Driving a Culture of Innovation in the Airline Papers...White Paper Driving a Culture of Innovation…

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  • White Paper

    Driving a Culture of Innovation in the Airline Industry Introduction

    Challenges

    Tech Mahindra - Driving Innovation

    Tech Mahindra's Co-Innovation Center of Excellence (CoE)

    transportation services organizations software is custom-designed, pursue a business-driven IT compared to less than 40 percent in

    There were mixed results for airlines over transformation that seeks to simplify other industries. Furthermore, most the past year, with some markets and the infrastructure, improve processes carrier IT systems are amalgamations sectors remaining robust while others and continue boosting asset utilization. resulting from many rounds of struggled. High fuel prices and an uncertain In such a transformation, the vastly mergers. Where there has been no economic outlook are keeping the complex business systems and attempt to rationalize IT systems after pressures firmly on airlines. On the one associated processes of many a merger, the systems are far more hand they continue to struggle with carriers are fundamentally redesigned complex than they need to be. limitations of legacy systems and high costs and integratedboth within and Increasingly, TechM teams have been of ownership, while at the same time, on the across functions. supporting alliance eco-systems to other hand, they continuously have to evolve leverage value chain efficiencies,

    - Leveraging in-house Big Data to newer methods of customer acquisition, possible with disruptive technology enhance customer experience in a retention and satisfaction. platforms like Cloud Computing, connected world. Mobility and others to achieve radical Years of focusing primarily on cost savings,

    benefits while maintaining alignment coupled with heightened security measures, with security and compliance have taken a toll on the experience of flying. requirements.- Taking digitization to the next level will Digitization capabilities offer airlines with an

    not be easy. Carriers must figure out opportunity to reverse this negative trend - Airline IT ecosystem, which is which technologies to prioritize and and offer a better customer experience for significantly dominated by a decades how to implement them. Over the next passengers and improved regulatory old technology, offers little flexibility decade, however, the digital aircraft, oversight and competitive differentiation at and time to innovate. Invariably the explosion of related information eco-system levels that can be monetized business as usual (BAU) takes and big data scenariosas varied as significantly. precedence and innovation takes back real-time weather, flight operations, seat. Limitation of a product or a asset tracking, aircraft health technology becomes limitation of the monitoring, ticket prices, automated airline resulting in higher IT spending. At Tech Mahindra, we enable Digital border-control systems to speed Larger carriers with an established IT Enterprise transformation for airline immigration, and even airport taxi set up still have organizational business and operational needs through the availabilityhave huge potential to bandwidth to create a set up for Co-Innovation Center of Excellence (CoE) improve both the customer experience Innovation, which continuously looks at Model and NMACS Platform capabilities. and overall airline operations.the latest technology trends and Typical transformational impact areas develops innovative solutions - Reaping technology benefits requires targeted for airlines are:complimenting their legacy strategic investments. Critical to the

    - New interactive services that leverage applications. Small to mid-size carriers success will be more disciplined IT mobile apps, new merchandising and still struggle to focus on innovation and project management, sourcing loyalty models, and cross-industry find themselves on losing ground. They strategies, well integrated Dev-Ops partnership models that personalize invariably end up buying commercially capabilities and a focus on controlling the end-user experience in ways available products and end up paying the internal demand for IT services. unseen before. TechM has been extra in trying to fit into the current IT The transformed IT system will not supporting innovative initiatives at landscape.only deliver IT cost savings, butif done premier Airlines & Transportation rightalso create essential advantage Enterprises that focus on, for example, for carriers in their ability to manage premium customer loyalty programs operations and sustain improvement and eco-system solutions that impact gains. For instance, using IT systems Considering the vital & strategic role airline long haul and regional travel to improve flight planning and Innovation plays in driving competitive segments. scheduling can cut fuel consumption by differentiation, premium services and

    2 percentwhich carries the same - Digitization can also make a difference market share growth, airline carriers

    overall cost impact as a 20 percent in streamlining back-end operations, require an industrialized and proven model reduction in IT spending. TechM Fuel and driving down an airline's costs. to deliver predictable quality, faster time-to-Analytics solutions have been Collaborative solutions and market and cost effectiveness. Typical leveraging business intelligence integrations across silo systems can challenges and key asks from CXOs and capabilities to support Green & translate to quantum improvements in Innovation Heads are:Sustainability related initiatives of process responsiveness and carriers and large enterprises as well. - How do I establish an engine of throughput efficiencies here.

    continual innovation aimed at quantum - For those willing to tackle digitization,

    - TechM's Digital Enterprise solutions leap in value offerings (customer the opportunity is huge. At the typical team has been helping major related, operational efficiencies, value airline, roughly 60 percent of the

  • chain contributions, compliance & risk management)?

