Real Time Business Intelligence at Continental Airlines
1. Describe “active” data warehousing as it is applied at Continental Airlines. Does Continental apply active or real-time warehousing differently than this concept is Normally described? Explain your answer.
Answer: as shown in the case Continental senior management decided to invest in enterprise data warehouse that all employees could use for quick access to key information about the business and its customers. The data warehouse initial focus was to provide accurate integrated data revenue management. At Continental they moves real-time data, ranging from to-the-minute to hourly about customers, reservations, check-ins, operations and flits from its main operation system to the enterprise data ware house. Following are the few key applications that rely on real-time data. Fare design: continental understands how important it is to offer competitive prices for the flights to desired places at convenient times. Continental uses real-time data to optimize airfares using mathematical programming models. These helped continental improve the ability to estimate the impact of fare sales and these activities have been estimated to earn $10 million annually. Customer relationship management: continental marketing department uses the warehouse for customer segmentation and target marketing, loyalty, retention management, customer Acquisition and campaign management, in addition marketing has also created other innovative CRM applications that leverage the warehouse’s real time capabilities. a targeted CRM program resulted in $150 million in additional revenues in one year , while the rest of the airlines industry declined 5 percent. Customer value analysis: a customer value model using frequency, regency and monetary value gives continental an understanding of its most profitable customers. Over the past years, a goal was to increase the amount of travel by continentals most valuable customer travel. There has been an average increase in travel of $800 for each of the top 35,000 customers. (Managing information technology, 2009, P.315) Marketing insight: at continental airlines the marketing insight clearly shows that it is developed to help sales personnel, marketing managers and flight personnel with customer profiles. They can see how much someone has traveled with continental and what the person’s value is to airline. Fraud detections: Continental uses its warehouse to identify reservations that are not in fare and contract Compliance and to profile suspicious booking and ticketing transactions. Fraud also includes the Blocking of seat inventory, the selling of tickets at prices lower than allowed. Fictitious booking records, fraudulent lost baggage claims, and One Pass account redemption abuse. Airline security is also supported by the Continentals real-time data warehouse. Around $30 million in the last three years was identified and prevented from the fraud in Continental. This includes more than $ 7 million in cash collected. (Managing information technology, 2009, P.318) In my opinion continental apply real-time warehousing, Powered by a real- time data warehousing and strong management leadership around data, deploying applications in revenue management, customer relationship management, flight and ground operations, fraud detection, security, and others. Because of this the company has dramatically changed all accepts of its business. Reference: (Managing information technology, 2009, P.315,316,218,321) 2. In what ways does real-time data warehousing fit with the Continental strategy and plans And describe some of the specific benefits they have realized from its implementation? Ans: in my opinion the real- time data warehousing and strong management leadership around data. Fit with the Continental strategy and plans, by deploying applications in revenue management, customer relationship management, flight and ground operations, fraud detection,...
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