Exam - digital transformation in hospitality

Question 1

Digital transformation in hospitality in general

Answer 1

Frame the customer and consumers in general and in the hospitality sector.

The course highlights how new technologies (e.g. cloud, big data, robotics, block chain) are transforming the way companies relate with their customers and consumers.

Question 2

Environmental drivers

Answer 2

External influences include worldwide political, economic and social conditions affected by the conflict between Russia and Ukraine, the ongoing impact of the COVID-19 pandemic and other factors.

These factors will significantly change the global business world in the coming years. The most important external influences for 2023 are:

• Cybersecurity and risk - scaling and changing threat environment
• Digital business - bridge to the future enterprise
• Meaningful intelligence - differentiated decision-making power
• Mainstream ESG - sustainability is measured and mandatory

Question 3

Main learning from lection 1

Answer 3

• The business model and the digital business model are basically the same – just with technology included
• Technology can give us new segments
• Digital will help to improve the revenue stream

Question 4

IDC MaturityScape level

Answer 4

Seeding digital
Enabling digital
Coordinating digital
Integrating digital
Realizing digital

Huske remse: Signe Elsker Citron Is Remonce

Ad hoc
Opportunistic
Repeatable
Managed
Optimized

Huske remse: Anders og Rasmus måler orme

Represent the simplest, unstructured, ad hoc stage to the advanced, systemized stage

Each level builds on the capabilities of the one before

Question 5

Seeding digital - Ad hoc

Answer 5

No widely understood

No overall digital strategy or road map, or technological enablement in place

Question 6

Enabling digital - Opportunistic

Answer 6

Fragmented overall digital strategy

DX with corporate visibility

Multiple digital projects in processes at the functional and line-of-business levels

Emphasis on operating efficiencies

Question 7

Coordinating digital - Repeatable

Answer 7

Enterprisewide imperative with a single digital strategy in place with established implementation road maps

Actively building out digital platform, processes, and capabilities, in early stage realization

Moving to the next stage: Focus on innovation and integration

Customer –> Gather feedback from customers including Net Promoter Scores, customer panels, surveys, and other methods to better understand what your customers are thinking and saying about you. Incorporate this feedback into improving customer touch point experiences.

Question 8

Integration digital - Managed

Answer 8

DX is embedded in the entire company; a cultural shift has occurred; digital - the new normal

An company-wide digital platform in place that enables digital capabilities at speed, scale and agility

Question 9

Realizing digital - Optimized

Answer 9

Future enterprise realized

Digital achieved at scale

Talent excellence

Change management

Collaboration

Innovation culture prioritized

Customer excellence delivered

Question 10

3rd Platform

Answer 10

In just a few short decades, information technology (IT) has moved from the back office to integrate itself into almost every aspect of people’s business and personal lives, driven by 3rd Platform technologies.

A strategy is needed

Question 11

The IDC MaturityScape for future enterprise

Answer 11

Provides updated snapshots of the stages of maturity that a business must achieve across five dimensions where digital capabilities are required for successful digital transformation:

• Future of culture: Leadership at scale
• Future of customers: Empathy at scale
• Future of intelligence: Insight at scale
• Future of operations: Resilience at scale
• Future of work: Work model at scale

Question 12

Digital and capabilities

Answer 12

The ability to identify the benefits of being digitally skilled (or mature) is a work in progress.

Every year, new opportunities arise. Some, but not all, will be useful for some, but not all, businesses. Depend on, among other things:
- The industry they are in
- The flexibility of their products and services to incorporate DX
- What their competitors are doing

Question 13

PESTEL

Answer 13

Our lives are deeply connected to technology. This dependency is driven by external factors on a global scale.

To understand these drivers, we use the PESTEL framework. Imagine a company in Portugal that wants to expand globally. PESTEL helps analyze political, economic, social, technological, environmental, and legal factors that influence this decision.

• Political factors involve government policies that affect technological developments.
• Economic factors, like global markets and trade agreements, shape the technical landscape.
• Social factors, such as cultural trends, influence how technology is adopted.
• Technological factors drive innovation and digital infrastructure development.

For businesses expanding globally, Pestel is essential. It helps navigate the complex factors that influence our dependence on technology, providing a balanced understanding outside of our current surroundings.

Question 14

The T in PESTEL

Answer 14

The “T” stands for “Technology,” and it involves evaluating how technological factors can impact an organization’s business environment.

1. Innovation and Research & Development (R&D): Access to advanced technology can enable innovation and foster product development. Organizations that invest in R&D can stay competitive by introducing new and improved products or services.
2. Automation and Efficiency: Automation technologies can enhance efficiency, reduce costs, and improve productivity.
3. Data Analytics and Big Data: Leveraging big data and analytics can provide valuable insights for strategic decision-making. Understanding customer behavior and market trends can lead to more targeted marketing and operational improvements.
4. Communication and Connectivity: Enhanced communication technologies foster collaboration, both internally and externally. This can lead to improved business relationships, faster decision-making, and better customer service.

