Management Information System for Qantas Airlines

This paper discusses the implementation of Management Information System (MIS) in Qantas Airlines to reduce costs and manage important information. It includes an overview of Qantas Airlines, external and internal environment analysis, justification for selecting a process control system, cost/benefit analysis, system development life cycle, and more.

Running head: MANAGEMENT INFORMATION SYSTEM
Qantas Airlines
Management Information System
1/19/2019

MANAGEMENT INFORMATION SYSTEM 1
Letter to Sponsor
Ms. Olivia Wirth
Chief Executive Officer
Qantas Airlines
[phone] Qantas, 10 Bourke road,
Mascot NSW 2020
Qantas is the Australian flag carrier airways and is considered the largest airline in terms of
international flights, international destinations, and size of the fleet. The aim of the company
is to offer premium services to the customers at low prices. It is known that Management
Information System has provided numerous advantages to the airline industry. Considering
the advance features of MIS, Wesfarmers must install MIS into its operations in order to get
assistance in maintain information of the customers and employees. Besides this, to reduce
the cost of the products offered to the customers.
It is my pleasure that I got opportunity to present the report proposal for Wesfarmers related
to implementing Management information system. As per the analysis, the MIS will play key
part into your organization like maintaining information and databases, and reducing service
cost. The estimated time that will be required to implement the MIS system in your company
is 6 months, which will be divided into seven steps of system development life cycle. The
detailed analysis has been provided in the report.
I look forward for your response and discussing the attached report proposal.
Regards,

MANAGEMENT INFORMATION SYSTEM 2
Executive Summary
The aim of this paper is to increase the understanding related to the managing information
systems into the business operations in order to enhance the performance of the business and
to attain long-term success. The paper will be comprised of System development life cycle to
explain the steps involved in the implementation of the selected information system by the
business. The paper is based on Qantas Airlines, which require a management information
system to reduce the cost of its operations and manage the important information of the
business. From the analysis, it has been analyzed that company can implement a process
control system in its operations considering its requirement for the information system. The
implementation of the system will be cost-effective and will improve the productivity of the
company. However, it has been identified that the implementation involves some of the risks
such as damage to the system, failure of the system, and resistance of the employees.

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Table of Contents
Letter to Sponsor........................................................................................................................1
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Overview of Qantas Airlines..................................................................................................5
Vision and Mission Statement of Qantas Airline...............................................................5
External and Internal Environment Analysis.........................................................................5
Porter 5 Force Framework.................................................................................................5
PESTLE Analysis...............................................................................................................6
SWOT Analysis.................................................................................................................8
Problems and Opportunities in the IS/IT of Qantas Airlines...............................................10
Justification for Selecting Process Control System.............................................................11
Cost/Benefit Analysis of Qantas Airlines........................................................................12
Cost/Benefit analysis for software purchase....................................................................13
System Analysis and System Design...................................................................................13
System Development Life Cycle of Process Control System (Management Information
System).................................................................................................................................14
Planning............................................................................................................................14
System Analysis and Requirement...................................................................................15
System Design..................................................................................................................15
Development....................................................................................................................15
Integration and Testing....................................................................................................15
Implementation................................................................................................................16
Operations and Maintenance............................................................................................16
Post Implementation Activities............................................................................................16
Project Management, Risk Management, and Change management...................................16
Project management.........................................................................................................16
Change Management........................................................................................................17
Risk Management.............................................................................................................18
Conclusion................................................................................................................................18
References................................................................................................................................20

MANAGEMENT INFORMATION SYSTEM 4

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Introduction
Until the 1990s, before the extensive acceptance of PCs (personal computers) and the
Internet, business was making use of information systems to handle record-keeping and data
processing activities related to the business transactions like such as payroll billing,
maintaining ledger, management of inventory, etc. The emphasis was majorly on managing
files and data associated with daily operations. Internal and external communications depend
on faxes, paper, telephone, and other analog media. Information systems and information
technology have grown since last 40 years, comprising the shift from the 1970s mainframe
computer to PCs becoming an essential portion of tracking and organizational procedure in
the 1980s. The entrance of the mainstream internet in the 1990s extended business
competencies and the use of information systems to a worldwide interaction system (Maier,
2013).
Currently, the key emphasis of business is to remain competitive globally by leveraging the
competencies of information and communication technologies (ICT). Businesses can utilize
ICT to offer services with best quality at a reasonable cost along with top services to the
customer. Besides this, it assists businesses to take entry in the new or international market
through e-commerce. Integration, collaboration, and globalization have arrived as new
drivers in the competitive market (Al-Mamary, Shamsuddin and Aziati, 2014). In order to
sustain the competitive position, business is investing a huge amount in advanced information
systems and information technology such as ERP i.e. Enterprise Resource Planning, which
incorporate diverse functional zones of the company and offer reliable real-time information
for quick decision-making. The intent of this paper is to discuss an information system in
order to highlight the importance of its implementation in the selected organization that is

