Lessons From Airline Industry Downtime

Daniel Burrus

If you were one of the millions of travelers impacted by the technology breakdown of two major airlines a few months ago, you have my sympathies. Running an unsupported operating system in an area where security is supposed to be paramount should make us all wonder about other forms of aging technology in the airline industry. In July 2016, Southwest Airlines canceled 2,300 flights when a router failed, delaying hundreds of thousands of passengers.

Rediscovering sustainable competitive advantage

The Future Shapers

Sustainable competitive advantage? Most business leaders I talk to agree that the days of sustainable competitive advantage are over. The reason our search for sustainable competitive advantage is becoming increasingly elusive, is that we’re looking in the wrong places. Exceptionally successful organisations (some well-known like Ritz-Carlton, Apple or Southwest Airlines and some lesser known like Greyston Bakery, On Running or Haufe umantis) are living proof.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Herb Kelleher's Legacy at Southwest Airlines: 5 Important Lessons

Michael Roberto

Source: Southwest Airlines Yesterday, Southwest Airlines co-founder and long-time CEO Herb Kelleher died at age 87. Here are five simple, yet powerful, lessons that come to mind as I reflect on the Kelleher era at the airline: Make tradeoffs. To create and sustain competitive advantage, especially in a brutally competitive industry, you have to zig when others zag. At Southwest, Kelleher chose to run an airline in a very different manner.

Norwegian Airlines: Are They Built to Last?

Michael Roberto

Travelers in my area have been enjoying incredibly low fare trips to Europe on Norwegian Airlines. The question is: Can they succeed in this highly competitive space? The Wall Street Journal's Heard on the Street column has some doubts : The airline operates a very different growth model to tried and tested low-cost carriers such as Southwest Airlines Co. The Wall Street Journal has expressed skepticism about the airline in the past as well.

Strong Airline Profitability? Is it Really About Fees?

Michael Roberto

Source: Dallas News For decades, the airline industry has been characterized by abysmal profits. The list of airline bankruptcies is seemingly endless. airline industry profitability is very strong at the moment - "healthier than ever" according to the headline. The newspaper credits the litany of fees charged by airlines for the strong income numbers: Profit per passenger at the seven largest U.S. airlines averaged $19.65 airline industry Southwest airlines

Virgin just invested in new supersonic jets which travel faster than Concorde

Idea to Value

hours, yet would be cheap enough to run that they would be economically competitive with normal airlines taking more than twice as long. Boom has also reportedly signed a $2 billion (£1.4bn) deal with an unnamed London airline to help it develop its own planes. times faster than any other airliners, up to speeds of 1,451mph (Mach 2.2). Virgin will partner with Boom to buy 10 of its new supersonic aircraft, with ticket prices about the same as current business class.

Travel 160

Brands In Memoriam 2012

CorporateIntel

Here then are my top label farewells for the current calendar year: Continental Airlines : As a result of the merger between United and Continental, the marketing folks did the right thing and picked one brand to make it easier to find your tail logo on the runway. The parade of eliminated airline brands welcomes another, while customers fume with rising prices and deteriorating service.

Four Mind-Bending Business Models to Shake Up 2016

Leapfrogging

It’s all about “playing hard to get” with your customers, something pretty counterintuitive in today’s fiercely competitive world. Sharing internal processes, employee programs, and other organizational best practices are rapidly becoming strategies for creating external competitive differentiation. . The airline created branded packets of chips, candy and cereal bars that doubled as tickets for a Transavia flight.

Four Mind-Bending Business Models to Shake Up 2016

Leapfrogging

It’s all about “playing hard to get” with your customers, something pretty counterintuitive in today’s fiercely competitive world. Sharing internal processes, employee programs, and other organizational best practices are rapidly becoming strategies for creating external competitive differentiation. . The airline created branded packets of chips, candy and cereal bars that doubled as tickets for a Transavia flight.

