Organizational Best Practice in the Aviation Industry
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This article discusses the impact of technology, environmental issues, and customer experience on the aviation industry, with a focus on Qantas airlines. It suggests strategies for Qantas to adapt to these changes and stay competitive.
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Running head:ORGANIZATIONAL BEST PRACTICE1 Organizational Best Practice Student’s name Professor’s name Course title Institution Date
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ORGANIZATIONAL BEST PRACTICE2 Organizational Best Practice Introduction The aviation industry has grown to become a very competitive. There are numerous airlines that have established themselves as premier organizations around the globe. Since the advent of commercial air traffic, this industry has had tremendous growth, characterized by trends across the industry. There are a number of factors that drive the development of this industry such as technology, economic growth, policies and regulations (Belobaba, Odoni & Barnhart, 2015; Albers, Baum, Auerbach, & Delfmann,, 2017). The future presents some probable developments that will continue to drive the industry. Qantas airlines will be largely impacted by certain aspects that are relevant to the airlines industry. As a major part of the industry, Qantas airlines will need to be keen on the developments to ensure the organization continues its upward growth. The main aspects that will affect the future state of the company are technology, environmental issues and customer experience (Wensveen, 2018). Environmental Context There is growing awareness on the issues of environment. The matter of climate change has been a mainstay in many conversations (Thompson, 2016). The airline industry affects several aspects of the environment. There is continued recognition of the impact on change and increasing carbon dioxide emissions. Other issues include noise and effects on the local environment (Chang, Park, Jeong, & Lee, 2014).
ORGANIZATIONAL BEST PRACTICE3 The future of the airlines industry will be eco-friendlier given the direction of the developments. The status of the aviation industry will involve its provision of services with least harm to the environment. The nature of the industry will be more oriented towards application of green initiatives (Nair & Paulose, 2014; Perez‐Valls, Cespedes‐Lorente & Moreno‐Garcia, 2016). Adaptation There are some steps that Qantas airlines can take to put the company in good position to succeed in the future. Some of the factors that are relevant to the environment are emissions, energy and pollution. Qantas airlines will need to utilize strategies that will alleviate the negative impact that is associated with these factors. Emissions can be reduced through use promoting sustainable air travel. Air travel causes significant emissions of greenhouse gases. It causes 3.5% of carbon dioxide globally. Sustainability can be increased by increasing efficiency of the air travel. This will be influenced by fuller airplanes and shorter turnarounds of flights (Baumeister & Onkila, 2017). Technology is an important factor that will be used in solving the issue. Qantas airlines will need to apply green technology in their processes. This will involve the use of better designs of airplane features such as engines (De Neufville, 2016). Increase of the efficiencies of services offered by Qantas airline will require better fuel management. The airline will be greener oriented through increasing fuel economy which will subsequently reduce emissions. The plane should be more fuel efficient. The effect of energy will also be reduced through use of biofuels (Kousoulidou & Lonza, 2016). The airline should
ORGANIZATIONAL BEST PRACTICE4 utilize fuels that are eco-friendly. Adaptation to these conditions will favour the success of the airline. Benchmark Measures and Milestones There are regulations that have been set to help solve the issues that affect aviation industry. These details provide the basis for which airlines should operate. The figures provided such as recommended level of emissions are compared against the current state of emissions to gauge the adaptation. Increase in fuel use efficiency is determined through comparison of the previous quantity of fuel used against the new quantity after implementation of changes. Adaptation to the changes will be observed through reduced emissions, wastes and energy use (Baumeister & Onkila, 2017; Belobaba, Odoni & Barnhart, 2015). Customer Experience The quality of services offered by Qantas airlines are based on the needs of customers that the airline serves. Customers are core to the success of a business. The future of the airline industry entails an increase in number of air travel passengers. It will be critical to provide great flight experience for customers to bolster the success of the airline (Laming & Mason, 2014). The future of the industry will involve better service provision for customers. More innovations will be introduced to enhance the experience that airlines provide. The services will be more customer-based (Stein & Ramaseshan, 2016; Chheda et al, 2017).
