CASE STUDY JETBLUE AND WESTJET A TALE OF TWO IS PROJECTS

In February , JetBlue tried to operate flights during a blizzard when all other major airlines had already canceled their flights. In , both airlines upgraded their airline reservation systems, and one of the two learned this lesson the hard way. Either the airline successfully completes its overhaul and the customer notices no difference in the ability to book flights, or the implementation is botched, angering customers and damaging the airline’s brand. Newer Post Older Post Home. Hundreds of thousands of bookings for future flights that were made before the changeover were inaccessible during the file transfer and for a period of time thereafter, because Sabre had to adjust the flights using the new system. This delay provoked a deluge of customer dissatisfaction.

The resulting number is a single number, a risk quotient, which can be used to prioritize risks within the project. Technical risks can be controlled by moving them forward in the project so that they are proven out nearly immediately. Although precision in the estimating process is useful it’s not essential. It also serves as yet another reminder of how successfully planning for and implementing new technology is just as valuable as the technology itself. For instance, the loss of a subject matter expert early in the project is a risk because their input is still needed. 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.

For example, they built jetblud backup Web site to prepare for the worst-case scenario. Each risk should be evaluated based both on its probability and on the impact that it would cause if it happens. WestJet had not anticipated the transfer time required to move the files and failed to reduce its passenger loads on flights operating immediately after the changeover.

They recognize that even subtle changes in the values for these numbers can have a huge impact on the total risk of the project.

JetBlue and WestJet: A Tale of Two IS Projects by Amira AL Jaoui on Prezi

ByWestJet held nearly 40 percent of the Canadian airline market, with Air Canada dropping to 55 percent. Airlines such as WestJet and JetBlue promote low-cost and high-efficiency carriers by giving extremely competitive fares and outstanding customer service.

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case study jetblue and westjet a tale of two is projects

Upgrading a reservation system carries special risks. For the time being, WestJet is hoping to return to growth before pursuing these measures.

JetBlue and WestJet: a tale of two IS projects

It also serves as yet another reminder of how successfully planning for and implementing new technology is just as valuable as the technology itself. JetBlue is slightly bigger, with syudy in use compared to WestJet’s 88, but jetblye have used the same low-cost, good-service formula to achieve profitability in the notoriously treacherous airline marketplace.

It sells seats, collects payments, allows customers to shop for flights on the airline’s Web site, and provides an interface for communication with reservation agents. However, later in the project they may not have much input and ov aren’t a risk if they leave. Next, inventory can also help control risk. For instance, the risk of losing key personnel can be mitigated by providing completion bonuses or even just monitoring their happiness more closely.

Customers can use it to access airport kiosks, select specific seats, check their bags, board, rebook, and receive refunds for flight cancellations.

case study jetblue and westjet a tale of two is projects

It destjet also include all external factors such as a change in company direction or a change of technology direction. It is structured, defined requirements run lower risk. This delay provoked a deluge of customer dissatisfaction, a rarity for WestJet. 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. JetBlue also sold smaller numbers of seats on the flights that did take off that day.

The other factor to evaluate when looking stuy a risk is its duration–how long that it can have a potential impact on the project.

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case study jetblue and westjet a tale of two is projects

WestJet also ended up hiring temporary offshore call center workers, but only after the problem had gotten out of hand. Its goal is to provide low-cost travel along with unique amenities like TV in every seat, and its development of state-of-the-art IT jetbluw the business was a critical factor in achieving that goal.

For a company that built its business on the strength of good customer service, this was a nightmare. From a customer perspective, only one of two things can happen: These plans would allow one airline to sell flights under its own name on aircraft operated by other airlines.

Most people value their own sense of self-worth and they believe that their ability to meet their personal commitments is a part of the admirable part of their self. In FebruaryJetBlue tried wedtjet operate flights during a blizzard when all other major airlines had already canceled their flights.

The airline sent apology letters, offered flight credits to customers and bolstered call center with temporary staffers. Although precision in the estimating process is useful it’s not essential. The company began with approximately 40 employees and three aircraft. This can be seen when inboth airlines upgraded their airline reservation systems, SabreSonic CSS was launch, customers struggled to place reservations, and the WestJet Web Site crashed repeatedly.

Last but not least, they need to have experience with technology to deal with the risk. Posted by d ace at 2: Earlier in this decade, WestJet underwent rapid expansion spurred by its early success and began adding more Canadian destinations and then U.