MANAGEMENT INFORMATION SYSTEM 6
Qantas Airlines. The paper will discuss the steps involved in the system development life
cycle.
Overview of Qantas Airlines
Qantas is the Australian flag carrier airways and is considered the largest airline in terms of
international flights, international destinations, and size of the fleet. It is the world's third
oldest airway, after KLM and Avianca. The main hub of Qantas is Sydney Airport. In 2014,
the company has around 65% share of the domestic market of Australia. Hudson Fysh
established the company in 1920 in Winton, Queensland (Qantas, 2019).
Airlines from diverse nations operate in the International Airlines Industry. Whereas,
numerous airlines, like Singapore Airlines and Emirates, possess a significant market
presence in Australia, besides this, some of the foreign airlines possess locally incorporated
subsidiaries. As an outcome, any airways that operate passengers or freight to or from
Australia are incorporated in the industry. The passengers traveling to or from Australia are
increased in number in last five years, majorly because of increasing tourism level from
neighboring nations in the US and the Asia Pacific. As an outcome, the industry of
international airline has developed in last five years (IBIS World, 2018).
Vision and Mission Statement of Qantas Airline
The long-term vision and mission of Qantas Airlines are to be established as the best,
premium, and low fares airlines around the world (Qantas Group, 2019).
External and Internal Environment Analysis
Porter 5 Force Framework
Threat of New Entrant
The threat of new entrant in the airline industry is low because mode of air traveling is faster
than other traveling modes in terms of longer distances (Fern Fort University, 2019).

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Bargaining Power of Suppliers
The bargaining power of the suppliers is low in the industry of airline due to the presence of
number of suppliers providing same type of services.
Bargaining Power of Customers
The customers bargaining power in the industry is high because there are number of options
available for them to select from like low fair air traveling, premium class traveling, etc.
(Aviation Industry, 2018)
Competition among existing players
Competition is the crucial part in the airline industry of Australia, as the present condition
infers that Qantas Airlines is competing directly with the Virgin airline in the local market,
and the rivalry is so intense that these businesses are dealing with huge losses in their process
(Fern Fort University, 2019).
Threat of Substitute Products
The threat of substitute products in the airline industry is low because air-traveling mode is
the quicker way of receiving traveling services for longer distances, which is not possible
through water or road transport (Fern Fort University, 2019).
PESTLE Analysis
Pestle analysis is a framework comprised of macro environmental factors utilized in the
environmental scanning of the company’s strategic management (Sullivan and Boches,
2016).
Political Factors
The government of Australia has a key interest in Qantas airline as its covers around 65% of
the market share of the airline industry. The company received financial support from the
government and has a major role in the management of the airline (Adamkasi, 2016). Due to

MANAGEMENT INFORMATION SYSTEM 8
the country's flagship, Qantas Airline is known as a governmental airline. The country's
stable position has supported company in developing its business.
Economic Factors
If the economic condition of the nation is not up to the market then it will influence the
performance of the airline, there it is important for the company to receive sufficient business
frequently in order to work smoothly. If the country is dealing with the economic recession
and the per capita income is decreased, then the airline business has to deal with issues
related to operating flights on international as well as domestic routes (Aviation Industry,
2018). Because of some financial crisis, the Qantas Airline has to deal with issues in ruining
its flights. The organization experienced an economic downturn in its activities because of
excessive spending in some of the areas.
Social Factor
The social and environmental situations of Qantas Airline are excellent and many of the
travelers prefer to travel through this airline. Today, there is a trend in the market to travel
through Qantas Airline, and this trend has enhanced the performance of the company. The
company is offering concession on the tickets and on different services to the travellers
(Adamkasi, 2016). The airline is considered the most economical airways.
Technological Factors
Qantas Airlines has invested in purchasing new airplanes in its fleet, which has resulted in
increasing the revenue of the airline. The technology has made substantial growth in diverse
sectors as due to this travelers cannot book their tickets and can check in details. Information
technology in diverse areas has revealed its advancement.

