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Contemporary Issues in Business: Virgin Trains - Case Study Example

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In 1993, it was governed by the British Rail as railway industry was not privatized in that era. Since 1997, Virgin trains have been operating independently in a private sector under Virgin Group…
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Contemporary Issues in Business: Virgin Trains
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Contemporary Issues in Business – Virgin Trains Contemporary Issues in Business – Virgin Trains Introduction “Virgin trains” is a train company that operates today under Virgin Group. In 1993, it was governed by the British Rail as railway industry was not privatized in that era. Since 1997, Virgin trains have been operating independently in a private sector under Virgin Group. Also known as West Coast Trains limited (WCTL), Virgin Trains offers its services on the West Coast Main Line (WCML) franchise that includes London, Scotland, North Wales and so forth. Virgin Trains is known for its reliable, fast, and quality trains not only in the past but today as well. Moreover, it is now considered to be one of the most trustworthy and experienced train companies operating in Britain (Virgin Trains. 2005). Technology Used by Virgin Trains Virgin Trains is a perfect example of a business organization which has made use of technology in the most efficient manner. It has employed quite a few types of technologies to improve its areas of functions. Tilting technology employed by Virgins Trains has resulted in tremendous amount of boost in speed, thereby considerably reducing the journey times between different places on West Coast Main Line. Virgin Group is making the use of tilting technology in all of its upcoming models. Virgin Group has signed a contract with ALSTOM Transport, a French multinational company, to manufacture tilting trains for the West Coast Main Line. Virgin Trains also uses another interesting and highly interactive technology of Wi-Fi that allows passengers to swiftly access wireless internet on their laptops or electronic handheld devices while travelling on the train. In addition to that, Virgin Trains has opted for GOSS iCM (Intelligent Content Management) as its Web Content Management System. The installation of this intranet system has facilitated the utilization of Web 2.0 Applications which provides information related to weather, signals, train departures and arrivals. Virgin Trains has also been successful in developing a hi-tech system on its trains and stations such as Birmingham New Street. This system comprises of boards which display the departure and arrival times, and get automatically updated through the tracks on a live basis, thus exhibiting the effectiveness of Real Time Technology (GOSS, 2012). Impact of Technology on Virgin Trains When Virgin Trains executed its first project of implementing tilting technology in Advanced Passenger Train, the news promulgated around the world and the company’s status enhanced with the word of mouth marketing done by the passengers. This technology also helped Virgin Trains in enhancing its relationships with Fiat Ferroviaria and ALSTON, the two gigantic corporations that had formed a mutual enterprise to supply tilting services to the models of Virgin Trains. They completed their first project of Virgin Trains which was quite a huge success for the company and at the same time proved a strong opponent against other high-speed trains in the country (Lagandijk et al. 2005). Use of wireless internet over the board has also enabled Virgin Trains to mark out their separate identity and has also proved to be a way of gaining greater market share by targeting business travellers who find this service very useful (BTN, 2011). The decision to setup Web Content management System (WCMS), which functions as an interactive Intranet has instilled the company with the components of social networking. In this manner, the improvements made in the online availability of information have certainly yielded positive results for the company. The transfer of data to the online system has resulted in more efficient use of time and resources for the organization with reduction in paper consumption and red tapes as well. There were several technical issues particularly related to communication associated with the traditional legacy notes system of Virgin Trains. However, the installation of the new intranet (WCMS) has had a significant impact on Virgin Trains, as the in-house communication with the staff has become more prompt with data being stored and transferred from a central hub. Moreover, the development of departure boards which get updated on a real time basis has also enhanced the reputation of Virgin Trains as a company which believes in utilizing latest technology to facilitate its customers. Thus, the overall impact of using technology has been quite beneficial for the company. Need and Utility of Technology Virgin Trains have achieved a great deal of success through the use of different types of technologies. They have primarily employed it to speed up the overall functioning and performance of the business activities. Virgin Trains’ use of tilting technology is considered to be very strategic and sensible, in terms of the fact that West Coast Main Line is generally considered one of the most significant routes of Britain. With Virgin Trains already having an edge over its competitors for operating on West Coast Main Line for over decades, investment in technological advancement was irrefutably an invaluable step. Today, having built even a better technological system; the company is marked for its high frequency of departures from station to station, top-notch speed and superior reliability. Wi-Fi Internet access is another splendid piece of technological application which was brought in as it has become a necessity for the passengers. Moreover, the company took the innovative decision of coming up with an advanced version of the intranet to develop a flexible and valuable site which would cater to the growing issues of information exchange. Along with that, the installation of live departure boards is also regarded as a significant use of modern day technology, aiming to facilitate customers. This has set Virgin Trains on a pathway to dominate the Britain Railway industry. Since the company’s performance over the last decades has already been radiant, these technological up gradation efforts have further boosted the company’s image. (The Sun, 2009). Advantages of Technology for the Company and Customers Technology has proved to be quite useful not only for Virgin Trains but also its customers. A market analysis of Virgin Trains suggests that Virgin Trains use cutting-edge technologies to provide all the necessary services to their customers. Tilting technology has reduced the distances by speeding up the journey which means that customers can now reach their destinations more conveniently and more quickly. This has automatically caused a rise in sales for the company. The Wi-Fi Internet has resulted in passengers being able to login to their accounts, check their e-mails, surf the web, download video clips, and so forth to make their journey more vibrant and interactive than ever before. Virgin