Airlines - Oracleopnpublic/... · Oracle Airline Solutions Provide industry-leading capabilities that allow airlines to develop and grow in an increasingly cost-sensitive market

Airlines

Andy Martin

Industry Director – Travel and Transportation

The following is intended to outline our general

product direction. It is intended for information

purposes only, and may not be incorporated into

any contract. It is not a commitment to deliver any

material, code, or functionality, and should not be

relied upon in making purchasing decision. The

development, release, and timing of any features

or functionality described for Oracle’s products

remains at the sole discretion of Oracle.

Safe Harbor Statement

• Leadership in Airlines

• Innovation in Airlines

• Results Achieved by Oracle Customers

Agenda

Oracle inAir Transport Did You Know?

73% of the world’s top 100 airlines use Oracle Technology73% of the world’s top 100 airlines use Oracle Technology

9 of the world’s top 20 airlines run Oracle Applications9 of the world’s top 20 airlines run Oracle Applications

47 of the world’s major airports use Oracle eBusiness Suite47 of the world’s major airports use Oracle eBusiness Suite

48 of the world’s leading airlines use Oracle eBusiness Suite48 of the world’s leading airlines use Oracle eBusiness Suite

Source: Airline rankings - IATA Economics, Sept 2006

The Challenges We’re Hearing

Increase profitability Increase profitability

and customer loyaltyand customer loyalty

“How can I identify, retain and develop business from

high-yielding customers that deliver up to 80% of my

revenue and drive my profitability upwards?”

Recent steady growth in premium traffic has helped increase airlRecent steady growth in premium traffic has helped increase airline revenuesine revenues -IATA

Improve operational Improve operational

efficiency and reduce efficiency and reduce

costscosts

“How can I increase the efficiency of my processes

and operations, and reduce my costs, to remain

competitive despite the ongoing downward pressure

on revenue and the growth of the low-fare sector?”

One lowOne low--fare airline has 67% lower costs than the average network airlinfare airline has 67% lower costs than the average network airline. US network carriers e. US network carriers have reduced their cost gap with the lowhave reduced their cost gap with the low--fare sector from 45% to 36%fare sector from 45% to 36% -IATA

Ensure regulatory Ensure regulatory

compliance, compliance,

certification and certification and

securitysecurity

“Audits mean that airlines have to prove they are “Audits mean that airlines have to prove they are

complying with legal obligations, and global aviation complying with legal obligations, and global aviation

and security regulations or they will put their and security regulations or they will put their

business at risk”business at risk”

••What we want is for the airlines to get in compliance with the [What we want is for the airlines to get in compliance with the [legal, crew, airworthiness and legal, crew, airworthiness and security] regulations. We constantly audit airlines. We have inssecurity] regulations. We constantly audit airlines. We have inspectors whose job that is.pectors whose job that is. -FAA

Industry Quotes

“The HP and Oracle solution paid for itself in the first year of operation, and the reliability helped the airline provide betterservice to customers and save time and money.”

“Oracle/Siebel's strength is in strategy execution because it hasa complete multi-channel CRM offering that can effectively execute tactics and measure the results. “

“Oracle’s strong middleware platform and greater support of standards make it a better choice than SAP for customers who will rely on custom development as well as packaged apps.”

- “Oracle Versus SAP In Enterprise Applications: Let The Battle Of Architectures Begin!”, Mar 2006




Agenda

Oracle Airline SolutionsProvide industry-leading capabilities that allow airlines to develop and grow in an increasingly cost-sensitive market

IntelligenceIntelligence

TechnologyTechnology

Marketing& Sales

Asset Management& Operations

Procurement& Logistics

Financial

& HR Mgmt

� Increase profitability by identifying, developing and retaining loyal, high-value customers

� Reduce costs through implementation of best operational practice, including optimised use of assets and resources

� Ensure regulatory compliance, certification and security in linewith commercial and operational aviation regulations

Requirement

Uniquely identify and

track activity of individual

customers

Oracle Capability The Oracle Difference

Oracle delivers industry

tailored analytics integrated

with customer interaction

solutions

Siebel Analytics

Interaction Center;

Customer Master

Increase profitability by identifying,developing and retaining loyal, high-valuecustomers

