Data Driven Decision Making and Tools - Evaluation

The  evaluation is divided into Three Tasks give below:

Task 1 - Data-Driven Decision Making

A method for taking into account the various factors that could affect a business choice is to base decisions on data analysis, verification, completeness, and processing. The majority of businesses relied on having data that their experts could gather, format, extract, model, and then finalise for use in business decision-making before the advent of data analytics. Contrarily, data-driven decision making is a process of continuously challenging presumptions and assessing business options with precise quantifiable goals.

Decisions made using data, facts, and metrics must not conflict with the organization's core missions and visions (Ugwu et al., 2018). Companies that understand the true value of data do so because they are aware that working with a business analyst or human resources specialist may enable them to take better decisions that will advance their business. The right analytics cannot be chosen in order to understand the business opportunity. Businesses must, however, use data-driven decision-making, which is focused on creating a culture that will encourage scepticism, enterprise, and curiosity.

These companies acknowledge that data analytics, as a process and a set of tools, will increase business agility and enable them to compete for and seize market opportunities by supplying real-time information that is supported by reliable and high-quality data. For instance, tourism focuses on travellers' preferences for a specific location. The decision to travel to and stay at a particular hotel is one that the guest has made. As a result, information gleaned from previous client experiences for visitors can reveal their opinions and needs. Simple data-driven decision-making that is driven by a desire to understand and be interested in what the visitors want can produce the best results.

As they generate and gather data for analysis and critical thought, employees at all levels of the organisation should engage in dialogue (McCartney, and McCartney 2020). The management and evaluation of data is a necessary part of every transformation process that businesses undertake. Actually, one need to establish a data-driven decision-making culture within your organisation. In order to determine whether businesses should invest millions of dollars in business modernization, IDC conducted a study in 2018. (Ho, et al., 2021). Their research demonstrates that spending money on business process and technology modernization can actually boost return on investment.

However, choosing technology investment protection over a culture of data-driven decision-making results in the failure of 70% of businesses. In fact, fostering a culture of data-driven decision making, where knowledge sharing and collaboration play a crucial role, may be more important than the need to modernise the data centre.

Data efficiency, analytics agility, and specific community are three of Pursuit's key business capabilities that are considered to be data driven in culture. As a result, making the transition from traditional decision-making to data-driven decision-making is not simple. but as a result, the company will change. It is essential to adopt a focused strategy when designing and redefining the analytics programme for the organisation where decisions should be made in accordance with the data driven culture. Making the transition from traditional business decision-making to data-driven decision-making is not simple.

Critical analysis for decision making and performance evaluation using data-driven tools

Warehouses of data

The word "warehousing" might make people think of a physical place, but it is a useful tool for business growth of any size. Data can also be stored in other places, such as the cloud, where it can later be used in performance evaluations and business decisions. Google BigQuery is the best illustration of a data warehouse for bigcommerce's native integration and for retailers on Pro and Enterprise subscriptions. It makes use of Google cloud storage, which can manage a data warehouse entirely and offer scalable, cost-effective places to store data.

Platform for customer data

Social media users hardly ever make in-store purchases; instead, they contrast the costs and features of various websites and shops. The Omni channel consumer experience must be pursued in order to comprehend consumer behaviour. The foundation of customer data platforms, or CDPs, is the creation of customer profiles that allow for the execution of marketing campaigns and the provision of deals to both current and potential customers (Gursoy 2019). It is preferable to concentrate on comprehending the opinions of current customers and creating a marketing strategy for the launch of new products when making data-driven decisions.

The customer data platform Segment is the best example of how to integrate other organisational intelligence tools, such as the bigcommerce platform, to unify the view of consumers across all products or channels.

Personalization

Businesses can serve many customers instead of just one thanks to personalization. A company's marketing plan might be centred on a one-on-one strategy if it is unable to deliver its customers. A previous track record of selling the goods, followed by a product recommendation and other client-attractive promotions

Analytics

How analytics use images to comprehend user behaviour on the online platform is a significant insight to apply to e-commerce websites (Pappas, and Brown 2020). and gain an understanding of the foundations of analytics so that one can analyse data, understand metrics, and use them for marketing, sales, and search.

Task 2 - Financial Tools for Senior Managers for Making Decisions

Since accounting provides information to decision-makers, it has a greater impact on the economy. It is regarded as a preliminary measurement tool for the company to evaluate the results for a given time frame. At the end of the year, crucial data is transmitted to financial centres within businesses for analysis and decision-making for the following year. A tool for financial analysis that reveals the effectiveness of corporate operations through interpretation, relationship identification, and assessment indication. Financial Tool offers the financial analysis of the firm to go through a thorough analysis of the numerous financial statements and financial ratios, as well as the various questions of the decision-making undertaken in the previous year (Gupta 2019).

