Organizational Information System - Case Study Example

Case Study: Organizational Information System [Name] [Professor Name] [Course] [Date] Introduction Based on the evidence provided by the case study, the experience of the Atlanta-based airline and London-based airline illustrates interdependence of business strategies, business processes, business environment, and application of information systems. The two airlines had different business strategies and approaches to using information systems, which meant a thin line between Professor Mcpherson’s satisfaction and dissatisfactions. Atlanta-based airline focused on creating synergies in its business processes using information systems. Indeed, the case illustrates the role of business information systems in coordination of business operations. Case analysis As noted in the case, Information technology facilitated flattening of organizational hierarchies at Atlanta-based airlines. It pushed the right to make decisions to the lower-level staff (gate agents) in London, allowing them to receive information they required to make decisions on how to connect McPherson to Frankfurt. Atlanta-based airline’s operation in London also received more accurate and timely information than London-based airline. This enabled it to make faster decisions leading its staff to relieve Professor McPherson of his London-to-Frankfurt ticket and London boarding pass and to issue him an Atlanta-based airline ticket. From critical analysis, Atlanta-based airline used information systems to beat competition from London-based airlines by increasing the value of its services in the eyes of Professor McPherson. In this, regards, Information systems, which is made up of the management, the airline (organisation) and technology, allowed Atlanta-based airline to do away with redundant systems and to improve business processes. Ultimately, it was able to overcome competition from London-based airline and to increase overall sales (See Figure 1). Figure 1: Information system and values to Atlanta-based airlines Customer perceptions From the beginning, Professor McPherson made several assumptions on information technology support at the London-based airline. He had expected that since London-based airline operated in a networked age, it would rely on information technology (through networked and connected computer systems) to create a fast-paced environment for customer management and operations management. Professor McPherson also supposed that London-based airline had leveraged hyper-connectivity to reinvent customer experience. He was therefore of the view that London-based airline would bring value to customers through high-velocity data capture, data discovery, and data analysis. For instance, the airline flying to London should have accessed his profile from their information system as a close-connecting passenger. In the networked age, he believed that the airline had real-time systems that analysed and evaluated data instantaneously regarding what is happening in affiliated airlines to enable them to respond to customer needs fast. However, Professor McPherson’s expectations were unrealistic for the technology environment of the mid-1990's since the London-based airline had not realized the likelihood of local, social, and networked interactions to expect increasingly personalized airline services. Additionally, the mid-1990s had not yet been transformed into an intelligent economy. For this reason, the airlines were still incapable of producing a stream of data constantly analysed and monitored. Customer expectations Professor McPherson's expectations were different from reality. The London-based airline had established a reputation for quality service. To Professor Mcpherson, this implied that the airline would be reliable in terms of speed and connecting flights. Therefore, the issue of service quality led to the discrepancy between his normative expectations of the airline services and the reality of the service performance. Additionally, he had a full-fare first-class ticket, which to him implied that paying large premium meant he would not miss a connection. Professor Mcpherson knew that the airlines must have improved their services in the network age. Since a decade ago, he had experienced quality service. Indeed, he remembered that he had been helped to connect a flight to New York, on his way from Milan to London, after a bad weather. In the network age, he believed the airline had improved its services, and he would experience superior service compared to what he had experienced earlier. Therefore, he expected the airline to have known he had checked no bags through, and was therefore eager to earn his $2,500 fare. However, this was not the case. London-based airline should also have provided quality service in terms of quality as value, quality as excellence, quality in terms of meeting expectations of the customers. It could be reasoned further that excellence as quality is evident in the fact that the London-based airline should use state-of-the-art technology based on the ‘best practice’ technology standards to ensure ‘error-free’ performance. Quality as value is also relevant since Atlanta-based airline will need to use user-friendly technology, which also provided value to the customers, as well as to the organisation as it promoted customer loyalty. Quality in terms of conformance implies the airline should design technologies that conform to the information needs of the end-users. When it comes to quality in terms of meeting the expectations of customers, the London-based airline will need