Posted at 12.30.2018
Information technology revolutionizes depends upon in every sphere of life. World has become a global village and you could trade in one part of the globe to the other end. In modern global overall economy, use of information technology is the vital area of the day-to-day business process. Using the developments in the Internet and online solutions difference between traditional marketplaces and electronic market has been narrowed down.
'Information Technology (IT) consists of all the hardware and software that company must use to be able to accomplish its business objectives. This consists of not only personal computers, printers, hand held personal digital assistants, and yes even iPods (where they are used for a company goal) but also software, including the Glass windows or Linux operating systems, the Microsoft office Desktop productivity suite, and the countless thousands of computer programs that can be found in a typical large organization'.
(Laudon et al 2007)
E-business is a term produced from e-mail, e-commerce it is just a activity of a company on the internet where a business can not only buy or sell its products but offers its services to all of those other world. Before few years' organizations are transforming themselves to compete with each other and with their rival. Organizations round the world spend huge amount of money to overhaul their operations and business information system to make quick and well-timed decision for the betterment of the business. The alphabet 'E' before each word changes the complete situation for companies. E-business, e-sales, e marketing, e-procurement, e-banking, e-cad are just few cases.
E-business requires several key activities including improving business processes, improving communication and providing the means to carry out business transactions firmly. E-business is a part of Internet market, which encompasses every one of the activities involved with using the Internet for business. (Hardcastle, 2008, )
E- Business is buying and selling, servicing the customer's communication with clients through Internet. It is about e-transaction since it increases the production and enhances the decision making electricity at right time.
E-commerce is more than just mare orders. It surrounds the extensive range of activities like logistics, sales support.
E-commerce activities can be of pursuing types;
Business to Business
Business to customer
Business to government
Customer to business
(LSBF, SOM Course records L. 11, p. 3)
British airways has a glorious history since 25th August 1919, but in modern form it came directly into existence on 1st Sep, 1974 with the name of BOAC (British overseas Airways Company and BEA (British European Airways). English Airways is UK'S largest premium scheduled air travel with more than 400 destinations around the globe. The primary activities are procedure international and home planned air services for people. It performs form London Heathrow, London Gatwick, London city airport. 878revenue of the BA comes from individuals, 7% from cargo and 5% percent from other activities. British airways gained 6. 7 billion in season 2010.
(English Airways, Article and Accounts to Dec 2010).
History of using information technology in British Airways is very old. In 1991, British Airways put in almost 150 million for it, as it was almost equal to the price tag on two jumbo jets in those days. Core functional activities of BA are flying the customers around the world by retaining the superiority of services with the use of latest technology. BA used the most significant computer of the world
outside the defense industry for the handling of its data. BA can remove data within 2 sec from all over the world. Most distinctive functional strategy is the
core competence of British Airways. Uk Airways understands that information technology is inseparable part of organization's functions. IT is proper tool, which can offer competitive edge on rival organizations. Brand name and value string activities can be critical success factors of the business.
(Source: Financial Times, 8th January 1991, Sunday times business world, 1991)
"All the functions modeled on input-transformation-output process. Each of them have type of changing resources, that happen to be usually divided into 'facilities' and 'personnel' and transformed resources which are some mixture of materials, information and customers. "(Slack, N. 2010).
In suggestions/output transformation model "input" always looses its identity during change process and give output by means of products. Source can be of many forms like material, information, and customers as shown in the picture below. In manufacturing industry output is within real product form similarly in service industry output is within pure services and which are usually intangible.
(Slack, N. 2010).
Operations management in organization like English Airways aren't so simple, there are series of activities to channelize these businesses. The systematic design, path and control of operations that transforms inputs into products for inner and external customers. By channelizing the businesses of a business a supply string can be shaped for better productivity of the product/service, which can ultimately satisfy the client, needs.
Management of operation of British Airways can better understand by the application of Change model.
In BA, aircrafts, pilots, aircrew, surface crew, traveler and freight are the inputs, which changed into output this means service has been offered (individuals and freight carried). During transformation process checking out in of individuals, fly of people and freight, passenger's health care is included.
