Digital functionality of complementation of business processes of the hotel industry

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Digital functionality of complementation of business processes of the hotel industry

Stopchenko Yevheniia, Boiko Margaryta, Kulyk Mania

Stopchenko Yevheniia, postgraduate at the Department of Hotel and Restaurant Business Kyiv National University of Trade and Economics Kyiv, Ukraine. Boiko Margaryta, DSc (Economics), Professor, Head of the Department of Hotel and Restaurant Business Kyiv National University of Trade and Economics Kyiv, Ukraine. Kulyk Mania, PhD (Economics), Associate Professor, Associate Professor of the Department of Hotel and Restaurant Business Kyiv National University of Trade and Economics Kyiv, Ukraine

It has been determined that intensive digitalization of service processes is a condition for the effective f functioning of the hotel industry under the influence of the COVID-19 pandemic. One of its important directions, namely the use of a process approach to management, has been specified. The article proves that the improvement of business processes on the basis of their complementation and defining its digital-functionality will enable to improve the quantitative and qualitative performance, will help to increase competitiveness and to maintain market share.

Keywords: hotel industry enterprise, hotel business, digitalization, complementation, business processes, CRM-systems.

Стопченко Є., Бойко М., Кулик М. Цифровий функціонал комплементації бізнес-процесів підприємства готельного господарства.

Постановка проблеми. Сучасні тенденції розвитку готельного бізнесу спонукають підприємства до впровадження інноваційних технологій в управлінський процес як домінантного фактору досягнення цілей ефективної діяльності в умовах цифрової економіки.

Аналіз останніх досліджень і публікацій показав, що попри наявність окремих наукових доробок, залишається невирішеною важлива науково-практична проблема щодо комплементації (взаємодоповнюваності) бізнес-процесів в умовах інтенсивної диджиталізації господарської діяльності, що обумовює виокремлення функціоналів інформаційних систем, які сприятимуть отриманню додаткових конкурентних вигод щодо збільшення прибутку та скорочення витрат для одного клієнта, залученню нових клієнтів та утриманню існуючої клієнтської бази.

Мета статті - визначити теоретичну основу та праксеологічні засади концептуалізації процесу комплементації (взаємодоповнюваності) бізнес-процесів підприємства готельного господарства, що забезпечить розвиток наукових підходів до управління бізнес-процесами з урахуванням інтенсивної їх диджиталізації.

Матеріали та методи. Дослідження базується на використанні таких методів наукового пізнання, як теоретичне узагальнення - узагальнення дефініції "бізнес-процеси"; системний підхід - визначення та класифікація бізнес-процесів підприємств готельного господарства; бібліографічний аналіз.

Результати дослідження. Визначено, що бізнес-процеси суб 'єкта готельного бізнесу доцільно досліджувати з позиції комплементації, яка визначає ступінь взаємозалежності окремих робіт, що утворюють окрему операцію, або взаємозалежність операцій, що формують бізнес-процес. Встановлено, що пріоритетним варіантом комплементації бізнес-процесів є цифровий функціонал автоматизованої CRM-сис- теми - цифрова технологія моделювання бізнес-процесів, удосконалення операційної моделі на основі динамічного портфеля бізнес-моделей, впровадження цифрових технологій обслуговування. Зазначено, що важливим цифровим функціоналом CRM- системи є можливість організації взаємопов'язаності функцій персоналу через внутрішні комунікації, чати (Bpm'online та amoCRM, оперативний розподіл завдань, розсилка повідомлень тощо). Доведено, що основою компліментарності бізнес-процесів у готельному бізнесі є маркетинг взаємовідносин.

Висновки. На відміну від існуючих публікацій, сформульовано наукову позицію, що визначення цифрового функціонала комплементації бізнес-процесів підприємства готельного господарства через CRM, BPM системи відображає інтенсивну диджи- талізацію готельного бізнесу та розуміння того, що його праксеологічна основа базується на концепціях інформаційного суспільства, мережевої економіки, взаємовідносин, стратегічного менеджменту. Це потребує подальших наукових досліджень комплементації у контексті зростання обсягів продажів, розвитку "активних" та забезпечення збільшення повторних продажів готельних послуг.

Ключові слова: підприємство готельного господарства, готельний бізнес, цифровізація, комплементація, бізнес-процеси, CRM-системи.

Background

Modern trends in the hotel business development, which are characterized by fluctuations of economic conditions, shortening of the life cycle of services, and intensification of competition, encourage companies to introduce innovative technologies into management process as a dominant factor in achieving effective goals in conditions of digital economy.

It is an open fact that hotel business is an investment-attractive economic activity, is characterized by a high degree of internationalization of capital and the international context of providing services through the system of integration, is important for attracting investment in the real sector of the economy, is an essential factor of domestic and inbound tourism, of a country's brand building, and of providing revenues to the budgets of different levels.

