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CETM23 - Big Data in Organizations

1           Introduction

Big Data is seen to revolutionise the airline industry by offering actionable insights into large and diverse sources of data (Chung et al. (2020). This industrial transformation emerge by allowing analysis of big pools of data in real-time, hence enabling the airline to optimise operational efficiency, customer service, and better strategic decision-making with much more precision.

Airline industry is one of the sectors significantly dependent on data in most of its operations and through Big data analytics, Airlines can optimise their flight routes, reorganise their fleets’ maintenance schedules, manage the experience required by customers, and predict trends with big data (Chung et al., 2020).

The current report will examine how Big Data is used to enhance operational performance and customer satisfaction, issues regarding data validity, integration, and security, and strategic and operational implications for leveraging Big Data.

Furthermore, there will be an assessment of the professional and ethical considerations related to using Big Data, in particular in the context of data privacy and security. This report will focus on the various applications, challenges, and opportunities of Big Data within the airline industry, particularly concerning established firms like Delta Airlines and Emirates.

In addition, this report tries to answer the complete analysis that Big Data revolutionises not just the airline industry but also serves as a benchmark in efficiency, customer service, and strategic management. The results of such changes bear witness to both the potential and responsibilities that come with harnessing Big Data in such a critical industry.

2           Application of Big Data

The application of Big Data in the airline industry is discussed in this section.

2.1         Predictive Maintenance

In the aviation industry, the predictive maintenance is one of the crucial application of Big Data. According to the study of Yang (2022), with the help of IoT sensors embedded in the aircraft the real time performance and maintenance data can be analysed quickly. These sensors also helps to predict the issues that can happen in the aircraft.

The fact that an airline can predict what will break helps to reduce the flight time and make its aircraft reliable. If potential problems with the engine are shown through data analytics, maintenance can be scheduled in advance so this does not become a severe issue (see figure 1).

It can ensure that there is an enlarged level of safety and flight availability while declining the cost related with unscheduled repairs (Azzolina et al., 2021). As per the study of Nam et al. (2023), Airlines such as Delta, have been successful in applying predictive maintenance programs that helps to reduce the cancellations of flights and delays.

2.2         Route Optimisation

One of the other essential field where Big Data can be applied is the route optimisation. As per the study of Azzolina et al. (2021), the airlines are aided when choosing the best flight routes through predictive analytics, considering factors such as the weather, air traffic, and fuel consumption to better operations.

Historical flight data analysed together with real-time conditions allows airlines to dynamically adjust routes to ensure the most minor fuel burn and minimum operational costs (Yang, 2022). For example, the incorporation of weather data can allow airlines to avoid turbulence that will otherwise inconvenience passengers by leading to smoother flights.

This is also optimised regarding environmental sustainability as it reduces the carbon footprint of the flights. As per the study of Erdem, Aydın and Erkayman (2021), Machine learning algorithms and real-time data processing platforms, including Hadoop and Spark, are among the technologies that come to the rescue to process data within this bulge of information that is required for such complex analysis.

2.3         Personalised Customer Service

The study of Olaganathan (2021) shows that the other significant benefit of Big Data is enhancing customer experience through providing personalised services. Airlines collect extensive customer preferences, booking patterns, in-flight behavior, and more details that are used to create personally tailored traveling experiences, which are specifically intended for individual passenger needs (Madyatmadja et al., 2021).

For instance, Emirates utilises customer data to tailor personalised leading services, like z customised meal options, personalised entertainment recommendations, and targeted marketing offers. This kind of personalisation helps to upgrade the level of satisfaction and loyalty that a passenger possess (Leon and Martín, 2020).

In this way, with data analytics and machine learning, airlines can predict their customers’ preferences to offer experiences that are not easy to achieve in general.

2.4         Operational Efficiency

Big Data brings significant optimisation into operation in airlines. If the different operational metrics are monitored and analysed, airlines can get in a position to fine-tune their processes to cut costs and consequently improve performance (Shiwakoti, Jiang and Nguyen, 2022).

