business intelligence: advanced analytics in competitive ... · produced by hospitality financial...

Produced by Hospitality Financial and Technology Professionals

Business Intelligence: Advanced Analytics in

Competitive Environments

Tuesday, June 22, 2004


YOUR MISSIONYOUR MISSION

• CONDUCT RECONAISSANCE• GATHER INTELLIGENCE• DISCOVER SECRETS• UNCOVER THE TRUTH• LOOK CLOSER

• ALL IS NOT AS IT MAY SEEM


Mission AgendaMission Agenda

• Dossiers: Agent Introductions• BI Classified• Agent Interrogation• Mission Objectives • Debriefing <Case Studies>• Beyond Business Intelligence • Audience Interrogation


Mission ObjectivesMission Objectives

• Define meaningful information requirements

• Evaluate modern tools that support them • Understand the relationship between quality of data and improved forecasting

• Identify and respond to competitive opportunities and threats

• Develop advanced guest intelligence• Real-time verses right-time analytics and response capabilities


GET SMART!GET SMART!


DOSSIERSDOSSIERS<AGENT INTRODUCTIONS><AGENT INTRODUCTIONS>


Agent M. Agent M. DoberDober

Agent L. PhillipsAgent L. Phillips

Agent G. VermaAgent G. Verma

Agent E. Ivey (Interrogator)Agent E. Ivey (Interrogator)


BUSINESS INTELLIGENCE BUSINESS INTELLIGENCE CLASSIFIEDCLASSIFIED


BI ExposBI Exposéé

Business intelligence (BI) applications are decision support tools that enable real-time and interactive access, analysis, and manipulation of corporate information.

{Marketing, revenue, yield, transactional, ancillary services, customer behavior, booking trends, asset maintenance, key performance indicators, expense ratios, and/or employee productivity data}


Secret to Successful Secret to Successful BI MissionsBI Missions

Requires a coordinated effort across many dimensions

ØPeopleØProcessØTechnologyØData


BI BenefitsBI Benefits

• Leverage information from multiple sources and operating entities

• Enable personnel to make more accurate, timely, repeatable business decisions across the organization and not just selected functions

• Minimize decision costs associated with:– Poor decision making capabilities – Slow decision making processes– Inaccurate core data– Wrong people empowered to provide critical info


BI BenefitsBI Benefitscontinuedcontinued

• Accessibility and visibility by the masses to transactional and operational data in order to understand trends and analyze relationships

• Provide intelligence on every desktop to target and empower the right people with the right information


Defining BIDefining Business Defining Business IntelligenceIntelligence

Data ManagementData Management

Data Mining and AnalyticsData Mining and Analytics

Information DeliveryInformation Delivery

Globalization

Globalization

Business Specialization

Business Specialization

Inte

grat

ion

Inte

grat

ion

Secu

rity

Secu

rity

Per

form

ance

Per

form

ance


General User

Power / IT User

Executive

Slice & Dice and Report Generator at the Data-Level

Aggregate Information via a dashboard or portal

In the hospitality industryin most cases unaware of what

to do with the information

In the hospitality industryin most cases an Army of One

Typical Information Typical Information User ModelUser Model

Information Consumer via Reports or Actionable Tasks

Buyer Decision Drivers


Vendor LandscapeVendor Landscape

Enterprise Applications

Oracle SAP

Niche Applications

Cognos

Business Objects (CD)

Hyperion (Brio)

MicroStrategy

SAS

SPSS

Informatica

Group 1

Clairvoyix

Data WarehouseVendors

SAS

SAP

Teradata

IBM

Informix

Microsoft

DatabaseVendors

Oracle

Sybase

Market Landscape

Siebel

Datavision Technologies

ApTech

Dimensional Insight

HIS


AGENT INTERROGATION:AGENT INTERROGATION:


MISSION OBJECTIVES:MISSION OBJECTIVES:


Meaningful Information Meaningful Information RequirementsRequirements

Defining meaningful requirements is dependent upon business strategy and operational objectives

• Real estate investment –drive revenues and maintain the asset and competitive position

• Multi-brand management company - drive revenues, leverage brand resources, control expenses, centralize administration

• Luxury/service oriented properties – please the guests, keep the most profitable ones returning, anticipate changes in consumer expectations and maintain the asset


Data Quality & Data Quality & ForecastingForecasting

• More than a quarter of critical information at Fortune 1000 companies is considered inaccurate or incomplete.

