Posted at 12.19.2018
What will be the recognized problems, issues and short comings in addition to above two areas of studies how do Srilankan Airlines achieve competitive benefit by changing the success in their management system using IS/IT?
Information System and Information Technology (IS/IT) is just about the core feature for many business successes in the globe. IT applications are largely used to help organizations to do its day to day work and also to gain competitive benefit while reducing competitive disadvantage and also to meet other business goals which organizations need. Relating to Ross and Fenny (1999), in the mid of 1980s, they have discovered the IS/IT as an integral weapon which helps to achieve the competitive edge for any corporation. Also Ward and Daniel (2006) has explained in their publication of Benefits Management that in the last four decades there was a huge IS/IT requirement for organizations to meet its need to achieve the competitive edge. Furthermore Ward and Daniel (2006), talked about that with the first level of IS/IT adoption helps to automate some regular activities to lessen the efficiency and reduce the cost while providing a good functional process with a good product.
According to Croteau and Bergeron (2001); Kearns and Lederer (2000); Zhang and Lado (2001) cited in Garg, Joubert and Pellissier (2005) p. 33, mentioned that applications which can be support to attain the competitive advantage known as the strategic management it and it helps to achieve the best business performance for the organizations. Matching to Shed and Martinsons (1997); Ho (1992); Wiseman (cited in Henry and Pun (2000), mentioned that it's possible to perform the competitiveness of companies by using new opportunities which offered to the organization by proper information systems. Buhalis (2004), has pointed out in his research paper about e-airlines, that airlines have been making an investment intensely for Information Communication Technology because the 1950s plus they have used the IS/IT as a competitive tool to accomplish their business focuses on. Also he has pointed out a few examples that, in 1962, the American Airlines introduced its SABER computer reservation systems alternatively solution for their previous manual data getting into system expanding its Boeing fleet by 50%.
According to the 12. manage. com website, with the huge business development the IS/IT has given more impact to people businesses and mean while there is an enormous development in IS/IT systems. Strategic planning helps the organizations to recognize their IS program and its IT which support to gain the competitive advantage over other rivals. Strategic planning is an instrument which support for the arranging part for today's on the basis of the projections of the desired future. Information solutions are increasingly regarded as strategic sources of an organization. Indeed it is just a potential use of IS/IT as a competitive tool has turned into a popular cliche.
Also the Management play an important part of an organization. Its main role is to unite people collectively in order to perform achievable goals. Management mobilize or allocate resources to different department like Human reference, Finance, IT division, etc. and set up these resources so that organizational tactical goals are completed easily over time. Management also will take vital part in planning, organizing, leading and managing. It gives route, aligns and achieves business goals with available resources. As shown in the allbusiness. com website, there are three different kinds of levels available in general management hierarchy. Those are classified as proper, tactical and functional. To get the utmost benefit from the company business intellect, the organization will need all three levels - strategic, tactical and functional - employed in conjunction with each other. Corresponding to Steiner (1979), in the role of management circumstance, mainly the strategic level is more important which is the best level and usually done by mature management level. Simply the decisions on the goals, committing money, staff and time are done in this particular proper level. Tactical planning level it can the implementation of the tactical plan stages such as combine the available resources and review alternatives. In the functional level, it is much more detailed of tactical and tactical levels. In such a level the managers chosen to work the program develop a specific plan to execute the proper plan. Which means management role and the IS/IT strategies are participating in an enormous role to gain the competitive advantage.
As explained in Srilankan Airlines twelve-monthly report (2009), their IT department involving and giving huge support role to all departments in the Srilankan Flight during a yr of multiple changes. Srilanka Airlines IT team is an self-employed department within the business. Therefore it is an entity as a part of the process to align all divisions with the corporate strategy within an IT perspective which is helping the complete organization to reap the benefits of modern technology and enhance their processes and production while getting competitive gain. However matching to Porter (Cited in Clarke 2001) p. 114, mentioned that, he has suggested to gain the competitive benefit; the firm must be predicated on one of three universal strategies. Those are categorized as differentiation, cost authority and the emphasis. Considering the Porters differentiation strategy, the Srilankan Airlines has provided greater customer convenience through check-in facilities on mobiles was completed. This mobile center is mainly focuses on the Srilankan Airlines customers. Assessing with other airlines, the Srilankan Air travel has been using the differentiation strategy in their group. Therefore further investigation is required to identify if the role of management involvement is really beneficial to achieve the competitive benefits using IS/IT or not.