Stay competitive and resilient.

Understanding technological opportunities and avoiding potential threats requires strategic planning, adaptability, and a clear understanding of the changing technological landscape. The value lies in leveraging technology to drive innovation, increase efficiency, and navigate the challenges of the digital age.

Question 15

Programs

Answer 15

Achieving digital transformation requires a strategic alignment of the organization’s vision and overall strategic priorities. Programs can serve as strategic actions to drive this transformation:

Business model innovation

Connected guest and experiences

Operational efficiency and agility

Question 16

Programs: Business model innovation

Answer 16

Objective: Process optimation for streamlined operations

Approach: Using advanced technologies and automation for higher efficiency and agility

Result –> cost savings, reduce errors and develop agility

Question 17

Programs: Connected guest and experiences

Answer 17

Objective: introduce autonomous for interactive and personalized experiences

Approach: Increase customer engagement through an interactive and practical environment

Result –> higher brand awareness, customer retention , satisfaction

Question 18

Programs: Operational efficiency and agility

Answer 18

Objective: Invest in technology modernization, agile workflows, and robust cuber-security.

Enhance internal efficiency and responsiveness to market trends and customer needs

Question 19

Use cases

Answer 19

Proces automation

Autonomous service

Agile infrastructure

Question 20

Process automation

Answer 20

Objective: Enhancing management system for operational effectiveness

Benefits: Improved control and execution of operational processes, cost savings, and reduced errors

Question 21

Autonomous service

Answer 21

Objective: Improving the way we interact with customers so they are satisfied and have practical and meaningful experiences.

Benefits: Increased interactivity, practical experiences, and higher customer satisfaction

Question 22

Agile infrastructure

Answer 22

Increase efficiency and responsiveness for a holistic transformation

Benefits: Enhance operational efficiency, responsiveness and service levels

Question 23

Future of culture: Leadership of scale

Answer 23

Digital leaders who foster goal personalization increase collaboration, transparency and knowledge sharing, leading to increased engagement, brand awareness and business results

Question 24

Future of customer: Empathy of scale

Answer 24

The ability to understand the individual customer’s needs, motives, behavior and feelings and to respond empathetically based on this knowledge to the customer –> becomes able to engage with the future customer

Changes in the customer, the technologies they use to engage with organizations, the technologies organizations use to respond, and the organization’s view of the customer.

Question 25

Future of intelligence: Insight at scale

Answer 25

Future of intelligence aims to connect people and computers. Contextual collective intelligence helps innovate smart products and services and realize increases in economic and social value.

Question 26

Future of operations: Resilience of scale

Answer 26

The future of operations has moved from a culture of operational expertise to robust operations in a complex world. Resilience is driven by fast decision-making. Resilient operations address increasing complexity in customer needs and drive innovation throughout the ecosystem, from customer requirements to a sustainable value chain.

Question 27

Future of work: Work model at scale

Answer 27

Transforms worker behaviors and skills & organizational culture.

Focus on work culture (how to retain a highly engaged and motivated workforce), workspace (flexible and highly connected working environment whereby workers enjoy mobility, collaboration, and access to the resources they need), and workforce (application of intelligent technologies to reshape the way work tasks are performed).

Question 28

Key takeaways

Answer 28

Create your long-term digital roadmap by visualizing the strategy and organizing the roadmap according to the time frame. Identify and prioritize use cases in the process.

Break down your strategic DX initiatives into smaller parts (use cases) during the development of your DX roadmap.

Consider 3rd platform and innovation accelerator technologies such as cloud, big data and analytics, cognitive computing, IoT and AR/VR. These form the core of a true digital transformation effort.

Question 29

Environment drivers - Understand the major drivers of digital transformation, in particular the one related to Customers and Consumers (engagement Reimagined - From Responsive to Anticipatory).

Answer 29

Environmental drivers of digital transformation refer to the external factors and influences that are pushing organizations to develop their strategies, technologies and operations. A key driver, particularly around customer and consumer engagement, is the shift from a responsive model to an anticipatory model.

In the traditional responsive model, companies react to customer actions or needs after they arise. This approach often involves addressing problems or providing solutions once they are first come to the company’s attention. However, the landscape of customer expectations is changing fast. Customers are now demanding a more proactive and personalized interaction with businesses.

The anticipatory model involves using advanced technologies, data analytics and predictive algorithms to foresee customer needs and preferences before they are even expressed. By using insights from various sources, such as customer behavioural data, social media and market trends, organizations can offer tailored and timely solutions, products or services.

This shift towards anticipatory engagement is driven by several factors:

• Increasing customer expectations: Customers expect businesses to understand their preferences, foresee their needs and provide seamless experiences.

