Information and Knowledge in the Commercial Airline Industry: Emirates

This report critically evaluates information and knowledge management within Emirates Airline, focusing on strategies to enhance customer relationship management (CRM) and leverage e-business strategies. It examines potential improvements to Emirates' CRM system, including mileage-based segmentation and initiatives to differentiate services. The report also analyzes Emirates' e-business strategy, highlighting its alignment with organizational activities and technology integration. Furthermore, it evaluates suitable frameworks for the business environment, considering the airline's operations within the United Arab Emirates (UAE). The study emphasizes the importance of customer insights, value-based segmentation, and the effective use of technology to improve customer interactions and overall travel experience. The report also discusses the characteristics of data, information, and knowledge, including the difference between tacit and explicit knowledge, to provide a comprehensive understanding of knowledge management in the airline industry.

Running head: INFORMATION AND KNOWLEDGE IN THE COMMERCIAL PASSENGER
AIRLINE INDUSTRY
Information and Knowledge in the Commercial Passenger Airline Industry
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction..........................................................................................................................2
Improvements which can be made in extending CRM system and improvements in the
customer management.....................................................................................................................2
Discussion of the e-business strategy and technology aligned with the organization’s
activities...........................................................................................................................................4
Critical evaluation of the framework and suitable framework for business environment...6
Characteristics of the data, information and knowledge and evaluation with Emirates......8
Conclusion.........................................................................................................................10
References..........................................................................................................................12

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Introduction
In the recent times, the aviation industry has reached a crossroad. The economic slump as
a result of the September 11 attacks has created severe impact on the airlines viability. While the
European and U.S. airliners were severely wedged, the airliners in other parts of the world have
been striving to make improvements in terms of profitability and operating costs. The initiatives
to improve the customer relationship in the aviation industry needs to be fostered with an
augmented focus on the competitive advantage and profitability in long-term. As a matter of fact,
the improvement strategies by the various airline companies had adopted CRM for aiding
customer relationships (Shaw 2016). The report aims to critically evaluate the possible
extensions which can be made in the CRM strategy of Emirates. The study has further suggested
the improvements of the customer knowledge and competitive advantage which can be gained in
terms of the organization. Some of the other section has discussed on how the eBusiness strategy
has been conducive in the aligning the activities to deliver effective and efficient process at
Emirates. In addition to this, the discourse has also included frameworks which are most suitable
for analysis of the business environment and justifying the same to make it most effective with
the strategic direction of the organization. The latter part of the study has highlighted the
characteristics of the data, knowledge and information and difference among the tacit and
explicit knowledge which may benefit Emirates in the long run.
Improvements which can be made in extending CRM system and improvements in the
customer management
To manage the customer relationship process in a more efficient manner, Emirates needs
to follow a mileage-based segmentation strategy which will guide the investors to get a better
insight of the high-value customers. In addition to this, Emirates needs to follow CRM initiative

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development which will be able to differentiate the competition among the airliners such as
Flynas, Saudia, SaudiGulf and Nesma Airlines. Emirates needs to abandon the approach of fast
follower and integrate the CRM development initiative for higher returns. The organizational
management and design process needs to be instilled as per the service mentality among the
employees empowered with a complete view precisely articulated with the role of the employees.
The implementation of the suggested steps needs to be depicted with consumer centric approach
along with the appropriate relationship management positioned to retain, develop and acquire a
better competitive position in the long run. The implementation and development of the customer
analysis along with the decision support may start with the utilization of the customer
information not only to differentiate the services as per the customer value and driving the
important operational decisions. The CRM program at the end needs to be achieved as per
operational efficiency, growth and long-term management (El Khatib, Bin and Uae 2014).
Emirates needs to further identify the relevant impediments faced by the global airlines
industry which are related to create an economic slowdown along with the aftermath of the event
on September 11. This has led to decrease in the passenger traffic, decrease in the load factors,
burgeoning fleet, labor costs and insurance. This needs to be identified on a global basis which is
considered with the operating loss and government bail-outs. The CRM strategy can be also
improved by focusing on the economy-cost carriers especially in the areas having low customer
ratings. In addition to this, Emirates can introduce the competitors to determine the initiatives
taken to determine the value contribution among the customers. At present there are not only
increasing number of frequent flyer programs but also the flight notifications to improve the
commonplace among the customers. The primary goal of the CRM program needs to be depicted
as per personalization which can be distinguished among other airlines (Tubigi and Alshawi
2015).