Considering all these general factors which pointed out in the aforementioned paragraphs, it is clear that role of management involvement and IS/IT involvement are the key key factors of attaining competitive advantage for just about any business. Therefore this research is carried out to find whether the same concepts which were identified in above paragraphs can connect with the Srilankan Airlines to accomplish competitive gain while assessing with the overall findings.
IS/IT have revolutionized the entire business world. So far the organizations derive the competitive gain applying technology to their industry. Typically the competency will be changeable one of the competitors base on the IT utilization and the engagement of role of management. The flight industry specifically has fostered a dependency on IS/IT for his or her operational and tactical management. Airlines were early on adopters of Information Systems & IT and have an extended history of technological innovation, in comparison to a great many other business business. (Buhalis 2004). IT applications are mainly used to help organizations to its day to day work and to gain competitive benefit while lowering competitive disadvantage and to meet other business aims which organizations need.
Following sections summarize about what is competitive edge and the way the organizations achieve competitive edge using IS/IT with participation of management functions.
As mentioned in 12manage. com web site, when a company probably able to make a profit more than its cost of capital, because it has achieved a competitive position that provides a few of and edge over its potential rivals. To attain such a competitive border, it normally takes the formulation and execution of business strategy. To develop a competitive edge, the business must own value creating activities which cannot be duplicated by any other organization. Matching to Day and Wensley (cited in 12manage. com website 2010), mentioned that two units of sources is there which involved with creating competitive advantage. Those two are grouped as superior skills and superior resources. As suggested by Porter (1985), that to get the competitive gain, the company must be predicated on one of three universal strategies. Those are grouped as differentiation, cost leadership and the emphasis. The differentiation means that whatever the product should vary from other distributors and the cost leadership makes company to produce the merchandise in less expensive. This will help to increase the income to the firm. Focus means that the firms must concentrate about today's market and need to identify where are they assessing to other vendors and finally predicated on the calculation they need to perform much better than other competitors using their skills and knowledge. In some other way Treacy and Wiersema (1995), proposed another popular generic framework for increasing competitive advantage. Through this framework, 'a firm typically will choose to focus on one of three "value disciplines": product management, operational excellence, and customer intimacy'.
As recommended by Ward and Peppard (2002, p. 112), Operational Superiority means 'enabling products and services to be obtained reliably, easily and cost-effective by customers'. With this competency-based strategy it signifies a company strategy which can do better improvement to the organization than other competition and be able to deliver both cost-effective and reliable quality of customer contentment.
Further to Ward and Peppard (2002, p. 114), product control means 'continuing product innovation conference customers' needs. This strategy signifies not only creativity in developing new products and enhancing existing ones, but also astute market knowledge to ensure that they sell. '
It has been argued (Ward and Peppard 2002, p. 113), that the Customer Intimacy shows 'targeting markets very exactly and tailoring products and services to the needs of particular customer organizations. The purpose of here is not only to fulfill but to please customers by understanding their needs and appointment them on every occasion. This is clearly being expensive but it can build long-term customer loyalty'.
However further to Porter (1985), he has explain a frame work model call 'Five Forces' diagram which capture the main idea of porters theory of competitive advantages. The five pushes model defines the rules of any sort of competition in virtually any industry. Further to Porter, these five pushes determine industry success. Also the five pushes frame work explain that what's most significant and it helps organization to fully capture their goals for long-term benefits. The five competitive pushes are typically shown in the following diagram 1. 0;
Diagram 1. 0: Porter's Five Causes - Components of Industry Structure
Source: Porter, (1985), p. 6
The collection of power of the five makes can be varies from industry to industry. For the time being the strength each of the five forces also can change. Further to Porter and Miller (1985), stated that information technology can alter the five pushes to the industry appeal. The Five Pushes framework highlights what's important and directs manager's towards those aspects most significant to long-term benefit of the organization. Relating to Porter (1985), has described the Five Makes elements as follows;
The term 'suppliers' comprises all resources for inputs that are needed to be able to provide goods or services. There are many elements for Dealer bargaining power may very well be high.
