A Tale of Two IS Projects. JetBlue and WestJet - Essay Example

? A Tale of Two IS Projects A Tale of Two IS Projects Introduction Information technology systems which are part of the globalized world business have always remained important for service firms. Firms like airline companies are much dependent on the information technology setup which enables them to make their business conductive and directional. This paper is on focus of two of the leading airline firms “JetBlue” and “WestJet” in order to understand the significance of information technology in the firms’ service operations. The aim here is to touch the IS (information system) projects which have been taking place in both of the airline organizations. Importance of Reservation System in WestJet and JetBlue For airline companies like JetBlue or WestJet, the importance of the reservation system is like a heart to organizations’ operations giving stimulus to each of the organization sections. An airline company which is settled on a larger scale reservation system is directly necessary to the business operation of that company (Laudon, 2013, pp. 556-557). Ability to book flights or dealing customers with time effectiveness comes directly from an effective reservation system and for that reason organizations like JetBlue and WestJet emphasize on keeping their reservation systems upgraded. Similarly, fares or inventory record management, data processing and management and information management is all what is conducted through an active reservation system (Laudon, 2013). For that reason, JetBlue and WestJet both organizations try to induce their systems with a proactive and comprehensive approach. If the systems are not proactive, there are more chances that a lot of informational operations get weakened affecting the overall business of the company. This clears out the significance of a reservation system in a transnational airline organization (Laudon, 2013). Key Risk Factors on Upgrading Reservation Systems (JetBlue vs. WestJet) For a firm like WestJet which captures forty percent of the Canadian market share by taking 300 to 400 flights each single day, it is a complete challenge to upgrade its reservation system which requires significant amendments in the operational setup (Oz, 2009). The challenge is same for JetBlue which is a budget airline and have to deal with a large number of customers each day. From the business point of view, the challenge is of losing sales number, revenues and position in the stock market. Because upgrading requires a temporary shutdown, it intakes the risk of losing brand value or position (Laudon, 2013). From customers’ point of view, if amendments are not good enough like they cannot meet the customers’ choice and view, they result in a significant setback to firm’s business. Definitely, when customers are not satisfied it impacts the overall status of the company and also the prospect which comes through customers’ approval. These were particular risk factors which both WestJet and JetBlue involved at their upgrades. The factors required wise planning and the input of leadership to get controlled and managed. They required effective administrative planning to result in favor of firms’ operations (Oz, 2009). Implementation of the New Reservation System There were distinctive problems which both organizations (JetBlue and WestJet) faced at the time of their reservation system upgrade. They faced problems at the managerial level, planning problems and operational problems at the time of change (Wit & Meyer, 2010, p. 439). The initial challenge was to transform the smaller reservation setup to a larger IS system- a system which has more vibrant processing and can easily deal with greater volume of customers. This required the expansion of the primary database, the expansion of the inventory, and the expansion of the processing units in order to become a uniform information system. However, the situation on upgrade was more enduring for WestJet than JetBlue. According to Robert Palmer (a representative from WestJet), the live amendments were more challenging for the organization than the amendments in the testing phase (Laudon, 2013). The organization had to transit its culture, train its workers and had to deal with its customer flaws during amendments. This is all when change is actually brought into the organization system (Laudon, 2013). Steps to overcome the risk factors on Projects First and the foremost are the role of leadership to overcome the risk factors. Leaders such as owners and within in the management section can bring their wise minds to overcome the challenges during the change. Planning is most necessary for bringing a respective change within an organization system (Laudon, 2013). If leaders at WestJet and JetBlue had the vision, the confidence to implement the new IS projects, it would have already cut the half of the risk involved in the IS projects. Organizations required preparation before they have incorporated the particular change in their systems. Preparation with a respective mindset is given by leaders, thinkers and planners of the organization (Laudon, 2013). If the similar preparation was there in WestJet and JetBlue, the organizations would have straightened their directions and paths in the IS projects’ implementation. Strategic management approach was essential at the time when organizations were driving up the change. Deploying administrative level strategies could have worked efficiently in managing the projects (Finkelstein & Hambrick, 2009). The Sabre System The computer oriented Sabre system is a reservation system to manage in flight and off flight services. It is a complete reservation system which holds the diversified array of operations to perform (Plugge & Perry, 2010). For airline companies like JetBlue or WestJet, the Sabre system manages transactions, books fares, keeps the inventory records, gives customers shopping service, and provides an online and offline communication system to customers. Funds reception, rebooking and boarding are further services which Sabre reservation system deals with. The purpose of the system is to increase the pace of customer