    - What are the accelerators available to achieve faster time-to- The L1, L2, L3 modelsmarket and requisite scale of commercialized solutions to

    Innovation is a core differentiator for an organization and is seen as make business impact?a source for competitive advantage. In an area of work as sensitive

    - Where do I obtain multi-skilled and expert teams/SMEs to tap as this, customers often prefer to embark on a measured and the capabilities of disruptive technologies and fast evolving increasingly engaged style of partnering with consultants such as business technology frontiers with requisite depth and us. The quickest and often first level of innovation engagement is proficiency? what we call Rapid Innovation where we use our crowd sourcing

    platform - IRIS - to garner innovative ideas from our associate base - How can I ensure better integration with a Carrier-specific that can be evaluated for suitable implementation for our clients. In eco-system to manage and deliver end-to-end value and the next level that we call L2, we focus on creating possibilities for performance?our clients with the use of new technologies. Dedicated competency

    - Higher compliance transparency and leading edge capabilities teams within our organisation work on specific technology areas on the regulatory and governance fronts and have deep technical expertise that we bring into play for our

    clients. At the peak we have L3 level of engagement where we focus - Can we leverage automation platforms and agile development on working with the client to enable a digital enterprise. This is

    capabilities to tap the capabilities of distributed teams, where the core areas of DES Digital Enterprise Solutions, reduced efforts & time wastage and importantly, tap creativity (deploying Network, Mobility, Analytics, Cloud, Security, Social and across the eco-system (internal, alliance, partner, vendor and Sensors) are utilized to bring about transformational change in the entrepreneur)? way processes are run or services delivered.

    - How do I engage business teams with adequate appreciation of new, disruptive technologiesand engage technical & operational teams to factor in domain and business nuances to make compelling solutions?

    - Is it possible to introduce leading edge practices in development, testing, quality control, monitoring to accelerate innovation commercialization while ensuring requisite controls and performance standards?

    TechM has rich experience of serving more than 30 airlines and airports worldwide. The vertical is focusing on:

    1. Smooth execution of existing accounts

    2. Building a team of techno domain experts to enhance the value to our customers at all levels

    3. Understanding the future trends and preparing in advance

    4. Co-Innovation.

    Social media integrated CRMs-

    These are capable of analyzing customer's flight history and online behavior and based on analysis not only able to send personalized messages but also suggest personalized on-board entertainment, send real-time customer service while up in the air and much more, through which passengers can feel that their airline is communicating with them and knows exactly what they want and are interested in.

    Near field communication (NFC)-

    In simple terms NFC or Near Field Communications is a contactless technology that allows secure data sharing between the passenger's mobile device and a reader at the airport. The technology has already started making its way into the airline industry.

    Tech Mahindra customer co-innovation models

    Travel, Transport & Logistics (TTL) Vertical @TechM

    Tech Mahindra Experience in Driving Innovation in Airlines

  • NFC technology can also be used for checking-in, going through security, accessing travel documents such as visas, baggage

    We refer to DES as a technology stack that helps reap the receipts, and itineraries. The potential is huge as well as the transformational gains of a Digital Enterprise. The relevance of a possibility to make travel less stressful for passengersdigitized organization comes from the study of challenges faced by various industries across the spectrum and in the knowledge that it Big Data- has become all the more pertinent for organizations to be able to

    Airlines have access to a massive amount of data about their prepare appropriately, respond faster and communicate better. passengers. Data allows them to better understand customers Retaining and growing the market share is a clear and present and respond to their preferences. challenge perennially. To ensure this is possible, the systems and

    processes an organization has, need to be studied for their level of Business intelligence solutions help them improve customer service digitization and enabled where necessary. We define a digitized and support revenue opportunities. organisation as follows:

    TechM has leveraged the power of its IP iDecisions Airlines which is an analytics framework and this is available through SAP Hana for real time reporting and decision making.

    Business need was, safe employee transport management system for Jet Airways - a premier Indian Airlines offering domestic and international services. As a part of the solution we integrated flight performance and transportation module for real time process monitoring, integrated ERP, roaster, router, SMS gateway etc which resulted in timely reporting of employees, enhanced safety and security, and 17% reduction in delays.

    Digital Enterprise Solutions (DES)

    M2M

    Typical examples of leveraging DES for Carrier capabilities pivoted on mobile services are shown below:

  • For more information, see www.techmahindra.comFollow us on Twitter: http://twitter.com/tech_mahindra

    Connected World.Connected Solutions.

    Tech Mahindra 2013

    Seamless Travel Others

    1. Check in , chooses seat, prints boarding pass by swiping at Kiosks 1. Maintenance Crew carries out Turn Around and Overnight Checks at the airport on a Mobile

    2. Mobile App indicates gate number of next flight at the layover 2. Maintenance Crew receives pre-notification of snags on aircraft airport(s) without going over the FIDS before aircraft lands

    3. Auto allotment of seat based on passenger's preference 3. Crew use Mobile to serve corporate and selected mealrecorded over the last few flights

    4. Ground Crew use for positioning ladders, catering services, off 4. Allows automatic lounge entry with swipe loaders, facility services etc and convey 'all clear' to the airlines

    ops staff5. At the airports, guides the passenger to the check in counter with

    least waiting time Analytics

    6. Airline Tracks the passenger at the airport in case he is delayed 1. Analyze past data to come up with dynamic pricing with the at the gate objective of increasing load factor based on segmentation of

    passengers, seasons, type of traveler (leisure, students, business 7. At the Destination, Airline informs the PAX, Belt information from etc), geography Predictive Analytics. For example : Effect of where to collect Baggage by the Baggage Track ID. If Baggage is introduction of a new airline, or closure of a particular airline, missing, PAX is duly informedclosure of an airport etc

    2. Social Media analytics combined with CRM

    This paper has been co-authored by Mallikarjun Vempati, Practice Head Airlines Industry and Sahil Mahajan, Consultant Airlines Industry. For further information on this subject, please contact them at vempati.mallikarjun@techmahindra.com or sahil.mahajan@techmahindra.com.

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