The market is dominated by the few large suppliers rather than a fragmented way to obtain supply,
There are no substitutes for this input,
The suppliers customers are fragmented, so their bargaining ability is low,
The moving over costs from one supplier to some other are high,
There is the possibility of the company integrating forwards to be able to obtain higher prices and margins. This risk is particularly high when
The buying industry has a higher profitability than the supplying industry,
Forward integration provides economies of size for the provider,
The product is undifferentiated and can be replaces by substitutes,
Switching to an alternative product is not at all hard and it is not related to high costs,
Customers have low margins and are price hypersensitive,
Customers could produce the product themselves,
The product is not of strategically importance for the client,
The competition in an industry will be the higher, the easier it is perfect for other companies to type in this industry. In such a situation, new entrants could change major determinants of the market environment (e. g. market stocks, prices, customer loyalty) anytime. There's always a latent pressure for effect and adjustment for existing players in this industry. The threat of new entries will rely upon the magnitude to which there are obstacles to entry. These are typically
Economies of range (minimum amount size requirements for profitable procedures),
High initial investments and fixed costs,
Cost features of existing players scheduled to see curve ramifications of operation with totally depreciated investments,
Brand loyalty of customers
Protected intellectual property like patents, licenses etc,
Scarcity of important resources, e. g. certified expert staff
Access to raw materials is handled by existing players,
Distribution channels are handled by existing players,
Existing players have close customer relations, e. g. from long-term service contracts,
The buying industry hinders the supplying industry in their development (e. g. reluctance to accept new releases of products),
The buying industry has low barriers to access.
Similarly, the bargaining electric power of customers can determine how much customers can impose pressure on margins and amounts. Customers bargaining electricity is likely to be high when
They buy large amounts, there is a concentration of purchasers,
The supplying industry comprises a huge variety of small operators
The delivering industry operates with high fixed costs,
High switching costs for customers
Legislation and federal action
A menace from substitutes is accessible if there are substitute products with lower prices of better performance parameters for the same goal. They could potentially attract a significant proportion of market amount and hence reduce the potential sales amount for existing players. This category also pertains to complementary products. Much like the threat of new entrants, the treat of substitutes depends upon factors like
Brand commitment of customers,
Close customer relationships,
Switching charges for customers,
The relative price for performance of substitutes,
This force represents the strength of competition between existing players (companies) within an industry. High competitive pressure results in pressure on prices, margins, and therefore, on profitability for every single company on the market. Competition between existing players is likely to be high when
There are many players around the same size,
Players have similar strategies
There is very little differentiation between players and their products, hence, there is much price competition
Low market growth rates (progress of a particular company can be done only at the trouble of a competition),
Barriers for leave are high (e. g. expensive and highly professional equipment).
Above mentioned forces determine the power of competition and therefore the success and elegance of a business. At the primary level, businesses create competitive benefits by perceiving or finding new and better ways to compete in an industry and taking them to advertise, which is in the end an action of innovation. Inventions shift competitive edge when competitors either neglect to perceive the new way of fighting to respond. There may be significant benefits to early movers giving an answer to innovations, specifically in business with significant economies of range or when customers are definitely more concerned about transitioning suppliers. A number of the typical factors behind innovations which shift competitive edge are categorised the following:
new or moving buyer needs
the emergence of a new industry segment
shifting insight costs or availability
changes in administration regulations
Over the past two decades, researches have suggested several proper frameworks to identify the IT applications that are likely to provide competitive advantage. It is important to identify the difference between IS, IT and information and the general benefits of IS/IT as well. Therefor the next will discuss about the IS/IT strategies and exactly how it good for the business sector.
It has been argued by Clarke (2001), p. 115, that information's passes in-between individuals and organizations with confirmed communal environment. Information systems may identify as a system which facilitates and allow to go away within the specific environment. Distinguish between IS, IT and information's and the way its website link with one another is displaying in the next figure 1. 1.
Figure: 1. 1 The Nature of IT, Information Systems and Information
Source: Clarke (2001), p. 116
There are several benefits which can be gained from IS/IT. Regarding to Farbey et. al (cited in Ward and Danniel, 2006), stated that we now have five elements contained in the organizational structure. Pursuing table 1. 2 shows the five elements of and organization and its own description.
