Information Systems - Case Study Example

-Case Study Information Systems- Executive Summary Comair is a US based regional airline which has seen huge growth in operations since its inception in 1977. But the company has failed to give required importance to its IS/IT systems and infrastructure which resulted in a catastrophic breakdown of the whole system in 2004. The organisation is studied in context of its IT/IS system and methods, procedures and important norms are recommended to it for a developing and implementing a new system in accordance with system development procedures. Table of Contents: Executive Summary 2 Table of Contents: 3 Introduction 4 Discussion and Analysis 4 Comair's IT/IS strategy 4 Systems Theory and Development 6 People, organization and technology issues 9 Conclusion 12 Recommendation 13 References 14 Appendix 15 List of Figures Figure 1 Aviation Management Design and execution Strategy 6 Figure 2 IS / IT Life Cycle 11 Introduction Comair, a regional airline based in the US faced tumultuous conditions hen its IT system crashed due to lack of upgradation and proper supervision from the management. The report scrutinizes company's IT/IS policy in this context and delves into issues which could crop up when a new IS/IT system is implemented in accordance with system development practices. Discussion and Analysis Comair's IT/IS strategy Comair's information systems and information technology strategy in context of their business strategy: Comair a regional airline based in Cincinnati US, stated operations with just three propeller planes in 1977. By 2004 it had 179 regional jets under its operations and in 2004, 12 million people flew Comair jets; that is a quantum jump from an operational perspective. But when in December 2004, its IT system failed it was evident that though the airline had grown in size and business yet its operational risk management structure was not well placed, especially in case of information systems management. On fateful date of December 25th 2004 Comair had to stop all operations and ground its 1100 flights which adversely affected 30,000 travelers and the company lost $20 million. This incident and the occurrences following it did not happen due to any momentary lapse in management or in the information technology system of Comair. Rather there were many significant points behind it. From 1977 to 2004, Comair grew from 3 propeller jets to 177 Bombardier jets having1100 flights per day. But even in 1984, when Comair had 25 propeller jets under its operations, the company still used pen and paper to manage its flight crew. It was only under pressure from its unions and due to federal regulations; the company upgraded its procedures a bit. But then also the company went for leasing software and not buying from SBS International. Even this leased software was old and written in a language know as FORTRAN which dated back to the 1950s and moreover Comair did not have any specialist in its fold for this programming language. This old software still ran on Old IBM AIX version of the in-house UNIX based operating system and not on the new version. This IT legacy system was old and ran on equally old platforms written on very old programming language. It has been reported that 'legacy IT systems' carry various shortcomings or problems. It is seen that these legacy systems usually have software applications written in very old programming languages like COBOL and they operate in old platform environment like IBM IMS and also there is lack of coordination between the components of the system (Yang H. and Ward M., 2003). These same ills were present in Comair's IT system also. Again in 1997 the company wanted to upgrade its legacy IT system but even in the next 2 years the company did nothing in this front other than coming up with a system upgradation plan by an aviation consultancy and software firm. Then in the wake of the year 2000, it became engrossed in solving the Y2K problem completely forgetting about the consultancy report. The report had categorically mentioned upgrading the IT system and specially the 'flight crew management system'. Even the director of risk and IT management of that time, Mr. Jim Dublikar also agreed to the report but did not act on it. The work on replacing and upgrading the SBS flight crew management system was pitifully slow due to the management's lack of initiative and over dependence on the old SBS system. Then again by the year 2000 when a new crew management system was selected, Jim Dublikar had to leave the organization due to some reason and the post of IT and risk management head remained empty for signifying again laxity and lack of understanding on part of the management about the importance of IT systems. In the mean time Delta airlines acquired Comair and five year IT systems upgradation replacement plan went into the back burner for the new management also. Finally it was agreed that in 2005 the rollout of the new crew management system would take place. So the problem which is recognized in 1997 was to be dealt with only in 2005, even which did not happen as the system collapsed much before that in 2004. Basic 'risk management' theories and rules propose fundamentals which are to be followed in any