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Environmental Factors
Different nation has different regulations regarding the environmental protection that must be
compiled by all the organizations. The Qantas Airline has reflected its honesty while
considering the rules framed by the authorities related to environment. Qantas is putting its
significant efforts in reducing the polluted emission at around 50% by 2050 (Adamkasi,
2016).
Legal Factors
It is very important for the Qantas Airline to comply with the legal aspects of the nation and
airline industry. The airline has adopted different rules regarding the security and health of
the customers and employees. The travelers receive excellent services such as quality food,
comfortable seats, etc. Besides this, smoking is not allowed inside the premises of the airport.
SWOT Analysis
SWOT Analysis is a technique of strategic planning utilized by businesses to recognize their
weaknesses, strengths, threats, and opportunities related to project planning and competition
(Snelling, 2012).
Strength of Qantas Airlines
Superior Services
Qantas Airlines is famous in the industry due to offering superior and quality services to its
passengers. Few of its facilities comprises extended onboard entertainment choices, quality
food, and beverage, SMS check-in for local travelers, customized meals, and constant
investment in enhancing the ambiance and quality of airport lounges (Bhasin, 2018).
Steady and Consistent Growth

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Qantas Airlines is offering its services since 1920 and considered as the oldest carriers of the
world. The company has registered a constant growth and revenue from the time of its
establishment (MBA Skool, 2018). This is possible due to the effective strategic framework
of the company designed by the experienced and trained management team.
Transformation program of Qantas
At the time, Qantas experienced intense competition in the foreign market; the company
established a new program with the name Qantas Transformation Program, which is focused
towards enhancing the quality of the services while maintaining the minimum cost.
Weaknesses of Qantas Airlines
Union Problems
Same like other numerous airlines of Australia, Qantas also experience many issues with
unionization. The company is struggling to negotiate with the unions few of which have even
been aggressive in their attitudes such as the Australian Licenced Aircraft Engineers
Association and Transport Workers Union (Bhasin, 2018).
Low Profits in International flights
From the time Qantas has been converted as an Australian flag carrier, it is experiencing high
pressure to run international flights (MBA Skool, 2018). However, the airline is incapable of
recording high profits or break even in the international business.
Directorates
Qantas has planned to introduce direct flights from to Europe from Australia. The company is
dealing with numerous challenges in running long-distance flights in balancing productivity
and demand through correct pricing strategy (MBA Skool, 2018).

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Opportunities for Qantas Airlines
Low fuel prices
The prices of oil were halved in 2015 and thus ensued in a financial advantage of around A $
33 million, which impacted costs positively. Besides this, there has been decreasing cost of
depreciation and the carbon tax has been eliminated all of which have positively shaped
opportunities for the industry of airline (Bhasin, 2018).
Business Travel
Today, the number of business travel is increasing along with the passenger’s number is also
in the business class as well as economy class. This has increased the scope of revenue for
both the classes and the frequency of travel for pleasure and business.
Threats for Qantas Airlines
Management of costs
Today, one of the most severe threats for the airline business is the high variation in the fuel
cost and maintenance of the fleet. The airline is struggling to maintain its prices in order to
confirm that cost is covered effectively (Bhasin, 2018).
Competition
Qantas Airlines is experiencing intense competition from key brands like Lufthansa,
American Airlines, British Airways, and Air France (MBA Skool, 2018).
Problems and Opportunities in the IS/IT of Qantas Airlines
Management information system is a computer system comprised of software and hardware
that aids as the backbone of the operations of an organization. Management information
system collects data from numerous online systems, evaluates the information, and record the
data to assist the decision-making procedure of the management. The key purpose of MIS is

