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Digital Transformation in the Tourism Sector - Challenges and Opportunities

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Abstract and Figures

1. Digitalization – definition and meaning 2. Key drivers of digital transformation 3. Transformation and customer journey 4. Challenges and opportunities
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05.03.2018
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DigitalTransformationinthe
TourismSector‐ Challenges
andOpportunities
Prof. Armin A. Brysch
June,28th,2017
UniversityofSeville,Spain
Somedigitalassociations‐ industryrelated…
DigitalTransformation2017,©Prof.A.Brysch 2
Digitization
of
products/
services
Val ue
Creation
Digitization
ofbusiness
models
Digitization
ofwork
Consumerization
(IT)
Source:Zimmermann,A.,Jugel,D.,Sandkuhl,K.,Schmidt,R.,Schweda,CM.etal.(2016)ArchitecturalDecisionManagementfor
DigitalTransformationofProductsandServices.ComplexSystemsInformaticsandModelingQuarterly,6:315,p.31
05.03.2018
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Demographics
Infrastructure
andsomeexternalinfluencesaccelerating
digitaltransformation
DigitalTransformation2017,©Prof.A.Brysch 3
Digital
Transformation
Regulation Legacy
System
Jobs&
Skills
Source:World EconomicForum(2017).DigitalTransformationInitiativeAviation,Tra ve landTo ur i sm Industry,p.9
Agenda
DigitalTransformation2017,©Prof.A.Brysch 4
1.Digitalization – definitionandmeaning
2.Keydriversofdigitaltransformation
3.Transformation and customer journey
4.Challengesandopportunities
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Definitionof „Digitalization
Digitalization istheuseofdigitaltechnologiestochangea
businessmodelandprovidenewrevenueandvalueproducing
opportunities;itistheprocessofmovingtoadigitalbusiness.
vs.Digitization istheprocessofchangingfromanalog to
digitalform.” (Gartner2015)
Theconcept of digitalization is both aspecial manifestation of
(digital)economy and its economic subjects and the
technological,organizational and/or marketing specific
consequences of adigitalalignment (see Brysch2017).
Thereby the term digitaleconomy,alsoknown as internet
economy or net economy,has no consistent meaning in
literature (see Wirtz2016).
DigitalTransformation2017,©Prof.A.Brysch 5
Digitalization of products and services in
two directions
DigitalTransformation2017,©Prof.A.Brysch 6
Physical products
SoftwareDVD
Book
Ticket
Map
Digitalproducts
software download
EBook
ETicket
Digitalmap
Physical services
Moneyorder form
Trave lconsulting
Tour guide with map
Seminar
Digitalservices
software as aservice
Trave lchatbots
Trave lApps
Webinar
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Meaning of „Digitalization“
Discussion should notfocus ontechnical or technological
aspects,butalign digitalization to aholistic approach and
source for new business opportunities.
Changesofstatusquoof abusiness because of digitalprojects –
with ubiquitously and indefinitely collecting and analyzing data
–affectinternaland external transformation processes
Thesetransformation processes could improve effectiveness
and efficiency (e.g.customer solutions willbe personalized or
production processes willbe connected)(see Brysch2017)
DigitalTransformation2017,©Prof.A.Brysch 7
Agenda
DigitalTransformation2017,©Prof.A.Brysch 8
1.Digitalization – definitionandmeaning
2.Keydriversofdigitaltransformation
3.Transformation and customer journey
4.Challengesandopportunities
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Driversof digitaltransformation – overall
perpective
9DigitalTransformation2017,©Prof.A.Brysch
Economy
Customer
Technology
Driver:Technology
Digitaltechnologies (offering a
globalinfrastructure,hence
people &organizations share
informations,collaborate,interact
and communicate).
Internetof Things/IoT (connects
through implementing intelligent
components;B2Cand B2B)
HumanRobotCollaboration
(interfaces between employees,
robots and customers)
(see Schmitt2015)
10DigitalTransformation2017,©Prof.A.Brysch
Economy
Customer
Technology
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Driver:Economy
Digitalization of services
accelerates the shifting within
ServiceEconomytoExperience
Economy(seePine&Gilmore1998)
Newcompetitors and typeof
competition (based onGAFA
unicorns)increase tensions and
put pressure ontraditionalplayers
Innovationcompetence of
businesses becomes crucial to stay
competitive;shorter innovation
cycles accelerates speed
11DigitalTransformation2017,©Prof.A.Brysch
Economy
Customer
Technology
Driver:Customer
Demographic changes (BestAger,
Silver Surferetc.)and related life
styles (Millenials,GenY, GenZ
etc.)willchallenge companies to
customize servicesevenmore
BYOD (bringyour own device)will
change workplace and blur the
line between privacy and business
Overstimulation orsensory
overloadrequiresexcellent
understandingofcustomers(i.e.
