Changing Role of Hospitality It

Changing Role of Hospitality IT

Information management systems in the hospitality industry have steadily evolved from the hotel telephone switchboards and paper ledgers. Today's managers in hospitality have information and data instantly at their fingertips, which gives them heightened situational awareness to make decisions based on a complete picture of the company's issues. The consumer demand for ever more advanced services has required managers to stay on the cutting edge of information technology. Managers are now able to leverage information technology due to the ease in which today's information systems convert data into useful information; maximizing the company's returns on investment. This paper will define the changing role of information technology in hospitality.

According to DiPietro & Wang (2009), "The use of technology has changed the way that the world does business and the role of technology in the hospitality industry has changed the way that practitioners do business, the way that academics teach about hospitality operations, and the way that guests perceive of and deal with organizations. Despite the fact that technology has become an integral part of the way that organizations operate, this theme issue was put together in order to illuminate the changes in the lodging and restaurant segments of the hospitality industry related to technology" (para. 2).

The revolution in e-business experienced worldwide for the past decade has forced the hospitality business to review, revolutionize, and re-engineer the normal approaches of the past to successful enterprise. Competition and globalization have also made it imperative that they seek more innovative ways of managing common administrative functions as cost-effectively, seamlessly, and smoothly as possible. Enterprise resource planning systems such as PeopleSoft from Oracle, have allowed companies to achieve the goals and capabilities through enhanced human resources management, financial management, and supply chain management to name a few.

Human resource management decisions affect the legal compliance, quality, and performance of the hospitality industry. Hospitality businesses have to be versed in employment law and human resource policies covering training, performance appraisal, recruitment, compensation, ethics and social responsibility, special issues, and environmental and safety concerns. Information technology has changed human resource management through e-recruitment systems, applicant short-listing on-line, on-line training, pre-employment checks, electronic payroll, employment data, recruitment administration, and references. Routine tasks have been automated through technology, freeing human resource managers to solve more complex tasks. Information technology has also provided a greater amount of information for managers to base their decisions upon. "From recruiting and managing talent, to accurately forecasting future workforce needs, PeopleSoft Human Capital Management enables you to proactively manage HR operations while focusing on strategic business initiatives" (Oracle, 2012).

Solid financial management is the basis any successful business, the hospitality industry is no exception. The most effective hotels are managed to profitability through sound