Includes people recharged with overall responsibility for the organization's direction
Includes middle professionals who operate in order to transform the strategic perspective into operational reality
Refers to people who perform work related right to the creation of products and services
Includes people who serve the organization by impacting others' work
Includes people who provide support for the organization beyond your basic production of goods or services. These are often specialist using disciplines.
Table: 1. 2 The five elements of an organization
Source: Ward and Daniel (2006), p. 7
However table 1. 2 implies that there is certainly significant numbers of benefits can apply to the management and to the business which helps to gain the significant development. As argued by Ward and Daniel (2006), the tactical benefits tend to be involved with business organizations development and also to develop a new business models where IS/IT play a primary role. As explained by Ferbey et al. (cited in Ward and Daniel 2006), the word of management describe about the actions of middle management within an organization. These administrator levels operate business unit levels and take decision making and also in charge of the introduction of their staff customers. Further to Farbey et al. (cited in Ward and Daniel 2006), the procedure benefits are classifieds in to goods and services which any firm provides. The primary target is to get a worthy outcome which is differentiating from other suppliers. Whilst having a good operational benefits and providing it to the customers, the business can gain more benefits while attaining competitive benefits. Also in efficient and support benefits, it identifies certain activities which are support for the key activities which relate to company development of the goods and services.
At the amount of strategy execution, the organizations perform discrete activities - conceiving new ways to conduct activities, using new types of procedures, new technologies, or different inputs. As recommended by Porter (1980), the worthiness string is a organized way of analyzing all the activities a firm performs and exactly how they communicate. It scrutinizes each one of the activities of the organization (e. g. development, marketing, sales, businesses, etc. ) as a potential source of advantage. The value chain maps a company into its strategically relevant activities to be able to understand the behavior of costs and the existing and potential resources of differentiation. All of the activities in the worthiness chain contribute to buyer value, and the cumulative costs in the string will determine the difference between the buyer value and manufacturer cost.
A firm increases competitive edge by accomplishing these strategically important activities more cheaply or better than its competitors. Among the reasons the value chain framework is effective is basically because it stresses that competitive advantages can come from anywhere along the value chain. It's important to understand that how a firm fits into the overall value system and it should include the value chains of its suppliers, channels, and customers.
Porter (1996) creates on his ideas of general strategy and the value chain to spell it out about the strategy execution in more detail. Competitive benefit requires that the firm's value chain be maintained as a system. Positioning alternatives determine not only which activities a company will perform and exactly how it will configure individual activities, but also how they relate to one another. This is essential, since the essence of implementing strategy is within the activities - choosing to execute different activities than rivals. A company is more than the sum of its activities. Further to Porter (1996), a firm's value string is an interdependent system or network of activities which has linked by linkages. Linkages create trade-offs requiring optimization and coordination.
Porter (1986), has describes three choices of strategic position that influence the configuration of your firm's activities:
Variety-based setting - based on creating a subset associated with an industry's products or services; involves selection of service or product varieties rather than customer segments. Makes economic sense whenever a company can produce particular products using distinctive collections of activities. (i. e. Jiffy Lube for auto lubricants only)
Needs-based positioning - much like traditional targeting of customer sections. Arises whenever there are groups of customers with differing needs, so when a tailored set of activities can serve those needs best. (i. e. Ikea to meet all the home furnishing needs of a certain section of customers)
Access-based placement - segmenting by customers who have the same needs, but the best settings of activities to attain them differs. (i. e. Carmike Cinemas for theatres in small cities)
Porter's major contribution with "activity mapping" is to help clarify how different strategies, or positions, can be carried out in practice. The key to successful execution of strategy, he says, is in merging activities into a regular fit with each other. A company's strategic position, then, is comprised within a couple of tailored activities made to deliver it. The activities are tightly linked to each other, as shown by a 1. 3 diagram of kinds. Fit locks out opponents by building a "chain that is as strong as its best hyperlink. " If competitive benefit increases out of the complete system of activities, then rivals must match each activity to get the benefit of the whole system.
Figure 1. 3 Activity Map
Source: Porter, Harvard Business Review (1996)
Porter identifies three types of fit:
simple regularity - first order fit between each activity and the entire strategy
reinforcing - second order easily fit into which particular activities reinforce each other
Optimization of effort - coordination and information exchange across activities to eliminate redundancy and wasted effort.
