Strategic Management and Information Systems Strategy Analysis Report

This report provides a comprehensive analysis of an Information Systems (IS) strategy, focusing on its application within the context of Malaysia Airlines. The report details the workflow of the IS strategy, outlining the hardware, software, network, and data components. It emphasizes the use of e-business portals to satisfy customer demands and the role of IT solutions in sustaining the company in a competitive business environment. Furthermore, the report discusses the implementation of various systems, including the YMS system for revenue management and customer reservation software. It also explores the application of Enterprise Resource Planning (ERP) software and its impact on business decision-making and operational efficiency. The report highlights the company's outsourcing of IT services to enhance employee skills and ensure top-class service. The analysis covers the strategic importance of IS in enhancing brand loyalty, generating business value, and improving overall operational efficiency within the airline industry.

Running head: STRATEGIC MANAGEMENT AND INFORMATION SYSTEMS
STRATEGIC MANAGEMENT AND INFORMATION SYSTEMS
Student’s Name
University Name
Author’s Name

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Work Flow of the IS strategy
The Information system strategy of Earl, focuses on including justified information on
developing strategy appropriate to the business needs of the organisation (Dziembek &
Bajdor, 2015).
Element What? Who? Where?
Hardware i) Computer
ii) Server
The personal tablets
of the consultants
are synced with the
servers of the
central IS
department, who
has access to all the
data that transmits
through the radar of
the servers.
The tablets lets the
consultants to
manage operations
on the go. The
servers are statically
located at the
central offices.
Software i) Ramco IS
ii) Air
Operations
Suite
iii) Hyper Text
Mark-up
Language
iv) JAVA
script
The essential
software are
installed in the
tablets of the
consultant.
However, the
software are
maintained by the
centralised IS
servers’ systems.
The operations done
by means of the
software are
maintained by the
consultants
personally on their
tablets. However,
the footprints of the
activities are backed
up by the central

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v) CSS and
Re-Captcha
servers. Many
facilities of such
software might be
only accessible
through the central
IS servers.
Network i) Intranet
ii) Internet
connectivity
iii) Email
service
iv) Web
applications
Web developers and
Web designers (for
the central IS
systems)
Global access based
web addresses
(excluding achive3
web)
Data i) SQL
application
ii) Personal
Data
Protection
Act
iii) End to end
encryption
iv) Firewall
v) RFID tags
that can
track the
The organisation
has full ownership
rights over the
transactions and
data accessed by
interior and exterior
personnel via the
central servers. The
consultants use the
data as and when
they need it.
The consultants
using the data can
only use a
replicated version
of the data.

4STRATEGIC MANAGEMENT AND INFORMATION SYSTEMS
location of
the cargoes.
The company formulates the IS strategy based on the most appropriate information
that is required for the action plan to be made by the executives and the business objectives
that are being focused upon. The major activities of the IS systems are framed to function in
the interconnection during data transfer for the activities that require to intake method
information and supply information after processing. One major example of the application
of the IS strategy in this business sector is the use of e-business portals, operated through
central servers in order to satisfy the demand of the customers (malaysiaairlines.com, 2018).
This strategy provides a link between the organisational business demands and the resources
of Information technology. According to the opinion of Shaw (2016), the IT solutions that
this service provides to the company, helps in the sustenance of the company in the complex
and changing business environments. This Information Technology system have been
instrumental also in the contributions of IT in the promotional and marketing activities of the
company and hence, enhance the brand loyalty of the organisation over other companies of
the same industry. This also helps to generate3 business valuwe by keeping costs lower by
enticing the customers to purchase the air tickets through the official ticketing websites or via
the sales offices. As per Kimes and Wirtz (2015), the customers have also been benefitted by
this, as they could save the money that they previously paid to the airline agents.
The Malaysian airlines company have installed suitable IT systems in order to make
the marketing as well as sales activities more efficient and smooth. E-commerce has been
thus a proficient business tool endorsed by the company that also have the proficiency to help
in managing the business activities by making the organisation’s stakeholders capable to sell,
purchase, track supplies in the inventory as well also data sharing (Thönes, 2015).

