Questions: 1- What management, organization, and technology factors were behind the Cincinnati Zoo losing opportunities to increase revenue? 2- How did the Cincinnati Zoo benefit from business intelligence? How did it enhance operational performance and decision making? What role was played by predictive analytics?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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more precisely to smaller groups of people, increasing
its chances of identifying the people who were most
likely to respond to its mailings. More targeted
marketing helped the Zoo cut $40,000 from its annual
marketing budget. With IBM analytics, management
can now instantly identify which beer is selling best,
on what day, and at what time to make sure inventory
meets demand. Previously, it took 7 to 14 days to get
this information, which required hiring part-time staff
to sift through register tapes. The Zoo's ability to make
better decisions about operations has led to dramatic
improvements in sales. Six months after deploying its
business intelligence solution, the Zoo achieved a 30.7
percent increase in food sales and a 5.9 percent
increase in retail sales compared to the same period a
year earlier. Other zoos across the country have taken
note of the Cincinnati Zo0's success, including the
Point Defiance Zoo in Tacoma, Washington. Point
Defiance's online ticket sales increased by 700 percent
in 2013, but management had no idea how or why the
increase had occurred.
Questions:
1- What management, organization, and technology
factors were behind the Cincinnati Zoo losing
opportunities to increase revenue?
2- How did the Cincinnati Zoo benefit from business
intelligence? How did it enhance operational
performance and decision making? What role was
played by predictive analytics?
Transcribed Image Text:more precisely to smaller groups of people, increasing its chances of identifying the people who were most likely to respond to its mailings. More targeted marketing helped the Zoo cut $40,000 from its annual marketing budget. With IBM analytics, management can now instantly identify which beer is selling best, on what day, and at what time to make sure inventory meets demand. Previously, it took 7 to 14 days to get this information, which required hiring part-time staff to sift through register tapes. The Zoo's ability to make better decisions about operations has led to dramatic improvements in sales. Six months after deploying its business intelligence solution, the Zoo achieved a 30.7 percent increase in food sales and a 5.9 percent increase in retail sales compared to the same period a year earlier. Other zoos across the country have taken note of the Cincinnati Zo0's success, including the Point Defiance Zoo in Tacoma, Washington. Point Defiance's online ticket sales increased by 700 percent in 2013, but management had no idea how or why the increase had occurred. Questions: 1- What management, organization, and technology factors were behind the Cincinnati Zoo losing opportunities to increase revenue? 2- How did the Cincinnati Zoo benefit from business intelligence? How did it enhance operational performance and decision making? What role was played by predictive analytics?
Founded in 1873, the Cincinnati Zoo & Botanical
Garden is one of the world's top-rated zoological
institutions, and the second oldest zoo in the United
States. It is also one of the nation's most popular
attractions, a Top 10 Zagat-rated Zoo, and a Parents
Magazine Top Zoo for Children. The Zoo's 71-acre
site is home to more than 500 animal and 3,000 plant
species.
performance, the Zoo's senior management team
embarked on a comprehensive review of its operations.
The review found that management had limited
knowledge and understanding of what was actually
happening in the Zoo on a day to-day basis, other than
how many people visited every day and the Zoo's total
revenue. Who is coming to the Zoo? How often do
they come? What do they do and what do they buy?
Management had no idea. Each of the Zoo's four
income streams-admissions, membership, retail, and
food servicehad different point-of-sale platforms,
and the food service business, which brings in $4
million a year, still relied on manual cash registers.
Management had to sift through paper receipts just to
understand daily sales totals. The Zoo needed to
change its information systems to focus more on
analytics and data management. On rainy days,
attendance falls off sharply, often leaving the Zoo
overstaffed and overstocked. If the weather is
To
increase
revenue
and
improve
unusually hot, sales of certain items such as ice cream
and bottled water are likely to rise, and the Zoo may
run out of these items. The Zoo now feeds weather
forecast data from the U.S. National Oceanic and
Atmospheric Administration (NOAA) Web site into its
business intelligence system. By comparing current
forecasts to historic attendance and sales data during
similar weather conditions, the Zoo is able to make
more accurate decisions about labor scheduling and
inventory planning. As visitors scan their membership
cards at the Zoo's entrance, exit, attractions,
restaurants, and stores, or use the Zoo's Loyalty
Rewards card, the Zoo's system captures these data
and analyzes them to determine usage and spending
patterns down to the individual customer level. This
information helps the Zoo segment visitors based on
their spending and visitation behaviors and use this
information to target marketing and promotions
specifically for each customer segment. The Zoo used
its customer information to devise a direct mail
marketing campaign in which this type of visitor
would be offered a discount for some of the Zoo's
restaurants and gift shops. Loyal customers are also
rewarded with targeted marketing and recognition
programs. Instead of sending a special offer to its
entire mailing list, the Zoo is able to tailor campaigns
more precisely to smaller groups of people, increasing
Transcribed Image Text:Founded in 1873, the Cincinnati Zoo & Botanical Garden is one of the world's top-rated zoological institutions, and the second oldest zoo in the United States. It is also one of the nation's most popular attractions, a Top 10 Zagat-rated Zoo, and a Parents Magazine Top Zoo for Children. The Zoo's 71-acre site is home to more than 500 animal and 3,000 plant species. performance, the Zoo's senior management team embarked on a comprehensive review of its operations. The review found that management had limited knowledge and understanding of what was actually happening in the Zoo on a day to-day basis, other than how many people visited every day and the Zoo's total revenue. Who is coming to the Zoo? How often do they come? What do they do and what do they buy? Management had no idea. Each of the Zoo's four income streams-admissions, membership, retail, and food servicehad different point-of-sale platforms, and the food service business, which brings in $4 million a year, still relied on manual cash registers. Management had to sift through paper receipts just to understand daily sales totals. The Zoo needed to change its information systems to focus more on analytics and data management. On rainy days, attendance falls off sharply, often leaving the Zoo overstaffed and overstocked. If the weather is To increase revenue and improve unusually hot, sales of certain items such as ice cream and bottled water are likely to rise, and the Zoo may run out of these items. The Zoo now feeds weather forecast data from the U.S. National Oceanic and Atmospheric Administration (NOAA) Web site into its business intelligence system. By comparing current forecasts to historic attendance and sales data during similar weather conditions, the Zoo is able to make more accurate decisions about labor scheduling and inventory planning. As visitors scan their membership cards at the Zoo's entrance, exit, attractions, restaurants, and stores, or use the Zoo's Loyalty Rewards card, the Zoo's system captures these data and analyzes them to determine usage and spending patterns down to the individual customer level. This information helps the Zoo segment visitors based on their spending and visitation behaviors and use this information to target marketing and promotions specifically for each customer segment. The Zoo used its customer information to devise a direct mail marketing campaign in which this type of visitor would be offered a discount for some of the Zoo's restaurants and gift shops. Loyal customers are also rewarded with targeted marketing and recognition programs. Instead of sending a special offer to its entire mailing list, the Zoo is able to tailor campaigns more precisely to smaller groups of people, increasing
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