Enterprise Resource Planning in Emirates Airline

Enterprise Resource Planning in Emirates Airline

The Task Enterprise Resource Planning (ERP)
Select a company (manufacturing or service) and consider your chosen topic in that company. To prepare
your presentation, you should cover the relevant literature and analyse your selected company in terms of the
chosen topic.
To collect data, you can use primary data (interview with managers of your selected company) and/or
secondary data (i.e. company’s website, newspapers, articles, etc.)

Referencing All sources must be referenced using the Harvard style.

Solution

Introduction
Businesses that are complex in nature require information systems that will cater for their
customers’ needs especially for the companies that are based on providing services. Emirates
Airline has contracted Emirates Flight Catering services so as to be more effective and more
productive in the airline services. Enterprise Resource Planning can be used by many companies
as a business tool to make a business more flexible and more efficient and be more competitive
in the business environment. ERP combines all the departments in an organization for example,
human resources, accounting and finance, production, sales and marketing and customer
relations among other minor departments. ERP is aimed at streamlining information and
organizational processes so as to make the interaction between employees, management and
customers easier and more reliable. The purpose of this project is to analyze Emirates Airline
with relation to its Enterprise Resource Planning.

Background of Enterprise Resource Planning
ERP has its roots in the early 1960s where it was mainly involved with inventory
management specifically in the manufacturing organizations. ERP in the 1970s had been evolved
to be more involved in the production processes. The 1980s were characterized by ERP systems
that covered more of the manufacturing services which were no longer limited to inventory
monitoring but also all back-office operational services were well catered for. The current ERP
system caters for Business Intelligence and includes ecommerce such that in an airline company
flight booking can be done through the internet which is obviously more efficient, effective and
convenient. Marketing airline services can thus be made possible increasing the competitiveness
of an airline company that uses effective ERP systems. Evidently, the rapid growth of companies

can be owed to the ERP systems as they encompass all the services that can make a company to
handle all their services in a quick and efficient way (Sutton, 2012).

The Emirates Airline
The Emirates Airline has its headquarters in Dubai in the UAE; founded 1985 operate
over sixty flights per day. The company was generated from The Emirates group for the purpose
of making air transport easier. In its advent it had about thirty-seven aircrafts but that has
increased to about a hundred and ninety-five aircrafts. The airline has about forty people to work
in the information systems department every day and night. Emirates Airline is responsible for
air transport globally which makes it necessary to have an ERP system which supports the
interaction of human resources all over the world. Among the cities served by this airline are
London, Dubai and other 140 destinations. The Emirates Airline has been using Oracle database
for the purpose of managing their ERP systems and solving problems related to information
management. The contract Emirates Airline made with the Emirates Flight Catering helped in
making the company more flexible. The challenges that are being faced in most of the
departments for the Emirates Airline, particularly the Finance and governance department is to
cope with the rapid growth that is being experienced by the company considering that the human
resources department requires reinforcement in all levels to ensure that the growing numbers of
customers are served consistently. The quality standards of the airline have been improving
owing to the new technologies introduced by Oracle. Kim Morris, the ERP product manager in
the Emirates Airline has supported the choosing of Oracle database mainly because of the
flexibility it has offered for the Emirates group.

Business Functions that require ERP system in the emirates airline

Since the Emirates Airline is mainly involved in providing services to people, some
departments or functions have been necessary. The functions include, Human Resource
Management, Customer Relationship Management, Financial Management, Supply Chain
Management, Business Intelligence and Marketing Management.

Human Resource Management

The Emirates Airline uses Oracle database systems to manage its human resources such
that the employees have a better platform to air their views and assist the management in the
decision making processes. The company’s employees also have t interact with employees in
other organization within the Emirates group and this is the main reason why the ERP that
integrates all business processes of the group has been necessary. In this case, the Oracle
Software has been used to provide solutions to the company that help minimize the costs related
with managing human resources. The company recognizes the services offered by Oracle as ideal
due to the simplification and modernization of processes thus promoting the employee morale in
the day to day activities.
According to Monk, and Wagner, (2012), the importance of the HRM function is to
mainly support the sales and marketing for the purpose of promoting the business. In the
Emirates Airline this purpose has been met due to the fact that the company has been using
software which links the functions of human capital and those of the marketing department. The
company uses Service Oriented Architecture in the Oracle software which makes the services
offered by the company’s employees viable. The implication is that the company will be able to
go in line with the changes likely to occur all through the airline industry in the present and the
future. Addo-Tenkorang, and Helo, (2011) also identify that the company can be able to create

easier operations within and without owing to the reduction in complexity of the ERP system.
The company also acknowledges the role of management in the HRM system such that the
implementation of the ERP system is guided by the unit managers (Hoch, and Dulebohn, 2013).

