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Running head: INFORMATION TECHNOLOGY IN BUSINESS Information Technology in Business: Airlines [Name of the Student] [Name of the University] [Author note]
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2INFORMATION TECHNOLOGY IN BUSINESS Table of Contents Introduction:....................................................................................................................................3 Information Technology Impacts: Emirates Airlines......................................................................4 Information Technology Significance:............................................................................................7 Requirements of IT implementation:...............................................................................................9 IT benefits:.....................................................................................................................................11 Conclusion:....................................................................................................................................11 References:....................................................................................................................................13
3INFORMATION TECHNOLOGY IN BUSINESS Introduction: IT or the Information technology is one of the important aspects of the airlines without which it would have become almost impossible for the airlines to operate. Implementation of the IT has been associated with bringing of lot of benefits for the airline such as customer retention, operations of higher quality and many more(Avgerou and Walsham 2017). The operation of the airlines is generally classified into five major sections which are associated with including the; market, sell, serve, operate, and flight and this has been illustrated in the figure provided below. In addition to the segments there also seen to be existing three major technological trends which is associated with including the transformation of the operations of an airline, usage of the big data in collaboration with the other latest technologies along with management of the CRM or the Customer Relationship Management and lastly includes the switching of the paper based works to digitalization. The IT is associated with having a significant effect upon the airlines industry which are seen to be related to the marketing and planning, sales and services and operations of the enterprise. The report aims at analyzing the various kind of IT impacts along with analyzing them so as to evaluate the benefits along with the limitations and the potentials which the developments of the future are going to have(emirates.com, 2019). The organization which has been chosen for analysis is associated with including the Emirates airlines which was released on 25thMarch, 1985 and along with this the government of the Country Dubai has been associated with making huge investments upon this airlines for the purpose of making it the biggest airlines of the Middle East.
4INFORMATION TECHNOLOGY IN BUSINESS Figure 1. Airline operation segment that require information technology to be emerged Source:(emirates.com, 2019) Information Technology Impacts: Emirates Airlines It is having a major role play in the airline industry as it is associated with the safety along with the capacity, capability and efficiency of the airlines. Besides this it has also been seen that the IT is having a Substantial Impact upon the financial and environmental performance of the airlines. Considering the IT, the process of the Emirates Airlines is segregated into three sections and this includes the Marketing and planning, Sales and services and the enterprise operations. Information technology usage in the marketing and sales makes the operators capable of making plans along with assisting them in evaluating the predicting the revenue, scheduling flights and many more. Additionally the IT usage is also responsible for boosting up of the operations so as to make them much more efficient and in addition to this the problems are also analyzed which are put forward because of the large data generation(Soomro, Shah and Ahmed 2016). Another critical element is associated with including the dynamic pricing strategy because of the low cost airlines than the competitors. The profitability also gets maximized along with the
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5INFORMATION TECHNOLOGY IN BUSINESS revenues and the reason behind this is that the dynamic pricing strategy is associated with responding as per the condition of the market so as to gain more competitiveness. Additionally the IT usage helps in analyzing the price as well mainly those which are helpful for the organization in meeting its objectives and goals. Some of the major including of the IT usage in the sales and services includes offline reservation along with the public relationships, service to customers and many more. Figure 2. Overview of IT implementation on business process in Emirate Airline Source:(emirates.com, 2019) Below is the figure illustrating the Emirate airlines existing online reservation channel.
6INFORMATION TECHNOLOGY IN BUSINESS Figure 3. Example of online reservation of Emirates airline Source:(emirates.com, 2019) Additionally, Emirate Airlines is also associated with the usage of the hybrid channel for sales along with other channels such as the mobile websites, online travel agents and many more. Figure 4: Hybrid sale channels for Emirate Airline Source: (emirates.com, 2019)
7INFORMATION TECHNOLOGY IN BUSINESS IT is also used for providing services to the customers such as lodging of online complaints or providing of feedbacks on the companies official website, this in turn is associated with helping in establishment of a good communication channel between the organization and the customers(Schement 2018). Besides all this another major role is played by the IT in the process of storing of information along with the being associated with facilitating the process of communication all across the airport or outside the airline and this in turn displays the usage of the Business Intelligence. The discussion which has be conducted above is helpful in understanding the fact that the IT is one of the core aspect or tool of the Airlines industry which not only helps in managing the operations but is also associated with helping in communicating and analyzing the different operations of the business(Taherdoost 2019). Besides all this it is also understandable that the IT is associated with greatly increasing the speed of the business operation. All this reasons are in turn associated with depicting the fact that Emirate Airlines surely needs the IT so as to remain in top of the Airlines industry and for managing and gaining of more customers. Information Technology Significance: The studies which have been conducted so as to depict the correlation between the profitability of the airlines and the IT usage is very limited. However the studies which has been conducted and the recommendations which those studies have provided helps in concluding to the fact that there is an essential need of making IT investments so as to make the managers of the airline industry become capable of providing special attention towards the different business process and become much more efficient(Sá, Oliveira and Nabais 2018).Additionally the formulation of a clear IT strategy is to be done which would not only be helping in managing the communications but would be also be responsible for analyzing those aspects which are to be
