Strategic Use Of Information Systems For Strategic Advantage Tourism
Every organisation has it strategic ways of pull offing the information of the company. The scheme used depends on the company ‘s vision and mission. This paper is based on a research on how information systems are used strategically as a beginning of competitory advantage. The instance survey is chiefly on Emirate Airline as the primary industry being compared to British Airways. The research involves utilizing the porter ‘s four generic schemes, SWOT analysis and basic concern schemes and expressions based on the research methodological analysis.
Success is the primary enterprise spouse for the formation, growing and advancement of strong and advantageous Changing schemes of every organisation. Success ever comes after battle, difficult work and attempt made from those advantageous schemes created to accomplish a strong and unbeatable strategic competitory place. The research was carried out through different research methodological analysiss concentrating on the strategic usage of information system in competitory environment. The major company targeted was Emirate Airline but being it on competitory advantage, British Airway a similar strong company in the air power industry was used as a comparing company.
The two Airline organisations are considered because they are two major successful international air hose industries and offer about the same services, yet British Airways consider Emirate Airline as a menace and vice-versa. Besides British Airways reported a loss in the market industry while Emirate Airline even with the planetary Financial Crisis impacting Dubai, the air hose industry is still describing addition and disbursement immense on engineerings.
Companies Websites: the two company ‘s ( British Airways and Emirates Airline ) web sites were used as beginning of general, background and dependable information. Besides it was considered as the most accurate and up to day of the month informations and cognition subscriber to the undertaking.
Diaries: newspapers, articles and instance surveies were being used in order to accumulated and acquire dependable informations for the analysis. All the diaries used are on information system or engineering and besides consist of strategic information on competitory advantages. An illustration is a instance survey on “ Developing a Simulation Strategy for British Airways OR ” . And besides a paper on Emirate Airline Leadership Strategy was looked at as a methodological analysis.
Text Books: Different text books on strategic direction and competitory advantage were being used. The chief countries mark for the readings in the text books was done in order to derive an apprehension in the different facet of strategic direction attacks and how they are applied to derive competitory advantage.
Interview: Emirate Airline was the primary company and is based in Dubai a personal interview was carried out with the strategic director Ms Christine Stevenson. Where in the instance of British Airways a telephone interview was done with the Information System Admin Officer, as an interview with the strategic or IT Manager was non possible. The inquiry for the interview started from turn toing the basic inquiries like what are the engineerings they used to more in depth inquiries like how they reach a concluding consensus when it comes to determination devising. Besides asked inquiry like there most valuable, strongest and successful scheme used to accomplish competitory place. Not all the inquiries were answered by both interviewees because both Airlines see some portion of their concern schemes private and confidential and would n’t portion it with any other individual. While in instance of British Airways the interviewee has no full cognition on the strategic aspect inquiry because he is merely an IS Admin Officer.
A strategic director is responsible for all the determinations that will enable an organisation or company to accomplish its short and long term vision. They are responsible for the strategic, tactical and operational portion of concern. A strategic director was considered because he/she will be able to reply all the inquiries associating to strategic direction attacks and how those attacks gain competitory Advantage place for the company.
Christine Stevenson ( the strategic director ) possesses all the all qualities of a leader. She is independent and influential. Furthermore, an enterpriser ( she has a strong reasonable hazard taking abilities, dressed ores on creativeness and besides the continuity of the market ) . She is Besides a diplomatic and friendly director, an illustration is when she was asked strong inquiries, she considered confidential and would non wish to reply, she laugh and diplomatically and friendly replied:
“ That is excessively strong and confidential, are you certain you ‘re non a pupil ” .
Emirate Airline is a subordinate of the Emirate Group, which was founded in 1959 by Sheikh Ahmed Bin Saeed Al-Maktoum. Emirate Group is a public international owned concern, runing as a travel and touristry company based in Dubai. In 1985 the Emirate Airline industry was established by the investing Corporation Department of the Dubai Government, covered by an understanding with the Pakistan International Airlines as the direction company. Before the constitution of Emirate Airline, Gulf Air was the lone air hose industry that was supplying travel services to the Dubai population. During the period Gulf Air begins to cut down and lower it quality of services to the UAE population, which motivate the authorities to present their ain Airline. Today emirate air hose is the largest, biggest and fastest turning international air hose industry in the Middle East.
