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Abstract
This article firstly addresses the development of systems thinking, particularly in relation to
business applications. Distinctions between hard and soft approaches are discussed in relation
to human activity systems, such as the hospitality industry. Secondly, the subject of technology
transfer is described because of its significance to the successful exploitation of technology
within the hospitality industry. This is followed by a review of recent papers which describe
particular innovative technological applications within the hospitality industry. In conclusion,
parallels are drawn between the key features of soft systems and technology transfer, namely
that the successful application of technology within the hospitality industry requires a full
recognition of the importance of all people involved with the service, a thorough analysis of the
appropriateness of the technology and a detailed plan for the design and implementation of the
technology. ( 1998 Elsevier Science Ltd. All rights reserved.
In reviewing the uses made of the theories and applications of both systems and
technology within the hospitality industry, it is useful initially to explore the meaning
of these terms within this paper, as they both have a range of common meanings. The
term technology is usually related to the use of scientific method where a reductionist
approach is used in situations where ‘‘problems as a whole are better understood if
they are reduced into the simplest possible elements’’ (Easterby-Smith et al., 1991). In
business literature, technology generally has at least three meanings (Grosse, 1996,
p. 782): ‘‘product technology, the knowledge used to produce any product — the
information that specifies the product’s characteristics and uses; process technology,
the knowledge used in production to organise the inputs and operate the machinery
— it relates to the process by which a given product or service is produced; management
technology, the knowledge used in operating a business — the management skills that
enable a firm to compete by using its resources effectively’’.
Within this range of technology types, systems (e.g. operating systems, communica-
tion systems, management systems) can themselves be considered as technology, and
like ‘‘hard’’ technologies will not make the organisation or business a success simply
0278—4319/98/$19.00 ( 1998 Elsevier Science Ltd. All rights reserved.
PII: S 02 7 8— 4 31 9 ( 98 ) 0 00 1 6— 4
204 D. Kirk, R. Pine/Hospitality Management 17 (1998) 203—217
by their possession. In this respect Grosse (1996, p. 782) raises the concept of superior
technology, where the technology in a firm’s possession may be the same as that held
by many others, but its ‘‘superior’’ nature is derived from the actual competitive
advantage which accrues to the firm from its use. ‘‘Each of these types of technology
can create a competitive advantage for the firm that posses it. That is, although firms
possess each type of technology, an advantage accrues to firms that are able to obtain
or deploy superior technology’’.
Although the word systems is very old, its modern meaning goes back to the middle
of this century when engineers and designers were finding increasing problems with
the reductionist approach of the scientific method when applied to complex situations.
The development in systems thinking as an alternative to this reductionist approach,
which began in the 1950s, is discussed by Johnston (1994). He makes the point that,
particularly in the developing service industries, the reductionist approach (with its
emphasis on optimisation of a small component of the business) was not leading to the
anticipated overall benefits. Instead there was a need for a more holistic view of the
organisation, a view supported by Grönroos (1994). Furthermore, the holistic per-
spective provided by the use of systems theory helps an organisation to better
appreciate its technology needs in relation to all elements of the organisation, and
how best to deploy such technology.
1. Developments in systems
The modern use of the term ‘‘systems’’ began, when it was found that many natural
and man-made organisations could not be described by looking at the detailed
interaction of individual parts (reductionism); instead it was necessary to look at the
relationship of the parts (or sub-systems) and of their interactions (holism). Because of
the need to consider situations of high complexity, the systems approach became
increasingly important (Jenkins, 1981). This approach to understanding complex
organisations had great significance in that it could be applied just as effectively to the
management of businesses as it could to ecological systems, solar systems and
engineering systems. In contrast to this systemic approach (which looks at the
components of a system and the nature of their interactions both with each other and
with their environment), the idea of a systematic approach to problem solving was
developed (Patching, 1990, p. 125). Here, a set of defined stages or steps was used as
a problem-solving tool. In particular, this approach was developed for use by com-
puter scientists in order to develop the process of systems analysis and programming.
Another important concept which came out of the systems movement was the need
to look at those outputs of the system which could not be predicted directly from the
known behaviour of the individual parts. These outputs (or emergent properties)
occur at a higher level in the hierarchy of the system and can only be predicted from
a study of the interaction between the sub-systems (Patching, 1990, pp. 10—12), not
from an understanding of the sub-systems in isolation.
The principles of the general systems theory, systems analysis and systems behav-
iour have all been applied to business organisations. However, understanding a busi-
D. Kirk, R. Pine/Hospitality Management 17 (1998) 203—217 205
ness organisation is insufficient by itself. One significant development has been the
ability to predict the behaviour of a complex system through the process of ‘systems
modelling’. Models of systems may be delivered through precise mathematical
equations where the output can be accurately determined from a knowledge of
the inputs (deterministic models). These are essentially glass box models, where the
precise relationship between components is modelled on the basis of known relation-
ships.
