Global Connections Through Technology Essay Example
Question One: Etihad Airways Business Model
The diagram below shows the Etihad business model showing how the company can automate its customer services such as reservation, rescheduling, loyalty program, analysis of business performance by management and linking its business information system with global agency.
The rectangles represents task or operations initiated by human user or automated programmes that executes user command. The cylinder represents decision making, storage and processing of data. Lastly, the arrow represents direction in which the information flows. The double arrow shows information moving in the same direction but single arrow only flows in one direction.
Question Two: Unification Business Operation
The company operating in global platform requires a unification business operating model which helps in globally integrating process and systems since it may have business units with overlapping operation. Therefore, it is essential to centralize process designs and decisions. The model creates a strong interdependence between units and extensively centralized management model. The diagram below shows a prototype that Etihad airline can adopted.
Source: Adopted from Delta Airline documents
Etihad has demonstrated that it embraces technology in simplifying its operations, reducing costs and improving service delivery to its customers. The leadership capabilities of the company are at an advanced stage. Though, little is done to enhance digital skills of the airline. However, it has excellent prospects for making improvement in future. Therefore, Etihad Airline analysis places the company in the conservative quadrant. The company has proved to have adamant governance across its entire operation due to few instances of fraud, constant and immediate response to customer complaints, persistent growth in profit and business activity are just but a few of strengths demonstrated by airline corporate governance through the formulation of sound strategic plans. The incorporation of information technology in business with weak governance structure often results to huge scandals such as loss of confidential information of customers and company. The company has taken significant steps in ensuring that its clients stay safe online by informing them on the type and how to detect online scum and thus demonstrating sound steps put in place to ensure that growth in digitization of company operations does not affect the customer in any way. Also, the steps taken by the airline to partner with the specialist in the technological world such as Adobe have proven that the company has plans in place to build a sophisticated digital platform in the airline industry. The current business information system such as online booking and scheduling of flights shows an overarching digital vision that can accommodate future advances in creating an all-embracing technological business model. Though, the business model still uses a few traditional capabilities. It is evident that the company is working on entering into digital master to give it a competitive advantage with its competitors in the airline industry.
The digital masters can demonstrate advanced capabilities in both leadership and digital platform. The qualities of digital masters include good governance, an increase in value due to numerous digital initiatives which are measurable, a strong digital culture and sound overarching digital vision. Etihad Airline has taken some steps that will see the company become a digital master in future. As mentioned above, the partnership with Adobe one of the signs that the company vision targets all-embrace of improving company digital transformation. The partnership was signed in October last year and it targets improvement of customer loyalty program, social media channels, direct sales and marketing. Also, Adobe will ensure that global operations of the company are integrated into a seamless process to enhance efficiency and reduce operation cost.
Besides, the company entered into collaboration agreement last year with Accenture to support the implementation of the company business transformation program. The Accenture works with SAP which is Etihad technology partner. The primary mandate is to implement Enterprise Resource Planning software and transfer knowledge of use to the Airline staff.
In conclusion, we note that the technological advances of Etihad Airline have well planned and executed due to the availability of strong governance. Therefore, it is evident that the company will be a digital master in the airline industry in future.
Ross, J. W., Weill, P., & Robertson, D. (2006). Enterprise architecture as strategy: Creating a foundation for business execution. Harvard Business Press.
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