JetBlue used such information systems as the automotive key process (ticket sales and baggage handling), reservation system, system for managing planes, crews, and scheduling. The whole work of the company depended on informational technologies as it is impossible to avoid working in the airplane sphere where all processes are automatized (Laudon & Laudon, 2004).
JetBlue used the one type of plane from one vendor and was dependent only from Microsoft software. These circumstances helped JetBlue’s director to keep small staff and to spend 1.5% on informational technologies that was much lover than his competitors used (5%) (Laudon & Laudon, 2004).
The problem which appeared was the bad weather. Most of the companies delayed or even canceled the flies, but the managerial staff of the JetBlue Company decided to provide the customers with the services as the canceling of the planes would mean the income looses. The results of such actions were worse. The airplanes stuck and people had to stay there for a long time. The staff, because of its low number, could not cope with all the problems, they had to work much over their time. The shortage of food and drinks made the problem more terrible. The absence of connection between staff complicated the problem decision (Laudon & Laudon, 2004).
JetBlue used different systems and functions in its work, such as sales and marketing (identifying customers, making customers aware of the services and selling these services), finance and accounting (creating financial statements and managing cash accounts) and human resources, which was poorly organized (hiring employees and evaluating employees’ job performance). The usage of the informational technologies helped the company to automate a lot of business processes. Customer Relationship Management Systems was also provided in the company, but they were poor developed and implemented as well as knowledge of management systems (Laudon & Laudon, 2004). When the problem appeared, the JetBlue’s government tried to provide some changes, especially in the collaboration and communication systems, but it was too late.
The solution to the problem was as follows, the new software was installed, the information was not only delivered but also collected and saved, the staff was trained to the appropriate level, the new bill of rights was created to “enforce standards for customer treatment and airline behavior” (Laudon & Laudon, 2004, p. 47). There are some solutions which the company did not try to provide: the discounts for customers who suffered from the flights delay, the company had to create different departments which could help in organizing the strategies of how to improve the work of the company and to renew the expenses which were during the crisis.
JetBlue is not prepared for the future (even taking into consideration the changes), as the automatization of systems is not on the high level. The Customer Relationship Management Systems do not function properly, which also lead to losing clients in future (Laudon & Laudon, 2004). Not all staff of the company is trained adequately as even in the era of information systems human resources play the greatest role and their assistance in the working process is very important (Kavanagh & Thite, 2008). Considering the director’s strategy it is obvious that he tires to limit the expenses by economizing on important things that may lead to more expenses in future
Reference List
- Laudon K.C. & Laudon J. P. (2004). Management Information Systems. Pearson.
- Kavanagh, M. J. & Thite, M. (2008). Human Resource Information Systems: Basics, Applications, and Future Directions. Sage.