Manage customer’s

journey, and provide

appropriate customer

information to staff at all

touch-points

Oracle provides CRM

solutions fully integrated with

leading airline reservations,

DCS and GDS systems

UCM; real time integration

with airline front-office

solutions

Offer differentiated

product and service

tailored to the needs of

high-value customers

Oracle provides loyalty,

campaign management and

marketing solutions optimised

to meet airline requirements

CRM Marketing,

Campaign Management

and Analytics

Manage and reward

regular and high-value

travelers

Only Oracle offers an end-to-

end airline-tailored loyalty

solution including full loyalty

business partner integration

Siebel Loyalty

for Airlines

� Real-time customer activitytracking and management

� Recognise true customervalue at all touchpoints

� Differentiated and focusedcustomer service

Full customer informationexchanged with front officesystems A comprehensive customer loyalty

management solution allows tracking of activity and status of various types of customers who are of value to the organisation.

Real-time integration with front office systems provides a 360 degree view of each customer and also provides up-to-date details on customer activity, true customer value and status to all staff who interact with a customer which allows for differentiated service provision

Comprehensive loyalty support tracks customer activityand status throughout their lifetime as a person of value

11

22

Front Office Front Office SystemsSystems

-- Res, DCS, GDS, Res, DCS, GDS, etc.etc.

MembershipMembership

PartnersPartners

Club

Loyalty Loyalty

ProgramProgram

Loyalty Account TypesLoyalty Account TypesTier StructuresTier Structures

Partnership Partnership AgreementAgreement

Loyalty Program Loyalty Program OfferingsOfferings

Automated partnermanagement tracksnone-core activity

33

Single Customer View

Manage Customer Loyalty

Customer Success Profile

COMPANY OVERVIEW

� Leading European airline with over 27 million passengers ,147 aircrafts serving 97 destinations in 40 countries.

� 27,000 employees worldwide� 4.8 billion EUR in revenues

CHALLENGES/OPPORTUNITY

� Desire to be a true customer-centric organization

� Beat increasing competition with service differentiation

� Disjointed customer information

� Inefficiencies in lead management, marketing campaigns, and customer service

SOLUTIONS

� Siebel Marketing� Siebel Service� Siebel Call Center� Siebel Loyalty� Siebel Analytics

RESULTS

�Solution used by multiple groups,including lounges, baggage handling,flight incident compensation, claims etc.)

�Single view of customer accessible by all departments provides insight into customer value and travel patterns

� 20 organizational units directly provided input for a comprehensive CRM strategy

�Deployed Call Center and Marketing to 6,000 users




Marketing& Sales



Financial

& HR Mgmt




Requirement

Reduce time to closure at

both headquarters and

outstations


Oracle’s solutions fully meet

airline specific requirements,

and integrate with interline

and trade clearing-houses

Oracle Financials,

Oracle Daily Business

Intelligence, IATA clearing

house add-in

Reduce costs through implementation ofbest operational practice, including optimiseduse of assets and resources

Increase maintenance

efficiency, reduce spares

inventory, reduce (predict)

failures, and optimise

processes

Only Oracle offers an end-to-

end airline specific MRO

solution fully integrated with

back office including HR,

procurement, warehousing

Oracle Complex

Maintenance, Repair and

Overhaul

Reduce off-contact and

unauthorised spend,

reduce purchase costs

Oracle’s solutions are proven

to substantially reduce costs

and spend in distributed

airline environments

Oracle iProcurement

Automate end-to-end

processes to reduce

duplication in a best-of-

breed environment

Oracle offers a toolset that

provides out of the box

integration of its solutions and

leading industry solutions

Oracle BPEL tools, SOA

Optimise Asset UsageReduce costs through optimised use of assets

�Improve failure prediction, reduce asset downtime and costs resulting from unpredicted failure

�Optimise inventory to meet needs of planned and predictive maintenance, reduce inventory costs

Complex

MRO

Complex

MRO

Demand

Planning

Demand

Planning

Inventory

Optim-

ization

Inventory

Optim-

ization

Advanced

Supply

Chain

Planning

Advanced

Supply

Chain

Planning

Demand

Fulfillment

Demand

Fulfillment

UMP

Planned Visits

GlobalOrder

Promising

GlobalOrder

Promising

Future requirements

Future requirements from visit

Historical unplanned requirements

Historical planned requirements

Exceptions

Recommendations

• Transfer

• Procure

• Service

Time-phasedechelon stocking recommendations

• By location

• By item

Inventory holdingmin / max

Budget

Customer service level

Flightpatterns

Fleet additions


COMPANY OVERVIEW

• Major Hong Kong based airline with high-frequency operations throughout Asia and long haul operations to Middle East and Europe

