Improving IT-Enabled Sense and Respond Capabilities: An Application of Business Activity Monitoring at Southern International Airlines

Improving IT-Enabled Sense and Respond Capabilities: An Application of Business Activity Monitoring at Southern International Airlines

S.C. Lenny Koh (University of Sheffield, UK) and Stuart Maguire (University of Sheffield, UK)
DOI: 10.4018/978-1-60566-424-8.ch017
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Abstract

Commercial airlines face an extremely challenging operating and competitive environment. To remain in business they must comply with ever-changing regulatory requirements while, at the same time, minimizing their operational costs without sacrificing customer expectations of service levels. Increasingly, airlines are realizing that a “plan-execute” mode of operation must give way to a “sense-respond” mode of operation; in other words they must become a real-time (agile) organization, capable of sensing the occurrence of unforeseen events such as the placement of a last-minute shipping order, flight delays, and cancellations, and respond effectively in real-time to such events. To enable enterprises in general, and the airline industry in particular, to improve their sense-and-respond capabilities and ensure better resource utilization, a number of software vendors are offering event stream processing and Business Activity Monitoring (BAM) solutions. This case examines a longitudinal set of real-world implementation projects using such a solution at a major US airline (referred to as Southern International Airlines) and the results and lessons gained from this deployment.
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Organizational Background

This case involves the interactions between two organizations—a solutions provider (Quantive, LLC) and a client for Quantive’s products and services: Southern International Airlines (not their real name).

Quantive, LLC (www.quantive.com) is a small product and services company, founded in 2000 by Dwight Jones, and based in Alpharetta, Georgia. It employs several people as well as having contractual relationships with additional personnel when needed to staff projects for clients. As its Web site indicates, it uses a combination of software tools and services to: capture critical business events in real-time without touching existing application systems, and translates these events into actionable business information (called “BAM-alerts”). It does this without the need to engage IT staff at the client organization, save to make a one-time network connection to a router on the client organization’s network. To do this, it uses a stack of software to capture transactional packets of data moving over the network (Packeterm), translating these captured packets into logical transactional events (Inquisitor), and then examining these resulting events to identify exception or alert situations, and sending messages to a manager or an application to take action regarding the BAM-alert (Medusa). Finally, Quantive Factory provides additional ways to evaluate and present event alert information from Medusa. For a more complete picture of their offering, see Appendix A.

Southern International Airlines (SIA) provides both domestic and international air travel and shipping from its primary base in the Southwest as well as other hubs located throughout the world. It was founded through an incorporation of several airline companies in 1930. It operates approximately 1,000 aircraft that fly ca. 420 million seat-miles per day with 3,900 flights per day to 250+ locations. Although SIA is better known for its passenger service, its cargo division flies roughly 5 million pounds of cargo each day, with services to 250 cities in 40 countries, providing one of most extensive cargo networks in the airline industry.

