Role of IT in Business

Introduction

The process of using IT in business involves utilising computers for retrieving storing, transmitting and manipulating information as well as data regarding business to improve the products or services for gaining competitive advantage in the market. The Information Technology (IT) is used for business in different ways such as manufacturing goods, improvising consumer services, transportation, communication, human resource planning and management and others. In this report, the requirement and way IT is used in Qantas Airways Limited are to be discussed with focus on the benefits as well as risk it brought to the business. Lastly, based on the information, way to monitor and maintain IT in Qantas Airways Limited is to be discussed.

1. Overview of Qantas Airways Limited and its need for IT

Qantas Airways Limited is one of the oldest airlines in the world and is the flag carrier of Australia which operates both in domestic and international flights. In 2017, it collected total revenue of A$16.1 billion and its total assets in the year was reported to be A$17.2 billion that was more than the previous year (investor.qantas.com, 2018). In Qantas Airways Limited, information technology (IT) is needed for various purposes such as for processing passengers, information distribution, online booking and others. The airlines manage a company website that needs effective use of IT to ensure its smooth operation. Qantas requires IT to manage Qantas Distribution Platform (QDP) which is developed to improve the functionality of their indirect agent channels by closely aligning them with the capabilities presently available in the company website (www.qantasnewsroom.com.au, 2018). This is required to make the trade partners experience easier ways of selling tickets and products of Qantas as well as deliver seamless services to its consumers, in turn, improve the business efficiency and expansion in the market. Qantas needs IT to use dynamic signage for air transport, advertisement and communicating with consumers, execute online booking of Qantas products for consumers, use social media to increase interaction and many others (www.qantasnewsroom.com.au, 2018).

2. Importance of IT for business survival of Qantas Airways Limited

In the current technology friendly world, the importance of IT is immense for any business to grow properly through innovation and upgradation in the market. The initial importance of IT in business survival is allowing the business to directly communicate with the customers to understand their needs and demands, grievances regarding existing products or services, provide them detailed information about their product purchase and others. This is required for the business so that the services or products are designed and developed accordingly to show value and earn the satisfaction of the consumers (Löfsten, 2016). In Qantas, it is seen that they use IT to manage their company website through which they remain in direct contact with the consumers by asking feedback from them, resolving their queries and others to ensure the services or products by them at the end satisfy and value the consumers (www.qantasnewsroom.com.au, 2018). The IT is also important for business survival as it helps in efficiently maintaining cast flow operations; preserve precious resources like time and physical space (Mian et al. 2016). It is evident as Qantas use IT in keeping track record of their cash flow, managing warehouse inventory and others as it allows them to save time and money as well as manage financial and physical resources required for smooth running of the business (www.qantas.com.au, 2018a). The IT is important for business survival as it helps to create and manage a dynamic team within the organisation ensuring proper management of business culture; provide security against confidential, financial and other proprietary data and improves market research capacity (www.qantas.com.au, 2018a). This is required for business survival as loss or publication of confidential and financial data creates financial threat for business. Moreover, improved market research through IT survives the business by allowing them to make modification as per the industry and competitors operations to gain competitive advantage in the market.

3. Requirement to apply IT in Qantas Airways Limited

In order to successfully apply IT in Qantas, certain requirements such as cost, planning, equipment installation, training of employees and others are to be fulfilled. The planning is important to implement IT in business as it offer ideas, concepts and leads the business to understand ways in which they are to strategically implement information technology in their business to work in an innovative way in the market for achieving better productivity and profit (Wilbon, 2015). The Qantas Airways Limited is seen to have planned on developing partnership with Farelogix Inc as well as use IATA’s New Distribution Capability (NDC) Standards and apply Application program Interface (API) technology for building their Qantas Distribution Platform. This is executed with the intention to communicate improved information regarding Qantas, building and distributing newer merchandise offers that provides rich data and create a personalised experience for the consumers (salesnews.qantas.com, 2019). The determination of the cost to apply IT in business is done to identify the amount of financial resources required by the organisation to ensure their proper operation of technology (Navimipour and Soltani, 2016). Qantas has informed that its net capital expenditure was AU$962 million half-yearly which includes capital expenditure required for its Wi-Fi rollout (www.qantas.com.au, 2016). The training of the employees regarding new IT is required so that they have upgraded skills and knowledge to smoothly operate the implemented technology to ensure business progress (www.ausbt.com.au, 2013). Qantas is seen to arrange employee training for IT services so that the when new IT resources are implemented in the business their employees can be able to manage the equipment and appliances in a seamless way to provide effective services. The Qantas is seen to have collaborated with Fujitsu to allow them to provide all user-facing IT services for its smooth operation of business (www.fujitsu.com. 2019).