• Data quality problems are most often responsible for the failureof business intelligence and CRM initiativesSource: Gartner Group

• A surprising number of people spend the equivalent of a full work day per week trying to find electronic information.

• Large majority are dissatisfied with their search experiences.Source: Delphi Group

• Throwing technology at data quality issues will not yield positive long term results.


QUALITY OF DATA QUALITY OF DATA AND DATA FLOWAND DATA FLOW

PMS

PMS

PMS

BB--OORe-keying

Old Data FlowOld Data Flow

PMS

PMS

PMS

BB--OO

New Data FlowNew Data Flow

Business Intelligence


Responding to Responding to Opportunities & ThreatsOpportunities & Threats

• Leveraging changing market dynamics using an intelligent and rapid decisioning process

• Mitigating risk through recency and frequency of assessment of exposure to the business

• Embedding logic that helps preserve knowledge capital, at risk with high turnover, in perpetuity

• Creating a culture of intelligence gathering and knowledge seeking


Advanced Guest Advanced Guest IntelligenceIntelligence

OUTWIT

OUTPLAY

OUTLAST Consistency

Application

Raw Intelligence

Standardized CodesNaming ConventionsMapping/Look-up Tables

Top Secret

DATA



• Data Enhancements

• Data Applications

– Domestic (in-house)• New Data Dimensions

– Foreign (third party)• “ICS”

– Domestic/Foreign• Multiple Views NOT Multiple Sorts• Campaign Management• Trend Analysis• New Business Opportunities• Predictive Modeling



COMBINED YEARS # OF GUESTS % # OF VISITS %1 VISIT 91,700 88.3% 91,700 74.5%2 VISITS 9,011 8.7% 18,022 14.6%3 VISITS 1,819 1.8% 5,457 4.4%4 VISITS 658 0.6% 2,632 2.1%5 VISITS 253 0.2% 1,265 1.0%6+ VISITS 392 0.4% 3,956 3.2%

TOTAL 103,833 100.0% 123,032 100.0%

ONE VISIT GST 91,700 88.3% 91,700 74.5%REPEAT GST 12,133 11.7% 31,332 25.5%OVERALL REPEAT 103,833 100.0% 123,032 100.0%

What’s our repeat %?



CAMPAIGN CAMPAIGN

DESC

DAY/ DATE SENT

START DATE

END DATE

SUBSET CONTACTSRESP/ VISITS

CONV %

TOTAL $ COSTS NET $ AFTER COSTS

NET $ PER

CONV

EX_04 SPRING 03SOC GSTS 11,334 189 1.7% $287,106 $10,110 $276,996 $1,466EX_04 SPRING 02_03 SPRING GRP 4,944 167 3.4% $153,883 $4,410 $149,473 $895EX_04 SPRING 01_02 SOC GSTS 15,930 105 0.7% $160,412 $14,210 $146,202 $1,392EX_04 SPRING 03 GLF ADMY 2,004 92 4.6% $147,188 $1,788 $145,400 $1,580EX_04 SPRING 03 INQS DD 7,059 25 0.4% $43,467 $6,297 $37,170 $1,487EX_04 SPRING 99_00 SOC GSTS 6,803 20 0.3% $44,938 $6,068 $38,870 $1,944EX_04 SPRING 04 INQS DIR 2,385 6 0.3% $8,477 $2,127 $6,350 $1,058EX_04 SPRING 03 INQS MAG1 494 0 0.0% $0 $441 -$441 $0EX_04 SPRING 03 INQS MAG2 41 0 0.0% $0 $37 -$37 $0EX_04 SPRING 03 INQS MAG 3 40 0 0.0% $0 $36 -$36 $0EX_04 SPRING 03 INQS MAG 4 353 0 0.0% $0 $315 -$315 $0EX_04 SPRING 03 INQS MAG 5 182 0 0.0% $0 $161 -$161 $0