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to provide feedback to the managers about their own performance; the top management can
monitor the business as a whole (Karim, 2011).
Qantas Airlines is dealing with numerous problems related to management of the data and
information of the employees, managing cost, etc. This is resulting in an increasing number
of strikes by the employees and pilots. However, Qantas Airlines canceled the implemented
management information system that is Project Jetsmart with the worth of around $40 million
in 2008 (Krigsman, 2008). The company was facing some issues due to the implemented
MIS, which was highlighted by the Union members of the company. The Union claimed that
the software unnecessarily increased the workload of the members. At the time, the union
suggested mechanics hired at Qantas to "not assist with the implementation." The company
has made a huge investment in Jetsmart, which was regarded as a significant step in the
investment of the company in the new information technology systems in order to maintain,
repair, and overhaul operations. Yet, company has not found any best management
information system that could be placed to improve operations of the business.
From the analysis, to enhance the performance of the organization and replace Project
Jetsmart, Qantas Airline needs to install a new management information system. The
company can install Process control system to manage the cost and data of the employees.
With the implementation of process control system, Company can easily eliminate the human
manual efforts and manage the procedures of the business. It can effortlessly evaluate the
performance of the employees and manage the cost of the operations.
Justification for Selecting Process Control System
Process Control System observe the industrial and physical procedures of a business like
metal fabrication, fleet assembling, or petroleum processing (Macaulay and Singer, 2016).
This system regularly gathers data, which is programmed to make day-to-day reports on

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system performance. A supervisor checks the process control reports in order to tell how
frequently, over a period, a specific activity takes place during the procedure of production,
or how frequently over a period, the business diverged from a monotonous production
procedure (Williams, 2018). The problem faced by Qantas Airlines related to managing
information of the customers and employees, and controlling the airline cost, could be solved
with the implementation of process control system as it will eliminate the repetition in the
procedure and reduce the human manual efforts. Through the implementation of Process
Control System as a management information system into the operations will support
company increasing the revenue of the company up to 50%, which will also cover the
financial loss faced by Qantas Airline at the time of Project Jetsmart implementation. Besides
this, the company will be able to reduce the cost of its flights due to which it will avoid the
cost-cutting strategies such as cutting the salaries of the employees and pilots (Travel
Weekly, 2011). Furthermore, the Process Control system will support company in attaining
its goal of becoming the best, premium, and low fare airline.
Cost/Benefit Analysis of Qantas Airlines
Tangible Cost
Employees training cost
Maintenance cost of the system
Financial cost on buying software and hardware for Qantas
Intangible Cost
Time consumption in employee’s training
Tangible Benefits
Reducing cost of information processing
Easy tracking of sales results for the management

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Reducing operating cost
Improving profits and sales of Qantas airlines
Intangible Benefits
Increasing competitive advantage
Enhancing the quality of the services provided to the customer
Enhancing information accessibility by data mining
Cost/Benefit analysis for software purchase
Cost
Software purchase A $60000
Maintenance A $1000
Training A $5000
Benefits
Increasing profit A $40000
Net Benefit A $40000
System Analysis and System Design
The system analysis is the procedure of reviewing a process to recognize its objectives and
drives and generate systems and processes that will attain them in a well-organized manner
(Arunesh, 2011). The Qantas Airlines is involved in offering best quality services to its
customers at low cost. However, it is unable to manage the information of the customers,
employee, and incapable of managing the low cost. This has resulted in strikes by the union
members due to which business is dealing with huge losses as well as disturbing the
relationship between the management and employees. The Process control system will

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support the company in managing all the information about the business and eliminate the
human manual efforts. This will eventually cease the other cost-cutting strategies of the
company such as salary cutting, etc.
System Design is the procedure of describing the interfaces, data, architecture, and modules
of a system in order to satisfy definite desires (Flynn and Luk, 2011). The process control
system is of broad range of size, complexity, and type, but it allows operators to handle
complex procedures to a high degree of constancy.
System Development Life Cycle of Process Control System (Management Information
System)
The system development life cycle enables operators to convert a newly established project
into an operational one. The system development life cycle is comprised of seven steps,
iterative procedure, and structures in a systematic manner (Langer, 2013). The seven steps of
the SDLC are presented below:
Source [(Ghahrai, 2018)]
Planning
The Qantas Airlines is the Australian flag carrier airways, which operates its flights to
numerous numbers of locations. The company has a brand image to offer reasonable price

