How did the IT department’s outsourcing approach evolve from 1994, when Air Canada signed it’s first contract with IBM, and 2011, the year this case takes place? Provide key characteristics of each outsourcing approach.
The reason they chose to do a contract with IBM was to reduce costs and to focus on their core business. However, Air Canada was not happy with IBM’s service, so the company prepared a RFP, which is request for proposals. From several proposals, IBM’s was selected again.
Air Canada wanted innovation more than cost reduction and the source of competitive advantages, and the company realized that telecommunications is important and need to specialize it.
In 2001, Air Canada still maintained the strategy of single-vendor sourcing, …show more content…
How did the IT department’s structure evolve from 1994, when Air Canada signed it’s first contract with IBM, and 2011, the year this case takes place? Describe each structure.
Prior to 2003, IT department was a bottleneck since it was too slow and did not respond to the business needs.
In 2003, IT department was decentralized, and each business representatives worked as IT department. Business representatives were initially at the IT department, but they all went to the business departments. However, most branches remained under the Corporate IT deparment’s control. Each department tried to develop the applications for the local needs.
In 2010, IT department was re-organized again, and IT representative was assigned to the different three main branches, which are Customer Service, Commercials and Operations.
The new structure and the old structure are definitely different. The representatives were in the business branches and reported both to their CIO and business vice presidents. Even though the branches work differently, they had one common goal which is to link the business side and IT. They worked closely together to make the requests from the business branches …show more content…
relationship to other key areas: In Customer Solutions and Innovations, IT business analysts worked closely with business side to implement new business skills and technology of Air Canada. They thought of the new products which are flexible to the current technology skills.
IT Operations purpose: The purpose was to charge the systems with airline’s operations, which are flight operations and aircraft maintenance.
size: The size of the branch was 70 people.
relationship to other key areas: The branch worked closely with Transformation IT to get the best platform for each system with appropriate standards and policies.
IT commercials purpose: The purpose was to cooperate the business departments together, since they worked independently.
size: The size was 10 to 15 with cross-functional people.
relationship to other key areas: The branch worked closely with IT Customer Service to coordinate between the two branches. It also worked closely with Customer Solutions and Innovations for the business needs and products related to IT.
IT Customer Service purpose: The purpose was to be in charge of any system or application with the customer service departments, with the person who can communicate between IT side and business
The reason they chose to do a contract with IBM was to reduce costs and to focus on their core business. However, Air Canada was not happy with IBM’s service, so the company prepared a RFP, which is request for proposals. From several proposals, IBM’s was selected again.
Air Canada wanted innovation more than cost reduction and the source of competitive advantages, and the company realized that telecommunications is important and need to specialize it.
In 2001, Air Canada still maintained the strategy of single-vendor sourcing, …show more content…
How did the IT department’s structure evolve from 1994, when Air Canada signed it’s first contract with IBM, and 2011, the year this case takes place? Describe each structure.
Prior to 2003, IT department was a bottleneck since it was too slow and did not respond to the business needs.
In 2003, IT department was decentralized, and each business representatives worked as IT department. Business representatives were initially at the IT department, but they all went to the business departments. However, most branches remained under the Corporate IT deparment’s control. Each department tried to develop the applications for the local needs.
In 2010, IT department was re-organized again, and IT representative was assigned to the different three main branches, which are Customer Service, Commercials and Operations.
The new structure and the old structure are definitely different. The representatives were in the business branches and reported both to their CIO and business vice presidents. Even though the branches work differently, they had one common goal which is to link the business side and IT. They worked closely together to make the requests from the business branches …show more content…
relationship to other key areas: In Customer Solutions and Innovations, IT business analysts worked closely with business side to implement new business skills and technology of Air Canada. They thought of the new products which are flexible to the current technology skills.
IT Operations purpose: The purpose was to charge the systems with airline’s operations, which are flight operations and aircraft maintenance.
size: The size of the branch was 70 people.
relationship to other key areas: The branch worked closely with Transformation IT to get the best platform for each system with appropriate standards and policies.
IT commercials purpose: The purpose was to cooperate the business departments together, since they worked independently.
size: The size was 10 to 15 with cross-functional people.
relationship to other key areas: The branch worked closely with IT Customer Service to coordinate between the two branches. It also worked closely with Customer Solutions and Innovations for the business needs and products related to IT.
IT Customer Service purpose: The purpose was to be in charge of any system or application with the customer service departments, with the person who can communicate between IT side and business