Driving Business Value- Southwest Airlines

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Driving Business Value for Southwest Airlines:

Driving Business Value for Southwest Airlines Group- 8 Mudit Srivastava Animesh Kumar Rajesh Kumar Shailabh Srivastava Tuhin Bhattacharya Braj Kishore

Airlines have three segments with distinct challenges, but similar solution requirements :

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 new LCC entrants Pressure on yields and labor costs Security and associated costs Complexity Cost Effective Distribution – channel optimization Process Optimization – Lean techniques Asset utilization - EAM/MRO Brand differentiation – customer loyalty Self Service – employee, customer Safety & Security – biometrics, RFID, wireless Supply Chain Management Customer Pain Solutions Airlines have three segments with distinct challenges, but similar solution requirements

Strategic management:

Strategic management Strategic management is the study of such set of managerial decisions and actions that determines the long run performance of a firm. The major steps in the strategic management process are : Environmental analysis Strategy Planning Strategy planning process Strategy evaluation and control

Environmental analysis :

Environmental analysis Macro environment. A ) socio cultural, politico- legal, socio- economic, technological and economic factors acting on the firm. B) government etc. Micro –environment. A) organisational structure b) organisational culture and work .c) organisational resources.

Self Service for passengers and employees:

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 Self Service for passengers and employees

Reservation Systems are the heartbeat of the Airline Industry: z/TPF is the data server:

Reservation Systems are the heartbeat of the Airline Industry: z/TPF is the data server PNR Avail Seats Ticketing Sched Fares z/TPF Airline Reservations And Ticketing, Departure Control Applications Travel Agencies

z/TPF can address the reservation demands of the future:

z/TPF can address the reservation demands of the future Handle thousands of reservations per second Continuously available reservation system Easy integration Loyalty Partners Support IT skills of the future Lower Total Cost of Operation

Specialized Database Technology for Large Scale Reservation Systems:

Specialized Database Technology for Large Scale Reservation Systems z/TPF is an operating system with a sequential file database and tools designed to handle real time, 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 Improves Maintenance Planning :

Southwest Airlines Improves Maintenance Planning The Company Southwest Airlines International air carrier in U.S 34 years profitability & largest passenger- based airlines. The Challenge Overtime employees are motivated to use IT based innovation to carryout process. Streamline maintenance processes & reduce delays The Solution Implemented IT solution in their work by making more 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

Airlines can optimize customer service and operational efficiency using data they are capturing today. :

Integrated Automation Check-in Baggage Check In-Flight Service Reservations and Ticketing Flight Scheduling Customer Service Day of Operations Maintenance And Engineering Crew Management Customer-focused Operations-focused Airlines can optimize customer service and operational efficiency using data they are capturing today.

Airline to have a single view of the customer with information from multiple sources:

Airline to have a single view of the customer 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 refunds for the same ticket Preferences, e.g., Kosher food in a loyalty system do not make it to a passenger’s reservation record Customers are not recognized at Elite Lounges

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