MIS (Sharif)

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2010

IT Management

(A Case study of British Airways)

Submitted by,

KCB ID:

K E N S I N G T O N C O L L E G E O F B U S I N E S S



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Contents

Page No.

Introduction 2

Information system in modern business management 4

Analysis-planning-implementation-control 5

Information and the decision making 7

Organization information system 9

Stages of decision making 10

A Case Study ± British Airways 12

British Airways¶s Information System 13Fig 1.2: MIS level of planning 14

Fig 1.4: MIS level of planning (British Airways) 15

A.1 Strategic Information System 16

B.1 Tactical Information System 17

C.1 Operational Information System 19

Conclusion 21

References 22

Bibliography 22

Web links 23



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INTRODUCTION:

Information system is the vital element of any business and it provides the modern up to date

information¶s to the marketers in their strategy of planning, analyzing and finally the proper

implementation in their in the effective way. The information systems, internet system,

telecommunications, forecasting and financial analyses etc. are all the constituents of the

information technology.

A number of constituents build the Information system and its ranged from the human being and

the machine (mainly computers). Human brain takes the strategic decisions and as per thedecisions, the demands are resulted by the machines and finally implemented. Collection of the

data, storing, analyses, communications etc. brings efficient management to the business.

The modern informational technology has given a better opportunity to communicate with the

buyers-sellers at a rapid and efficient way. The success rate depends on the proper integration of

peoples, information technology, internet, processes and their proper implementation too. A

successful develops its business policy, style and the ways of doing business.



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INFORMATION SYSTEM: IN MODERN BUSINESS MANAGEMENT

ANALYSIS-PLANNING-IMPLEMENTATION-CONTROL (APIC)

Analysis:



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Analysis is one of the most important factors of Managing Information System in the company.

The management have to find out and recognize the weakness and strength of the company and

have to collect the strategic data from every sector. Then the data are analyzed through the

information technology and effective measures are taken into account.

Plan:

The analysis helps to plan the strategies for the company to implement for its success. The plan

are planned according to the managerial decisions that based on the analytical results about the

company¶s various sectors. An effective planning and successful implementation can lead the

company to its future development.

Implement:

The plan that has been taken based on the analytical values is subjected to the implementation

according to the company¶s strategies. Implementation involves the various departments of the

company as the finance, purchase, audit, and different peoples from different sectors etc. So the

implementation is not an easy task and it needs due monitoring at all times. The information

system directly helps to implement as it gives access to all of the sectors and helps to proper

monitoring.

Controlling:

The implementation needs to control in all the sectors according to the necessity. The successes

of the implementation of the strategies are achieved by controlling of it. The controlling data are

required to further analysis, planning and any changes to it and proper modified implementation.

The software designated to it monitors and keep records of the company¶s data and helps in

controlling.



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Different types of information systems exist in the different level of organizations. The main

classifications are as follows:

1. TPS ± Transaction Process System

2. MIS ± Management Information System

3. DSS ± Decision Support Systems

4. ESS ± Executive Support Systems

A CASE STUDY

BRITISH AIRWAYS

The establishment of British airways were found in the early 25th

August, 1919 on World war I

its forerunner company AT&T (Aircraft Transport and Travel Limited) and it had launched the

first daily international air services between the London and Paris in the world. It had carried

only one passenger and a cargo that were loaded with the newspapers, Devonshire cream and

grouse from the Heathrow base and thad taken two and half hours to reach le Bourget in Paris.

Though it has faced the passenger crisis with the highest travel fare, it was operating in full

swing.

The result of the formation British Caledonian in 1970 formed by taking over of the original

Caledonian airways by British United Airways. After two years the British overseas airways

corporation (BOAC) and the British European airways (BEA) were combined under the name of

British Airways in 1974.

In the February of 1987 British airways was privatized. More than one million applications were

received for the shares in the airline.

Now a days the British airways operating in more than 130 countries and cities around the world

with its 600 offices and destinations. By means of adapting with the new technology in the

business system and proper planned system that led the dramatic improvement in the current

operation in the British airways.



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British Airways¶s Information System:

The highly efficient management information system in the British airways is highly organized,

co-ordinated and highly controlled. The various levels of management in the British airways are

always updated and it has strategic planning for everyday operations. The information in the

British airways flows in the main three information level.

A. Strategic Information system:

This is highest level of the information system in the British airways and dealt with the

authoritative people in it. They take decisions regarding the merge of the company and its

acquisitions, purchases of new aeroplanes and also the investment of the company¶s

capital. So it needs to provide the information in a large context from the market and

economic forecast, political and social tracks, legislative etc.

