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. 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.

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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.

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

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.

Cutting Complexity with Lisa Bodell of Futurethink

InnovationManagement

In this episode, Lisa and Mark reconvene to share more essential tools for leaders and teams to simplify their work environment from her second book, Why Simple Wins , they explore insights into how companies like SAP, Southwest Airlines and Syngenta are putting simplification principles into action.

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. 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. The airline created branded packets of chips, candy and cereal bars that doubled as tickets for a Transavia flight.

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.

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 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. Source: [link].

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.

Coopetition

CREATORS

the similar pursuit of collaboration and competition between firms producing or developing complementary or related products. Cooperation of competitive global players with start-ups and research initiatives seems inevitable.

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.

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.

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.

Change 100

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.

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.

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.

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. Airlines, car manufacturers, and software companies are usually creating and capturing value in this way. Pattern description. Add-on pattern card illustration.

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.

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.

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 Southwest Airlines?—?famously

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 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.

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.

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.

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.

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.

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.

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.