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The analysis and leveraging of big data is a core component of many companies' marketing and advertising strategies. However, Microsoft is looking to use it to connect its business travel community, and make more intelligent procurement decisions.
Computing giant Microsoft began life when childhood friends and passionate programmers Bill Gates and Paul Allen started their first company in 1972. The company, named Traf-O-Data , sold just one product - a rudimentary traffic data analysis system. Microsoft was officially established in 1975 when the two friends developed their BASIC interpreter software, Altair BASIC . From there, Microsoft grew inexorably, developing its proprietary operating systems - MS-DOS followed by Windows - in the 1980s.
Today, Microsoft is one of the biggest companies - and the biggest computing company - in the world. Enjoying revenues of $85,320 million, it finds itself at #28 on the Fortune 500 . Microsoft has clearly been innovating in all aspects of its business for decades, and this philosophy also extends to its 75,000-person strong business traveler population.
One way in which Microsoft is innovating is in using big data to develop a deeper understanding of the travel habits and preferences of its employees, and using that knowledge to make better decisions regarding travel procurement.
Microsoft is using machine learning to develop 'traveler personas'. These personas are based on behavioral factors such as bookings, expenses, travel history, and more. The resultant profiles and the needs of those travelers can then be used by the Microsoft travel procurement team to set up travel solutions and define sourcing strategies.
"If we see that the data of very frequent travelers who have a dominant preference for Emirates [for example] is telling us certain things, we can take that information back to Emirates for more strategic sourcing and business decisions," said Microsoft Travel Manager for Compliance and Analytics, Marta Rodriguez . "Microsoft is looking at real patterns of a group of high-value travelers attached to actual dollars, and that gives the company a stronger negotiating position than anecdotal feedback."
The persona program means Microsoft has access to big data which can show the proportion which always book online, how frequently they make changes on the go, and more factors besides. This makes it easier for procurement departments to reconcile the wants and needs of Microsoft staff with travel policy and procedures.
Recent research by Business Travel News found that business travelers had many bugbears regarding elements of their corporate trips. Delays, poor WiFi, sub-par accommodation, and more, can all be a source of stress for regular travelers. Microsoft wants to address these issues by creating a platform on which its employees can share their travel experiences. The resultant big data can then be used to further direct travel policy and procurement in the future.
"That's the old analogue model, and it wasn't very efficient," said Microsoft Travel Technology Manager, Steve Clagg , who took over the project from his predecessor. "There was a clear need from our travelers to better understand where they were going and what would be there waiting for them."
(Image source: microsoft.com )
The mobile application, named Tripism , allows business travelers to share their experiences with their colleagues. The difference between this and services such as TripAdvisor is that Tripism has a specific focus on business travel and the particular pain points associated with it. For example, a leisure traveler may not be too concerned with poor WiFi - but for a business traveler it could be disastrous.
"The problem with existing tools, such as TripAdvisor, today is that it's too much information, too broad, unfocused and mostly about leisure experiences that don't incorporate business operations or user tasks," said Clagg.
Whether it's through machine-learned traveler personas or direct community feedback, it's clear Microsoft takes travel procurement seriously. With so many of its employees travelling on the company's behalf, making big data-driven, intelligent decisions holds the key to successful travel procurement.
The final word goes to Microsoft Travel Manager for Compliance and Analytics, Marta Rodriguez .
"A lot of people think they have a data problem, but I'm not sure that's true. We all have lots of data. It's combining map and matching and enhancing that data in a way that makes it easy for people to consume, understand and go do something about. We need to focus more attention on that to effectively manage the travel category."
You can hear Microsoft's Global Director for VenueSource and Payment, Eric Bailey , speak at ProcureCon Travel 2018 in May, at the Green Valley Ranch, Las Vegas, NV.
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