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Foodservice Technology Sourcebook

Turning Data into Usable Information

By Michael Wohl, Statability Co-founder

Many multi-unit hospitality companies today share a common problem: too much data, but not nearly enough information. Restaurants, hotels, cruise lines, and resorts have an overload of raw data on multiple hard drives, on stacks of guests' comment cards, on managers' desks, or in different reports at their corporate headquarters. In today's world, gathering data is the easy part; putting it into usable information is a lot harder.

Identifying the Problem

If your company collects any type of data, you have taken the first step in improving your business. The next step is to turn that data into information that you can use to help make decisions that improve your bottom line. If you are wondering whether your data is being used effectively, consider the following questions:

Do you have data that you are collecting but not interpreting or analyzing?
Is there a lag time between collecting and delivering the data?
Do you struggle to consolidate data into easy-to-use reporting for all levels of management?

If you answered, "yes" to any of these questions, the data you are collecting is probably not being used to its fullest potential.

The Power of Information

When companies begin to turn raw data into usable information, incredible things happen to their businesses. Managers make better, more informed decisions, guest satisfaction scores improve, time and resources are allocated more efficiently, and forecasting and budgeting projections are more accurate.

Statability was formed to help companies use today's technology to create systems for reporting this data. We create reports that help companies turn the data they have already collected into useable information that allows their managers to gain the knowledge and confidence to make better business decisions.

These decisions can be big or small. Either way, our reports make companies' overall strategies clearer by allowing field managers to make smarter decisions that are good for their individual units or regions, and therefore, best for the company as a whole.

On a personal development level, our reports identify each unit's individual strengths and weaknesses, which usually parallel those of the unit's manager. The reports not only recognize the tasks that managers are good at, which helps improve job satisfaction and build confidence, but they also force managers to look at their weaknesses and work to strengthen them.

Many of our clients have experienced the benefits of moving data into the next step. For example, one of our clients is a large multi-unit chain, whose success largely depends on customer service. This company spends a large amount of time and resources training its employees to effectively serve customers. Before we began working for this company, data was already being collected frequently by grading employees on how well they carry out specific processes in an effort to measure the effectiveness of their various service levels.

Like many companies today, this company struggled not in collecting the data, but in doing something with it. We designed a customized reporting product for this client to turn the data into usable information, and within 90 days, its quality service scores went up 10 percent. Training courses were redesigned to target specific problem areas, and valuable time and resources were saved.

Internal Solutions Versus Outsourcing

Many hospitality companies have success stories like these just waiting to happen. If you know your company has the data, you can take the next step. Many companies have chosen Application Service Providers (ASP) to work in information technology, rather than relying completely on their own internal infrastructure to create new solutions.

There are a couple of reasons companies choose to use an ASP for reporting:

Reporting is a challenge. It takes time and day-to-day attention. Many companies like to pass these tactical responsibilities on to an external company so that their IT departments can stay strategic.
Hospitality companies are experts in taking care of customers. That doesn't mean they aren't technology savvy, but it does mean their core competencies are not in technology.
By using an ASP, there is no costly up-front investment in new hardware or software to make web reporting a reality.

Regardless of whether a company uses an ASP or its own IT department, investing in moving data into actionable information is an important step. We often hear in today's world that we have "information overload." In reality, we don't; we have data overload. The trick is turning this data into usable information. When companies figure this out, they quickly learn that information is still the most important element of a successful business.

To reach the author, call 952.322.5865 or e-mail Michael Wohl at MWohl@Statability.com.