Fig 1: Type/output Transformation model
For better service, which is the final product of BA, type should be of good quality. State-of-the-art aircrafts, highly professional pilots, hospitable aircrew, polite floor staff and highly dedicated technicians constructed the fine input for best result. In change level timely entrance, quick check in and good quality service during flight change lives that results in up to the level output. Client satisfaction and their reviews bring improvement in these procedures.
Operations management is the activity of managing the resources, which produce and deliver products and services. (Slack et al, 2009)
Success of a business depends upon how its operations are maintained by its professionals. "Operations managers will be the people who have particular responsibility for managing some, or all, of the resources which compose the operations function. Again, in some organizations the functions manager could be called by various other name. For example, she or he might be called the 'fleet administrator' in a circulation company, the 'administrative administrator' in a clinic, or the 'store director' in a supermarket. (Slack, et al, 2009)
In order to achieve the objectives of any company its procedures must be coherent and really should maintain right direction. A English airway is trying to attain its objective in a powerful way by in lining its activities.
Retention and interest of new customers is crucial performance indicator for just about any company. British isles airways understand its importance that's why "THE CLIENT and Operations Professional is in charge of day-to-day customer support, operational performance and guaranteeing the highest standards of safe practices. " (British isles airways, annual survey 2008/2009)
Couple of years back customer relation management in British Airways was very vulnerable as there is a down switch of 2% from 61% to 59% of customer suggesting BA services. (British Airways, annual report 2008/2009).
Innovation in business was very slow. United kingdom airways was didn't target the purchase price mindful customers through low priced airline operations. Baggage handling and punctuality was a constant problem for business category customers.
Challenge: customer connection management for both business and leisure travelers to maximize the earnings was a huge challenge for English Airways.
Solution: business intellect (BI) was the perfect solution is for each one of these problems. Customer relation management, revenue management, airfare punctuality and produce management delivery of information over the whole corporation worldwide was done by business brains.
Different strategies can be used for CRM. Customer segmentation: value centered and need based approach is adopted in this form strategy in which corporation identify the needs of customers and focus on quality value customers which guide them for more investment in that area. CRM initiative development: firm must abandons its fast following approach. CRM effort development plan makes it leader in airline industry. Firm design and management: in this approach employees need to articulate in CRM strategy so that corporation can gain competitive border. (Ibm. com/crm_flight)
In today's competitive flight market, the British airway will move out its CRM software to support its marketing promotions through wider data warehousing perspective (OLAP). Products of BA, which are available in market, it isn't possible to change all those at sudden due to capacity limitation, as routes have to be negotiated and printed 6 months in advance.
Maximization of produce can be performed by setting up a balance between business seats and cheaper leisure fare chairs. The needs of both types of customers are different. Business school customers require occurrence of plane tickets, punctuality and good customer service on the other side leisure travelers want value for money. To deal with this matter CRM steps in through which different offers have been designed to different customers, which meet their needs. Data have been collected from customers travel background; customer profiles and then different offers were made to all customers. CRM used in marketing campaigns may bring all the commercial activity on one platform,
which can finally, improves overall decision-making electricity of an organization
"Knowledge management is a systematic approach of arranged guidelines where data is gathered, accumulated and made common to all or any seeking knowledge and activities to excel themselves to be able to accomplish a communal progress in an firm. "
Knowledge management. 2012. Knowledge management. [ONLINE] Available at: http://www. knowledge-management-online. com/knowledge-management16. html. [Reached 02 July 2012].
Knowledge management can be of two types;
Tacit knowledge can be gained from personal experience, aptitude. It is the way that a person perceives perception. Implied knowledge is also a form of tacit knowledge it resides in individuals and teams. British airways is an old player in air travel industry. Its experience helps to overcome its own mistakes and improve processes. British airways recently altered its 'KIOSKS' system with PC's. Because they think that individuals are more familiar with computers and that'll be easy for them to use and it will save cost for the organization. Tacit knowledge includes the duration of time as it is also gained form best practices and wisdom. It is recordable intellectual property.