For instance, data analysis can take place on crew schedules, therefore ascertaining that, indeed the correct number of staff with the needed skills is available at the company disposal, hence, avoiding either over- or under-staffing. According to the study of Agrawal et al. (2022), operational data can also be used to streamline ground operations, like baggage handling and boarding processes, to minimise the turnaround time and improve on-time performance.

2.5         Real-Time Decision Making

In the fast-paced airline industry, business decision-making depends critically on real-time decision-making. According to Madyatmadja et al. (2021), the Big Data platforms offer the capability to process and analyse data in real-time for quick responses based on the changes in conditions.

For instance, with real-time analytics over current flight delays, any airline can timely rebook passengers and reschedule flights as depicted in figure 2. This is of prime importance for high operational efficiency and customer satisfaction (Olaganathan, 2021). In essence, the application of Big Data in implementing modern technologies in the airline industry includes technologies such as predictive maintenance, route optimisation, personalised customer service, and operational efficiency overall.

3           Challenges and Opportunities

3.1         Challenges

The common challenges that often arise with implementing Big Data in the aviation industry are as follows.

  • Data Integration: Integrating Big Data with existing legacy systems is a big challenge. Since, most airlines operate under an obsolete IT system that goes along with the volume, velocity, and variety of Big Data. Upgrading such systems to incorporate Big Data capabilities is, in fact, arduous, time-consuming, and expensive. Integration has to be seamless for airlines to realise the full potential of Big Data (Samara, Magnisalis and Peristeras, 2020). This often calls for heavy investment in new technologies and the training of interacting staff on how to manage these new systems effectively.
  • Data Validity and Quality: The incorrect or partial data within airline sector can result in wrong decision-making, poor operations, and loss of revenue. For instance, due to flawed data, maintenance can be spent unnecessarily, or faults in the plane can go unidentified due to predictions made by the maintenance process thus decreasing its safety and reliability (Roy et al., 2020). Hence, the airline has to adopt rigorous procedures about data validation and data cleansing to ensure high-quality data.
  • Data Privacy and Security: Large data privacy and security concerns come into play with sensitive passenger information being handled. The study of Wang and Wang (2020) shows that airlines hold large amounts of personal data, from travel itineraries and payment details to individual preferences. This data will have to be protected from any kind of breach and unauthorised access. Airlines must obey strict data protection regulations like the General Data Protection Regulation (GDPR). Implementing robust cybersecurity measures and adherence to these regulations is vital for protecting passenger data and ensuring no loss of trust.

3.2         Strategies to Overcome Challenges

To address these challenges, airlines have pursued the following strategies:

  • Investing in Advanced Analytics Platforms: The investments airlines make are directed to advance analytics platforms that can deal with big data through the provision of real-time insights. Embedded technologies, such as Hadoop and Spark, come with cloud-based data solutions, enabling airlines to process data much faster and accordingly (Belias et al., 2021). These platforms offer accessible and elastic solutions that can be combined into the existing system without having much complication and at a lesser cost.
  • Collaboration with Technology Partners: Airlines stay at the forefront of keeping a business integrated with Big Data solutions by collaborating with technology partners. The airlines can achieve access to modern day technologies and other experiences that most airlines do not possess by collaborating with tech companies and startups (Yap and Lam, 2020). Such collaborations can help in the implementation of innovative Big Data solutions and bolster the ability of the airline in data.
  • Enhancing Data Governance: Solid data governance frameworks make data quality and privacy regulation compliance possible. The study of Yallop and Seraphin (2020) shows that Data governance involves the development of policies and procedures in managing data across its life cycle, from data collection to storage, processing, and usage within an enterprise.