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The company has also made use of latest IS systems like the YMS. The application of
this system is associated with the generation of added revenue and customer loyalty that can
affect the sales value of the company’s services in the future. Each flight seat is a source of
revenue for the company. The sales possibility against each seat is static against time. In that
case, the company have no control over the amount of revenue to be collected through sales
of tickets of the respective seats. As opined by Fang et al. (2014), the YMS system enables
the company to introduce the opportunity for the customers where the prices if the seats
would vary over different point of time. The services allows customers who book the seats
earlier, avail them at lower costs compared to them who do that latter. This gives the airlines
company a conception about the trends of customer behaviours and formulate strategy
accordingly to maximise revenues with the least operational costs.
The software for customer reservation have also proved to be beneficial for the
company. This is a seats reservation system integrated with the central servers. The facilities
required for the operation of this software include departure management at the airport, call
centre and other facilities. In the views of Lam et al. (2017), this system is potentially
equipped to handle the pressure of direct sales and thus eliminate the process of taking sales
commissions by various agencies against booking of flight seats. The service of this system
have successfully increased the number of booking per flight for Malaysian Airlines
Company (malaysiaairlines.com, 2018).
Lastly, the implementation of the Enterprise Resource Planning software needs to be
discussed. This software have the capability to influence the making of business decisions by
helping the executives to have an overview of the execution of any particular policy. Some
commonly implemented ERP software genre are Human Resource management, management
of supply chain and also the finance and revenue along with Logistics. As an effect of the
implementation of this software, the workflow among the various departments of the airliners

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company becomes more machine oriented. One example can be cited. An employee who is
performing in the sales team can view the customer services and products that have not yet
started its journey commercially. As opined by Ram, Wu and Tagg (2014), other than saving
labour cost, these software reduce the need of large inventory bases. The IT system ingrate
the sales, marketing as well as the finance department of the company so that the company
staff are able to deliver the service after analysing wide range of information regarding the
operations taking place in the internal environment of the company.
In order to boost the air transport service, and provide customers the best in class
safety, comfort and punctuality of service, the company have emphasized on enhancing the
skill level of the employees. The safety guidelines that the company has framed, prompted
them to outsource their IT system services to TATA Consultancy Services who provides the
best in class software and information technology infrastructure (tcs.com, 2018). Besides, the
company has also outsourced IBM for training the MAS’s employees to operate the various
IT frameworks. IBM chiefly trains the employees of the company

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Reference List
Dziembek, D., & Bajdor, P. (2015). Concept of Information Strategy of Virtual Organization
with using the Cloud Computing Solutions. Applied Mechanics & Materials, 795.
Fang, Y., Qureshi, I., Sun, H., McCole, P., Ramsey, E., & Lim, K. H. (2014). Trust,
satisfaction, and online repurchase intention: The moderating role of perceived
effectiveness of e-commerce institutional mechanisms. Mis Quarterly, 38(2).
Kimes, S. E., & Wirtz, J. (2015). Revenue management: Advanced strategies and tools to
enhance firm profitability. Foundations and Trends® in Marketing, 8(1), 1-68.
Lam, H. M., Zhao, M., Sim, S., Gan, K. K., Ho, T., & Lee, J. (2018, April). The value and
effectiveness of sensor trace analytics in solving yield impact issues: A case study. In
SEMI Advanced Semiconductor Manufacturing Conference (ASMC), 2018 29th
Annual (pp. 62-65). IEEE.
Ram, J., Wu, M. L., & Tagg, R. (2014). Competitive advantage from ERP projects:
Examining the role of key implementation drivers. International Journal of Project
Management, 32(4), 663-675.
Shaw, S. (2016). Airline marketing and management. Routledge.
Thönes, J., 2015. Microservices. IEEE software, 32(1), pp.116-116.
malaysiaairlines.com, (2018). Malaysia Aviation Group. Who we are and what we do.
Available at: https://www.malaysiaairlines.com/us/en/about-us.html [Accessed on 10
July 2018]
tcs.com, (2018). Celebrating 5 decades of excellence and many more to come! Available at:
https://www.tcs.com/ [Accessed on 10 June 2018]

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