Management Strategies for Information Technology - Research Paper Example

1. In attempting to discuss Comair’s Information Systems (IS) and Information and technology (IT) strategy with regards to capability of supporting their business strategy, it is imperative to give a brief overview of the meanings of the key terms. According to the online thesaurus dictionary, Information Systems is the system consisting of the network of all communication channels used in an organisation which strives to combine interrelated artefacts designed to work as a coherent entity in the processing of information. Loosely put, it is any graphic or electronic method of processing information. IT generally refers to the technical aspect of using computers and telecommunications in some instances to store, retrieve or even transmit data (Robson 1997). The new information and communication technology has brought about dramatic changes to the way organisations conduct business during the contemporary period and it can be noted from a critical reading of Comair’s case study that it is still lagging behind in terms of IT and IS. In view of the above assertion, it is significant to carry out a SWOT analysis of the airline in an attempt to establish if there is any correlation between the IS and IT with its business strategy. “A SWOT analysis is a useful instrument for helping managers to identify internal strengths and weaknesses of a business and external opportunities and threats facing it,” (Strydom J. p 31). Basically, SWOT stands for strengths (S), weaknesses (W) while on the other hand the external environmental factors are regarded as either opportunities (O) or threats (T). This analysis is very important to managers as it allows them to focus on key strategic issues based on the notion that an effective strategy fully utilises the strengths and opportunities of a business and strives to minimise the weaknesses and threats. This study therefore, is concerned with establishing a SWOT analysis for Comair in view of its IT and IS strategy. One of the major strength in Comair’s business strategy is that it has sound management practices which have seen it growing from strength to strength over the years since its inception. Whilst this is a strong business strategy, its IS does not fully support this strategy given that they still rely on old traditional methods of doing business. Indeed, business has been growing as a result of the strategy but the problem is that it is not fully supported by modern IS which makes the processing of information relatively easy given that Comair is still growing and this growth has to be supported by sound IS and IT infrastructure which can handle the large volumes of information to be processed. One major weakness of Comair is the fact that they operated using outdated software. It suffered a public relations nightmare when a critical legacy system occurred in December 2004. This resulted in a public relations nightmare where the organisation came under criticism following the unprecedented cancellation of almost all scheduled flights as a result of the failure by the legacy system. Indeed, the software it uses is outdated and not compatible with the technological changes taking place in the communication field. Whilst the organisation blames the unfortunate incident on weather, other critics point to the effect that Comair is to blame for using an outdated legacy system. Unfortunately, such a system does not support the business strategy since it cannot handle all the demands that come with growth of the organisation. In the face of competition, one viable opportunity for Comair is harnessing the compatible IS which can handle larger volumes of data to be processed as the airline is also growing. The IS should be capable to handle any changes without causing much disturbances to the scheduled flights. The use of up-to-date information systems supported by modern information technology infrastructure is one of the most viable opportunities that can ensure Comair’s competitive edge. There are various technological changes currently taking place during the contemporary period and any organisation concerned with ensuring growth and competitive advantage ought to harness these changes. However, it can be noted that the major threat to Comair is competition from other airlines which use up to date software to support its IS and IT infrastructure. During the contemporary period, computers with the aid of telecommunications form the back borne of IS through the use of the internet. It still relies on the legacy system that is more than a decade old. A close analysis of its operations shows that there have been tremendous changes in the market especially with regards to the technical aspect. Failure to adopt such changes is a recipe for disaster since other competitors are quick to streamline their operations with the technological changes as a way of ensuring a competitive advantage. In the same vain other factors such as PESTEL discussed in appendix 1 also have a bearing on the organisation’s business strategy in relation to its IS as well as IT infrastructure. A close analysis of the events highlighted in the case study shows that its IS and IT do not fully support is business strategy. For instance, a glitch in Comair’s flight crew scheduling software forced the airline to cease all operations, grounding its full schedule of 1,100 flights. This incident is testimony enough to show that the IS cannot fully support the business strategy. The company’s systems ran an assortment of applications for crew scheduling, aircraft maintenance, and passenger booking and it should be noted that these were not interrelated and the system used was becoming outdated. Another area of concern is that no one at Comair knew that the software logged schedule changes with an antiquated counter that could not han­dle more than 32,768 changes in a month. An unprecedented change in weather occurred which necessitated rescheduling of some flights which resulted in the system failing to handle all the changes which resulted in a halt of all its operations for a few days after the system crashed. For such an organisation like Comair contingent measures in form of up to date information systems should always in place to counter the risk of losses likely to be incurred in the event of a crash of a system. From the above scenario, it can be noted that to a greater extent, Comair’s IT and IS do not