Table 1: Strategies to Overcome Big Data Challenges

Strategy

Description

Benefits

Investing in Advanced Analytics

Implementing platforms like Hadoop and Spark for real-time data processing

Enhanced data processing capabilities

Collaboration with Tech Partners

Partnering with tech companies for access to cutting-edge technologies

Access to innovative Big Data solutions

Enhancing Data Governance

Developing robust data governance policies

Ensures data quality and regulatory compliance

3.3         Opportunities

Among the challenges that will still stand in the way, Big Data promises to avail the following opportunities to the airline sector:

  • Enhanced Operational Efficiency: Big Data makes it possible for airlines to optimise all operational processes, from flight scheduling and route optimisation to maintenance and fuel management. As per Heiets et al. (2022), using data analytics will enable airlines to improve their efficiency in operations by streamlining operational processes besides reducing costs through the provision of improved quality services.
  • Cost Reduction: The data-driven decision-making helps understand the areas airlines can save their costs. Predictive maintenance reduces downtime and related costs for repairs. At the same time, route optimisation is done to minimise fuel usage and other operational expenses, these two are ways of lowering costs, which further contributes to more savings.
  • Improved Customer Experience: Big Data enables airline companies to personalise better their customer service, which in turn dramatically enhances passenger experience (Pérez-Campuzano et al., 2022). Analysing data insights for tailored marketing, personalised travel ideas, and responsive customer services lead to more satisfied and loyal customers.
  • Innovation and Growth: Continued advancement in AI and IoT will boost big data capabilities within the airline industry. Big Data, along with these technologies, offers new ways for innovation enhanced predictive analytics, real-time monitoring, and improved decision-making and solutions (Abuayied, Alajlan and Alghamdi, 2021). Investment in Big Data and related technology will continue to drive growth and competitiveness in the airline sector.

4           Strategic and Operational Use of Big Data

Big Data is an essential tool that airlines apply in their strategy and operation to achieve competitive advantages and better overall results. Such data enables airlines to make informed decisions on maximising resource employment in improving service efficiencies, customer satisfaction, and resource allocation.

4.1         Strategic Use

  • Market Analysis and Forecasting: Airlines use Big Data to comprehensively analyse markets and forecast the demand. Prediction of demand in airlines for the future is more accurate by analysing historical data, market trends, and other environmental factors that can affect the market, such as economic conditions and the activities of competitors (Olive et al., 2020). Better planning can be done for flight schedules, management of capacity, and pricing strategies (Cui, Hu and Yu, 2022). For instance, booking patterns and seasonal analysis will help the airlines vary their offerings in line with the forecasted demand to maximise revenue and minimise the risks of overcapacity.
  • Customer Insights: The airlines need to understand the patterns of behavior and preferences for them to custom-make marketing strategies and offerings for the customers. Big Data touches upon passenger demographics, travel habits, and individual preferences, among other areas (Line et al., 2020). In this manner, airlines can segment their customer base and roll out targeted marketing campaigns that appeal to specific groups. For instance, loyalty programs can further be made personal concerning travel frequency and preferences to ensure better retention and satisfaction of the customers.

4.2         Operational Use

  • Flight Operations: Real-time data analytics are significant for using flight operations to optimise their functioning. Airlines can monitor many other operational parameters, such as aircraft performance, weather conditions, and air traffic (Nusraningrum, Mekar and Gunawijaya, 2021). Ingesting that data and reacting with it in real-time can allow an airline to make minute-to-minute changes in plans regarding flight routes, speed, and altitude, thereby improving the safety record and performance, reducing delays, and saving fuel.
  • Crew Management: Scheduling and managing the crew efficiently and effectively results in the maintenance of the operation’s efficiency and ensures that crews remain compliant with regulatory requirements. The study of Lyu et al. (2022) shows that Big Data allows airlines to make the best possible crew assignments considering factors like crew availability, qualifications, and defined rest periods. By analysing information on crew performance and operational requirements, airlines will be able to develop scheduling meeting optimal productivity while costing the minimum.
  • Fuel Management: One of the most significant operational costs for airlines is fuel. What Big Data analytics do is enable airlines to monitor and manage fuel consumption in a better manner. Analysis of data involving flight operations, performance, weather conditions, and usage patterns basically opens up opportunities for airlines to save on their fuel expenses (Narongou and Sun, 2022). For instance, flight optimisation in terms of routes and altitudes through real-time data can help to reduce fuel consumption and emissions.

