Companies getting results from cloud computing.

In the hospitality industry or in the entrepreneurship and medical fields, some groups decided to move up their core services and systems online. They invested in the cloud more for practical and economic motives than for financial reasons. Indeed, such innovative tool enables them to improve the way of management, CRM and taxation systems in their businesses. The cloud computing not only appears as a technology with high potential but showed its short- and long term results for companies from various sectors.

While startups such as ServiceMax and NVoicePay developed their businesses’ growth plans thanks to the cloud infrastructure, other groups used mutiple advantages that suit to their needs.

RehabCare Group - providing therapeutic services - focuses on software and on a device from the cloud to increase the effectiveness of the employees.

Last but not least, InterContinental Hotels Group switches from server-based enterprise software to the cloud, using three cloud delivery methods. Each one proved to be effective, flexible and customer-oriented. What is at stake for the group remains the capability for the users to control and understand every aspects of the tool, so that it can be a reliable and an effective interface.

            We find relevant to focus on InterContinental Hotels Group (IHG), since this company has considerably moved its activities online. Since a few years, IHG has embraced the use of advanced analytics and cloud computing, for economic and operational reasons. They extend a private cloud and moved from a structured dataset to a big data solution analysing internal and external data in real-time. They have become a truly data-driven organisation to help them make better decisions and become closer to customers.

Cloud computing software as a service allows hotels to avoid building their own IT infrastructure. In this case company uses the two versions of the tool for different segments and strategy. A private cloud dedicated to the core CRM systems as a data centre and public cloud services for operational activities that stimulates direct relationships with customers.

IHG adopted cloud-computing solutions for several motives. First of all, though the company didn't invest mainly for financial reason in the cloud, they benefit from economies of scale on the investment on the tool. Since cloud services can be purchased on an ‘on-demand’ basis, hotels can avoid upfront investment in hardware as well as associated expenses, such as maintenance costs and the extra manpower needed to run an in-house system.

Secondly, investing in this tool enables IHG saving time. Indeed, the cloud offers the ability to update prices in real time across all of their hotels. Furthermore, the hotel doesn’t need to invest time in the deployment of the system. There is also no more time lost on technical problem of hardware.

Thirdly, contrary to in-house software system  which requires training for both maintenance and operating of the system. Technical aspects are handled by the supplier, that is why cloud PMS is an easy, flexible and intuitive tool to set up and use. Furthermore, it enables a quick access that will be increased with software for tablets and mobiles for example.

InterContinental Group is investing in this tool, also planning to extend its private cloud, a real new generation data centre. By using two big virtualized data centres, the company faces failures much better. Secondly, such solutions are able through distribution systems to response quickly to the needs of the clients. This mode of operation delivers much more data while being closer to the customer than classic data centers. Today they use up to 650 variables from different sources such as information about its hotels, as well as its competitors, guests, and other internal and external data.

The cloud represents especially a solution to better manage big data gathered by the company. Distribution systems on the cloud can help hotels manage the complexities of distribution through a single online dashboard. Indeed, IHG collects a huge amount of diversified data, which are analysed in real time. This improves considerably the analysis and comprehension of customers’ trends and needs. Thus, it increases the performance of revenue management and insures more reliable strategic decisions, creating a better experience for their guests.

To conclude, investing in cloud-based management software revolutionizes IHG businesses, especially for revenue management solutions. Despite benefits driven by cloud-based systems, there are still some scepticism regarding connectivity and security issues.

However, capitalizing on this trend attract a clientele oriented to new technology, likely to enlarge and become more and more crucial to satisfy. Finally, in the precedent comment, we were wondering if such technologies could affect relationships between employees and customers. Yet, it appears that cloud based systems enable hotels saving time on operating activities, winning effectiveness. As a result hotel staff can focus more on their core activity: looking after their guests.

Marie-Astrid Barral & Baptiste Lignel

Art. 1 http://www.informationweek.com/4-companies-getting-real-results-from-cloud-computing/d/d-id/1095455

References:

Art. 2 http://blog.capterra.com/2013-the-biggest-year-yet-for-cloud-computing-in-hospitality/

Art. 3 http://online.wsj.com/article/PR-CO-20130219-907346.html

Art. 4 http://smartdatacollective.com/bigdatastartups/113976/big-data-empowers-intercontinental-hotel-group-service-oriented-data-driven

Video: http://www.youtube.com/watch?v=uA_bqu_2cSM

Image 1 : http://www.hsci2012.org/cloud-computing-and-how-its-changing-our-world/

Image 2 : http://www.purevpn.com/blog/data-security-in-cloud-environment/