Companies in the transportation and logistics industry seek different benefits from the use of IRIS Business Architect. Here are a few that can be pointed out:
- Better decision-making ability. The use of IRIS Business Architect helps companies in the transportation and logistics industry comprehend the complete impacts of decisions before making them, therefore reducing risk for each decision.
- Driven and cohesive strategy. IRIS Business Architect can contribute in decoding business strategies into action and focus investment toward initiatives that have higher returns.
- Agility in business and information technology execution. The use of IRIS Business Architect makes it easy to have a repository of reusable business architecture content for each of your service business units and defined processes that decode strategies into execution significantly speeding up an enterprise’s ability to recognize and implement all necessary changes.
- Higher operational effectiveness and capacity for growth. IRIS Business Architect helps companies in the transportation and logistics industry structure and rationalize business operations for efficiency and scalability.
Challenges in the Transportation Industry Triggering Business Architect Initiatives
Companies in the transportation and logistics industry are currently facing challenges that need to be addressed swiftly, preferably using IRIS Business Architects, to ensure optimal cohesion between its corporate strategy and its execution within each of its sometime rival service business units. Here are some of these major challenges:
- Critical data within the airline industry continue to be trapped in IT silos. This is the case of these systems: flight schedule and fleet data, revenue and passengers, airport and operations and finance and accounting. Airlines need to implement strategies to unlock data from each of these IT systems to increase efficiency and profitability while increasing satisfaction of their high-yield passengers.
- Customer expectations in the logistics industry are rising. Logistics and supply chain management systems often need to be upgraded and new management measures and strategies need to be implemented to enable a company to satisfy its customers’ needs.
- Companies in the logistics industry typically consider themselves to be independent players. That is no longer enough in our current networked economies. Companies are often pressured to collaborate with partners both horizontally and vertically in their extended supply chain network. More and more companies in the logistics industry are now implementing corporate strategies to insure that their logistics and supply management system comply with all standards of their partners.
- As global footprints expand for many companies in the logistic industry, logistics performance as measured by delivery reliability is deteriorating, due to increasing customer demands, greater volatility and problems with infrastructure, particularly in emerging markets. A lot of companies in the logistics industry are now implementing corporate strategies to insure that alternate routes can be found at a reasonable price.
- Some airlines, especially in the USA, are looking to innovate their ticket distribution models. Global distribution systems (GDS), such as Amadeus or Sable, represent a price they must pay for broad market access. A GDS has significant market power and is difficult to disconnect and disintermediate. If airlines are to replace the GDS system, they must implement corporate strategies to overcome 3 issues. First is the investment barrier—each airline looking to override the GDS model will have to make a significant investment in its IT systems. Second is the technology challenge—implementing a new airline IT system is very complex. Third is the question of participation. Disintermediation will work only if many of the players are willing to make the changes.