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Building an algorithmic organisation: A Case Study of the Transformation Journey of Flygresor.se
KTH, School of Industrial Engineering and Management (ITM), Engineering Design.
2025 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This study investigates how Flygresor.se, a Swedish meta-search platform for airline tickets. Managed to transform into a highly efficient, algorithm-driven organisation by leveraging data-driven decision making. Also, exploring how Flygresor managed to leverage this methodology to achieve remarkable financial resilience-maintaining 30% profit margins, surviving the COVID19 pandemic without losses, and generating 15 MSEK revenue per employee by systematically replacing traditional management with automation and realtime data analytics. This study also explores the limitations and potential of algorithmic management reaching beyond gig economy platforms, demonstrating its applicability to smaller firms. Its success and adoption of algorithmic management stems from four pillars: data utilisation, automation, user engagement, and social interaction. By collecting granular data at fiveminute intervals (e.g., marketing spend, user behaviour, and revenue metrics), the company built systems like RelaxAd to automate marketing adjustments hourly. A modified flat organisational structure, reduced from 11 to 7 employees, decentralised decision-making and eliminated hierarchical roles. This study explores how a start-up spends a decade transitioning into an algorithmic organisation.

Abstract [sv]

Denna studie undersöker hur Flygresor.se, en svensk metasökningsplattform för flygbiljetter, lyckades omvandlas till en högpresterande, algoritmstyrd organisation genom att använda datadrivet beslutsfattande. Studien utforskar också hur Flygresor kunde utnyttja denna metodik för att uppnå anmärkningsvärd finansiell resiliens med 30% vinstmarginal, klara sig genom COVID-19- pandemin utan förluster och generera 15 MSEK i årlig intäkt per anställd – genom att systematiskt ersätta traditionell ledning med automatisering och realtidsdataanalys. Studien undersöker även begränsningarna och potentialen hos algoritmisk ledning bortom gig-ekonomiplattformar och visar dess tillämpbarhet för mindre företag. Flygresors framgång och införande av algoritmisk ledning bygger på fyra pelare: dataavändning, automatisering, användarengagemang och social interaktion. Genom att samla detaljerad data med femminutersintervall (t.ex. marknadsföringsutgifter, användarbeteende och intäktsmått) byggde företaget system som RelaxAd för att automatiskt justera marknadsföring per timme. En modifierad platt organisationsstruktur, reducerad från 11 till 7 anställda, har decentraliserat beslutsfattandet och avskaffat hierarkiska roller

Place, publisher, year, edition, pages
2025. , p. 56
Series
TRITA-ITM-EX ; 2025:198
Keywords [en]
Algorithmic management, algorithmic organisation, flygresor.se, organisation theory, data-driven decision making, AI, automation
Keywords [sv]
Algorimiskt styrning, algoritmisk organisation, flygresor.se, Organisationsteori, datadrivet beslutfattande, AI, automatisering
National Category
Mechanical Engineering
Identifiers
URN: urn:nbn:se:kth:diva-373173OAI: oai:DiVA.org:kth-373173DiVA, id: diva2:2015291
External cooperation
Flightmate AB
Subject / course
Innovation and Design
Educational program
Degree of Master
Presentation
2025-07-02, 00:00
Supervisors
Examiners
Available from: 2025-11-20 Created: 2025-11-20 Last updated: 2025-11-20Bibliographically approved

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