At least 46% of businesses don’t have a formal strategy for data usage. Without effective data management, companies run the risk of mishandling sensitive data, noncompliance with data privacy regulations, and distributing data of significantly poor quality. Data governance (DG), a vital data management concept for enterprise systems, exists specifically to combat these potential issues.
Every aspect of data governance consists of the management processes of the use, availability, integrity, and safeguards associated with all internal data within different enterprise systems. Companies are wasting $62 million on data storage space that is unnecessary for what they need and this is a clear example of the importance of having consistently trustworthy data and data standards that help to prevent its misuse.
By implementing simple data governance models data governance challenges can be avoided, save companies time, and strengthen company profits. While there are some obstacles that surround this concept, there are solutions to overcome them.
Recognizing the Importance of Modern Data Governance
In the “information era” rapidly evolving technologies, and cutting-edge analytics and where massive amounts of data are used every day to drive critical business processes and decisions, data governance plays a vital role in every organization. From setting data management rules and regulations to measuring data quality and defining data interpretation processes, the benefits of following data management best practices are essential for forming proper business planning methods, and accounting approaches, and limiting operational risk.
Enterprise data governance challenges present companies with a wide range of potential problems that could affect their resource allocation tactics, operational decision-making, and revenue sustainability. If a corporation intends to be “data-driven” it must successfully adopt data governance which is an ongoing problem for a variety of companies across multiple industries. DG lays the foundation for organizational data and it gives meaning to all the data that a company has.
This concept is important because it streamlines digital transformations and ensures the accuracy and reliability of all data that a company uses. The main purpose of DG is to optimize the quality of data and to decrease the chance that internal data is incomplete, inaccurate, or duplicated.
The Top Data Governance Issues and How to Solve Them
Some of the biggest challenges revolve around a lack of data control. Uncontrolled data results, misuse of resources and noncompliance with regulatory mandates are some of these issues. Due to problems like this, companies often struggle with identifying what to avoid when implementing a data governance program. For example, some of the most commonly made mistakes with data governance are having
Unclear objectives
Data that is inconsistent or unrelated to what the business specifically needs
Not enough focus on data organization processes and too much on individual tools
Silo prevention tactics that come too late
Additionally, data management challenges can address a variety of other hurdles. Whether poor risk management decisions, data loss, data breaches, or unregulated environments, the data governance framework is designed to adapt to these obstacles through its four pillars. The four pillars of DG include:
To get a better understanding of why challenges of data governance and data governance risk are often complex, it’s best to get an idea of the type of problems companies often face, why these key data governance issues occur, and the potential solutions that could remedy them.
Soiled Data
The problem with soiled data is that it causes a range of data governance issues. Some of these could be productivity losses and a waste of resources. At least 26% of global companies have bad data. Another word for this is “dirty data” and it can cause company budgets to be used incorrectly which often causes a downward dive in revenue.
Soiled data is any information that isn't accurate, that’s inconsistent, incomplete, insecure, or simply outdated. One of the key challenges for data governance is exactly this as it contributes to the dysfunction of enterprise databases. Without eliminating dirty data before implementing data governance practices, they won’t be as effective. To get rid of flawed data, you'll have to reassess the infrastructure of your company’s data management processes. Basically, instead of cleaning up what’s already dirty, you should, in a sense start over.
Resource Limitations and Misallocation
Better resource allocation can help to establish more accurate decision-making and data collection processes. A lot of the time, misallocation stems from a scarcity of resources altogether. This can sometimes happen when a corporation doesn’t have the capacity to develop a program dedicated to key challenges for data governance.
Not having proper resources for issues in data governance can result in additional problems. It can inhibit the use of business intelligence and artificial intelligence tactics. To strengthen your data governance approach, know what should be assigned to who. Determining this starts with a better understanding of a company’s data and what that corporation actually requires. As a tip, making use of data lineage is a good approach for visualizing the data. It will also help with forming a more in-depth understanding of what data is being collected.
Using master data management (MDM) is a useful consideration as well. This is a form of technology that helps to make use of master data coordination across an entire company.
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Data silos are a form of insular management. What this means is that this type of system doesn’t have the capability to reciprocate information and is unable to talk to other systems. The data they collect is owned by one department within a company. However, that same data isn’t accessible to other groups within that same company. In other terms, data silos are formations of data that aren’t compatible with internal multi-departmental communications.
