West Jet Airlines: Information Technology Governance & Corporate Strategy

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1. When Cheryl Smith, the new CIO, arrived at WestJet she was asked by the CEO to advise whether the company had adequate IT or not. What aspects did she assess? What is your view on the strengths and weaknesses of this assessment? What is your view on her resulting priorities? One of the first things that Cheryl Smith did when she start to work at WestJet, was to bring two performances expects to carry out a benchmarking study with similar companies in the transportation industry. The objective of this study was to compare WestJet’s IT cost, resources and budget to the industry standards. With the results of the study, Cheryl was able to find out that the IT group of the company was technically competent and mostly were since the company’s early days, knowing only the “WestJet IT way”. Another important fact that she found out was that comparing to the industry, the IT number of employees within skills sets was different. Another important aspect that Cheryl found out was that half of the systems, operations and procedures of the company were industry-standard. The IT department had invented its operation around the company’s needs. Also, the study showed that IT was on target with the industry in terms of budget and number of employees. Additionally, Cheryl realized that the IT department was structured according to what suited it better. It has been using an own group of conventional internal functions of planning, operating, bulding, i.e., in the way that IT felt most comfortable. For example, all developers worked as a group, as did all of the maintenance staff. Besides, all project managers and business analyst were together in a single group. The work structure was designed to allow everyone in each group to be able to performance the activities of all the other members of the group, enabling the team to respond quickly to any emergency request from the

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