To manage all these IS/IT strategies within the organizations also to achieve the competitive gain, the management roles are also playing a huge role within the organization. The next section will discuss the degrees of Management roles and how it supports to get the competitive benefit for the business.
To achieve the competitive benefits, the Management levels also contribute greatly. Efficient IS/IT systems permits management to co-ordinate, organise and control with a good plan. It gives information needed for strategic planning as well as for day to day operations. Therefore senior executives, strategic organizers and information system professionals are increasingly looking forward to get the use of IS/IT to attain the competitive benefit. To prove this, there are several explanations in recent trends. Bakok and Treacy (1986), has discovered that the underutilization of IS/IT as a serious problem for both IS/IT as well as for organization business managers. The main reason to narrow down to the IS/IT foundation competitive advantages are older managements ignorance of IS/IT and its potential use and the indegent communications among the groups who handles IS/IT and all of those other business clubs. Also the resistance to improve among both IS/IT and business personal and a lack of emphasis about the opportunities are some serious reasons which organizations are facing.
According to White (2009), there are three different of management levels are included within the management hierarchy. These different levels are grouped as proper, tactical and functional. Regarding to scitation. aip. org web site, when in a proper level, organisations must take care of total demand whilst they acquire new infrastructure, technology or skills. In the tactical level the aim is align resources to enhance customer value in the most profitable way. Operational level, the management seeks to provide reliable delivery performance within source constraints. Getting the balance right between strategic, tactical and operational decisions will have any business powering forward.
According to Gerber (1995), proper decisions play a biggest role available. Its decisions focus typically exterior to the business oriented and its decision making create ahead thrust in the business. This proper business will include the following tips.
What business are you in?
What is your eye-sight for the business?
What's your business' individuality?
What will you are a symbol of?
Which way is the business enterprise headed?
How will the business compete?
Also Gluck, Kaufman and Walleck (1982), have recommended that proper management generally in most companies evolves along similar lines, by differing rates of progress from the basic financial up to overall proper management platform. Also the tactical decisions push management to access the consequences of present decisions and do the changes as needed and to lead company to accomplish it targets.
The second major role is the tactical decisions. This calls for the establishment of key initiatives of the entire strategy. Further to Gerber some examples we can take as, if corporation decided to be the number one provider among the business enterprise competitors, then the company must develop strategies such as implement a marketing system for doing that final result. This tactical decision is the site of any business quest.
Further to Gerber (1995), the next level is the functional decisions which determine how activities actually have finished. This decision is mainly about who is going to do what so when. This includes the following conditions:
How will Company spend their money this month?
How will the company service that client?
What is companies' procedure for delivering an order?
Who will be doing quality control?
If a business is making decisions affecting process and types of procedures, then these can discovered as an functional decisions. Specially operational decisions are made instantly and make quick modification to attain the desired final result.
Also matching to Abdi and Sharma (2007), explained that strategic and tactical management roles are participating in huge role within the airfare operation handling while using information systems. Whenever we consider such an operation, there can not be any small mistake. Even a one incorrect decision will lead to a huge problem in airline industry. Therefore it is very clear that the management decisions are very important when organization deals with IS/IT. As mentioned by Boseman, Phatak and Schellenberger (cited in Vardrajan & Clark 2002), management roles are process with worried about determining the near future direction of an organization and putting into action decisions predicated on the aim to attain firm long and short term goals. Within every firm the type of control changes with the amount of management. Top level management is mainly concerned about the issues which relate with strategic control. The low level management is look after the operational issues.
The following areas present research methods that are employing for this research study.
Following portions present a brief description of few research methods. Also this section explains the reasons to select those methods for this research study.
Case Research Research: According to researcher Yin (1984, p. 23), the Research study research method is defined as an "empirical inquiry that investigates a modern happening within its real-life context; when the boundaries between occurrence and context are not clearly evident; and in which multiple resources of evidence are employed". Also the research study includes observations, questionnaires. Also each company has unique feature and mainly the Case studies are being used to identify such features also to show the way they affect the execution of systems and exactly how it affects the organizations.
Action research: Relating Emroy (1980), mentioned that, like Action research strategy is mainly have to be flexible and versatile credited to disruption in the program and might not meet up with the needs of everyone involved. Also it is not popular or accepted in computing and information systems.
