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CIO(Chief Information Officer) report 2010


Objective: Deployment of new APS( Advance Planning and Scheduling System) Company name: Blue Sky Air lines Company

Submitted by Ashim Chakraborty MBA 2009-2010 University of Greenwich, London.

1.0 Executive summary Suppose The Blue Sky is a European low cost air lines. Through this CIO report author is recommending to introducing Advance Planning and Scheduling (APS) system as a new management information tool for Blue Sky which will be functioning to achieve competitive advantage from strategic and operational sector by solving most complicated planning and scheduling puzzles. It will also act as management tools to execute companys low cost business model and value chain (see appendix 1). Through Venkatraman and Hendersons model the execution of APS will smooth towards technological transformation perception, where business strategy performs as a pioneer. The main part will be concentrated on the deployment of Advanced Planning and Scheduling (APS) system, benefits, effects, project management and recommendation.

2.0 Blue skys IS implementation and strategic alignment: Blue Sky is practicing cost leadership business strategy, in porters generic strategy it can be classified as a cost cantered leadership; in figure 1.

Figure, 1 Porters Generic Strategy, source: (porter, 1985, p12)

It is significant for any organization to deploy the strategy a driver part of its operation (Bradford, 2002), and the aligned business strategy and information system is facilitate to rectify the contemporary business needs and take action to fill it up according to demand (Pultorak, 2004). This companys focused cost leadership business strategy requires to incessant cost reductions along with value chain. To accomplish the mission statement company is executing YMS, CRS (Yield Management and computer reservation System) and ERP (Enterprise Resource Planning System). Through the existing information system it is clear that Blue Skys business strategy is aligned with their information system in order to operate low cost model. According to Henderson and Venkatraman (1993) describe four dominant strategic alignment perspectives between business strategy and IT system is Strategic Execution, Technology Transformation, Competitive Potential and Service Level. All existing system ( YMS, CRS, ERP) is acting as enablers in accomplishing the business strategy.

Figure : 2. Source: (Henderson and Venkatraman, 1993) With extension as one of the major future navigators and more competition, Advance Planning and Scheduling system (APS) is recommended as prospective way to develop the procedures and therefore attainting cost advantage and value chain. Because APS system concentrates on internal operational procedures perception (Pinder, 2003), where as the existing systems like YMS and CRS is more centred on customer outlook (Shearman, 1992). The way of APS system works is

Figure : 3 Adopted from Entrup (2005) 3.0 Why Advance planning and scheduling system (APS). The most complex sector of Blue Sky is their operational atmosphere. Huge supply chain network, continuous operations and different external barriers like weather, legislative issues become potential blockers for the Airlines performance. The existing information system ERP(enterprise resources planning) system is working to achieve efficiency and integrity in its operations, however ERP (enterprise resources planning) system is not providing flexibility and intelligence needs to data analysis in order to improve supply chain management along with cost reduction (Microsoft Press Pass, 2005). On the other hand the recommended APS system enhances effectiveness of Blue Skys supply chain. It acts as brain of the supply chain actions in relation between consumers and suppliers demands. Through APS system management can accumulates and classifies customer orders, predicts replenishment requirements, cheeks availability of resources and sets up the order as required (Ahmed, 2004) Besides facilitating the existing activities APS also introduce some new functions which will develop companys performance towards business strategy: Event management technology of APS system will contribute Bule Sky in measures suppliers performance and offering the ability to make more efficient supervising procedure (Aberdeen Group, 2010). Suppliers portal provided by APS system works as information centre for all Airlines and suppliers in order to avoid mistakes occurred in operational performance like order processing (Aberdeen

Group, 2010). Through the APS system Blue sky Airlines Company will enrich their inventory planning, forecasting and preservation management abilities which will facilitate Airlines Company and other suppliers execute a joint strategy in supervising inventory for example spear parts and maintenance rota and design strategic network (The Supply Chain Company, 2010). APS will facilitate process-centric strategy to improve additional process performance, enhancing effectiveness of profit maximising for example the existing YMS system is functioning to maximizing the revenue by trend analysis on the other hand, new APS system will functioning to minimise the operational cost. Moreover it will provide best flying route strategy to save time and cost (SAP 2010). As operational benefit, company will establish a bridge between process and their actions which will cut down preparation cycle, lead time, and maintenance process to develop competence (Taneja, 2002) Aircraft maintenance is very critical procedure, however by implementing APS system will create an effective communication among Blue Sky and manufacturer and suppliers. 4.0 Effects due the APS system deployment: This new APS system will be functioning as a management tool to establishing companys mission statement and optimizing strategy and operations through it different advance systems. However there are some issues that might be hindrance due to APS deployment as as follows: the execution of APS system is a complicate and tough process that rectifies both planning procedure with in the organisation and the connections to supply chain partners (Poluha, 2002). Generally, a lot of different people and fuctions are related with the execution methods, in addition vast knowledge about IT and process redegin is needed to APS system deployment which is bear high risk of failure(Entrup, 2005). Poor executive management and potential bloker to tramsform are the significant reason for implementation failours (Kilger & Stadtler, 2008). Some other issues the

mnanagement have to consider before implementing APS system is appropraite project management and support and assistance from APS provider because a weak project management APS system implementation might be breakdown in addition many companies try to expidite higher and quicker return of invest process by skipping important process which might be another risk regarding successful implementation (Davies et al 2002 cited in Entrup, 2005) So company have to concern about the cost of APS system and a small mistake in the APS project might be the loss of large amount of money and time. 5.0 Strategies to be adopted for deploying APS system project and recommendation: A proper project management plays a significant role in ensuring effective implementation. The above explained issued could be taken as a limitations of the system, other then disadvantages. However by deploying some extended strategies company can make a smooth execution of APS system. In order to resolve all issues, project manager have to ensure the best and most experienced team crews who have a lot of experience and knowledge about operating APS system to avoiding complexity and execution problems and budgets are met (Entrup, 2005) he also stated that cautious and ongoing communication in significant to make sure enough executive management support. As a result company might have to redundent some low skilled employess also. Approprate startegis and plans have to set up with in the company before introducing APS system. In terms of strategy and planning four proposed suggestion from the Blue Sky Airlines is

Set up an Incremental approach (pilot project), which helps divide the project in different part to put it under control and reduce the uncertainty and complexity. Operate adoptive method in each pilot project will contribute to deal with dynamic business atmosphere and understand APS system execution along with growing information. Execute in off-peak preservation period will provides more time to employees to analysis the APS system and more interest to involve in this project. Appropriate post-execution preparation.

6.0 Projects Structure A adoptable organisational structure is significant for successful project implementation. In ths project projected structure is

Figure : 4 Project-management structure adopted by author. 7.0 Conclusion Eventually it could be argued that the execution of APS system could be a huge benefit for the company and it is directly transparent from above explained factors. This company has enough competence to implement and adopt with this IT transformation to gain competitive advantage. As a Chief information officer (CIO) of the company, it could be expected that the suggested APS system will works as bridge between market requirement and push technology. So focussing on the advantages of the APS system, preparing for all

concerns and working towards to implement it would meet with the objective moreover the system will be the facilitator of Blue Skys focused cost leadership strategy.

7.0 Reference

8.0 Appendix Appendix 1 : Blue skys Value chain