AttentionEconomywithBigData)
12DigitalTransformation2017,©Prof.A.Brysch
Economy
Customer
Technology
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Driversof digitaltransformation – sector
specific perspective (tourism industry)
13DigitalTransformation2017,©Prof.A.Brysch
Industry
Traveller
Technology
Driver:Technologyinthe tourism sector
14DigitalTransformation2017,©Prof.A.Brysch
Industry
Traveller
Technology
Travelplatforms aggregate and
provide big data – mobile(like
dominantbooking.com,offerings
in96.000destinations,1.32mn
hotels 120mn reviews)
Disruptive changes insales and
distribution (number of travel
agencies willdecline sharply)
AI,MLand ITinvestments from
nontouristic players likeGoogle
(GoogleDestinations,GoogleTrips
etc.)threaten traditionalplayers
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Driver:Traveller
15DigitalTransformation2017,©Prof.A.Brysch
Industry
Traveller
Technology
Target groups become more
heterogeneous (digital natives
anddigitalimmigrantsonline
behaviourdiffersintermsof
accesstoinformation,channels,
use,trustetc.);futuretravel
tribesrequirenewprofiling
ChangeinConsumerBehaviour
(SmartShoppersor“Phygitals”
mergeonlineandofflineworld
forbestdealsandconvenience)
Driver:Tourism industry
16DigitalTransformation2017,©Prof.A.Brysch
Industry
Traveller
Technology
Value unlockedbydigital
transformation(valuecreation
fortheindustrythrough
increasedprofitability,migration
ofvaluefromtraditionalplayers
tonewcompetitors)
Newbenefitsprovidevaluefor
customers (timesavings,
convenience,sharing,risk
reductionetc.)
Regulation influence competition
(GoogleAppleDuopoly?)
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Agenda
DigitalTransformation2017,©Prof.A.Brysch 17
1.Digitalization – definitionandmeaning
2.Keydriversofdigitaltransformation
3.Transformation and customer journey
4.Challengesandopportunities
Modelof custumer journey
DigitalTransformation2017,©Prof.A.Brysch 18
Source:Armstrong/Kotler2005,Kreutzer2016,Kroeber Riel/GröppelKlein2013
pretrip trip posttrip
Attention Interest ActionDesire
Search Share
Stimulii
(observable)
Intervening variablej
(notdirectly observable))
Reactionk
(observable)
Attention Interest Desire Action
Traditional,neobehavioral SIRModel
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Modelof custumer journey (2)
DigitalTransformation2017,©Prof.A.Brysch 19
Source:Lecinski 2011,Brysch2017
Share
Preference
Inspiration
Search Trip
Interest
Booking
Attention Search Interest Action Share
Desire
activating processes
cognitive processes
more
insights
ZMOT FMOT SMOT
Agenda
DigitalTransformation2017,©Prof.A.Brysch 20
1.Digitalization – definitionandmeaning
2.Keydriversofdigitaltransformation
3.Transformation and customer journey
4.Challengesandopportunities
05.03.2018
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Challengesandopportunities
DigitalTransformation2017,©Prof.A.Brysch 21
DT
Technology
OrganizationMarketing
Marketing:Challengesandopportunities
DigitalTransformation2017,©Prof.A.Brysch 22
FourPillarsofDT
UserExperience
Personalization
Automation
Organizational
Readiness
Source:Skift (2017).THE2017DIGITALTRANSFORMATIONREPORT,p.15
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Technology:Challengesandopportunities
Intelligentautomation,e.g.