With many natural and human activity systems, the output can only be determined
in a probabilistic manner based upon a statistical (stochastic) model. These are often
black box models where we establish explanations of how the systems works by
understanding the relationships between inputs (independent variables) and outputs
(dependent variables). When considering models of business organisations, multivari-
ate models have proved to be particularly useful to explain complex interactive
relationships.
In very complex systems, even these systems models have been found often not to
work. A more recent development, chaos theory, has been used to model known but
complex relationships. Although chaos theory has been mainly applied in areas such
as mathematics, engineering and meteorology, Lorentz (1993) points out that ‘‘eco-
nomists have learned from experience how various aggregates of people can influence
the economy. They have formulated simple systems of equations that incorporate
some of the assumed interactions and in some instances have encountered chaotic
solutions’’. The application of this theory to the business organisation has also been
considered (Glass, 1996). Because the contemporary business organisation is a com-
plex open system (under the influence of internal political and cultural processes) and
operating in an environment which is undergoing rapid change, conventional linear
planning models cannot work and a simulation of the system is likely to be much
more effective. Chaos theory develops the concepts of dynamic systems modelling, but
in situations where the initial conditions can have a highly significant effect on the way
in which the model develops over time (Hibbert and Wilkinson, 1994). Chaos theory
has been suggested as a means of modelling complex and dynamic business systems in
order to develop alternative strategies (Levy, 1994).
Another important development in the field of systems is that of soft systems
(Checkland, 1981). In a soft systems approach, relatively unstructured problems
without clear or agreed goals can be solved. The soft systems approach has been
applied to a wide range of problem situations (Patching, 1990, pp. 123—165). This
approach recognises that people in the system have different implicit and explicit roles
and that they each come with their own world view or ¼eltanshaung (Smyth and
Checkland, 1976). Whilst a lot of the origins of systems thinking lies in the area of hard
systems, where dynamic systems can be modelled using a range of mathematical
techniques, the value in relation to many human activity systems is in the concepts of
holism, hierarchies and emergent properties. In this context, hard systems ‘‘thinking
and analysis is essentially concerned with the question of how to achieve a predeter-
mined aim; soft is concerned with defining the options for improvement; in other
words, addressing the what to do question’’ (Patching, 1990, p. 27). Soft systems
approaches are very relevant to any human activity system, and, in particular, at the
206 D. Kirk, R. Pine/Hospitality Management 17 (1998) 203—217
2. Technology
knowledge and methods for achieving plans in a changing environment, and thus
encompasses management systems and techniques as well as the physical artefacts of
technology, such as equipment and machines.
3. Types of technology
its successful utilisation. The successful utilisation of any technology is not only
dependent upon its technical aspects, but also, and probably more, dependant on the
way people (as individuals, work teams, or whole societies) interact with and accept
the technology. This is the process of technology transfer.
4. Technology transfer
Hawthorne (1971, p. 8), Stewart (1987, p. 169) and Seurat (1979, p. 1) provide basic
definitions of technology transfer, all of which identify the transmission of knowledge
from the transferor to the transferee. Stewart and Nihei (1987, p. 3) equate technology
transfer with foreign direct investment and the ability of local employees to implement
new technology in local organisations. Dahlman and Westphal (1983, p. 7) identify three
levels of technology transfer, which it is possible to align to a hotel industry context.
f ¸evel 1. The capability required to operate a technology, for example, to run and
maintain a plant [or hotel].
f ¸evel 2. Investment capability — that required to create new productive capacity
[or new hotels].
f ¸evel 3. Innovation capability — the ability to modify and improve methods and
products [or hotel services and provision].
All these levels require different types of skills and different supporting institutions.
Levels 1 and 2 are relatively easy to achieve (through learning on the job and through
formal training). Level 3 is the most difficult to achieve as it demands not necessarily
a highly technical ability, but ‘‘imagination and a mental set always seeking better
ways’’ (Stewart and Nihei, 1987, p. 4). The possession of an appropriate attitude or
mental set, plus the ability to benefit from vocational education, are linked to the
educational provision available in a country (Pine, 1991, 1992, 1996). Hong (1994, p.
21) argues that the key issue of technology transfer is how to create methods of
learning technology and to change the way that trainees think. ‘‘Technology transfer
usually requires training, but the technology receiver will never catch up if the training
is inefficient or ineffective’’.