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ORGANIZATIONAL BEST PRACTICE5 Adaptation The success of Qantas airlines will depend on the quality of the services that it will offer its customers. The services need to have consistent improvements to ensure the flights are memorable. With more airlines paying attention to improving customer experience, Qantas will require putting in place initiatives to enhance their service provision. The future will have more digitalized systems and processes. Technology will play a central part in the developments that Qantas should pursue. The company will need to input the latest digital technology in their systems. Customers should get to experience digitized processes from ticketing, luggage sorting, boarding and ordering of in-flight services. The airline will need to have automated self-service technology for customers. Qantas should apply more detailed customer data analytics in flight management to ensure optimum quality of service for customer’s satisfaction. Qantas should additionally provide real-time insights to customers. This will provide more personalized services (Wang et al, 2017). Connected is very vital in airlines. Qantas will enhance the connectivity of its department through using systems and programs that will streamline the services in different departments. The connectivity should improve communication. Use of smart devices and applications will help provide connectivity to customers(Porter & Heppelmann, 2015). The company will need to use flight management software to determine the optimal comfortability or the preference of customers (Wang et al, 2017; Lin, 2015). Qantas airlines will also need to improve other inflight services. This includes entertainment and dining. The entertainment will need to feature quality gadgets and content.
ORGANIZATIONAL BEST PRACTICE6 Qantas will need to provide cost-effective services to customers to improve customer experience. This will mainly involve price of all services that the airline offers (Stein & Ramaseshan, 2016). Benchmark Measures and Milestones Customer experience can be determined through evaluation of customer satisfaction. Customer satisfaction is determined by the loyalty that can be observed. This is achieved through gauging customer affiliation to the airline through data analytics. Data can be obtained regarding the nature of customer reviews and repeat customers to measures their satisfaction with the airline (Chheda et al, 2017). Qantas airline will determine their adoption of digital technology through ensuring their technology is up to date. This will be done through comparing the technology of the company with others in the industry and their working. Customer satisfaction will also be determined through company revenues and profit margins. Positive performance in the financial outcomes of the company indicate the good service provision and customer satisfaction. Moreover, comparison of customer data over the years will give insight on customer satisfaction (Hussain, 2016). Artificial Intelligence The use of artificial intelligence in the industry has gained some traction in the recent times. Artificial intelligence is currently used is a few aspects of airline services in some airline industries. This is used as an algorithm in prediction of flight paths and improvement of operational efficiency. One AI product is the chatbots that provide basic details to people. AI will provide the application for smart logistics, facial recognition and assistance to customers’ inquires and commands(Dantas, Oliveira, & Repolho,, 2017).
ORGANIZATIONAL BEST PRACTICE7 Artificial intelligence will be more widely utilized in the coming times. AI will affect many functional areas of airlines. This will include marketing intelligence, revenue management, pricing and personalized interactions with customers(Parkes & Wellman, 2015). AI has displayed huge potential its application in the airline industry such as the use of autopilot(Macal & North, 2014). Adaptation AI is a technology that can reduce the impact of disruption in airline businesses. Adaptation to the use of AI will require that Qantas invests in program development and R $ D to boost the application of AI. The company will need to invest in AI infrastructure. Data is very crucial in AI. The airline will be required to have database and analytics that will support the development of algorithms for the operation of AI(Brougham & Haar, 2017; Porter & Heppelmann, 2015). Benchmark Measures and Milestones Artificial intelligence will be utilized in most of the airlines in future. The progress in the use of the technology can based on reference to the performance of other companies. Comparison with other AI systems available will help measure the level where the company will be at. Adequate use of AI will be based on technology that will be developed. Qantas airlines will need to integrate the latest technology in their systems for artificial intelligence. The milestone will be reached when many processes are able to efficiently use AI. This will provide a benchmark for their adaptation to change(Brougham & Haar, 2017; Porter & Heppelmann, 2015).