Complete Chapter List

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Table of Contents
Foreword
Elias G. Carayannis
Acknowledgment
Chapter 1
S.C. Lenny Koh, Stuart Maguire
The issues that are currently affecting all managers are similar to those facing managers of ICT. The following is a list, though not exhaustive, of... Sample PDF
Review of Current ICT Developments
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Chapter 2
S.C. Lenny Koh, Stuart Maguire
The ultimate reason why organizations develop information systems is so that their employees can make good decisions. If firms did not make... Sample PDF
Linking Information to Business Strategies and Decision-Making
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Chapter 3
S.C. Lenny Koh, Stuart Maguire
The introduction of new IS can often have a significant effect on the business practices within an organization. It is important that a lack of... Sample PDF
Developing and Implementing an ICT Strategy
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Chapter 4
S.C. Lenny Koh, Stuart Maguire
It is important for today’s dynamic organizations to develop a strong and sustainable links with outside organizations and agencies. It may be... Sample PDF
Strategic Alliance Through the Use of ICT
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Chapter 5
S.C. Lenny Koh, Stuart Maguire
Information Systems (IS) has borrowed many techniques from other disciplines. However, many of these have been borrowed from areas where the outcome... Sample PDF
Planning and Managing ICT Change
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Chapter 6
S.C. Lenny Koh, Stuart Maguire
The reason for going ahead with a new information system (IS) development can come from many sources. A new business requirement may force an... Sample PDF
Identifying Opportunities for Using ICT
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Chapter 7
S.C. Lenny Koh, Stuart Maguire
The development of information systems (IS) has for many years been regarded as the domain of the technical expert. In what appears to be a growing... Sample PDF
Introduction to Current Techniques for Effective ICT Development
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Chapter 8
S.C. Lenny Koh, Stuart Maguire
Nearly all information systems developments follow a structured approach. This is true of all projects. This chapter takes a critical look at both... Sample PDF
System Development and Project Management
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Chapter 9
S.C. Lenny Koh, Stuart Maguire
If organizations were good at ICT planning there would not be as many information systems failures. There is a definite need for improved... Sample PDF
Critical Success Factors for ICT Development
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Chapter 10
S.C. Lenny Koh, Stuart Maguire
For many organizations, the implementation of a new information system (IS) may be the biggest capital expenditure they undertake. If substantial... Sample PDF
Impediments to the Successful Implementation of ICT
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Chapter 11
Learning From Failures  (pages 176-206)
S.C. Lenny Koh, Stuart Maguire
Strategic.failures can be defined as failures of achieving the expected benefits from the organizational, size and industrial sectors or countries’... Sample PDF
Learning From Failures
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Chapter 12
S.C. Lenny Koh, Stuart Maguire
The Internet Cultural Era (ICE) has driven many Small and Medium sized Enterprises (SMEs) in the UK and Ghana to adopt ICT technology. This... Sample PDF
Drivers and Barriers for ICT Development
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Chapter 13
S.C. Lenny Koh, Stuart Maguire
Although Boeing and Rolls-Royce are operating in the same aerospace industry sector and use ERP, but the ways that they implemented their systems... Sample PDF
Current Developments and Diffusions in ICT: ERP, SCM, CRM
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Chapter 14
S.C. Lenny Koh, Stuart Maguire
Globalisation, modernisation and streamlining paradigms have driven many enterprises to use various e-Technologies in order to improve the... Sample PDF
E-Technology: E-Business, Intranet, Extranet, Internet
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Chapter 15
Knowledge Management  (pages 285-296)
S.C. Lenny Koh, Stuart Maguire
Knowledge.Management can be defined as the critical issues of organisational adaptation, survival and competence against discontinuous environmental... Sample PDF
Knowledge Management
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Chapter 16
S.C. Lenny Koh, Stuart Maguire
In information terms, security can be defined as the processes of ensuring that private information remains private and uncompromised in an... Sample PDF
Security and Risk Management
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Chapter 17
S.C. Lenny Koh, Stuart Maguire
Commercial airlines face an extremely challenging operating and competitive environment. To remain in business they must comply with ever-changing... Sample PDF
Improving IT-Enabled Sense and Respond Capabilities: An Application of Business Activity Monitoring at Southern International Airlines
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Chapter 18
S.C. Lenny Koh, Stuart Maguire
This case describes how banking in India has changed after developments in information technology in the last decade. The new private and foreign... Sample PDF
Competing in the Age of Information Technology in a Developing Economy: Experiences of an Indian Bank
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Chapter 19
S.C. Lenny Koh, Stuart Maguire
The Telecommunications Act of 1996 opened competition in the telecommunications market in the U.S. and forced the incumbent telecommunications... Sample PDF
Developing a Telecommunication Operation Support Systems (OSS): The Impact of a Change in Network Technology
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Chapter 20
S.C. Lenny Koh, Stuart Maguire
Nazar Group of Companies has been a leading producer and distributor of cookies, crackers, cakes, chocolate, and other products in Turkey for more... Sample PDF
Nazar Foods Company: Business Process Redesign Under Supply Chain Management Context
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Chapter 21
S.C. Lenny Koh, Stuart Maguire
The TeleDoc project of Jivan Institute has combined mobile commerce and the ancient concepts of Ayurveda for treatment of rural residents of India... Sample PDF
The Expansion Plan of TeleDoc: What and How Much of the Technology Employed is to Change?
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Chapter 22
S.C. Lenny Koh, Stuart Maguire
E-government is becoming a reality rather than a theoretical ambition; however, achieving the e-government anticipated benefits is still illusive... Sample PDF
Process-Aware E-Government Services Management: Reconciling Citizen Business, and Technology Dynamics
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About the Authors