British Air passages:
British Airways is a public limited company runing as an international air hose industry, based in London, United Kingdom. The company started as a private air hose industry, founded in 1935 runing chiefly in Europe called Allied British Airways. The amalgamation between imperial Airways and British Airways LTD formed the individual name British Airways Corporation in 1939. Later in 1974 when the authorization demands that the British Airways Corporation should unify with British European Airways, the name British Airways was returned. Besides in 1987 the collaborative amalgamation with British Caledonian made the company being privatized. British Airways is one of the largest and fastest turning air hose industries non merely in United Kingdom but the universe even with the recent crisis of describing a loss in the market portion of the industry.
Information System: A piece of information ever starts with a information. Data is merely knowing and meaningful when it has been processed and transformed into information. Every organisation has its alone information and each information has it value to the overall success of the organisation, Making it critical and of import to pull off the information strategically. The information, process, hardware, package, or even worlds that are used to roll up, roll up or piece to measure and analyzed information, is being referred to as information system. Specifically in footings of organisation like Emirate Airline or British Air passages they are computer-based systems of hardware and package that the company ‘s employees, clients and clients used to roll up, filter, procedure, create, distribute and manage information. [ Paul 2003 ]
“ An information system is a work system whose concern procedure is devoted to capturing, conveying, hive awaying, recovering, manipulating, and exposing information, thereby back uping other work system ” [ Steven Alter 2002 ]
Emirates Airline information system: there are several tools, package and hardware used in Emirate Airline, and they will be named and briefly discussed. The information systems are used strategically as a beginning of competitory advantage, how they are used strategically will be discuss in dept in the scheme analysis column.
Emirates Airlines has a call centre, it a Centre where clients name and acquire information sing the flights, the engagement and the offers. The call centre provides all the information about the company and employees. The call centre besides calls clients whenever there is a new merchandise, service or gross revenues as a selling process. The company ‘s information is saved in a database for strategic planning and benefits in the hereafter.
The company ‘s web site is another information system that is used strategically to pull off its client and client demands by acquiring client feedback from it. The web-site consists of different databases and content in order to supply its user with information such as the flights inside informations and company ‘s basic inside informations. Emirate Airline besides uses the
Customer Relationship Manager Information System ( CRIS ) , which is a window-based web-site running as a client/server application. An prophet development tool was used in making CRIS, necessitating a separate development attempt to upgrade. These leaves the Airline with unconnected application to pull off, graduated table to back up increment demand and cut direction cost. But still the company does n’t utilize CRIS as its chief client relationship package alternatively Mercator package development addendum provide CRIS for sale to other air hoses industries. Besides requires offering those clients with a scalable solution, with the purpose to minimise the cost and clip of custom-making the solution for each deployment. [ Article on Mercator ]
The Media is another signifier of information system used by Emirate Airline as a beginning of competitory advantage. It is used in from of Television, Radio and hoarding to publicize at that place merchandise such as travel publicities, in order to pull clients. Those advertizements target new clients and assist the company to maintain old clients.
One of the most of import tool used by the industry which has played a critical function as a competitory advantage is the heavenward plan, besides known as the frequent circular plan.
The skyward is in a signifier of a recognition card looking card which can be applied by any rider whom has travel over a certain sum of stat mis with emirate air hose. It comes in three different classs of bluish, Ag and gold, where gold the highest and blue is the lowest. The plan was established in May 2000 by the organisation so as to better and fasten their competitory advantage. Skywards operate as a wages obtaining card, where a rider is given an sum of travel stat mis depending and harmonizing to the distance he or she has travelled. As the stat mis accumulate and increase with sum of travels, the card is upgraded consequently. These Miles can so be exchanged for free flights, ascents and other wagess, besides a rider can reassign his stat mis to another skyward keeping rider.