B. Tactical Information System:

These information types dealt with the internal and external sources in terms of current

and the future performances. According to the British airways it is involved in the

pricing, planning of the capacity, preparing of the budget, contracts purchase etc. some of

the mentioned information are required e.g. instance cost and sale analyses, measurement

of the performances, operation summary, production sector, budget etc.

C. Operational Information System:

Internal information is the main source of these sort system. Historical, daily or weekly

information that may be quantitative etc. are involved. The process of the operational

information system is more important as it deals with the instance decision making

process. In the British airways they invest these levels of system in the production

scheduling, flight timings and their destinations, their maintenance, ordering, customers

booking details and acceptances, payments of the money etc.



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A.1. Strategic Information System:

Recent structure of the BA (British airways):

It has the largest ever flight operations across the globe. More 44m people flew on

499,000 flights operated by the BA. 907,000 tons of cargo and mail has been carried by it

last year. Now a days it is operating 348 aircraft and thus it is the one of the largest fleets

in the Europe. Therefore, the bagginess investment is in great need of the proper

managerial information system that they are in better operation.

Merger with the other airlines:

To offer a better through the worldwide, the BA serves jointly with some other big

airlines that includes, American airlines, Cathay pacific, Fin air, Qantas, Iberia, Aer-

lingus etc. So in terms of merger they are the bigger airline industry in the world. Some

airlines like the Deutsche (German airline) and the UK inland airline ± citi express runs

their services under the franchise arrangement to use the brand name µBritish Airways¶.

British Mediterranean Airways, Comair, Great Britain airways and also some other

airlines also operating under the same hood of British airways. These airlines that are

franchised of the British airways operate more than the 100 destinations. As a whole, the

BA is operating with it all partner airlines to over 600 destinations in over 130 countries

worldwide.

Finance and its aspects of the British airways:

Financial modelling and financial planning are category that can be used to illustrate the

planning objectives of the Britsih airways for its planning of the nedw developments to

help its managers in the assessment of the future facilities.

Main issues regarding the investment decisions are:

1. Accuracy in the assessment of the demands or opportunity in the assumptions.

2. Find out and implement the solution for the proper business need that can give a rise

to the shareholders.

3. They always keeps a healthy balance between the cost, time and service in terms of

quality that results in a successive customer service.



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Investment of Capital and Planning:

1. The strategic steps of the BA have taken to increase its services, using of the runway

capacity but in all aspects keeping highest level of safety, security and obviously highest

customer service.

2. To meet the demand they hade made ready the Terminal 5 at the Heathrow airport in

short term with highest quality.

3. To facilitate the bigger aircraft like A380 (A double decked plane by Airbus) they

completed works in 2006.

4. Improvement at the Gatwick airport to facilitate more passengers and to improve to better

customer service.

B.1 Tactical Information System:

British Airways and its services:

Day by day the BA has brought huge changes into its quality to make a good relation

between the organization and the customer for their highest satisfaction. They are

providing the pioneer service with its utmost management and skilled crewmembers.

BASIS (British airways safety information services) ± this provides and gathers the safety

data for the ramp and the cargo handling

SESMA (Special even search and master analysis) is the flight data recording program

and monitors the health of the fleets in terms of safety. According to this, each flight is

examined for better safe service.

All the events and data are stored in the BASIS and presented in the retular meeting held

monthly with the technical managers and the pilots association (BALPA) to bridge to

them and confirming better services.



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Policies regarding the Price implementation:

Internal Charging structure:

The airport is charging for its services in three criteria.

a. Charges for landing: they are charging the fleets almost at a flat rate but a little difference

according to the weight band and time slots like peak or off-peak. And some differences

related to the noise producing aircrafts or different makes.

b. Passenger charge: Passengers are being charged for the utilization of the airport and

differs in the domestic and in international passengers.

c. Packing charge: these charges are based on the sizes and weights of the aircrafts,

different time slots and the using of airports either Heathrow or Gatwick and a taxi time

allowance of the time of 8 minutes.

External charging structure:

British airways also charges externally for facilitate the development of new routs at the

airport. And from some other sources.

Quick solution for technical problems:

The adoption of this service, BA made one step ahead than others. It has setup a system

called µMaximo¶ by which they can respond to any emergency immediately. It involves from

take off to landing, customer demands, jetties and escalators, special arrangement for the

disables, lifts, baggage conveyors etc. and the service is ready for 24/7 basis. That means

they are ready to serve the passengers with their full effort by 24 hours a day, 7 days a week.

The systems are always aware of any incidence and are ready to find any solutions at any

instance. And the µMaximo¶ technology helps to keep running the operational activations that

involves emergency stops, maintenance etc. In fact they are ready at all times to solve any

types of problems or to find out any available solution and keep smooth operation in the

organization.



