You Will Be The IT Manager To Improve Performance

You Will Be The It Manager To Improve The Performance Of The Airports

You will be the IT Manager to improve the performance of the airport’s passenger processing system. The new airport will have faster process timing and better security. The new IT system is to make the airport more efficient and more secure. The new advanced IT system will replace the human ID control, airport check-in, and boarding-pass process with an advanced system that operates automatically, eliminating human airport officers. Once installed, in the new airport, passengers will walk through a passage surrounded by cameras, microphones, and other remote readers to perform “ID control, airport check-in, and boarding-pass process” simultaneously.

Passengers will not interact with any officers at the airport. There will be no direct human interaction, which in the long run will reduce expenses and improve the airport’s financial standing. Additionally, fewer employees mean less traffic and parking issues around the airport. The system will be implemented in stages. In stage one, only one terminal will be closed for renovation and installation of the new IT system. The installation of all components must be completed within one week, followed by another week for testing. The airport cannot afford to keep a terminal closed for more than two weeks.

The implementation plan involves gradually adapting the new system across all four terminals, with only one terminal closed at a time. The five terminals, including the initial one, will all operate under the new system after full deployment. Passengers will receive RFID bracelets at automated kiosks equipped with face recognition cameras, fingerprint readers, and connections to DMV and IRS databases for authentication and database updates. Passengers will stop only once at the kiosk for RFID bracelet issuance; afterward, they will proceed directly to the aircraft without further stops.

All data will be recorded and authenticated via a centralized database for each passenger. The initial investment for converting one terminal is $150,000. The anticipated net cash flow with full implementation across all terminals is $300,000 annually. After the initial installation, each terminal is expected to generate a net profit of $25,000 per year. The new system will reduce employment costs by $145,000 annually and decrease total costs by $20,000 per year, contributing to increased profitability.

Question 1: Define Measurable Organizational Value (MOV) and analyze the project’s impact and metrics

Measurable Organizational Value (MOV) refers to the quantifiable benefits that a project is expected to deliver to an organization, aligning with strategic goals. It provides a clear metric for evaluating success and justifying investment. In this case, the MOV centers on operational efficiency, cost reduction, security enhancement, and passenger experience improvement.

The desired area of impact includes operational efficiency—reducing processing times and human resource requirements; security—improving ID verification accuracy; and financial gains—lower operational costs and higher revenue. The value of the IT project ultimately hinges on its capacity to streamline passenger processing, enhance security, and reduce expenses.

The appropriate metrics for assessing MOV include:

• Passenger processing time reduction (measured in seconds or minutes per passenger)
• Cost savings (annual reduction in operational expenses)
• Number of employees reduced due to automation
• Security incident rates pre- and post-implementation
• Passenger throughput capacity improvements
• Return on Investment (ROI)
• Payback period
• Breakeven point
• Customer satisfaction scores related to processing speed and security

A proposed metric set might include tracking processing time per passenger, operational cost savings, employee count reduction, system uptime, and incident reports, measured quarterly over a three-year period. The time frame for achieving the MOV is approximately three to five years, allowing sufficient time to fully implement, test, and optimize the new system across all terminals.

In summary, the MOV for this project is: “Implementing an automated, secure, and efficient passenger processing system across all airport terminals that reduces processing time and operational costs, enhances security, and improves passenger satisfaction within three to five years.”

Question 2: Analyze alternatives for the New Airport Case

When considering alternatives for implementing the new IT system at the airport, several options emerge, each with different financial and operational implications. The primary alternatives include a phased implementation versus a full-scale immediate overhaul.

1. Phased Implementation

This approach involves gradually replacing the existing system one terminal at a time, with only one terminal closed at any given period. It minimizes operational disruption and allows for troubleshooting and adjustments during implementation. The main advantage is lower risk and continuous operation; however, it prolongs the total implementation time and may incur higher incremental costs.

2. Full-Scale Immediate Implementation

This approach entails closing all terminals simultaneously and installing the new system across the entire airport within a condensed timeframe. It reduces the total time to full operational capacity but involves significant risks, including operational shutdown, logistical challenges, and higher upfront costs.

Financial Analysis Parameters:

Analysis Summary

The phased approach offers a balanced risk profile and continuous airport operation, with an ROI of approximately 25-30%, and a payback period of about 1.5 years. In contrast, the full-scale approach promises quicker realization of benefits with a shorter payback period and potentially higher ROI but involves substantial operational risks and higher upfront investments. The decision hinges on risk appetite, operational flexibility, and financial capacity.

Conclusion

Considering the operational constraints and financial benefits, the phased implementation approach appears most suitable, providing a compromise between minimizing risk and achieving desired outcomes within the targeted timelines. It allows incremental benefits to accrue while managing any unforeseen technical or logistical issues effectively.

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