British Airways: E-Business Analysis - Case Study Example

British Airways e-business analysis Contents Contents 2 Introduction 3 The company’s B2B 4 British Airways Web Designs 5 relation management 5 Knowledge management 7 E-Business in the Cargo industry 7 British Airways operation management 8 Advantages of e-business 9 Recommendations 10 Conclusion 10 Bibliography 11 Introduction E-business is one of the products of advanced technology in this current generation. E-business is the application of internet networks and web technologies to transact various businesses without necessarily physically commuting to such destinations (Yahoo Finance, 2013). The technology consolidated basic elements from the traditional market to electronic market which is not only easily manageable also accessible. E-business comprises of software and hardware to enable a certain firm or business achieves its stipulated goals and objectives (Cox, 2008). The main hardwares are the printers, personal computers, tablets and ipads among others. Software on the other hand includes the operating systems like Windows or Linux, the search engines like Firefox among others. British Airways is one of the companies whose achievements are heavily associated with e-business. The company has well managed interactive websites through which customers can do inquiries and even book their respective flights. Advantage of e-business is that it has tested business modules that are followed or act as guidelines to ensure the business or companies do not go wrong (Brown, 2010). Internet and web technologies produced the e-elements like e-business, e-banking and e-shopping among others. These have solved majority’s business hurdles. British Airways spent an estimate of 150 million pounds to install its Information technology; this could purchase two jumbo jets during the era. Since that time, the company’s core value is to fly its passengers around the world while ensuring their overall comfort through the most advanced technologies. According to "British Airways Plc Report and Accounts year ended 31 December 2012 British Airways has beaten its competitors through its sophisticated advanced technologies that suit passengers needs. The company’s annual revenue has been on accrued increase trend since the company adopted the e-business strategy among other changes. In 2012, the company had total revenue of 10,827 million pounds and 9,987 million pounds in 2011. This just indicates the accrued increase in the company’s revenue. It means the company had an increase of 8.4% in its total revenue between the business years, something not easy to come by in this current economy. The company generated 9,499 and 8,721 million pounds from passenger services and 737 and 739 million pounds from cargo services in 2012 and 2011 respectively. There was increase in passenger revenue and drop in cargo revenue in the two years. The increase in passenger revenue could be attributed to factors like improved management, customer relations, and improved technology which are all contributed by the company’s e-business like online marketing, bookings, transactions and customer relations among others. discourse is analysis of British Airways e-business The company’s B2B Back to back in business means the companies relation to fellow business. British Airways has partnered with related companies to achieve their goals. For instance, the company leas with various cargo handlers to ensure passengers receive their cargo in sound state as they come out of their respective flights. The company helps the cargo handling companies to track the movement of such cargo through sound technologies under its patent. Furthermore, British Airways leas with electronic money transfer companies to enable the passengers pay their charges without necessarily commuting to the airport. British Airways usually have small tokens to such companies should they reach certain targets. British Airways Web Designs British Airways being one of the leading international companies have an active web site, meaning there is immediate response through the company’s web site. The company can register its passengers and enable them pay through such websites. British Airways leas with other online companies like PayPal among others to enable online transactions. The websites also enable the company communicate with its customers among other stakeholders, for instance, one can inquire about tenders, flight schedules, job vacancies and any other relevant changes within the company. The web sites however has various passwords to ensure the company’s and customers’ privacy. Customer relation management Any business must find the most effective ways to attract more customers and maintain them. British customer relation management is regarded one of the best in the entire universe according to "International Business; British Airways Ousts Chief after Four Tumultuous Years, the issue of accountability of customer relation was stressed in various subjects. Furthermore, the issue appeared in the 2008/2009 annual report, where the company planned to raise the standards of its customer relations. In 2008/2009 financial year, the company loss lots of customers to other airlines as the company had a poor customer relation management. According to the British Airways financial records for 2008/2009, there was a turn down of 2% and this was a clear reflection of the company’s poor customer relation management (Marks, 2007). Various customers complained of poor communications and delayed responses among other elements discouraging their relationship with the company. The company’s innovation strategies were poor as British Airline could not attract the price customers by coming with economical feasible ways to subsidize the airline charges as its marketing strategy. Majority of business class passengers complained of the company not keen on punctuality and baggage care. The biggest challenge in this scenario is that the company had poor customer relation management to both leisure and business passengers and this resulted to reduced revenue. The company held different meetings with different stakeholders and experts to reverse the situation. The solution was that the company had to initiate business intelligence (BI) System. The system was to monitor the current Customer relation management, flight punctuality, revenue management as well as yield management and better them. Various computer models were used to better the company’s customer relation management (Thomke, 2006). Customer segmentation has proved to be of great importance in the company’s operations. Customer segmentation monitors the customers’ trends through the kept records then the divides the customers into two main groups, namely, value based and need based customers. The company then targets the customers with the highest value. The company has applied customer relation management in the recent years and its revenue has increased compared to the previous financial years. British Airways developed customer relation management software that handles its marketing strategies among other company’s elements. However, the changes in the airline market are not sudden due to capacity restrictions and need to inform the relevant authorities any plans to change the routes. The company also realized the need to handle business and leisure passengers differently. British