service. Its purpose is to provide customer the ultimate satisfaction right from the time when the customer is into the flight booking (Laudon, 2013, p. 557). Though with such effective features, the Sabre system did not come out well to WestJet (one of the first airlines to introduce the Sabre system). Right after the system was implemented, the WestJet customers logged in reservations, experienced delays in airport services and also experienced slowed downs in online bookings. Organizations at learning and their leadership The new reservation system first got implemented in WestJet, few months before when JetBlue introduced it in its system. This provided the opportunity to JetBlue to learn from WestJet which was significant enduring at the primary phase of project implementation. After implementation, WestJet lagged in its online efficiency of which JetBlue learned to bring in a back up website. For cost cutting, WestJet stopped to hire contractual call center workers of which the JetBlue took advantaged by hiring 500 efficient calls center agents to increase the customer service patterns. The learning of JetBlue made the organization prepared for the upcoming challenge (the new reservation system). It was the enduring of WestJet that made JetBlue prepared for overcoming the problems. WestJet had many to adapt from JetBlue- an organization which overcome a similar challenge quite comfortably and with progression. On further JetBlue was seemed much alert than WestJet in adjusting a new reservation system (a new IS project). The credit goes to JetBlue’s leadership which made the organization adapt the change quite successively and in a planned manner. It was the proactive approach which JetBlue adapted in acquiring the change. The same reservations should have been made by WestJet like keeping a backup website for customer service or a back system to support the online fares pattern. On further, the leadership at WestJet should not have jumped directly to a new reservation system. It should have given the direction and the purpose of how and why the organization is establishing a new reservation system. The WestJet Problem It was not actually the problem of technology and not even the problem of the new project (the new reservation system), but it was the lack of vision and planning that brought WestJet to catastrophe. If the organization had gone with decisive preparation of how, when and why it will introduce the new reservation setup it could have brought favorable consequences instead of negative ones. The problem actually lied in the sense of planning, administration and leadership, the three significant areas which make change possible for an organization. Change like bringing a new reservation system is not immediate-sudden, it is something to be organized and lifted up within the organization culture (WestJet culture). If the culture of the organization is allowing the change to happen, only then it is possible that it gets implemented. So it can be assessed that the problem of WestJet was not IT-related, but it was the fragility of organization’s leadership that made the organization slowed down (WestJet, 2005). Factors of slowing down WestJet growth plans (RBC WestJet Master Card) The new reservation system brought in place to WestJet required sufficient time to adjust into the organization system (Oz, 2009). The expansions brought in by the system required certain changes in the organization setup like slowing down its growth plans (Laudon, 2013). Immediate expansion stormed the database of WestJet and made the organization contain its large set of customers’ data. Handling or managing the data of a Master card “the credit card” was an additional challenge for which organization decided to hold on to it until the IS project is completely enabled and established. The allowance of supplementary data could have intervened the process of IS project implementation, so WestJet decided to hold its RBC master card plan for some point of time (Laudon, 2013). Conclusion Information technology systems which are part of the globalized world business have always remained important for service firms. Firms like airline companies are much dependent on the information technology setup which enables them to make their business conductive and directional. This paper has brought an assessment of how the American airline firms (JetBlue and WestJet) incorporated a technological change- a new IS reservation system project. Both organizations faced challenges at the time of setting up a new reservation system. The organizations went with the Sabre system which is an efficient system for reservations and database management. WestJet struggled more than JetBlue for acquiring the change and the new IT system. The organization endured as it was not much prepared as JetBlue to incorporate with the change. The conclusion comes out that change is necessary, but the dynamics of change sometimes can be restraining for an organization present in the larger scale. It was not the problem of technology, but it was the problem of leadership and planning which made WestJet slowed down in its change process. Innovation and technology are never bad for an organization like for JetBlue or WestJet, but it is the lack of ability and skill in adapting the technology which makes the organization fell into suffering. Leadership’s role is essential in any technological adaptation as those are leaders which provide direction, vision and confidence to the organization to contain the change upcoming. References List Finkelstein, S., & Hambrick, D. C. (2009). Strategic Leadership. Oxford: Oxford University Press. Laudon, K. C. (2013). Managing Information Systems: Managing the Digital Firm. London: Pearson Education Limited. Oz, E. (2009). Management Information Systems. London: Cengage Learning. Plugge, W. R., & Perry, M. N. (2010). American Airlines "Sabre" Electronic Reservations System. New York: American Airlines. WestJet. (2005). WestJet manages dramatic growth with costeffective solutions. WestJet. Wit, B. d., & Meyer, R. (2010). Strategy: Process, Content, Context : an International Perspective. Hampshire: Cengage Learning. Read More