Why Your Cellphone Bill is Decreasing

Michael Roberto

The same dynamic exists in the airline industry. The airlines have an incentive to cut price so as to fill every available seat, since the marginal costs of an additional passenger are very low. cellphones competition price wars strategyIn an article by Ryan Knutson, the Wall Street Journal reports this morning that, "The cost of U.S.

The Internet of Things Is Creating Smart Airports

Daniel Burrus

The technology failures that caused the widely publicized shutdowns of both Southwest and Delta Airlines in 2016 underscored the very real need to update aging IT infrastructure. Thanks to new technology, many other aspects of airline travel have definitely improved. The tools that we ourselves carry have also improved airline travel. For countless travelers, the term “smart airport” is an oxymoron.

The urge to converge

The Future Shapers

All the textbooks will tell you that to build a successful business in a competitive industry you have to bring something new to the party. The airline industry is a prime example of a competitive marketplace where no-one gets to rest on their laurels. The low-cost airline (LCA) model was pioneered by Southwest Airlines in the USA in the 1970s, with the sole objective of offering cheaper fares than incumbent airlines.

BMI´s 55 pattern cards: ADD-ON

The BMI Lab Blog

This business model offers a core value at a competitive price, while numerous extras drive up the final price. Today, people usually compare prices at Internet platforms, so companies following this business model face strong competition, where winners take it all, as long as the customer will pay extras just to the company first selected. Airlines, car manufacturers, and software companies are usually creating and capturing value in this way. Pattern description.

The Whole Foods Strategy…Isn’t (Whole)

Matthew May

Think Southwest Airlines. In other words, the real competition won’t be Whole Foods vs. Trader Joe’s, it will be Whole Foods vs. 365. There’s an interesting strategic play being made by Whole Foods Markets, in the midst of the company’s nearly $2 billion one-day drop in market value a few weeks ago, on the announcement of a shareholder lawsuit. Whole Foods had already come under legal pressure concerning claims of overcharging, but this new lawsuit claims securities fraud.

The Value of One Good Idea

KindlingApp

For example, in 1972, Southwest Airlines was in deep trouble: they had already been forced to sell a number of their aircraft, and were still losing money at a rapid rate. To make the best of the resources they had, deliver better service to customers, and differentiate themselves from competition, Southwest’s VP of ground operations Bill Franklin introduced the “ 10-Minute Turn ,” a requirement that ground crews unload one flight and board passengers for the next in 10 minutes or less.

The Hard-to-Abate sectors need innovation solutions to reach Net-Zero Co2 Emissions

Paul Hobcraft

There is a myth In the sectors that are termed hard-to-abate industries such as petrochemicals, cement, steel, trucking, airlines, and shipping it is not possible to find non-fossil alternatives, and demand keeps rising. With today’s technology, we can already increase the share of cost-competitive non-fossils from 20% of the primary energy supply to 30%. Source: [link].

Strategy to Execution to enable Intelligent Enterprise

Rmukesh Gupta

For any strategy to get executed, there are a series of things need to happen: Strategy definition process (ongoing): The process used to define the strategy needs to take into account the current reality of the organisation – its strengths and weaknesses, the prevalent culture, internal power structures, external power structures (competition – direct/indirect, customers, partners, etc). Premise.

Gamification and Open Innovation

eZassi

Gamification is the process of transforming tasks or processes into a competitive process to engage users, solve problems, increase productivity, and drive innovation. Examples include: Airline Frequent Flyer Programs. Each of these systems gives rewards for participation, whether it’s crossing the street safely or getting a free airline ticket. Get ahead of your competition by using eZassi’s gamification system to attract the best innovators to your organization.

PESTLED360: Iron Out Key Driving Forces in Your Current Environment and Anticipate Future Ones

Innovation 360 Group

This could for instance be future competitors or collaborators and the force could be competition from new entrants. So, step one : Major players will not be able to compete on short haul, but the new airline can’t handle all the demand on its own. Once you have the strategic initiatives added to the incremental bucket and the radical bucket and know your aspirations and abilities and the landscape of the competition.