to use technology that offers appeal to the customers, user-friendly customers, as well as responded to the customer requests, while at the same time satisfying the needs of diverse customer groups. Difference in the two airlines’ approaches Atlanta-based airline's approach and that of the London-based airline were different from the start. Unlike the London-based airline, the Atlanta-based airline used an information-centred approach. On the other hand, the London-based airline failed to deliver information in time and to conform to customer needs. This made Professor McPherson to become dissatisfied with the airline’s services. In fact, the information the London-based airline provided to its airline personnel did not conform to the needs of the users. For instance, it did not identify him from their information system as a close-connecting passenger. The London-based airline failed to structure its information system strategies to suit the businesses effectively. This led to poor customer service delivery. Additionally, the airline did not give priority to information quality, information service quality and improved information technology. On the other hand, Atlanta-based airline prioritised information quality, information service quality and improved information technology. This gave it special advantages as it ensured continuous improvement of service quality and commitment to providing timely, reliable, and quality information. The London-based airline failed to align its information technology strategy with its business strategy. Hence, there was a communication lapse between its personnel in Atlanta and London. In contrast, Atlanta-based airline had a special advantage in terms of time delivery of information. The information also conformed to customer needs. These enabled the airline to offer its customers satisfactory services. In return, it benefitted from customer loyalty and positive customer reviews, – such as from Prof McPherson. The London-based airline failed to improve the capabilities of its information system, despite operating in a networked age. However, Atlanta-based airline had improved the capabilities of its staff and IT infrastructure, which ensured improved service quality and information quality. It must have had a special advantage in terms of benefitting from good quality of information system as it had up-to-date information system. Recommendations London-based airline should improve its process of managing of information system. As noted from the case, timely delivery of pertinent information enables a business to respond to customer needs in a timely fashion. Indeed, this is what happened to McPherson after he was left out by the airline’s plane despite arriving 7 minutes ahead of departure time. The management of the London-based airline should structure their information system strategies to suit the businesses effectively. Any action the management takes to improve information service quality will ultimately lead to improved customer service delivery. However, the poor information system has only managed to make customers less satisfied with the airline’s services. Professor McPherson made it to the airport by 5:58pm, minutes ahead of time. Right then, the plane was pushed back before agents came up and booked him onto the next airline that was to depart 1 hour and 45 minutes later. McPherson became angry, regarding the services, and concluded that there was poor service despite the network economy. Additionally, he began to see technology as being merely small instrumental piece of total service concept. The airline’s management should also develop a mechanism that is instrumental in continuous improvement of service quality and committed in providing timely, reliable, and quality information across the organisation. The management should also align information technology strategy with business strategy using data mining methods to promote business intelligence and better and timely decision-making. Once the business strategies are linked to IT strategy, London-based airline will be able to design its information output to offer information that improves the effectiveness of the organisation. Data mining and warehousing methodologies will offer pertinent information to decision makers, as a result improving decision-making. The management should also improve the quality of information system in order to improve the quality of information. It will need to lay emphasis on procurement of up-to-date software and hardware, and well-documented systems. The management should also improve the capabilities of its information system (including the IT staff in its airline’s hubs and its IT infrastructure) to ensure that the service quality and information quality is improved. Conclusion Atlanta-based airline leveraged information systems to beat its competitor in the eyes of Professor McPherson by increasing the value of its services. In this regards, Information systems allowed it to do away with redundant systems and to improve business processes. Eventually, it managed to boost customer confidence and loyalty. From the outset, Professor McPherson assumed that the information technology support at London-based airline should have embraced a network economy to provide quality service in terms of quality as value, quality as excellence, quality in terms of meeting expectations of the customers. Hence, it should have used state-of-the-art technology that provided value to the customers, conformed to the information needs of the customers and staff elsewhere, and responded to the customer requests. Read More