Survey Research: This technique can be used by the researchers when they would like to gather data from some occurrence which is extremely hard to perform a direct observation.
Experimental Research: When we consider the Experimental Method, it's mostly rely upon the tests on a fresh technique or approach and also have to compare the results against those obtained using the generally accepted approach or way. Therefor it appears this research method calls for additional time and the results will vary with each firm (Emroy 1980).
Matching all these attributes of the research methods with this research project, case study is the better research method you can use.
Primary and secondary data should be used because of this research project. Supplementary data will be used find the theoretical aspects of role of management and competitive advantages. As the extra resources, journal articles, books, research papers, online articles and convention papers. To collect data from those released materials, a through books survey must be conducted.
Also to examine the practical areas of the role of management on reaching competitive advantage through IS/IT within the Srilankan Airlines, a field research must be carried out. Factual statements about Srilanka Airlines such as how there IS/IT supports to the business enterprise operation, what is the IS/IT absorption level in Srilankan Airlines and how they supposed to achieve competitive advantages will be produced via the field study.
In the first stage a basic books review has been completed to get the initial facts collection. To the shared materials will be utilized. Theoretical backdrop of competitive edge and role of management will be covered through the books survey. And yes it helps get much wider view of the situation.
To acquire data in the field survey, two methods are likely to use specifically: questionnaire and interviews. Primarily questionnaire will get among large number of workers of the organization and try out get an overview of the situation. As the next step structured interviews will be conducted with the chosen set of staff members. Interviews will get more information to the current situation.
Considering the type of this research project qualitative and quantitative analysis methods have been decided on. Data that derives through the questionnaire will be analysed by way of a quantitative method and the descriptive data will be analysed via qualitative methods. Because almost all of the data that collects for this research project are descriptive. So qualitative method also needs to be utilized. Consequently both quantitative and qualitative methods should be used for data analysis. As the first step to the research, researcher must fragment the fresh data directly into different groups which is often better to analyse. After grouping the fresh data, researcher will be able to arrange those groupings in to some habits and during that researcher can derive the styles and interrelations between data teams. So researcher must keep on with this process till they can turn up the results that was expected from the research.
Analysis steps because of this specific research have been listed below.
Organize the fresh data directly into organizations or categories
Label the categories or groups
Identify the patterns which is often drawn by checking and contrasting the data groups.
Originate the common studies about the problem
Taking common studies in to accounts and make the set of guide lines
Evaluation is categorised directly into two levels. You are product analysis and the second the first is process evaluation.
The product analysis is to check what is sent. Expected out comes has been defined in the deliverables and deliverables are originated based on the research questions. Based on desire to research questions are originated.
All the research questions were formulated based on the aim of this research and studies of this research will be compared with the overall aim if they tally or it is congruent with the entire goal and derive the deliverable.
To check the exactness of the deliverables, the researcher will seek advice from an academic practitioner.
After the completion of the research work, researcher will again check with an academic practitioners help to check the precision of the research work.
To have an effective research, there needs to be a well-planned process. There are many key activities within the procedure evaluation. These are categorizing as Research Technique, Data Collection, Evaluation and Report era. All these receive in below:
The process of this research will be expected to follow which already explained in the portion of technique after seeking the advice from the academics expert.
Researcher has to check the reliability of the gathered data while talk to the advice from an academic expert. Also there will be a study questions test with few people as a pilot run to check that researcher can get the credible answers which helps to success this research work aim.
On conclusion of research work, the research of data will be assessed by academics expert and from then on the report generation also continuously evaluated and verify by the academic expert.
Also to handle a success full research work, the researcher really needs some skills and characteristics and should be able to examine those skills and characteristics while determining the regions of power and weaknesses. As mentioned by Bigam (2008), the bellow chart 1. 2 shows these skills and characteristics.
Figure: 1. 3 Skills and Qualities which really helps to succeed
Source: Bigam (2008), p. 10
Skills and features of the researcher have been determined predicated on the Bigam (2008), skills and characteristics graph. The self-discipline, being attentive, complex levels are up to the acceptable level. However the company and Time-Management skills need to improve. Further to execute a good research work, the researcher has discovered his characteristics such as self-motivation and self-confidence are also up to the standard.