Southwest Airlines Impact of Innovation and Technology Management

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Abstract

Aviation has experienced multiple challenges over the past decade due to economic, political environmental, and sociocultural issues, the pandemic having been one of the major causes of its setback. However, some companies, including Southwest Airlines (SWA), have managed to overcome these challenges by integrating innovative technological solutions. Nevertheless, SWA has been facing significant issues with flight delays, which have been affecting its performance and overall reputation. Thus, a thorough analysis of the issues with the implementation of innovation in the SWA context will be required.

Introduction

The aviation industry has experienced some significant changes recently, causing numerous companies to revisit their stance on multiple issues regarding core management processes. Among these changes, the ones caused by technological innovations and the associated shifts in the coordination of essential aviation-related issues deserve to be listed first. The recent surge of innovative technological ideas and their pervasive nature that has made them percolate into every industry has defined a notable shift in the quality of performance across an array of airline companies, the Southwest Airlines (SWA) being an excellent example. Due to its ability to incorporate innovative technology into its operations, ranging from flights to maintenance to customer communication, SWA has managed to thrive despite the crisis. However, because of the lack of focus on introducing innovative tools for making forecasts and conducting a thorough analysis of the key weather changes, SWA has generated multiple delays across its supply chain. While SWA has been known for its technological innovation in marketing and logistics, the lack of innovative solutions in the management of forecasts-related issues and the identification of key risks associated with delays, the company has been faltering, which proves the importance of introducing innovation homogenously across all performance domains.

Problem

Up until recently, the overall performance of SWA has been nearly perfect, with an impeccable strategy for managing core tasks associated with logistics and operations management. Specifically, the existing accounts of SWAs performance demonstrate the companys excellent score (Tayeb, 2022). The same can be said about SWAs marketing and the related issues (Tayeb, 2022). However, over the past couple of years, the issue of delays has become a particularly pressing concern for SWA, especially as far as its passenger transportations are concerned (Tayeb, 2022). Several recent reports indicate that the issue of delays has been appearing consistently and affecting the customers perception of the company to a significant extent (Tayeb, 2022). Therefore, the problem of delays needs to be examined, particularly, in connection to other aspects of the company performance, specifically, SWAs outstanding use of technological innovations and threated opportunities in cost management marketing, and logistics.

Theoretical Background

To investigate the specifics of SWAs performance in the present-day economy, especially in relation to its use of technological innovations to address current concerns, a theoretical framework base on the innovation Matrix should be used. Namely, the innovation-riven process served at SWA will be placed on the innovation matrix to determine where it stands on the axes of Disruptive vs. Sustaining and Incremental vs. Radical (see Fig. 1). The specified approach will help identify the nature of innovation at SWA ad examine the effects of implementing the specified innovation policy in the corporate setting. Most importantly, the proposed framework will help determine whether the specified type of innovation suits SWAs current business model and needs. Thus, the problem of delays observed in SWAs current performance will be studied thoroughly, with detailed suggestions concerning possible improvements provided.

Purpose and Rationale

The significance of innovation and the tremendous role that it plays in a companys competitiveness and ability to respond to a crisis have become evident over the past decade. Therefore, understanding how organizations can encourage innovation on every level of their performance, as well as what impediments they face when doing so, is central to the further pursuit of incremental progress. Therefore, the analysis of SWAs case is essential for contributing to the specified issue. Namely, considering the streak of success that SWA has been enjoying up until recently, the role that innovation played in it, and the reasons behind the recent deadline-related failures will lead to a better understanding of the issue. Specifically, the outcomes of the analysis will inform the further design of strategies to be adopted in the business environment in order to boost the levels of innovation. More importantly, options for integrating innovations organically into the corporate setting and ensuring that they are aligned seamlessly with corporate standards will be identified. Thus, while studying the nature of SWAs innovation is the core purpose, the rationale is based on the necessity to promote innovation in other organizations as well, making it an integral part of the present-day business context.

Methodology

To identify the main methodological approaches, one must consider the nature of this study closer. Specifically, this study seeks to answer the following questions:

What makes SWAs approach to innovation particularly effective?
Why has SWA encountered delay-related issues in its SCM recently despite the integration of innovative solutions?
What suggestions regarding the improvements to be introduced into the SWA setting can be made?
How can the recommendations for SWA be extrapolated onto the broader scope of the aviation industry and the global business setting, in general?

Evidently, the questions above are essentially qualitative in nature. Therefore, the qualitative research methods will have to be applied. The case study research as the approach that examines a specific phenomenon in a real-life context will allow examining the specified issues particularly closely (Ngulube, 2019). In order to achieve the required outcomes, the interpretivist approach and the inductive method will be applied to the study, particularly, data collection and its analysis. Thus, the premises for examining the nature of the phenomenon of innovation in the corporate context will be established.

