1. “The most valuable commodity I know of is information. Wouldn’t you agree. ” Gordon Gekko, the character played by Michael Douglas in the film Wall Street Chapter 1 The Information System

2. Shaped Data Decision Making Rules RAW DATA Reservations/Front Office/Sales/POS/Accounting, etc. INFORMATION Information Processing

3. Information Systems An information system(IS) is typically considered to be a set of interrelated elements or components that collect(input), manipulate(processes), and disseminate (output) data and information and provide a feedback mechanism to meet an objective.

4. Payroll System IS vsIT INFORMATION TECHNOLOGY Hardware Software Databases Networks Other related components Inventory System are used to build INFORMATION SYSTEMS Marketing System Customer Service System

5. Computer is defined… A computer is an electronic device, operating under the control of instructions (software) stored in its own memory unit, that can accept data (input), manipulate data (process), and produce information (output) from the processing. Generally, the term is used to describe a collection of devices that function together as a system.

7. Devices that comprise a computer system System unit (processor, memory…) Monitor (output) Speaker (output) Printer (output) Storage devices (CD-RW, Floppy, Hard disk, zip,…) Mouse (input) Scanner (input) Keyboard (input)

9. Computer system unit internal view

12. Information Processing Information Processing Phases: Input: Collection and conversion of data for processing. Processing: Performs work on data – calculating, classifying, sorting, and summarizing. Output: Preparation of processed information into a form acceptable for analysis. © 2008 Jupiter Images Corporation

13. Information Processing Information Processing Phases: Output:An effective information system will inform management when results deviate from predetermined goals. Feedback is necessary for operational control. An information system may be composed of many subsystems where the output of on subsystem often becomes the input into another. Storage: After data is processed, then is commonly stored. Operations need to accumulate historical statistics and financial totals for accounting purposes and to guage performance.

14. Input Devices Keyboard – Most widely used device for entering text and information. Mouse – Used in conjunction with the keyboard. Touchscreen– Popular input device used in various hospitality environments (e.g., restaurants). Click on this Video Link: An example of a multi-touch screen. Click on this Video Link: Learn about Microsoft’s Surface Computing. Voice Recognition– Used to book hotel rooms. A voice portalallows customers to access information from Web using a voice browser. Automatic speech recognition connects a user directly to the Web with voice prompts without a personal or handheld computer. Click on this Video Link: Tellme.com. Pen-based – Used to enter for various hospitality applications (e.g., entering a food order) on PDAs using a pen-like stylus. Other types of wireless handhelds can operate by single or multi-touch. Scanners and Bar-Code Readers– Used to identify luggage and inventory items. Radio-Frequency Identification– Used to provide hotel guests with keyless entry into hotel rooms. Click on this Video Link: “RFID Wine Selection and POS System.” Biometrics – Uses a person’s physical traits to restrict access to physical locations, equipment, and computer systems. Click on this Video Link: “The future of biometrics.”

15. I/O in Hospitality LCD (liquid crystal display (touchscreen) Hand Held Terminals Cash Register Point of Sales (POS) Bar Code Reader Scanner

20. Input Devices Barcode

21. Introduction to Computers: CPU Central Processing Unit– The heart of the computer where data is processed. Click on this Video Link: History of Intel CPU. A CPU consists of control and arithmetic/logic units and primary storage. Primary Storageconsists of random-access memory (RAM) and read-only memory (ROM). RAM is measured in bytes. Most computers come equipped with at least 512,000,000 bytes (512 MB). The number of bytes required depends on how much space the program and data occupy. Speed is measured in gigahertz (GHz) or million instructions per seconds (MIPS). It is important to make sure that the CPU has enough processing power to handle all system requests. The speed at which data travels is affected by the data busor size of the data path. A 64-bit bus can transfer data more quickly than 32-bit bus. The latest development is the multi-core CPU, which enables two (dual-core) or four (quad-core) CPUs to be integrated on a single processor chip. More RAM enables a program to run faster since more of it can be loaded into RAM. Windows 7requires at least 1 Gigabyte of RAM for it to run comfortably.