“ Using skywards plan is free and clients merely have to register online or by naming Emirates Airlines if they wish to go skywards members. It is used by over 5.72 million clients. Skyward is one of our most valuable beginning of information system tool that we use to pull client ” [ Strategic Manager ]
Another plan is the skysurfer, which is a frequent circular plan for immature kids between the ages of 2-16years. It fundamentally works same as skyward but in this instance extra wagess are added to pull kids. Exciting Wagess such as books, playthings, free trips to Wild Wadi and Atlantis in Dubai or even a free ticket to anywhere in the universe. Besides kids get the chance of taking their travel place.
The information, communicating and amusement ( ICE ) system is an in-flight amusement installation that provides riders with assortment of channels to take from. The system includes films, picture games and music channels. Ice can be accessed in different linguistic communications such as English, Spanish, Arabic, Korean, Nipponese, Gallic and German. Passengers have the option of pausing, send oning or rewinding any selected point they are watching. In add-on a rider in concern or first category cabin has the privilege of telling and taking what they want to watch that is non available in the media list brochure.
Electronic cheque in base is a self cheque in machine available at the emirate terminus in Dubai airdrome. Passengers are able to check- in between 2 to 48 hours of their flight going. Where a rider get to make the all the procedures of look intoing in his or her baggage by himself, salvaging the problem of fall ining the long waiting line at the chief manual cheque in counter. Staffs are besides available at the Electronic cheque base for aid, for case if a rider is holding trouble in publishing the embarkation base on balls at the last concluding procedure of the process.
Emirates air hose provides keen sofas for first and concern category riders every bit good as skywards Ag and gold member, holding about 21 sofas in 18 different metropoliss and are even be aftering on opening more. In metropoliss and states where the air hose does n’t hold a going sofa, a sofa is provided for first and concern category riders. The sofa has comfy chairs and telecasting to entertain riders before their going. Some sofas have good equipped bathrooms with showers for riders who want to take a shower after a long twenty-four hours. Food of different assortment is besides available to take from. Breakfast, tiffin and bites are served to client satisfaction. This is available because they have clients from different nationalities talking different linguistic communications, so as to pull clients from every portion of the state.
Harmonizing to the News reported 09 March 2010, in the company ‘s website ‘lounge investing to day of the month is cruising above AED 266 Million ( US $ 72 Million )
EMIRATE AIRLINE STRATEGY ANALYSIS
The schemes, construction and direction of those schemes and construction is ever a composite and complex procedure for every organisation. Strategy can be defined as the way, path, possibility or range of a concern over the long-run and short-time ends and vision, which achieves advantage for the organisation from the beggary to the terminal of its form, design, and direction of resources within a challenging and competitory environment, by accomplishing market range and to carry through competitory scheme. [ J. Thompson with F. Martin, 2005, p1 ]
For an organisation to accomplish its ends and vision it need to come up with typical and good organized schemes which will include critical and comprehensive survey every bit good as probes into assorted countries that will bring forth information that will be advantageous to the achievement of the industry. This is the ground why emirate air hose gives consideration in concentrating into the overall and general place position of their challengers such as British Airways, besides affecting in their inside and exterior activities. By cognizing their rival ‘s position the organisation of the company will be able to analyse the position of the company ‘s attacks, capital, income, schemes and resources in general. Which will able the company to set up how they will be able to pull off, and lickings British Air passages in competitory advantage in future. This will besides give the company the chance to stature out their authority and how they will maximise their strength and extinguish their failings.
In every concern there are times and periods of strength, failing, success and failure. All of these periods apply to both British air passages and Emirate air hose. The corporate scheme used by emirate air hose which involves analyzing the bing and awaited factors related with riders and rivals external state of affairs and the organisations ( Emirate Airline ) internal environment itself. Visualizing a successful function for the organisation, by making a scheme and alining policies and resources such as the usage of Media to accomplish the air hoses ends and vision. Emirate air hose is committed with the diverseness of their clients ; the variegation direction attack applied by the company enables the house to vouch that riders are given outstanding service provided by avid and committed staffs and employees, unlike British Airways staff that late undergo a three twenty-four hours strike against their direction. The attack is carried out by adding new merchandise and resources to an bing merchandise, an illustration is the new and improved concern category cabin introduce about a month ago by Emirate air hose and besides the stat mi gas pedal services added to the skyward installation. [ Paul Finlay, 2000, page 473 ] [ ]
“ We the Staffs of Emirate Airline are ever ready to help and welcome thoughts from riders, either by Electronic study or any signifier of engineering that will acquire us a feedback from our client ” [ strategic Manager ]
Another competitory scheme used by Emirate Airline is the focus-leadership scheme, which play a critical function in imputing to the success of the company, which is derived from the Generic scheme expression. The organisations concern ends is to supply its clients with superb, dependable and most of all welcoming services to their honored clients, by giving to do each journey unforgettable and particular.