Trains also offers an easy and convenient method to download pocket timetables directly to your iPhone, Android or Blackberry smart phones. This feature has acted as a marketing agent for the company, enhancing its revenues tremendously (Pfanner, 2008). In addition to that, the user-friendly online system of the company which offers minute to minute updates about departures, arrivals, platforms, train delays, weather hazards, signal issues, etc. has enabled the customers to gain information sitting at their homes. Similarly, the hi-tech departure boards connected with track updates are no less than a boon for the customers. Consequently, the advantages of technology for the customers have been mainly in relation to comfort and time saving whereas for the company, the advantages have been differentiation, greater market share and increased revenues. Virgin Trains have received a prestigious award of “The best in class” among companies operating long-distance rail franchises, and customers have reported over 89% satisfaction with their services. It is mainly because of their technology which has provided them with better dealings with delays while higher frequency of train departures. Another advantage to the customers using Virgin Trains services is their finest car parking facilities as it has alone boosted customer satisfaction rate by 13%, indicating that the they don’t leave out any aspect of the customer relationships that would hinder their progress (BTN, 2012). Business Processes and their Execution Virgin Trains has always looked forward to provide effective yet efficient services to its customers, therefore they ensure that their business processes run as smoothly as possible without any inconvenience. The business processes of Virgin Trains largely circle around communication internally as well as externally. Internally, communication with staff is one of the most vital business processes for the company in order to exchange information quickly so that the operations pertaining to the train are run in a smooth manner. For this purpose, from front line to executives, every person is involved. Likewise, communication with customers is another integral business process for the company. It is through this process that tickets are fixed, schedules are confirmed and ultimately revenues are received. The addition of tilting technology meant that Virgin Trains had to redesign their business processes to continue without any halt. Today, with a combination of superior technologies consisting of intranet, Wi-Fi, online system, departure boards and Tilting Technology, the business processes have become far better than what they used to be before, with more emphasis on examination of the situation and needs of the customers. Virgin Trains’ management of business processes is so professional and organized that it has also earned an achievement for reduced energy consumption. Despite being a rail company in which use of energy is very high, Virgin Trains has properly managed energy consumption at all levels of the business (BTN, 2011). Thus, the efficiency of the business processes that Virgin Trains use, range from analysing the situation to implementing, monitoring, and automating the processes. Emerging Trends of Technology Virgin Trains actively takes notice of most of the latest technologies and opportunities that have been introduced in the market. The company has always shown interest in making the best use of technologies. It has already equipped its models with high-end wireless internet services. In 2012, Virgin Trains is expected to introduce 3 new trains and 62 more carriages. The focus is to make use of newer technologies as they develop, especially AGV technology, in order to further augment the speed of the trains and thereby supply faster and consistent services to customers (Alstom, 2012). Virgin Trains has put a special technology to test in its models which is known as Swipe Card technology. Virgin Trains expects this technology to greatly reduce inconvenience caused due to manual ticket purchases by offering a very simple, uncomplicated approach. It allows passengers to swipe in their card at arrival and out at departure to pay for the ticket. The technology has only been implemented in some of their models for testing purpose as there are very few passengers making use of this system at such a preliminary stage. Their purpose is to see whether this technology really adds to convenience because the old, manual system of ticketing is comparatively intricate. It is often seen that people are initially resistant to any form of change and only accept any new item after analysing its pros and cons. The technology is still under testing at Virgin Trains and no conclusion can be drawn about its effectiveness yet since it might take considerable amount of time for the passengers to switch to better alternatives (Staffordshire 2011). However, Virgin Trains should look forward to bring continuous advancements in technology as this measure has always provided the company with a competitive edge in the market and would possibly continue to do so in the future. Bibliography ALSTOM. (2012). With 1100 trains sold worldwide and the AGV due to enter service in the near future [online] Available at: http://www.alstom.com/press-centre/2011/11/india_newsandevent_press_release/ [Accessed on 15th March 2012]. BREAKING TRAVEL NEWS (BTN). (2011). Virgin Trains launches pocket timetables direct to your phone. [online] Available at: http://www.breakingtravelnews.com/news/article/virgin-trains-launches-pocket-timetables-direct-to-your-phone/[Accessed on 15th March 2012]. BREAKING TRAVEL NEWS (BTN). (2011). Virgin Trains is best in class again. [online] Available at: http://www.breakingtravelnews.com/news/article/virgin-trains-is-best-in-class-again/ [Accessed on 15th March 2012]. BREAKING TRAVEL NEWS (BTN). (2012). Virgin Trains recognized for reduced energy consumption achievement. [online] Available at: http://www.breakingtravelnews.com/news/article/virgin-trains-recognised-for-reduced-energy-consumption-achievement/[Accessed on 15th March 2012]. GOSS (n.d.). Case Study: Virgin Trains [online] Available at: www.gossinteractive.com/CHttpHandler.ashx?id=1308&p=0 [Accessed on 15th March 2012]. LAGENDIJK, A., & OINAS, P. (2005). Proximity, distance, and diversity: issues on economic interaction and local development. Aldershot, Hants, England, Ashgate. Pfanner, E, (2008). Trains in Europe offering Wi-Fi. The New York Times, February 10, [online]. Available from: http://www.nytimes.com/2008/02/10/business/worldbusiness/10iht-trains11.1.9898679.html[Accessed on 15th March 2012]. Staffordshire (2011). Swipe card technology goes on trial at train stations [online]] Available at: http://www.thisisstaffordshire.co.uk/Swipe-card-technology-goes-trial-train-stations/story-12537016-detail/story.html/[Accessed on 15th March 2012]. The Sun (2009). Glasgow to London from £8.75 . The Scottish Sun, 30th Jan, [online] (Last updated 8th December 2009) Available at:< http://www.thescottishsun.co.uk/scotsol/homepage/news/2760642/Save-s-on-Virgin-Trains-with-The-Scottish-Sun.html> [Accessed on 15th March 2012]. Virgin Trains (n.d.). About Us [online]. Available at: http://www.virgintrains.co.uk/about/?WT.mc_id=VTCAMPAIGN00000888 Read More
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