Change Your Thinking, Improve Your Results

Daniel Burrus

Just ask Delta Airlines , the British bank Tesco or any other company whose legacy software caused breakdowns and data breaches. Just like old software that can shut down an entire airline, so, too, can legacy thinking cripple your organization. Daniel Burrus has been trusted by leaders from Fortune 500 Companies, the Pentagon and Heads of State to deliver a message that accurately predicts future trends and identifies game chaning opportunities before the competition.

Evolution of Hyperloop: Propelling innovation the Elon Musk way

hackerearth

He said the price for a ticket would rival that of an economy airline flight. While Musk was not developing any commercial Hyperloops and plans lay dormant for almost 3 years, SpaceX announced Hyperloop pod competitions in late 2015 to accelerate the development of functional prototypes. The first competition was held in January 2016, where nearly 700 teams registered. The second competition, which focused on top speed, was held in August 2017.

Coopetition

CREATORS

the similar pursuit of collaboration and competition between firms producing or developing complementary or related products. The motivation to engage in coopetition can vary: Competitors may aim to increase the size of the current market, create a whole new market, become more efficient or improve their competitive position. Cooperation of competitive global players with start-ups and research initiatives seems inevitable.

Crowdsourcing Internal Innovation

Collective Innovation

Regardless of what kind of business you are in there are numerous different types of innovation that can give you a clear competitive advantage and make you more successful. For instance with airlines, you can create a difference by creating a better user experience if most airlines have the same expectation. Several airlines have focused on creating a more friendly experience, better lounges, a better business class, in-flight entertainment, food, etc.

Open Innovation Challenge to Improve Air Travel: Winners Announced

IdeaConnection

Several airline passengers have a little more money in the bank thanks to an open innovation competition in Germany. Participants could submit their ideas in English or German to the competition’s website. They were the winners of the inaugural Frankfurt Airport Innovation Challenge, which asked members of the public from anywhere in the world for their ideas to improve the passenger experience.

Official Launch of the PESTLED360

Innovation 360 Group

This could for instance be future competitors or collaborators and the force could be competition from new entrants. Step one : Major players will not be able to compete on short-haul, but the new airline can’t handle all the demand on its own. Welcome to the Innovation 360 presentation of the world’s first collaborative, data-driven artificial intelligence-driven method and tool for collecting, analyzing, and nailing down what you need to know now and in the future.

When Creative Destruction is the Right (or Wrong) Foundation for Innovation

New Markets Advisors

And it’s the knowledge of when to focus on addition and when to focus on replacement that gives companies a competitive edge and a roadmap for growth. industry, company dynamics, competitive advantages, and so on?—?there Even before industries reach peak maturity, competitive threats may start to pop up. In the airline industry, for example, airlines may offer an array of options that includes Economy, Premium Economy, and First Class, among others.

The 3 Biggest Lessons from Our Financial Services Panel

KindlingApp

In his example, tech companies like Priceline and Orbitz solved the pain of searching for the best ticket price and booking a flight, but remain fully reliant on the established airlines to provide the end service. Expand Perception of Competition. When sitting around the boardroom table discussing competitive strategy it is easy for most companies to compare themselves to others of a similar size in the same industry.

Collaboration in the Time of the Coronavirus: How to Innovate Effectively During a Crisis

Qmarkets

Already we are seeing some worryingly severe consequences, with global stock market volatility, consumer retail hysteria, and whole airline fleets grounded indefinitely. All these benefits could contribute towards your business gaining a competitive edge during this uncertain period. You might even consider running competitions designed to solicit ideas for ways the company could respond effectively to the pandemic.

Innovating Now for a Post COVID19 World

Innovation Excellence

Companies that refuse to give refunds for cancelled or delayed services may be helping out their short-term cash flow, but are seriously damaging customer relationships for the future (Airlines, Ticketmaster, Sports teams especially take note).

Stockholm Innovations for the New Year and Beyond

Innovation 360 Group

Today, the merged Air France and KLM Airlines, once rivals, transport nearly 90 million passengers annually. What I learned, in fact, was more about information – how to acquire it and apply it for competitive advantage in the age of digitalization. I missed the Nobel Prize by a smidge.