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Emirates needs to take a learning lesson as per fast follower approach and experience of
the competitors aimed to reduce cost. For instance, it has the scope of claiming for the spending
of the airlines based on a similar check. Additionally, the increased technology capability may
improve the access of the technologies pertaining to the introduction of the new services which
will be able to create a sustainable differentiation. Emirates needs to take the appropriate strategy
which are aligned with concentrating on the relationships of building an effective CRM (Zaei
and Zaei 2014). Moreover, it is not mimic in the competition to offer the identical services.
Therefore, the airliner needs to be particularly cautious in understanding the customer
requirements as per the specific initiatives such as evaluating the ROI and driving customer
insights. The adoption of the new initiatives taken by the airliner will improve the customer
insights, value and return from the CRM program. This will allow the company to act in a more
competitor driven manner thereby focusing on the key customer segments (Adam 2017).
The differentiation pertaining to the CRM initiatives needs to be implemented in a more
effective manner by understanding the value and needs among the customers. Moreover, the
effective segmentation of the customer is vital for the success of the CRM strategy. Despite of
this, customers may be grouped in value-based segmentation which is important for
understanding the profitability of the individual segments (Barros and Wanke 2015).
Discussion of the e-business strategy and technology aligned with the organization’s
activities
The recent activities pertaining to Emirates can be seen with introducing three new
destinations across the global network. These areas are mainly included in the Newark via
Athens, Phnom Penh and Zagreb. In addition to this, Flydubai and Emirates have announced
about the expansive code shared agreement along with network optimization initiatives. Some of
the latest installments by Emirates is depicted with updated Emirates A380 onboard lounge. The

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airliner has further taken several initiatives which are based on the opening the most advanced
flight academy training center. Emirates is considered with one of the Best Airline in the world
with dedicated and secure provision for pharmaceuticals. The introduction of the new network by
the airway is identified with countries such as Yangon, Hanoi, Yinchuan, Zhengzhou, Cebu and
Clark. In 2015 Emirates had took major initiatives to provide 24-hour customer support in
English and Arabic via social media (Lewis-Pryde and Evans 2016).
The implementation and development of the customer information needs to be
differentiated with the appropriate service as per the customer value which is beneficial for the
operational decisions. This is required for both long-term and near-term relationship growth
strategy of the management. The data claimed for the similar technology has been further
described as per the introducing the services to the sustainable differentiation. However,
distinguishing factors pertaining to the technology needs to be understood in terms of customer
value. The customer behavior and technology usage need to be aligned with the employees for
providing the employee with better knowledge pertaining to the interactions of the individual
customer enabling the travel experience (Qasim and Zafar 2016). It needs to be further seen that
IBM institute for the business value is developed with the fact-based strategy insights pertaining
to the cross-industry issues and industry specific issues. The member programs of the IBM
business value are considered with the in-depth consulting with the IBM strategic advisors. The
employees need to be evaluated as per better knowledge about the interactions with the
technology enabled changes. The implementation and development of the customer information
and is not only used to differentiate the service levels based on the crucial decisions of
operations. In the end CRM program was also considered as the platform for the operational
efficiency, long-term relationship management and growth (Leong et al. 2015).