The results of the analysis of hotel business trends (number of people provided with hotel services during 2011-2020) show that unstable development trends are due to: the impact of the COVID-19 pandemic; seasonal fluctuations in demand; impossibility to create stocks of a specific product (hotel service); rising service prices; insufficient level of service quality with low price flexibility of demand; organizational conservatism of the management process (Figure 1).

Figure 1. Number of people who were provided with hotel services in 2011-2020 [3]

Non-network hotels operate in particularly difficult conditions, which, in addition to the above-mentioned factors of adverse impact, are experiencing competitive pressure from the side of powerful international hotel operators considering the scale of the hotel business. An important direction of effective functioning of hotel business entities is the use of a process approach to management for improving business processes on the basis of their complementation, taking into account the trend of speed of information dissemination, which determines the relevance of the chosen topic.

Analysis of recent researches and publications

Research of the directions concerning the increase of the competitive potential, activization of development, preservation of the market share of the enterprise through studying the questions of business process management occupies a priority place in researches of the leading domestic and foreign scientists.

The comparative analysis of innovative theories and scientific substantiation of directions as regards transformation of enterprises' management business processes in tourist sphere is represented by researchers of KNUTE scientific school [4], who proved that transformation of business processes is based on innovation of operational performance which is important not only for making strategic decisions, but also for its adjustment with the help of the effectively constructed system of tactical actions management that gives the chance to increase efficiency of operational activity of business subjects.

The works of such authors as I. Segeda [5], O. Lupych [6], I. Biletska [7], S. Buryak [8], A. Kaplina [9] etc. are devoted to various aspects of business processes improvement at hotel industry enterprises.

Such scientists as A. Lemanska-Majdzik and M. Okrзglicka [10] emphasize the importance and necessity of multifaceted study of the business process management phenomenon as a comprehensive approach to reaching the goals of the organization. In their study they prove the scientific point that the optimization of business processes in organizations is a marker of efficiency within the organization, which is formed on the basis of a process approach to enterprise management.

The problem of implementing the philosophy of business process management, which is supported by a portfolio of methods, techniques and instruments concerning modeling, design, coordination and compatibility of business processes, model management, production of new business process technologies, is presented by such researcher as H. Reijers [11].

In-depth methodological principles of building a prototype of the business process improvement plan based on an evidence-based approach are given in the scientific work by P. Delias and G. Nguyen [12], who in particular have developed a methodology for prioritizing business process improvement through a step-by-step procedure which enables to assess their versatility and to justify areas for their improvement with the use of business processes comparison.

The team of researchers in the work "Using business process models to specify the production of operations" actualize the feasibility of studying the problem as to complementation of business processes of the enterprise, arguing that business process management is used as a driver of integration, formulating business processes that cross particular business functions [13].

Determining the importance of theoretical and practical achievements of scientists who study the diversity of business process management, we can state that the scientific issues as regards complementation of business processes in conditions of intensive digitalization of economic activity, which will stipulate singling out of functionalities of information systems allowing to receive additional competitive benefits as to increasing profits and reducing costs for one customer together with attracting new ones and maintaining the existing customer base, demand further analysis. Improvement of business process management on a complementary basis is determined by the fact that the description and analysis of business processes and their interaction is important for reducing the costs of financial and time resources of the enterprise through streamlining and consistent improvement of business processes.

The aim of this article is to study the theoretical basis and pra- xeological principles of the process of complementation of business processes of the hotel industry enterprise, which will contribute to development of scientific approaches to business process management taking into account their intensive digitalization and in the context of highlighting those that create added value for the enterprise and consumer value of hotel services, and those that take into account the discreteness of business processes, provide socio-economic effect of economic activity.

Materials and methods

The research is based on the use of such methods of scientific knowledge as theoretical generalization concerning generalization of the definition of "business processes"; systematic approach concerning the definition and classification of business processes of the hotel industry; bibliographic analysis.

Results

In the changing conditions of external and internal environments, an effective way to improve the business processes of the enterprise is their complementation, namely the coordination and interdependence of actions. This allows us to quickly restructure the company's operations in response to market demands, especially in a global pandemic.

Taking into account the results of the systematic generalization of scientific views on the essence of the definition of "business process" (Table), their common characteristics are singled out.

Table 1. Conceptual field of the essence of the definition of "business process"

The results of a comparative analysis of the essence of "business process" concept show that researchers understand the business process as a structured sequence of actions to perform the relevant activity.

Due to the fact that business processes in the organization are heterogeneous, as they reflect the implementation of certain functions of the organization, we can note their following features:

- they have internal and external users;

- they take place within the divisions of the hotel enterprise, between them, as well as between different organizations;

- they are based on the method of work inherent in a particular organization.

