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Business & Marketing
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Topic:
Delta Air Lines Biometric Facial Recognition Technology (Essay Sample)
Instructions:
The task was to select a company in the AIRLINE industry that has mainstreamed technology in its operations to enhance competitive advantage in the industry. To this end, the discussion focuses on the delta airline's facial recognition technology. The paper CONTENDS that the primary competitive ADVANTAGES of the technology are improved customer experience, improved operating efficiency, enhanced fraud detection in the wake of increased globalization, and cost optimization by reducing third part related expenditures. source..
Content:
Delta Air Lines Biometric Facial Recognition Technology
Maeghen Leigh Jones
College of Business, Embry-Riddle Aeronautical University
MMIS 221: Introduction to Management Information Systems
Dr. Jim Rush
April 23, 2023
Delta Air Lines Biometric Facial Recognition Technology
The modern business environment has become increasingly competitive prompting companies to innovate to remain competitive. The airline industry faces intense competition mainly because the market is an oligopoly defined by a few but large sellers in the market. Further, there is limited headroom for the differentiation of the products among the companies. The solution, therefore, is to mainstream technology and innovation to gain a competitive advantage over the peers in the industry. A classic example of a company that has mainstreamed an information systems application to optimize operations and improve customer service is Delta Airlines through biometric facial recognition technology. Although the technology is yet to be integrated across all airports, it is apparent that it has enhanced Delta Airlines’ competitive advantage in the industry.
Customer service is a critical success factor for any organization. One of the ways to enhance the customer experience in the airline industry is by adopting technology and customizing it to personalize the travel experience (Khan & Efthymiou, 2021). The biometric facial recognition technology adopted by Delta Airlines achieves this goal in two ways. First, it makes the check-in process seamless and customer-centric. Customers can, therefore, look forward to traveling with Delta Airlines. Secondly, the technology system is linked with the airline entertainment system such that customers can access personalized content throughout the journey. The combination of these two factors has enhanced the airlines’ competitive advantage by increasing brand loyalty and is likely to manifest in increased market share and profitability.
Customer experience and the metrics for evaluating its achievement vary from one industry to another. In the general business environment, the three primary factors of customer experience are the perceived quality of the product or service, and the subjective assessment of customer service offered by an enterprise (Shiwakoti et al., 2022). In the airline industry, these factors can further be broken down into perceived security in data verification and the subject assessment of the customers towards the customer service experience provided by the airline employees. Delta Airlines’ biometric and facial recognition technology has enhanced customer experience by using data analytics to streamline the entire travel experience beyond the check-in process. Additionally, the link between the technology and government agencies ensures that there is data protection (Shiwakoti et al., 2022). Overall, these factors will ensure that the company retains the current customers and serve as an incentive for onboarding new customers, thereby creating a competitive advantage.
Besides customer experience, operating efficiency is another critical success factor for an organization. The goal of optimizing operating efficiency is to reduce operating expenses, thereby boosting the company’s profitability (Khan & Efthymiou, 2021). Further, when a company becomes more operationally efficient, it creates a headroom for adapting the pricing structure to become more competitive. Alternatively, the improved efficiency enhances the profit margins and ensures that the company can thrive even during the trough of the airline business cycle (Khan & Efthymiou, 2021). The biometric facial technology by Delta Airlines has enhanced operating efficiency mainly by reducing the number of employees posted at the check-in points for identity verification. The result is a decline in wages and salaries and ultimately competitive advantage by boosting profitability.
The increased globalization of people and corporations has accelerated the growth of the airline industry, but at the same time raised security concerns. The airline industry has been prompted to invest in capital-intensive security systems to ensure the validity of passports, detect fraudulent supporting documents, and flag visa overstays (Khan & Efthymiou, 2021). These factors have impaired the operating efficiency of airline enterprises adversely affecting their competitive advantage. With the biometric facial recognition technology, Delta Airlines has become a market leader in providing a security infrastructure. The outcome is that the company will reduce its expenditure in relying on third parties to validate fraudulent documents, and flag visa overstays. Ultimately, this will improve operating efficiency and establish a competitive advantage for the company. Further, by embracing a digital business model, the company is likely to experience increased revenue because it has created a value proposition that customers are willing to pay for (Khan & Efthymiou, 2021). The hallmark outcome for Delta Airlines...
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