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Assignment 3 Jet Blue

JetBlue experienced major operational problems during an ice storm in New York City. Their transaction processing system and website were not scalable to handle the surge in demand caused by flight cancellations. They also lacked systems to track lost baggage and manage off-duty flight crews. This was compounded by JetBlue's lean workforce and less spending on information technology compared to competitors. To address the crisis, JetBlue deployed new software, trained additional employees, and established a customer bill of rights. However, vulnerabilities remain in their reservation systems, baggage handling, communications, and website that could cause problems again during future disruptions.

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Saurav Shah
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231 views

Assignment 3 Jet Blue

JetBlue experienced major operational problems during an ice storm in New York City. Their transaction processing system and website were not scalable to handle the surge in demand caused by flight cancellations. They also lacked systems to track lost baggage and manage off-duty flight crews. This was compounded by JetBlue's lean workforce and less spending on information technology compared to competitors. To address the crisis, JetBlue deployed new software, trained additional employees, and established a customer bill of rights. However, vulnerabilities remain in their reservation systems, baggage handling, communications, and website that could cause problems again during future disruptions.

Uploaded by

Saurav Shah
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ASSIGNMENT 3 TOPIC: JETBLUE HITS TURBULENCE A CASE STUDY DONE BY:

INTRODUCTION OF THE CASE:

1) TYPES OF INFORMATION SYSTEMS AND ITS BUSINESS FUNCTION.

Transaction Processing System: tracking ticket reservations Customer Relationship Management System: Helps customers to communicate with JetBlue Updation of flight information such as cancellation, delays, etc. Management information system: system for managing planes, crews, and scheduling Executive Support System: Helps to take strategic decisions for the senior level management Communication system

2) BUSINESS MODEL OF JETBLUE AND HOW DO INFORMATION SYSTEMS SUPPORT IT?


The model of JetBlue included: Simplicity (simple is better stratergy) Luxurious flying at very low prices Standardised flight operations and maintenance by the way of having single vendor, that lead to lowering of prices

Lowering of prices even included making automated processes by using Information systems (paperless process) Did not outsource, they had in-house development of systems Lean staffing (low head count and union affiliation nil)

SUPPORT OF INFORMATION SYSTEMS..


Automated process of ticket sales(online) 1.5% of the revenue was only spent on information technology. Baggage handling (electronic tags) Managed planed and crews managed by Scheduling outside contractor

3) PROBLEMS EXPERIENCED. FACTORS THAT WERE RESPONSIBLE FOR THE SAME. A fierce ice storm that hit New York city caused a crisis for JetBlue. The problems were: Less revenue spent on information technology Lean workforce Did not have technology for lost baggage and off duty flight crews Their IS lacked expansion to meet customer call volume They did not have enough qualified personnel to manage its phone lines and lacked communication. The Web site was not scalable; people that called the company were directed to the Web site. Unfortunately, it couldnt handle the surge either.

FACTORS THAT WERE RESPONSIBLE:


TECHNOLOGY FACTORS: The TPS system and the website was not scalable. No system was present for lost baggage. The Decision Support System was not successful in managing its crew members. CRM system was not able to deliver the crew members duty effectively. ORGANISATIONAL FACTORS: For maintaining their reputation they hesitated to provide service for cancellation of flights unlike their competitors. The HR department was too small and hence effected the crew members

PEOPLE FACTORS: Lean workforce Less of qualified staff

4) KINDS OF IS AND BUSINESS FUNCTIONS


WHICH WERE INVOLVED IN THESE PROBLEMS.

The TPS that was involved in processing tickets reservations and transactions. Due to the failure of the TPS, JetBlue had problems in rescheduling and cancellation of the tickets. The CRM systems had been relying on the lean staffing strategy that had lead them to a failure. They lacked qualified personnel and lost many customers as the staff were not able to communicate well with the customers. Even the communication between the staff were not clear. The main problem would have resolved if the HR had enough personnel to handle the situation .

CONTD..
The

HR would have also done well if they had personnel working for them inside the company itself instead of having agents working from home. The ESS had also failed by not planning strategically when the growth was seen in the company. They did not have systems to keep track of lost baggage and off duty flight crews.

5) RESPONSE TO CRISIS AND SOLUTION. On the technology front, they responded by deploying the software that sends recorded messages to pilots and flight attendants inquiring about their availability. The CEO promised to train 100 employees from the airlines corporate office to serve as backups. The airline attempted to address its customer relations and image problems by creating a customer bill of rights to enforce standards for customer treatment and airline behaviour. They changed their operational philosophy to go in accordance with the weather situations.

OTHER SOLUTIONS:
The

solutions implemented seemed to be correct but in order to avoid a similar crisis they need to maintain them so that they can stay competitive enough with the other airlines. They need to have more qualified personnel and need to give them proper training in order to avoid such a situation. They have to keep updating their systems and have frequent testing of its systems. Better website for reservations.

6) HOW WELL IS JETBLUE PREPARED FOR THE FUTURE? ARE THE PROBLEMS DESCRIBED IN THE CASE LIKELY TO BE REPEATED? WHICH OF JETBLUES BUSINESS PROCESSES ARE MOST VULNERABLE TO BREAKDOWNS? There are high chances of these problems to crop up in the airline industry. Hence not only JetBlue, but other airline companies must be also aware of these problems and act accordingly. If JetBlue keeps all the promises that it has made and does stay with its current technology and systems it may not face such problems again in future. They need to be concentrating on spending more on information technology and having a neck to neck competition with their competitors.

MOST VULNERABLE BREAKDOWNS.


Reservation

/booking

Baggage
Communication Repairs

Website

breakdown The bill of rights provides an assurance to the customers as well as make them aware of the issues that might occur. It will even create a loyalty in the customers minds towards the company.

JetBlue Statement Regarding Operational Impact NEW YORK, Feb. 14, 2007 (PRIME NEWSWIRE) -- JetBlue Airways issues the following statement regarding operational disruptions caused by a winter weather system: JetBlue apologizes to customers who were impacted by the ice storm at our home base of operations in New York, specifically at John F. Kennedy International Airport. Of the 505 daily flights operated by JetBlue, more than 250 flights were cancelled, and approximately 10 flights were significantly delayed at JFK with customers on board. These flights were a combination of scheduled departures from JFK that were not able to take off due to the ever-changing weather conditions, and arrivals that we were unable to move to a gate within a reasonable amount of time, due to all gates being occupied. This resulted in unacceptable delays for our customers. JetBlue sincerely apologizes to all customers impacted by today's weather and will be issuing a full refund and a free roundtrip flight to customers delayed onboard any aircraft in excess of three hours. JetBlue's customer commitment team will be contacting these customers as soon as possible.

THANK YOU!

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