HC1041 IT Impact On Business: A Report On Qantas Airways Assessment Answer

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Question :

Assessment Details and Submission Guidelines
Trimester
T1 2019
Unit Code
HC1041
Unit Title
Information Technology for Business
Assessment Type
Individual assessment
Assessment Title
Report: IT impact on business
Purpose of the assessment (with ULO Mapping)
Students are required to research on a real life business and the impact of IT on the chosen business.
  1. Students will be able to evaluate and justify theoretical and practical knowledge of information technology in a business context.
  2. Students will be able to analyse information technology issues in a business environment and provide solutions to these issues using their knowledge of information technology and practical techniques in a business environment.
  3. Students will be able to apply research skills analysing academic literature and integrating ideas from the literature to the information technology issues in business and in preparation for life-long learning.
  4. Students will be able to understand the ICT profession in information technology.
  5. Students will be able to communicate using effective oral and written communication tools, act in a professional manner.
  6. Students will be able to review and describe the major privacy, legal, ethical and societal issues with respect to managing digital information and information systems.
Weight
25% of the total marks
Total Marks
25
Word limit
1500-2000 words
Submission Guidelines
  • All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page.
  • The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.
  • Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style.

Purpose

Assignment 2 Specifications

The purpose of this assignment is to find recent news that involves information security breaches, analyse the chosen news and produce a report.

Assignment Requirements

You are to research a real life business example of your choice and the impact of IT on that business.

Important points

  1. Does your chosen business need IT?
  2. Why IT is important for business survival?
  3. What is required to apply IT into your chosen business? (I.e. cost, planning, designing, equipment, installation, training, etc…)
  4. How does your chosen business use IT? (internally such as employees, and externally such as customers, suppliers)
  5. What benefits and advantages does IT bring to your chosen business? (I.e. revenue, flexibility, reduces cost, etc….)
  6. What type of risks does IT bring to your chosen business? (i.e. security, privacy, confidentiality)
  7. How can your chosen business maintain and monitor IT?

Your report will be assessed on the quality of your research and report presentation. Discussion must be relevant to your chosen business. Your report is to be in the style of a business report. There is a limit of ten pages excluding appendices.

You can choose a business from any of the following industries:

  • Healthcare
  • Food processing
  • Banking and finance
  • Telecommunications
  • Library
  • Transport
  • Airlines
  • Printing and publishing
  • Media
  • Computer gaming
  • tourism
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Answer :

IT Impact on Business: A Report on Qantas Airways

Executive Summary:

Technology has considerable impacts on the business operations of contemporary organisations. IT helps in enhancing productivity as well as the profitability of a business. In this report, the researcher had chosen Qantas Airways and its business strategies to present the impacts of IT on their business. The researcher had taken into consideration points such as the requirements and importance of IT, application of IT in the business of Qantas, benefits and advantages of IT in business, risks associated with IT and the process of maintaining and monitoring IT.

Introduction:

Technology has substantial impacts on the business operations of any contemporary organisations. Irrespective of the size of the organisation, incorporation of technology has both tangible and intangible advantages for the business of an organisation. IT helps in enhancing productivity as well as the profitability of a business. The dawn of new technological infrastructures influences the competency, effectiveness and culture of a business. IT or Information Technology happens to be a blessing for a business to improve their operations, reduce expenditures, improve effectiveness, increase profit and incorporate best talents to the core business (Wu et al., 2015). In this report, the researcher has chosen Qantas Airlines to analyse the importance of IT in the survival of the business of Qantas. The researcher will also focus on the specific requirements to apply IT in the business of Qantas, how Qantas uses IT, the benefits and advantages of IT and the risks associated with the incorporation of IT in their business.

The necessity of IT in the Business of Qantas:

The rapid growth and development of information technology in the modern world have transformed the world as a whole into one extended global economy. It depends increasingly on creatively managing and sharing information. Since air transportation is gradually becoming popular and its demands are increasing, IT has helped the Airlines industry with multidimensional solutions such as tackling the growing demands of online flight booking, tracking baggage, in-flight GPS system to track the real-time position of Airplane and the estimated arrival time in the destination and in-flight entertainments. As the second oldest airline corporation and the largest domestic and international airline of Australia, the operation of Qantas is spread across 173 different destinations in around 42 countries (Baldwin, 2017
). Therefore, the dependency on IT is major on the part of Qantas. Since 2005 Qantas Airlines has been investing about AUD 430.98 million to enhance its IT services. So, Qantas Airlines need IT in order to closely associate their business strategies with information technology to accomplish success. The Qantas Group believes that it's IT strategies will help them to successfully obtain their business strategies (Halpern and Graham, 2018).