• CHALLENGES/OPPORTUNITY• Users all around Asia Pacific but required a single consolidated view

• Reduce close cycle

• HR and Procurement functions work seamlessly with Finance

• Reduce purchasing costs e.g. improved process efficiencies, improve purchasing contracts

SOLUTIONS

• Oracle Financials & Oracle iProcurement

• Oracle HRMS & Oracle Payroll

• Oracle Training Administration & Oracle Tutor

• Oracle Database

• Oracle Application Server

• Oracle Internet Developer Suite

• Oracle Discoverer

RESULTS

• Significantly reduced close cycle – less than 10 days

• Significant reduction in process times, increase in on-contract spend, reduction in procurement costs

CUSTOMER PERSPECTIVE

“Upgrading to the latest version of Oracle’s E-Business Suite enables us to easily roll out the system to our twenty-seven outports across Asia Pacific. Single instance reporting from our headquarters in Hong Kong then becomes possible, shortening close cycles and dramatically improving the efficiency of the accounting process of the whole organization.”Francis Wai, Chief Financial Officer




Marketing& Sales



Financial

& HR Mgmt




Requirement

Improve regulatory

staff qualification,

certification and

compliance


Oracle has proven capability

in dealing with airline specific

requirements and regulatory

authorities

Oracle Human Resources,

Learning Management

Ensure regulatory compliance, certification andsecurity in line with commercial and operationalaviation regulations

Ensure the right

resources with the right

qualifications, are in the

right place at the right

time (Operations 360)

Only Oracle integrates front

and back-office solutions to

provide end-to-end

compliance

Oracle Human Resources,

HR Analytics and Business

Intelligence

Meet governance and

accounting standards,

comply with certification

and regulatory

requirements

Oracle solutions are proven in

airline environments and offer

more localisations than any

other solution

Oracle Financials,

Oracle HR, Oracle

Dangerous Goods

Improve Compliance and Security

Oracle provides a complete solution that supports and demonstrates improved regulatory compliance, greater control over security, and audit capability

• Identify the right employees

• Develop employee skills and qualifications• Measure and reward success• Retain qualified employees

• Define resource requirements based on skills, qualifications and permissions required to undertake specific tasks

• Ensure compliance and deploy appropriately qualified resources:• Regulatory (e.g. crew and engineer qualifications)

• Security (e.g. access control)• Currency (e.g. qualification expiry and retraining)

ORACLE

e-HR

Compliant

Enterprise

Attract

Deploy

Develop

Measure

RewardRetain

Report

Analyse

Compliance

Incentives


COMPANY OVERVIEW

• Founded in 1973, American Trans Air (ATA) is the 11th-largest airline in the U.S., with revenues of $1.29 billion in 2000. Headquartered in Indianapolis, Indiana, ATA provides high-quality air transportation for more than eight million passengers annually.

CHALLENGES/OPPORTUNITY

• Integration of core technology foundation • Easy access to 28 years of corporate records • Enhance employee communication on benefits and training systems through enhanced human resources functions

SOLUTIONS

• Advanced Benefits, Assets, Cash Management, Discoverer, Oracle Consulting Services, Oracle Financials, Oracle Human Resources, Oracle Support, Oracle Database, Oracle Forms, Oracle Reports, Oracle Portal, Oracle Payroll, Oracle Project Costing, Oracle Purchasing, Oracle Self-Service HR, Oracle Training Administration

RESULTS

• Gave ATA ability to adhere to stringent Federal Aviation Agency requirements for information storage

• Positioned company to meet aggressive goals for growth

• Gained quick and easy communication with ATA's 7,800 dispersed employees

CUSTOMER PERSPECTIVE

"How do you put a value on managers and supervisors being empowered with the information from Oracle HR to make sure that our records--which are extremely vital to our existence--are kept up-to-date and accurate? That's invaluable to ATA."Glen Baker, VP Information Services

Business Operations

Customer Channels

E-Business Siebel ISV Partners

Infrastructure

Partner ManagementMarketing Customer Service

Loyalty

Management

Maintenance

Repair and Overhaul

Purchasing and

Inventory

Corporate Administration

Sales

Indirect

ProcurementCPM

Facilities

Management

Human

ResourcesProjects Compensation

HR IT

Helpdesk

20

Technology [e.g. Database, Spatial, Application Server, RAC, Oblix, Times Ten]

