Westjet Case

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It is clear that since the establishment of Canadian company, WestJet Airlines in 1996, they have experienced remarkable success in the industry. WestJet Airlines are currently the second largest Canadian aerospace company, who fly to 91 destinations in 20 countries (Maslen, 2010). WestJet acknowledges that information technology has been an imperial role in their recent success, and has enabled them to gain a competitive advantage of their competition. However, with the implementation of such advanced information technologies there are always accompanying risks that can have negative consequences on their operation. In order to minimize this potential risk, the role that IT governance plays in risk management is crucial. IT governance refers…show more content…
The risk of not maintaining a competitive advantage can have huge implications on WestJet’s IT operations. Information technology systems that WestJet were using were not nearly as sophisticated and as integrated as that of other airlines. In addition, WestJet must continuously be aware of changes and advances in technology in order to appropriately update and enhance their systems to maintain a competitive advantage. Failure to keep up to date with ever changing technologies can result in the risk of potential reduced sales, the inability to meet customers needs and ultimately the lose of market share to competitors. Through the use of such…show more content…
This action can be considered a major interruption and interference with the already established business practices and procedures. This creates a significant risk for the business as it can cause a sense of uncertainty and resistance to change from IT staff members who have been involved in the business for a long time. Multiple senior level IT staff members strongly disagreed with the changes that Smith intended on making. This is a major risk that will have a negative impact on WestJet’s IT operations as these changes to the IT structure of the business may result in many experienced, skilled and highly valued IT employees to leave the business. Dr. Abbasi argues that “The loss of key employees may negatively impact the quality and innovation of services delivered”, having huge consequences on WestJet’s IT operations (Abbasi and Hollman,

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