Data silos, unfortunately, put strain on the user limitations of enterprise data. This also limits the use cases for that same data which negatively alters business decision-making and proper collaboration. Overall, most companies don’t assume that data silos are much to worry about initially and this is where the issues arise. Over time, they become more problematic and limit data strategy options. By that point, data analytics and analysis methods will have already become unnecessarily complex.
Lack of Data Ownership
A common misconception is that IT has full ownership over a company’s data. This is untrue and really, ownership over data involves various departments. The best way to approach forming the proper structure of ownership is to develop an ownership model. Ownership of enterprise data is often split into three different categories;
Ownership; includes full responsibility as well as possession of that information
Stewardship; oversight of usability, safety, trustworthiness, and accessibility of data assets including quality
Custodianship; assembly and storage of data sets including data use case determination
It’s important to realize that data governance is a compilation of different procedures and policies that are used to aid the functioning of an enterprise database. Data governance is technically different from data ownership, stewardship, and other facets of data control. They all, however, do work together and without one, another component may not be as effective. For example, without data stewardship, ownership of data won’t be as simple to follow. Without data security, data governance, regardless of its success, could still experience a data breach or problems with data access.
Implementing an ownership model will help to determine those that have direct access and control of a company’s information. This affects accountability, the stability of a company’s database, as well as the levels of security surrounding that data. Having a lack of data ownership will often result in a higher potential of the quality and accuracy of data suffering.
Companies often plan to diversify their risks and this is why at least 42% of businesses have no appointed data owner at all. In general, the majority of corporations default to leaning completely on IT for taking on the role of data ownership and use. This is one of the most common reasons that an organization would experience issues with data governance.
Overloading Unstructured Data
Unstructured data wastes company time and funds. It takes a long time to process, there is no standardization involved, and the conversion of it to useful information can come with a hefty price tag. There are multiple ways to limit the challenges in data governance associated with unstructured data.
Businesses can ensure that they only utilize trusted data sources. They can also establish policies that limit the incidents of data becoming unstructured. Additionally, all bad and irrelevant data should be disposed of properly instead of allowing it to accumulate.
Final Thoughts
Data governance problems can stall company operations and cause a loss of funds. Irrelevant and inaccurate data only contributes to the problems that multiple data silos and poor resource allocation presents. The main issue behind failing data governance strategies is the complete lack of proper data housing. If companies continue to allow their departments to operate as disconnected entities, there will never be a clear picture of enterprise data, how it works, and how relevant and accurate it truly is.
Consider Intellectsoft Your Trusted Partner
Intellectsoft focuses on designing and delivering cutting-edge technology solutions for companies across the globe. With specific expertise in digital transformation and product engineering, Intellectsoft offers services tailored to solving a variety of enterprise data and technology problems.
Streamlining data usage and internal approaches to a variety of some of the most unique and biggest challenges in data governance is simple with the right form of help. Our knowledgeable and experienced team specializes in cloud computing and workflow automation, and big data processing, and offers consulting services. Your business will benefit from an effective and custom software development solution that takes your project from end to end with enhanced efficiency and no confusion. To get started, learn more about our services.
FAQ
Are challenges of data governance avoidable and can they help to better a company’s decision making processes?
Yes, data governance issues are avoidable with the right preventive measures and expert guidance. It can also help with the way a company uses its data to make better-informed decisions.
What are the most featured ways to approach data management and address using data governance the right way?
Developing a data strategy is the top solution for approaching data governance issues. Ways that common challenges in managing data can be addressed using data governance will require establishing an appropriate governance model, identifying potential risk factors, and ensuring your data is adaptable.
The hospitality industry depends a lot on keeping customers happy, but it’s getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and increase revenue? Keep reading—we’ve got some answers.
Customers today have so many options that getting their attention is a real challenge. It’s not easy to make them choose your business over others. What worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy, expectations have changed. The good news is these businesses have shown what works: great customer service. They focus on personalizing the experience, making things easy for customers, offering loyalty programs, and using smart technology.
In this article, we’ll explore these tech strategies and show you how they can help your business grow, and double the revenue. Keep reading to learn more!
The Importance of Customer Satisfaction in the Hospitality Industry
Customer satisfaction, which equals exceptional customer experience, is the backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a company, even if they experience a negative encounter.
Let's quickly review the challenges the hospitality industry is facing right now so we can move on to the solutions and our case studies.
Challenges in Hospitality
As businesses navigate the changes in the hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!
Poor Customer Service
Even with strong and high-quality business offerings, poor customer service can drive potential customers and existing customers away. Common issues include:
Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls
These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with technology, can address them effectively.