Furthermore, it is worth noting that, to embrace the full extent of the nature of innovation at SWA, the issue will have to be considered from multiple perspectives. Therefore, a multidimensional framework, particularly, the multi-method qualitative approach, will be utilized. Finally, in order to support the multidimensional approach in question, the use of cross-sectional methodology will be required. Specifically, a combination of information collected with the help of the questionnaire tool to be introduced further and a review of the existing reports and literature will be provided.

The data will be collected from SWA managers and employees to establish the nature and key effects of change observed at the company as innovative approaches were integrated into its performance framework. For this study, twenty (20) participants were selected as a sample size, with staff members being represented by sixteen (16) participants, and the managers being the remaining four (4). The changes observed within the company, as well as the staff members perceptions of these changes, were represented as the key dependent variables, whereas the innovation factor and the approaches to its implementation in the corporate setting were viewed as the main independent variables.

Results

The data collection process has returned mixed results which can be explained by the complexity of the issue and the presence of a certain amount of subjectivity in the responses of the participants. Moreover, the risk of a subjective interpretation of the submitted data in the course of information analysis should also be seen as a major limitation of the study. Nevertheless, the expanded range of research participants and the presence of different data types has helped minimize the probability of core information being misrepresented. S

The responses of the participants have indicated that a substantial portion of SWAs company members were largely unaware of the implications of the innovative solutions adopted at the organization. Specifically, in the course of the thematic analysis of the submitted information, the themes and notions of confusion about the nature of innovation and the manner in which it should be implemented in the corporate context have been raised (35%). Additionally, a significant range of the respondents indicated that the issue of delays has become a major impediment in the functioning of the company and their performance despite the innovative solutions (75%). Specifically, the respondents mentioned that the nature of innovation in the corporate setting has been associated with the following qualities: inconsistency (25%), communication issues (50%), leadership issues (10%), and management concerns (10%). The described outcomes indicate that the absence of tools for seamless incorporation of innovation principles across all departments has been causing disruptions in SWAs performance.

Furthermore, the issue of delays has been raised in connection to the integration of innovative solutions in the corporate context quite frequently. Namely, the questionnaire results prove the presence of a major issue in the target environment. Specifically, the specified response proves that the organization has been struggling to adjust it approach to the context of the present-day aviation environment, particularly, the forecasting issue. Indeed, due to the increased impact of economic, political, financial, technological, and sociocultural obstacles, the emergence of delays in plane arrival is to be expected (Bradford & Scheraga, 2020). However, the current rate as demonstrated in the recent statistical data indicates that SWA has been having problems integrating innovative solutions into its service delivery management, particularly, communication and quality assurance (Bradford & Scheraga, 2020). Therefore, the theme of poor integration of innovation principles into the corporate setting emerges as one of the key issues.

Positive Effects

The range of positive effects of innovative solutions in the SWA context has been quite clear. Baes on the responses of the questionnaire participants, as well as the data recently supplied in reports and the related media, the introduction of innovative solutions has affected DWAs marketing and customer communication. Furthermore, among the positive outcomes of the integrated innovations the overall quality of service has increased (Airline quality rating, 2022). In the 2022 Airline Quality Rating, SWA showed a slight (-1.20%) drop in performance in July, which, compared to other airline companies, landed SWA at the top of the list (Airline quality rating, 2022). Therefore, general improvements in the quality of managing customers needs and technological aspects of the flight process have been evident.

Negative Effects and Their Causes

At the same tie, one must point out the obvious problem with delays observed recently at SWA. Specifically, reports have outlined an evidently negative trend at SWA in relation to delays and the associated cancellations of flights (On-time performance Reporting operating carrier flight delays at a glance, 2022). Specifically, the percentage of delayed flights has soared lately, reaching a nearly inadmissible level of 23.29% in 2022 (On-time performance Reporting operating carrier flight delays at a glance, 2022). The specified trend is indicative of a serious problem within the SWA context, which the proposed innovative solutions evidently fail to address. When considering the specified piece of information in conjunction with the staff members and managers commentaries on the issue and the nature of the situation, one will recognize an obvious execution problem. Namely, while some areas of the companys performance, such as marketing and performance maintenance, have been enhanced significantly by innovative technology, others, such as forecasting and communication with core partners allowing to minimize errors and the resulting delays, have been abandoned (On-time performance Reporting operating carrier flight delays at a glance, 2022).