In the end, it explains the reasoning behind a particular choice made the year before and evaluates how those choices turned out. Financial ratios and a comparative analysis of financial statements are essential tools for the top management to use when making specific business decisions. For instance, with improved national infrastructure, the hospitality sector can grow. Infrastructure improvements at the national level will eventually increase investment levels and enhance other corporate assets. As a result, an evaluation of the current ratio at the end of the year will reveal whether or not the company is maintaining its current ratio of 2:1.

In a manner similar to this, the profitability ratio will be evaluated to ascertain the return on the business' infrastructure investment. Critical thinking underlies the senior manager's decision to investigate the reasons behind earlier investments and the results of company investments (Popesku 2019). It will help in understanding past mistakes and determining the best course of action for future development.

Statistical tools or data analytics are the best options for helping the hotel industry understand the idea of the guests participating in a plan to manage the venue (Sanjeev, and Birdie 2019). By using the data gathered from different information sources and from online social media or internet platforms with the aid of data analysis, forecasts can be made for the hotel industry in particular to go for the forecasting of the business and the visitors in the country.

Once the data has been statistically compiled, it may be used to ascertain the number of people who visited a particular area of the country and their areas of interest. The percentage of the data will therefore reveal where top hospitality managers are focusing their efforts to grow their businesses and provide more amenities to guests. The locations that have been visited for an hour or more and are of the utmost importance should offer the best lodging options for visitors. In light of this, they not only favour returning to the area but also encourage others to do the same.

Statistical Tools for Senior Managers for Making Decisions

To gather prior experiences and customise the plan, the data may also include the visitor's comments on the visit. To understand how visitors behave in a specific location, sources like the internet and reviews posted by hotel websites and publications that may also take the form of data analytics can be used (Wen et al., 2019). Overall, the statistical method can enhance the marketing of hospitality services to prospective tourists. It enables the identification of a particular subgroup of clients who frequently travel to a specific hotel or location.

In the hotel industry in particular, a statistical tool is helpful for assisting senior management in making better decisions. For the visitor who will receive the added services, it illustrates a lot. Data analytics will make it simpler to comprehend and organise visitor interest. So it's essential to use data analytics to increase output, revenue, and effectiveness. It may be possible to determine whether adopting certain techniques or making changes would improve the position of the company in the market by understanding the interests of the visitors in a particular hotel or location.

Task 3 -Decision Making in Hospitality Industry

Making decisions is an important part of the hospitality and tourism industries because of the dynamic and quickly changing business environment in those sectors. The introduction of social media and the internet has altered how people used to buy goods or obtain services. The rapidly changing visitor mindset and global consumer behaviour need to be closely monitored by businesses because they have created a number of uncertainties and untapped growth opportunities.

If the hotel and tourism sectors work to understand the extremely dynamic nature of the sector, they may be able to seize opportunities for growth. On the other hand, if the business sector and hospitality do not recognise the evolving visitor behaviour over time, it will be impossible to reduce the risk of uncertainties. Because it is essential that companies in the hospitality industry make sane decisions right away that will enable them to lower risk and seize opportunities for success.

Game Theory

Tzu's principle was developed by John Nash, who later won the Nobel Prize in Game Theory, 2000 years ago. Nash asserts that planning steps and strategies is based on observing a player's tactics during a game; to fully understand a strategic move and react quickly, 1000 hours of training are required. As a result, it is critical in the hotel industry to base decisions on the changing visitor behaviour in a particular location.

In this regard, decision-making may depend on more than just the information contained in the data. To understand the features of the business and improve delivery to meet visitor demands, the management should make decisions that are risk-focused. For instance, in the social media era of today, it is common for tourists or customers to frequent a location that is well-liked by other people. It is essential for the hospitality industry to pursue strategic marketing of the particular hotels and locations to draw tourists in order to gain popularity among tourists for the destination. In other words, the emphasis is on encouraging visitors to visit and make use of the accommodations.

The Vertical Model

It is founded on the process of acquiring wisdom. The collection of quantitative and qualitative data must include the majority of the information that is based on the application of knowledge, information, and data. Creative customer solutions can then be taken into consideration. Delivering the best experience to guests while taking into account top-notch infrastructure, security, and comfort is the cornerstone of the hotel industry.

According to the vertical model, it's critical to understand the thoughts and preferences of people who are visiting a particular area. Visitors to the hospitality industry come for a variety of reasons, such as to learn about significant national historical moments or locations or to spend quality time with friends or family. Experiences for visitors can only be positive or better if they have a secure journey and first-rate infrastructure.

If the country's hospitality and tourism industries are strong enough, they might also help the country improve its economic standing abroad. Keeping in mind that it can only be accomplished when top management takes strong and strategic decisions. A strategic and logical decision can be further improved in subsequent decisions to achieve the desired results and gain the respect and confidence of the visitors.

