Tale of Two Airlines in the Network Age or Why the Spirit of King George Is Alive and Well

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1. Executive Summary

Information Technology has revolutionised the way we do business, interact, share and control information. The avenues for business are endless, from new markets, to new, innovative practices and approaches that enhance profitability, customer satisfaction and afford a competitive advantage. It has become an integral part of our everyday lifestyle, it is therefore pivotal that businesses stay up to date with new technologies in the market, the ever changing internal and external environments of business demands this change.

Managers need to take cognisance of customer expectation and assumptions, the information technological support that is available, explore alternative approaches and their advantages, examine the value chain and their business model, analyse their environments and their strategy. In doing this, managers develop a better understanding of flexibility and innovativeness of the organisation. The abovementioned is rationalised in detail, the findings are summarised and appropriate recommendations are set out in the report. The report is based on a case study of Professor McPherson a “Tale of two airlines in the network age or why the spirit of King George is alive and well.” It serves as an appropriate illustration towards the understanding of why business needs to be flexible in terms of Information technology.

Contents                                                                        Page

Introduction ………………………………………………………......        3

Literature Review …………………………………………………….        3

Assumptions and expectations …………………………………….                4-5

Information technology support ……………………………………                5-6

Alternative approaches and advantages ...……………………...                6-7

Value chain ……………………………………………………………                7-10

Business models ……………………………………………………..                10-11

Environments …………………………………………………………                12-13

Strategy ……………………………………………………………….                14

Conclusions …………………………………………………………..                14

Recommendations …………………………………………………..                15

Bibliography ………………………………………………………….                16-17

1. Introduction

In his case study a “Tale of two airlines in the network age or why the spirit of King George is still alive and well”, Professor Roger McPherson articulates scenarios portrayed by two different airlines. In the case study, Professor McPherson is delayed by a security oversight, but finds solace in the fact that he is a Gold-card member and the reputation of the airline. Professor McPherson assumes in the network-age, the London-based airline would recognise him as a close-connecting passenger, with no bags and his substantial fare and his frequent air-time. Also, he expected that the agents to have all the information, more specifically, to know he was a first class passenger, a Gold Card member and that he had a connecting flight. Instead, they had no clue that he was and booked him for a later flight, which further augmented the time dilemma.

The report aims to evaluate facets of information technology highlighted in the case study, specifically, customer assumptions and expectations, the value chain, the environments, strategies and business models, provide recommendations, alternative approaches and their advantages and highlight the significance information support systems.

1. Literature Review

The report seeks to analyse aspects of information technology, namely, customer assumptions and expectations, which has a very limited scope of literature as opposed to the literature on information support systems, alternative approaches and advantages, the value chain, environments, strategies and business models. Customer assumptions and expectations will be probed in more detail.

1. Customer Assumptions and Expectations.

Customer expectations, according to Zeithaml, Bitner and Gremler (2006), are the perceived benefits that clients anticipate to get from the consumption of a particular good or service. Expectations are based on past and current experiences, say Johnson and Mathews (1997:290-305).  The notion is supported by the Yongchaitrakool, (2014). Yongchaitrakool recognises “experience” as having the most influence on customer expectation. Overall, six factors influence expectations: complete information, availability of alternatives, interaction, consultation and solid interpersonal relationships. Parasuraman, Berry, Zeithaml (1991:39-48), acknowledge that customers want everlasting relationships they explain that it as central to exceeding customer expectations. Parasuraman et al., further advocates that relations are pivotal for communication as it heightens customer satisfaction, leads to overall service improvements and preserves customer loyalty.

Expectations of Professor McPherson

With references to the case study Professor McPherson supposed hat he would be better off now than he was a decade ago, this presumption was based on the fact that we live in the “network age”. In basic terms, Information Technology systems are more advanced today. Professor McPherson endorsed several assumptions and/or expectations. Firstly, he had expected that they would know is a regular client. Secondly, that he had a connecting flight, and they are aware of the arrival and departure times, so that he connects his flight in time. Thirdly, because he is a gold member, the data should have been available on their reservation system. Also, Professor McPherson expected to arrive on time at his destinations. Lastly, because he pays more to be in first class, even “on moderately-loaded-flights”, he expects exclusive treatment and a certain standard of behaviour.