Table 2: Big Data Applications in Flight Operations

Application

Description

Benefits

Real-Time Analytics

Monitoring operational parameters like weather and traffic

Improved safety, reduced delays, fuel savings

Predictive Maintenance

Anticipating maintenance needs through data analysis

Reduced downtime, cost savings, increased reliability

Crew Management

Optimising crew schedules based on various factors

Enhanced productivity, reduced operational costs

4.3         Data Validity and Usability

Validity and usability are critical to the applicability of Big Data. The data collected by an airline must be accurate, relevant, and timely. As per Kwon et al. (2021), one such way to ensure this is by implementing effective data validation techniques that maintain data quality but with reduced errors for better decision-making.

Real-time analytics platforms help in data processing and, therefore data analysis at speed, providing actionable insights driving strategic and operational decisions (Shadiyar, Ban and Kim, 2020). Monitoring is done all day long, and the data sources are updated, so the accessed data are of the most up-to-date and reliable sort.

In conclusion, strategic and operational uses of Big Data in airlines help optimise performance and resource allocation by benefiting services and customers. Airlines can hence manage industry complexities and achieve sustainable growth effectively.

5           Professional and Ethical Requirements

The application of Big Data in the airline industry brings crucial professional and ethical importance for ensuring safety, upholding the trust of passengers and regulatory compliance.

5.1         Data Privacy and Security

Data privacy and security are essential issues in the airline industry, considering that sensitive passenger information is obtained. As stated by Ning et al. (2021), Airlines are subject to severe data protection rules, for example, the General Data Protection Regulation in the European Union and the California Consumer Privacy Act in the US. Airlines’ conform to this regulation means that extreme security measures have to be in place for the data not to leak or be accessed by unauthorised persons through breaching (Kıyıklık, Kuşakcı and Mbowe, 2022).

This goes from encryption to data storage and regular security audits. In addition, transparency with passengers about what is being collected in data and how it is used and protected is vital (Lee, Hess and Heldeweg, 2022). Airlines must also maintain clear privacy policies that can inform consent procedures so the customer is informed about how their data is being used and protected.

5.2         Ethical Data Use

Ethical considerations are very vital in the use of data to avoid making errors regarding actions that can eventually harm passengers. Airlines must be candid with, and have obtained consent for, the collection or use of data, meaning that they should inform passengers that it is collecting such data, for what purposes such collected data is being used, and from which benefits are derived (Kwon et al., 2021).

Further, airlines should not use data in a way that is likely to infringe upon the rights of or discriminate against passengers. For instance, differential pricing based on personal or behavioral features when not backed by appropriate and justified criteria through data analytics can be considered unethical. As per Azeem et al. (2022), airlines should try to use data to benefit passengers with value created and not exploit it for purely commercial gain.

5.3         Professional Standards

According to Shadiyar, Ban and Kim (2020), principles of professionalism in data management and analytics relate to keeping data integrity and instilling trust in it. This means continuous training and education in best practices for personnel in handling, protecting, and considering data ethics. Airlines also should be aware of recent changes in industry standards and regulations to remain in compliance at all times (Ning et al., 2021).

This can comprise using some internationally recognised frameworks and guidelines in data management, such as the ISO/IEC 27001 standard in information security management. The latter creates a culture of ethical use of data and professional standards within airlines such that Big Data initiatives will be assured them to be conducted responsibly and sustainably to uphold trust levels with the passengers and stakeholders (Joshi and Sharma, 2020).

In conclusion, professional and ethical use of Big Data in the airline industry requires a comprehensive approach toward data privacy, security, ethical considerations, and adherence to professional standards.

6           Conclusion

Big Data brings a stride change in operational efficiency, customer service, and strategic planning within the airline industry. It is through advanced analytics that airlines can process real-time data and are using machine learning to make more informed decisions, resulting in better performance and improved customer satisfaction.

This now only needs to be accompanied by addressing some key challenges: data integration, validity, and privacy of the data. Research shortly can tend toward examining how emerging technologies, such as AI and IoT, are impacting Big Data analytics in the airline industry.

The constant evolution in these realms will continue to reshape the industry with new opportunities for improvement in efficiency, associated cost reductions, and a better passenger experience. Generally, Big Data is another vital tool for the airline sector; it gives insights into innovations and growth. If these challenges are addressed, airlines can tap into the full power of Big Data and their strategic goals regarding chronometric professional and ethical standards.

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