ArtificialIntelligence(AI)supports
highqualityservices
Datagatheringtechnologiesfor
personalization
Insightgeneratingtechnologies
fordataanalysis
Digitallyconnectedtouchpointsof
acustomerjourneyforseamless
travel
DigitalTransformation2017,©Prof.A.Brysch 23
Source:World EconomicForum(2017).DigitalTransformationInitiativeAviation,Tra ve landTo ur i sm Industry,p.8,9,13
Organization:Challengesandopportunities
Digitizationinfluences
digitalenterprise
architecturesandsystems
Alignmentofbusiness
modelanddigital
technologies
Outsourcing
Flexibility,agilityand
integrationofmobile
devices
DigitalTransformation2017,©Prof.A.Brysch 24
Source:Zimmermann,A.,Jugel,D.,Sandkuhl,K.,Schmidt,R.,Schweda,CM.etal.(2016)ArchitecturalDecisionManagementfor
DigitalTransformationofProductsandServices.ComplexSystemsInformaticsandModelingQuarterly,6:315,p.32
Source:Steimel 2015
Challenge:Evaluate DigitalMaturity,
use DigitalMaturity Assessment
Tools(KPMG,2014)
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Finalquestion:Willdigitaltransformation
changethetourismsector?
DigitalTransformation2017,©Prof.A.Brysch 25
Yesofcource,itwillstronglyhitandshakeit…
Consequences willaffect the tourism industry indifferent
intensity and speed butwillplay akey role
Tourism providers of commodities mustinvest inefficent
production processes or die
Tou r is m 4 .0 with SmartServiceswillconnect allplayers and
customers realtime undubiquitous
Thank you for your attention…
26DigitalTransformation2017,©Prof.A.Brysch
Brysch,A.(2017):Tou r i s m u s 4.0– Digitale
HerausforderungenfürdieReisebranche,in:
Landvogt,M.;Brysch,A.;Gardini,M.(Hrsg.):
Tourismus–ETo u r i s m u s –MTou r i s m u s ;
HerausforderungenundTrendsderDigitalisierung
imTourismus,Berlin,S.35–42
Brysch,A.(2017):Marketing,Digitalisierungund
Tourismus(2017),in:Gardini,M.(Hrsg.):
MarketingexzellenzimTou r i s m u s , Berlin,S.55–78
Brysch,Armin(2015):Internetökonomieund
eTourismus,in:Schulz,Axel/Weithöner,Uwe/Egger,
Roman/Goecke,Robert(Hrsg.):eTourismus:
ProzesseundSysteme,Berlin,S.3451
seealso:www.professorbrysch.com
Thesis
Full-text available
The impact of digital transformation on the performance of mobile companies in the Republic of Yemen. Student: Jamal AbdulAziz Abdullah AlHubaishi Supervision: Prof. AbdulKhaleq Hadi Tawaf The study aimed to know the impact of digital transformation through its dimensions (Technologies, human performance, databases and digitization of operations) on the performance of mobile companies in the Republic of Yemen (Sabafon, MTN and Yemen Mobile) according to the balanced scorecard represented in (The financial dimension - The customer dimension, The internal operations dimension - The learning and growth dimension), highlighting the level of digital transformation and performance in the Yemeni mobile companies. The study used the quantitative research method in its analytical descriptive manner, and a comprehensive inventory was used to determine the study community of supervisors in the companies under study, and their number was (228) individuals, the questionnaire was distributed to them, and (182) questionnaires were retrieved, and the statistical package for social sciences (SPSS) was also relied. The study found a number of results, the most important of which is that the level of digital transformation in mobile companies in the Republic of Yemen is high, according to the respondents, at a rate of (72%), arranged as follows: (Database's dimension), followed by (human performance), then (technologies), and came in last place is the (the digitalization of operations dimension). The level of performance of the mobile companies was also high, at a rate of (70%), according to the Balanced Scorecard, arranged as follows: (the customer dimension), followed by the (financial dimension), then the (internal operations) dimension. (Learning and growth's dimension), as the results of the study indicated that the impact of digital transformation and the level of performance improvement in mobile companies was not high, and that there were no statistically significant differences between the averages of respondents' responses towards the performance of mobile companies due to the variable of age, years of service, name the company. The study made a number of recommendations, the most important of which is raising the awareness of workers in companies of the importance of digital transformation so that they are not a factor in opposition to technology in the future for digital transformation through awareness and training and their participation in seminars, conferences and workshops that are concerned with this field. Paying attention to the issue of digital transformation in Yemeni business organizations and mobile companies in particular, as it is the basis for digital transformation. Issuing the necessary legislation regulating digital transactions, establishing a cybersecurity center, converting all administrative and operational procedures to digital, as well as using cloud computing, which helps reduce costs and increase security for the information network, as well as creating the general climate for mobile companies to practice their business digitally and providing the infrastructure for digital transformation in Yemen to dispense with paperwork as a major step for digital transformation. Keywords: Digital transformation, performance, balanced scorecard, SabaFon, MTN, Yemen Mobile.
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