The impact of IOS-enabled virtual value chain on business outcomes: transformation of Japan Airlines
We present a framework for evaluating the impact of IT-enabled radical process change on business outcomes at Japan Airlines. The framework presents a systemic view of factors that are shown to impact the firm's business outcomes. The framework identifies salient global environmental factors and business challenges the firm faces, strategic responses it makes, and management methodologies and strategic IT systems adopted to enable the firm's changes in business processes. We then discuss the radical transformation of the traditional keiretsu-based value chain at Japan Airlines, the world's third largest airline company. We apply the framework to evaluate the impact of the new information-based virtual value chain enabled by its interorganizational systems (lOS), particularly AXESS computer reservation systems (CRS) and proprietary Electronic Data Interchange (EDI), on the airlines business outcomes, which include improved customer service, increased competitiveness in a fiercely competitive market, and increased coordination and synergy with the physical value chain.
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