The Importance of IT for the Survival of the Business of Qantas:

IT has turned out to be essential in the survival of the business of Qantas. For instance, Qantas has been reportedly observed to evolve its distribution network by modernising their business with the help of IT. The distribution model is being evolved by delivering personalised experiences to the customers and innovation of the booking options. These are not possible without incorporating IT to the core values of the business. The agenda of Qantas is to enhance their digital strategy to improve their booking systems which are integrally associated with incorporating IT in their core business. IT will help Qantas to develop a sound business relationship with their impending customers. The modification of the distribution channels also helps to improve the business relationship of the airline with their key agency partners (Hussain et al., 2017).

The importance of IT in the survival of the business of Qantas can also be observed in the launching of a new technology platform by Qantas. The Qantas Distribution Platform (i.e. the new technology platform) is aimed to increase retailing sectors of the airlines as well as their capacities of providing personalised services to their prospective customers. The incorporation of IT in the business of Qantas has been also relevant because it develops the functionality of the channels of indirect agents of the airlines. The Qantas Distribution Platform has been highly beneficial in aligning the trade partners of Qantas closely with the capacities currently accessible through Qantas.com (Howell et al., 2018).

Requirements in the Application of IT in Qantas Airline:

The application of IT in the Qantas Airline requires several different important elements such as cost, planning, designing, equipment, installation and training. The fundamental requirements without which IT cannot be applied in a massive airline corporation like Qantas are cost, planning and designing. It has already been stated that Qantas has been investing around 430.98 million AUD since 2005 for the development purposes of their business (Lumpé, 2016). Therefore, the importance of financing in the proper execution of IT can be easily comprehended. Planning is also an integral part of this procedure because without having a proper vision as to how things will be done, it is not possible to apply IT in the core business of any organisation. Improper planning of IT projects might turn out to be catastrophic for Qantas (Khosropour et al., 2015).

On the other hand, it would not have been possible for Qantas to implement their new technology platform of Qantas known as QDP or Qantas Distribution Platform without appropriate designing. The fact that QDP is developed by partnering with the top travel technology organisation Farelogix Inc. is reflective of the fact that the company has concentrated on the proper designing of its technological platform. Since Qantas has been able to design the new technology appropriately, it has also been able to initiate an extended digital advancement of their booking channels. The installation of the latest technology by following a proper design helps Qantas to offer their customers seamless services and evolves the booking channels of Qantas (Kostov et al., 2016).

Benefits and Advantages of IT in the Business of Qantas:

Ever since its advent, IT has always been beneficial for the prosperity of the aviation industry. The contemporary business world is extremely competitive, which makes it necessary for organisations to align their business strategies near the IT strategies to accomplish optimum success. IT strategies have benefited Qantas airline in so many ways, and it is believed at Qantas that the impact of the IT strategies is so intense in Qantas that it helped to derive their business strategies as well. Improvements of information technology attract and retain customers across the world and help Qantas to reach to the higher collection of revenues. IT in the aviation industry is crucial in aligning business strategies so that it can adopt newer IT strategies (Mládková, 2018). 

  • Prioritising Safety:

The implementation of IT is beneficial to ensure that Qantas is able to offer the best safety practices to their customers. IT assists the customers to track down the flyers who can potentially be threatening to other fellow passengers by using the database systems. Another essential advantage of IT is the utilisation of high-quality scanners to scan the baggage and belongings of the passengers. High-quality scanning reveals items that can potentially be threatening to the safety of the other flyers (Mobekk et al., 2018).

  • Navigating appropriate Routes:

IT has been extremely beneficial in ensuring the renewal of the fleets of Qantas with advanced navigation systems so that flyers can be provided with the most favourable travelling routes. Online flight booking facilities are highly advantageous in this regard to reveal to the flyers the optimal routes. The proper scanning of the boarding passes is also helpful in ensuring that flyers are travelling in the correct flight. Therefore, IT makes the process of travelling easier to access (Omoleye et al., 2018).