Advancements in technology: The availability of sophisticated technologies, such as artificial intelligence (AI), machine learning and data analytics, enables organizations to analyze large amounts of data and predict future trends.

Competitive landscape: Businesses that can proactively meet customer needs gain a competitive advantage. Predictive engagement drives customer loyalty and satisfaction.

Real-time decision-making: The ability to make real-time decisions based on predictive insights enables organizations to remain agile and responsive in a dynamic market.

Personalization: Predictive engagement enables a higher degree of personalization, where products and services are tailored to each customer’s preferences.

Question 30

Digital platforms - Understand the major characteristics of the Digital Platforms, particularly the 3rd platform and innovation accelerators.

Answer 30

1 rd platform: Informatization

2 rd platform: Digitalization

3 rd platform: Transformation

4 rd platform: Innovation accelerative

The major 3rd Platform technologies; Cloud, Big Data, Social, and Mobile.

Mobility: Smartphones, tablets, and mobile devices enable constant interaction with different stakeholders and promote tailored digital experiences.

Big data & analytics: The amount of data that can be collected and analyzed to make better decisions is already vast and growing. To be successful in the DX economy, organizations need to view data as a strategic asset, not only for internal decision support, but also to generate revenue or deliver other desired value.

Cloud: Cloud services will become much more distributed, secure, and industry specialized.

Social: Social is the connective branch that better aligns businesses with stakeholders, in addition to aligning internal business units and lines of business. Now is the time for enterprises to focus on how to thread social networks throughout consumer experiences.

Digitally motivated businesses are getting more precise in their messaging, targeting customers’ needs, and bringing new experiences to market through digital transformation (DX).

Cognitive/Artificial Intelligence (AI): Adding cognitive/AI components and functionality to their products to provide predictions, assistance, recommendations, and guidance on tasks within the software.

The Internet of Things (IoT)

The next generation security: Security is a crucial issue for all organizations. The large amount of data collected and used for business purposes today, and the increasing number of high-profile security breaches reported globally, raises concerns in several areas.

Robotics

Augmented and virtual reality (AR/VR)

3D printing

Question 31

Future enterprise - Understand the 5 major domains related to Digital Transformation.

Answer 31

Seeding / Ad hoc:
No overall digital strategy or roadmap in place.

Enabling / Opportunities:
Fragmented overall digital strategy.
Multiple digital projects in processes at functional and business level.

Coordinating / Repeated:
The firm has a clear digital strategy in place, complemented by clear roadmaps for implementation.
Actively building digital platform, processes and capabilities in the early adoption stage.
Next level –> focus on integration and innovation. Customer feedback.

Integrating / Managed:
Digital transformation is embedded in the entire company.
Cultural shift.
Digital is the new normal
The company enables digital capabilities at speed, scale and agility.

Realizing / Optimized
Future enterprise
Digital achieved at scale
Collaboration
Innovation culture prioritized

Represent the simplest, unstructured, ad hoc stage to the advanced systemized stage.

Each levels build on the capabilities before.

Maturity assessment.

Question 32

Future of customers and consumers - Understand the main elements of ter Future Of Customers and Consumers.

Answer 32

Future of culture - Leadership of scale: Digital leaders who foster personalization, increase collaboration, transparency and knowledge sharing, leading to increased engagement, brand awareness, and business results.

Future of customers- Empathy of scale: The ability to understand the individual customer’s needs, motives, behavior,and feelings.
Respond with empathy based on this knowledge to the customers

Changes in the customer, the technologies they use to engage with organizations, the technologies organizations use to respond, and the organization’s view of the customer.

Future of intelligence - Insight at scale: Aims to connect people and computers. Contextual collective intelligence helps innovate smart products and services and realize increases in economic and social value.

Future of operations - the resilience of scale: The future of operations has moved from a culture of operational expertise to robust operations in a complex world. Resilience is driven by fast decision-making. Resilient operations address increasing complexity in customer needs and drive innovation throughout the ecosystem, from customer requirements to a sustainable value chain.

Future of work -

Question 33

The industry as a whole is moving into an Age of Experiences

Answer 33

84% of customers believe that experience is as important as product or service

92% of customers report that customer experience (CX) has a great influence on their future purchase decisions

Over 80% of enterprises globally report that CX programs will be a priority investment over the next two years

BUT…. Organizations also see CX as a vehicle to improve internal operational efficiency

Question 34

Customer experience improvement initiatives

Answer 34

Advertising and marketing
Customer satisfaction and trust
Customer data and intelligence
Implementation and customer support
Sales and renewals

!!!! Strategically oriented CX organizations are more inclined toward customer retention initiatives!!! than Acquisition

Question 35

What are your company’s top 3 challenges in transforming and improving your customer experience?

Answer 35

Differing priorities across teams/departments

Siloed customer data

Proliferation of CX tools

Other near-term priorities

Infrastructure gap to support a digital enterprise

Skills and people resources to improve CX