'Operating and Information System: Case Study on Airasia\r'

'WEEK 7 : operate and Information System: Case Study on AirAsiaAirAsia wees fosters with the fol follow 1ing vision is to be the largest low court air lane in Asia and help the 3 billion people who atomic number 18 currently underserved with poor connectivity and proud sleep togethers. Beside that, the AirAsia withal creates the mission is to be the go around company to work for whereby employees be treat as part of a big family, create a glob eithery recognized ASEAN tarnish, to attain the populate-place terms so that all nonpareil can fly with AirAsia and the experience is concur the highest quality product, embracing technology to reduce comprise and enhance service levels.\r\nAirAsia makes the low fare precedent mathematical and create economic values through the implementation of the 6 cay strategies. The first of the see strategies is Safety First, AirAsia wan to be partnering with the world’s closely renowned maintenance providers and comply ing with the world air duct operations. Beside that, the second key strategies is High Aircraft Utilization is recollect implementing the regions fastest turnaround quantify at totally 25 minutes, assuring lower be and high(prenominal) productivity.\r\nLow Fare and No Frills are besides is AirAsia’s key strategies, Low Fare and No Frills is mean providing guests with the choice of customizing services without compromising on quality and services. Another key strategies is Streamline Operation, this key strategies is make sure that workes are as simpleton(a) as possible. Beside that, Lean Distribution System is offer a wide and innovative range of distribution channels to make booking and surviveing easier. The last of the AirAsia’s key strategies is Point to Point net is to applying the transport-to- patch network trammels operation simple and lower costs.\r\n tune process and operation in the AirAsia is has fostered a dependency on Internet technology for its operational and strategic management, and provides an online ticket booking services to traveler online. In todays globalize economy, information technology has driven key changes in the nature and application of technology in production line. The implementation of information technology in its value train provides powerful strategic and tactical appliances for AirAsia, which if mightily applied and used, could bring great advantages in promoting and strengthen the competitive advantages.\r\nMoreover, AirAsia has currently adopted information technologies strategically to integrate the operations and coordinate all the business and management functions. The followings are few governance implementations that AirAsia has through in its marketing and sales activities as easily as operation activity in the value chain. The last airlines like Air Asia attending low cost require high efficiency in every part of the business and maintaining simplicity. Therefore every syste m process must incorporate the best industry practices.\r\nThe key components of the LCC business model are High aircraft utilization, No frills, Streamline Operations, Basic Amenities,Point to point network, Lean Distribution System. Aircraft is kept flying as much as possible, the first flight lift outs as early in the morning commercially possible and the final flight typically ends at midnight. A fast turnaround is critical to ensure time spent of the ground is minimal †an airline makes specie when the aircraft is flying, not when the aircraft is parked. AirAsia’s turnaround time is 25 minutes; compare that against 1 hour for a FSC.\r\nOn average, AirAsia’s utilization per aircraft is 12 delay hours per day, a FSC might do about 8 block hours per day. No frills much(prenominal) as no free food and beverages, free seating, no repayment and no loyalty programme. Making the process as simple as possible is the key of a sure-fire LCC. Single type of aircraft, single stratum seating, Standard Operating Procedures. Secondary airports. Low cost carriers mostly fly to and from airports that are not need full phase of the moony the busiest, for example, London †Stanstead rather than London †Heathrow.\r\nThese are oft referred to as tributary airports. Operating from so called secondary airports is cheaper than from the bigger major airports and they are also a stilt less congested and â€Å"turnaround measure” for aircraft are a lot shorter. Point to point network. LCC shuns the hub-and-spoke system and embraces the simple point-to-point network. Almost all AirAsia flights are short-haul (3 hour flight or less). No arrangements have been made with other airline companies on connecting flights, on possibilities of flight transfers, nor on having the luggage labeled and assed through from one flight to another. Distribution costs are something that FSC most often ignore. Very often, FSC relies on travel agents and from th eir posh sales office. Furthermore, FSC unceasingly blows the budget by complicating their distribution channels by integrate their systems with multiple Global Distribution Systems. LCC will keep their distribution channel as simple as possible and will cover the whole spectrum of the stage business profile. For example, AirAsia can cater to the most sophisticated European traveler via internet and credit card sales.\r\nAnd at the kindred time, AirAsia has an established system to sell our tickets to the most remote and technology deprived locations, such as in Myanmar. When talking about LCC, some living quarters will react with cynical and sometimes idiotic views. If a passenger must stand in a flight due to lack of seating room or there will be chickens in the flight. Such misconceptions are not surprising, given the occurrence that scheduled, low-fare flights are a relatively new phenomenon in the world.\r\nThe reason for the success of the new low cost carriers is very simple †move the maximum number of passengers at the minimum of cost. The concept of LCC is based on the idea that people would fly a lot more often if it were more affordable. LCC airline’s main mission is to make air travel the most simple, convenient and inexpensive form of pane in the world. The fare contrastingial between the full service carriers (FSC) and LCC can be as high as 40%-60% cheaper. Air Asia SWOT such as Strengths, Weaknesses, Opportunities and Threats.\r\nStrengths analysis have low cost operations, fewer management level, effective, focused and aggressive management, simple proven business model that consistently delivers that lowest fares, multi-skilled staffs means efficient and incentive workforce, penetrate and throw to potential markets. Weaknesses analysis have limited gay resources could not handle irregular situation, government halt and regulation on airport deals and passenger compensation, brand is vital for market position and develop ing it is always a challenge, and new entrants to provide the wrong-sensitive services.\r\nOppurtunities analysis also have long haul flight is an mental testing to get undeveloped market share, differentiation from handed-down LCC model by adding customer services or operation as full service airline with low fare, and ongoing industry consolidation has loose up prospects for new routes and airport deals. And the last one Threats analysis have full service airlines start cut costs to compete, high fuel price decreases yield, accident, terrorist attack, and disaster and affect customer confidence, increase in operation cost in producing value-added services, and system rumpus due to heavily reliance on online sales.\r\nIn AirAsia have Yield Management System (YMS) . This system is to anticipates and reacts to the behavior of customers to maximize the revenue. For some example, for the seat are available at various prices in different points of time. A reservation done at a late r date will be supercharged more than the one done earlier for the same seat. For the Route is adjusting prices for routes or destinations that have a higher demand when compared to others.\r\nDuring off-peak times while raising prices solitary(prenominal) marginally for peak times. For the AirAsia’s estimator military reserve is an unified web-enabled reservation and inventory system retinue powered by Navitaire’s Open Skies technology that includes Internet, call center, and airport departure control functionality. Computer Reservation System is also satisfy the rum needs of AirAsia implementing a low-cost business model to transform the business process to efficiently streamline operations.\r\nEnterprise Resource Planning System(ERP) in AirAsia is an unified solution powered by Microsoft Business Solutions (MBS) on Microsoft technology platform which is implemented by Avanade consultants in 2005. With the robust ERP technology platform, AirAsia is able to b oomingly maintain process integrity, reduce financial month-end closing affect time, press forwards up reporting and data retrieval process. node Relationship Program (CRM) the information management process, the multichannel integrating process, the value creation process, the schema development process and the performance assessment process.\r\nThe fundamental to a successful CRM strategy requires seamless customer-centric processes, supported by integrated technology across the enterprise and its supply chain which provide the good information at the right time. To ensure that technology solutions support CRM, CRM tools must be making trade offs in flexibility, customizability, cost, convenience and speed of deployment; certainly it must match to the needs of the business. However, CRM tool is just a supplement to CRM strategy, appropriate strategy and excellent implementation is essential for a successful CRM.\r\n'