organization. These begin with the assessment of risk. The prime objective of risk assessment is to find out what could go wrong, how much is the likelihood and what would be the consequences of these Again in case of large and complex operation viz. aviation sector it is crucial to understand the interdependency between systems and subsystems. This is vital to initiate processes which would protect critical infrastructure (Goetz E. and Shenoi S., 2007). Simple risk management and analytical models like 'Facilitated Risk Analysis and Assessment Model' or FRAPP. A slightly modified FRAPP is used in assessing the IT infrastructural risk in businesses. This model begins by establishing a 'baseline risk level' by measuring the level of threat and its impact on operations. Then existing controls are identified and put to use or modified and upgraded if need be (Peltier R.T., 2005). In case Comair it is evident that the management did not follow a single of these or other methods of risk analysis. The management did not even k now that the crew management system software could not handle more than 32,768 log changes per month and when it happened in December 2004, the whole system just crashed. Systems Theory and Development Systems theory and systems development practice and development of Comair's new IT system: System in context of business is an integrated model of business processes which function within a business unit and work towards an objective. Systems function and operate within an environment and is segregated from other systems by boundaries though various systems can be interrelated. System development approach proposes breaking a system into further smaller subsystems and then approaching to solve these manageable units. Modularity, coupling and cohesion are three basic concepts of system approach. Modularity means breaking down the system into smaller subsystems with the purpose of making them controllable. These subsystems which are interrelated to each other are known as coupled and cohesion signifies the levels up to which these sub segments are able to perform their particular functions (Concepts of Systems Theory, n.d.). The new system for Comair should be developed such that it takes care of the systems and subsystems of the airlines operations into consideration and also the fact that it is an airline which is growing. There should be seamless integration between all the process and the operations through a strong IT and IS support. According to the basis of systems approach and systems development theories, the process should start with pointing out the different subsystems which constitute the overall operations of the airline. A wholly integrated airlines management information system would not only help the operational aspect but would also help it in cutting costs by saving resources. Figure 1 Aviation Management Design and execution Strategy Source: Designing and Executing Strategy in Aviation Management, 2006 The above figure shows the integrated approach to be followed in developing an IT system for the airline. The process starts with breaking down the components of the whole network into its sub segments some of which are, 'customer management and marketing', 'flight operations management and planning', 'sales and distribution system', 'aircraft maintenance', 'aircraft turnaround operations', 'baggage handling' and ' manage customer relationships'. The two broad components guiding the plan from behind are 'customer focus' and 'non customer focus', but each is as important as the other An integrated model should be used in developing the framework or the basic software and IT / IS architecture. Some of the important factors to be focused upon are : Developing the architecture of the IT system should be such that it integrates the software and hardware with the processes of the organization. There should be enough flexibility in the system so that it is able to integrate the growth in operations. Implementation of e-business model for sales and distribution of tickets. Integration of an online ticket reservation system. Airline payload systems (Flouris T.G. and Oswald S. L., 2006). IT' s role in the aviation business has a broad scope and if leveraged tactically it would ensure savings for the company and also streamline its operations. Some of the most important functions to be kept in mind while designing the IT plan and program are: Aircraft Data- Current weight and acquisition weight of the aircraft. Maintenance Log- This is where the mechanics and the pilots write about the mechanical problems or snags and corresponding modification measures taken. This log should contain information about each model of aircraft along with its history of defects. Each model of aircraft along with its history of defects. Cancellation of flight- Information regarding flight cancellation or delays should be maintained in a coordinated and classified manner. Monthly fillet Summary- this would contain the overall statistics on different parameters for better fleet management (Aircraft Maintenance Status and Performance, February 2008) Planning and forecasting of maintenance - Short term plans are developed along with longer term forecasts for each aircraft and fleet with integrated