Developing and Implementing Information System

The report proposes the implementation of an information system into Jetstar Airways operations. It identifies the problem that affects the performance of the company in the market. The predicted time to implement the information system into the business is 6 months considering the requirements of the airways.

Running head: INFORMATION SYSTEM
Developing and Implementing
Information System

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Letter to Sponsor
Gareth Evans
CEO
Jetstar Airlines
Melbourne, Australia
Jetstar Airways is the low fare airline of Australia with headquarters in Melbourne. It is the
owned subsidiary of Qantas Airlines, operates international and domestic flights from its
home hub that is Melbourne Airport. The mission of Jetstar Airways is to provide low fares
to allow people to travel to the places they want to more frequently. After its launch in the
Australian market in 2004, the company has successfully carried 250 million passengers. The
airline industry has adopted numerous types of information system for improving the
operations due to which the competitors are moving ahead form the company. This indicates
that now Jetstar must adopt a successful information system to avoid all types of delays and
increasing market share. A new information system will support business in managing all the
information related to its customers, flights, the timing of the flights, etc. which will
eventually manage the schedule of the business.
It is my pleasure to present this reported proposal for Jetstar Airways regarding the
implementation of an information system into its operations. The information system will be
beneficial for the airways in terms of making information and organizing its activities
properly. Besides this, the system will support the company in offering best customer
experience, data analysis, and offer comprehensive solutions. The predicted time to
implement the information system into the business is 6 months considering the requirements

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of the airways. The implementation of the system will be divided into seven key steps of the
system development life cycle that are planning, defining, designing, building, testing,
deployment, and maintenance.
I will look forward to your response regarding the implementation of the information system.
Remaining details have been provided in the below attached report.
Regards,

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Executive Summary
The intent of this paper is to present a system development life cycle of an information
system that could assist in improving the performance of the business and resolve the
problems it is dealing with. The paper is comprised of different aspects such as analysis of
the internal and external environment of Jetstar Airways and accessing the industry
performance to identify the present opportunities for the business. Besides this, the report has
identified the problem that affects the performance of the company in the market. From the
analysis, it has been identified that Jetstar lacks an effective information system due to which
its flights are getting delay. The report has suggested airline to adopt Operating Information
System to avoid these issues. Moreover, the paper has provided project management, change
management, and risk management related to the implemented system.

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Table of Contents
Letter to Sponsor........................................................................................................................1
Executive Summary...................................................................................................................3
Introduction................................................................................................................................5
Overview of Jetstar Airways..................................................................................................5
Marketing Analysis of Jetstar Airways..................................................................................6
External Analysis of Jetstar Airways.....................................................................................6
Porter 5 Force Analysis......................................................................................................6
Internal Analysis....................................................................................................................8
SWOT Analysis.................................................................................................................8
Problem and Opportunities related to IS/IT...........................................................................9
The justification for the Operations Information System......................................................9
Cost/Benefit Analysis of Purchasing Operations Information System............................10
Cost/Benefit Analysis for Jetstar Airways.......................................................................11
System Analysis and System Design...................................................................................11
System Development Life Cycle (SDLC)............................................................................12
Planning............................................................................................................................13
Defining............................................................................................................................13
Designing.........................................................................................................................13
Building............................................................................................................................13
Testing..............................................................................................................................14
Deployment......................................................................................................................14
Maintenance.....................................................................................................................14
Post Implementation Activities adopted by Jetstar Airways................................................14
Training to employees......................................................................................................15
Hiring experts...................................................................................................................15
Project Management, Change Management, and Risk Management associated with the
operating information system implementation.....................................................................15
Project Management.........................................................................................................15
Change Management........................................................................................................16
Risk Management.............................................................................................................16
Conclusion................................................................................................................................17

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References................................................................................................................................19

