Driving Business Value

for
Southwest
Airlines
Group- 8

1.Mudit Srivastava
2.Animesh Kumar
3.Rajesh Kumar
4.Shailabh Srivastava
5.Tuhin Bhattacharya
6.Braj Kishore
Airlines have three segments with distinct
challenges, but similar solution
requirements
Traditional LCC Tier 2/3
• Increased • Distribution • Distribution
competition and new • Inability to scale • Dynamic packaging
Customer

LCC entrants
• Limited functionality • LCC threat
• Pressure on yields
and labor costs • Security • Skills shortage
Pain

• Security and • Little differentiation • Limited scale

associated costs
• Complexity

1. Cost Effective Distribution – channel optimization

Solutions

2. Process Optimization – Lean techniques

3. Asset utilization - EAM/MRO
4. Brand differentiation – customer loyalty
5. Self Service – employee, customer
6. Safety & Security – biometrics, RFID, wireless
7. Supply Chain 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
• 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
Reservation Systems are the heartbeat of
the Airline Industry: z/TPF is the data
server
Travel Agencies

z/TPF

Airline Seats Avail PNR

Reservations
And Ticketing,
Departure Fares Sched Ticketing
Control
Applications
 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
 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
The • International air carrier in U.S
Company • 34 years profitability & largest
passenger- based airlines.
• Overtime employees are motivated to use IT
The based innovation to carryout process.
Challenge • Streamline maintenance processes & reduce
delays
• Implemented IT solution in their work by making
The Solution more department for asset, work, materials
• Developed specialized functionality with IT

• Better managed the supply chain process

The Benefits • Improved maintenance planning
• Helped in achieving customer services
Airlines can optimize customer service and
operational efficiency using data they are
capturing today.
Baggage
Check-in
Check

Reservatio In-Flight
ns and Service
Ticketing
Integrate
d
Customer Crew
Service
Automati Manageme
on nt

Flight Maintenan
Schedulin Day of ce
g Operation And
s Engineerin
g
Customer-focused
Operations-focused
 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