Driving Business Value- Southwest Airlines
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Transcript of Driving Business Value- Southwest Airlines
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for
Southwest Airlines
Group- 8
1.Mudit Srivastava2.Animesh Kumar
3.Rajesh Kumar4.Shailabh Srivastava5.Tuhin Bhattacharya6.Braj Kishore
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LCC
• Distribution
• Inability to scale
• Limited functionality
• Security
• Little differentiation
Tier 2/3
• Distribution
• Dynamic packaging
• LCC threat
• Skills shortage
• Limited scale
Traditional • Increased
competition and newLCC entrants
• Pressure on yieldsand labor costs
• Security andassociated costs
• Complexity
1. Cost Effective Distribution – channel optimization
2. Process Optimization – Lean techniques3. Asset utilization - EAM/MRO4. Brand differentiation – customer loyalty5. Self Service – employee, customer6. Safety & Security – biometrics, RFID, wireless7. Supply Chain Management
Custo
mer
Pain
Solution
s
Airlines have three segments with distinctchallenges, but similar solution
requirements
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Strategic management
– Strategic management is thestudy of such set of managerial
decisions and actions that
determines the long runperformance of a firm. The major
steps in the strategicmanagement process are : Environmental analysis
Strategy Planning
Strategy planning process
Strategy evaluation and control
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Environmental analysis
• Macro environment. A ) socio cultural,politico- legal, socio- economic,technological and economic factors
acting on the firm. B) governmentetc.
• Micro –environment. A) organisational
structure b) organisational cultureand work .c) organisational resources.
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Customers• Web Selling
• Track & Trace
• Kiosk Check In Services
• Mobile Agent Check In
(Airport/Hotel)• PDA Notification
• Alliance Mileage Award
Customers• Web Selling
• Track & Trace
• Kiosk Check In Services
• Mobile Agent Check In
(Airport/Hotel)• PDA Notification
• Alliance Mileage Award
Employees• Shift Bidding
• eHR
• Online Training
• Wearable Computers
Emp
loyees• Shift Bidding
• eHR
• Online Training
• Wearable Computers
Self Service for passengers andemployees
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Reservation Systems are the heartbeat of the Airline Industry: z/TPF is the data
server
PNRAvailSeats
TicketingSchedFares
z/TPF
AirlineReservationsAnd Ticketing,
DepartureControl
Applications
Travel Agencies
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z/TPF can address thereservation demands of the
future Handle thousands of reservations per second
Continuously availablereservation system
Easy integration
– Loyalty
– Partners
Support IT skills of the future
Lower Total Cost of Operation
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Specialized Database Technologyfor Large Scale Reservation
Systems z/TPF is an operating system with a sequentialfile database and tools designed to handle realtime, large volume transaction processing – Between 10 to 50x faster than any relational database for reservations
Strong Industry Presence in Airlines and Travel – Delta, American Airlines, Northwest, Korean Airlines, Singapore Airlines
• 90% of all Airline Reservations use TPF (predecessor to z/TPF) as the back end
– Hotel Reservations• Marriot
• Intercontinental Hotels
– Rail for Passenger Reservations• SNCF (French Railroad)
• Ferrovie (Italian Railroad)
• Taiwan Rail
• Amtrak
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Southwest Airlines ImprovesMaintenance Planning
TheCompany
Southwest Airlines• International air carrier in U.S
• 34 years profitability & largestpassenger- based airlines.
TheChallenge
• Overtime employees are motivated to use IT
based innovation to carryout process.• Streamline maintenance processes & reducedelays
The Solution
• Implemented IT solution in their work by makingmore department for asset, work, materials
• Developed specialized functionality with IT
The Benefits
• Better managed the supply chain process
• Improved maintenance planning
• Helped in achieving customer services
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Integrated
Automation
Check-inBaggage
Check
In-FlightService
Reservations and
Ticketing
FlightSchedulin
g
CustomerService
Day of Operation
s
Maintenance
AndEngineerin
g
CrewManageme
nt
Customer-focused
Operations-focused
Airlines can optimize customer service andoperational efficiency using data they are
capturing today.
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Airline to have a single view of thecustomer with information from
multiple sources Airlines interact with customers and have their data
– Call Center
– Web
– Travel Agencies
– Reservations
– Loyalty (Frequent Flier program)
– Ticket Counters
Yet,
– Airlines have issued duplicate refundsfor the same ticket
– Preferences, e.g., Kosher food in aloyalty system do not make it to apassenger’s reservation record
– Customers are not recognized at Elite Lounges
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