Op-Ed: TMCs Embrace Next-Generation Tech To Meld Horizontal And Vertical Value

As organizations of all sizes become increasingly sophisticated in their approach to managing travel, cutting-edge travel management companies are embracing technology as a key driver to provide complete T&E management.

Thanks to open- and service-oriented Web 2.0 software architecture, travel management companies have the opportunity to incorporate technology to drive the convergence of both the horizontal and vertical value chains to provide end-to-end solutions, managed seamlessly through the corporate desktop for the first time.

First, the horizontal value chain. Web 2.0 technology is built on service-oriented architecture that offers enhanced flexibility to add new services without the need to rewrite the entire application. This approach is becoming progressively more useful in opening new opportunities through "mashups" of content from two or more sources for an integrated experience.

For example, corporations and TMCs have focused for years on managing primarily air, hotel and car-related business travel spend, while survey results have demonstrated this only captures roughly half of T&E spend.

Web 2.0 and the impending Web 3.0 promise to create an even more pervasive intelligence for a wide range of people to produce business content and application or solutions. This will allow corporations to benefit from the collective intelligence of employees or customers. However, while the technology will integrate user-generated content and make user-centric, TMCs, ultimately, must adapt to be able to harness that business intelligence.

Our industry will begin adopting social software solutions in business travel and T&E expense management as a means of locating and linking with an extended network of experts to solve problems or identify customer needs. Social software technology platforms will accelerate the pace of new product development by incorporating both strategic partners and customers into the R&D process.

Now, the vertical value chain. Travel management companies will also benefit from technology to master the fully integrated vertical value chain from policy management, booking tool integration and fulfillment platforms to data consolidation and reporting, expense management, payment solutions and consulting and benchmarking.

Web 2.0 gives us the springboard to offer the ultimate corporate services desktop solution, empowering travel managers to manage spend beyond air, hotel and car.

The convergence of the horizontal and vertical value chains is no longer imminent; it is underway. The challenge for us all is to create the vision and push the boundaries for achievement by embracing the global possibilities brought about through technology.