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Introduction
Internet and Information technology together are converting into an essential resource for the
suitability and enjoyment of people. The enhanced Web has generated a refined base of the
user with new online tools and functionality like wiki’s, online social networking, and blogs.
While earlier, it was stagnant, but today Web has become more collaborative and interactive.
It offers the opportunity to the customers to write a comment and provide their feedback
(Laudon and Laudon, 2016). As an outcome of Web, the internet is altering from just a place
to receive information or provide information, to a place to get a set of communicating
applications, ubiquitous commerce, collaboration, and online sharing. People and
administrations are progressively using information technology to collect, practice, use, and
store information. In terms of organization, technical material, and equipment, the
information system is inspected in mechanical and practical aspects (Peslak, Ceccucci and
Janicki, 2011). The key elements of the information system are the channels used for
transferring information, the sender of the information, and the receiver of the information at
the end. This paper is focused on presenting the advantage of implementing the information
system into the business in the long term (Falkenberg, Hesse and Olivé, 2016). The paper will
highlight the detailed implementation procedure of the information system into the Jetstar
Airways to assist in avoiding challenges and problem faced by the business that is affecting
its brand image in the industry. Moreover, the analysis of the risk management will be
presented for the implementation of the information system.
Overview of Jetstar Airways
Jetstar Airways is the low fare airline of Australia with headquarters in Melbourne. It is the
owned subsidiary of Qantas Airlines, operates international and domestic flights from its
home hub that is Melbourne Airport. Qantas introduced the Jetstar Airways in the market in

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the response to the competition of low price airlines such as Virgin Blue. Jetstar is a part of
the two-brand strategy of Qantas of taking Qantas Airways in the market of premium full-
service and Jetstar in the low fare airline market. Jetstar covers around 8.5% of the travelers
coming in and going out of Australia (Jetstar, 2019b). With the Jetstar Group, Qantas also has
stakes in the airlines like Jetstar Pacific Airlines, Jetstar Japan, and Jetstar Asia Airways. The
mission of Jetstar is to provide low fare services to the customers such that people can fly to
more places on a frequent basis. Along with this, the vision of Jetstar is to make the world
accessible (Jetstar, 2019a).
Marketing Analysis of Jetstar Airways
Domestic airlines are dealing with turbulent trading circumstances from last few years.
Increasing price competition between Virgin Australia and Qantas, the key players of the
industry, has significantly influenced the performance of the entire industry. Virgin and
Qantas has contributed in the decreasing fares of the airlines in the last two years, with
Qantas trying to make an aggressive push whereas Virgin to trying to expand its share in the
market. In 2013, Virgin attained around 60.0% of Tiger Airways and the residual of around
40.0% in 2014, coagulating its place in the market of low-fare. With the procurement, Virgin
intended to compete with low fare subsidiary of Qantas that is Jetstar. Decreasing prices of
the airlines have resulted in affecting the profitability of both the airline's companies to
decline (IBIS World, 2018).
External Analysis of Jetstar Airways
Porter 5 Force Analysis
The threat of new entrants
The threat of new players in the industry of airline is low to medium considering the high
cost of switching and fixed costs. Besides this, the key players such as Qantas and Virgin,

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which raises numerous challenges for the new player to enter, cover the maximum share of
the market. The entry barriers in the industry are also high which restrict the new player to
take entry in the market.
The threat of substitute products
The substitute products threat is low in the industry of airline. The number of business travel
has been reduced due to the introduction of the teleconference. Besides this, the customers to
cover a long distance in short time duration do not proffer other travel modes such as rail and
bus (Fern Fort University, 2019).
Competition among existing companies
The competition among existing companies is high because companies are regularly
changing their fares in order to cover maximum market share and compete strongly in the
industry.
Customer’s bargaining power
The customers bargaining power is medium to high because of the availability of different
options to travel. The switching cost for the customers is also low they can travel through
different airline in search of luxury, quality services, or low fares (Fern Fort University,
2019).
Supplier’s bargaining power
The suppliers bargaining power in the airline industry is medium to high because there are
very limited numbers of suppliers present, which offer services to different airlines. Two of
the suppliers of the airline industry are Boeing and Airbus. Besides this, the supplier
switching cost is high for the airlines (Fern Fort University, 2019).

