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Enterprise System Pitfalls: Summary
Today I’m wrapping up a series of posts on the broad topic of Enterprise System Pitfalls. In this series, my hope was to help shed light on the primary problems that cause us to miss budgets, fall short on capabilities, or completely fail when implementing an enterprise system. 

The Year in Review
 
As 2019 comes to a close, it’s time to count our blessings. One of mine has been the privilege (and fun!) of being able to reach out to so many interesting companies and get them to tell me what they’re doing that’s different, disruptive, and game-changing. The list of things I have to write about in future columns has only gotten longer in the nine months since I started writing this column.

Sustainable Innovation
 
Sustainability can yield multiple benefits to hotels. Saving energy and water yields direct cost savings. Revenue can be generated by guests who prefer to deal with businesses that minimize their environmental impact. And many would argue that conserving scarce resources is simply the right thing to do.

Meetings Innovation
 
The sale and delivery of groups and meetings is perhaps the most significant and under-automated functions for many hotels. Even though groups often account for 30% to 60% of revenue, most group bookings are still handled manually for most if not all of steps, as they move from a meeting planner’s research to a confirmed booking.

The biggest enemy to any system is complexity. In a system of inputs and outputs, such as an enterprise system, more complexity means more parts are used in interaction with inputs to create the outputs. Every part that must be built and maintained costs time and money



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What Hotels Need to Know About the California Consumer Privacy Act

by Jeff Venza
Hotel management companies are asking, how does the new privacy act in California compare to the new European Union privacy law? Here is a side-by-side comparison which reveals a few things that hotels should know. 

The delta between the EU Privacy Law (GDPR) to the California Consumer 
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Privacy Act (CCPA) is:

1. Legitimate interest: This is something that many companies are considering using to avoid documenting consent for GDPR. Companies don’t have this luxury with CCPA (the California law). 

Summary – If it’s a competition for most robust, then 1 point goes to CCPA for being more protective.

2. Personal Data/PII: In terms of defining personal data/PII, it appears as CCPA has a list quite similar to GDPR. 

Summary – It’s a tie. 

3. Fees (Part 1): GDPR fines for damages for lack of compliance. It appears CCPA will levy fines in the event of a breach only. 

Summary – One point goes to GDPR.

4. Fees (Part 2): GDPR effectively applies to any controllers and processors (the threshold is very low). Whereas, CCPA applies only to business that have high revenues ($25M) OR large numbers of processing ($50K) or has much (50%) of their revenue from personal information sales. 


Summary – One point goes to GDPR.


5. Fees (Part 3): Fines under GDPR are based on global revenues (4%) whereas CCPA levies fines based on each violation ($7,500 per violation). So, in the case of a large breach (like Equifax with 12 million records), the fines can quickly approach billions of dollars. 

Summary – One point awarded to CCPA.

6. Consent: This is a huge deal for GDPR. CCPA allows businesses to expect consumers to opt-out. This is a big difference than requiring a business to demonstrate that people have opted-in, under their own free will. 

Summary – One point goes to GDPR.


An at-a-glance summary score for the most comprehensive and most protective: 
2 points to CCPA, 3 points to GDPR, 1 tie
 
 
And what do both have in common:
 
People have the right to know (data subject requests).
Breach notifications are important.
Managing third-parties is important.
Data privacy legislation is here to stay.
 
Regardless of the nuances between both privacy laws, data privacy legislation is here to stay. Hotels will continue to be targeted by hackers because of the personal information collected every day. Knowing and understanding privacy legislation is key to operating hotels in today's market. 
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About The Author
Jeff Venza
President
Venza, Inc.


Jeff Venza is the president of the VENZA Group. To learn more about the EU Privacy Law (GDPR) or the California Consumer Privacy Act (CCPA), free industry webinars specific to the hospitality industry are available to you. Learn more here

 
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