Customer Relationship Management (CRM)

The business mainly deals in achieving customer satisfaction and focuses mainly on the
relationship the airline has established with the passengers. Using Oracle software the company
can be able to determine the level at which customers have found the services satisfying and
whether the customers remain loyal to the company and if not the reasons for such. The aim of
such a process is to ensure that customer loyalty is increased and improved in every financial
period. Through Oracle Emirates Airline has been able to deliver consistent services because of
the improved technology in every season. Customers also have personalized experiences with the
company’s employees enabling them to improve their relationship with the company in general.
The company also ensures that customers find out about their new advancements and
improvements through the Oracle software.
According to Heller and Parasnis, (2011) recent businesses gain contact with their
customers through social media which is the case even for Emirates Airline. The use of
Facebook, twitter, Instagram and other social media platforms helps in establishing a personal
touch between the company and their customers who can comment about the services they get.
The social media platforms are also known to allow for customers to be involved in the
marketing or advertising processes of the company as they comment on the good services. The
company is advised on the data to avail for the public so as to avoid negative competition
through other companies using their information for competitive advantage. The deception

existent in the social media is however warned against because of customers who might not
exactly state the reality that is on the ground. Some customers may not be interested in social
media which bring to conclusion the importance of using Oracle software for the purpose of
improving customer relationships.

Financial Management

Emirates Airline has a transparent Accounting and finance functional unit that
incorporates all the financial requirements and usage in the company as well as in the whole
Emirates group for comparison purposes. The existence of proper budgetary estimation for the
Finance and Governance of the company makes it easy to plan the future expenditure and the
group can hold the company accountable. According to Monk, and Wagner, (2012),the
Accounting and Finance department integrates all the functional units because it is involved with
the prediction and final payment of employees linking it to the Human Capital Management.
Finance departments in many companies are used in the determination of supply chains as
matters of costs and how to reduce them and make the highest returns are planned. Accounting
and Finance data can be used by the marketing department in calculating how much funds have
been used against the amount of promotional returns that have been achieved.
The Emirates Airline has been determining the future achievements based on the past
financial attainment. The Oracle software has made it possible for the airline to manage their
expenditure through the reduction of unnecessary costs especially considering the transparency
of the information to the whole of the Emirates group. The challenge faced however is with the
current rapid changes in the technological advancements and the increasing numbers of
passengers requiring air transport. In this case it can be hard to predict the financial requirements

since the number keeps rising. In the same way the company will have to increase the number of
aircrafts to operate with and this simply means that more investment will be required. The Oracle
software has made it possible for the reduction of this risk because it provides solutions in the
Finance department.

Supply Chain Management (SCM)

The airline business being the fastest growing industry, a well developed supply chain
management system is of utmost importance. The Emirates Airline is involved with the
transportation of cargo and human travel such that more than four hundred flights are made on a
daily basis. This has been an improvement because in the past the number of flights that were
possible in a day was about sixty in number. The use of Oracle software has enabled the
Emirates Airline to be highly competitive mainly against new entrants due to its effective SCM
system. This has been possible through the reduced costs for the airline which has ensured high
quality services at highly competitive rates. Customers are aware they can count on the company
for leisure and business travelling in a timely manner since they can book their flights at the
comfort of their homes.
The Emirates Engineering has been developed by the management team to ensure
effectiveness in the SCM of the Emirates Airline. However, the SCM of this airline has
challenges that require to be addressed so as to ensure better competitiveness including
managing procurement operations. According to Monk, and Wagner, (2012), the SCM processes
include the transportation of products to customers as the final stage. In the airline industry, this
could be the first stage as it involves the transportation of people and their cargo, meaning it is
the main purpose of the aviation industry and more so for the Emirates Airline. The SCM system

is thus invested in highly by the Emirates Airline. The company integrates the marketing and
supply chain management functions as they perform to bring the same results; to improve
customer loyalty. The SCM of the Emirates Airline has been designed to ensure that cargos are
well stored to prevent them from being spoiled.

Business Intelligence (BI)

The existence of information systems that ensure managers, subordinate employees and
the customers make informed decisions are available for the Emirates Airline is a main reason
for the success achieved by the company. The Oracle software includes options for viewing all
the available data such that the customers are well aware of the information readily available for
them. The executives are also free to access all the data that is available relating to the entire
functional unit. For example, the executives get unlimited access to the company’s financial
budget which includes the profits or losses for the current and the previous periods and they can
be able to predict the future of the business using the information relayed. The company includes
e-commerce systems and marketing intelligence that help in them knowing how much
satisfaction is required in the airline’s customers (Chen, Chiang, and Storey, 2012). In this case,
customers are given the authority to control their value and satisfaction level since their feedback
is required and they can still book their flights from where they are. Through this the company
has been able to counter the challenge of technology advancement as it is able to keep up to date
with technological improvements. The accountability of employees has been ensured since
Business Intelligence ensures transparency of all members involved. According to Chaudhuri,
Dayal, and Narasayya, (2011), BI allows for simultaneous performing of different tasks whereby
the company’s employees can spontaneously perform the tasks they are required to handle. This
reduces the level of challenges that are encountered during the period of carrying out business

especially through the slow recording of transactions. The company’s dealings with other
companies in the Emirates group as well as with other external companies has been made
possible and with lower costs involved which can be said to be the company’s achievement.