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Internal Analysis
SWOT Analysis
The strength of Jetstar Airways
 The Jetstar Airways has wide regional and domestic existence, as it is included in the
leading three service providers
 The company has initiated different price guarantee programs and customer guarantee
programs to gain market attention (Bhasin, 2018)
 The company has a loyal customer base because of its low fare and brand reputation
 Jetstar Airways claims to offer the world's safest travel to the customers (MBA Skool,
2018)
Weaknesses of Jetstar Airways
 Jetstar Airways has high maintenance overheads because of low utilization of
employees as well as resources.
 An increasing number of strikes by the unions due to low wages(MBA Skool, 2018)
Opportunities for Jetstar Airways
Jetstar Airways possess a numerous number of opportunities in the market such as the
expansion of routes in the regional area, increase in the business traveler's share. Besides this,
there is an expected a boom in the trans-Tasman routes (MBA Skool, 2018)
Threats for Jetstar Airways
 Jetstar Airways deals with intense competition from different low cost airways
(Bhasin, 2018)
 Changing regulatory requirements in Australia resulting in losses for the Qantas
Airlines

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 The company is also facing threats due to the increasing cost of fuel (MBA Skool,
2018)
Problem and Opportunities related to IS/IT
Jetstar Airways is presently dealing with a number of challenges in the market such as delays
of one to three hours at the airport of Australia during the travel period of pre-Christmas. The
company due to computer failure has caused 70,000 passengers, to face problems (The
Guardian, 2019). Jetstar Airways apologized from its customers due to a computer failure
that has led to major disturbance for thousands of travelers in the days before Christmas. An
overnight data storage issue, which was solved at 7:30 am, caused the problem but employees
still have to provide manual instructions regarding delays.
The use of an information system supports a business to overcome challenges such as lack of
information, managing schedules, delays, etc. Jetstar Airways can make use of operations
information system in order to get the right information at the right place and time. This
system will support the company in getting up to date and complete information for transport
businesses, passengers, infrastructure operators, etc. This system will be very useful for the
business as the company will get the information regarding the issues in the computer system
and can provide information to the customers regarding delays. This will eliminate the
chances of losing customer satisfaction.
The justification for the Operations Information System
Information systems provide appropriate information to the business that results in increasing
profits of the business. Executives should have pertinent information that upsurges their
information of internal procedures and external environment of the business. This
information decreases the level of uncertainty and takes practical and rational managerial
decisions (Markgraf, 2018). Deprived of pertinent information many of the decisions

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considered by the management will be trial and errors, which in returns reduce the
competence and productivity and upsurge the uncertainty in the business. Operations
information system is long-lived information systems that regularly assist application
operations (Management Study Guide, 2019). These applications are selected which outcome
in transaction antiquities to be dispersed to the event derivation engine. Event derivation
Engine is a worldwide information base encompassed of a set of servants that adopt
transaction antiquities from OLTP systems and, other external and internal information
sources. The EDE relates and combines this data and upholds an operationally fine subset, or
operational window, from which it originates events for publication (Oleson, Eisenhaur and
Pu, 2019). Furthermore, the preserved consolidated information aids as a base for humble
request and answers, as well as, first states for contributing clients.
The operations information system will support Jetstar Airlines by getting proper details such
that delays can be avoided at the highest level (Scheidt & Bachmann, 2019). Moreover, the
system is an updated version of the information system that reduces the cost of business
operations and reduces the time taken in decision-making procedures. With the
implementation of the operations information system, a company can successfully able to
eliminate the delay chances by 90%, which will definitely help in promoting the brand image
of the business.
Cost/Benefit Analysis of Purchasing Operations Information System
Cost
Purchasing Information system $ 10000
Maintenance of the system $ 2000
After implementation updates $ 2500
Benefits

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Increasing profit $ 11000
Reducing Cost $ 5000
Cost/Benefit Analysis for Jetstar Airways
Tangible Cost
Reducing cost
Increasing profit of the business
Purchase of the information system
Intangible Cost
Training of the employees
Tangible Benefits
Reducing the number of delays
Intangible Benefits
Increasing customer satisfaction
System Analysis and System Design
Systems analysis is the procedure of perceiving systems for troubleshooting or growth drives.
It is used in the information technology, where systems that are computer based need
determined analysis as per their design and makeup (Patel, 2014). In the information
technology, system analysis can comprise looking at customer execution of a software
package or product; observing in details at source code in order to determine the
methodologies utilized in creating software; or making feasibility studies and other kind of
research to provision the use and designing of a software product, among other things. The

