 | Airline Industry: Poised for Disruptive Innovation? Subjects: Economics Finance Business & Industry; Engineering & Technology; Information Science; Tourism Hospitality and Events; Information Technology; Tourism; Business Management and Accounting; Industry & Industrial Studies; Transport & Vehicle Engineering; International Business; Strategic Management; Leadership; Transport Industries; Aerospace & Aviation Engineering; Many business sectors have been, and are being, forced to compete with new competitors-disrupters of some sort-who have found new ways to create and deliver new value for customers often through the use of technology that is coupled with a new underlying production or business model, and/or a broad array of partners, including, in some cases, customers themselves. Think about the disruption created by Apple by the introduction of the iPod and iTunes, and by Netflix within the entertainment sectors using partners within the ecosystem; think of Uber that didn't build an app around the taxi business but rather built a mobility business around the app to improve customer experience. Airline Industry considers whether the airline industry is poised for disruptive innovations from inside or outside of the industry. Although airlines have a long history of continuous improvements and innovation, few of their innovations can be classified as disruptive innovations. The few disruptive innovations that did emerge were facilitated, for example by new technology (jet aircraft) and government policy (deregulation). Now there are new forces in play-customers who expect to receive products that are more personalized and experience-based throughout the entire journey, new customer interfaces (via social media), advanced information systems and analytics, financially powerful airlines based in emerging nations, and the rise of unencumbered entrepreneurs who think differently as well as platform-focused integrators. Nawal K. Taneja has over 45 years of experience in the airline industry sector, having worked for and advised major airlines and related businesses worldwide. His experience also includes the presidency of a small airline that provided schedule and charter service with jet aircraft and the presidency of a research organization that provided consulting services to the air transportation community throughout the world. Within the academic community, he has served on the Faculties at the Massachusetts Institute of Technology (as an Associate Professor) and at the Ohio State University (Professor and later as Chair of both the Department of Aviation and the Department of Aerospace Engineering). On the government side, he has advised worldwide Departments of Civil Aviation, Finance, Economic Development, and Tourism in matters relating to the role of government-controlled airlines and their management. He continues to advise airlines and related businesses, government policymakers, and the financial investment groups on the changing dynamics of the global aviation industry, evolving airline business models, and the role of evolving technologies to adapt to face ambiguity, complexity, volatility, and uncertainty. |