fully support its business strategy. They ought to have up-to-date software that is compatible with contemporary changes in new information and communication technology. This would be one of the most effective and viable ways of keeping pace with the changes that may take place in the market. b) System theory is loosely defined as the study of abstract organisation of phenomena (University of Twente 2009). It is based on the model which is generally concerned with the first and second order control systems where the technique requires that managers not only define their information requirements, the outputs, but also measures of efficiency (first order feedback) and effectiveness, second order feedback (Robson 1997). This technique basically aims to identify the information requirements and the organisation must first look at outputs (the ends) then attempts to define the means and processes used to get there. The systems theory mainly focuses on the arrangement of and relationship of the different parts which when joined form a whole entity. A system is made up of parts which are interrelated and it often operates in an open environment hence the more open it is, the more likelihood chances of survival. In this particular case, there would be need for what is commonly referred to as the systems development life cycle (SDLC) which is primarily concerned with the creation and alteration of the organisation’s system. This method is very logical in that it would meet the customer expectations as it would be constantly upgraded to meet any technological changes in the system used by the organisation. It should also be noted that ccomputer systems have become so complex in some instances. With the advent of service oriented designs, there is more need to link multiple traditional systems into one entity. In some instances, these systems are supplied by different software vendors hence there is need to streamline them to meet the requirements of the organisation. In order to manage such kind of complexity, there have been a number of SDLC models have been created. These include the waterfall (enhanced), fountain, as well as rapid prototyping among others. Though the term SDLC can refer to various models, it typically denotes a waterfall methodology which is made up of different stages. In a waterfall model, there is a sequence of development of the where there is downward progression through the development process where there are different stages just like water flowing from an upward area down to the lower level. This model is mainly made up of five basic phases which include the initiation stage, design, implementation, verification and maintenance. There is need to make sure that each stage is accurate for better results in using this model. Each stage leads to the development of the next stage and there is need for coherence. This model also puts more emphasis on documentation which is very essential in designing a system which is capable of holding large quantities of data. This waterfall model is more often preferred by many organisations for its simple approach which is easy to use. It is also argued that this model is more disciplined compared to other models which are quite complicated and difficult to use. The waterfall model provides a structured approach which is simple to use and understand. The model itself progresses in a linear version where all the stages form part of the system which can be used to process the information requirements of the organisation. This model is easily understood and can be explained in different phases. It also provides easily recognizable characteristics in the development process which is one major advantage as well. For this reason, the waterfall model has many advantages over other models therefore is highly recommended for such big organisations like Comair. The prototyping model is particularly concerned with creating a working model of various parts of the system for an organisation at a very early stage after a relatively short period of investigation of the information requirements and this system can be done quickly. It should also be noted that the method used in building this system is often a bit informal. However, one of the most important aspect of this system is that it can be done with quite high speed and can be discarded after achieving what the organisation would be earmarking to achieve within a short space of time. The model is often used as the starting point from which users can re-examine their expectations and later develop another system. The main characteristic of this system is that it is short term based therefore not very recommendable for big organisations like Comair. Given the advantages of the water fall model, it is imperative that Comair must gather necessary information which is relevant to its operations. This has to be done by considering the internal as well as the external factors which affect its operations. The internal information would involve the day to day operations such as the staff complement, scheduling of flights as well as its holding capacity of such information. Gathering all the relevant information would allow the organisation to gain knowledge if its infrastructure can be able to process such kind of information and to draw out the necessary steps that can be taken to ensure effectiveness of the system. In any case, there is need to have information which can be used to establish all the necessary and relevant data which can be used to link all the components of the organisation. Basically, all organisations operate in an open market which ought to have a system which is open. Therefore, Comair air should establish all the necessary steps to ensure that all the primary information relating to the company is available upon request by those stakeholders concerned with the day to day running of the organisation. On the other hand, value chain entails that any business ought to separate its business systems into various activities which can add more competitive advantage to its operations. For instance, the aim would be to offer the customers with first class service which would be valuable in other activities to the customers. Part of the system of value chain involves identification of the customer needs as well as generation of sales. There would also be need to offer support to the customers after the services have been sold to them. The primary activities of value chain would also