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information system department of Jetstar Airlines will be responsible for system analysis in
which they will perform a proper analysis of the required system. Besides this, they get
involved in analyzing different components of the required information system such that they
can properly analyze the designing and makeup of the system.
System design is the procedure of determining system elements such as architecture,
interfaces, components, and modules, and data for a system depending on precise
requirements (Wang and Wang, 2012). It is the procedure of determining, creating, and
scheming systems, which pleases the precise requirements of an organization or business.
Under this process, the information technology department of the company will analyze
define, create and design the operating information system for the company. The responsible
department put its maximum efforts in creating the system such that it meets the requirement
of the business.
System Development Life Cycle (SDLC)
SDLC or System development lifecycle is a procedure followed in the development and
implementation of the information system into the operations of a business (Tech terms,
2019). Numerous models of system development life cycle have been introduced in the
market and implemented, comprising, incremental, waterfall, build and fix, rapid prototyping,
synchronize and stabilize, spiral, fountain, and rapid application development (RAD). An
operative life cycle of system development must provide an outcome in a form of high
quality system that encounters the expectations of the consumer, reaches to the conclusion in
precise time and cost, and operates efficiently and competently in the existing and strategic
infrastructure of Information Technology. The system development life cycle that will be
followed by Jetstar Airways in the development of operative information system is comprised
of seven key steps that are planning, defining, designing, building, testing, deployment, and
maintenance.

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Planning – The system development life cycle’s first step is planning which is comprised of
steps such as defining the requirement of a precise program, the user of the system, the cost
of the system, and the time it will take to develop (Roebuck, 2011). The IT team of Jetstar
Airways will identify the requirement of the information system into the operations of the
company. Considering the issues of airlines delay due to computer failure is one of the cause
that reflects Jetstar require an effective information system like Operations Information
System. The team will also perform the feasibility analysis of the system and time it will take
to implement into the operations.
Defining – Defining is the stage where the development plan is comprised of specific criteria.
The development plan will narrate the detailed requirement of the system. The IT team take
different types of decisions at this stage such as the language of the program. The responsible
department of Jetstar Airways will be accountable to prepare the development plan specifying
the requirements of the information system.
Designing – Designing step of system development life cycle will be comprised of
generating a user interface and defining the way information system will operate (Langer,
2013). The Information technology team of Jetstar will work towards designing the required
information system for the business, which will be comprised, of the user interface and the
procedure of operating the system.
Building – The system development life cycle step of building typically talks about the bulk
of software required in the development procedure. It is comprised of preparing the source
code, making graphics, and assembling the assets into in the program. Small projects online
involve a single programmer, whereas hug projects require multiple teams that work together
to attain the objective of developing the information system. This is the stage where the

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information technology team of the airways will create the information system considering all
the requirements and analysis for the system into the business.
Testing – Testing is one of the essential stages of the system development life cycle as the
developers first test the developed system before the final installation procedure. This step
helps the developer to identify the bottlenecks into the project and quickly identify the
solutions for them. The testing of the programs or system can be done internally within the
organization or can be done outside the boundary of the organization. The system
development team of Jetstar Airways will perform the final testing of the developed system
such that in the future business do not face any type of issues that could result in a costly
investment for the airlines.
Deployment – Deployment stage is another phase of the system development life cycle,
which is performed after the testing step. At this stage, the information system will be
handover to the owner such as organization, business, or individual to bring the system into
existence. The developers can provide the system through different mediums such as CD or
DVD. The IT team will provide the developed system to the Jetstar Airways team such that
they can take advantage of it.
Maintenance – Maintenance is the final stage of the system development life cycle, which is
considered an essential part of the entire life cycle. After the implementation of the system,
there can be chances of bugs into the system, which can affect the productivity of the
business in the future. Therefore, it is very important to regularly check the system and
perform regular updates with the changing trends and demand of the customers.
Post Implementation Activities adopted by Jetstar Airways
Post implementation activities are those activities performed by the business after installing
the system into the operations of the business. Post implementation activities are very

