1. A Tale of Two Airlines in the Information Age
Interorganizational IS, databases, and global interconnectivity together creates platforms for higher service levels.
What assumptions did Prof. McPherson make regarding information technology support at the London-based airlines?
Do you believe they are realistic assumptions for the technology environment of the mid-1990s
What factors do you think lead to the difference between Prof. McPherson’s expectations and the reality of the situation?
What alternative approaches could have been taken to resolve the situation?
What were the differences between the Atlanta-based and the London airline’s approach?
In approaching the problem, did the Atlanta-based airline have any special advantages?
What advice would you give the London-based airline’s management?

2. A Tale of Two Airlines in the Information Age
What did Prof. McPherson assume the British Airway's gate agent would know about him and what are the enabling technologies that would be required to execute them?
Assumptions
Enabling IT
Ticket Fare
The reservation record (stored in London or downloaded to a USA server
Gold Card Member and a regular patron
The reservation system should have his Gold Card data and should be able to use it to their advantage
That they will know he is on a connecting flight and the data on the connecting flight.
Integration of two computers reservation systems which historically had no need to be interconnected with one another. The information accessible will show when the plane touches down and when it actually attached to the gate

3. A Tale of Two Airlines in the Information Age
What are the possible service alternatives for British Airways?
Hold the airplane for Prof. McPherson
Hold the plane at the gate until the scheduled departure time
Send an agent to meet McPherson at his arrival gate and attempt to get him to the plane.
Have an agent at the London-based Airways departure gate briefed on McPherson’s situation and action alternative in hand.
“we held the plane until last moment. We have reserved a seat for you on flight number and is there anyone in London we can call to notify them of your delay”

4. A Tale of Two Airlines in the Information Age
Delta (Atlanta-based airline) situation?
Different tradeoffs are possible in bad weather.
They held the plane for 15 minutes to pick up an extra 8 known connecting passengers.
There information systems had identified the 8, the time they needed to connect, plus analyzed the tailwind data
A clearly empowered gate staff and crew existed. Information, guidelines and training had allowed a partial transfer of operational decision-making to the customer interface
It is easier to do this at the hub than in the outlying regions. Service failures tend to take place at a distance.

5. A Tale of Two Airlines in the Information Age
Reaction from Chairman of British Airways in London
He had the head of British Airways in USA and his marketing manager visit Prof. McPherson three weeks later.
What do you think will be the focus of the discussion?
Inflexibility of the British Airways information architecture
Difficulties of getting London-based files and other airline data to the gate agent
Conflict between operational excellence and now the additional need for high touch customer service
Facilitated by flexible use of the new technologies

6. A Tale of Two Airlines in the Information Age
The bottom line of this case is that in the information age, the expectation of what constitute good service have increased dramatically. Making it happen seamlessly requires the integration of large amount of different technologies and databases being passed across organizations in a seamless fashion.
The new technologies require fundamental changes in training and attitudes. One airline had done it and the other had experienced a collapse in outlying region.
In the today's networked economy business environment distance is no longer an excuse for inferior customer services
There has been an increased in global customer and global business customers
Customers are highly knowledgeable and therefore the level of expecting has increased significantly.
Ability to use IT appropriately (including empowerment) will continue to be a source of completive advantage.

7. Targeting IT-Based Investment
High
Increasing
operating
performance
Catch up
Manufacturing gap
versus industry leader
Increase flexibility, responsiveness
Differentiate product and services
Maintain Advantage
Low
Low
High
Services / Marketing gap versus industry leader
Different competitive investment strategies facing industry players as they
consider there position versus industry leaders.

8. Targeting IT-Based Investment
Type A:
Used IT to transform marketing and production and the organizational design and management process required to support IT-based investment
Strong leadership
Senior business leaders assume responsibility for planning and executing IT strategy for the firm
IT is defined as a core capability of the firm. x

9. Targeting IT-Based Investmentx
Type B:
Used IT to support manufacturing and logistics
IT investment are targeted towards streamlining, integrating, and coordinating production and distribution while controlling costs and improving quality
Strong relationship between IT and senior management must be in place to support the requirement for interfunctional integration.

10. Targeting IT-Based Investment
Type C:
The challenge to better different their products and services to meet the needs of ever more-focused markets.
The ability to capture detailed data on individual buyer preferences, competitor prices, and product moves is crucial.
Strong IT and general management links are needed to assure success. x

11. Targeting IT-Based Investmentx
Type D:
Deed catch up situation, outmaneuvered by competitors on both sides.
Comprehensive, coordinated efforts are needed to achieve a defensible competitive position.
Long lead time and high capital investment costs often create a situation so serious that the survival of the corporation is at stake.
Massive IT investment needed to maintain competitive position within the industry served to ‘weed out’ competitors that failed to recognize early, the opportunities that IT would provide for integrating operations, identifying and meeting customer expectations, and differentiating products and services. (e.g. People express)

12. Categories of Strategic Relevance and Impact
A contingency appropriate to IT management.
High
Factory
Strategic
IT are important but they
are not fundamental to the
firms ability to compete.
Totally depending on it
Strategic Impact of
existing IT system
Support
Turnaround
Strategic Impact of IT
on operations and future
strategy is low.
Not absolutely depending on
totally uninterrupted,
fast response-time.
Low
Low
High
Strategic Impact of IT applications under development

13. Categories of Strategic Relevance and Impact
High
Factory
existing operating systems
Strategic impact of
Turnaround
Strategic
Support
Low
High
Low
Strategic impact of
application development portfolio

14. Sourcing Policies for the IT Value Chain
Decision Criteria Pressure to “Make/Own” Pressure to “Buy”
Business strategy
IT application or infrastructure provides proprietary competitive advantage
IT application or infrastructure supports strategy or operations, but is not considered strategic in its own right
Core competence
Information/ process security and confidentiality
Availability of suitable partners
Availability of packaged software or solutions
Cost/benefit analysis
Time frame for implementation
Evolution and complexity of the technology
Ease of implementation