Focusing on controllable risks won’t completely eliminate risk but it will quickly cut it down. The goal is to collect all the risks. WestJet’s latest earnings reports show that the company weathered the storm successfully and remained profitable, but the incident forced the airline to scale back its growth plans. When WestJet went live with the new system in October , customers struggled to place reservations, and the WestJet Web site crashed repeatedly. 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.
Although precision in the estimating process is useful it’s not essential. JetBlue continued to grow at a rapid pace, remaining profitable throughout, until , when the company lost money in a quarter for the first time since going public. Upgrading a reservation system carries special risks. 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. The other factor to evaluate when looking at a risk is its duration–how long that it can have a potential impact on the project. For instance, the risk of losing key personnel can be mitigated by providing completion bonuses or even just monitoring their happiness more closely.
For instance, the risk of losing key personnel can be mitigated by providing completion bonuses or even just monitoring their happiness more closely. From a customer perspective, only stuey of two things can happen: JetBlue experienced a few glitches- call wait times increased and not all airport kiosks and ticket printers came online right away.
How did WestJet allow this to happen?
For example, they built a backup Web site to prepare for the worst-case scenario. This is also a part of the process that typically helps validate the estimates made above. But compared to what WestJet endured, the company was extremely well prepared to handle these problems.
Some people struggle with the evaluation step because both of the numbers, percentage and impact, are guesses.
JetBlue and WestJet: a tale of two IS projects
Inboth airlines upgraded their airline reservation systems, and one of the two learned this casr the hard way. But when these companies need to make sweeping IT upgrades, their relationships with customers and their brands can be tarnished if things go awry. The other factor to evaluate when looking at a risk is its duration–how long that it can have a potential impact on the project. For WestJet, the critical issue that they face was the transfer of itsfiles containing data on transactions for past WestJet customers who had already purchased flight, from its old reservation system serves in Calgary to Sabre servers in Oklahoma.
Last but not least, they need to have experience with technology to deal with the risk.
In addition to the increase in customer complaint calls, customers also took to the Internet to express their displeasure. Other than that, both airlines needed more processing power to deal with a far greater volume of customers. Newer Post Older Post Home. Focusing on controllable risks won’t completely eliminate risk but it will quickly cut it down. Simply getting a verbal, personal commitment to finish the project is often enough to further reduce the probability that a person will leave during the project.
That step happens later.
It should also include all external factors such as a change in company direction or a change of technology direction. Each risk should be evaluated based both on its probability and on the impact that it would cause if it happens.
The company began with approximately 40 employees and three aircraft. The inventory should include all internal factors for the project such as resource changes, assumption failures, and sponsor availability. Earlier in this decade, WestJet underwent rapid expansion spurred by its early success and began adding more Canadian destinations and then U. The time had come for both JetBlue and WestJet to upgrade their reservation systems. Each carrier had started out using a system designed for smaller start-up airlines, and both needed more processing power to deal with a far greater volume of customers.
JetBlue continued to grow at a rapid pace, remaining profitable throughout, ketbluewhen the company lost money in a quarter for the first time since going public. In recent years, the airline industry has seen several low-cost, high-efficiency carriers rise to prominence using a recipe of extremely competitive fares and outstanding customer service.
JetBlue and WestJet: A Tale of Two IS Projects by Amira AL Jaoui on Prezi
The resulting number is a single number, a risk quotient, which can be used to prioritize risks within the project. The step is to inventory the situation.
JetBlue ended up using its backup site several times. It also serves as yet another reminder of how successfully planning for and implementing new technology is just as valuable as the technology itself. However, there are still glitches call wait times increased and not all of the airport kiosks and ticket printers came online right away. The more quickly the risk associated with an item to be validated the more quickly the risk is no longer a risk so its probability can be zeroed out.
As the carries grew, they needed more processing power to deal with increasing numbers of customers. The company also hired temporary call center workers to manage potential spikes in customer service calls. 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.