The Use of Transaction Processing System By Emirates Airlines To Gain Competitive Advantage

The Use of Transaction Processing System By Emirates Airlines To Gain Competitive Advantage

The case study paper will explore how Emirates Airlines uses information systems to gain a competitive advantage over other airlines. The use of information systems helps improve customer service and increase profits, which gives the company a competitive edge. The TPS system helps keep track of financial transactions, and the FEC system allows passengers to order food and drinks from their seats. These systems have helped Emirates stay ahead of its rivals in the competitive airline industry.

Emirate Commercial Airlines has utilized information systems for many years to gain a competitive advantage. The CEO, Mr. Ahmed bin Saeed Al Maktoum, has been a big advocate for information systems and their ability to help businesses run more efficiently (Kamarudeen & Sundarakani, 2019). Transaction Processing System (TPS) is one of the information systems Emirate Commercial Airlines uses. TPS has improved data accuracy in Emirate Commercial airlines, resulting in a competitive advantage. It also allows accounting personnel to efficiently manage daily operations such as record keeping, payroll management, customer account management, and other transaction-related activities.

TIPS is a system that helps the airline keep track of passenger reservations, ticketing, and baggage handling. This system has allowed Emirate Commercial Airlines to improve customer service by reducing airport wait times and improving baggage handling (Afridi, 2021). For instance, in 2019,  the airline implemented a new program called Emirates Check-in that allows customers to check in online and print boarding passes at home instead of waiting in line at the airport. The company has also used TPS to create alliances with other airlines, such as Etihad Airways, to share routes and passengers on each other’s flights, bringing a competitive advantage over rivals. TPS uses batching processing to improve efficiency in processing transactions. For example, when a passenger purchases an airline ticket from the Emirates Airline website, the official site of Emirate Commercial Airline, he will get a confirmation email with all the details about the flight schedule and boarding pass.

TPS keeps track of financial transactions that occur in a business. Customers can purchase flight tickets on Emirate Commercial airline’s many flights (Trianita et al., 2020). The TPS allows the company to determine how much money it takes each day and helps keep track of other expenses like fuel costs; salaries paid to employees, and advertising expenses. Emirates Airlines has improved customer service and increased profits (Kamarudeen & Sundarakani, 2019). Management team in departments such as accounting and finance uses TPS to decide what to do next with their money based on information inputted into TPS. For example, suppose there is a lot of profit from one month’s flights. In that case, management will decide whether to increase prices or invest those profits into something new, like opening another office in a different country to bring a competitive advantage.

In 2018, Emirates became the leader in the airline industry by being the first to launch an in-flight entertainment experience that would allow passengers to order food and drinks from their seats (Afridi, 2021). This new system, called Flight Experience Control (FEC), allowed passengers to make orders through a touchscreen menu displayed on their screens (Trianita et al., 2020). The FEC also allowed passengers to watch movies and TV shows in HD quality with their headphones and play games or read e-books during the flight. This system improved Emirate Commercial Airlines’ competitive advantage over other airlines by giving customers more entertainment options onboard and making food service more accessible to manage from a crew perspective. Qatar Airways has followed suit by offering similar services, but Emirates Airlines is still ahead because FEC was launched earlier than any other airline company.

Conclusion

Emirates Airlines has used the Transaction Processing System (TPS) to improve transaction efficiency. It allows accounting personnel to make quick decisions on what to do with their money based on information inputted into this system. The FEC system launched in 2018 gave passengers more options for entertainment onboard and made food service more accessible and easier to manage from a crew perspective. Emirate Commercial Airlines has improved customer service and increased profits using information systems. These competitive advantages have allowed the company to stay ahead of its rivals.

References

Afridi, W. A. K. (2021, December). An Examination and Critique of the Use of Knowledge Management in Achieving Competitive Advantage in Business and Its Existence in The Middle East Airline Industry: A Case Study of Saudi Airline. In 2021 International Symposium on Knowledge, Ontology, and Theory (KNOTH) (pp. 80-85). IEEE.

Kamarudeen, N., & Sundarakani, B. (2019). Business and supply chain strategy of flying above the dessert: A case study of Emirates Airlines. In 8th International Conference on Operations and Supply Chain Management, Cranfield (pp. 1-17).

Trianita, M., Dharma, S., Mulatsih, L. S., & Fitri, R. (2020). Optimization of the Use of Transaction Processing Systems in Minimarkets. KnE Social Sciences, 66-80.

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Businesses constantly strive to improve their business processes to develop a competitive advantage over other enterprises in the industry. One highly competitive marketplace is that of the commercial airline industry.

The Use of Transaction Processing System By Emirates Airlines To Gain Competitive Advantage

Small and large commercial airlines, domestic and global, have all embraced implementing the modern information systems technologies driving the on-demand economy.

Case Study Assignment
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Select an airline such as American, Delta, Southwest, Emirate, etc., and compose a scholarly case study paper that provides details on one of the information systems that the company has implemented in the area of human resources, sales and marketing, customer service, reservations, maintenance, or operations. Be sure to select an information system that has resulted in the airline gaining a competitive advantage. Touch on how the utilization of the information system has assisted the airline’s management or employees in making better decisions, improving the business processes, operating more efficiently, or attracting or retaining customers.