Thus, by the business process firstly we understand the orderliness of actions to perform operational activities at all stages of the life cycle: from the origin of the idea to its implementation and obtaining the result; secondly, we identify it as business procedures that consume resources (financial, production, material, intellectual), resulting in services that form a supply for consumers; thirdly, business process management, in contrast to function management, determines the goal of achieving effectiveness. Correlating the analyzed theoretical approaches as regards understanding the essence of the concept of "business process" with the managerial orientation of its essence in the hotel business, we can emphasize that business processes should be considered from the standpoint of complementation, which determines the degree of interdependence of individual tasks creating a certain operation or interdependence of operations that shape the business process.

Business process complementation reveals itself in functional, consistent, informational, procedural, and temporal interconnectedness, thus providing a flexible and pragmatic decomposition of business processes. Functional interconnectedness means that the set of production operations of the enterprise reflects a specific function; consistent interconnectedness reflects the production functions in such a way that the output of one business process is the input of the next one; informational interconnectedness is revealed in the fact that business processes are performed in parallel, and all of them have a common input and/or output; procedural interconnectedness means that after the first business process of the production chain, the status of its completion is checked and, if it performs the task set, the following one is performed according to the procedure; temporal interconnectedness aims to minimize the information flow, i.e. the next business process of the production chain is performed without taking into account the completion status of the previous one.

Thus, from the standpoint of achieving complementation, business process should be understood as a structured, measurable set of actions, consistently performed by structural divisions of the enterprise to achieve the goal of its activities, namely to meet the needs of consumers of hotel services. In this context, business process management should be considered as a set (combination) of business processes that form the service cycle and are a condition for an efficient production chain of hotel services. It should also be noted that from the standpoint of digitalization, it is difficult to automate unstable and disordered business processes.

Due to the fact that the hotel industry enterprise is a business entity with a supporting information and management system, the business processes of the hotel industry enterprises include actions and operations related to:

- customer service;

- maintenance of internal processes to ensure the functioning of the enterprise;

- organization of supply processes;

- organization of marketing activities;

- organization of accounting and financial work;

- organization of the top management of the hotel;

- interaction with tour operators [24].

The expediency of business processes complementation is stipulated by the need to build a flexible system of all business processes in order to form and implement hotel services of high consumer value, as business processes are the "core" of the economic system of the enterprise. This corresponds to the methodological principles of the concept of the enterprise process management. Taking these standpoints into account, we offer a model of business processes complementation of the hotel industry (Figure 2). Based on the viewpoint that the formation of high consumer value of hotel services forms the imperatives of business process complementation, we agree with the standpoint of scientists who have developed the scientific view that business process management is directed to improve and to control organizational processes in order to ensure maximum value for consumers, which can be achieved by stimulating complementation through end- to-end business process optimization. This approach has a number of advantages, because firstly, it has the potential to create a sustainable competitive advantage; secondly, the level of integration increases as it focuses business processes on the consumer; thirdly, it improves business processes through innovation. We state this by saying that today the most significant transformations of the hotel services market are primarily related to changes in preferences and expectations of potential tourists, who are becoming increasingly demanding and require a personalized approach. Achieving a high degree of the modern consumers' satisfaction is a difficult task, as they are well acquainted with various price offers, loyalty programs, and preferences provided by the hotel industry.

Researchers N. Langviniene and I. Daunoravisinute in a study that identifies the factors influencing the success of the business model in the hospitality industry emphasized critical parameters for the hotel industry enterprise, just: innovation, skilled staff, application of CRM, technology, internal marketing, special offer [25].

Figure 2. Multilevel model of complementation of the hotel industry enterprise's business processes

One of the priority options for business process complementation is to determine the digital functionality of the automated CRM system, which is a digital technology for modeling business processes, improvement of the operating model based on a dynamic portfolio of business models, introduction of digital service technologies. With the help of functionalities, the CRM-systems fulfil the analysis of statistical data as regards sales and their management, interaction of consumers and staff, management of staff performance and management of the enterprise's subsystems interaction. The use of the information CRM-system in the field of hospitality is mostly defined as an instrument for interconnecting sales with the effectiveness of relationship with the customer. However, hospitality is an area in which business processes should be aimed at systematic monitoring of the needs and expectations of consumers. Personalization of needs helps to create consumer value and to increase the competitiveness of hotel services, so an important digital feature of the CRM-system is the ability to organize the interconnection of staff functions via internal communications, chats (Bpm'online and amoCRM, operational task distribution, messaging, etc.).

