Cathay Pacific Doing More with Less
Lecture 16
Cathay Pacific Doing More with Less
Announcements
• Final Exam vote
2
Final Exam Outline
• 8-11am, Wednesday June 13 • Half short and long answers on theory and principles from course • Half case-study • Open or closed book???
3
Cathay Pacific Characteristics
• Mid-tier airline • 15,000 staff, 77 wide body aircraft • Old airline – 50 years history
– Vulnerable to cost cutting airlines
• Global everywhere except China
– Lost landing rights in 1984 – Geographically next to largest market but cannot access
• Excellent reputation for service • Historically profitable • Joined OneWorld alliance, increasing USA flights 30%
4
IT at Cathay Pacific: 1970s
• Standalone development and operations activity • Strategic value, attracted best IT staff • Homegrown reservation system sufficiently good that Cathay sold to other Asian airlines • Large computing center, 10-12 mainframes running 24/7 • Independent with large no. of developers • Fun place to work • IT building leading-edge systems, valued in company (still there as legacy today)
5
IT at Cathay Pacific: mid/late 1980s
• From develop/operate to acquire and manage • IT no longer used to differentiate • SITA handle complex telecom needs globally
– Telecom is often first IT area to be outsourced
• Began move from design and coding to acquiring packages and deploying • Department name changes from “systems development and support” to “systems delivery” • Emphasis on faster, cheaper, lower risk installations • Less exciting employer for young tech staff • Operations expanded to three data centers • Issues of control intensified with 1991 fire in data center • Mid-size player and IT not sustainable competitive advantage
– IT more of a necessity – Challenge to be quick follower instead
6
IT at Cathay Pacific: 1990s
• Continued trend from 80s • Already outsourcing other core functions such as medical clinics, elevator repair for
Cathay Pacific Doing More with Less
Announcements
• Final Exam vote
2
Final Exam Outline
• 8-11am, Wednesday June 13 • Half short and long answers on theory and principles from course • Half case-study • Open or closed book???
3
Cathay Pacific Characteristics
• Mid-tier airline • 15,000 staff, 77 wide body aircraft • Old airline – 50 years history
– Vulnerable to cost cutting airlines
• Global everywhere except China
– Lost landing rights in 1984 – Geographically next to largest market but cannot access
• Excellent reputation for service • Historically profitable • Joined OneWorld alliance, increasing USA flights 30%
4
IT at Cathay Pacific: 1970s
• Standalone development and operations activity • Strategic value, attracted best IT staff • Homegrown reservation system sufficiently good that Cathay sold to other Asian airlines • Large computing center, 10-12 mainframes running 24/7 • Independent with large no. of developers • Fun place to work • IT building leading-edge systems, valued in company (still there as legacy today)
5
IT at Cathay Pacific: mid/late 1980s
• From develop/operate to acquire and manage • IT no longer used to differentiate • SITA handle complex telecom needs globally
– Telecom is often first IT area to be outsourced
• Began move from design and coding to acquiring packages and deploying • Department name changes from “systems development and support” to “systems delivery” • Emphasis on faster, cheaper, lower risk installations • Less exciting employer for young tech staff • Operations expanded to three data centers • Issues of control intensified with 1991 fire in data center • Mid-size player and IT not sustainable competitive advantage
– IT more of a necessity – Challenge to be quick follower instead
6
IT at Cathay Pacific: 1990s
• Continued trend from 80s • Already outsourcing other core functions such as medical clinics, elevator repair for