HILTON HOTELS CASE
Business Context/Key Business Drivers
Hilton Hotels is one the biggest lodging company worldwide and has been recently acquired by Blackstone Group. In 2007 Hilton’s portfolio characteristics are:
• close to 3,000 hotels between all its brands;
• Properties can be: a) directly owned; b) managed; c) franchised. The latter is the most common solution;
• covers almost the possible spectrum of lodging.
The IT function is considered part of the core business and the IT is considered as a source to increase revenues instead of a merely cost function.
Hilton’s CIO developed OnQ platform to manage all the information flows inside the organization in order to serve the customers. In particular OnQ is:
• a custom built Enterprise System;
• required consistent investments (close to 200 Millions $) and a considerable maintenance cost (60 Millions/year);
• kept in house because Hilton believes its capabilities generate a competitive advantage.
One of the applications supported by OnQ is the CRM program that manage all the information and preferences of Hilton’s customers.
OnQ and CRM were implemented to :
• standardize the service level in all the hotels in the different brands;
• provide a holistic view of the customers;
• track and make easily available information about the customer’s preferences in order to enhance the service level through:
o service recovery;
o customer analytics;
o timely feedback of serice levels (SALT).
• Increase ROI in Call Center’s operations (reduce average single call time);
• Improve efficiency in staffing through pre assignments;
• Enable Hilton to open hotels at quick pace.
The key challenge Hilton faced to achieve its goals was the local implementations that could have affected the service delivery because of:
• human factor due to:...
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