Shown in Figure 2 multilevel model of complementation marks the typical business processes of the hotel industry enterprise, respectively, the digital functionality of complementation should reflect information processing procedures and should be aimed at providing automated solutions for management, marketing, service processes, communication with consumers and stakeholders, corporate culture. This necessitates the inclusion of business process management (BPM) functionality in the CRM software modules, practically integrating the means of complex business automation. This implies that the CRM carries out the complementation of marketing, accounting, and logistics. The CRM-systems also accumulate the history of consumer interaction with the enterprise. Thus, the CRM-system is the basic digital functionality for optimizing business processes of the enterprise. The results of the study by A. Inversini, M. De Carlo, L. Masiero prove the relationship and direct impact of the use of CRM software products on the growth of hotel ratings among consumers, resulting in increased profits, identifying new revenue centers, maintaining and increasing market share [26].

The results of a study by a team of scientists who proved the systematic complementation of financial, marketing and service business processes in the online environment which ensures the effectiveness of the value chain and consumer value of the hotel product and has a positive effect on business results are indicative as to positive impact of complementation of business processes in the format of revenue management and the CRM [27]. That is, the definition of digital functionality of the hotel industry business processes complementation in the format of revenue management and the CRM is targeted at creating an information environment for planning, monitoring, performance analysis, and formation of relationships between departments.

Defining the features of business process complementation, we agree with scientists who in the study "Ten Principles of Good Business Process Management" identified factors that reveal the principles of achieving business process effectiveness, namely: awareness of the business specific character, continuity, activation, integrity, institutionalization, involvement, interaction, use of information technologies [28].

These principles ensure the feasibility of considering the implementation of business processes in the framework of innovative development of enterprises, which will help build a consistent mechanism for managing and coordinating business processes in the formation of strategic capital; operating activities of the hotel; ensuring service processes and financial efficiency. This is connected with the fact that, for example, innovations in the field of digitalization relate not only to operational activities, but also to the processes inherent in management. The application of such an approach will create preconditions for the completion of business processes of the hotel industry enterprise as a perfect business model. Innovations in the organization of business processes of the hotel industry enterprise are associated with a change in management model through the development of the ability to take into account the impact of environmental factors and to quickly solve problems that arise.

According to researchers T. Bediaeva and A. Barlova [29], innovations in the organization of business processes in the management of the hotel business enterprise should be based on the following principles and grounds:

- flexibility (speed of adaptation to changes in the operating environment with minimal costs, which in the future will become an instrument to reduce the likelihood of financial and non-financial risks);

- compliance with the law;

- management structure, in particular senior management, should be built in accordance with the needs of the enterprise;

- interaction of levels of management structure (clarity of powers and mutual relations at all levels of management of each corresponding model of the hotel industry enterprise's management);

- application of new tools and objects of management policy, as well as the development of new channels to attract additional funding directed at expanding the activities of the enterprise.

The Hub Spot CRM functionality, which provides the ability to create, track, develop and maintain interactive, mutually beneficial processes between the subject and consumer of hotel services driven by economic goals and aimed at multiple transactions, is the innovative digital functionality of the automated CRM-system for the hotel business, which takes into account the above-mentioned principles. This means that by managing relationships through the digital CRM functionality, there is a real opportunity to ensure the complementation of business processes in order to quickly meet customer demands and respond to changing requirements. From this point of view, the scientific attitude that relationship marketing is the basis for the formation of complementation of business processes in the hotel business, which allows to perceive this concept of marketing as a specific management function and mechanism for realizing the economic interests of enterprises and consumers of hotel services.

Conclusion

business process operational

The interdependence and interconnection of business processes can be measured by correlating the indicator of the hotel services consumer value, which are created by an information system for optimizing business processes, and this significantly increases the effectiveness of their management. The argument for this conclusion is seen in a proven standpoint that the lack of relationship between the business processes and the business model of the enterprise does not allow to concentrate economic activity around a specific goal, to plan, organize, stimulate, control, and to preventively regulate the identified deviations in the service cycle consumers.

Defining the digital functionality of the hotel business processes through the CRM, BPM systems reflects the intensive digitalization of the hotel business and the understanding that its praxeological basis is based on the concepts of information society, network economy, relationships, strategic management and others. Accordingly, the digital functionality of business process implementation, firstly, provides a targeted focus, namely: strategical (focused on interaction with the external environment and flexibility of the enterprise); tactical (improves increase of management effectiveness), operational (focused on the formation of consumer value, which will satisfy the needs of the consumer), which will form a consistent mechanism for managing business activities; secondly, allows to form appropriate information support that will provide synergy in the management of business processes to increase sales, to develop "active" ones and to increase re-sales of hotel services, thirdly, forms an analytical basis in a situation of necessity concerning formation of the activity prognostic results.

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business process operational

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