INFORMATION SYSTEM- Information systems are implemented within an organization for the purpose of improving the effectiveness and efficiency of that organization. - Air Asia has carry out three type of information system such as yield management system (YMS), customer reservation system (CRS), and enterprise resource planning (ERP) system

YIELD MANAGEMENT SYSTEM- Can known revenue management system

- It understands, anticipates, and reacts to the behaviour of customer to maximize revenues for the organization.

- Air Asia used it to takes into account the operating costs aids Air Asia to optimize price and allocate capacity to maximize expected revenues.

*CUSTOMER RESERVATION SYSTEM- It is an integrated web-enabled reservation and inventory

system suite powered by Navitaire Open Skies technology that includes Internet.

- call center and airport departure control functionality- Centralized customer data is also maintained by Open Skied

and this help Air Asia to track booking and schedule fight activities with real-time, on-demand reporting feature

- CRS enabled Air Asia to introduce the first ticket less travel option and also provide features such as advanced boarding passes in addition to online booking that enabled the growth of Air Asia as these features attracted customers that did not have the time for purchasing tickets from counters and coming in 1 hour early for securing a seat on the aircraft.

* ENTERPRISE RESOURCE PLANNING SYSTEM

- Integrated ERP solution powered by Microsoft business solutions (MBS) on Microsoft technology platform which is implemented by Avanade consultants in MA 2005.

- With the robust ERP technology platform, Air Asia is able to successfully maintain process integrity, red financial month-end closing processing time, speeds up reporting and data retrieval process.

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*Online booking systemAirAsia do provides online booking system for

all user that will needed to have something related to enquire and have transaction with AirAsia. It is needed to have an online system for the company because there is need to simplify the ways compare to older times.

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*Benefits for the Departments in the

company*For the Company point of view, it has benefits the some departments of AirAsia.*The Sales department, that do all things that regarded the sales.*By using the Online ticket booking system, i.e. AirAsiaGo has

ease the sales department as using the lowest cost to achive the highest performance.*The Finance department that controls expenditures and

obligations.*Using the Online system, the process for giving out statement of

payment, the accounting process with revenue has been simplified.*Customer Service department that handles all the issue

reagrding customer.*Get benefited from the online system as customer can search

and look for the FAQ's from the site before make a call to the service line.

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*AirAsiaGO

The AirAisia started another online booking system called AirAisaGo which has more function that also includes hotel booking. An airlines company needed to handle many passengers, so many datas needed to be inputed, processed and outputed.

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* More and more people are using the airlines service, but just a plain online booking

system for fly is not enough. AirAsiaGo also does make option for hotels.

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*Input,Process,Output*an user needed to put in their designed

destination,date to check in and out, numbers for adults and children.*the system will starts to process the input that the user

type and selects.*the system will bring you to the filtered search results

that meet your needs.

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*while for the users that just need the normal

functions for booking the flights they have the flight

booking system.

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*Input,Process,Output*an user needed to put in their choices i.e. numbers for adults and children and the date of departing and returning. To make things easier they put in the option with hotel, so that if the user forgotten to pick the correct option they have no needed to redo everything.*Next,the system will starts to process the input that the user type and selects.*the system will bring you to the filtered search results that meet your needs.

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* But there is some cases that things happened in a short time. for example you are needed to go somewhere by tomorrow.

so they prepared this "the last minute deals"

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* this is the examples of the last minute deal. unique from the

previous, it cannot sort from lowest prices to highest due to it is already

the minute deal.

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*Input,Process,Output*an user needed to put in their just hotel,with flights or just flights, numbers for adults and children and the date in and out*Next,the system will starts to process the input that the user type and selects.*the system will bring you to the filtered search results that meet your needs.

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* however for some people who do not know what to do when they arrive to the places that they do not familiar with. AirAsiaGo does havr this

option which help the user to know what event is going on or any good event for their new

experience.

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*examples of the things to do in sydney between the

selected date.

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*Input,Process,Output*First the user need to put in the destination that wants

to go. Next the Date that in the selected place.*The system will started to filter the results of the user.*The page will then list out the events or the hapenings

which may are special and fun to the user. The price for the event are also listed in the page.

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*Storage*The input, process and output is not enough for the IS, the storage of the data is important too. Without the Storage of the data, the user is needed to do the steps again and again in turns the user might not going to use it again plus it is not efficient.*AirAsiaGo system does keep the recent search and input of the user from the first choices started. In the following tabs it will preview the choices previously picked as default.*Also the system does require the user to login in order to use more of its function, so that the server can keep more of customers details for future convenience purpose and keep track on giving some details about latest offers to some flights.

Air-asiaThe AirAsia Mobile App makes it easier to book flights and check-in while on-the-go!

View our lowest fares, manage your booking and pre-book meals, seats, baggage and travel insurance. You will receive a mobile barcode when you check-in via the app.

Just scan the barcode at the airport kiosk to print your boarding pass.

You can also opt to get an e-boarding pass which allows you to go straight to the gate if you have no bags to check-in.

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Mobile BookingThe vast booking information that is provided online to the customer acts as a force that brings more customers to use the website thus reducing the customer support costs. Air Asia to introduce first ticket less travel option and also provides features such as advance boarding passes in addition to mobile booking that enabled the growth of Air Asia as these features attracted customers that did not have the time for purchasing ticket from counters and coming in 1 hour early .

Input

Process Search – Customer choose trip type, select the departing and arriving cities, departure and return date, and select number of guests and start searching the available flights.Select – Select a departing flight with the chosen from the available list to show the summary information of the flight and cost breakdown.Guess and Contact – Login with Air Asia member account and enter the guest information and contact person detailsPayment – The name of the guests will be displayed and verify the total price of flights and select one of the payment methods credit card, direct debit and e-gift voucher.Itinerary – Once the payment has been processed, customer flight Itinerary will be displayed on the screen and sent to customer email.

