Analysis of the Impact of Technology on the Aviation Sector in Nigeria
Chapter One
Objectives of the Study
The study seeks to achieve the following two objectives
To examine the factors responsible for the effective deployment of ICT in the aviation sector.
To analyze the Motivating Factors responsible for the deployment of ICT in the Nigerian aviation sector
To investigate the various Challenges faced with the use of ICT services
CHAPTER TWO
LITERATURE REVIEW
The role of ICT in the airline industry
Information technology is heavily embedded in all levels of airline operations. Recently, the term has been broadened to explicitly encompass the electronic communication field, and the abbreviation ICT (Information and Communication Technology) is now widely used (Buhalis 2004; Gholami, Emrouznejad and Schmidt, 2008). Information and Communication technologies may be defined as “electronic means of capturing, processing, storing, and disseminating information” (Laudon and Laudon, 2007, p.44) and provide new mechanisms for handling existing resources and information. Information and Communication Technologies (ICT) can provide powerful strategic and tactical tools for organizations, which, if properly applied and used, could bring great advantages in promoting and strengthening their competitiveness (Porter, 2001). Few other industries rely on so many partners to collaborate closely for delivering their products and few other value chains are as elaborate as the one for travel (Buhalis, 2008). All airlines rely heavily on ICT for their operations and management and employ them for a wide range of business functions. As a result, 1C I can impact airline costs and operational efficiency and there is evidence that well managed ICT can generate tremendous value for organisations (Lee, 2001).
Areas of ICT usage in the airline industry
The portfolio of solutions for airline planning and control ranges from network planning, code share handling, crew management, to pricing, price distribution and revenue management (Christensen, 2000). Airline ICT is further supplemented by business intelligence services, marketing and sales solutions. Two main groups of airline business functions supported by ICT include; first, an airline’s flight operational activities and the second its business management and control functions. As far as operations are concerned, ICT contribute to the optimisation of flight related procedures and processes (Doganis, 2001). Doll (2004) points out that airline operations supported by ICT include dispatch and coordination of flights and related resources namely crew, aircraft, passenger and freight processing, and airport facilities such as gates, ramps, baggage handling etc. From a business management and control point of view, airlines employ ICT in most functions, from administrative tasks and accounting to financial management, human resources and procurement (Verville, 2003). Agusdinata (2002) states that airlines use technology to develop and manage their business model as well as to monitor the external environment and competition, undertake revenue analysis, forecasting, maintain historical data, predict demand, and design desirable products. ICT are critical for monitoring and forecasting the performance of Strategic Business Units (SBUs) and for deciding which markets airlines should penetrate and how. Routes and crew planning, frequency of service, choice of aircraft and developing relationships with strategic partners are key functions supported by ICT (Buhalis, 1998).
Information and communication technology and Performance of airline industry
According to Allen and Morton (2004) Information and Communication Technology (ICT) refers to a wide range of computerized technologies. Webster and Robins (1986) assert that ICT is any technology that enables communication and the electronic capturing, processing and transmission of information. These technologies include products and services such as desktop computers, laptops, handheld devices, wired or wireless intranet, business productivity software such as text editor and spread sheet, enterprise software, data storage and security, network security and so on. ICT is an integrated system that incorporates the technology and infrastructure required to store, manipulate, deliver and transmit information (Martin, 2002). Adeosun et al. (2009) state that the use of ICT enables strategic management, communication, collaboration, information access, decision making, data management and knowledge management in organizations. ICT causes fundamental changes in the nature and application of technology in businesses. ICT can provide powerful strategic and tactical tools for organizations, which, if properly applied and used, could bring great advantages in promoting and strengthening their competitiveness (Buhalis, 2004).
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine the analysis of the impact of technology in aviation sector in Nigeria. Ministry of Aviation forms the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain analysis of the impact of technology in Aviation sector in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of analysis of the impact of technology in Aviation sector in Nigeria
Summary
This study was on analysis of the impact of technology in Aviation sector in Nigeria. Three objectives were raised which included; To examine the factors responsible for the effective deployment of ICT in the aviation sector, to analyze the Motivating Factors responsible for the deployment of ICT in the Nigerian aviation sector and to investigate the various Challenges faced with the use of ICT services. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected staffs of ministry of Aviation in Lagos State. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The study found that, the use of ICT services which the airline has adopted in a large extent has improved its performance. Some of the ways in which ICT has improved efficiency in the departments include; increased productivity and efficiency; faster processing of passengers hence greater customer satisfaction; immediate dissemination of information throughout the company; faster sharing of data between different departments; processing of enormous amounts of data; easy accessibility of information at any time; enforced checks and balances across the different sections in the department in terms of well defined workflows thus enhancing accountability and efficiency in carrying out the day to day tasks at the departments; accuracy, speed and volume of work done; improved process management; improved lead times in service delivery; improved communication flow access to real time information; reduced communication costs; data accuracy through the use of industry standard communication platforms and using applications that validate against business rules; use of a website and related website technologies has assisted in increasing sales, reduced fraud cases and paperless environment reduces costs robust systems to support operations. The study found that majority of the employees of Nigeria Airways have company mobile phones, computer applications, company laptops, desktops and a small proportion have iPads to aid them in performing their duties. The findings affirmed that the provision of company mobile phones and communication networks affects staff performance at the workplace. The study asserts that; diversification into new markets, additional destinations, positive cash flows, increased number of passengers, increased number of cargo, customer loyalty, low employee turnover, large number of employees and large number of assets owned are perceived indicators of how well an airline is performing in which the study found that ICT (devices, applications and networks) affects the indicators of airlines performance positively
Recommendation
From the findings the study recommends that; the airline industry should make use of ICT systems that have been put in place; various products must be presented to this industry meaning that ICT security must not be compromised at all cost, products to curb fraud and money laundering should be put in place and always safe guard all the processes from interference from the terrorist; the aviation industry should adopt new technology and solutions as they emerge, and not look at information and communication technology as a cost, but an investment which in the long run will contribute to increase in the efficiency of the different departments of the airline. From the findings the study also recommends that airlines should; embrace ICT thus having competitive edge and customer satisfaction; change management should be handled for employees using computers; have more self service enabled services to improve customer service; automate all critical processes to achieve efficiency, reliability and control in the organization; build in house capacity to handle IT systems policies and procedures that attempt to retain IT staff; backup plans as well as alternative options are a good fallback as well as looking to keep some human aspects for interaction to be relevant; management should develop an ICT strategic plan.
References
- Adeosun, O., Adeosun, T., and Adetunde, I. (2009). Strategic application of information and communication technology for effective service delivery in banking industry. Journal o f Social Sciences, pp 47-51.
- Agusdinata, W. (2002). The dynamics of airline alliances, Journal of Air Transport Management, vol 8, pp.201-211.
- Allen, T. and Morton, M. (2004). Information Technology and the Corporation of the 1990s, New York: Oxford University Press.
- Austin, R. and Darby, C. (2003). The Myth of Secure Computing. Harvard Business Review.