involve infrastructural development which can support the control systems as well as company culture. c) In the event that Comair decides to build a new system, it has to consider all the stakeholders who are either directly or indirectly affected by its operations. Indeed, the primary group of people to consider involves its employees. These are the people who directly make all the operations possible. The system ought to be flexible and user friendly where all the employees would be able to log in and access the relevant information about their operations they would require. This would be advantageous in that a system that is understood by everyone would promote an environment that is easy to manage and control unlike complicated systems that would cause more confusion among the workers. It is highly recommended that Comair should also consider both IT and IS consultants who will advise them accordingly about how best they can design a system that is compatible with the latest technological changes characterising the market. Consultants who specialise with the field of IT are likely to be more accustomed with the requirements of the technological developments taking place in the industry on a daily basis. Comair should also gather information about its competitors. It is always very important to have information about how other competitors in the same industry operate. By virtue of getting this information, Comair would be in a position to strategically position itself with regards to provision of timeous and accurate information both to its customers as well as the workers. Information dissemination forms the back borne of all facets of business and in this case the above mentioned company should readily provide necessary information should there be any invertible changes which cannot be controlled by human beings such as weather changes. Indeed the change of weather is a natural phenomenon which cannot be controlled by any human being and it would be folly for such a reputable airline like Comair to lay all the blame on unprecedented weather changes. Given that weather can change at any moment, this information would be very important and it would be pertinent for Comair to gather all the necessary information about how other rival competitors cope with such a situation. Technologically, Comair is obliged to use up to date information and communication technology as well as information system which is compatible with the ever changing developments charactering the market. The internet for instance has revolutionised how people interact and conduct business. In any case the internet can provide any information given that the above mentioned company can set up a reliable website where all the information can be readily accessible to all the stakeholders. It is also recommended that Comair should put contingent measures to cushion the severe effects of weather in the event that there is snow which can disturb the smooth flow of air traffic. Weather focasts would allow the organisation to notify the clients on time should there be any changes that may take place which can affect air traffic. In order to avoid an embarrassing situation, Comair should be able to notify the clients about all the unprecedented changes which can be caused by the natural phenomenon such as bad weather which cannot be controlled by human beings. Over and above, it can be noted that Comair ought to have a system which is up to date with regards to information processing. Indeed, all the customers should have information about any changes which may take place given that the core business of the above mentioned company is to carry passengers to different places. Instead of blaming the weather, Comair should have a system which is capable of providing any information to the clients whenever it is required. Appendix 1 PESTEL ANALYSIS OF COMAIR PESTEL stands for factors which may affect the operations of business such as political, economic, social, technological, environmental as well as legal factors. The table below illustrates these factors. Political factors -The threat of international terrorism is one major political factor which can negatively affects business especially with reference to air traffic operations such as the 9/11 attacks which resulted in a slump of business as security measures were being tightened. Economic Factors -Increase or decrease in disposable income affects the welfare of the people -High operating costs as a result of poor weather focasts -competition. Social factors Fair treatment at work Reduction of business can lead to downsizing Motivated workers are likely to be productive compared to the workers who are stressed. Technological factors Advanced information and communication technology improves the chances of better performance of business (Use of the internet) Centralised management systems aided by the use of computers Environmental factors -bad weather Snow: each company ought to strive to protect the environment it is operating in as well as know the changes that may take place to safeguard the interests of the community and always keep the customers updated with information with regards to any changes in weather. Legal factors -Statutory regulations that promote competition among different organizations in the market affect the operations of an organization to a certain extent. No one company can enjoy the monopoly of dominance in the market. -Labour laws which allow the grievances of the workers to be heard such as industrial actions against poor working conditions that may affect the operations of an organization as big as Comair. References Earl, M.J. (1989), Management Strategies for Information Technology, Prentice Hall. Strydom, J. (2004), Marketing, 3rd Edition, Juta & Co Ltd, SA Kotler P. (1999), Kotler on Marketing: How to create, win and dominate Markets, Free Press, London. Laudon, K.C. and Laudon J.P., 2007, Essentials of Business Information Systems, 7th ed., N.J., Pearson Prentice Hall University of Twente, Systems Theory, Retrieved on 14 Apr. 09, from: http://www.cw.utwente.nl/theorieenoverzicht/Theory%20clusters/Communication%20Processes/System_Theory.doc/ Definition of IT Retrieved on 15 Apr. 09, From: http://www.google.co.za/search?hl=en&lr=&rlz=1G1GGLQ_ENZA316&defl=en&q=define:it&ei=dKblSbfhLcSf-Abjr5iRCQ&sa=X&oi=glossary_definition&ct=title Business management Retrieved on 18 Apr. 09 from: http://www.netmba.com/strategy/value-chain/ Read More