The well-being, comfort and convenience are of import concerns as they provide value services for their riders and client through reliable, highly update engineerings and the usage of information system. The generic scheme will be illustrated in item through the Porters Four Generic Business Strategy.
The organisation expands their industry to achieve more clients which enable them to be more advantageous and profitable. Making it possible even with the planetary economic crisis and the fiscal position of Dubai, Emirate Airlines are still doing net incomes denoting Half-Year Net income of Dhs 284 Million in 2009. While their challengers British Airways report a quite sum of loss in the market portion monetary value early this twelvemonth, even though the organisation is manage and maintained by a sensible steady fiscal state. But both air hose industries are strategically presenting new engineerings to heighten and accomplish both at that place long and short term ends and vision. So still with the fiscal crisis of British Air passages they still have competitory advantage over Emirate Airline when it comes to manage crisis as they are much older in the air power industry and have manage crisis in the yesteryear.
“ We are a much longer air power industry than Emirate Airline and we have schemes we entirely use in pull offing our crisis which we have implemented in old crisis in the yesteryear. ” [ BA staff ]
The Marketing scheme attack of Emirate Airline industry are said to be a customer-oriented scheme method. The scheme focuses on assorted types of clients, by providing the demands of clients separately and unambiguously. This is done through the usage of engineerings such as the skyward client history and card, where inside informations and specification of the history holder are saved. The industry has been able to use paths to a assortment of finish all over the universe. Emirate Airline industry ‘s scheme can be categorized as a powerful scheme and it enables the concern to offer full trueness and committedness and maintain organisational operations so as achieve full competitory advantage.A Through this scheme, Emirates Airlines surpass most of their rivals in the air hose industry, and besides deriving market portion and enhanced the overall demand of their service.
Bing the company ( Emirate ) an international air hose industry gives the direction an chance to spread out and develop their industry and services all over the universe with no via media to the importance and value, and quality of services they give for their clients in every state. The company has a client service aid desk and a call Centre installation in largely every constituency they operate to supply and fulfill the petitions of their riders and clients at all times. This is carried out through the variegation direction scheme mentioned earlier, where by the demand and demand of their rider and client are handled globally. Nevertheless, the menace and fright of the industry upon British Airways is the endurance and being possess by their challenger in the yesteryear for grip failures and crisis, holding the ability and capableness to pick up quickly from their crisis and supply low-cost and quality services merely as the Emirate Airlines. Their weak point can besides be drawn from their diversified markets. However, with the 24-hour client service call Centre of the company, an immediate feedback is given to the question of their client.
The concern theoretical account of the air hose industry has led to their commercial success in the air power and air hose industry. They are able to hold a thin work force that can be compared to low-priced bearers instead than conventional flag-carriers. In add-on, the company has besides a simple organisational construction which permits the air hose to keep low operating expense costs and enables them to pay no income revenue enhancements on rewards.
The organisations scheme theoretical account of emirate Airline is what has lead to their concern success in the air hose industry, giving them a successful concern Model. This concern theoretical account gives them a supportive work force, doing their services low-cost at the same clip the successful and most profitable organisation. Besides the organisation has a apparent organisational composing which permits the company to prolong little operating expense costs and enables them to pay no gross responsibility on income and rewards. [ ]
Ethical determinations can be made and taken at managerial degree in emirate air hose industry, which makes the corporation expand capable and successful organisational behaviour. The direction of emirate air hose believes that rules offer the primary basic for make up one’s minding whether a specific action or behaviour is ethically or morally right or incorrect, the organisation are able to develop ethical, moral, positions, criterions and rules. Where as in British Airways merely basic ethical facet are given consideration, for illustration a BA female cabin crew most non cover her hair while in Emirate she has to cover her hair. The human resources direction attack scheme is used by the organisation in recruiting and using the best and needed staffs that will accommodate their rider and client demands. By and large Emirate air hose scheme is a powerful scheme will be really hard to crush.
