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Making informed decisions

Reports from IT analysis firms help executives select technology and plan strategy.
By Suzanne Gaspar , Network World , 03/17/2003
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The rise in commodity information and drop in IT spending has ignited a change in how firms deliver research to best meet customer needs. In a strained economy, IT often requires better access to consulting and to a detailed view.

As companies look for ways to squeeze more out of their IT investment, they're tapping research from Forrester Research, Gartner and other advisory services to help them place educated bets on vendor selection, acquisition and deployment. IT analysis can help IT executives build a business case around a technology and benchmark IT efforts against industry peers.

Hilton Hotels is spending more than $100,000 for Forrester services this year, more than $25,000 for Giga Information Group services and $8,000 for Norex Online IT peer subscription to shared experience and strategy.

Forrester Research is helping Hilton CIO Tim Harvey formulate a strategy for increasing online revenue from customers who previously booked rooms through Hilton's call centers. Harvey says insight into what online travel services are used, and what percentage of business has shifted to travel sites such as Priceline and Expedia, helps IT determine how to lure customers to hilton.com.

With Forrester forecasting total online U.S. travel purchases to increase from an estimated $29 billion this year to $35 billion in 2004, IT is gearing up to position the Memphis hotel chain for growth. Reservation system changes now ensure that honors points are assigned to customers who book rooms through Hilton's Web site. The company also is evaluating the potential for guaranteeing those customers the lowest room rates, a strategy that would require IT to integrate applications for managing rates across all distribution channels. "The research from Forrester predicted those were the kinds of changes we needed to make," Harvey says.

Moreover, four years worth of Giga research has led Hilton to select frame relay for the WAN, EMC for storage, and identify a feasible timeframe for replacing phone lines in hotel rooms with high-speed internet access, he says.

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