Ask Computer Engineering Expert

Case Study: KLM Airlines

KLM Airlines, headquartered in the Netherlands, is one of the world's leading international airlines. Following its merger with Air France in 2004, KLM employs 33,000 people worldwide (1,000 of whom work in the I function) and operates about 200 planes.

Following the 9/11 terrorist attack in 2001, the challenging business environment for airlines caused KLM's CEO to appoint a new CIO from the operations area, clearly outside of the IT area, to make a structural break from the past. Three priorities included examining outsourcing IT, creating a board of business and IT representatives, and fashioning a process for governance of IT that is shared between the IT function and business un its.

The result of ensuing efforts over several years was to create four levels of committee governance: An executive committee kept an eye on matching the business strategy with IT strategies; A business/IT board, which was composed of the CEO, CIO, and all business unit executive vice presidents, was formed to manage the portfolio and budget; an IT management team worked on tactical planning for the business/IT board; and finally, the CIO/information

services management team planned and managed IT operations, KLM also established a set of key principles and practices and developed a standard business case template that had to be used whenever requesting an investment greater than 150,000 euros.

KLM experienced five benefits attributed to the governance structure: reduced IT costs per kilometer flown, increased capacity for IT innovation, better alignment of investments to business goals, increased trust between functional units and the IT organization, and a mind-set of the value of IT.

Questions:

  • What is likely to have led to increased trust for the IT organization?
  • What might explain an item that is seemingly quite unrelated to IT (costs per kilometer flown) decreased as a result of the new CIO structure?
  • What maturity level did KLM appear to exhibit (a) in 2000 and (b) in 2011? Why?
  • Why do you think that KLM requires its employees to use a standard business case template when they want to make an investment?

Computer Engineering, Engineering

  • Category:- Computer Engineering
  • Reference No.:- M92289197
  • Price:- $20

Priced at Now at $20, Verified Solution

Have any Question?


Related Questions in Computer Engineering

Does bmw have a guided missile corporate culture and

Does BMW have a guided missile corporate culture, and incubator corporate culture, a family corporate culture, or an Eiffel tower corporate culture?

Rebecca borrows 10000 at 18 compounded annually she pays

Rebecca borrows $10,000 at 18% compounded annually. She pays off the loan over a 5-year period with annual payments, starting at year 1. Each successive payment is $700 greater than the previous payment. (a) How much was ...

Jeff decides to start saving some money from this upcoming

Jeff decides to start saving some money from this upcoming month onwards. He decides to save only $500 at first, but each month he will increase the amount invested by $100. He will do it for 60 months (including the fir ...

Suppose you make 30 annual investments in a fund that pays

Suppose you make 30 annual investments in a fund that pays 6% compounded annually. If your first deposit is $7,500 and each successive deposit is 6% greater than the preceding deposit, how much will be in the fund immedi ...

Question -under what circumstances is it ethical if ever to

Question :- Under what circumstances is it ethical, if ever, to use consumer information in marketing research? Explain why you consider it ethical or unethical.

What are the differences between four types of economics

What are the differences between four types of economics evaluations and their differences with other two (budget impact analysis (BIA) and cost of illness (COI) studies)?

What type of economic system does norway have explain some

What type of economic system does Norway have? Explain some of the benefits of this system to the country and some of the drawbacks,

Among the who imf and wto which of these governmental

Among the WHO, IMF, and WTO, which of these governmental institutions do you feel has most profoundly shaped healthcare outcomes in low-income countries and why? Please support your reasons with examples and research/doc ...

A real estate developer will build two different types of

A real estate developer will build two different types of apartments in a residential area: one- bedroom apartments and two-bedroom apartments. In addition, the developer will build either a swimming pool or a tennis cou ...

Question what some of the reasons that evolutionary models

Question : What some of the reasons that evolutionary models are considered by many to be the best approach to software development. The response must be typed, single spaced, must be in times new roman font (size 12) an ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As