Digital Transformation Gaps
Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39% upgrading existing systems. Source: workstaff.app
While many businesses are adopting digital solutions, some still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage their data and create new systems or add features.
Some of the recent examples include clients coming to us to create AI solutions for their services while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company objective, and working on keeping the data clean (centralized, structured, and segmented).
When we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing, centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so we can create a unified digital system that delivers personalized experiences.
If you’re unsure where to start with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide you in mapping out a path to get more from your data and build a system that works for your business and team.
Reskilling Staff
The pandemic hit hard in early 2020, especially for the hospitality and travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and retaining skilled staff has become a major challenge post-pandemic.
Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers place it among their top three workforce challenges.
We strongly believe that adopting the right technology can help. For example, creating an app to train your staff not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team, helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine having an app dedicated to making your team’s work easier and more efficient!
How Technology Tackles These Challenges and Supports a Customer-Centric Hospitality Culture
Automation, AI, and similar technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation and working hand in hand with technology to achieve the highest standards and establish brand-new “golden standards.” Technology is here to assist staff in listening to and collecting customer insights from data.
Let’s review some of our cases to see examples of how technology helps improve customer experience and supports customer service.
Examples of Intellectsoft projects
Property management systems (PMS)
We created a web platform and mobile app that makes managing daily tasks easier and offers extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The platform also includes features for equipment management, key instructions, workflows, and custom permissions. This makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus, tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged community.
Guest Experience Management App
Our next app helped our client improve their guest experience by replacing printed marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining, make reservations, and interact with staff— through a simple tablet in their room. The solution includes three parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and a backend system that connects everything together. This approach makes things easier for guests and staff, improving both convenience and efficiency.
Existing Customers First: Building Loyalty with Personalized Touchpoints
Keeping existing customers is not just a strategy; it’s well-known that retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the number one revenue driver for the company.
Moreover, a 5% increase in customer retention can lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business model.
Personalization: How Technology Can Help?
Everyone loves to feel special—it’s part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t forget.
More than half of hotel chains are already using personalization features on their websites, booking platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest preferences perfectly.
Source: Deloitte
How does technology make it happen?
CRM Systems: They help you keep track of guest preferences, booking history, and special requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls adjust to your guests’ preferences, making their stay more comfortable.
With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every customer.
Our Case Study: Smart Hotel Management & Loyalty Program
For one of our clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to control services, explore amenities, and find resort information-- with a special touch to their suite type. For the client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing issues, and making the system better for customers.
Along with that, we developed a mobile app for the loyalty program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive benefits.
Our solutions not only helped the client with special experiences for guests; it also improved operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:
"We transitioned away from ESB (Enterprise Service Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions. Similarly, we’ve implemented Device Farms that improved operations and saved resources."
Leveraging Software to Increase Upsell Opportunities
Here are some examples of tech tactics that will help your team sell more and introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:
Dynamic Pricing Algorithms
For finance and marketing teams, manually calculating pricing by segment to introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by analyzing your database in detail.
Upselling via Apps
Boosting revenue in the hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience. And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their previous experiences. It’s a win-win: seamless, helpful, and far from pushy.
Inventory and Resource Management Software
Making every resource count in your hospitality business is key. Inventory and resource management software allows you to effortlessly track everything from linens to room availability, ensuring nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations assists sustainably keep everything under control and know what you need to focus more. It helps maximize room occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.
Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how technology can elevate your goals? We’re here to create a tailored solution for you.
Steps For Implementing a Customer Service Technology Solution
Improving customer service in hospitality doesn’t have to be a daunting task. With the right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest experience. Here’s where you can make it happen:
1. Understand Your Needs
Start by identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best solutions.
2. Pick the Right Tools
Choose technology that aligns with your goals. Look for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM software, live chat tools, or a guest experience app can make a difference.
3. Equip Your Team
Technology is only as effective as the people using it. Train your staff to make the most of the new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff creates happy, loyal customers.
4. Keep Improving
Once implemented, monitor how well the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you fine-tune your approach and keep things running harmoniously.
Some Tech Ideas for Hospitality Businesses
CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility bookings.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.
Integrating these strategies will not only improve your customer service but also deliver unforgettable customer satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our experts.
Conclusion
To wrap up everything we've discussed, customer satisfaction and experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.
At Intellectsoft, with over 17 years of experience in software development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer experience and retain your valuable clients.
Ready to double your revenue and level up your customer retention strategy with personalized technology? Contact our experts, and we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.
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