Decisions facing airlines are as not clear cut as most people believe. The obvious response from passengers is that it is best for the airline to lower the price of seats as ‘last minute’ type deals, in an effort to get 100% payload. However, the calculations are not that simple, for example:

• Once a population becomes aware of such strategies – passengers tend to hold back on purchasing tickets until closer to the departure date; the impact on sales volumes of full price fares can significantly impact profitability, and can lead to overall increase in fares
• Ticket fraud also needs to be closely managed – and without the visibility provided by business intelligence can amount to millions of dollars per year in lost revenues
• The rapidly rising cost of fuel and passenger handling services must be factored into the equation – there is a point at which the additional profit from low fares is insufficient to cover the additional payload.

Airline scheduling and pricing profitability are key areas of business intelligence for airlines and other transport related industries.

Airline operators will find detailed insight into how business intelligence is used in the airline industry in my soon to be launched [September 2008] book “The Logical Organization: A strategic guide to driving corporate performance using business intelligence” The book will be available on this site and on Amazon.com

Written by: Gail La Grouw

This downturn comes at a time when manufacturers are struggling with the pressure of globalisation, and competition from lower prices gained by other manufacturers outsourcing all or part of their requirements to low cost regions. This is where business intelligence alone is not the sole decision platform. Social responsibility and moral reckoning come into play as businesses seek to avoid reducing their staff numbers. Since manufacturers often employ large numbers of workers, closing a production line or regional factory can significantly impact whole communities.

Many believe these forces cannot be included in business intelligence programs – yet data around the historical impact of closures, down-sizing and outsourcing can be gathered, and included in ‘what-if’ scenarios.

The threat of employment redundancy causes a great deal of confusion and insecurity within a workforce. Sharing statistics about production, profitability etc with staff can help alleviate the ‘fear of the unkown’ and can often trigger great ideas for improvements and support from the factory floor.
Sharing information helps not only your managers make decisions, but also your workers. Their attitude towards their job is a decision. Their input and dedication to your business is a decision. Thus, business intelligence in manufacturing is not only about intelligent planning and scheduling. It is also effectively applied to HR issues.

Manufacturers will find detailed insight into how business intelligence is used in the manufacturing industry in my soon to be launched [September 2008] book “The Logical Organization: A strategic guide to driving corporate performance using business intelligence” The book will be available on this site and on Amazon.com