This can be seen when in , both airlines upgraded their airline reservation systems, SabreSonic CSS was launch, customers struggled to place reservations, and the WestJet Web Site crashed repeatedly. For instance, if the greatest risk is personnel turnover as it usually is then, the probability may have to be evaluated more objectively. Posted by d ace at 2: Technical risks can be controlled by moving them forward in the project so that they are proven out nearly immediately. Completion bonuses are a routine way that organizations which are closing down operations mitigate the risk that the people participating will leave before the project is ready to let them go. The loss of a key team member may have a low probability; however, the impact to the project can be great. The risk of a functional analyst leaving is greatest in the initial phases of the project when they are intensively interacting with the customer.
Posted by d ace at 2: For instance, if the greatest risk is personnel turnover as it usually is then, the probability may have to be evaluated more objectively. These problems impact both of the airlines operational activities and decision making to change their initial carrier which had started out as a system designed for smaller start-up airlines to a better carrier. Now that risk quotient for the various risks is identified, it’s possible to prioritize the risks for the project. JetBlue also sold smaller numbers of seats on the flights that did take off that day.
Not every mitigation strategy needs to involve money. Upgrading reservations systems carries special risks. If the project is working with a new technology, is using a new development methodology, or even if there are new, relatively casee team members, these need to be listed as potential risks to the project.
The more quickly the risk associated with an item to be validated the more quickly the projecgs is no longer a risk so its probability can be zeroed out. Reservation system for these airlines are so important that when these companies need to make sweeping IT upgrades, their relationships with customers and their brands can be tarnished if things go awry. Airlines such as WestJet and JetBlue promote low-cost and high-efficiency carriers by giving extremely competitive fares and outstanding customer service.
But compared to WestJet, the company was extremely sstudy prepared to handle problems and risk such as these. The loss of a key team member may have a low probability; however, the impact to the project can be great.
It is structured, defined requirements run lower risk. The airline sent an letters, offered flight credits to customers and bolstered call center with temporary staffers. Later on in the project, the loss of the functional analyst has a smaller potential impact for the project.
d’ace: CHAPTER JETBLUE AND WESTJET: A TALE OF TWO INFORMATION SYSTEM PROJECTS
Now that risk quotient for the various risks is identified, it’s possible to prioritize the risks for the project. JetBlue also sold smaller numbers of seats on the flights that did take off that day.
Focusing on controllable risks won’t completely eliminate risk but it will quickly cut it down. In FebruaryJetBlue tried to operate flights during a blizzard when all other major airlines had already canceled their flights.
The goal is to collect all the risks. The objective is to develop a framework for evaluating the various risks against one another.
JetBlue and WestJet: A Tale of Two IS Projects – Assignment Example
On the other hand, JetBlue make its switch on Friday night because Saturday traffic tends to be low. It should also include all external factors such as a change in company direction or a change of technology direction. Last but not least, they need to have experience with technology to deal with the risk. As the carries grew, they needed more processing power to deal with increasing numbers of customers.
However, there are still glitches call wait times increased and not all of the airport kiosks and ticket printers came online right away. For instance, if the greatest risk is personnel turnover as it usually is then, the probability may have to be evaluated more objectively. Although precision in the estimating process is useful it’s not essential. The resulting number is a single number, stkdy risk quotient, which can be used to prioritize risks within the project. JetBlue experienced a few glitches- call wait times increased and not all airport kiosks and ticket printers came online right away.
Once the risks are prioritized, go through the list and identify which risks are controllable, which risks are things that can be mitigated, and which risks must be accepted.
For instance, the risk of losing key personnel can be mitigated by providing completion bonuses or even just monitoring their happiness more closely. This can be seen when inboth airlines upgraded their airline reservation systems, Tael CSS was launch, customers struggled dase place reservations, and the WestJet Web Site crashed repeatedly.
In general, the fastest way to reduce the overall risk quotient for a project is to tackle the controllable risks early in the project.
In addition to the increase in customer complaint calls, customers also took to the Internet to express their displeasure.
Most people value their own sense of self-worth and they believe that projecta ability to meet their personal commitments is a part of the admirable part of their self. Both WestJet and JetBlue previously used a system designed for start-up airlines with simpler needs.
In order to get a consistent number for all of the risks, multiply the probability which should be per interval of duration by the impact and finally multiply that by the duration. Next key risk factor is the project structure.