Executive summary
Global strategy is one of the main tools being used by multinational organizations. Information technology is essential in ensuring that organizations operate and enjoy competitive advantage.
Most organizations are ignoring essence of information technology due to complexity associated with it. Airline industry has a global strategy that is integrated and articulated with information technology. The paper will discuss the process of developing a global strategy in relation to airline industry.
The information will be useful to all industries as it will identify existing gaps in globalization. Qantas airline will be cited as an example of a company in airline industry. Policy formulators will find the information relevant as recommendations will involve political interventions.
Introduction
Globalization is integrated and comprehensive as evidenced by its numerous aspects that have been reviewed and researched on so far. Its evolution remains a mystery as some scholars argue that technology has contributed to the spread while others argue that technology is a product of globalization.
The world of business is wholly submerged by this development as the strategies that are meant to realize the prioritized goal of every corporation are dynamic. Competitiveness of firms is now measured by it coverage globally that acts as a pace setter.
Global business strategy entails plans, objectives and activities that are put in place by the multinational organizations so as to increase competitive advantage. This paper will discuss the process of that is involved in setting global strategy and the essence of global integrated information technology in its implementation process.
Integrated global information technology strategy
Many studies postulate that an integrated information technology must be well established globally so that global business strategy can be implemented effectively. Most organizations acknowledge the essence of integrated global information technology strategy but are reluctant due to high expenses that are involved in the purchase and the maintenance.
As a result, information technology strategy precedence is disregarded by most organizations and in event majority of the multinational industries are not truly global. It is only after integration of a global information technology that the industry is regarded as multinational.
The process of developing an integrated global information technology strategy is to ensure that airline industry operations are monitored globally and a new approach is implemented as opposed to simple expansion of the already existing strategy in the domestic level.
Qantas airline must be able to match the pace of technology so as to enjoy the advantages and be competitive in the global market.1
Industry globalization is one of the issues that contribute towards development of integrated global information strategy. Since globalization is on escalation all over the world, inclination towards information technology is more pronounced.
More activities including those by airline industry will rely on information technology and therefore reluctance towards its adoption will mean reduced competition advantage for Qantas airline. The national competition level would also influence adoption of the global information technology.
For the development of integrated global information technology to be successful airline industry must overcome the negative issues that are aligned in it. Qantas airline should understand that investments at global level are associated with high profitability as opposed to the domestic level.
However the performance should match the technology differentiation speed and expect better long term impacts and not short term. Airline industry should proceed towards the chronological process that should start with the required support.
This involves prioritization and specification on the areas that require the services of information technology. Further integration of information technology would specify on the level in relation to different geographical sites.
When developing the global integration of information technology the desired impact should be well considered based on the differences in geographic and cultural perspectives among the countries2.
Competitive advantage
Information technology that is globally integrated will offer many advantages to airline industry in three main ways. The entire performance will be increased leading to increase in the profitability at both domestic and global level.
Effective communication system which is a product of integrated global information technology, would simplify monitoring and management process for Qantas airline. As a result processes that would have taken longer and inconvenienced the airline industry are simplified and enhanced through the action of information technology.
Decision making and the control exercise is influenced greatly by the existence of information technology. The management of Qantas airline is entrusted with this crucial role that requires utter finesse.
As a result the decision making process is faced with many obstacles like time wastage as well as tendency to make improper decisions. Information technology hinders this by disseminating important information regarding the decision making therefore acting as a guide for the managers.
Strategic value endorsement is the overall positive influence that information technology has concerning the Qantas airline design of the E- business.
This involves the knowledge management, the existing relationship between the consumers and the suppliers as well as relationship between the existing enterprises that Qantas airline will be able to establish. For example Qantas will be able to monitor the market progress in different states it operates in3.
Information technology further influences the relationships between the consumers by strengthening the external coordination like the modification of the supply chain to meet the needs of the consumers.
This can be further articulated by the constant gear towards consumer relationship management that incorporates all the necessary activities. It promotes interactions between the consumers and suppliers often by establishment of networking tools like blogs.
Information systems
The Human resource information system functioning can only be comprehended by careful scrutiny of all the undertakings by different users and implementation process.