Explicit knowledge is an understanding, that can be conveyed to others. It really is a codified knowledge can be moved through dialog, records, media, books, sketching and demonstration. British isles airways collects all the info at counter-top about their customers information. They take customer's issues very very seriously as they know the importance of computer.
Fig 2: knowledge management
British airways always try to keep cordial relation with its customers. BA always appreciate the customers and their feedbacks which been analyzed different departments because of their performance appraisals.
Information technology performs an important role here for knowledge management process. Benefits of new technology at terminal 5 is the sequel of this process. Check in through mobile, e-tickets, online reservation and online purchasing of tickets is part of that process.
Basic purpose of knowledge management running a business especially in e-business is to produce, copy, and apply that knowledge to achieve the corporate aims.
Cost lowering, being systematic in data collection and quick response will be the basic attributes of KMP. In addition it is also a key driver of innovation as product and services are becoming smarter day by day and even more knowledge based mostly.
Terminal 5 of Heathrow airport terminal is the better exemplory case of knowledge management, which was built-in March 2008 to solve the issues of abnormal air traffic. United kingdom airways has prevailed minimizing the air traffic so far.
Fig 3: knowledge management and decision-making.
Knowledge management is main factor in e-business as e-business broadens this is of business. An organization with good control of knowledge of customers, suppliers, competitors, employees, methods and process can operate around the globe confidently through Internet and intranet. Knowledge management is, therefore, a fundamental element of customer relationship management and e-Business.
'The Cumulative of the techniques of a firm is a value string, which is the interrelated group of procedures that produces a service or product to the satisfaction of customers. Each activity in an activity should add value to the preceding activities; waste material and pointless cost should be taken away'.
(Krajewski et al 2007)
Fig 4: British isles Airways value chain analysis.
Value chain processes are of two type's core process/aiding processes. Core procedures are those activities those add value to customer's and encouraging functions are those activities, which give recourses to core process. They are important to management.
Above number can better illustrate the value chain in British isles airways but there are amount of inefficiencies that can reduce the value created by these activities.
Firm infrastructure: large bureaucratic framework within English Airways is making the decision making process very sluggish.
Human source management: matching to British Airways annual statement 2007/2008 opinion review just fascinated 35% people.
Technology office: British isles airways have didn't gain popularity for new invention.
Inbound Logistics: high solidarity between dealer staff and BA employees has created record negative action as BA employees strolled out in equipment employees support for just two days
Operational/outbound logistics: At terminal 5 functional difficulties and baggage handling problems were apparent in early days of Terminal 5.
Marketing: Lack of invention in marketing strategies of English Airways kept him behind the Virgin Atlantic air travel.
A company can have competitive advantages over its competitors through efficient operation management. It happens when company's revenue exceeds from its industry average then it could be called lasting competitive edge. Michal porter from Harvard University founded the ways where a company can get competitive advantage over its competitor. Corresponding to Michel Porter (1985) competitive priorities can be prolonged to wider potential customer by company to get ecological competitive edge. (Porter and Millar 1985)
Cost control: A company can be a cost innovator if it provides its product or services with a less price than its rivals. Cost leader must have economies of level in its functions, access to organic material and usage of technology with an inferior cost. Example; easy jet in UK is cost head nowadays. All the activities of easy jet make it a cost innovator like;
Standardized fleet with zero-maintenance cost
No food during flight
Use of supplementary airports
Use than it to lessen the administration cost
Differentiation command: it is totally different strategy where company's objective is to make its product /services not the same as other rather than to save lots of cost. Differentiation can be of one's services may be of its marketing strategy or may be of delivery system.
(LSBF class records p3)
British Airways feels in differentiation command as it is claimed itself a UK's high quality scheduled airline.
Projects image of luxury and comfort
Comprehensive service and professional attendants
Significant business course capacity.
No doubt United kingdom airways is reduced scheduled air travel of UK but nonetheless there are no. of ways by which competitive advantage can be achieved like better learning resource planning, better quality management, revolutionizing the source chain management. Each one of these operations of your company are interlinked so quite simply inseparable when we discuss the attaining the competitive advantage.
Resource Planning: An improved resource planning can make it possible for an organization to overcome its procedure cost. By which British Airways can enhance it procedures and output. Demand driven tool planning and employees scheduling are very important for success.