The described trend indicates the lack of an innovation management framework allowing for a seamless implementation of innovative solutions across the organization. Specifically, SWA needs to recognize the importance of weaving innovation into the very fabric of its corporate performance, decision-making, and business strategy. The proposed solution will allow integrating innovative ideas into every facet of SWAs supply chain, therefore, making it possible for company members and employees to communicate crucial information effectively to all participants and introduce the required changes effectively (On-time performance Reporting operating carrier flight delays at a glance, 2022). Thus, the issue of delays will be managed accordingly.

Specifically, the existing reports show the lack of innovative solutions being included into the areas of forecasting and communication between different departments of the airlines. In turn, the specified aspects of SWAs performance are central to the proper functioning of the airlines and the delivery of respective services (On-time performance Reporting operating carrier flight delays at a glance, 2022). Therefore, the inclusion of tools that will allow making innovation an essential part of and premise for any aspect of a companys decision-making must become the main approach to addressing the issue of delays and the related concerns especially pertaining to the quality and security of services. Therefore, based on the matrix above, the nature of innovation within the company can be described as radically disruptive, meaning that it has affected the performance of the company immediately and in a nearly uncontrollable manner. In turn, the shift toward the incrementally sustainable innovation framework is highly desirable in the current situation.

Conclusion

Due to SWAs failure to maintain its innovation as incrementally sustaining and, therefore, integrate it into every facet of its performance management, the organization has been facing major performance quality issues, particularly, in relation to delays. Therefore, it is highly recommended that SWA should incorporate the concept of incremental innovation into its framework and, therefore, encourage an immediate improvement. With the focus on integrating innovation into every facet of the companys performance, one will be able to address the present situation.

Contribution to the Topic

This paper contributes to the topics of aviation and change management in aviation by examining some of the key issues in one of major airline companies. Specifically, the research examines the introduction of innovative practices within an airline company and the [problem of delays observed within it despite the changes. As a result, suggestions concerning possible improvements in the quality of forecasts and the resulting planning, communication, and flight management are offered. Notably, this paper introduces the concepts of blokchain and incremental innovation practices into the aviation context. Specifically, the importance of embracing both technological and organizational factors leading to the development of delays in the corporate context and delivery of relevant services is studied and ultimately, proven in this paper.

Problem Resolution

To introduce innovation into the environment of an airline company as the basic premise for any corporate decision-making, one must consider the integration of blockchain technology principles alongside with the use of AI. Particularly, AR and VR devices as the means of modeling the target environment and making relevant predictions should be considered as a vital step in improving the current issue of delays and quality management, as well as addressing the problem of a drop in customer satisfaction. Specifically, the adoption of blockchain technologies will allow for seamless management of data across the entire supply chain, therefore, delivering essential information from one party to another. As a result, errors and similar issues leading to performance bottlenecks and the resulting delays will be addressed effectively.

Moreover, since a significant portion of responses concerning the introduction of innovative technology into the corporate context has indicated that substantial number of staff members have a very vague idea of the role that these innovations play in the corporate context, respective adjustments must be made to the corporate communication approach. Namely, the role of innovation and the associated issues must be communicated clearly to company members so that they could integrate not only innovative tools but6 also innovation-based philosophy of the organization into their decision-making. Thus, appropriate changes will be made to the aviation context, leading to major improvements in the management of delays and the related issues.

Furthermore for a more seamless integration of the proposed tools into the target setting of aviation, AI-associated innovative solutions, particularly, AR and VR. Must be seen as central to the management of the delay issue. Specifically, increased accuracy in the modelling of possible scenarios and the identification of the available solutions will lead to an improved approach to managing extraneous factors As a result, delays will be avoided in the target context.

Conclusion and Implications

Overall, it is strongly recommended that the focus on maintaining connection between the performances of the departments by incorporating blockchain technologies and the related data management tools should remain a priority. The specified recommendation is true both for the SWA Company and other organizations operating in the aviation sector. Since delays in airlines may be emblematic not only of organizational issues within company, but also security- and safety-related concerns, integrating technologies allowing for seamless data transfer is central for maintaining a companys performance and its positive perception yb7 the target audience. Therefore, blokchain tools and the integration of data management techniques allowing for the active dissemination of information related to forecasts and analysis results, are an indispensable contribution to the improvement in the functioning of the aviation industry.

References

Airline quality rating. (2022). Witchita.edu. Web.

Bradford, B., & Scheraga, C. (2020). Relative Trends in Exogenous Factors Influencing Airline Flight Delays. Journal of Transportation Management, 30(2), 5-21. Web.

Ngulube, P. (2019). Handbook of research on connecting research methods for information science research. IGI Global.

On-time performance Reporting operating carrier flight delays at a glance. (2022). BTS.gov. Web.

Tayeb, T. (2022). Southwest apologizes and blames technology glitch for hundreds of flight cancellations and more than 1,000 delays. Business Insider. Web.

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