Business Information Systems – Hilton Case Essay

• Hilton’s aggressive expansion strategy that made it one of the biggest hotel chains worldwide with the acquisition of Promus, reaching nearly 1,700 properties. At this point in time, the management decided that a company of this size would need a tool to handle all its internal information and operations. The need for an integrated solution with a centrally managed access to all relevant information from any Hilton property.

A system with these characteristics would allow the company management to have a global vision on the complete customer life-cycle, making it possible to measure and control ratios like customer profitability, customer value, ranking of hotels according to occupancy or customer satisfaction, etc. Consolidation of customer information across different brands was one of the main reasons for the implementation of OnQ with the beginning of the portfolio diversification process, assuring the company presence in different industry segments. For the management of the 8 different company brands, it was crucial to have all customer information centralized in one system.

The consolidation of customers’ data brought two major advantages o Generate cross-selling opportunities (that mounted to revenues of $750 in 2007) o Homogenization of customer services standards as an empowerment to solidify the relationship with the best customers o Produce arrival reports seen as main differentiation from competition, allowing employees to foresee customer preferences, and to act in accordance to them o Generate and measure SALT surveys serving as a base for the future customer strategy of the company • IT infrastructure viewed by the management as a source of competitive advantage that would take years for the competitors to copy, and enabling Hilton with the opening of more hotels, in a shorter time limit, and with more delivery consistency.

The OnQ platform allowed detecting problems with customer handling and reacting upon them at each customer touch point which generated the possibility of regaining customers’ confidence and loyalty. • Hilton’s “no outsourcing” strategy was another reason for the development and implementation of OnQ. Hilton’s IT department included 700 fixed employees with the clear objective of keeping the know-how in-house and not risking to leave the continuity of business operations in the hands of external providers. • With an end-to-end customer relationship management solution, enabling the customer experience to begin even before check-in, Hilton positioned itself as an innovative and a customer centric company thinking ahead of competition and assuring its brand leadership in the future.