Reddy and Zhao (1990) provide a most comprehensive review of international
technology transfer (ITT). It should be appreciated that their review focuses on
transfer at national country level, but even so the overall process they describe can be
applied to a greater or lesser extent to a specific industry or even an individual firm.
Furthermore, the framework they produced for their literature review is itself en-
lightening in providing the reader with a better understanding of technology transfer
just by reference to the various factors listed for consideration, as shown in Table 1.
They first identify two dimensions of ITT, horizontal and vertical. The horizontal
component has three base elements: home country (or catering equipment supplier, or
reservations software producers, or hotel group head office operations manuals),
which is where the technology originates; host country (or restaurant, or reservations
department, or group hotel), which is the recipient of the technology; and, a transac-
tion. The vertical dimension is a recognition that there will be issues and analyses
D. Kirk, R. Pine/Hospitality Management 17 (1998) 203—217 209
Table 1
International technology transfer literature review framework (Reddy and Zhao, 1990:
p. 286)
which are specific to the home and the host countries, as well as the individual
industry or firm involved in each country.
In a study of 73 firms (including 10 hotels) across five service industry sectors in
Latin America, Grosse (1996, pp. 786—787) identifies various key technology types.
210 D. Kirk, R. Pine/Hospitality Management 17 (1998) 203—217
The key technology in every service sector was found to be some sort of personal
knowledge held by employees; they are all ‘‘soft’’ skills, not embodied in a firm’s
machines or physical resources, but in its people. The top five, in descending order,
were:
If these are categorised in the same way as for industrial firms, then the first of these
most closely relates to product technology, the second and fourth to process techno-
logy, and third and fifth to management technology. Interestingly, knowledge of, or
experience in, the business is the only (or most significant) key technology found in
hotels in the study. In his conclusions, Grosse (1996, p. 796) reports that there were
a variety of ways in which these key technologies were transferred internationally, but
they all emphasised people-transfers, e.g. training programs, visits by experts and the
employment of expatriates. In fact, these are very similar to the measures of techno-
logy transfer specifically in the hotel industry used by Pine (1991).
Research focusing on the use of technology in the UK catering industry (Pine, 1985)
and then more broadly targeting technology transfer in the international hotel
industry (Pine, 1991) reached relatively similar conclusions to each other and to more
recent work by Grosse, i.e. that the people involved in the process are of crucial
importance for the overall success of the technology. Not only do people need to be
capable and willing participants in the transfer process, but they need to be provided
with adequate education, training, development and promotion opportunities so that
they can fully participate in the process (Pine, 1992, 1996).
As pointed out by Baker and Riley (1994) the service industry literature has
a weakness in establishing the relationship between the use of technology and its
impact on productivity. Within this existing literature base, much of the focus has
been on information technology. Interviews with several senior hotel executives
revealed that a common view of information technology is to allow hotels to ‘‘do more
with less’’ (Go et al., 1994), although there is a caution that technology alone is not
a full answer in such a people-service dominated industry. In their discussion on
globalisation in the hotel industry, Go and Pine (1995) make continuous references to
various areas of technology, particularly information technology, and its relevance to
many aspects of success. IHA (1996, p. 58) recognises the continuing importance of
technology to the hospitality industry, reporting that technology is ‘‘shaping up to be
the most significant competitive advantage hospitality firms can have throughout the
remainder of the 1990s and beyond’’. The IHA report lists those areas where techno-
logy can, or can become, a major force in providing such competitive advantage as
D. Kirk, R. Pine/Hospitality Management 17 (1998) 203—217 211
follows: competitive methods; decision support; smart hotel room; security manage-
ment; communications technology; improved management control; environment;
alternatives to travel; restructuring of the hospitality firm; and, marketing the indus-
try. Some of these possibilities are in the areas of productivity, management decision-
making, education and training, the guest experience, and marketing channels.
It is frequently claimed that a major impact of technology is to improve productiv-
ity, particularly labour productivity. Pickworth (1994) discusses the relationship
between technology and productivity. The use of the term ‘‘productivity paradox’’ has
been coined, to signify increasing evidence that potential productivity gains predicted
on the basis of an investment in technology do not, in practice, always materialise.
Without the introduction of a change in management strategy and the training and
motivation of staff, investment in technology may be wasted (Haywood, 1990).
However, Wilcocks and Lester (1996) indicate that the productivity paradox is not
inevitable provided that technology is properly planned and that considerable
attention is paid to the human issue. In this regard, Holiday Inn Worldwide state
that information technology can provide not only improved quality and productivity,
but also competitive advantage, especially in service businesses when technology
is used to empower employees to better serve customers and to empower cus-
tomers by making it easier for them to do business with the firm (Go and Pine, 1995).
