Overview of business and knowledge Essay Example

Within operational organizations, it is essential for suppliers to comprehend the needs of customers. In the hospitality sector, customers seek service quality that meets or exceeds their expectations (Schermerhorn, 2004). Presently, numerous hotels employ the internet as a platform to provide customers with supplementary information regarding hotel details and related documents.

Customers have access to accurate information to answer their queries and companies can utilize customer details as databases from their website's CRM. The relationship between customers, companies, and CRM is illustrated in figure 1. Additionally, suppliers or hotels can modify operational activities based on organizational resources such as people, structures, technologies, products, and services that cater to customer demands (refer to figure 2). According to Lawrence et al. (2004), new information technology enables firms to exchange information more efficiently and accurately.

According to Klein and Werther, 1999, "IT is utilized for both the internal product creation process and for external linking, such as distribution and marketing means." Thus, IT comprises a set of component supporting resources which individuals can utilize to enhance their abilities.

Information System (IS) and Management

Information System (MIS) refers to components of information technology that gather data, process, store, and utilize information to aid management in decision making, resource management, and coordination. Moreover, it assists organizations in maintaining and developing information. Through information system activities, managers and employees can improve communication and identify problems. These activities are categorized as input, processing, and output.

Input in a Management Information System (MIS) involves collecting data from both internal and external sources within an organization. This data is then processed to transform it into a meaningful format. The processed data is then distributed as information to the people

or person who uses it. To ensure the accuracy of the output, feedback is necessary for organizations to evaluate and improve the input process to collect the right data.

An MIS is specifically designed to provide managers with the necessary information to effectively plan, organize, staff, direct, and control operations. Managers can use this information to fulfill their specific needs.

(Source: Laudon, 2004; Cahill and Kasavana, 2003)

Also, an information system can be designed and created to manage application systems in order to support other activities such as decision making or operational performance.
2.3 Data, Information and Knowledge"
"Data are raw facts or observations that are considered to have little or no value until they have been processed and transformed into information"(Bocij, 2003) while, information "is data organized into meaningful patterns. Information is transformed into knowledge when a person reads, understands, interprets, and applies the information to a specific work function"(Lee and Yang, 2000). Hence, data and information are the basis of knowledge structures. Stamm (2003) mentioned that "knowledge consists of truths and beliefs, perspectives and concepts, judgment and expectations, methodologies and know-how". Knowledge is deeper than information and can become more visible and valuable when people learn and put their experiences into their practice lessons (Pearlson, 2001).
Types of knowledge
According to Nonaka (1991), there are two types of knowledge, tacit and explicit.

Tacit knowledge is characterized by its difficulty to express and communicate to others, as well as its elusive and unarticulated nature. It often manifests in an individual's personal commitment and is not easily documented. In contrast, explicit knowledge is formal, systematic, and can be readily communicated and shared.

Knowledge can take various forms, such as verbal, textual, and visual, and

can be found in presentations, lectures, books and magazines, databases, and software programs. According to Kreitner (2004), explicit knowledge is public to some extent, while tacit knowledge is private. Knowledge management (KM) is defined as the integration of people within an organization and the technical knowledge assets (Scott, 1999 cited in Plunkett et al., 2005). Bhatt (2001) describes KM as a process that involves knowledge creation, validation, presentation, distribution, and application (cited in Yahya and Goh, 2002).

The main aim of Knowledge Management (KM) is to secure 'insight judgments and understanding' (Daveport and Prusak, 1998 cited in Rowley, 1999) in order to create and develop specific organizational knowledge, including tacit knowledge, that can add unique value to business activities different from competitors. 2.6 Customer Relationship Management (CRM) has evolved and emerged with the boom of the internet age (Kotorov, 2003). CRM still has multiple definitions due to it being a new concept. Greenberg and others have identified more than 10 ways to define CRM. However, CRM definitely relates to a component of knowledge management (Stefanou et al., 2003). CRM has become an essential tool for every business sector. According to Feinberg et al., 2002, CRM is a comprehensive business and marketing strategy. It is also described as a customer service approach that focuses on building long-term and sustainable customer relationships that add value for both the customer and the company (Turban et al., 2004).

Then, Customer Relationship Management (CRM) utilizes knowledge as a tool for gaining a competitive edge by focusing on customer satisfaction from a company's perspective.

Types of CRM

According to Turban et al. (2005), CRM can be categorized into three main areas: operational CRM, analytical CRM,

and collaborative CRM. These areas are interconnected and involve different activities. Operational CRM deals with traditional business functions aimed at serving customers. Analytical CRM involves the organization and analysis of customer data as required. Collaborative CRM fosters cooperation and communication between customers and companies.

Furthermore, there are alternative methods for categorizing CRM. Tan et al., 2002, classify CRM programs, while The Patricia Seybold Group, 2002, categorize them as applications (as cited in Turban et al., 2004). Tan et al., 2002, outlines various CRM programs including loyalty programs, prospecting, save or win back, and cross-sell/up-sell. The primary goal of loyalty programs is to enhance customer loyalty.

