In order to overcome it, the organization considered the possibility of e-procurement implementation. Even though such alteration is likely to reduce expenses and enhance capability, the Project Steering Committee (PSC) is highly concerned about the necessity of redeployment and possible adoption issues. Thus, the implementation of e-business valuation is recommended to measure benefits.
Recommendation
The company expects to reach an inventory reduction of $0 million per year. In addition to that, CXeBuy is likely to be used in 35%-50% of purchases, which allows to gain almost $400 million faster than usual. Considering this and other advantages, the implementation of e-procurement system and e-business valuation should be maintained by the airline. If adopting this change, the company is likely to observe benefits in three perspectives regardless of possible challenges (Exhibit ).
Its user and airline purchasing department, as well as suppliers, will notice operational enhancement. In add
ition to that, the company will have an opportunity to meet its main organizational goal and to be admired by customers due to the innovative purchase opportunities provided due to CXeBuy and feedback opportunities maintained under e-business valuation. Such approach can also be used by other companies that offer their products and services directly to the customers. This change is made to cope with the economic downturn due to technological innovations, which is a rather universal approach.
Basis for Recommendation
Cathay Pacific Airways is expected to benefit from the implementation of CXeBuy and e-business valuation. Even though additional costs will be needed to pay the staff who is working on the project, the company will get payback and obtain other advantages when using this innovation routinely (see Exhibit 2). Of course, there is a possibility that its competitors will reach a similar improvement. However, the airline is likely to win the competition, being the pioneer.
Discussion