David et al. (1996), in a survey of chief financial officers of large hotel companies,
found actual productivity benefits resulting from the use of information technology
in reservations, rooms, guest accounting, general management and back of house
procedures.
Information technology can be used to support management decision making
(Kasavana, 1996). For example, packages can be used for simulation, modelling and
decision making (Durocher and Niman, 1993). Suggested examples from the literature
are: the use of expert systems to provide a greater yield from a hotel (Cho and
Connolly, 1996); and to provide the knowledge base of the hotel concierge (Cho et al.,
1996).
Technology can also enhance education and training through the use of interactive
computer based video instruction (Kavanaugh and Ninemeier, 1991). A useful review
of the uses of information technology in the hospitality curriculum is provided by
Kluge (1996).
Fourth, it is claimed by some authors that information technology can satisfy as yet
unmet demands from guests, through the provision of in-room facilities, based on the
in-room TV plus console as a computer terminal together with sockets for modem
communication (Baker, 1993). These in-room facilities, coupled with business suites, it
is claimed, can enhance the guest experience and provide a marketing advantage.
Information technology is also affecting the nature of marketing communications
and channels of distribution. The development of integrated communications networks
covering in-room services, business suites, integration with airline reservation systems,
travel agents, global distribution systems (GDS) (Emmer et al., 1993), electronic
financial transactions (FTPOS) telecommunications, EMAIL, teleconferencing (Sing
and Chon, 1993; Go and Pine, 1995) and networking (Chervenak, 1993; Moore and
Wilkinson, 1993; Go and Pine, 1995) is revolutionising the business. In addition to
212 D. Kirk, R. Pine/Hospitality Management 17 (1998) 203—217
5. The future
Two recent reports aim to look at the future of the hospitality industry and both
include sections on technology. Hospitality 2000: A »iew to the Next Millennium
(Anon, 1996) focuses mainly on the impact of computers and information technology.
However, they also examine the ‘‘people versus computers’’ issue, reporting that 85%
of their 498 survey respondents agree that technology cannot replace the human
element involved in delivering quality service. They also confirm the anomalous
D. Kirk, R. Pine/Hospitality Management 17 (1998) 203—217 213
situation where technology can decrease markets (for example the use of interactive
video transmissions reducing the demand for hotel rooms as business travel becomes
less necessary) and also increase markets (for example, portable computers and
efficient communication networks allow business people to be free from a fixed and
physical office, allowing them to travel more to have personal interaction with
customers, business partners, suppliers, etc., and thus create a greater demand for
hotel rooms and facilities). Into the New Millennium (IHA, 1996) has a similar view of
computer-based technology, but also looks at the way technology, more generally,
can be utilised by the industry, for example to address increasing labour costs by the
use of more automation and more efficient systems of operation, hotel design and the
provision of innovative services and products. Examples given in the report include
the use of ‘‘electronic concierges’’ to provide guest information in the room, in public
areas of the hotel or even via internet. The use of other technology based guest services
such as check-in/check-out, room security and climate controls and external com-
munications ‘‘will continue to become major competitive weapons which allow an
increasingly individualistic guest to control their own travel environment’’ (IHA,
1996, p. 59).
6. Methodological issues
Table 2
Approach to research in hospitality systems
Table 3
Approach to research in hospitality technology
7. Conclusions
In this review, the authors have attempted to demonstrate that, whilst technology is
undoubtedly being used to shape the future hospitality industry, its use is not without
problems. Much of the literature addresses the use of technology at an operational
and control level, rather than at a planning or strategic level. Technology should be
viewed as a potential for advancement and not as advancement per se. A study of
technology transfer indicates that technology can only be successfully integrated into
a business if human factors are taken into account. This information parallels our
understanding of the change process as explained by soft systems concepts. In the area
of human activity systems, simple reductionist models of relationships between
investment in technology and improvements in productivity are unlikely to be realised
D. Kirk, R. Pine/Hospitality Management 17 (1998) 203—217 215
unless full account is taken of a number of factors: the importance of all people in the
system (staff and customers); the importance of the proper selection of technology and
the avoidance of ‘‘off-the-shelf solutions’’; the avoidance technology infatuation; and
the importance of proper objectives for the use of technology.
In coming to these conclusions, it can be seen that there are analogies between the
use of soft systems approaches in business and in the adoption of technological
solutions, particularly as they relate to the involvement of people within the system.
By viewing technology as part of holistic human activity systems, successful techno-
logy transfer is more likely to be achieved, and then the technology is more likely to
make a useful and acceptable contribution to the organisation.
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