Crew scheduling: Dynamics of British Airways are incredibly complex. Complicated, frequent flight arranging with optimal staff planning is vital in this culture. Incorporation of both employees' preferences with corporate targets can give best lead to this sophisticated environment.
Fleet management: British airways are well aware of its fleet management for better services rendering it a innovator in airline industry. Skillful fleet management with optimizing crafts utilization managed to get a innovator.
According to Slack source string in streamlining of information along with product and services.
(Slack et al 2009)
British Airways' competitive advantage is directly link with its resource chain management along with source of information planning. Although English airways is not really a cost innovator in flight industry but at the same time it is responsibility of management to get best out of its source chain.
Customers' devotion with British isles airways is just because they think they give best value for money. So it is very important to reduce the cost for encouraging activities and deliver best from center activities.
Supply chain management and learning resource planning are directly linked to one another for competitive advantages. Pro-active planning is the necessity of the hour. Sophisticated processes of staff planning needs a software solution. Utilization of it, employee's skills, employee's choices work time directives and labor agreements must be the area of the system.
Baggage handling, fueling, cargo handling de-icing, maintenance are core activities in source chain management. Quality in these areas provides competitive edge to British airways.
Slack et al. (2004) dispute that there are five operation performance objectives;
Cost: organization's capacity to provide its services or produce at low priced.
British airways is not cost leader in its industry.
Quality: customer satisfaction with high benchmarks of quality. A United kingdom airway is known for its quality services.
Speed: The capability to do things quickly in response to customer demands. British Airways is high quality airline, which is also called for its well-timed arrivals.
4. Stability: The ability to deliver products and services relative to promises designed to customers (e. g. in a quotation or other posted information).
5. Overall flexibility: The capability to change operations. Versatility can comprise up to four aspects:
The ability to change the volume of development.
The ability to improve the time taken up to produce.
The ability to improve the mixture of different products produced.
The ability to innovate and add services and services.
Fig 5: slack's procedure performance goals.
In order to get competitive advantage it is important to excel in one or more of the operation performance objectives, which can permit organization to pursue, its corporate aims equivalent to competitive factors.
It is really important for an organization how customer value its chosen competitive factor along using its ability of businesses to achieve superiority in appropriate performance targets.
Being a premium scheduled air travel of UK, Uk Airways must maintain steadily its quality in its operation to keep its customers devotion with it along with appealing to the new customers. Quality management is very important as it has a airline flight atlanta divorce attorneys 2 minutes.
Putting people first: British Airways slogan "putting people first" brings huge responsibility on the business as people demand quality atlanta divorce attorneys procedure. Total quality management strategy is inlayed in the culture of BA. BA deals its employees as inner customers as they raise slogan "we journey to serve" every office in BA is model of excellence quality management as anatomist department comes forwards with slogan "engineer brilliance".
Food services: food services have a robust impact on customer's thoughts and recollection of flight. English Airways adjusts its food formulas in accordance with geographical places.
Fig 6: operations performance goals and competitive factors.
Due to this quality management English Airways is performing well as it manages increase in its revenue up to 13% and 12% in each subsequent year at exactly the same time it handles to maintains 4th position in world's airline ranking which includes 41% show in North Atlantic market with move forward fleet strength and enormous customer care program.
Capacity management is an activity when a company attempts to bridge the gap between demand and offer demand. Capacity is a capability to meet up with the needs. Difference between demand and offer could be credited to fluctuation between either of these. (Slack et al 2010)
Insufficient capacity with no planning can deteriorate the company's performance at the same time excess capacity could cause extra cost which in the end leads to affect the organization's efficiency.
British airways capacity planning department is trying hard more recently to take on the huge influx of folks in London olympics2012. they are trying to get best out of their existing capacity at exactly the same time trying to get extra in order to meet up with the customer's demands. English airways is wanting to rescheduling all its activities so that they can reduce the unpredicted delays, introducing self applied service check in service to save time, lowering the aircraft check-up time without compromising quality. At the same time marketing office of BA is modifying the requirements promoting the leisure tourist in order that they improve the efficiency.
