Modules 3 & 4: Information Systems, Performance Tools, and Competitive Advantage

25 Question-and-Answer flashcards covering information systems, data quality, infrastructure, Balanced Scorecard, KPIs, performance tools, and competitive advantage concepts from Modules 3 and 4.

Why is information considered critical in today’s digital economy?

It underpins decision-making, drives efficiency, and provides organizations with a competitive edge by revealing patterns, relationships, and insights.

How does accurate, timely information give a hospitality firm a competitive edge?

It enables better guest service, smarter marketing, faster decisions, and more effective control over operations.

What three security mechanisms commonly enforce information-system policies?

Passwords, encryption, and software restrictions (e.g., firewalls or access controls).

What does the phrase “garbage in equals garbage out” mean in data collection?

Poor-quality input data results in unreliable, misleading, or useless output information.

Why can data and information be described as perishable?

Their value diminishes over time if they are not applied promptly in the context for which they were gathered.

List the five basic stages of the information lifecycle highlighted in Module 3.

Data collection, data cleaning & standardizing, analysis & synthesis, reporting & communication, interpretation & application (with ROI measurement).

Define infrastructure in the context of a hospitality business.

The people, technology, processes, and organizational structure that support smooth operations, accurate information, revenue, and guest experience.

Why is security considered a critical element of business infrastructure?

It protects data from unauthorized access or alteration through tools such as firewalls, passwords, and encryption.

What management tool evaluates organizational performance through multiple perspectives?

The Balanced Scorecard (BSC).

What are the four perspectives of the Balanced Scorecard?

Financial, Customer, Internal Processes, and Learning & Growth.

Give two key benefits of implementing a Balanced Scorecard.

Improved strategic focus and enhanced performance accountability (others include better communication and data-driven decisions).

Define an Information System (IS).

A combination of hardware, software, data, people, and procedures that collect, process, store, and distribute information to support organizational functions.

What are the five core components of an Information System?

Hardware, software, data, people, and processes/procedures.

Which information system type handles routine day-to-day transactions such as POS operations?

A Transaction Processing System (TPS).

What is the primary purpose of a Decision Support System (DSS)?

To analyze large data sets and assist managers in making informed, non-routine decisions.

What does the KPI "Occupancy Rate" measure in a hotel?

The percentage of available rooms sold during a specific period.

Conceptually, what does Average Daily Rate (ADR) represent?

The average income earned per paid, occupied room.

RevPAR combines which two metrics to show overall room performance?

Occupancy Rate and Average Daily Rate (ADR).

Which KPI focuses on profitability after operational costs are deducted?

Gross Operating Profit per Available Room (GOPPAR).

Name two technology tools used to monitor performance in hospitality operations.

Property Management Systems (PMS) and Revenue Management Systems (RMS) (others include BI dashboards and benchmarking tools).

What is a competitive advantage?

An attribute or set of attributes that allows a firm to outperform rivals in sales, profits, or customer loyalty.

Give one cost-based strategy for creating competitive advantage.

Lowering the cost structure by optimizing operations to reduce expenses.

List three metrics commonly used to measure competitive advantage.

Market share, customer loyalty, and profitability (others: product quality, brand recognition, employee loyalty).

What does “competitive asymmetry” mean regarding sustainable advantage?

Performance differences arising from unique resources that competitors cannot easily replicate.

State two conditions under which a firm’s competitive advantage can be lost.

When the advantage becomes obsolete or when competitors offer cheaper or easily replicated alternatives.