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Employees Payment:

The employees are generally contracted for 40 hours per week basis with a meal break. And

over the 40 hours shift are counted as overtime. New employees are generally in the lower

payment band and midpoints of the old staff and the new scales differ according the job

assigned by 5 and 19 percent. The security staff and the other operatives the differences

exists in differences at about 13 percent the previous year.

C. 1 Operational Information System

Technology used for the operational system:

This is an obvious that a successful company should have to use the latest technology to

keep all the records of data of all the departments for the successful implementation of any

ideas that are useful for the relevant company for successful progression. Reliability of the

highest quality hardware, software, data backup device are all pre-requisite. According to

the time specific demands the BA has adopted some modern steps to achieve these purposes.

They are detailed below.

DB2 and IMS databases:

The BA uses the DB2 system to combine the relational databases and also for the fast

transaction processing as the BA can develop the data-intensive business system and the

various applications related to the DB2.

Virtual terminal: Delta IMS:

This is one of the cutting edge Information systems in the operational level to achieve goals

and the control costs. To operate both the DB2 and the IMS they had installed number of

software¶s and got various impressive result for BA to be in the effective operation.



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Thus the effective database server, database software, IT management, recover, availability

of data of any slot of time has made the BA to be in the leading position to maintain and

keep in the track of the fleet industries. They have assured the protected data availability as

100% throughout the lifetime.

Booking and the management:

Voice recognition ± a modern technology that has been adopted by the BA that has made it

easier for the customers to book a flight over the phone and they are expanding these

services for the booking of the hotels rental cars too.

The system has been developed using the software Envox 5.0 and are operated in Envox

runtime platform. It is suitable for the IVR applications and also supports the full ODBC

connectivity and also supports the SQL server databases.



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CONCLUSION:

Managing information system has not only changed the business to do business but also changed

the business seeks to sell. British airways has made it integrated the IT to its business in a very

effective way and they are getting the proper outcome of it. Here the IT is playing the vital role

in every aspect from the booking to the fleet management. And they are managing their finances

in a very effective way too.

Thus a new paradigm for the business has established for the industrial services and as well as

the knowledge based industries too. To create new information system appeals for the innovative

missions, different dimensions and approaches. The digital firms are in query of system planning

and analyses are based on broader view of the organization.

The BA is an ideal organization where they have adopted the Information technology in its

highest peak of demand and in a proper three dimensions of 1. Strategic level, 2. Management

level and finally 3. Operational level. And all these aspects have made it a perfect managed

information system company.

For an effective Information system firms have to be coordinated their business strategies and the

plans with information system in terms of electronic relationships with the suppliers, customers,

distributors etc.



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REFERENCES / BIBLIOGRAPHY

ADAIR. J., (1985). Effective Decision Making. A Guide to Thinking for Management Success.

London: Pan Books

AVISON. D. and SHAB. H., (1997). The Information Systems Development Life Cycle: A First Course

in Information Systems. England: McGraw-Hill Book Company Europe

Benson, S. and Standing, C. (2002). Information Systems: A Business Approach. Wiley and

Sons.

BRITISH AIRWAYS PLC (2002) A report on the economic regulation of the London airports

companies (Heathrow airport ltd. Gatwick airport ltd and Stansted airport ltd)

Clarke Steve (2007); Information Systems Strategic Management: an Integrated approach¶.

ISBN 978-0-415-38187-1; Routledge Printing, USA & Canada

Elliott, G. (2004). Gl obal business information technol ogy: an integrated systems approach.

Harlow: Addison Wesley

EDWARDS CHRIS, WARD JOHN & BYTHEWAY ANDY, (1985) The essence of information

systems, 2nd Edition, London, Prentice-Hall

Fattahi. R and Ebrahim Afshar (2006), µAdded value of information and information systems:

a conceptual approach¶, Library review Vol. 55 No. 2, 2006 pp. 132-147

Hussain, Z. (2007). Internet and E l ectronic Commerce, from lecture slides, University of Bradford, School of Management.

HANDY. C., (1990). Inside Organizations. London: Penguin Books

HANDY. C., (1995). The Empty Raincoat. Making Sense of the Future. Arrow Business Books.

Jackson D. Ford (1987); Conceptual model of an integrated management information system

invorporating industrial engineering techniques, Computers & Industrial Engineering Volume

13, issues 1-4, 1987, University of Tennessee, Knoxville, Tennessee, 37996, USA

KENNEDY. C., (1994). Managing with the Gurus. Top Level Guidance on 20 ManagementTechniques. London: Century Ltd

LAUDON C. KENNETH & LAUDON P. LAUDON, (2002) Management Information

Systems, 7th

Edition, Times Mirror Higher Education Groups.

LAUDON & LAUDON, (2007) Management Information Systems, 10th Edition, Prentice Hall.

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