Competitive advantage is the ability and mode by which companies, industries and organisation manages to keep its long and short term ends, mission, and vision besides maintain up its place against its challenger or rivals. It is the province which enables a company to execute in a more effectual and competent mode, taking the organisation to move and run in a higher-quality attack than its rivals. Competitive advantage could be a long-run or short-run status and can be managed through assorted competitory schemes, such as:
The Porters Five Forces Model
These schemes will be discussed and analyzed individually, utilizing British Airways ( a rival ) in comparing with Emirate Airlines.
The tactical process implemented to measure an organisations strength, failings, chances, and menace is strategically known as SWOT Analysis. This analysis method involves reciting the end and aim of the organisation by finding the internal and external factors that are comfortable and non-amicable in accomplishing it ends and nonsubjective. This analysis can be integrated into the strategic concern theoretical account used by the company merely like the instance of Emirate Airline. Every organisation has it strength, failings, chances and menaces, same applies to Emirate Airline. The strength weaknesses, chances and menaces of the industry will be discussed separately utilizing the SWOT analysis.
Emirates Airline grew successful from the effectual, concentrate driven, accurate determinations planning and the scheme set for its employees by the organisation. The determined attempts and first-class services provided by the members of its staff to the riders and client gave strength to the Success of the Airline. The Airline get downing the operation with two chartered aircrafts from the Pakistan International Airlines, and was able to beef up its fleet of aircrafts by buying long draw aircrafts from the makers of the Boeing & A ; Airbus aircrafts. The A380 and B777 were specifically purchased to supply comfy and fulfilling air travel for its valuable clients. Emirate Airline strength expanded more from when the Airline was selected as the best Airline for the In-flight services for figure of old ages from taking organisations, such as British Airways.
The successes and strength of the Emirate Airline leads to an addition in the growing and figure of dedicated and committed riders utilizing the Airline, besides expands the income, net income and gross of the organisation in whole. On Achieving and winning the award the Airline was chiefly recognized globally in the travel industry, thereby kick offing the “ Skyward Club ” ranks for frequent flyers. This besides strengthened the Airline. Its ability to endlessly modify and better the services in the air power sectors gave an advantage to the Airline to run into up the marks set by the Management, advancing the industry as the leader in the air power industry. [ Paul, 2000 ]
In every successful scheme there are ever defects and failings, the chief failing of Emirate Airline are some of the schemes and information system engineerings implemented, in order to spread out the concern. This attack has non yet been winning, which can be considered as failing. The Airline has been accused of concentrating on high-end accomplishment and variegation, even after cognizing such determinations have unsure and hard effects on the Airline, doing their flight rather insecure. While British Airways has a History and full safety records established ages ago.
Emirates Airline industry has a broad scope of chances giving it a competitory border.
These chances are derived from the strategic usage of their information system engineerings and services, leting the industry to infiltrate into an untasted new market with no strong rivals like British Airways. The gross bring forthing profitable income for the organisation is from their operating flights to assorted finish where is un-touched by their challengers, such as available flights from Middle East to India, South East Asia to Africa. Besides being able to go around the chance to pull off codification sharing finishs where there are no local flag bearers.
The external environment of the organisation is said to be the chief beginning of menace confronting the industry. Nevertheless an internal environment issues such as the recent budget formed by the company contribute as a menace to the organisation in whole. The carnival of the budget addition from the logistic and cost of information system, being introduced and implemented so as to accomplish the ends and aims of the company. Examples of these systems are cost direction of schemes and engineerings like the Customer Relation Manager Information System ( CRIS ) . Strong competitory challengers from European states like British Airways leads to an sum of menace that can endanger the industry in general. The planetary economic down autumn of the Dubai Financial position lead to the industry enduring from travel reverses, doing the menus of Emirate Airline addition from their normal monetary values. The air hoses inability to maintain up with the inventions or acknowledge its demand creates a menace for the air hose and reduces the burden of the riders. All this is because the political and economical environment in the states where the air hoses operates could potentially hold a negative impact on concern. Where by conformities could be used by their rivals to their advantage and take the industry by surprise and by the clip they realize, it will be excessively late that they are non the leaders of the air hose industry any longer and have lost a great Numberss of clients.
