Driving Business Value- Southwest Airlines

8/7/2019 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



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



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



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.



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



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



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



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



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



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.



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



Documents

Driving Business Value- Southwest Airlines