Prospecting programs aim to acquire new customers, while save or win back programs focus on retaining customers in the hopes that they will return. Cross-sell/up-sell programs provide additional options based on customer preference. According to the Patricia Seybold Group's classification, CRM applications can be grouped into three categories. Customer-facing applications facilitate communication between customers and companies, such as call centers. Customer-touching applications involve things like self-service and e-commerce applications. Customer-centric intelligence applications use databases and analyze operational results to develop CRM applications. Additionally, Turban et al., in 2004, added online networking and other applications that foster personal relationships in business, such as chat rooms and discussion lists, as a fourth type of CRM application.

Electronic customer relationship management (E-CRM) refers to CRM functions provided online through a website, using web browsers, the internet, and other electronic touchpoints (e-mails, POS terminals, call centers, and direct sales) to manage customer relationships (Turban et al., 2005). Feinberg and Kadom (2002) identified 36 areas of e-CRM, including personalized web pages, FAQs, e-mail and automated response, chat rooms,

call centers, and troubleshooting tools. The integration between KM and CRM is based on technological innovation and competitive advantages. Technological advancements have greatly influenced our society and are crucial for organizations (Simon, 2001; Griffin, 2005).

Technologies have had a significant impact on organizations, causing them to undergo changes. According to Dixon (2000) in the field of management, knowledge management entails managerial transformation and the inclusion of individuals in knowledge exchange and creation. These factors act as driving forces that prompt organizations to adapt their management practices. Managers can leverage new technologies to adjust and develop their knowledge to enhance their competitive advantage within the company (refer to figure).

Since the mid-1990s, CRM technology has evolved in various ways. The term e-CRM emerged as users started utilizing web browsers, the internet, and other electronic touchpoints (Turban et al., 2004).

In addition, both KM and CRM are suitable approaches to gain competitive advantages. KM focuses on using knowledge assets as a crucial factor, while CRM focuses on managing the relationship between companies and customers as a key to achieving success (Gebert et al., 2003). In other words, KM and CRM work together to reduce failure and produce competitive advantages.

3.0 Case overview

3.1 About Dusit group

The Dusit group has been developing its properties by implementing knowledge management with innovation and service quality. As a result, the local company has been promoted to an international chain of hotels. In recent years, the Dusit group has expanded by launching numerous branches in the hospitality market primarily in Thailand and Asia. The group has luxury hotels and resorts not only in major destinations within Thailand such as Bangkok, Chiang Mai, and Phuket but also

in overseas locations including Dubai, Indonesia, Myanmar, and the Philippines.

The vision and objectives of the Dusit.com web site

Bringing world-class standards of comfort and convenience under the authentic service quality of Thai Hospitality is a vision shared by all Dusit hotels and resorts.

The purpose of this text is to provide information to customers who have used facilities in hotels and resorts within the Dusit group, as well as to travelers who are planning future trips and would like to know the benefits in advance. The Dusit.com website targets two main segments: business and leisure travelers. The website offers more information about facilities, activities, travel, and special promotions in three main sections: hotel network, travel network, and travel info. For instance, the Dusit Thani hotel provides general profiles of the hotel including its location, room types, restaurants, and other facilities. It also lists the price for internet connection in rooms, room rates, details about meeting and convention centers, as well as information about amenities such as the spa center, fitness center, and golf club - all of which include their respective locations and opening hours.

One of the key features of this website is its restaurant section, which provides detailed information about each chef, the restaurant's capacity, and its type. This information is helpful for visitors who are looking to make a decision and book a table online. Additionally, this website also allows visitors to plan their travel smartly. They can check the best time for their trip based on the seasons and refer to an event calendar.

Customers or guests can easily access the necessary information. Primarily, customers have the ability to search for a preferred room type

and price, and can independently make or cancel room reservations. The creation and development of the Dusit.com website is carried out by managers, including top executives, who make decisions and provide information through web pages that include text, sound, video, and graphics using a hypermedia database. This database approach manages extensive amounts of information by organizing it into interconnected nodes through links that are specific to the user. These nodes can contain various forms of media such as text, graphics, sound, video, or computer programs.

Users are able to search for their interests on a website using the hypermedia database approach (Laudon, 2004). The Dusit Group utilizes multimedia techniques like video and flash, and has developed digital communication channels such as e-brochure, web, and email. These channels are used to manage customer relationships and implement a one-to-one marketing strategy. Connecting databases with the web is a specific area of focus for organizations. This technology allows customers to access room types, make reservations, and request specific data through a web browser. By partnering with websites like asiatravel.com and connecting with hotels and resorts on Dusit Group's web pages, companies can share information from various databases, including both front and back-office sections based on CRM (figure 6, Turban et al., 2005).

Through this website, partners lead customers to detailed information about Dusit hotels and resorts. Visitors can then check room rates, special promotions, and access Dusit.com home pages and Dusit news.