Pest analysis is another signifier of strategic direction analysis that is used to scan and analyze the external macro-environmental factors in which an organisation operates. The word PEST is an abbreviation for Political, Economical, Social and Technological factors, which are the external macro-environmental elements that are analyzed by the PEST analysis scheme.
The scheme used in pull offing the external macro-environmental factors of an organisation can play a critical function in competitory advantage. This column will briefly discourse those factors in respects of Emirate Airline.
The Emirates Airline industry is owned by Dubai authorities and has been protected by the policies and ordinances formulated by the authorities and other states where they operate. These ordinances includes the ability to guarantee that the air hose conform and behavior concern operations successfully, productively and efficaciously. The industry besides formulates their ain protections schemes against any limitation and restrictions imposed by any other foreign authorities. All these are possible due the political stableness and no rigorous trade limitation and traffic in the UAE.
The industry operates in a stable and successful micro-economic environment, even with the down autumn of the economic system globally and many economic failures encountered in Dubai. The direction creates schemes that will ease and excel such crises and battles, by endeavoring to calculate a better economic status. The scheme involves concentrating on economical facet such as the involvement rate, exchange rate and rising prices rate of their place state and their finishs states. The economical factor provides a strong confederation in doing Emirate Airline a extremely competitory industry in the air power sector.
The cultural and demographic facets of the external macro-environment of emirate Airline, provides a good repute for the industry in whole and besides by given equal opportunity to take advantage of the resources provided by the direction. The societal factor direction resources will concentrate on countries such as wellness consciousness, population growing rate, calling attitudes and accent on safety. An illustration in the proviso of a life jacket and the presentation done by the cabin crew before flight take off.
Technological factors can take down barriers to entry, cut down minimal efficient production degree, and influence outsourcing. Emirate Airline industry uses different signifier of engineerings as discussed earlier in the information system column. These engineerings are used strategically as a signifier of communicating to make out the clients and client all over the universe. An illustration is the company ‘s Mercator package development that is used as a subordinate application, where by take downing the cost of direction for the engineering in general.
Porters FIVE Forces Model
This is a skeletal structured theoretical account used to depict and analyse a company ‘s degree of concern scheme development. The five forces model analysis is carried out to find the competitory place of an organisation. The competitory place force to be considered during the analysis includes the company ‘s purchasers, competitory competition, replacements, entry barriers and providers.
“ Porters generic schemes concept is a widely used model for sorting competitory schemes. “ [ text from library page 5 ]
A theoretical account diagram will be used to exemplify the five forces competitory place of Emirate Airline.
An organisation like Emirate Airline is ought to be protected from competitory menaces, but from the five forces diagram it can be seen that every industry has to purses competitory menaces.
Strategic confederation is a concern scheme affair between two or more organisation to prosecute a end. It is an official understanding carried out to accomplish a important concern vision that will be advantageous to the organisations involved. Even with the confederation understandings the organisations involve still run as single companies. The Alliance can sometime hold an impact in exceling competitory competition between the organisations involved or industry. An confederation can be in different signifiers such as engineering in signifier of information system or even human resources.
Emirate Airline and British Airways have different types of confederations understandings that are lending in accomplishing the ends and visions of both organisations. The chief technological confederation between the two organisations is the confederation in the client service direction understanding, an illustration is where an Emirate Airline skyward history holder can utilize his frequent flyer stat mis accumulated from going with Emirate Airline to go with a British Airways flight and frailty versa. Besides the use of the executive sofas of both Airlines, a British Airways executive nine member can utilize the Emirate Airline sofa when going with BA flight from or to a finish where BA has no sofas same applies to Emirate Skyward Account holders they can do usage of the services and resources provided by BA in a topographic point where Emirate has no such services. These confederations can hold a important advantage in competitory advantage even over each other, for case in a instance where an Emirate Airline rider received an first-class service from British Airways Lounges will be tempted and promote to go with British Air passages flight in order the receive the full bundle of the first-class services and resources.
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