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services; however, presently it is dealing with challenges in managing the cost of the
business, which is raising chances for union strikes in the company (BBC News, 2014). From
the analysis, it can be said that company requires an effective management information
system that could manage the procedures and support in reducing the cost of the business.
System Analysis and Requirement
The Qantas Airlines is dealing with issues such as strikes by employees and pilots due to
salary cutting. The company has adopted this strategy because it is unable to manage the cost
of its operations and information of the customers as well as employees. Therefore, to solve
these issues the company require an appropriate information system.
System Design
Qantas Airlines require a system like a process control system that works to monitor
industrial and physical processes like metal fabrication, airline assembling, etc. (Murray,
2018).
Development
The Qantas Airlines will hire an agent for information system development that could
manage to develop process control system with required features.
Integration and Testing
This stage is comprised of system integration and system testing consulted by quality
assurance professional in order to define if the projected design encounters the initial set of
business objectives (Rouse, 2019). Qantas Airline can contact IBM in consideration of
developing a process control system. IBM on behalf of Qantas Airlines will perform the
integration and testing of the process control system.

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Implementation
This step is related to the final installation of the information system in the respective
business. With the implementation, Qantas Airlines can run its operations with the help of the
newly developed system in order to improve the procedures and reduce the cost of the
business.
Operations and Maintenance
It is the final step, which is related to the maintenance and regular updates of the installed
information system. In the case of Qantas IBM will be responsible for the maintenance of the
system in the initial phase.
Post Implementation Activities
After the implementation of the process control system, Qantas Airlines will involve in
providing training to the employees for processing the process control system such that
company can solve its issues and can manage the cost of the business (Shaul, 2016).
Project Management, Risk Management, and Change management
Project management
Project Management is the exercise of introducing, developing, implementing, controlling,
and concluding the work of a team in order to attain particular objectives and fulfill precise
achievement measures at the quantified time (Project Management Institute, 2013). The
project management is comprised of project plan development. As it is known that, the
stakeholders influence the procedure of the project and the effects directly or indirectly. A
manager must recognize and analyze the impact level of every stakeholder and his or her
accountabilities in order to confirm the success of the project.
Stakeholders Level of Priority Responsibilities
Qantas Airline’s Board of High Supervision

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Director
Financial planning
Strategic management
Sponsor High Cost controlling
Result evaluating
IT department High Supervision
Alignment of the company’s
strategies
Implementing and
development of an
information system
Customers Medium Availing the services and
accordingly provide the
feedback
Change Management
Change management is an organized method used to deal with the change or alteration of the
goals of the business (Reiss, 2012). With the implementation of process control system,
Qantas Airlines need to make numerous changes in its operations. Qantas will need to hire
candidate that can provide proper training to operate the implemented information system
into the business. The company also need to change some of its strategies such as cost-
cutting. In order to reduce the cost, the company is involved in cutting the salary of its
employees and pilot, which is raising numerous types of challenges for the business. The
implementation of the new system will support company in analyzing properly the

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information of its employees as well customers. Moreover, it will eliminate the human
manual efforts, which will eventually reduce the cost of the airlines.
Risk Management
Risk management is the practice comprised of recognizing the potential risk in advance,
evaluating them, and taking corrective actions to eliminate the risk (Elahi, 2018). Risk related
to the implementation of process control system is:
 Failure of process control system which will result in a huge financial loss for the
company
 Damage of the Process control system due to lack of knowledge or training to the
employees
 Increasing resistance of the employees to adopt a change in the procedure
In order to manage these risk, the management of Qantas Airlines needs to do regular updates
into the system and guide the subordinates regarding the processing of the system.
Conclusion
The above paper has provided a detailed analysis of the influence of the external and internal
environment on the performance of Qantas Airline. The problems faced by the business due
to its existing information system in the business. From the analysis, it has been identified
that the company is dealing with numerous challenges related to the increasing cost of the
airlines. To deal with these challenges company adopted different cost-cutting strategies due
to which unions went of strikes. The paper has suggested Qantas Airlines install process
control system as a management information system that could support in managing the
procedures of the business and can contribute to reducing the cost of the business. Besides
this, the paper has highlighted the major steps involved in the implementation of information

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system that is System development life cycle. In the end, the paper has discussed different
risk involved in the implementation of the system and criteria that need to be considered at
the time of project management.

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