Disruptive Technologies:
In order to deal with the increasingly market demand and Airline industry must switch their incumbent operating way, which to maintain passenger records and numbers booked on a paper way, to a new management way- information system, that is the disruptive technology for the airline industry.
Baltzan, P (2013) revealed that the disruptive technology is a revolutionary new way of doing things, which does not meet the needs of existing clients in earlier stage. But it actually opens new markets, such as e-tickets and destroys old one and cut into the low end of the marketplace, then substitute for the competitors who have not change and gain market leadership.
As the case study described, traditional inventory system that kept the records in paper does not work when the emergence of the computerized information systems.
But someone thinks even in service industries such as the airline industry, companies can balance real-time operations to administrate fluctuations in demand and arrange their schedules and routes accordingly; And they can also provide dynamic pricing for selling unused seating assignments near the departure time. In this regard, inventory in the services industry seems to the traditional product inventory: both need to be dynamically managed for changes in supply and demand. (Nicholas, 2003)
Therefore, in order to better realize the disruptive technologies and traditional technologies, the industry should consider their own conditions and how to response the disruptive innovation.
Following table is the summary of how the airline industry has to overcome the problems within disruptive technology in specific cases and how they has responded
Disruptive Technologies
How the industry has responded.
Management Information System (MIS)
Low-Cost Carrier (LCC)
Revenue Management System (RMS)
Inventory Systems
Operation information Systems(OIS)
Based on Charitou & Markides (2003), there are...