22. Introduction to Computers: Storage Devices Hard Disk- Most of the data processed by a computer resides in permanent or nonvolatile storage called a hard disk. The size of the hard disk depends on program and data space requirements. Typical capacity ranges from 80 gigabytes to over one trillion bytes or one terabyte (1 TB). Click on this Video Link: Look at the inside of a hard drive. USB Flash Drive- A miniature mobile device (16 MB to 4 GB) that is used to transfer data between a desktop computer and a notebook computer, or for personal backup needs. Magnetic Tape- Used for storing and backing up large amounts of data (up to 800 gigabytes) quickly and cost effectively. Optical Storage– Used an alternative to magnetic storage. Data is written to optical media (e.g., CD , DVD) with a laser for archival or backup purposes. Optical discs are more durable than tapes but slower than typical hard drive speeds and offer lower storage capacities. © 2008 Jupiter Images Corporation

23. Introduction to Computers: Output Devices Printers - Key factors to consider when purchasing a printer include print resolution (DPI) and speed (PPM), color, wireless and remote printing capabilities, paper handling, life expectancy, and cost. Two basic types of printers are impact (e.g., dot matrixfor food orders in the kitchen) and non-impact (e.g., thermal for producing restaurant checks, inkjet for generating business documents, and laser for printing guest folios and registration cards). Click on this Video Link: Dot matrix printer used in the kitchen. Monitors - Key factors to consider when purchasing a monitor include resolution (800 by 600 to 2560 by 1600 pixels), dot pitch (.26mm), refresh rate (72 Hz or screens per minute), ergonomics (adjustment controls), and color. Configuring the information system for optimal performance. The two basic types of monitors are the flat panel monitor(e.g., LCD) and the CRT monitor. LCD monitors are popular because of their thin design and superior performance. Click on this Video Link: Digital menu. Multimedia Devices- Integrate multiple forms of media, including text, graphics, audio, animation, and video. Multimedia applications include educational software, interactive TV, Web conferencing, and virtual worlds. Click on this Video Link: Learn about a virtual world called Second Life. © 2008 Jupiter Images Corporation

24. Zip Drives Zip floppy drive Iomega is the vendor 750MB capacity

25. External Hard Drives Removable Hard Drive USB Firewire

26. Jazz Drive

27. Flash Drives (Stick/USB Memory) compact USB flash memory drive that acts like a portable hard drive

28. The Computer Revolution Advancements in information technology continue at a rapid and intimidating pace. A modern day desktop computer is now more powerful than a 15-year old supercomputer. Click on this Video Link: “Did you know.” The next generation of computers will be infinitely more intelligent, smaller, and mobile than today’s computers and much easier to use and operate. By the 1990s, anyone could create meaningful and useful digital content. The next breakthrough in the computer revolution allowed digital content to be easily shared and accessed via a global network called the Internet. Click on this Video Link: “History of the Internet.” http://www.cs.ucla.edu/~lk/LK/Inet/1stmesg.html Billions of users now view digital content via the World Wide Web, a system of interlinked, hypertext documents that was created in 1989. Click on this Video Link: “Beyond Web 2.0.” © 2008 Jupiter Images Corporation

29. Advantages of Computerizing Information Processing Improved labor productivity. Eliminates repetitive clerical tasks and redundant data entry and increases the span of control (e.g., Taco Bell increased the span of control from one supervisor for five restaurants to one for 30 through technology). Enhanced decision-making capability. Provides access to timely, relevant information. For example, Donato’s Pizza restaurant uses a Business Intelligence System (BIS) or Decision Support System for consolidating data from different systems to reveal real-time data on customer frequency, order trends, and coupon performance. Click on this Video Link: “The evolving information age.” Reducing operating costs. Emailing reservation confirmations, for example, saves paper and lowers mailing expenses. Increased information accuracy. A computer reduces the number of times data is handled by employees. One study revealed that handwritten restaurant checks, for example, were inaccurate 16% of the time.

