Kenya Airways Case Study

Topics: Enterprise resource planning, Management, Strategic management Pages: 5 (1706 words) Published: June 24, 2013
MULTIMEDIA UNIVERSITY OF KENYA
FACULTY OF BUSINESS
BACHELOR OF COMMERCE YEAR 2
UNIT: INFORMATION SYSTEMS ANALYSIS AND DESIGN
NAME: MARYANN WAMBUI
REG NO: BUS-241-088/2012
ASSIGNMENT 1
TITLE: HOW COMPANIES USE BUSINESS SYSTEMS TO ACHIEVE COMPETITIVE ADVANTAGE: KENYA AIRWAYS CASE STUDY

DUE DATE: 26th MAY 2013
LECTURER: PIUS WALELA

Introduction:
An information system refers to an arrangement of people, data processes and interfaces interacting to support and improve day-to-day business operations. Information systems should also support the problem solving and decision making needs of various levels of management as well as end users. Business information systems are the foundation for conducting business activities today. In most industries, the survival and even existence of an enterprise is difficult without extensively incorporating information technology. Information systems have thus become a crucial requirement in helping organizations operate in the global economy. On the other hand, organizations are trying to gain a competitive advantage and efficiency by transforming themselves into digital firms where nearly all core business processes and relationships with suppliers, employees and customers are digitally enabled. Businesses today use information systems for the achievement of six major objectives: gain operational excellence, create new products, services and support new business models, promote customer/supplier intimacy, improve decision making, gain competitive advantage and for day-to-day business survival. Business systems at any organizational level that help change the goals, products, operations, services or environmental relationships that help an organization gain a competitive advantage are known as strategic information systems. Traditional strategy models are now being modified to accommodate the impacts of digital firms and information flow. Before digital firms emerged, business strategies emphasized on head-to-head competition against other firms in the same marketplace. Today, emphasis is increasingly on exploring, identifying and occupying new niches in the market before competitors, understanding the customer value chain better and learning faster and more deeply than competitors. In order to achieve this, enterprises have to streamline the business processes and incorporate various business systems at various management levels including operational, middle and top level. In order to maintain global relevance and compete internationally, companies and governments have adopted the use of information systems in various sectors. Kenya as a country is rapidly evolving in terms of technology by incorporating business systems into daily business activities and communication. This high uptake of technology by firms has led to stiff competition between various enterprises. A good example is supermarkets and commercial banks that have automated all their systems to manage inventories, process transactions, record keeping and decision making. My area of interest happens to fall in use of business systems by airlines. This is a major business, in which there is stiff competition. A good example of one of the major airlines is the Kenya Airways. CASE STUDY: How the Kenya Airways airline has successfully used Enterprise Resource Planning (ERP) systems to achieve competitive advantage. The Kenya Airways (KQ) is the flag-carrier airline of Kenya. It has been in operation since 1977 and has since grown to operate more intra-Africa flights than any other African airline. In addition, the carrier has flights to Middle Eastern cities, Europe, Asia and the Far East. KQ’s head offices are based in Embakasi, Nairobi and its hub at the nearby Jomo Kenyatta International Airport (JKIA). In terms of competition and influence, the Kenya Airways has expanded its influence in the Kenyan market by aligning with small carriers as it seeks to build its home base Nairobi as a continental hub. This...
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