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ORGANIZATIONAL BEST PRACTICE8 Conclusion The environment, customer experience, and artificial intelligence are areas that have brought about transformations in the aviation industry. These factors portray a major part of the developments that will occur in future. The success of an airline will depend on its adaptation to the developments. Qantas airlines have been presented with several ways to sufficiently adapt to the changes and stay competitive. The adaptation to the developments can be gauged through use of the established benchmarks.
ORGANIZATIONAL BEST PRACTICE9 References Albers, S., Baum, H., Auerbach, S., & Delfmann, W. (2017).Strategic Management in the Aviation Industry. Routledge. Baumeister, S., & Onkila, T. (2017). An eco-label for the airline industry?.Journal of cleaner production,142, 1368-1376. Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015).The global airline industry. John Wiley & Sons. Brougham, D., & Haar, J. (2017). Smart Technology, Artificial Intelligence, Robotics, and Algorithms (STARA): Employees’ perceptions of our future workplace.Journal of Management & Organization, 1-19. Chang, Y. T., Park, H. S., Jeong, J. B., & Lee, J. W. (2014). Evaluating economic and environmental efficiency of global airlines: A SBM-DEA approach.Transportation Research Part D: Transport and Environment,27, 46-50. Chheda, S., Duncan, E., & Roggenhofer, S. (2017). Putting customer experience at the heart of next-generation operating models.Digital McKinsey", March. Dantas, T. M., Oliveira, F. L. C., & Repolho, H. M. V. (2017). Air transportation demand
ORGANIZATIONAL BEST PRACTICE10 forecast through Bagging Holt Winters methods.Journal of Air Transport Management,59, 116-123. De Neufville, R. (2016). Airport systems planning and design.Air Transport Management: An International Perspective, 61. Hoffman, C., & Offutt, B. (2015). Travel innovation and technology trends 2015. Hussain, R. (2016). The mediating role of customer satisfaction: evidence from the airline industry.Asia Pacific Journal of Marketing and Logistics,28(2), 234-255. Kousoulidou, M., & Lonza, L. (2016). Biofuels in aviation: Fuel demand and CO2 emissions evolution in Europe toward 2030.Transportation Research Part D: Transport and Environment,46, 166-181. Laming, C., & Mason, K. (2014). Customer experience—An analysis of the concept and its performance in airline brands.Research in Transportation Business & Management,10, 15-25. Lin, Y. H. (2015). Innovative brand experience's influence on brand equity and brand satisfaction.Journal of Business Research,68(11), 2254-2259. Macal, C., & North, M. (2014, December). Introductory tutorial: Agent-based modeling and simulation. InProceedings of the 2014 winter simulation conference(pp. 6-20). IEEE Press.
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ORGANIZATIONAL BEST PRACTICE11 Manhas, D., & Chauhan, V. (2017). Dimensional Analysis of Customer Experience in the Civil Aviation Sector. InHospitality Marketing and Consumer Behavior(pp. 75-101). Apple Academic Press Nair, S., & Paulose, H. (2014). Emergence of green business models: The case of algae biofuel for aviation.Energy Policy,65, 175-184. Parkes, D. C., & Wellman, M. P. (2015). Economic reasoning and artificial intelligence.Science,349(6245), 267-272. Perez‐Valls, M., Cespedes‐Lorente, J., & Moreno‐Garcia, J. (2016). Green practices and organizational design as sources of strategic flexibility and performance.Business Strategy and the Environment,25(8), 529-544. Porter, M. E., & Heppelmann, J. E. (2015). How smart, connected products are transforming companies.Harvard Business Review,93(10), 96-114. Stein, A., & Ramaseshan, B. (2016). Towards the identification of customer experience touch point elements.Journal of Retailing and Consumer Services,30, 8-19. Thompson, T. R. (2016). Climate change impacts upon the commercial air transport industry: an overview.Carbon & Climate Law Review, 105-112. Wang, Y., So, K. K. F., & Sparks, B. A. (2017). Technology readiness and customer satisfaction with travel technologies: a cross-country investigation.Journal of Travel Research,56(5), 563-577.
ORGANIZATIONAL BEST PRACTICE12 Wensveen, J. (2018).Air transportation: A management perspective. Routledge.