30. Advantages of Computerizing Information Processing Increased revenues. Ensures that all sales are captured and recorded properly and enables the automatic execution of revenue enhancement strategies based on an evaluation of product pricing and cost in relationship to facility capacity (e.g., If occupancy in the group discount class exceeds X percent with Y days before arrival, then move all group discounts to the rack rate class). Greater customer satisfaction and loyalty. Computers enable employees to more efficient and responsive to customer needs. For example, wireless order taking enables servers to provide faster service. Computers are used to collect data about customer satisfaction. For example, European-based Accor sends follow-up e-mails to guests immediately after a stay inviting them to take an online survey

31. Advantages of Computerizing Information Processing Greater customer satisfaction and loyalty Feedback is also obtained from Consumer Generated Media, such as blogs, discussion boards., hotel and travel review sites, social networks, etc. Click on this Video Link: Strategic Internet marketing and social media and computing. A Facebook application was developed by Renaissance Hotels entitled the “Renaissance Cocktail Mixer. The app lets users send and receive house specialties. After installing the app, virtual dice are rolled to select a cocktail, then an action is selected—toast, shake, pour, mix, etc.—before finally selecting which Facebook friend to send the virtual drink. That person then displays the drink on his or her Facebook profile page. Improved controls. Automated systems make it possible to collect money earlier and to spend it more intelligently. For example, notices on past due accounts can be sent out more quickly.

32. Technology and Information The organization of information affects its usefulness. There are several ways to organize information: category, time, location , alphabet, and continuum. Category . Overtime hours broken down by job position pinpoints where corrective action is needed. Time. Recording the number of meals served per hour assists in labor scheduling. Location. Performance can be tracked for each property in a hotel chain. For example, an executive vice president of one hotel chain lowered the labor cost percentage by 10% by sending each GM a report that contained the labor cost percentage for each property in the chain, which incited healthy competition to top the best performance.

33. © 2008 Jupiter Images Corporation Technology and Information The research firm Basex selected “Information Overload” as its 2008 “Problem of the Year.” Basex maintains that this problem has led to reduced productivity and throttled innovation. Click on this Video Link: “Information and Technology.” Alphabet . Arranging information alphabetically, such as an employee directory, enables the desired information to be more quickly accessed. Continuum. Departments can be ranked from high to low on such things as labor turnover or customer satisfaction.

34. Data Miners © 2008 Jupiter Images Corporation Data Mining. This involves harvesting knowledge from mountains of data. It enhances prediction and modeling capabilities. For example, data mining can help predict what new menu items to offer to customers based on their past choices or what customers are unlikely to pay their bills on time. Click on this Video Link: Introduction to data mining.

35. Taking Full Advantage of Information Technology Organization Structure. IT enhances organizational efficiency and effectiveness by streamlining the distribution of information, which results in a flatter organization. Communication. The combination of the PC and email was the first technological breakthrough to dramatically change organizational communications. Since them various communication tools, such as an Intranet (internal Web site), have been developed to increase staff productivity and effectiveness. Click on this Video Link: Microsoft CEO Steve Ballmer discusses a single-platform package of business communications applications such as voice, instant messaging and e-mail.

36. Taking Full Advantage of Information Technology Standard Operating Procedures. Simply automating an existing process does not always compensate for performance deficiencies. Redefining of standard operating procedures and reengineering of work may be required. Click on this Video Link: An Intel case study demonstrating a scalable solution to improve productivity and customer service. Computing Platform. Productivity in hospitality corporations with large software implementations has often declined due to widespread deployment of stovepipe technologies, isolated “islands of technologies” that cannot collectively adapt to changing needs. Click on this Video Link: An example of an integrated solution developed by Ford Motor Corporation.

37. Executive Information Systems An EIS, an enterprise-wide business intelligence application, is a sophisticated tool to help executives make timely, well-informed business decisions. It enables meaningful information to be extracted quickly and to present it in a way that is understandable, interesting, and easily accessible. For example, an EIS could alert a regional manager that sales are below budget for a particular unit. Click on this Video Link: The future of business intelligence. © 2008 Jupiter Images Corporation