency and effectiveness. (Buhalis, 2003)
Prof. dr Angelina Njeguš
Cloud Tourism
What is Cloud Computing?
Cloud computing (often referred to as simply „the cloud“) is the delivery of on-demand computing resources (software, infrastructure, platforms and information) over the Internet and on a pay-for-use basis [8] without the
need to install, store, purchase and maintain them locally on client computers
Prof. dr Angelina Njeguš
Why Cloud?
Small companies can not afford a large amount of hardware nor the staff that goes along with it
Large companies may find the costs of maintaining and managing their own datacenters to be prohibitive, or perhaps they have made a significant investment only to discover that much of their resources idling away
...
Prof. dr Angelina Njeguš
Cloud dilemma
Why not outsource to companies who specialize in running data centers and providing hardware/virtualization services and only pay for what you use?
It is the classic "buy vs. rent" scenario
Users no longer need to worry about managing, saving, and backing up their files
Applications can be accessed from any computer with an Internet connection, eliminating expensive licensing and hardware costs and allowing organization to pay for only what it needs
Prof. dr Angelina Njeguš
Cloud Tourism
Hotels & Resorts Restaurants and Foodservice
Cruise Airline Destination Service Providers
Travel Agencies
SaaS Software as a
Service
PaaS Platform as a
Service
IaaS Infrastructure as a Service
Micros Cloud POS
Fidelio WebSuite
Sabre Airline Solution
Amadeus e-Ticket
Database
Development tools
Middleware
Storage
Servers
Network
Prof. dr Angelina Njeguš
Cloud Tourism
Cloud Tourism
Business
• Management
• Marketing
• Finance ...
Tourism
• Transport
• Travel
• Hospitality
• Heritage ...
Information Technologies as a Service • Hardware
• Software
• Telecomunications ...
Cloud Tourism
Prof. dr Angelina Njeguš
References
1. Swindoll, C. (2011) „Redefining Fundraising – Data“, Pursuant [Online]. Available at: http://www.pursuant.com/blog/tag/dikw-model/ (accessed: 1.11.2012)
2. Nedorost, T. (2009) „CGS1060 Introduction to Computer Science“, PowerPoint presentation [online]
3. Hay, D. (2010) „Web 3.0 demystified: An explanation in pictures“, Social Media. Available at: http://socialmedia.biz/2010/10/21/web-3-0-demystified-an-explanation-in-pictures/ (accessed: 30.11.2012)
4. Venema, M. (2011) „An Introduction to the Tourism System“, Education for Tourism, Edutour BV.
5. Njeguš, A. (2012) Information Systems in Tourism Industry, Singidunum University, Belgrade.
6. WikiBooks, „E-Commerce and e-Buisness – Concepts and Definitions“. Available at: http://en.wikibooks.org/wiki/E-Commerce_and_E-Business/Concepts_and_Definitions (accessed: 16.01.2013)
7. Sage CRM (2010) „Creating a customer focused business with CRM“. Available at: http://www.sagecrm.com/northamerica/what-is-crm/ (accessed: 17.01.2013)
8. IBM Smart Cloud, „Computing as a service over the Internet“, IBM. Available at: http://www.ibm.com/cloud-computing/us/en/what-is-cloud-computing.html (accessed: 18.01.2013)