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The increasing technical capabilities of the airline is depicted to be conducive for taking
increasing technological capabilities. This has allowed the airline to gain access to similar
technologies and reducing the ability to introduce sustainable differentiation. The improvement
in the present e-business strategy have allowed the companies in determining the customer value.
Emirates has developed the e-business strategy which have allowed to determine the airline
recognize the high-value frequent flyers and proactively offer special. This has further included
the differentiated services in the event of cancellation of the flight. Technology incorporation has
allowed the employees in having a better knowledge about the customer which has added to the
overall travel experience. The high level of service has ensured the employees to exceed the
customer expectations (Nieves, Quintana and Osorio 2014).
Therefore, it can be seen that the incorporation of technology in the organization will
start with the use customer information and it will not only be able to differentiate the customer
values but also essential operational decisions. CRM program has been further considered as the
main platform for driving the long-term relationship and growth (Mardani et al. 2015).
Critical evaluation of the framework and suitable framework for business environment
UAE is depicted to maintain a free and vibrant economy which is significant with the
proportion of the revenues originating from the exports of oil and gas. The successful efforts
have been further conducive in diversifying the industrial base created together in the services
sector. In addition to this, the suitable framework for business environment for the operations of
the airlines is also evident with the establishment of the free zones which is an important feature
as per the diversification policy. In 1971, the country has been able to enjoy a degree of political
stability which is unequaled in the region. This has permitted the company to reinforce the social
structure to work as one of the most secure, prosperous and tolerant organization in the world.
The presence of the special economic zones and free zones has allowed the business to operate

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with 100% ownership. This is further evident with the repatriation of the profit and capital as
well as tax exemption. The significant nature of the incentives offered to the corporate
governance and investors have been able to ensure the governance provisions for ensuring
accountability and transparency (Joglekar, Davies and Anderson 2016).
It needs to be further inferred that the corporate taxes are reserved from the branches
where there is presence of oil producing companies and foreign companies. The airliner needs to
pay a 5% tariff on the goods which are imported from the countries listed under “non-Gulf
Cooperation Council”.
The present framework guiding the operations of the airlines is considered with IFRS
financial statements. This has been able to consider all the companies listed under the UAE stock
exchange. The companies are needed to provide the report for annual activity which are needed
to be audited by Ministry of Finance and applicable for the Emirates. Moreover, the companies
listed under the stock exchange are needed to submit their accounts to the “Emirates securities
and commodities market authority” (Mutuku 2018).
The effectiveness of the business needs to be depicted as per greater access of the
business in the strategic location between Asia, Europe and Africa. Moreover, the infrastructure
of UAE is considered as second to none. The telecommunications services including the fixed
telephony and internet access is conducive for uninterrupted communication in the airport
authority. Moreover, the road network is identified to be constantly upgraded by maintaining
world-class standards in all the airport terminals. Till date the overall investment of the
government has been seen to be evident in terms of the various type the facilities in line with the
utilities and other infrastructure. The business environment of the country has been also useful
for the investors for providing the benefit pertaining to the human resource skills, courteous
professionals. Some of the other factors conducive for the business environment is evident with

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strong economy in all the regions by 4.4%. Moreover, the increasing spending on the economy
will be also able to contribute to further expansion of the business (Hafeez et al. 2016).
Some of the other contributing factors of the business relates to the fact that capital gains
are not applied for taxation unless they have been derived from the sales of the company. The
significant legislation is also ensured that the deductions are determined as per the accounting
principles and other tax decrees pertaining to Emirates. At present, the deductions may not be
considered to be relevant as most of the companies are exempted from CIT in UAE. Some of the
exceptions for this relates to upstream oil and gas companies and various branches of foreign
banks. Additionally, the relevance of the financial statements and operational integrity is
maintained by professional accounting bodies such as “UAE AAA” and “UAE National
Accountants and Auditors Association”. These bodies ensure that the financial statements are
prepared annually and the same is inspected by “State Audit Institution of the United Arab
Emirates” which is recognized as one of the major audit organizations of the country (Redpath,
O'Connell and Warnock-Smith 2017).
Characteristics of the data, information and knowledge and evaluation with Emirates
The global expansion along with increasing complexity in the business process especially
in the airline industry have led to the need of incorporating knowledge management by the
managers. Managing knowledge in Emirates airlines needs to be encompassed with multiple
aspects of the business which originates from designing of organizational strategies along with
making improvement in customer experience. The critical evaluation of knowledge management
strategy needs to be identified by some of the other eminent leaders of industry. Knowledge can
be brought into practice in an organization to support the existing systems. This can be also
applied from personal experience or experience of others. The relevance of knowledge