Integration Framework (e.g. BPEL)

Hubs (Asset Hub) Universal Customer Master

Supply Chain

And Warehousing

Self Service

Analytics

CRM

Supply Chain

Human Resources

Financials

Call Center

Asset

Management

Airline Operations

and Crew Scheduling

Financials

Solution Footprint - Airlines

Reservations and

Departure Control

Inventory and

Yield Management

Cargo

Management

Rev. Acc’ting

Operating System

Database

Fusion

Middleware

Tools / J2EE

Applications

Consulting

Top to Bottom Support

for Airlines• #1 enterprise software vendor

• ERP, CRM, HR and more

• Most scalable, reliable, secure infrastructure

• Most complete range of on-demand and on-premise deployment options

• Built-in Airline capabilities• Airline-tailored full-function loyalty (frequent flyer) solution

• End-to-end asset management support, including tailored management of assets such as aircraft and ground equipment

• Industry-specific functionality in Finance, HR and Learning

• Integration with market-leading airline reservations, DCS and GDS solution, and with industry clearing houses

• Compliant with industry regulatory and certification requirements

• Airline-specific business intelligence, data analysis & data mining algorithms and reports

• Largest software support team• 3,000+ support engineers in 145+ countries

The Oracle Difference

• Can deliver solutions that provide end-to-end identification, management, tracking and differentiated personalised support for high-value customers at all airline touch points, before travel, during travel and post travel, including an airline-tailored loyalty solution

• Can demonstrate measurable benefit working with airlines to improve best-practice process, reducing costs and reduce spend across all major back-office and asset management processes, with solutions tailored for the airline industry

• Offers solutions that can deliver proven benefits in ensuring airlines comply with federal regulations - managing employees, their training, qualifications, certifications and expirations with in-built auditability, shipping of dangerous goods, etc, which leads to increased regulatory and security compliance

Only Oracle…




Agenda

Customer Quotes“The CRM infrastructure we have built with PeopleSoft and IBM is the most sophisticated in the airline industry. No other company hasanything like it.”

“We were impressed by Oracle’s industry knowledge and the closeness of fit of its functionality to our business requirements. We are convinced that the benefits of this project will enable goodreturns for Virgin Atlantic both in terms of cost savings and business process improvements that will impact both short term results and help us build for future growth”

“With Oracle Internet Procurement solution, Cathay Pacific expects to conduct 35% to 50% of its purchasing over the Internet within the next three years. This Internet Procurement solution is expected to help reduce the airline’s total expenditure by more than HK$300 million a year with much of the saving coming from online purchasing and a substantial reduction in inventory carrying cost.”

“Oracle Integrated Financials System was selected for overseas accounting initially, however the scope was expanded to include corporate finance functions Oracle was able to meet the airlines requirements and in addition, was flexible in tailoring to SAS specific needs.”

“”Siebel Business Analytics provides us with the ability to be more proactive as a marketing and service operation and be more relevant to the customer. It also allows us to be more mindful of customers’ needs whilst at the same time being respectful of their time and privacy. That is where our customers will find true value”

Oracle Airline SolutionsSummary

Increase aviation regulatory compliance, certification and security

Increase aviation regulatory compliance, certification and security

Reduce operational costsReduce operational costs

Improve profitability and increase customer loyalty

Improve profitability and increase customer loyalty

• Comprehensive customer management and analytics

• Relevant customer information delivered to all touch-points

• Full integration with reservations, DCS and GDS solutions

• Full-function airline-optimised loyalty (frequent flyer) solution

• Strategic, value added financial support including optimisedbuying (on-contract, in catalogue, procurement)

• Improved failure prediction resulting in reduced asset downtime

• End-to-end fully integrated support of total life-cycle asset management including aircraft MRO

• Full training, certification and security qualification and expiry tracking. Integration of qualification and clearances with staffscheduling, MRO operations and security systems

• Full compliance with corporate governance and international accounting standards

• Compliant with federal and other regulatory authority record keeping and audit requirements (including dangerous good)

Documents

Airlines - Oracleopnpublic/... · Oracle Airline Solutions Provide industry-leading capabilities that allow airlines to develop and grow in an increasingly cost-sensitive market