Continental Airlines - 1616 Words

Managing IT for Business Continental Airlines: Outsourcing IT to Support Business Transformation Questions: 1. Why is it necessary to have top management support for the implementation of technology innovations? Innovation implementation require adequate resources including money, but more importantly, people and time. These resources will not be formed without top management support. Top management support is essential for the project since it is they who allocate the funds which turn the wheels of changes in the organization. At all stage of implementation, management must monitor and change the process if necessary (Mohini and Dianne, 2004). In the case of Continental Airlines, Janet Wejman who were the Chief†¦show more content†¦There will be also a reduced sense of control after outsourcing. Close monitoring are required for both parties to ensure the performance and operation comply the contract along the way. 4. Why must long-term outsourcing contracts be flexible? IT field as one of the fast moving industry among other industries. The changes in the business operations periodically require upgrade or even changes in technologies. The obvious example from Continental case was the shift in technologies from mainframe to client-server. Continental will face some difficulties if they are not able to equip with the newer technologies which is a very competitive edge in the competition. With a proper management of the up-to-date outsourcing contract, Continental are able to explore and expand their current business opportunity. Besides that, flexibility for the outsourcing contracts are required to narrow down the gap between Continental and EDS. As both company have their own management style and operation, there will not be a perfect solution given only at a point of time. Close coordination, review meeting, monthly meeting and other communication channel are required for a long term cooperation. Once the gap or difficulties are identified, both c ompany are not only obeying the standard rules or policy stated in the agreement only where mutual effort must be given to solve the issueShow MoreRelatedContinental Airlines900 Words   |  4 Pagescase case Continental Airlines: One Company’s Flight to Success In the last decade, Continental Airlines has had a spotty track record. The airline twice filed for bankruptcy, realized diminished performance culminating in a $613 million loss in 1994, and was ranked dead last in industry indicators such as on-time performance among the major carriers. During these years, employees at Continental had undergone several series of layoffs and withstood both wage cuts and delayed wage increases inRead MoreContinental Airlines13067 Words   |  53 PagesCase Study Data Warehousing Continental Airlines I. 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