51,569 604 1.2% $845,471 $46,000 $799,471 $1,324Total

2004 SPRING SOCIAL

SPRING SOC MAIL GIFT CARD

3/14/04 5/26/041/22/04

Did that direct mail campaign work?



Nielsen DMA VISITSRM NTS

TOTAL $AVG LOS

AVG VISIT $

AVG RM NT

$

1 NEW YORK 101 232 $175,691 2.8 $1,740 $756

2RALEIGH - DURHAM (FAYETTEVILLE) 60 80 $37,278 1.6 $621 $468

3 CHARLOTTE 53 79 $40,435 1.7 $763 $512

4WASHINGTON DC (HAGERSTOWN) 30 69 $57,715 2.6 $1,924 $843

5 PITTSBURGH 24 62 $33,907 3.0 $1,413 $547

6 HOUSTON 16 50 $34,789 3.4 $2,174 $693

7GREENSBORO - HIGH POINT - WINSTON-SALEM 30 44 $28,864 1.8 $962 $658

8 PHILADELPHIA 17 43 $29,852 2.9 $1,756 $702

9 CHICAGO 15 40 $28,947 3.7 $1,930 $724

10 ATLANTA 22 38 $21,506 1.7 $978 $566

11 BOSTON (MANCHESTER) 20 38 $41,082 2.6 $2,054 $1,081

12 CLEVELAND 17 37 $16,018 3.2 $942 $439

13 RICHMOND - PETERSBURG 11 23 $16,116 2.4 $1,465 $701

14 KANSAS CITY 8 23 $13,101 3.0 $1,638 $570

15 LOS ANGELES 6 18 $17,582 3.3 $2,930 $977

16 DALLAS - FORT WORTH 8 17 $8,787 2.3 $1,098 $517

17

GREENVILLE - SPARTANSBURG - ASHEVILLE - ANDERSON 7 17 $7,903 2.9 $1,129 $465

18 MIAMI - FORT LAUDERDALE 5 16 $10,523 3.2 $2,105 $658

19 BALTIMORE 7 15 $10,574 2.7 $1,511 $729

20 DETROIT 8 14 $9,957 2.1 $1,245 $711

All Others 139 284 $204,844 2.6 $1,474 $682

Totals 604 1,239 $845,471 2.5 $1,400 $683



New York MSA

Block Level (1)

Market Potential

<5%



WEEKPART VISITS RM NTS TOTAL $ AVG LOSAVG

VISIT $AVG RM

NT $

Extended 31 121 $91,739 5.1 $2,959 $760Midweek 376 750 $480,784 2.3 $1,279 $641Weekend 197 368 $272,948 2.4 $1,386 $742Totals 604 1,239 $845,471 2.5 $1,400 $683

MEAL PLAN

VISITS RM NTS TOTAL $ AVG LOSAVG

VISIT $AVG RM

NT $

BB 32 47 $14,896 2.0 $466 $318EP 74 134 $39,347 2.1 $532 $293FAP 67 189 $112,803 3.2 $1,684 $598MAP 430 868 $678,062 2.4 $1,577 $781Totals 604 1,239 $845,471 2.5 $1,400 $683



