Continental Airlines Case Study

Topics: Outsourcing, Airline, Continental Airlines Pages: 6 (1378 words) Published: April 30, 2015

Nova Southeastern University
H. Wayne Huizenga School
of Business & Entrepreneurship
 
Assignment for Course:
ISM 5085 - Enterprise Information Systems
Submitted to:
Professor Nainika Patnagakuni
Submitted by:
Jamal Ameen

Date of Submission:December 3, 2014
Title of Assignment: Continental Air Lines Case Study

CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student's Signature: Jamal Ameen

***************************************************************** Instructor's Grade on Assignment:
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Executive Summary
Continental Airlines set out to develop an enterprise data warehouse that would provide a single source of information and give employees quick access to key information about the business and its customers. CIO, Janet Wejman, recognized that the creation of a data warehouse was a strategic project and brought the development and the subsequent maintenance and support in-house. She also believed that the data warehouse was to be core to Continental’s business strategy and should not be outsourced. After careful consideration, Teradata was selected as the best vendor to meet Continental’s needs. Work on the Teradata data warehouse began, and after six months of development, the warehouse went into production in June 1998. The initial focus of the data warehouse was to provide accurate, integrated data for revenue management applications. As an example, before the data warehouse, only leg-based (a direct flight from one airport to another) data was available to the revenue management department, which severely limited the analyses that could be performed. This area could not track a customer’s itinerary from origin to destination when it involved more than one stop. The data warehouse integrated multiple data sources, including flight schedule data, customer data, and inventory data to support pricing and revenue management decision making based on journey information. After emerging from Chapter 11 bankruptcy at the beginning of the 90’s, Continental Airlines was looking for opportunities to reduce costs wherever possible. One cost cutting move Continental sought out was to outsource some of their operations to make processes more efficient for their customers and the company itself. Continental entered into an agreement with a company called EDS. EDS, an HP company, is a leading global technology services provider, delivering business solutions to its clients. EDS founded the information technology outsourcing industry nearly 50 years ago. Today, EDS delivers a broad portfolio of information technology, applications and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries, and to governments around the world (Bilal 2009). The contractual agreement between both companies required that EDS provide data processing, systems development, system integration, hardware and software maintenance, telecommunications voice and data network services, and other telecommunications services. At the time it was signed, it was the largest outsourcing agreement in the world, worth approximately $2.1 billion during its ten-year life. The contract agreement between Continental and EDS began to have some issues because of certain factors that took place between both companies since the contract was agreed upon (Bilal 2009). There was a change in management at Continental where many of individuals who agreed upon the contract with EDS ultimately left the company. Tensions had developed between some of the Continental and EDS staff regarding...

References: Bilal, B. (2009, April 28). EDS, an HP Company, to help Continental Airlines Transform Flight Operations. Retrieved November 26, HP: http://www8.hp.com/us/en/hp-news/press-release.html?id=169645#.VBEfA_ldVS0
Buxbaum, P. (2002, July 29). Consider these five questions before terminating IT outsourcing
contracts. Retrieved November 26: http://www.computerworld.com/article/2576557/it- outsourcing/bringing-it-back-home.html
Pearlson, K. E., & Saunders, C. S. (2012). Managing & using information systems: a strategic approach. Hoboken: John Wiley & Sons, Inc.
Flinders, K. (2013, April 30). Investigating Outsourcing, An insiders view on the issues around outsourcing. Retrieved November 26: http://www.computerweekly.com/blogs/outsourcing/2013/04/insourcing---outsourcing-backsourcing.html
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