Air Canada Case Essays

1324 Words Jan 24th, 2015 6 Pages
Case #1: Air Canada

About Air Canada Air Canada is Canada’s largest domestic, U.S transborder and international airline and largest provider in Canadian market. Air Canada was the world’s 15th largest commercial airlines as of 2011. The reason which made Air Canada reach this position is that it is able to provide a wider range of services to meet its customer’s preferences. This enabled Air Canada to not only reduce the overall cost of serving its customers, but also serve them better.
IT approach and Outsourcing Information Technology has emerged from a discipline that is primarily
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It selected Operation SYS, which offered several applications meeting the Air Canada’s requirements. A small critical team, about 5% of the airline’s IT services was brought back in-house in 2001 to address the activities related to the customer experience.
As dealing with multiple vendors bring unique challenges, Air Canada assigned its IT partner, IBM to act as the integrator. IBM role was to integrate the new applications offered by the vendors to what was already in place.
Prior to 2003, IT department was centralized which made the department to work too slowly and unresponsive to the real business needs. To resolve this issue, IT department was decentralised in 2003 where the representatives were allowed to deal directly with the vendors which brought new challenges. Each department developed applications that satisfied its local needs overlooking the fact that other units could potentially benefit from the same application. This lack of communication between representatives of different departments led to inefficiencies.
This made the IT department to reorganize in 2010. In the new structure, IT representative was appointed for each department and was assigned to each of the three main branches, Customer Service, Commercials and Operations. Though each of the three units had different responsibilities, their one common goal was to link the business side and IT which made them to work closely together to

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