PESTLE Analysis in Decision Making for Hospitality Industry

Decisions in the hotel industry should also be based on the country's pestle analysis. In the end, every country faces a distinct set of issues, including ones that are economic, social, environmental, and technological. It is essential to carry out research on the numerous factors that have a significant impact on the growth and sustainability of the hospitality and tourism sector in the particular country. It will be possible to take action to improve the growth of the country's hospitality sector once the issues have been identified.

The best case study to use here is Nepal, where Wipro built the tourist infrastructure and which also has a lot to offer travellers. However, the infrastructure lacked such tourist attractions. As a result, the guests' travel between locations was not secure, and they were not even given access to a nicer hotel. The country's hospitality and tourism sectors used a pestle analysis in this regard to further assess performance and get around obstacles.

Task 4 - Efficiency and Effectiveness

Efficiency - Definition

Efficiency is the ability to avoid wasting resources during the creation of a product, such as time, money, energy, and materials, in order to achieve desired results. It is understood to be the ability to complete tasks successfully while avoiding wastage of time, energy, or resources.

Effectiveness - Definition

Effectiveness is defined as a firm's ability to produce the necessary output or the capacity to achieve a result. Effectiveness is the ability to produce the desired results as opposed to random ones. Effectiveness in the hospitality industry is crucial because it impacts how well senior hotel management or tourist staff comprehends the needs of visitors. It's important to pay close attention to the visitors' interests and prior experiences. It will be simple to adapt these techniques once the management audit staff members are aware of the visitor's interests. Efficiency plays a key role in assessing the current state of a company or hotel chain in this regard. On the flip side, it will present an opportunity to close the gaps left by earlier mistakes.

The performance of the hospitality and tourism sector may be improved when efficiency is emphasised and understood by senior management. A location's natural beauty alone is no longer sufficient; we also need more resources, like a better infrastructure. Nowadays, most tourists select destinations with excellent infrastructure.

Since today's guests frequently require access to superior hotels with the availability of the barest minimum of resources, infrastructure is becoming more and more crucial in understanding their needs. The hospitality industry may grow when the country's infrastructure is better equipped to provide the resources needed by tourists. In time, this will satisfy the needs and wants of current visitors, attract new ones, and get favourable feedback.

The assessments and comments are what matter most today. It is crucial for the hospitality industry to encourage guests to go online and share their experiences with a particular hotel or location because customers are more interested in reading reviews and feedback from other customers who have already purchased a product or used a service than they are in actually using it.

Budgeting and Planning in Hospitality and tourism Industry – Role and Importance

In order to succeed as a business, it is essential for the organisation to create a business strategy that should be based on management decisions. Before establishing objectives that must be met despite these challenges, it must first identify the risks and uncertainties that may occur during business operations. The most important aspect of the business strategy is the budget for a particular time frame. Budget is the primary planning and management tool for businesses, and management must take it into consideration when forecasting a strategy.

The intricate setup of the hotel industry is based on the nature of the primary daily operations in numerous departments. A significant impact on the operations of the hotel industry is indicated by a change in both internal and external market development. The hotel organisation is in charge of creating the company's financial plan for the upcoming fiscal year. The annual budget is created by the hotel, so a bottom-up approach is taken.

The managers of the hotel company's departments use budgeting and planning to develop their departmental budgets, which are then incorporated into the overall budget. The channel manager receives a general budget to guide the supervisory board's approval and acceptance. The researched and approved budget for the hospitality industry for a specific hotel organisation is constant. resulting in the development of the ultimate business plan for the forthcoming fiscal year.

By taking into account the values of income and costs for the organisational unit, budgeting in a particular hotel organisation aims to achieve the desired final result for the company. Operating and capital budgets are created, with the operational budget including revenue and expenses, specifically for the hospitality industry. The capital budget, on the other hand, includes expenditures for the hotel organisation that are regarded as being part of the budget for carrying out inventory purchases, machinery maintenance, and urgent expenditures.


References

 

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Gupta, V., 2019. The influencing role of social media in the consumer’s hotel decision-making process. Worldwide Hospitality and Tourism Themes.

Gursoy, D., 2019. A critical review of determinants of information search behavior and utilization of online reviews in decision making process (invited paper for ‘luminaries’ special issue of International Journal of Hospitality Management). International Journal of Hospitality Management, 76, pp.53-60.

Ho, C.Y., Tsai, B.H., Chen, C.S. and Lu, M.T., 2021. Exploring green marketing orientations toward sustainability the hospitality industry in the COVID-19 pandemic. Sustainability, 13(8), p.4348.

McCartney, G. and McCartney, A., 2020. Rise of the machines: towards a conceptual service-robot research framework for the hospitality and tourism industry. International Journal of Contemporary Hospitality Management.

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Wen, H., Li, X. and Kwon, J., 2019. Undergraduate students’ attitudes toward and perceptions of hospitality careers in Mainland China. Journal of Hospitality & Tourism Education, 31(3), pp.159-172.

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