Air Canada Case Study Essay

676 Words Jun 19th, 2016 3 Pages
AIR CANADA
Introduction:
Air Canada was founded in 1937, it was privatized in 1989. After facing net losses from 1990-1993, entered into profits in 1994. It was a founding member of star alliance in 1997, which has 27 partners headquartered in Montreal.
Air Canada’s mission was to connect Canada and the world. For this it followed an international growth strategy. Making partnerships with Lufthansa and united/continental, helped its growth strategy and connection mission. To reach the goals it followed a strategy involving engaging with customers, mainly focusing on passengers and products.
Air Canada mainly depends on IT for their activities. The IT department of Air Canada was made of both recent applications and the back-end
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But this decentralized IT department leads to lack of communication between the departments resulting in an inefficiency in the company.
Solution for the basic problems:
Using a decentralized IT department leads in a huge impact on implementation of the decisions and the projects. For this Air Canada come up with a solution of re-organizing the IT department in 2010. In this structure they assigned an IT representative to each of the three pillars of the company they are customer service, commercials and the operations. And the senior director acts as head of the three departments. After this many changes were made in each of the departments in order to link the business side and the IT department. For this they started employing the people who are aware of both the technology and the business world

Role of IT in business world:
During the change of the 25-year-old aircraft maintenance system the IT department maintained all the data of the aircraft. And also with the introduction of IT commercials department which is an important source in the Air Canada’s market and customer experience it made easy to solve the issues. But, joining the IT and business departments is a big challenge for the company because both are working independently for a long time with their own style of execution it was hard to keep them in one track. For this they started employing the people who can understand both the business and IT languages which is a perfect solution for

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