Airways applies various computer programs to ensure punctuality, prompt responses to passengers’ queries and effective booking websites among other elements to improve customer relation. However, for leisure passengers, the company ensures comfort and hospitality (Schmenner, 2004). Knowledge management Knowledge management entails data collection, manipulated and accrued to help in decision making. Such information also contributes to the communal growth of the company. There are two basic types of knowledge management namely tactic and explicit knowledge. Tactic knowledge is attained from individual’s experiences. British Airways has been in the market for a longer time and its stakeholders’ experience is helpful in any decision making. British Airways installed computers in almost every department since the company believes its employees are conversant with computers’ operations. Explicit knowledge on the other hand is that passed to others. The message could be coded and passed by the use of documentation, drawings, logos, dialog and videos among other ways. British Airways employees take time to ask their valued customers any complains or problems they experience. The complaints are then recorded through some standard codes for future analysis. British Airways uses various Information technologies to ensure effective knowledge management to enable it achieve its corporate goals (Cook, 2007). The system could also come with various business strategies like cost reduction to see the company increase its revenue. E-Business in the Cargo industry British Airways applies numerous Information Technology to satisfy its customers’ cargo needs. For instance, it uses Cargo Data Interchange (EDI) technology to receive and send airway bills (George, 2007). Automated notification technology used in conjunction with track and trace technologies to notify responsible authorizes arrival and departure of some sensitive cargo. The information is then sent to relevant customers. Furthermore, British Airways is part of the Cargo 2000, currently managed by IATA to ensure efficiency and accountability in the cargo sector. British Airways operation management For bookings among other operations, the company has well established and managed websites to help the passengers’ book their flights without having to drive to the company. Furthermore, cargo customers can also book for their cargo then pay depending on the bulkiness and sensitivity of the cargo. The websites are interactive meaning the customers get prompt responses. The websites has proven to be cost saving to both the passengers and the customers in various ways. The customers do not have to spend their resources and time commuting to the company to secure their flight seats. To the company, it has few employees who monitor the activities in the booking websites. British Airways has also partnered with electronic money transfer agencies to enable their customers make payments without necessarily driving or commuting to the company. British Airways revenue has increased since it first introduced online bookings. Customers responded positively ad this saw the company increase its business and leisure passengers. The websites are easy to use and could be accessed through ipads and smartphones among other portable gadgets. The websites are also well designed to help in capacity management. For instance, the company can compare the demand (available passengers) and supply (seats available or airline capacity) and make the most appropriate decisions. More demand will mean the company has to expand its capacity while high supply means the company must improve its marketing strategies. The websites are incorporated with digital elements to warn the passengers in case there is no more capacity and this enable them book the next flights or take other alternatives. Since the company upgraded its websites, there has been no serious complains of confusions or mix ups whatsoever. For instance, the company used the websites to plan for more demand during events like Olympics and world cup among other serious tournaments. Furthermore, the company installed self service check facilities to limit delays among other limitations in the facility. Advantages of e-business Following the financial records, the company has benefited a great deal from e-business. First, the company’s operations are effective and fast. The information technology are tested and approved to bear no serious error. For instance, online booking is fast and effective to both the company and the customers. Online booking also cuts on unnecessary costs to the company and the customers and this have seen the company attract more customers. Online booking is also ideal in this current generation where at least everyone owns communications gadgets with internet connections. E-business ensures prompt communication between the customers and the responsible company’s employees. Communication is very vital in the flight industry since people have missed their flights by seconds due to poor communications. Some customers need to be reminded of their flight details, more so the handicapped and the old adults who are generally slow. E-business plays great roles in marketing the company. For instance, one can simply log into the companies websites among other online sites and book their flights, make inquiries and learn more about the company among other activities. This in turn reflects in the company’s revenue as the more people know of the company’s activities, the more the passengers hence the revenue (Cravens, 2009). E-business also ensures reduced employees as a few qualified and experienced individuals can run the company’s websites and this means reduced wages. However, e-business have few challenges for instance it is only productive in developed areas where at least everyone can access internet connections and have the required knowledge to access online services. E-business does not support work place diversity as it ensures only a certain caliber of workers can be employed to manage the information technology behind it (Holland, 2007). Poor work place diversity could compromise stakeholders’ relations which could further limit the company’s productivity. Recommendations British Airways is based in a competitive business location hence it must apply feasible operational and marketing strategies to beat its competitors. It is evident that the company’s e-business is not at par and more should be done to attract and maintain more customers. For instance, it is alleged that the company’s decrease in revenue is associated with the company’s poor relations and commitment to the low class passengers (Champoux, 2008). The company could come with websites to cater for the low class passengers just as the high class business passengers. The company could also incorporate more IT in the human resource management to ensure increased productivity in the company. Conclusion E-business is an aspect there to stay, if anything there to evolve to more sophisticated details. We live in a digital generation where one can simply book his or her flight by a single click. British Airways is set to increase its revenue when it upgrades its e-business elements. However, comprehensive studies should be conducted to ensure all IT implementations are financially feasible. 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