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management system can be seen with organizations such as the police, the way courts and
Emirates airlines (Saeida Ardakani et al. 2015).
Previous studies have shown that the knowledge management of Emirates airlines is
focused with software and hardware features and also managing and retaining of tacit
knowledge. Emirates airlines uses varied nature of activities like collaboration tools. These tools
permit the employees for creating a virtual web-based workspace in which they can easily share
information via electronic means. This allows other employees to benefit from previous
collaboration which is conducive in improving the present services of the company. The
collaboration further optimizes and improves the innovation by incorporating decision making
and problem-solving techniques (Shams 2015). The Emirates airlines was successful in making
the best use of knowledge management with the support of top management. However, there is
scope of significant improvement which can be brought into this system by and developing
variety of tools which will allow their employees to communicate among each other. For
instance, better use of intranet can be done by allowing the staff to discuss day-to-day issues in
each department. This will be conducive in providing helpful sources of knowledge for their
employees. Additionally, e-learning modules will ensure that tacit knowledge is available for all
the employees which will be conducive in making internal communication strongly supported by
the executives (Law and Breznik 2018).
Emirates airlines and further introduce social networking applications developed by
Yammer enterprise which is supported by Microsoft 365. Such a social networking platform is
already tried and tested by British airlines. This allows the employees to connect across different
working to platforms to support project management decisions. Some of the most significant KM
features of this tool allows individual profile and group creation, collaboration on documents
along with several other useful features. Moreover, the adoption of this technique will allow the

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airliner to increase its inbox space in compared to regular emails. Using such a tool by BA was
confirmed after the analyzed how social networking platforms were much more effective than in-
house communication platforms. The adoption of this knowledge management technique
allowed several staffs of BA to share their expertise. This included frontline employees and
cabin Crew directly communicate with the engineers, pilots and managers for sharing their
knowledge and reaching to an optimal solution (Laudon and Laudon 2015). The adoption of this
tool will be further conducive for A380 airplanes used by the Emirates as the employees will be
able to share their first impressions and experience with the co-workers. Therefore, the
application of such a tool will allow the internal communication become more effective. The use
of such a modern technology will allow Emirates airlines to speed up their technological controls
and build a strong knowledge to support the customers. In addition to this, some of the other
initiatives needs to be taken by sending customer surveys which will allow the airlines company
to know about the reasons of discontentment in the present knowledge management system
(Beik and Galbraith 2016).
Conclusion
The organization has the scope of improving the CRM system by abandon the approach
of fast follower and integrate the CRM development aimed with higher returns. The overall
findings for this section suggest that CRM program needs to be achieved as per operational
efficiency, growth and long-term management. E-business strategy and technology aligned with
the organization’s activities is depicted with updated Emirates A380 onboard lounge. The
airliner has further taken several initiatives which are based on the opening the most advanced
flight academy training center. Furthermore, the implementation and development of the
customer information needs to be differentiated with the appropriate service as per the customer
value which is beneficial for taking the operational decisions. Suitable framework for business

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environment suggests the airliner enjoy a high degree of political stability which is unequaled in
the region. The significant legislation is also ensured that the deductions are determined as per
the accounting principles and other tax decrees pertaining to Emirates. Characteristics of the KM
evaluation with Emirates can be identified with managing and retaining of tacit knowledge
which will allow their employees enhance communication process among each other. This needs
to be done by collaborating with Yammer enterprise.
It can be concluded that Emirates airlines can look forward to strengthen the KM system
which will allow the company to reward its employees who are active in complication
applications. Emirates airlines will be also able to benefit their employees by sharing of various
types of non-managerial ideas with the use of bottom-up knowledge process. The company also
has the scope of introducing a new scheme for encouraging increased contribution of staff ideas
in the bottom-up knowledge process. This needs to be incorporated by a special KM tool for
allowing the frontline employees to express their opinion on varied range of ideas on how
customer service can be improved.