Case Study

Case Study

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Case Study

Introduction

Southwest Airlines, is an airline company with its headquarter located in Dallas, United States of America. On a daily basis, 180 flights have been operated by Southwest Airlines and are considered to be one of the busiest airports with 8 million fliers that it serves annually. For many years, Southwest Airlines are doing efforts in order to digitalize the airline experience and make its employees migrate from old school to new digital communication usage.

Discussion

OpsSuite which is a web-based application is one of the big parts that helps the airline in migrating its employees from the old school to the new era of digitalization. This package handles several tasks at a time ensuring safe and secure movement of the travelers to their destination. With the use of OpsSuite tools, employees of the airline monitor the assignments at the gates, ensuring loading of luggage onto the airplane, and track the numerous amount of traveler information. If information is needed to the employee working inside an airport from a plane at the gate, they use OpsSuite. Also, the data is provided by the use of this app to the worker who wants to know the logical ramification of Dallas storm. A whole bunch of data is used by the airlines through the OpsSuite in order to perform their day to day duty. Further, it is planned by the OpsSuite to launch its functionalities on the tablets and phones which will change the communication of the employees significantly easier. Southwest airlines have invested $300 million in operations and new technologies and $500 million in purchasing a new system of reservation.

In order to cater to the response of the growing demands of business customers, it has been identified by Southwest Airlines to sort the decreased revenue issue in the year 2019. In January 2019, the issue of identifying the decreased revenue was surveyed by the Southwest Airline. The rating of customer satisfaction had reduced from 4.7 /5 in January 2019 to 4.2/5 February 2019. It has been noticed by the trend of the survey that 75% of the dissatisfaction is caused due to the tracking service. Three key reasons are presented by the unhappy customers that stood out from the rest. 38% of the customers were unsatisfied due to the canceled flights, 31% of the customers said that late flights are the reason for their unhappiness while rest of 27% indicated the cause of their non-satisfaction is due to the cases of lost luggage.

So to backtrack the issues, it has been noticed that the main cause of the problem is due to the faulty and inefficient information system. To cater to this problem, two solutions are in front of the administration of the airline whether to do nothing and lose continually $1,000,000,000+ per year revenue. Or on the other hand, implement the new digital information system. So the second option was chosen that redefines the processes of delivery and changes implemented to the previous Digital Information system. In 2016, the outage of the system, which was traced by the Southwest as a failure of the router, cost them approximately $54 million and led to delay of several days. Southwest needs a strategy that is cost effective and can tackle the digital transformation implementation for its customers. The OpsSuite was recommended due to several advantages over other options. Some of them are as follow:

Low initial cost: A large concern is the flow of cash when the business revenue has dropped significantly. With the choice of the OpsSuite, it was expected that the system would pay off in X years.

Less Risk: As the system has undergone through full cycles of testing, therefore the risk associated with the project overrunning the budget is relatively lower with the use of OpsSuite system.

Quick Implementation: The change should have to be made earlier because the business is losing money on a weekly basis. The OpsSuite system has an effective and swift methodology. So it would be a better option.

Conclusion

So to backtrack the issues of customer dissatisfaction, it has been noticed that the main cause of the problem is due to the faulty and inefficient information system. In 2016, the outage of the system, which was traced by the Southwest as a failure of the router, cost them approximately $54 million and led to delay of several days. Southwest needs a strategy that is cost effective and can tackle the digital transformation implementation for its customers. OpsSuite provided the route for customer satisfaction and revenue increase that helps the Southwest airline to get where it wants.

References

(2019). Sfu.ca. Retrieved 2 June 2019, from http://www.sfu.ca/~rockys/SouthwestDeck.pdf

Southwest Airline’s Digital Transformation OpsSuite! Business Analysis. (2019). Medium. Retrieved 2 June 2019, from https://medium.com/@key.lee.datascience/southwest-airlines-digital-transformation-opssuite-business-analysis-108a0a47b7c6

Southwest Airlines’ Digital Transformation Takes Off. (2017). Fast Company. Retrieved 2 June 2019, from https://www.fastcompany.com/3065045/southwest-airlines-digital-transformation-takes-off