Receipt for the flights

Once payment is made, Travel Itinerary will be delivered to you at the email address you provided. This will be the proof of your purchase and it contains your booking number, flight details, guest details and payment details.

Output

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Live Flight

With Air Asia membership, it’s more than just a login to book flights, weekly newsletter or a plain old airline membership. People can take speed up booking process with my family and friends.

Easily book flight for your friend and family as you can store up to 10 guests’ information in your account. Just by completing the simple steps on Air Asia.com, your previously saved list will appear when you making are making a flight booking.

Second advantages are 1-click card. Breeze through the payment page with 1-click card never will you have fumble and rush to key-in your credit card details. This will definitely speed up your flight bookings.

Storage

Porter’s Five Forces Analysis for Air Asia

1. Threat of Substitute Products • Customer easy to switching to other airline. In the

airline industry , there are 59 airlines company that offer low cost fare. The airlines have the same flight path included more than one hundred cities and islands throughout the South Asia, Southeast Asia and Northeast Asia. It’s easily for the customer to look for alternative.

• Performance of competitors. For all an airline carrier, they are no significant differences in product offering. Performance of airlines normally consists of the accuracy of take off time, aircraft performance and staff services.

• Relative price. The price offer by an airline company may not be fixed and it depend on the time different between booking date and flight date. No significant differences of price between MAS and Singapore Airline when customers purchase last minute tickets. Customer will choosing the airline carrier who will offer them more comfortable facility in almost same price with Air Asia.

2. Threat of New Entrants • Customer loyalty is low against airline. Increasing of

airline competitor such as Jet Star and Tiger Airways who also offering low cost fare will decrease of Air Asia’c customer loyalty.

• High cost to start-up. Airline industry needs a high cost in start-up capital to set up headquarters, purchase or hiring aircraft, appointment pilots and staffs like stewardess and etc. Thus, the threat is low for Air Asia.

• Different of product offered. Air Asia has expanded their product and offer the different product compare to competitors. Air Asia not only sales ticket but also offering a holiday package which affordable around Asia. It must have a good relationship with hotels and tourism company.

• Costs of switching low. No significant differences in the price compare to Air Asia’s competitor, their customer do not spend more to shift to another airline. The competitions depending on service and facilities provided in the flight time to customers.

• Strict government regulations. Due to competitive in airline industry and protects on national airline, MAS which facing losses in these years, it is quite difficult to apply for licensing and permit for operating airline company.

3. Intense Rivalry among Existing Players • High numbers of competitor. Air Asia are now facing high

competitor with approximately 59 low fares airline such as Tiger Airways, Air Arabia, Jet Star Airways, JAL Express and etc. They may compete in term of their route offering that Air Asia does not fly.

• Fixed cost is high. The airline industry incurs high fixed cost consists of finance cost, hire purchase and staffs costs.

• Exit cost is high. It’s hard to leaving airline industry because cost is high in paying loans, staff retrenchment and flight cancellations refunds.

• Similarity of product offering. Every airline provides similar services is to reach the destination. Air Asia had expanded its services provides hotel booking such as Tune Hotel which located not far away from its airport and tour packages.

4. Bargaining Power of Suppliers • Supplier concentration in a few hands. Due to a few suppliers in

market will increasing the bargaining power of supplier. Aircraft supplier who gaining most bargaining power as only in two operation, Boeing and Airbus. Other supplier such as fuel supplier, merchandise supplier and food supplier may depend on market condition.

• High switching cost. Most of Air Asia’s aircraft using Airbus models. Previously, they are using Boeing models, and Air Asia is then lease it. In case if Air Asia want to switch back to Boeing, the cost for employee training in operating the aircraft features is high. Besides, Airbus is using advanced technology in designing aircraft, the power of supplier is high due to Air Asia must depends to the Airbus engineer to do maintenance.

• Relative insignificant influence of buyer to supplier. Airbus is a UK based company. Their customer come from around the world. Air Asia is a small portion of Airbus customer who order 200 aircraft. The total of order of Airbus is 9,113 aircraft. Air Asia contribute only 2% from Airbus total order.

5. Bargaining Power of Buyers • No significant product differentiation. Differences of Air Asia

products is offering holiday packages. They offers to providing package including flight tickets, accommodation and travel guide for customer. The important thing is fly to destination which shows the stronger bargaining power of buyers.

• Low switching costs. Bargaining power of buyer strong if costs of switching to other airlines is low. Not only Air Asia operated in Asia. The price offer by competitor not much different. Customer will choose their convenience and flight schedule must fit them best.

• Modern portion of expend buyer on airline. Bargaining power of buyer will strong if customer look for cheaper price.

• Market information will access by customers. IT mostly used by big company and success company in the world. With IT, its allow for international business without boundaries. Information is easy to access by customers only by click. With the online application, Air Asia didn’t have to prepared room for negotiation. Thus, customers had strong bargaining power.

*Youtube link-mobile apps

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*https://www.youtube.com/watch?v=CHzy5Vk2NT4

ConclusionImportance System to Company

Provides powerful strategic and tactical tolls for Air Asia - promoting and strengthening the competitive advantages.

Low Fare with great flexibility-The system use by Air Asia make Air Asia more effective and efficiency and possibly able to reduce the cost and eliminated inefficiency in their business. Air Asia used it to takes into account the operating costs aids Air Asia to optimize price and allocate capacity to maximize expected revenues.

Online systems are more easy to use-Air Asia can more understand the behavior of customer and offering the effectives and efficiency strategy. It also can be allocate capacity to maximize the expected revenue. Air Asia can make efficiency to know their customer using IT technology with lowest cost by using this system.

Thanks You

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