This chapter surveys the literatures on managerial innovation and provides a wide and structural view of management system philosophy and e-tourism. It gives a historical perspective of MIS (Management Information System) and the related concepts like Decision Support Systems, Executive Support Systems, Business Process Automation, Management Control Systems, Global Distribution Systems, Transaction Processing Systems, etc. Learning from the case of auto industry like AutoXchange, this chapter seeks for the strategic use of information and communication technology in tourism. Here MIS includes modern information technology like data mining, wireless devices in the era of “Travel, Tourism and Technology”. The above mentioned systems are used in big businesses, but this chapter also explores the effect of such technologies on small businesses. Finally, this chapter proposes to apply e-CRM (Electronic Customer Relations Management) to the tourism industry and, at the same time, assess the challenges and limitations such an application would entail.
TopIntroduction
The Computer Reservation Systems (CRSs), established in the 1970s, Global Distribution Systems (GDSs) in the late 1980s as well as the Internet in the late 1990s have transformed operational and strategic practices of management control in tourism (Buhalis, 2003; Buhalis & Law, 2008). Initially, it focused on utilizing computerized systems (e.g., CRS, GDS) to increase efficiency in processing of internal information and managing distribution. However, these systems have become important in all aspects such as operations, structural, strategic control and marketing levels. (Buhalis & Law, 2008; Egger & Buhalis, 2008).
In today’s business environment, information systems are a foundation for conducting business. In many industries, such as the tourism industry, survival can be very difficult without the extensive use of information technology. Information systems have become essential for helping organizations operate in a global economy strategically. Various sectors are increasingly become more competitive and efficient by transforming themselves into digital firms where nearly all core business processes and relationships with customers, suppliers, and employees are digitally enabled. The tourism industry employs these technologies for its operational, managerial, marketing and customer relationship management. Emphatically, the management of these information systems has emerged in the entire strategic planning and management control of industries such the tourism sector.
For tourism businesses, management information systems (MISs) offers the potential to make information available to staff at a relatively low costs. It also provides a tool for communication between managers, functionaries, as well as field workers. Since the principal objective of every business is to maximize profit, MISs help in managing costs through Business Process Automation (BPA) models thereby increasing productivity. According to WTO (2001) electronic business offers SMEs the opportunity to undertake their business in new and more cost-effective ways.
Obviously, MIS is having a major impact as a source of information flow for tourism industries. However, they are also facing more quite a number of impediments to the adoption of new information technology, in particular, e-business. Part of the problem relates to the scale and affordability of information technology, as well as the facility of implementation within rapidly growing and changing organisations. In addition, new solutions configured for large, stable, and internationally-oriented firms do not fit well for small, dynamic, and locally-based tourism firms (OECD 2014).