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essential to be adopted to ensure the success of the information system into the business
(Blokdyk, 2018). The activities of post implementation are the training of the employees
regarding operating the newly developed information system, hiring experienced IT staff to
handle the system, changing the mission and vision statement of the business to align the
system with them.
Jetstar Airways will adopt different types of activities of post-implementation such as:
Training to employees – The Company will provide proper training to its employees
regarding operating the system such that damage and failure of the system can be avoided at
the highest level. Besides this, training is also important to encourage people to use the new
system and avoid employee resistance to use the new system.
Hiring experts – The Jetstar Airways will hire some of the information system experts such
that they can effectively operate the system and can provide positive results. The information
system experts can support the company in taking correct decisions related to the information
gathered through the operating information system.
Project Management, Change Management, and Risk Management associated with the
operating information system implementation
Project Management
Project management is the exercise adopted by the business of initiating, organizing,
implementing, regulating the work of a team to attain precise objectives and encounter
precise success standards at the stated time. A project is a provisional endeavor intended to
create an exclusive product, service, or result with a distinct beginning and end commenced
fulfilling unique objectives, classically to carry beneficial alterations in the business and add
value (Kerzner and Kerzner, 2017). The project manager of Jetstar Airways will be
responsible for managing the procedure of implementing the information system into the

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business. The manager will perform different roles in order to make the implementation of
the information system a success (Project Management Institute, 2019). Proper planning will
be done such a financial analysis of the business in order to analyze whether the company can
afford to develop this system or not. Besides this, he will be liable to interact with different
department to communicate the implemented change in the business.
Change Management
Change management is a type of discipline that directs the way to prepare, equip, and support
individuals positively accept change to drive business success and outcomes. The very
common driver of change processes reviews, consumer habit changes, technological
evolution, crisis, increasing pressure of new entrants, mergers organizational restructuring,
and acquisition. It comprises techniques that redefine the utilization of resources, business
procedure, budget provisions, or other different operation modes that majorly change an
organization (Pugh, 2016). With the implementation of operating information system into the
Jetstar Airways, there will be numerous changes into the business such as the procedure of
doing activities, business procedure, converting manual operations into automated operations,
responsibilities, and jobs of the employees, etc. In order to get best out of the newly
implemented information system, it is very important for the business to manage all the
changes that are taking place into the business otherwise it can result in a huge financial loss
for the company. The managerial department of the company will supervise the changes into
the business and will try to manage the operations. The management must properly
communicate properly before implementing the system into the business in order to avoid
strikes and resistance of the employees.
Risk Management
Risk management is the identification, assessment, and prioritizing of risks followed by
synchronized and cost-effective application of resources to diminish, display, and regulates

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the probability or influence of unsuccessful events. Risks can arise from different sources
comprising uncertainty in the market such as financial market, threats from plan failures,
authorized liabilities, accidents, disasters, credit risk, natural causes, and cautious attack from
an opponent, or proceedings of uncertain or random root-cause (Bromiley, McShane and
Rustambekov, 2015). The implementation of the operating information system into Jetstar
operations will carry possibilities of different risk such as damage of information system,
failure of the information system, employee resistance, employees incapability to manage the
operations, and lack of skilled and qualified personnel. It is very important for the
organization to manage these risk otherwise it can result in huge losses for the business. For
example, employee resistance to adopting newly implemented information system can result
in strikes. It is very important for the business properly communicates with the employees by
explaining the benefits and advantages of using the new system. Besides this, in order to
avoid the failure and damage of the system, it is very important for the business to provide
proper training to the employees to teach them about the operation of the system.
Conclusion
The above report proposal has performed an analysis of the effectiveness of implementing
information system into the business. The company that has been selected for the analysis is
Jetstar, which presently experienced a computer failure due to which numerous customers got
late to reach their destination. In order to solve these issues, the above report has provided a
suggestion regarding implementing operating information system into the operations of
Jetstar Airways. The report has covered the detailed system development life cycle to reflect
the procedure that will be followed by the company to develop a new information system for
the business. From the analysis, it has been analyzed that operating information system will
assist the management of the airline in reducing the chances of delays. However, there is

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some risk related to the implementation such as employee resistance, damage to the system
and the failure of the operating information system.

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