RM NTS

% of RM NTS

RM NTS

% of RM NTS

RM NTS

% of RM NTS

RM NTS

% of RM NTS

RM NTS

% of RM NTS

RM NTS

% of RM NTS

RM NTS

% of RM NTS

3-04 16 15.1% 14 13.2% 44 41.5% 33 31.1% 0.0% 0.0% 106 100%4-04 54 13.8% 80 20.5% 74 19.0% 144 36.9% 39 10.0% 0.0% 390 100%5-04 102 15.5% 70 10.6% 286 43.5% 96 14.6% 60 9.1% 45 6.8% 658 100%6-04 11 12.9% 8 9.4% 30 35.3% 11 12.9% 18 21.2% 8 9.4% 85 100%

Total-04 182 14.7% 172 13.9% 432 34.9% 283 22.8% 117 9.4% 53 4.3% 1,239 100%

Totals31-60 Days 61-90 Days 91-180 DaysFiscal

Period/ Year

0-7 Days 8-14 Days 15-30 Days


Business Intelligence

Data Warehouse

Data MartOperationalData Store

OLTP

Latency Factor

T – 1 T – 1/2 day T – 1 hour T T + 1 T + 2 T + 3 ………

Historical

Analytics

Real-Time

Analytics

Predictive

Analytics

Information Delivery

Data Mining & Analytics

Data Management

Real Time vs. Real Time vs. Right TimeRight Time

What many vendors call “real-time” is real-time access to historical analytics


AGENT DEBRIEFINGAGENT DEBRIEFING<CASE STUDIES><CASE STUDIES>


DEBRIEFINGDEBRIEFINGCHS-Clairvoyix Corporate Hospitality• Provides/Applies: data cleansing, householding, data enhancements, calculations, business rules, etc.

• All about the guest -returns only guest/customer counts

• Queries the data – Boolean Logic

• Generates lists for traditional mailing and email

• Email campaign fulfillment• Tracks direct marketing communication• Campaign management• Provides preformatted reports


DEBRIEFINGDEBRIEFING



Dimensional Insight• OLAP Tool – Stand alone robust business analyzer

• Data Models/Cubes• Enhanced ad hoc reporting• Complete report flexibility• Numerous views of the data• Drill up/drill down• Allows for grouping of like data• Report Writer/Graphs



Developing a successful business plan around technology initiatives

• Determine your strategic goals for investing in a BI solution

• Develop a comprehensive enterprise BI strategy

• Complete a BI gap analysis


Barriers to BI Barriers to BI Adoption in the Adoption in the

Hospitality IndustryHospitality Industry

• Budget Constraints• Belief that operational systems provide adequate metrics

• Misconception that EIS/reporting equals analysis

• Lack of detailed operating data; inability to extract from older, proprietary database structures

• Lack of integration; poor data relationships due to disparate transactional systems

• Data-phobic users• Change management


BEYOND BUSINESS INTELLIGENCE:BEYOND BUSINESS INTELLIGENCE:


Evolving Business Evolving Business IntelligenceIntelligence

• Shifting Focus to Business Performance Management– A closed-loop process that facilitates

strategic organizational planning, monitoring the performance of these plans and analysis of issues for maximum effectiveness of the plan

• Ultimate Goal of Knowledge Management– The conscious and comprehensive gathering,

organizing, sharing and analysis of knowledge capital by an organization

• Walk before you run – There is a natural evolution from BI to the

more sophisticated practices of BPM and KM– Without successful BI initiatives, the

transition to BPM and KM will be very difficult


BI TrendsBI Trends

• Not just real-time access, but true real-time analysis

• Developing Web services-user friendly architectures

• Packaged applications for rapid implementation and industry practice awareness

• Data management as a fundamental part of the implementation

• Packaging a portal• Placing bets on machine-to-machine interfaces • Increased emphasis on usability by variety of

users• Continued consolidation among technology

providers

Provider Trends


AUDIENCE INTERROGATIONAUDIENCE INTERROGATION


MISSION ACCOMPLISHEDMISSION ACCOMPLISHED

THANK YOU FOR YOUR COOPERATIONTHANK YOU FOR YOUR COOPERATION

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