  • Excellency in Customer Services:

The foundation of their business, as regarded by Qantas, is their excellent customer services. Competency in customer services with the help of IT creates a strong bond between the customers and the airline. It also helps to bring the customers closer to the services of the airline. The online flight booking system, for example, offers 24*7 services to the customers. The detailed flight information is instantly available in the online booking platform of Qantas. IT is also beneficial for Qantas in capturing the feedbacks of the customers through its website or mobile app to help in further improving their services (Taneja, 2016). 

  • Efficiency in Operations:

The productivity and operational efficiencies of Qantas are designed to be increased by several different IT projects. Facilities such as private email services as well as groupware result in sound collaboration between employees, different departments, suppliers and consumers of Qantas. IT hastens the development of an open and creative organisational culture at Qantas leading in optimum operational efficiency (Taneja, 2016). 

  • Complementary Branding:

IT is essential in helping Qantas to accomplish a substantial competitive advantage. IT investments have become indispensable in a time of increasing expansion of the Airline industry to lead innovation. IT provides Qantas all the necessary information about both the existing premium brands and low-fare brands in the market. The nature of flight details and prices have become quite competitive, which is why IT investments have become essential is helping Qantas to obtain a leading edge in the industry (Taneja, 2016).

IT Risks:

The primary IT risks at Qantas is the incidents of IT project failures. The failure of several different IT projects (such as the eQ project and Project Jetsmart) is reflective of a negative image on the engineers and the managerial personnel associated with the projects. Failure of IT projects might lead to the dissatisfaction of the customers with the said technologies. If the customers are not satisfied with the services offered by a particular technology, they might opt for the other airlines. It can cause serious loss of revenues for Qantas. Once a substantial portion of the customers a lost, it might be really difficult to retain them back. Since the aviation industry is going through cut-throat competition; other airline companies might attract these customers by offering more effective technologies. Therefore, technological failure might result in the loss of a loyal customer base (Wong and Brooks, 2015).

Other than that, IT has potential risks associated with the security, privacy and confidentiality of the airline as well as its customers. In this age of technological advancements, it has become easier for hackers to breach cyber-security, which might affect the integrity of Qantas. Cybercrime or security breach might expose all the private and confidential information of Qantas. This can seriously damage the goodwill and brand image of Qantas and result in loss of profitability and revenue (Whyte and Lohmann, 2016).

Maintenance and Monitoring of IT:

The risks associated with IT at Qantas suggest that the planning departments and the management need to be sound about the appropriate implementation of IT. The first criteria to maintain and monitor IT at Qantas should be improving the process of communication between the higher management, staffs and engineers. IT risks often occur due to poor planning, management and communication. The communication error between the management and the engineers forces Qantas to outsource engineers for the maintenance of IT. Therefore, in order to maintain and monitor IT, Qantas needs to solve credential issues and improve the complicated infrastructure of IT (Taneja, 2019). 

In order to accomplish better maintenance and monitoring of IT, project management and the engineering department requires being decentralised. It would increase the time and effectiveness of the projects. Qantas should also ensure that managers from all the departments, project managers and employees are part of the strategic planning meetings so that they can share opinions and enhance communication (Abdullah and Satar, 2018).

The monitoring of IT also depends on occasional remediation of computers and systems. This is also applicable to all the virtual machines that have been used by the airlines. If Qantas is using cloud computing in their IT infrastructure, the hardware level, the health of the OS and the application components should be regularly monitored. Maintenance and monitoring of the IT infrastructure help to take pre-emptive actions so that all the potential issues can be solved before they began affecting the enterprise (Halpern and Graham, 2018).

Conclusion:

To conclude the discussion, it can be said that IT has the potential to significantly affect the strategic options associated with the functionality of the aviation industry. As far as Qantas is concerned, the discussions made in this report suggest that IT creates both positive opportunities and negative issues for the business strategies of Qantas. The proficiency and productivity of Qantas largely depend on how well they are managing their IT infrastructure. It has also been observed from the discussion that the communication errors and managerial faults at Qantas seriously hinder the exposure of IT in the company. The company also needs to address the threats and risks associated with IT so that they can increase the expectations of its customers to offer better service and integrated technology consistently.