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8INFORMATION TECHNOLOGY IN BUSINESS perceived as the return of the IT investments and one such technology which is going to bring upon a lot of benefits for the airlines is the IoT or the Internet of Things. The above discussion helps in concluding to the fact that the IT is having a huge significance for the airline industry and this significance is brought by means of adaptation of proper strategies and by having a better understanding of the topology which are used in the airline industry. Besides the IT is associated with enabling the real-time financial monitoring along with the analysis, which in turn is associated with helping in recording of any kind of failures or any risks which have occurred or might occur(Sirkemaa 2017). By having real-time monitoring and analysis it becomes very easy to formulate the troubleshooting strategies which in turn would not only be helping in solving of problems related to time but would also be solving the problems related to the technology, management of the customers and operator so as to convert the processes from complex to simple one. One such simplification of the operation is the self-check in service which is associated with greatly reducing the work load imposed upon the ground staffs and by usage of the self-check in customers would also be much more satisfied. Figure 5: Example of self-check-in kiosk Source:(emirates.com, 2019)
9INFORMATION TECHNOLOGY IN BUSINESS Figure 6: Mobile technology for scan ticket Source:(emirates.com, 2019) Figure 7: On-flight free Wi-Fi for Emirate passenger Source:(emirates.com, 2019) Requirements of IT implementation: The airline industry in order to use the IT must firstly have a proper IT infrastructure along with the other systems and solutions which are needed(Lee, Thomas and Baskerville 2015). Along with a proper infrastructure there is also an essential need of hiring IT experts who would be associated with providing support to the entire infrastructure along with being responsible for managing the entire Information Technology Infrastructure. Besides this the IT
10INFORMATION TECHNOLOGY IN BUSINESS experts would also be responsible for the designing and implementation of the entire IT Infrastructure along with being responsible for making sure that the infrastructure which they are implementing is effective for the entire organization(Löfsten 2016). Once the implementation of the physical infrastructure gets completed then it becomes possible to integrate the airline management system with it so as to help the different operations become much more efficient. Figure 8. NDC reference architecture for airline Source: (emirates.com, 2019)
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11INFORMATION TECHNOLOGY IN BUSINESS The figure presented above is considered to be an example of the airlines management system which is integrated with the IT infrastructure(Faghih et al. 2018). Another major requirementofITImplementationisassociatedwithincludingthearrangingoftraining campaigns so as to help the employees in becoming much more efficient and conduct their work without making any kind of mistakes or errors. This in turn would be responsible in helping the organization gain more profits by providing of errorless services. IT benefits: IT usage is associated with bringing a lot of benefits for the airlines industry by means of automating the different process of the airlines industry which in turn increases the efficiency of the organization and this helps in the optimization and acceleration of the revenues. Additionally the IT is also associated with putting forward of a well-established communication channel along with enhanced security of the information and many more. One example is the usage of the smart applications which are responsible ofr better management of the operations along with being associated with helping in providing of efficient service to the customers(Laudon and Laudon 2016). The usage of the online platforms has also been associated with changing the way by which the airlines and the customers are associated with interacting with each other. Besides this the automation is also associated with reducing different operational costs such as the cost related to recruitment of more number of staffs so as to manage the different process. Conclusion: The above report is associated with helping in concluding to the fact that the usage of the Information technology has been acting one of the major tool responsible for bring a lot of changes to the airlines industry. The report has been associated with highlighting the importance
12INFORMATION TECHNOLOGY IN BUSINESS of Information technology in the Airlines industry along with putting forward of the numerous benefits of using the information technology in the airlines industry. The report is also associated with presenting the fact that the benefits related to automation of the different operations are responsible for making the organization become much more efficient and put forwards the need of providing training for the employees so as to help them in becoming capable of managing the new IT infrastructure that have been designed by the IT experts. So some of the major requirements of IT experts includes the having of a proper physical IT infrastructure, recruitment of IT experts and proving of trainings.
13INFORMATION TECHNOLOGY IN BUSINESS References: Avgerou, C. and Walsham, G. eds., 2017.Information technology in context: Studies from the perspective of developing countries: Studies from the perspective of developing countries. Routledge. emirates.com. (2019). Emirates flights – Book a flight, browse our flight offers and explore the Emirates Experience. Retrieved from https://www.emirates.com/in/english/ Faghih, N., Dastourian, B., Sajadi, S.M., Henten, A. and Foroudi, P., 2018. A framework for business model with strategic innovation in ICT firms: The importance of information.The Bottom Line,31(1), pp.16-41. Laudon, K.C. and Laudon, J.P., 2016.Management information system. Pearson Education India. Lee, A.S., Thomas, M. and Baskerville, R.L., 2015. Going back to basics in design science: from the information technology artifact to the information systems artifact.Information Systems Journal,25(1), pp.5-21. Löfsten, H., 2016. New technology-based firms and their survival: The importance of business networks, and entrepreneurial business behaviour and competition.Local Economy,31(3), pp.393-409. Sá, C., Oliveira, A. and Nabais, A., 2018. The importance of Information and Communication Technologies (ICT) to promote Information, self-care and empowerment among patients with chronic illnesses.The importance of Information and Communication Technologies (ICT) to
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14INFORMATION TECHNOLOGY IN BUSINESS promote Information, self-care and empowerment among patients with chronic illnesses, pp.7993-7998. Schement, J.R., 2018.Tendencies and tensions of the information age: Production and distribution of information in the United States. Routledge. Sirkemaa, S., 2017, December. Information Systems Infrastructure–Importance of Robustness. InInternational Conference on Information Technology Science(pp. 241-244). Springer, Cham. Soomro, Z.A., Shah, M.H. and Ahmed, J., 2016. Information security management needs more holistic approach: A literature review.International Journal of Information Management,36(2), pp.215-225. Taherdoost, H., 2019. Importance of Technology Acceptance Assessment for Successful Implementation and Development of New Technologies.Global Journal of Engineering Sciences,1(3).