Jet Blue Hits Turbulence
Saul Ruiz
MGMT 320
Jet Blue Hits Turbulence
Case Study
1. What types of information systems and business functions are described in this case?
The information systems and business functions described in this case are Transaction Processing Systems (TPS), Customer Relationship Management Systems (CRM, and Executive Support systems (ESS). The TPS system is responsible for tracking ticket reservations and transactions. The CRM systems provide customers the ability to communicate with JetBlue and acquire updated flight information such as cancellations and delays. The ESS system provides senior management a way to address strategic issues and planning based on results provided by the systems.
2. What is JetBlue’s business model? How do its information systems support this business model?
JetBlue’s business model was based on providing luxury and excellent customer service at the lowest price in comparison to other airlines. Jetblue was able to provide this luxurious flying experience by investing and using information systems. These systems automated the process of ticket sales, and baggage handling, they were also used to manage planes, crews and scheduling.
3. What was the problem experienced by JetBlue in this case? What management, organization, and technology factors were responsible for the problem?
A fierce ice storm hit New York City and caused an enormous crisis for Jet Blue. The first problem was management; they were more interested in making a profit than in ensuring they had systems that could handle an increased amount of transactions if needed. They spent 1.5 percent of revenue on information technology while their competitors were spent 5 percent. Senior management assumed they had learned to work lean and smart based on the success they were having. In an effort to maintain their reputation Jet Blue avoided cancellation of flights while there competitors began to cancel. Weather conditions and delays caused
MGMT 320
Jet Blue Hits Turbulence
Case Study
1. What types of information systems and business functions are described in this case?
The information systems and business functions described in this case are Transaction Processing Systems (TPS), Customer Relationship Management Systems (CRM, and Executive Support systems (ESS). The TPS system is responsible for tracking ticket reservations and transactions. The CRM systems provide customers the ability to communicate with JetBlue and acquire updated flight information such as cancellations and delays. The ESS system provides senior management a way to address strategic issues and planning based on results provided by the systems.
2. What is JetBlue’s business model? How do its information systems support this business model?
JetBlue’s business model was based on providing luxury and excellent customer service at the lowest price in comparison to other airlines. Jetblue was able to provide this luxurious flying experience by investing and using information systems. These systems automated the process of ticket sales, and baggage handling, they were also used to manage planes, crews and scheduling.
3. What was the problem experienced by JetBlue in this case? What management, organization, and technology factors were responsible for the problem?
A fierce ice storm hit New York City and caused an enormous crisis for Jet Blue. The first problem was management; they were more interested in making a profit than in ensuring they had systems that could handle an increased amount of transactions if needed. They spent 1.5 percent of revenue on information technology while their competitors were spent 5 percent. Senior management assumed they had learned to work lean and smart based on the success they were having. In an effort to maintain their reputation Jet Blue avoided cancellation of flights while there competitors began to cancel. Weather conditions and delays caused
References: Laudon, K. C., & Laudon, J. C. (2010). Management information systems: Managing the digital firm (11th ed.). Upper Saddle River, NJ: Pearson.