4. Way IT is used in Qantas Airways Limited

Qantas Airways Limited uses IT appliances and services in various ways of promoting and managing their business. It is evident as the company uses its intranet facility to make employee communication by allowing employees to download their pay check and put queries, offer security information to the employees, inform them about events and many more (qaccess.qantas.com.au, 2019). This is because through intranet which is an IT facility the company is able to communicate to all employees within less time and fewer hindrances. Qantas uses IT services to communicate externally by managing their official website which is evident as on the website the consumers are allowed to provide them feedback regarding their experience with the company’s services and products. Moreover, they use IT services to identify frequent flyers to offer better services, discounts and other advantages to their consumers for making them loyal to them (www.qantas.com, 2019b; www.qantas.com, 2019). The Qantas is using IT to currently develop Qantas Distribution Platform for communicating with their agent to help them sell their products and services to consumers with ease (salesnews.qantas.com, 2019).

5. Benefits and advantages of IT in Qantas Airways Limited

The advantage of using IT in business is that it offers the company to improve its communication both internally and externally (Orenga-Roglá and Chalmeta, 2016). This benefit is experienced by Qantas Airways Limited as the use of IT has offered them the ability to use intranet and internet facilities to remain in direct contact through email, messaging, video conferencing and other ways with the employees, customers and suppliers (www.qantas.com, 2019; creativityawards.com, 2019). The benefit of using IT in business is that it allows the business to securely store data, files, confidential information and others (Wu et al. 2015). The similar advantage is seen to be faced by Qantas on using IT services as it has helped them to store secured and confidential data, manage file, report and analyse data, store employee information and execute other activities. Moreover, use of IT is beneficial for Qantas to improve financial management as they use are able to use various accounting software to process and store financial data, develop error-free balance sheets, calculate profits and expenditure and others within less time and better efficiency. Further, IT use is beneficial for Qantas to make quick communication without geographical or time barriers, reduce physical space to store informative files, gain information about competitors and market fluctuations by researching information through different medium in easier way (www.qantas.com, 2019a; www.qantas.com, 2018).

6. Risk type experienced due to IT in Qantas Airways Limited

The use of IT in Qantas Airways Limited has led them to experience various types of risks out of which cyber security risk is one of the key issues. This is evident as in 2017 when Petya ransomware attack occurred many of the Australian companies along with Qantas were threatened to be affected but later Qantas revealed that they were able to be safe from the attack (www.news.com.au, 2017). The other IT risk experienced by the companies includes loss of confidential information related to their business, consumers or others (Ali et al. 2017). This risk was experienced by Qantas which is evident as seat numbers, name and frequent flyer numbers of eight of the Qantas passengers was seen to be revealed to one of the customers who was looking in the Qantas check-in application. This data breach caused the consumers to feel dissatisfied with the services by the organisation making them doubt their confidentiality (www.crikey.com.au, 2017).

7. Way to maintain and monitor IT in Qantas Airways Limited

Qantas Airways Limited and various other Australian airlines are taking up various steps to monitor and maintain IT services in a proper and risk-free manner. In order to accomplish this, the Qantas requires installing better security monitoring software within their system and arrange 24*7 checking of IT service performances. This is because continuous checking of security of IT and its performance would help the company to understand and identify any defects regarding IT services immediately and manage to maintain proper services (Dellermann et al. 2017). Qantas to maintain proper management of IT require executing daily checking of its technological appliances and equipment required in its effective business operation. The employees at Qantas are to be trained properly to make them able to work with efficiency to maintain seamless services of the IT within the organisation.

Conclusion

The above discussion mentions that Qantas Airways Limited needs IT for executing its business operations. In order to apply IT, the company executes planning, cost determination, identification of equipment required and others. The use of IT is beneficial for Qantas as it offered reduction in cost, management of files, effective cost calculation and others. The type of risk encountered by Qantas includes cyber security threat, confidentiality issues and others. In order to avoid the risks and monitor IT, 24*7 checking of IT services within the company is to be maintained.

References

Ali, A., Warren, D. and Mathiassen, L., 2017. Cloud-based business services innovation: A risk management model. International Journal of Information Management, 37(6), pp.639-649.

Dellermann, D., Fliaster, A. and Kolloch, M., 2017. Innovation risk in digital business models: the German energy sector. Journal of Business Strategy, 38(5), pp.35-43.

Löfsten, H., 2016. Business and innovation resources: Determinants for the survival of new technology-based firms. Management Decision, 54(1), pp.88-106.

Navimipour, N.J. and Soltani, Z., 2016. The impact of cost, technology acceptance and employees' satisfaction on the effectiveness of the electronic customer relationship management systems. Computers in Human Behavior, 55, pp.1052-1066.

Orenga-Roglá, S. and Chalmeta, R., 2016. Social customer relationship management: taking advantage of Web 2.0 and Big Data technologies. SpringerPlus, 5(1), p.1462.

Wilbon, A.D., 2015. Technology Strategy and organizational learning: Applying population ecology to understanding the influence on firm survival. Academy of Strategic Management Journal, 14(2), p.221.

Wu, S.P.J., Straub, D.W. and Liang, T.P., 2015. How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and IT managers. Mis Quarterly, 39(2), pp.497-518.