Enhancing competitive advantage using information technology : a case study of the Philippine Airlines, Singapore Airlines and Thai Airways International
- Bangkok : Asian Institute of Technology, 1996
- 169 leaves : ill.
- Thesis ; no. SM-96-02 .
- Asian Institute of Technology. Thesis ; no. SM-96-02 .
A thesis submitted in partial fulfillment of the requirements for the degree of Master in Business Administration, School of Management
Thesis (M.B.A.) - Asian Institute of Technology, 1996
Today, Information Technology (IT) is thriving in almost all business activities, becoming embedded in its operation and culture. In the case of the airline industry, the dependence on IT has become total; its effective exploitation is an increasingly vital part of the ability of airline companies to survive competitively. Thus, it is in this light that this study had been undertaken. Based on an in-depth analysis from the case studies of Philippine Airlines, Singapore Airlines and Thai Airways International, their IT profile and trends for the next five years were identified. IT sophistication was clarified using Nolan's 'stage growth' model and aspects ofIT management were facilitated using Galliers and Sutherland's Revised 'stage growth' model. From each of the case studies, a generic value chain was formulated using Porter's value chain analysis. With the increasing trend in user involvement and IT awareness in the airline companies examined, a high level of acceptance in the adoption process of IT was observed. Intensive utilization of IT was noted in the usage pattern of IT in airline business activities. The following effects in their work processes were noted when IT was introduced: restructuring of jobs and personnel; reduction of time scale in operation; and marked increase in company profit through reduced costs, increased staff productivity and maximized resource utilization. These affirms the previously studied impacts of IT on other information-intensive businesses. Furthermore, IT was regarded as effectively supporting the critical success factors in passenger and cargo services. Passenger Reservation, Yield Management and Cost & Revenue Management were considered as 'strategic' applications in the airline business. Lastly, recommendations were presented on how an airline company can enhance its competitive advantage using IT as a 'strategic' tool.