Managing Information Systems

Topics: Low-cost carrier, Airline, Malaysia Airlines Pages: 24 (8449 words) Published: June 28, 2013
Table of Contents
1.0 INTRODUCTION3
2.0 OVERVIEW OF ORGANIZATION…3
2.1 Organization background3
2.2 Organization Missions and Objectives4
2.3 Organization Business Strategies and Success factors5 2.3.1 AirAsia’s Business Strategy5
2.3.2 AirAsia Success factors6
2.5 Analysis on AirAsia Porter's Five Forces Model8
2.5.1 Bargaining Power of Supplier8
2.5.2 Bargaining Power of Buyer8
2.5.3 Threats of Substitutes9
2.5.4 Threats of New Entrants9
2.5.4 Rivalry Intensity9
2.6 Problem Statement9
3.0 ANALYSIS AND IDENTIFICATION OF AIRASIA’S IS STRATEGIES11 3.1 Yield Management System12
3.2 Enterprise Resource Planning System13
3.3 Advanced Planning and Scheduling System14
3.4 Electronic Flight Bag System15
3.5 Customer Relationship Management System17
3.6 AirAsia Vista Gadgets18
4.0 ANALYSIS OF BUSINESS PROCESSES AND THE IS SYSTEMS IMPLEMENTED IN AIRASIA20 4.1 Booking20
4.1.1 Travel Agency booking20
4.1.2 Online booking21
4.1.3 Mobile reservation23
4.2 Transactions24
4.2.1 FXmicropay Pricing E-platform System25
5.0 IMPACT ON THE USAGE OF IT/IS BY AIRASIA27
6.0 CONCLUSION29
7.0 REFERENCES30

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1.0 INTRODUCTION
Nowadays, the use of information technology plays a vital role for businesses to compete and be successful between rivals. According to Laudon and Laudon (2010), almost the all firms and organizations use information technology to survive; they invest in information technology and systems because these investments will return a lot of advantages, such as; high increase in productivity and revenue, decrease in costs and losses. Information systems provide information for managers which help them to make better decisions and improve operations. This assignment will look at the largest low cost carriers in Asia Pacific region – AirAsia Berhad, which is known as AirAsia. This work will be analysed how AirAsia has successfully used information technology and systems to improve their business. In addition, this paper will look to IT strategies of AirAsia and to some businesses processes within organization where information systems were successfully implemented. 2.0 ORGANIZATION OVERWIEV

2.1 Organization background
“If you want to understand today, you have to search yesterday” Generally, without past, there is no future and everything in our life has his history. Thus, it is brief AirAsia’s background: First of all, AirAsia was founded in 1993 by Malaysian government as a second airliner to the major national air company MAS (Malaysian Airlines) and AirAsia started operating after three years on 18th November 1996.During the following 5 years, AirAsia failed every year to bring profit, as a result; AirAsia had a great debt of about USD $ 37 million in 2001. However, this time is the time when the real story of the largest low-cost airlines began. In 2001, Dato’ Sri Dr Tony Fernandes with partners Dato’ Pahamin Rejab (former chairman of AirAsia), Dato’ Kamarudin Meranun, and Dato’ Aziz Bakar purchased the AirAsia from Malaysian owner HICOM Holdings Berhad (now known as DRB-HICOM Berhad), for a symbolic price RM1 (USD 0.25 cents), and agreed to close the debts of the company. (AirAsia Annual Report, 2008, p.3) They started with an innovative goal to make air travel cheaper and more affordable to people that “Now Everyone Can Fly”. AirAsia was re-branded and re-launched and started new life with two Boeing B737 planes, approximately 250 staffs and had only five destinations to Kota Bahru, Kota Kinabalu, Kuching, Labuan, Langkawi and Penang. According to AirAsia website, today after 10 years AirAsia has around 100 air planes and flies to more than 60 destinations from 23 countries. Additionally, AirAsia operates more than 3,500 flights a week and has around 8,000 staffs. In 2009 AirAsia ferried more than 22 million passengers and AirAsia is ASEAN (Association of South...

References: 2) AirAsia Annual Report, (2008), Available from URL:http://www.airasia.com/iwov-resources/my/common/pdf/AirAsia/IR/AA%20Corporate%202008.pdf.
3) AirAsia Annual Report, (2009), Available from URL:http://www.airasia.com/iwov-resources/my/common/pdf/AirAsia/IR/AirAsia_AR09.pdf.
4) AirAsia website, “Ask AirAsia”, Available from: http://www.AirAsia.com/ask/
5) Amadeus Press, (2009), “Amadeus boosts AirAsia’s global expansion” Available from: URL: http://www.amadeus.com/us/x167793.html
8) Asean Affairs, (2010), “AirAsia to unveil state-of-the-art booking system”, Available from: URL:http://www.aseanaffairs.com/press_releases/AirAsia_to_unveil_state_of_art_booking_system
9) Asia Pacific Aviation
14) Eptica Self Service System Flyer. (2011), Available from: URL: http://www.eptica.com/IMG/pdf/ESS_Factsheet.pdf
15) Flight Focus corporate website, URL:http://www.flightfocus.net
19) Khalid A., (2007), “ 'Gadget ' to track AirAsia deals”, The Sun newspaper, Available online, from: URL: http://thestar.com.my/news/story.asp?file=/2007/2/2/nation/16747753&sec=nation
20) Kho C, Aruan S.H., C
21) Laudon K.C., Laudon J.P., (2010) Management Information Systems, Managing the digital firm, (11th Edition), New Jearsey, Pearson Prentice Hall.
24) Mobile Travel Technologies corporate website, Available from: URL:http://mttnow.com/
Msnbc Digital Network, (2011), “Eptica Enables AirAsia to Reach New Heights for Social Customer Service”
26) Navitaire corporate website, Available from: URL:http://www.navitaire.com/
27) Navitaire Product Brochure, (2010), Available from: URL: http://www.navitaire.com/res_and_dist/download_new_skies.htm
The Star Online, (2010), “AirAsia to offer multi-currency e-ticketing system”, Available from:
31) URL:http://biz.thestar.com.my/news/story.asp?file=/2010/5/13/business/6250785&sec=business
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