Klm Case Study

Problems The airline company KLM was founded in 1919, and operates through its headquarters located in Amsterdam Schiphol Airport in the Netherlands. In 2004, KLM made the biggest merger in airline history merging with Air France to form Air France – KLM. In turn together they became the largest airline group in the world, transporting the most passengers and also the runner up of cargo transportation in the world. By being the leading company in the airline industry it’s not hard to picture the amount of revenue it brings in each year. However, to have the title of largest airline group in the world, comes with its own expectations and issues for KLM. Dealing with the amount of passenger traffic that KLM sees come its way every day, they …show more content…
This is done by all the IT systems that were invested in by KLM to help them meet the demands of their customer base. However, if there was ever an outage and their IT systems happened to go down, this would prevent the people at KLM from doing their job properly. If KLM is unable to offer the services that the customer requires, they would turn to KLM’s competitors, and this is something that they cannot to happen. This means that having fully functioning IT systems has a high impact on the overall business strategy of KLM. In order to avoid losing customers, KLM needs to continue to invest in new technologies that would still allow them to perform the tasks they need to even when faced with an outage. KLM falls under the strategic category in the strategic …show more content…
IT demand that were made came in through 14 separate Information Management committees and even more informal channels. For a company as big as KLM, having that many different committees making business requests and having no communication between each other is just way too inefficient. It can also lead to valuable information being lost throughout the entire process going from point to point. By changing the firm infrastructure and creating Business Demand Offices to channel any business demands and investments into a single place for each of the 5 business domains within KLM (Engineering and Maintenance, Cargo, Passenger Commercial, Passenger Operations, and Corporate), it created a more organized and efficient structure. The BDOs are located inside the business department and report directly to the CIO and EVPs. As KLM continues to seek growth it is key they structure their firm in a way that maximizes the amount of value they can from business