Southwest Airlines is one of the greatest domestic airlines that deliver first and foremost high-frequency, short distance, low cost, point-to-point service. Today, South West Airlines in 62 cities handles over 400 Boeing and 737 aircraft. In the domestic airline industry, it has the minimum operating cost structure and constantly provides reduced and simple fares. Southwest Airlines also has one of the topmost records in overall Customer Service.
Southwest airlines modify leadership with their Business intelligence (BI) to handle more strategic investment projects and lower cost. IT and business leaders of airlines acknowledge that their Intelligence efforts were not matched with the requirements of the business and over time this difficulty would continue to worsen unless remarkable modification was made.
So, they involved Hitachi Consulting to conduct a newly formed team of BI through a lengthy modification process to rectify the issues, authorizing the Business Intelligence team to become self-sustained in their leadership. After the regular effort of investigation, Hitachi Consulting discovered that this was due to several reasons for including the structure, organization, technology, governance, and business partnership.
Hitachi Consulting is the worldwide IT solutions and professional services organization. Hitachi Consulting collaborates with South West Airlines to help them to develop faster, increase operational productivity, and understand measurable, continual business and common value. It's clear that they understand what customers need and they've taken what works in the airline industry to the next level.
To achieve more productivity in business south wales Airlines required constant communication with all stakeholders, involvement of all business partners in decision making, making a hard decision against the board about the organization, and commitment to the BI program by the stakeholders.
As Southwest Airlines' BI initiative starts, and after the execution of the modified initiative, the number of investment projects being taken per year has leaped from three to eight and the average cost of each project being taken has set down more than 45%.
The business model of Southwest Airlines is constructed on very well organized operations, reduce-cost pricing, and creative strategic solutions (Diaconu Maxim, 2012). Moreover, their plan of action also contains a huge focus on client experience and planning. At last, none of this would be feasible without an enthusiastic team of workers (Ross & Beath, 2007).
Southwest Airlines leaders faced some challenges in their business so to overcome their challenges they collaborate with Hitachi consultancy. Hitachi discovered that Southwest Airlines was experiencing a performance problem in its capability to provide significant and valuable Business Intelligence outcomes to their business customers. They exposed many correlated fundamental reasons such as segregated organization structure; Poor partnership; insufficient governance and categorization activities; insufficient data architectures; inadequate methodologies ("Southwest Airlines Business Intelligence Change Leadership", 2020).
In collaboration with Hitachi Consultancy, Southwest Airlines addressed some of the key solutions to the problem. During the process they streamlined the BI team within IT; change the strategy for performance management and IT; innovatively design the management; enhanced the relationship between the Business customer and BI team; Designed and direct the execution of the first release of the Enterprise Data Warehouse of Southwest Airlines; Served in the formation of innovative strategic group and position of leadership (Reed, 2020).
Southwest Airlines had the best technologies but still, they required a holistic approach together with the strong execution of leadership in their business. So they required- constant communication with all partners, the involvement of all business partners in making the decision, to make the hard decision against the board about the organization and commitment to the BI program by the stakeholders ("Leadership Analysis: Southwest Airlines - Herb Kelleher, CEO", 2018).
After taking the initiative of changing the leadership Southwest Airlines business starts earning more profits. Some of the initiation include-the self-sufficient BI team; improved efficiency with the efforts of the BI/DW team; increase in the number of significant projects from three to eight every year; reduction in the average cost of each project by more than 45 %( Reed, 2020).
Diaconu Maxim, L. (2012). The Development of the Low-Cost Carriers’ Business Models. Southwest Airlines Case Study. Annals Of The Alexandru Ioan Cuza University - Economics, 59(1). https://doi.org/10.2478/v10316-012-0016-7
Leadership Analysis: Southwest Airlines - Herb Kelleher, CEO. (2018), 15(1). https://doi.org/10.33423/jlae.v15i1.635
Reed, D. (2020). Southwest Aims To Keep Costs Lower Than Competitors By Saying No To More Federal Debt. Forbes. Retrieved 5 September 2020, from https://www.forbes.com/sites/danielreed/2020/08/20/southwest-aims-to-keep-its-costs-lower-than-competitors-by-saying-no-to-more-federal-debt/.
Ross, J., & Beath, C. (2007). Building Business Agility at Southwest Airlines. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1020963
Southwest Airlines Business Intelligence Change Leadership. Hitachivantara.com. (2020). Retrieved 5 September 2020, from https://www.hitachivantara.com/content/dam/hcc/en/documents/industries/transportation/southwest-airlines-business-intelligence-change-leadership.pdf?source=hcc-redirect.
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