The Impact of Technologies Innovation on Airlines Travel and Transportation Business
Research Proposal Introduction: The proper management, of transportation, supply chain, satisfaction and good relationships (Zsolt KELEMEN, 2003), inventory, and procurement systems (Dimitrios Buhalis, 2003), is vital in the key success of an organization. Industries in the present times are focusing upon better approaches for the better management of their infrastructure. For generating good revenues the industry leaders are adopting Innovative Technologies and latest business techniques in the global market. In recent times, the availability of technology in airlines travel and transportation business has become a necessity as these organizations concentrate on getting and retaining the competitive advantage in the market.
In the traditional business systems the procurement processes and the collaboration and coordination among business partners are not very strong but with the integration of innovative technologies like IT the better ways and collaboration can be obtained. And for this problem “ the extranets were being gradually used for communicating with partners and to support business-to-business (B2B) relationships” (Dimitrios Buhalis, 2003). The issues of traditional procurement process, inventory management, finance (Dimitrios Buhalis, 2003) forced the organizations to adopt IT with the existing business system. In traditional approaches a very long time period is required to streamline the procurement processes but in case of electronic procurement this problem can be solved within limited time. The benefits of IT and innovative technologies are associated with procurement, product purchase, services and product delivery. Benefits associated with the information systems and ecommerce are distributed roughly and are more favorable for network leaders (Riggins and Mukhopadhyay 1994). All the industries are trying to reduce the overall expenditure of procurement processes without the awareness of innovative technologies. So there is the need to introduce the benefits of innovative technologies and its integration with the existing systems. Innovative technologies also play a vital role in reduction of costs (Alexander & Young, 1996, Domberger, 1998, Hallikainen, 2003).
IT can better help in the maturity of procurement processes in a very less time. IT has deeper impact upon economy (e. g. see Choudhury et al., 1998; Crowston, 1997; Ein-Dor et al., 1997; Pereira and Tavares, 1998; Wang et al., 1996) or cost component and generating revenues for the industry. The ultimate strategic goal behind the implementation of innovative technologies is return on investment (ROI).
There is also a problem of fast customer response, customer relationship (Blake Ives, Gerard P. Learmonth 1984) and the delivery of the product (like seat reservation or ticket cancellation) would also be slow but the innovative technologies would help to solve this issue in the form of information systems (Blake Ives, Gerard P. Learmonth 1984). The implementation of traditional scenarios is time consuming, the productivity rate is very slow and the levels of inventory are not low. There is also a major challenge of diverse properties so there is the need of a robust sort of electronic system because the demands and issues are different at different properties. The issues which are associated with technology adoption are the need of sufficient budget for the implementation of IT infrastructure, for its outsourcing and the need of sufficient budget for the training of the employees who are quite unfamiliar with these technologies (Larry G. Locke, 1989).
According to the above stated issues the adoption of IT infrastructure by any industry is very essential for the improvement of industry processes. My research question in this domain comes in the form like:
What are the issues which are faced by airline industry in the existing system and how the advent of innovative technologies like IT/IS, internet, e-procurement and bar codes would help to solve these problems or issues?
For this in my research plan I have included the existing research or literature in the domain of Airline industry. The lay out of my research consists of literature review, the basic concepts of transportation, supply chain, the integration of innovative technologies like IT/IS or e-commerce with existing system, the role of electronic procurement in the industries, the exploration of benefits which are associated with the adoption of IT/IS in airline industry and then at the end a case study from airline industry is presented.
In order to study the impact of technologies’ innovation on airlines and transportation industry, the research would be conducted by analyzing and evaluating different academic resources such as journals, articles, books and electronic resources. Furthermore, a primary data will be collected by interviewing national and international Airlines business as well as affiliated Travel Agency companies.
With the introduction of innovative technologies in the market like internet, e-procurement (Dimitrios Buhalis, 2003), and bar codes now it is possible that a firm can easily solve the issues of their transportation, supply chain and many others which are narrated above. Information Technology or e-commerce would play vital role in reducing the inventory levels, and would update the inventory within no time. The adoption of innovative technologies would surely have a positive impact on the industry that it would help in lowering the uncertainty, improvement in procurement system (Dimitrios Buhalis, 2003) and reduction in high costs (Williamson, 1975, 1981).
Alexander, M. & Young, D., (1996). Strategic outsourcing. Long Range Planning, Vol. 29: 1, pp. 116-119.
Blake Ives, Gerard P. Learmonth., (1984). The Information System as a Competitive Weapon. Reports and Articles, Vol. 27, No. 12, ACM.
Choudhury, V., Hartzel, K. S., Konsynski, B. R., 1998. Uses and consequences of electronic markets: an empirical investigation in the aircraft parts industry. MIS Quarterly 22(4), 471–507.
Crowston, K., 1997. Price Behavior in a Market with Internet Buyer’s Agents International Conference on Information Systems, Atlanta, GA, USA.
Dimitrios Buhalis., 2004. eAirlines: strategic and tactical use of ICTs in the airline industry. Information & Management 41 (2004) 805–825. Elsevier Science Direct.
Domberger, S., (1998). The contracting organization. A strategic guide to outsourcing. New York: Oxford University Press.
Ein-Dor, P., Myers, M. D., Raman, K. S., 1997. Information technology in three small developed countries. Journal of Management Information Systems 13(4), 61–89.
Hallikainen, P., (2003). Evaluation of information system investments. Helsinki School of Economics and Business Administration – HeSe print 2003.
Larry G. Locke., 1989, Flying the Unfriendly Skies: The Legal Fallout Over the Use of Computerized Reservation Systems as a Competitive Weapon in the Airline Industry. Harvard Journal of Law and Technology. Vol 2
Mike W. Chiasson, Elizabeth Davidson., 2005. Taking Industry Seriously in Information Systems Research. MIS Quarterly Vol. 29 No. 4, pp. 591-605
Mukhopadhyay, T., Kekre, S., and Kalathur, S., 1995, Business Value of Information Technology: A Study of Electronic Data Interchange,. MISQuarterly (19: 2), pp. 137-157.
Pereira, M. J., Tavares, L. V., 1998. Linking the European Monetary Union and the Information Systems Strategy of Financial Institutions: A Research Approach to Understand the Changeover International Conference on Information Systems, Helsinki, Finland.
Wang, Y.-M., Gallaugher, J., Vasudevan, S., 1996. The Determinants of Network Growth: The Case of Commercial Online Information Networks International Conference on Information Systems, Cleveland, OH, USA.
Williamson, O., 1975. Markets and Hierarchies: Analysis and Antitrust Implications, The Free Press, New York.
Williamson, O., 1981. The economics of organization: the transaction cost approach. American Journal of Sociology 87, 548–577.
Zsolt KELEMEN., 2003. Latest Information Technology Development in the Airline Industry. Periodical Polytechnica Ser. Transp. Eng. VOL. 31, NO. 1–2, PP. 45–52 (2003)