options for extensions of time if needed. Work package items- This consist of all schedule cards which are required for proper functioning of each job. Job is broken into units and then tallied with time controlled cards check cards during inspection process(Aircraft maintenance Planning And Control, February 2008) Fleet control- Data about felt and aircraft and utilization of fleet. Data about flight schedule- Schedule and itinerary data of flight and also data on non scheduled flights. Operation of aircraft- Reports and data about, routing, maintenance, operations control and then analysis of data (Aircraft Operations and maintenance Support, February 2008) Vendor and repair management- Data on vendor and repair, performance of vendors. Purchase order management- Automatic reorder, online purchase orders. Repair order management- Data on repair, its schedule, performance of the repairing entity. Essential points to remember during implementation and development process of the new IT system: The current IS has to be upgraded and connected with the new IT system through the use of knowledge management and idea processing systems. Decision support systems also play a crucial part in this stage. Proper use of pertinent software should be ensured. These include business intelligence software which is used for data mining, knowledge management, Statistical analysis. The database architecture should be connected to large databases capable of handling old and new data both. Designing a network for computing which is connected to the World Wide Web through the company website and also to the organization's intranet for dispersal of important information and knowledge to the employees. The new system should be proactive rather than being reactive in its approach in order to mitigate impending risks. The system should have the wherewithal to provide real-time computing with 'zero latency period' to facilitate fast response in case of problems. Ultimately the goal is to provide the company with such an IT system which is provides flexible real time computing prowess for fast decision making and also supports decision makers in mitigating risk factors while handling large volume of data (Thierauf R.J., 2001). People, organization and technology issues Experts in the field of change management have found out that whenever an organization implements new systems, processes and procedures, there is an always an eventuality of that organization facing complexity from different sources. People issues: Any change in the organization would affect the people or the personnel first of all. They in turn might think those changes as encumbrances on them rather than accepting the changes as a part of improvement of operations. This point of view emanates from the simple fact that people tend to become habituated with processes and procedures and they generally love the inertia. And moreover when changes are radical it becomes even more difficult to placate their fear. In case of Comair it has been seen that though it was decided that the old IT system would be overhauled but it took a long time for it to happen due to lack of management initiative. In fact experts point out that even managers are found to be complaining about difficulties they are facing in implementation of new technological changes into the organizational systems. Some of the key aspects while tackling people issues are: Cooperation and coordination- Coordination between all departments and cooperation between the personnel is very important for the management of change in terms of the new IT structure. The leadership team plays a very important role in making the transition process easier for the employees through training and support. Cultural shift- The personnel find I difficult to come to terms with the new and sometimes complex IT systems. As they have to adhere to the new norms and procedural changes in their work, they might reject the change. It is the duty of the management to arrange for proper training sessions from well before to make the transition process easier into the new culture. This would also assuage the employee's fear about the paradigm shift they are expecting to happen. Duration of time- The change in IT systems and other connected procedures is not a one time phenomenon in fact real time upgradation happens with change it technology and peripherals. Therefore the management should facilitate incremental training and doubt clearing sessions for the employees (Davenport T.H., 1993). Organisational issues: Organizational change in context of Comair's implementation of new information technology systems is imminent. This change is going to influence the work flow design. Curt Lewin in 1975, one of the earliest proponents of planned organizational change model envisaged that people and organizations always face a pull effect between two opposite forces, one of which wants to maintain the present state of affairs while the other strives towards the changing scenario. Lewin's model mentioned that there are three steps through which an origination goes through while changing. These are: Unfreezing: This means mitigating the forces which are responsible for the status quo. The management should talk to the employees and