How Kenya Airways Limited Has Used Information Technology to Increase Its Market Share While Enhancing Quality

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HOW KENYA AIRWAYS LIMITED HAS USED INFORMATION TECHNOLOGY TO INCREASE ITS MARKET SHARE WHILE ENHANCING QUALITY

BY
(MBA/GC/355/11/12)
MARTIN KETIENYA

COURSE CODE: CMM 510
COURSE TITLE: MANAGEMENT INFORMATION SYSTEMS
MAY 2012

ABSTRACT
Kenya Airways was at a crossroads in 2006. A hunger for new markets prompted air carriers from the Middle East and Asia to expand aggressively into Africa. So Kenya Airways executives responded—putting in place an expansion plan of their own, designed to make the company the leader in intra-Africa air traffic by 2009. But the managers included an important stipulation—find a way to fuel growth without significantly expanding back-office operations, particularly in the finance, human resources, and supply chain management departments. The challenge for Kenya Airways was to consolidate heterogeneous systems within the organization. What the airline needed was a system platform that would provide integration for processes throughout the organization’s departmental systems.

This paper highlights a brief description of the company. It then proceeds to give a brief overview of what quality means for Kenya Airways as a company. Consequently, it illustrates how the company has effectively employed as information system platform to improve quality and efficiency. It concludes by giving a succinct summary why information systems are important for organizations today and a conclusion underscoring Kenya Airways as an innovative organization in the use of information systems.

Table of Contents
ABSTRACTi
1.0 INTRODUCTION1
1.1 Company Profile1
1.2 What quality means for Kenya Airways1
2.0 Information Technology effectively employed at Kenya airways2
2.1Why the Oracle Enterprise Resource Planning system2
2.2 Impacts of the use of the information system on business performance3
2.2.1 Human resource Management3
2.2.2 Finance3
2.2.3 Procurement and inventory management3
2.2.4 Better administrative processes4
2.2.5 Divisional integration4
3.0 Summary4
References6
APPENDICES7
Appendix 1: The Kenya Airways passenger services and customer care panes7
Appendix 2: The flight booking self -service systems pane8
Appendix 3: The i-recruitment pane9

1.0 INTRODUCTION
1.1 Company Profile
Kenya Airways is Kenya’s National flag carrier first established in February 1977 following the breakup of the East African Community and subsequent disbanding of the East African Airways. In 1996, shares were floated to the public, and the airline started trading on the Nairobi Stock Exchange. In October 2004 the company cross-listed its shares on the Dar-es-Salaam stock exchange. In April 2004, the company re-introduced Kenya Airways Cargo as a brand and in July 2004, the company's domestic subsidiary Flamingo Airlines was re-absorbed. In March 2006, Kenya Airways won the 'African Airline of the Year' Award for 2005, for the fifth time in seven years. On September 4, 2007, SkyTeam, the second-largest airline alliance in the world, welcomed Kenya Airways as one of the first official SkyTeam Associate Airlines. In 2008 it won the Company of the Year award for strategic planning and emergency preparedness, as well as Manager of the Year to Director Paul Kasimu. Travel News & Lifestyle Magazine voted Kenya Airways as African Airline of Choice, Best Regional Airline, Flying Blue voted the best Frequent Flier program and Msafiri - Best in-flight magazine. Currently, the company is headed by Titus, Chief Executive Officer and Managing Director. One of Africa's leading airlines, Kenya Airways transports passengers and cargo to about 40 destinations, primarily in Africa but also in Europe, the Middle East, and the Asia/Pacific region, from its hub in Nairobi. Some markets are served under code-sharing agreements with partners such as Air France, KLM, and Korean Airlines. (Code-sharing enables airlines to sell tickets on one another's flights and thus extend their...
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