Digital Disruptionand Opportunities in Travel

Global Business, Hospitality and Tourism Research (GLOSEARCH.org) 2-5 October

2018, Ho Chi Minh City, Vietnam

Professor Paul PhillipsP.A.Phillips@kent.ac.uk

Professor of Strategic Management Kent Business School, University of Kent, UK

Agenda

▸ Introduction▸ Is your organisation prepared for the future?▸ What we know about digital transformation?▸ Digital Disruption▸ Digital Opportunities▸ Strategic Implications

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3 More than three thousand organizations wereasked worldwide…

…about what the most important trends are

that define their strategy & actions

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What concerns them the most is…

Source: https://www2.deloitte.com/insights/us/en/focus/human-capital-trends/2014.html

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Source: BrianSolis.com

Operating model

Business process design

Organisation structure

Technology

Enablement

Journey planning

Stakeholder management

Programme management

Employee engagement

Talent sourcing

Performance Management

Leadership development

Culture

&

Values

Business Transformation

&Programmes

Programmes are Complex

Digital Disruption

▸ Signalling exercise▸ 4th Industrial revolution▸ Today’s consumers▸ Changing concept of value▸ What are the salient drivers and

emerging developments?

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4th Industrial Revolution12

5th generation wireless technologies

Nanotechnology

Blockchains

In Only 5 Years...

• OriginalOTAs(merchant)

• OpaqueOTAs(priceline)

• RetailOTAs(booking.com)

• Metasearch(kayak,trivago)

• Social/review(tripadvisor,facebook,instagram)

• OTAAlternatives(Google,RoomKey,auction,lastminute)

• Sharingplayers(quotes,news,studies)

• Sharingcollaboration(Hyatt,Choice,Accor,…)

• Alternatives(hybridhostel/apartment/hotel)

Disruptor Evolution – emergenceàexplosionà outsiderà respectabilityà relatedalternativesà

coexistence

Source: STR

Today’s Consumers 15

▸ Always online▸ Value- conscious▸ Interactive▸ Healthy-driven▸ Societal-oriented ▸ Multicultural

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Value

▸ Consumers are increasingly seeking to choose brands which embrace positive societal and environmental values.

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Data Analytics

▸ Need to gain fresh data, information, knowledge and insights from user generated content.

▸ Using Sentiment & Polarity analysis

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Some Implications for Hotels▸ Hotel financial management: greater control of profit margins,

understand real drivers of shareholder value▸ Hotel technology: blockchain, cloud, and mobile, voice,

messaging conversation▸ Hotel rooms: simpler, more natural designs; smarter smart tech▸ Hotel loyalty: online reputation, special offers, and reimagined

loyalty programs ▸ Hotel sustainability: meaningful, measurable, and achievable

goals

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Source: Deloitte Netherlands

The Evolution of Data Analytics22

DescriptiveAnalytics

DiagnosticAnalytics

PredictiveAnalytics

PrescriptiveAnalytics

How tomake ithappen?

What will happen?

What is happeningright now?

What happenedand why?

Predictive Analytics

Principally, it is best used to: ▸ 1. Predict trends. ▸ 2. Understand customers. ▸ 3. Improve business performance. ▸ 4. Drive strategic decision making. ▸ 5. Predict behaviours.

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Prescriptive AnalyticsPrincipally, it is best used to: ▸ 1. Explain what should happen using algorithms,

mathematical optimization, simulation, etc.▸ 2. Understand what offer to be made to each

customer. ▸ 3. Improve distribution strategy.▸ 4. Determine what new products to launch.

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Strategic Implications26

Strategic Implications27

NGOs/third

sector

Private sector

Public sector

Intersection is where collaboration and

impact with University research

may occur

Fusion Dilemma

▸ Tackle the – Digital Strategy, Data, Information, Knowledge, and Technology fusion dilemma

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New University Master Degree Programmes

▸ Ecosystem – Individuals, Institutions, Public organisations

▸ Close Network – Practitioners, Academics, Influencers

▸ Core team – Leadership, vision, advisory board

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Network of Impact Labs30

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The need to create tomorrow’s organization now

is the most important strategic issue regardless of

▸ region▸ industry▸ company size▸ Generation

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Thank you for your attention!Any questions?

You can email me at p.a.phillips@kent.ac.ukor find me on my personal website https://www.drpaulphillips.com/