inform them about the need and the positives of the new system which is to be implemented. This would ensure lesser resistance from them and also they would understand the need for implementation of the new systems and process. Moving: This means establishment of new processes, models, norms, structures which would result in shift of employee behavior and work pattern towards a mode which is expected by the organization and its management when the new systems are implemented. These changes would be such that they solve the problems which were identified during the unfreezing process in the first phase. Freezing: At this level the organisation settles down into the new reality and imbibes the change into its fold according to the prescribed new norms, provided the 'moving' phase was tackled well by the management and leadership. Some of the tools to facilitate success of this stage are new reward systems, new appraisal mechanisms (Harigopal K., 2006). Comair should keep in mind these stages and act accordingly to make the transformational process during the implementation stage a success. Technology: The problem with Comair originated from its legacy system or the outdated IT and software it was using and lack of proper orientation of the management in terms of maintenance, upgradation and modernization of the system. To make sure that the same errors are not repeated once the new Information systems are implemented in the organization, it must follow certain rules. Proper care should be taken in terms of maintenance, modernization and even replacement whenever the situation warrants it in case of the newly implemented system so as to not repeat the past mistakes. To ensure this, Comair would have to follow certain norms. Figure 2 IS / IT Life Cycle Source: (Modernizing Legacy Systems: Software Technologies, Engineering Processes, and Business Practices, 2003) In the above figure System 1 is the new system which is being implemented and after a small duration of time maintenance process is initiated which involves small changes to the system and fixing its minor glitches as and when needed based on regular inspection. After a certain period of time it might happen due to the ever changing nature of IT and software, that even this relatively new system has o be modernized. Then the modernization process will begin which will involve far-reaching changes in terms of modification of structure, and software functionality. It is probable that system modernization would not suit the purpose and there could be a need of implementing another new system to support the growing origination and the newer realities of technological change. At this point a second system or system 2 would be implemented and maintenance process for it would be initiated. Technology is always changing and the organization is ever growing. Therefore to maintain a balance between the growing need of the company, this system life cycle should be kept in mind while pursuing day to day operations to avoid any future mistakes (Seacord R.C., et al, 2003) Conclusion When Comair implements the new IS/IT system in should it should focus on best practices in the industry and also make it a well coordinated and cooperative effort between the departments, so as to make the whole transition process seamless and successful. Recommendation It is recommended that: Comair follows industry best practices. Arranges employee training and orientation processes. Does not overlook the key needs of the IT system and infrastructure and does the needful in accordance with the needs of a growing organization like itself. References Yang H. and Ward M.,2003, Successful Evolution of Software Systems, Artech House. Goetz E. and Shenoi S.,2007, Critical Infrastructure Protection, Springer. Peltier R.T., 2005, Information Security Risk Analysis, Edition 2, CRC Press. Concepts of Systems Theory, No Date, DePaul University, Chicago Illinois, [Online], Available: http://facweb.cs.depaul.edu/yele/Course/IS421/S2/H2%20systems%20thinking.ppt. [May 9, 2009] Aircraft maintenance Status and Performance, February 2008, Transportation Systems Consulting Corporation, [Online], Available: http://www.tsc-corp.com/amismod1.htm [May 9, 2009] Aircraft maintenance Planning And Control, February 2008, Transportation Systems Consulting Corporation, [Online], Available: http://www.tsc-corp.com/amismod2.htm [May 9, 2009] Aircraft Operations and maintenance Support, February 2008, Transportation Systems Consulting Corporation, [Online], Available: http://www.tsc-corp.com/amismod10.htm [May 9, 2009] Flouris T.G. and Oswald S. L., 2006, Designing and Executing Strategy in Aviation Management, Ashgate Publishing Ltd. Thierauf R.J., 2001, Effective Business Intelligence Systems, Greenwood Publishing Group. Davenport T.H., 1993, Process Innovation: Reengineering Work Through Information Technology, Harvard Business Press. Harigopal K., 2006, Management of Organizational Change: Leveraging Transformation, Sage. Seacord R.C., Plakosh D. and Lewis G.A., 2003, Modernizing Legacy Systems: Software Technologies, Engineering Processes, and Business Practices, Addison- Wesley. Appendix Figure 1 Aviation Management Design and execution Strategy Pg7 Figure 2 IS / IT Life Cycle Pg11 Read More