Big Data Changing Airline Industry-Free-Samples for Students

Question: Introduce the idea of big data and associated technologies. Explain how big data is currently changing the airlines industry, and thereby improving customer experience. Answer: Introduction The idea behind introducing big data and associated technologies in the era of technological revolution where large amount of data can be saved and categorized or generated, bagged and processed in a quick time seems a beneficial one. This introduction creates a significant interest in many fields namely healthcare machines, airline industry and baking transactions basically where there are numerous transactions and can be handled by big data in a specific manner. Big data and associated technologies comes with various opportunities of its own knowingly they bring increase in operational efficiency, better and improved customer services, a well-informed strategic direction, attract new customers, products and create greater market coverage. Big data changing Airline Industry It is a well-known fact that big data is changing airline industry in bigger terms therefore improving the customer experience by giving quick response with increased efficiency. Airline industry using big data to make changes for the best of customer as they are known for providing customer experience (Drummond, 2017). They generate: Automated Offers: In order to be creative and stay on top priority between customers, airlines are adopting big data to improve their customer experience. A single booking by customers contains numerous data which is beneficial so airlines are adopting the technique of collecting, detecting and acting system which will help them analyzing hundred and fifty variables in the profile of customer. The system of presenting tailor-made offer, the previous purchases and priorities of customers are measured with the help of big data. The offers can be made for an in-depth analysis of data in order to provide them of personalized offers. Improving Marketing Activities: A next step in personalization improves the marketing efforts of airlines by using big data. Airlines are presenting some special offers where big data collects detailed data from specific customers and such activity would result in positive response from customers which will facilitate airlines to study the customer behavior patterns for marketing activities in future. By analyzing the trends of people who are looking for travelling in a good number then in that case airlines can launch advanced flights (Forbes.com, 2017). Strategies of Pricing and Networking: Big data helps in tracking the purchase activity of traveler and get their demand patters in advance across the world. When the demand seem to be go up for an instance, airlines can alter their prices accordingly. They can get different segments of customers that who are price sensitive and who are not and offer them a price range for the same route. Big data helps catching the information regarding history patterns and forecasts the demand in advance therefore, help in decision making on opening up of new routes and schedule changes. Technology Friendly Flights: Numerous amount of data generated each second during a flight, the reports of incident, pilot, warning and control positions etc. are monitored and analyzed extensively which will improve the flight safety. If machine-learning algorithms are used which consist of a system where vast data sets are crunched to warn regarding the anomalies, also prevent the potential accidents. Challenges for Airlines while Transforming to Big Data Every innovation comes with its own opportunities and challenges and so does the big data has some for airlines. There are challenges with combining and optimizing customer data of airline. Not many airlines are using the 100 percent but only the 12 percent of all and rest it left there. One of the challenge would be the key data which is often uneven across many functions and units altogether. If taking an example the airline data on the experience of passenger is spread across flight operations, complaint databases and various external sources including social media (Saunders, 2017). An integrated source of information of customer is way much expensive and require considerable investment to carry and difficult even if the available budget is large. The real-time IT architectures are used by airline industries and cannot be run on Hadoop or other sources. It is quite difficult to maintain a sustainable competitive advantage from the adoption of big data into operations as it requires a continuous practice in innovation or experimentation with the updated technologies (Batchelor, 2017). Recommendations to Overcome Challenges To overcome such challenges airlines can opt for implementing small-scale CRM that is social media integration if taking an example, for loyalty programs the login can be made available for social media which will help executives to seek out the possibilities of delivering personalized offers and further make case for large scale implementation. A clear and logical plan of action can be made which will help in determining the level of storing and maintaining the social data and conversations in an orderly manner (Chen, Schtz, Kazman and Matthes, 2016). The future ambitions of airlines must depict of how they will handle the data of social media currently. To reduce the substantial investment, airlines can explore the possibilities of using data for the near future with the help of open-source data solutions (Tallon, 2013). Designing Airports of the Future Big data has enabled new design of the airport and solves the massive problems of airport logistics. In the recent summit, CEO of Dubai Airports has opened up about their future plans with an unlimited budget to create such operations for the purpose of making life easier. The use of deep analytics in assigning the gates which will be in a dynamic way. If there is some visibility on incoming planes into onward flights then gates can be assigned in a quite efficient manner that will allow two flights at the airport having numerous amount of passengers in-common so the dynamic gate positions will come close as possible (Davenport, and Dych, 2013). In a new program, retail stores at most of the airports scan the boarding passes of passengers to deliver the notifications regarding departure time, gates and the required time to reach the gates so that there wont be any missed flights experiences faced by passengers. Such program can be setup only with the help of big data and associated t echnologies simple in nature but potent (Raconteur, 2017). Summary This report has highlighted the aspects, benefits, challenges and recommendations to overcome the challenges in adopting big data technology in airline industry. The study has shown how using big data improves the efficiency, reduced the cost structure and created of competitive advantage of airline industries operations. It comes with newest opportunities to improve profits and customer experience globally also there are challenges that industry can face in implementing big data analytics into their operations but they can be handled swiftly by given recommendations explained in the report. It is concluded that big data in airline industry can be beneficial much. References Batchelor, D. 2017.Big Data Means Big Challenges For The Travel Industry. [online] Amadeus Corporate Blog. Available at: https://www.amadeus.com/blog/12/11/big-data-means-big-challenges-for-the-travel-industry/ [Accessed 17 Dec. 2017]. Chen, H.M., Schtz, R., Kazman, R. and Matthes, F., 2016, January. Amazon in the Air: Innovating with big data at Lufthansa. InSystem Sciences (HICSS), 2016 49th Hawaii International Conference on(pp. 5096-5105). IEEE. Davenport, T.H. and Dych, J., 2013. Big data in big companies.International Institute for Analytics,3. Drummond, M. 2017.4 Ways Airlines Can Use Big Data To Make Customers Love Them. [online] W3.accelya.com. Available at: https://w3.accelya.com/blog/4-ways-airlines-can-use-big-data-to-make-customers-love-them [Accessed 17 Dec. 2017]. Forbes.com. 2017.Forbes Welcome. [online] Available at: https://www.forbes.com/sites/oliverwyman/2017/06/16/the-data-science-revolution-transforming-aviation/ [Accessed 17 Dec. 2017]. Raconteur. 2017.High-tech airports of the future - raconteur.net. [online] Available at: https://www.raconteur.net/business/high-tech-airports-of-the-future [Accessed 17 Dec. 2017]. Saunders, A. 2017.How Airlines are Using Big Data Exastax. [online] Exastax.com. Available at: https://www.exastax.com/big-data/how-airlines-are-using-big-data/ [Accessed 17 Dec. 2017]. Tallon, P.P., 2013. Corporate governance of big data: Perspectives on value, risk, and cost.Computer,46(6), pp.32-38.