A new value chain for next-generation mobility

Corporate Innovation

The competition will be for the right experience (i.e., This is common practice today in the airline industry. I am calling this function out as a separate part of the value chain because, as it is increasingly happening in the airline industry, the fleet operator may decide to outsource its fleet’s maintenance to a specialist. Today, each TNC runs its own reservation system, much like airlines used to do in the past.

What is Digital Transformation in Business and Why is it Important?

Moves the Needle

Digital products in the hands of customers, such as banking, airline or music apps, represent the last piece of the digitization puzzle since many of the back-end systems and processes became computerized over the last several decades. But today, if these same companies face consumers with more knowledge and power, increased competition, and rapid change, execution mode is no longer the right way to work.

The Importance of Casting a Wide Net While Innovating

Qmarkets

Read on to discover innovation best practices from Robert's experience working at a range of renowned companies, including Citibank, Delta Airlines, and most recently Southwest Airlines. Perhaps it’s time to adjust your company’s tactics, to apply what is described in this paper to today’s rapidly changing, competitive environment. . -- .

My Innovation Management Summer Reading: Ideas are Free.

KindlingApp

On the other hand, we have large clients who run annual idea competitions, and monetary prizes do a great job of driving quick participation. The authors cite lessons from corporations such as Toyota, Southwest Airlines, and Kraft to drive home the significant benefits of a correctly executed innovation program. The start of September means we begin saying “last”. Last seasonal beach trip, last barbecue, and the last time to wear those white summer jeans.

The Importance of Casting a Wide Net While Innovating

Qmarkets

Read on to discover innovation best practices from Robert's experience working at a range of renowned companies, including Citibank, Delta Airlines, and most recently Southwest Airlines. Bornhofen is a practitioner-scholar who has a passion for helping organizations adopt change, act on new ideas, and grow through innovation. His Doctorate degree (2012) in Management focused learning in the areas of organizational change, leadership theory, and strategy.

Stockholm Innovations for the New Year and Beyond

Innovation 360

Today, the merged Air France and KLM Airlines, once rivals, transport nearly 90 million passengers annually. What I learned, in fact, was more about information – how to acquire it and apply it for competitive advantage in the age of digitalization. I missed the Nobel Prize by a smidge.

Brands in Memoriam 2013

CorporateIntel

Blockbuster was two generations behind the innovation curve, and when Dish Network bought Blockbuster ostensibly as a storefront competitive tool in its battle with DirecTV, it was too little cavalry too late to justify the ongoing operating costs. MetroPCS : Remember when we could look forward to airwaves of virtually unlimited choice and price competition due to the wonders of telecom deregulation?

Automakers Must Partner Around Big Data

Corporate Innovation

Like an airline does with its planes, Uber always wants to understand which of the vehicles in its service are more efficient and allow for higher utilization, while providing the highest satisfaction to the passengers. Geolocation data, including the starting point and destination of each trip, which they use in order to establish each ride’s price and thus remain competitive with other options each passenger has.

Automakers Must Partner Around Big Data

Corporate Innovation

Like an airline does with its planes, Uber always wants to understand which of the vehicles in its service are more efficient and allow for higher utilization, while providing the highest satisfaction to the passengers. Geolocation data, including the starting point and destination of each trip, which they use in order to establish each ride’s price and thus remain competitive with other options each passenger has.

Automakers Must Partner Around Big Data

Corporate Innovation

Like an airline does with its planes, Uber always wants to understand which of the vehicles in its service are more efficient and allow for higher utilization, while providing the highest satisfaction to the passengers. Geolocation data, including the starting point and destination of each trip, which they use in order to establish each ride’s price and thus remain competitive with other options each passenger has.

Can You Afford Your Legacy System?

Daniel Burrus

In another blog , I noted how outdated technology grounded thousands of aircraft for both Southwest and Delta Airlines. For one thing, as the airline example underscores, having outdated technology in place only boosts the risk that something eventually is going to misfire (in the case of Delta’s shutdown, it was discovered that some 300 of its 7,000 data center components had not been configured correctly).