It should however be noted that there are different levels of usage among the different users in an organization just like the variance between different industries. Airline industry will use the discussed information system to integrate its global business strategy.
Oracle application will be used in the airline industry because it ensures confidentiality as well as integrity because entire information is controlled in a central point. The duties and all activities of Qantas airline as well as data access will only be manipulated by the authorized person thereby reducing chances of external or internal sabotage.
The application is well established as it has been differentiated consecutively so as to encompass diverse interests of the users. On the other hand the oracle system is very complicated and most users especially from the self service department find it difficult to use it.
This means that the application will be mostly used by the experts in airline industry thereby limiting the coverage rate. This means that the application is highly exclusive as compared to others that are much simpler and should be preserved for the executives of airline industry4.
The ADP application will also be used in airline industry. The application is very efficient in the modification of the set query language in to the comprehensible one rendering. It will be useful to most of the common users in Qantas airline.
Since the application can modify such setting of information there will be no need of purchasing other hardware thereby saving on time and money. On the other hand high technicality is required in modification of the set query language that is only done by an expert as opposed to other applications like MDB that can be wholly ran by the common users.
I would recommend the ERP application as it is simple to operate especially in consideration that the common users are the majority. The application is also well differentiated and contains many in built processors as compared to other applications and would save on cost.
There is also a centralized management that intensifies on the confidentiality and availability of the information in Qantas airline globally. For example customers will be able to purchase tickets and access relevant information via internet.
The software as a service application is very effective and contains many services that reduce cost and saves time. The service costs are reduced because the application supports some services that would be paid for separately by the organization.
The inbuilt services also mean that Qantas airline will not spend money purchasing hardware. There are also high chances of security that come along with the onetime service like the pay to use in most software.
On the other hand the MS access application is highly insecure due to easy manipulation from either external or internal forces. The application is highly unprofessional and is highly characterized by collapse or corrupt files. The MS application is less standardized and has inferior system as compared to other applications5.
Reorganization process
Multiple combinations into a single vendor can only function if only the applications involved communicate or are able to interpret the message. The system may not function in case of disagreement of terms between the applications that are set at the international level.
In addition the combined applications may be irrelevant to other users and could only be accumulating space that could lead to slow processing of information. Ill management of the HR system would lead to high insecurity as the information could be manipulated internally or externally in airline industry.
There is also likely to be under performance of the workers as transformation leadership would not be practical. This would lead to total failure of the projects and the goals of Qantas airline would not be met.
The present system of the HRIS which is dynamic can accommodate additional applications and can be distributed throughout the world. The use of the HRIS can only be effective if well planned and is used in articulation of other applications like EPR or BOB due to the extra services like HTML.
Conclusion
It is evident that airline is a backbone of many other activities in the world. Collapse of airline industries dictates fall of the related businesses both directly and indirectly. Concern and support should therefore be given by the relevant stakeholders to ensure ultimate success globally.
The government being the prime contributor to the financial aid that would boost this industry should be the first to intervene. The emerging inter organization relationship that is strongly influenced by information technology ensures maximum interaction and communication as electronic devises are highly involved.
References List
Allen, T & MS Morton, Information Technology and the Corporation, Oxford University Press, New York, 2004.
Cahney, W, The consumer electronics and related industries. Oxford University press, New York, 1999.
Stone, DL, KM Lukaszewski & LC Isenhour, E-Recruiting: Online strategies for attracting talent, Jossey-Bass publishers, San Francisco, 2005.
Walker, AJ, Best practices in HR technology, McGraw-Hill press, New York, 2004.
Zampetti, R & L Adamson, Web-based employee self-service, McGraw-Hill Press, New York, 2001.
Footnotes
- T Allen & MS Morton, Information Technology and the Corporation, Oxford University Press, New York, 2004.
- DL Stone, KM Lukaszewski & LC Isenhour, E-Recruiting: Online strategies for attracting talent, Jossey-Bass publishers, San Francisco, 2005.
- AJ Walker, Best practices in HR technology, McGraw-Hill press, New York, 2004.
- W Cahney, The consumer electronics and related industries. Oxford press, Oxford, 1999, p.33
- R Zampetti & L Adamson, Web-based employee self-service, McGraw-Hill Press, New York, 2001.