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How Strategic Information Systems has changed the Airline Industry

"More than being helped by computers, companies will live by them, shaping strategy and structure to fit new information technology” (Fortune, 1988).

Information Technology (IT) has dramatically changed the airline industry. The operational element of an airline organisation, its strategic management and the communication with its stakeholders has altered with the introduction of the internet and other software programmes. As a �no frills’ airline, Ryanair was one of the first companies to take advantage of the introduction of technology in order to offer the lowest prices in the industry. We have identified, as is outlined in graph A, the changes that IT/IS have brought to the airline industry.

IT/IS influence peripheral elements of the airline industry such as check-in, allocation of seats, generating a number of reports, such as flight paths, weather forecasts, load and balance calculations, manifests for airport immigration and security authorities, in-flight catering orders and crew rotas. IS/IT has also enhanced the sales and marketing support systems, operational, and resource management systems. However, information technology support systems underpin the airline’s entire core business processes and operational management which can’t be underestimated according to (Dimitrios, 2004).

Through evaluating the evolution of IT into the airline industry we can highlight the changes experienced. Since the 1950s airlines have been investing in Information Systems, with the initial function being the efficient transport of inventory and communication with suppliers. However, according to (Dimitrios, 2004) it was up until 1970 when travel agents still had to locate the best routes and fares for their customers. This is incomprehensible given