Hilton

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Enterprise Resource Planning ERP is an abbreviation for enterprise resource planning. ERP software is used to manage the business. It integrates all facets of an operation, including product planning, development, manufacturing processes, human resources, financials and sales and marketing. Today's ERP solutions are designed to help you to improve the operational efficiency of business resources. Businesses use ERP systems to integrate all its business processes into a single system to efficiently and effectively manage business goals. Enterprise Resource Planning (ERP) is the finest expression of the inseparability of business and information technology. ERP can help business enterprises gain a competitive advantage by integrating all business processes and optimizing available resources. Typically, ERP systems include, Financials, Supply Chain Management (Procurement, Inventory and Stores Management, Sales and Distribution, etc.), Manufacturing, Plant Maintenance, Human Capital Management (Human Resources, Payroll, Benevolent Funds, etc.), Project Management Systems, which work with each other in an integrated systems environment. It is not possible to think of an ERP system without a sophisticated information technology infrastructure. Incremental improvement in information technology and drastic reduction in prices of computers has made it possible even for small-to-medium size organizations to implement ERP solutions. ERP (Enterprise Resource Planning) systems typically include the following characteristics:  An integrated system that operates in (or near) real time without relying on periodic updates  A common database that supports all applications  A consistent look and feel across modules  Installation of the system without elaborate application/data integration by the Information Technology (IT) department provided the implementation is not done in small steps. ERP Modules ERP (Enterprise Resource Planning) typically consists of multiple enterprise modules that are individually acquired, based on what best meets the specific needs and technical capabilities of the organization. Each ERP module is focused on one area of business processes, such as product development or marketing.

An ERP system covers the following common functional areas. In many ERP systems these are called and grouped together as ERP modules:  Financial accounting  Management accounting  Human resource Management  Manufacturing  Supply chain management  Project management  Customer relationship management  Data services Customer Relationship Management CRM is an abbreviation for customer relationship management and is a phrase used to describe all aspects of interaction that a company has with its customer, whether it is sales or service-related. It's a business strategy that helps your business to better understand your customer, retain customers, provide excellent customer service, win new clients and increase profitably. Many aspects of CRM relies heavily on technology. CRM software will collect, manage and link information about the customer. You can use CRM software to create marketing campaigns, view a customer's entire of history of interactions with your business and use it to streamline daily business and sales tasks. Some of the more common ERP modules include those for product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR. Challenges of ERP Identified ERP limitations have sparked new trends in ERP application development. Development is taking place in four significant areas. Harmonization of ERP systems can be a mammoth task (especially for big companies) and requires a lot of time, planning, and money. High ERP switching costs can increase the ERP vendor's negotiating power, which can increase support, maintenance, and upgrade expenses. ERP can also cost more than less integrated or less comprehensive solutions and customization is often problematic. Extensive training requirements take resources from daily operations and Integration of truly independent businesses can create unnecessary dependencies.

Hoteling Industry and Key Performance Indicators Hilton Hotels is one of the market leaders in the hotel and gaming industry in the United States. Hilton is a well-known and distinguished name in fine hotels across the United States and worldwide. In 1999, Hilton expanded aggressively by acquiring the Promus Hotel Corporation, Hampton Inn and Suites, Doubletree Hotels, Embassy Suites Hotels, and Homewood Suites. With the 2006 acquisition of Hilton International, Hilton Hotels Corporation became a global force with more than 2,800 hotels in more than 80 countries throughout the world. The demographics for a diverse company such as Hilton offer a wide variety of customers. Hilton's target market includes the everyday business traveler, families on vacation, leisure travelers, and the convention business segment. Many travelers have different priorities when traveling to include visiting theme parks and beaches, shopping, dining, or other entertainment. The age of the traveler and their marital status and number of children can have a large impact on the vacation destinations of the consumer. Hence measuring performance in the Hoteling industry is not an easy task. KPI in Hoteling Industry commonly usually include:  Accommodation  Food and Beverage  Labor Cost  Profitability Ratios  Liquidity Ratios Hilton makes use of a number of key performance indicators like REVPAR, ADR and occupancy rates to determine its performance and form its future strategies. Hilton’s key performance indicators should go beyond ADR and occupancy and also measure food and beverage stock turnover ratios and labour cost per room. They also need to lay emphasis on measures like:  TREVPAR - Total Revenue per available Room  TREVPEC - Total Revenue per Client  GOPPAR - Gross Operating Profit per available rooms  REVPAM - Conference and Banqueting Revenue per available Square Meters  REVPASH - Food & Beverage Revenue per available seats and hour (per F&B outlet)

CRM at Hilton Hilton Hotels has adopted a CRM strategy out of necessity to cater for diverse segments around the world. Hilton Hotels’ implementation of "ONQ" is a new dimension of CRM system for providing the best hospitality services for its customers. OnQ is the IT centerpiece of a Hilton customer relationship management (CRM) strategy officially known as ‘customers really matter’. The strategy is pinned on the idea that employees, with a clearer idea of who customers are and what their past Hilton experiences have been, can engineer constant improvement. The system is geared towards meeting customers’ preferences, speeding their checkin g process, and in the future may allow Hilton to sell additional value-added products like theatre tickets based on show availability and guest interests. It can also tell the hotel chain when not to invest in a customer. The system will help manage who gets walked in an oversell situation. For OnQ to fulfil its mission, it needs to do more than deliver information: it must be a decision support tool. Implementing CRM at Avari One major hurdle would be to make the level of investment in technology that Hilton has made and overlook the database and make strategies accordingly, as this is a very expensive strategy. Implementing such a strategy could increase support, maintenance, and upgrade expenses.

 The Difference Between CRM and ERP http://www.webopedia.com/DidYouKnow/ Hardware_ Software / the-difference- between-crm-and-erp.html]  Sheilds, Mureell G., E-Business and ERP: Rapid Implementation and Project Planning. (2001) John Wiley and Sons, Inc. p. 9-10.  The Minefied of Harmonising ERP. [http://www.cfo-insight.com/reportingforecasting/forecasting/the-minefield-of-harmonising-erp/]

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