Marketing Management

The marketing and sales department has a nature that makes it complete after its
combination with all other departments. However, in the airline industry this department may be
seen to act independently and in many ways it affects the functioning of all other departments.
For example, if the marketing department is lagging behind the Emirates Airline would not make
proper financial returns since customers may not be able to learn about the company. The
Emirates Airline has used the services of Emirates Flight Catering (EFC) that have enabled for
the company to be more competitive since EFC provides services for other airline companies.
The implication is that Emirates Airline has been directly competing with the other airline
companies.
The marketing department is dependent on the HRM department though because it
requires hired employees to work in it and the process of hiring is a responsibility of the HR
department. Monk, and Wagner, (2012) stated that the profitability of a company is dependent on
how much the company has invested in the marketing department. In the airline industry it will
be more important to invest highly in the marketing unit because the company has major
competitors. The company allows for customers to communicate their preferences via different
media such as phone calls, social media, and emails. This makes it easier for the company to
market their services as well as find ways of correcting the existing mistakes. The ability of the
company to market their services and increase the number of passengers has enabled it to have

lower costs due to the fact that their prices have also reduced. In this case the company has been
able to offer their services globally and nationally in lower prices which makes it more
competitive.

Conclusion
The Emirates Airline has been using the Oracle software for the purpose of improving
Enterprise Resource Planning. The functional units of the business that require the software are
interconnected since they all have the same purpose of making the airline more profitable and
thus more competitive as compared to the other airlines in the UAE. The fact that the Emirates
Airline has been based in different countries is one of the reasons why Oracle software is ideal
since it allows for the company to have the advantage of interactions between it and the
customers. The functional units that require ERP are marketing, customer relationships, supply
chain, Business Intelligence, human resources and financial management.

Reference list

Monk, E. and Wagner, B., 2012. Concepts in enterprise resource planning. Cengage Learning.
Retrieved from;
https://books.google.com/books?hl=en&lr=&id=AWAJAAAAQBAJ&oi=fnd&pg=PT8&
dq=enterprise+resource+planning&ots=tTztmGTK3t&sig=5-
MGhVwhQYl7iDG3JNB5eNGuoww&redir_esc=y#v=onepage&q=enterprise%20resour
ce%20planning&f=false
Hoch, J.E. and Dulebohn, J.H., 2013. Shared leadership in enterprise resource planning and
human resource management system implementation.Human Resource Management
Review, 23(1), pp.114-125. Retrieved from;
http://rohnasiri.ir/files/Building%20Capacity/Articles/Shared%20leadership%20in%20en
terprise%20resource%20planning%20and%20human%20resource%20management%20s
ystem%20implementa.pdf
Chen, H., Chiang, R.H. and Storey, V.C., 2012. Business Intelligence and Analytics: From Big
Data to Big Impact. MIS quarterly, 36(4), pp.1165-1188. Retrieved from;
http://hmchen.shidler.hawaii.edu/Chen_big_data_MISQ_2012.pdf
Chaudhuri, S., Dayal, U. and Narasayya, V., 2011. An overview of business intelligence
technology. Communications of the ACM, 54(8), pp.88-98. Retrieved from;
http://web.ist.utl.pt/~ist13085/fcsh/sio/casos/BI-Tech2.pdf
Heller Baird, C. and Parasnis, G., 2011. From social media to social customer relationship
management. Strategy & Leadership, 39(5), pp.30-37. Retrieved from;
http://heuristic.kaist.ac.kr/cylee/xpolicy/TermProject/15/4.%20social%20media.pdf

Sutton, M., 2012. Taking ERP to the next level. Online <http://www.itp.net/591262-taking-erp-
to-the-next-level>
Addo-Tenkorang, R. and Helo, P., 2011, October. Enterprise resource planning (ERP): A review
literature report. In Proceedings of the World Congress on Engineering and Computer
Science (Vol. 2, pp. 19-21). Retrieved from;
https://www.researchgate.net/profile/Richard_Addo-
Tenkorang/publication/235256628_Enterprise_Resource_Planning_ERP_A_Review_Lite
rature_Report/links/00463514ace89e0128000000.pdf

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