Starwood Hotels & Resorts Manages Hotel Profitability with Data Warehousing Harvard Case Solution & Analysis

Starwood Hotels & Resorts Manages Hotel Profitability with Data Warehousing Case Solution

Question 1:

How big and complex are the business operations of Starwood Hotels & Resorts?

As Starwood is one of the most successful hotels and leisure's in the world with the properties more than 1112, also it has more than 154,000 employees in 100 countries around the globe. With the large expansion of the business, Starwood was suffering a complex process of operating a business through a single unified data warehouse system. However, due to expanding the business operations, many managers was concerning about the future technological system that would be able to handle the large information effectively and without wasting any time.

On the other side, the successful implementation of Starwood loyalty program also increased the business need to use the data information in an effective way due to the fact that the program required a more critical evaluation in order to retain the special guests with more stay period, upgrade the resort activities for them or any other source used to increase the retention rate for profit maximization. With all these discussions, it is concluded that Starwood handled the complex information based on the expansion business overtime.

Question 2:

How did Starwood Hotels & Resorts use data warehousing for better profitability?

From the following information given in a case, it clearly shows that Starwood was considering a better use of data warehouse system to boost the profitability for the business. For that, it used various attractive programs to increase the size of guests as well as retain them for the considerable period. However, the main concern of effective operations was the proper use of data warehousing, where the business was experiencing a change in the trend because a more corporate expansion would cause a complex information systems and unable a single unified data warehousing to manage the things properly and quickly.

Therefore, managers and analysts predicted that for every new information, data warehousing would first save and store the information, then transfer into the processing and evaluating. This type of process would require at least 18 to 24 hours to manage the information in an effective way. So the managers were looking to reduce the time in order to increase the informational size and process quickly. However, they introduced Extradata information system to process the critical information within 5 to 6 hours instead of taking a long period. So this new system allowed to manage the operations quickly and effectively and increase the profitability of the business more than the expected one. .....................

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