Before anyone can write about or discuss e-business, there needs to be a meeting of the minds about what e-business really means.   E-business is defined as the transformation of key business processes through the use of Internet technologies. While a lot of attention has been given to externally focused e-business initiatives, in this article we�ll explore internally-focused initiatives by taking a look at �e-business from the inside.�

The hospitality industry is moving rapidly to the Internet.  Most companies are looking at the Internet as a new marketing channel.  You can find almost all the hotel chains, management companies, and individual properties on the Internet today.  The chains are beginning to accept reservations directly on their web sites and are strongly encouraging customers to book via the Internet.  Many chains are also doing some type of auctioning for their unsold rooms. With all these online marketing tactics in place, many executives are now asking the question: �Are we making the most of our Internet strategy?�

A critical element of this strategy should be how the company presents itself to its own employees, through the internal use of the Internet, known as the intranet.  Most companies have implemented intranets, yet most have not realized their true potential in terms of cost savings, employee productivity, and business effectiveness.  Companies are still sharing important business information with their employees by posting, copying articles, and passing information from desk to desk via a routing slip.

Very few executives have looked at the impact the web can have on reducing operational costs for the corporation.  How many companies still print and mail policies to each location?  How many companies still use dedicated communication lines to exchange information between properties and the corporate office?  How many companies allow their employees to work from any location while traveling?

Cost reduction

In today�s world, a hotel chain may reduce costs very quickly using the Internet.  The Web can be the communication link between the corporate offices and the properties.  Cable modems and ADSL/DSL lines are becoming available in many areas, replacing the dedicated phone lines of previous years.  These new access and communication tools provide the bandwidth necessary to quickly move critical business information. There are some limitations on where these new devices can be used and when they will be available.  The greatest limitation is the location of the properties and the speed with which the new services reach their areas.  As these services become available, hotel companies need to review and adjust their telecommunication strategies.
While changing the circuits between corporate headquarters and a property reduces some costs, the real savings comes in reduced communication and administrative costs from using the web as the primary medium to communicate with employees. In the near future, this communication may include the use of voice over the Web.  Some telephone/Web companies are offering this type of service today.  Voice over the Web could reduce or eliminate both domestic and international long distance charges - a huge expense for any company.  As an added bonus, the types of information that can be disseminated over the Web are virtually limitless: corporate policies, department information, and training to name just a few.

Some examples

Corporate policies and information:  Laws change frequently and corporations are responsible for keeping everyone current.  This can be a daunting task for a small company, let alone a large company with hundreds of properties.  The scope and flexibility of what you can do on the Web are truly remarkable.  Here are just a few examples:  

• share press releases, 
• administrative policy changes, 
• newsletters, 
• company performance information, 
• competitive information, 
• new product information, 
• new property updates, 
• renovation/refurbishment plans and 
• market information.  

Department information:  Updated employee and customer contact lists, current financial, sales and performance statistics, near real-time sales lead status reports, resource availability, product development status reports, and marketing programs in progress all can be made available to your team members via the Web.

Employee productivity

E-mail and Messaging:  The benefits of e-mail are obvious.  Electronic messaging connects people who may be geographically dispersed, allowing them to conduct business quickly and efficiently across time zones.  It can also be a vehicle for distributing and maintaining the corporate culture through near instantaneous communication of information, stories, and yes, even by supporting the ubiquitous grapevine?

Web Collaboration:  Tools are now available that make it possible for people to share ideas and collaborate on complex projects by allowing people to participate from geographically distant locations.  Team rooms can be established where central copies of documents are kept for easy access by all team members.  Everyone contributes to the same copy of the document, which reduces errors and the administrative time needed to copy and distribute documents, receive and incorporate changes, then redistribute.  Collaboration tools also facilitate workflow or the movement of information from one user to the next, based on guidelines and rules.

Training/distance learning:  It�s no secret that hotels have high employee turnover, making the time and cost to train and educate new recruits a substantial and continuous investment. Delivering training and other education over the Web will reduce both the cost and time involved and help new hires be productive more quickly.  Sessions can easily be conducted on the Internet for new employee orientations, introducing administrative policies and procedures, conducting technical training on property hardware/software such as POS terminals, PMS system, word processing, spreadsheets, telephone system operation, or explaining new or changed governmental regulations on labor laws, environmental compliance, or foodservice.  Travel and program development expenses can be significantly reduced using the Internet as a delivery mechanism.

E-HR (Electronic Human Resources)

This is one area where there can be huge benefits in automating processes and putting them on the Internet.  Examples of e-HR applications include the ability to:

• Establish on-line employment applications; publish new hire checklists for managers;
• Allow on-line registration for health insurance; publish details on insurance benefit options and include searchable lists of approved facilities and physicians;
• Allow employees to register for 401K/pension program participation and permit them to view their accounts and change their investment options on-line;
• Publish bonus information, performance review criteria, organization charts and reporting chains;
• Publish travel expense policies and approved vendors;
• Allow submission, approval, and on-line lookup of expense reports and their payment status, time sheets, and tracking of vacations, holidays, sick and personal time, and
• Distribute electronic pay statements, which can replace paycheck stubs for employees choosing direct deposit.

Business effectiveness

Business effectiveness boils down to doing the right things with a minimum of wasted effort.  Easy to say, not so easy to do - at least until now.

Internet technologies make it possible to do so on a scale unprecedented in history.  Web collaboration allows you to apply your best minds to the project at hand, no matter where they may be.  Real-time access to critical business information collapses the time needed to take advantage of market opportunities or head off competitive threats.  Increased productivity is a natural byproduct of removing administrative and technical obstacles from employees� workflow.  Reduced administrative head count and expenses allow precious profits to be directed to areas where they can generate the greatest return for the company.  Indeed, using the Web for e-business from the inside may just be an hotelier�s secret ingredient for marketplace success.