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Florida International University *

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Information Systems

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Dec 6, 2023

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Case 5.3: Air Canada: Flying high with Information Technology Part 1 Phase 1: During this phase, Air Canada’s internal IT department was tasked in creating and maintaining the technological infrastructure of the airline. The IT department built and supported various technological solutions such as reservation, finance and flight operations systems. Phase 2: The airline started to migrate from a internal IT department to a strategic outsourcing. IBM, Accenture, and HP contracted with Air Canada to manage a tremendous size of its IT operations. Due to this arrangement the Canadian airline held its control over IT strategy when it contracted out the continuing administration of the technological infrastructure. Phase 3: The airline decided to re house its IT operations. The new CIO focused on the IT reform project. The focus was to improve the Air Canada’s operational goal by building a IT organization far more e ffi cient as well as e ff ective. New employees were hired including software developers and project managers. Phase 4: The airline now switched to a hybrid IT architecture in which it combined strategic outsourcing with internal IT operations. So by outsourcing task such as help desk, Air Canada held its control of its vital IT systems such as flight operation system. Phase 5: At this phase, the airline debuted a new cloud based IT transformation program. Air Canada worked with various other cloud based service providers such as IBM, Google and Amazon. The goal was to construct a IT structure that was more malleable so it can support the goals of the airline for expansion and innovation. Investments were made in new digital capabilities such as mobile apps. Part 2 This organizational structure, the G7 was installed in 2012 due to Air Canada’s restructuring initiative. The purpose of this is to enlarge operational e ff ectiveness and accelerate decision making. This organizational structure is built around seven senior executives who are in charge of numerous divisions within Air Canada’s operations. The seven executives are the CEO, COO, CCO, CFO, general counsel and corporate secretary, executive vice president of people
and culture and executive vice president of operations and transformations. The primary focus of this is to provide these executives the tools to act swiftly and decisively. This structure has been e ff ective and other airlines have implemented it. Part 3 The hybrid structure of the airline integrates internal IT operations with strategic outsourcing to perform the goals of operational excellence and close customer closeness. This strategy allows the airline to hold control over its influential IT systems while it outsources non vital task to suppliers. They support this with structure, sourcing and processes. Structure utilizes internal IT processes to build consumer facing technology. Sourcing enables the airline to access specialized knowledge in groups such as marketing and customer services. Processes enables Air Canada to build and input practice of new technologies and procedures that are in regulations with the customer requirements. It brings closeness to the customer. Part 4 The IT organization in a real estate firm are applications. We have several application we perform for the customer to facilitate their satisfaction and make the process easier for them. The easier and more convenient it is, the better chance they will choose us and stay with us. Software development is always up to date with the current trends in the market. Management focuses on that these systems are running smoothly, it is vital for the company. There are times in which these systems lack and newer restructuring is needed in which management takes time whether to decide to implement newer systems which would be more profitable for the firm. To hold more meetings would be benefits to improve.
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