E-business is very popular in airline industry because of its multitude of procedures benefits. It is cost saving scheduled to decrease in paper deals. It speeds up the communication due to usage of information technology.
Supply string: E-business improves the supply chain efficiency by giving real-time information regarding flights, monitoring of cargo etc. it web links the customer's demand information to up-stream resource chain function effectively consequently facilitating 'move' (demand driven) supply chain operation.
E-business being a tool of e-commerce makes it "mass customization" which gives a leveled playing field for many companies. A large no of companies are adapting e business procedure, as it is user friendly for customers in this modern age.
British airways recently changed its 'KIOSKS' system of check together with 'Personal computer' system as it is user friendly and can save 3. 5 per traveler every time he will check in by using this technique.
In modern times, e-business has become a basic element of all business strategies. It is widely transforming business approaches and business procedure as there are no geographical boundaries because of this approach.
Following are the benefits of e-business in British airways;
Cost lowering: E-business plays a significant role in overall cost reduction of a company as it sensibly reduces the newspaper transactions within the company.
Swift communication: use than it in e-business can help you communicate with other parties electronically, making the communication faster than ever.
Sales: E-business brings revolution in advertising strategies of an organization. Now a person can go directly to Uk Airways site and can buy ticket straight form site rather than heading to agent to buy. By this process a person can save a whole lot at exactly the same time British airways has nothing at all to pay to travel agents.
Timeliness: Correct information at appropriate time can provide potential competitive border to any business. In English Airways information regarding journey arrivals and departure and online arranging of tickets with discounted rate make it important to get all the information at right amount of time in well-timed manners.
E-business is a hot cake for each industry in this modern age but despite of the actual fact there is still number of issues regarding e-business those have to be solved to get best out of it.
Some of the issues are following;
Timely processing in every field
Lack of understanding
Concern about security of hypersensitive data, such as credit-based card amounts, personal data and business confidential data.
There are still many issues regarding e-business those have to be sorted out because 'cyber war' is certainly going on, on internet in which hackers harm on organization's website to grab private data regarding their credit-based card information, break of other important private information.
"Cisco could help us towards a fresh way of taking a look at our inside world. A means that won't only have deep effects upon our culture, but will also drive through huge improvements in our business efficiency. "
(Simon Harford, Brain of eBusiness, British isles Airway)
British airways desire to be undisputed leader in the world of air travel. United kingdom airways directors are aware of this desire so they are striving hard to get value form IT.
CISCOS come up to solve this issue for British Airways. Cisco made BA a 'web allowed' air travel by expanding the possibilities and lowering the risks. Cisco's system information business solution group accelerates the accomplishment of that target. (Cisco. com)
British airways have achieved a milestone of boosting its customer services up to cargo services. United kingdom airways is deploying it to provide its customers best services for cargo. United kingdom airways uses EDI (Electronic Data Interchange) technology for receiving and transmitting airway expenses. Computerized notification technology is also used in combination with track and trace using barcode information system. BA is person in cargo 2000, which is group of airlines forwarders, sponsored by IATA whose goal is to improve efficiency of cargo around the world. (Baworldcargo. com)
E-business has improved what sort of companies are run in today's world. It really is useful but still has some gray areas that need to be set.
Issues like the security flexibility, cost problem tolerance, timely control etc discussed previously are the reasons why organizations are unwilling to work with e-business. These issues have to be dealt with so that e-business could be of real worthy of to the businesses.
Financial issues could be addressed by government involvement by giving subsistence to the firms to introduce e-business. Security issues are among the most crucial issues as advantages of IT comes with security. Companies are reluctant to use e-business because it poses menace to the security with their confidential data. Security issues could be settled using anti infections. Laws should be placed in spot to reduce cyber crimes and data robbery.
All the data should be noted so that the amount of newspaper used could be reduced. This might be beneficial to the environment and the company would be observed to be eco friendly.
British airways uses electronic media to contend on the basis of differentiation while they could also use it to reduce cost. This would imply that BA might use mixed strategy. For example: Dell uses combined strategy to compete they provide good quality at cheap prices.