Integrated thinking should be a component of any organization. For example, you wouldn’t change a key component of a product or brand without first considering the broader impact it will have on operations, manufacturing, pricing, or marketing. Therefore, the same thought process should be applied for your analytical capabilities, with the core components of Revenue Management such as segmentation, pricing, promotions and inventory management as the basis. To embark on this journey, here's how to get started:
Craft a high-level vision for Integrated Revenue Management by defining what your future state should look like. Detail your current state of Revenue Management and draft what you need it to be in the near future. For example, you may recognize that currently your organization lacks holistic capabilities across your market segments – perhaps you’re solely focused on transient transactions with no focus on group, contract or other meaningful segments for your properties. Today’s view also might not be appreciative of the true Customer Lifetime Value (CLV) which would factor in the potential for future stays, as well as additional revenue streams such as food and beverage.
To address these issues, create a cross-functional group that understands the key decisions made today across the organization as well as the information required to make decisions and how those decisions impact other departments. Executed correctly, this process will secure organizational consensus and reduce wasted time, clearing the way for significant organic revenue growth.
Translate the vision into key capabilities along dimensions of organization, data, analytical solutions, and business processes. It is essential to demonstrate the value of new capabilities. Estimate the goal and feasibility of success with current data, systems, applications, and organizational processes. Prioritize efforts strategically over time to ensure each phase delivers value and no single area of the organization is overwhelmed or overlooked.
Design new capabilities with the end product and end user in mind. If you need a capability that will encompass price or promotion optimization, design with the end user’s future interactions in mind. Make sure you include end users in your discovery and testing. This is key to driving user adoption once the solution is rolled out.
Organization & Governance
Create a cross-functional group of stakeholders that is accountable for executing the vision under the leadership of an executive-level sponsor. Define the group’s objective and what success looks like for the project. Establish clear roles and accountabilities for each stakeholder, such as owning the process of user acceptance testing, and a cadence for reporting on progress. Instill the importance of collaboration within the stakeholders and other contributing parties, because acting as a cohesive group is critical to the success and adoption of the project.
Following these steps will systematically drive cross-functional collaboration and decision-making that will maximize revenue and unlock enormous competitive advantage for your organization.