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SITA Customer Seminar Simplify your business Munich, 21 Sept 2005 Self Service and E Commerce Jim Callaghan.

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Presentation on theme: "SITA Customer Seminar Simplify your business Munich, 21 Sept 2005 Self Service and E Commerce Jim Callaghan."— Presentation transcript:

1 SITA Customer Seminar Simplify your business Munich, 21 Sept 2005 Self Service and E Commerce Jim Callaghan

2 E Commerce | 21 Sept 2005 Agenda A challenged industry Real world E Commerce The road to success Building blocks of E Commerce Case Study Summary Reduce Costs Improved PAX exp. Asset Optim.

3 E Commerce | 21 Sept 2005 Industry challenges Fuel prices Increasing competitive threat to market share Ticket prices too low to support cost base The need to reduce costs everywhere : –Distribution - direct connections to all market channels –Operating - simplify business processes –Passenger handling - efficient self service solutions Now, more than ever, IT is the critical enabler of change

4 E Commerce | 21 Sept 2005 Airline costs Easy cost reductions: Commission caps Reduce paper tickets Reduce GDS fees Promote self service

5 E Commerce | 21 Sept 2005 Relative % costs of sales channel Every airline in the world has cost reduction as its number 1 priority 100% 86% 38% 26% Travel agent booking via GDS Via online agentVia airline online call centre Direct online

6 E Commerce | 21 Sept 2005 Key Airline Priorities 1.Reduce distribution costs by providing direct connections to all channels to market 2.Reduce operating costs by simplifying business processes 3.Reduce the cost of passenger handling through efficient self service solutions 4.Maximise Yield with optimised pricing Achieve your own e-commerce and customer self service vision

7 E Commerce | 21 Sept 2005 Priority projects Web booking and Self Service –Enable your own internet sales and service vision Electronic ticketing –Airlines stand to save $3 billion p.a. –Elimination of fraud and lost tickets –No need for prepaid tickets Fares Management –Price competitively –Optimise yields –Simplify business processes

8 E Commerce | 21 Sept 2005 Agenda A challenged industry Real world E Commerce The road to success Building blocks of E Commerce Case Study Summary

9 E Commerce | 21 Sept 2005 Doing it right…. Clarity –The banana test…. Simplicity –The right information at the right time –Test - Information – is it relevant ? Trust –That you will deliver value –That you will do what you say you will –That they know where you live !

10 E Commerce | 21 Sept 2005 Clarity and Focus…

11 E Commerce | 21 Sept 2005 Spot the banana …..

12 E Commerce | 21 Sept 2005 Doing it right…. Clarity –The banana test Simplicity –The right information at the right time –Test - Information – is it relevant ? Trust –That you will deliver value –That you will do what you say you will –That they know where you live !

13 E Commerce | 21 Sept 2005 Simplicity in action……

14 E Commerce | 21 Sept 2005 Clear ? Relevant ? Legible?

15 E Commerce | 21 Sept 2005 Doing it right…. Clarity –The banana test Simplicity –The right information at the right time –Test - Information – is it relevant ? Trust –That you will deliver value –That you will do what you say you will –That they know where you live !

16 E Commerce | 21 Sept 2005 Trust in Value

17 E Commerce | 21 Sept 2005 Doing it right…. Clarity –The banana test Simplicity –The right information at the right time –Test - Information – is it relevant ? Trust –That you will deliver value –That you will do what you say you will –That they know where you live !

18 E Commerce | 21 Sept 2005 Confidence inspiring? Gateway Timeout The proxy server did not receive a timely response from the upstream server. Reference #1.12e7b3f fe0431

19 E Commerce | 21 Sept 2005 Agenda Real world E Commerce A challenged industry The road to success Building blocks of E Commerce Case Study Summary

20 E Commerce | 21 Sept 2005 E Commerce pitfalls Inefficient E Commerce operation –Solutions the customer cannot or will not use n Compromised by host system limitations n No visitors and huge look/book ratio –Cannibalisation of high yield business n Downward price spiral n Alienation of travel agency channel n Business travellers switching to cheaper options –eCommerce operational costs get out of control n Excessive marketing spend, analysis paralysis n Poorly focussed service development (no ROI) n Over-engineering (technology overkill) –The organisation is not aligned n No coherent E-Commerce strategy n No understanding of the values and costs Missed opportunities to maximise return on investment Organisation unable to adapt to E Commerce needs A consulting led approach to build a strategy that works

21 E Commerce | 21 Sept Barriers To Organisational Change Motivation for change Other Priorities & Resources Investment Momentum Programme communications Deployment Logistics Complexity It is not necessary to change. Survival is not mandatory --W. Edwards Deming

22 E Commerce | 21 Sept 2005 Bringing about beneficial change Business transformation Service strategy & design Change management Technology Service design Product positioning Online strategy Airline strategy Website & supporting systems design User experience optimisation, based on reservation system capabilities Determine products & services for each online market segment How to use eCommerce to support the airline strategy Fundamental business objectives Online service design

23 E Commerce | 21 Sept 2005 Implementing an effective e-commerce strategy A compelling case for change inspires at both a rational and emotional level Change will be compelling if it is driven by the business strategy…. …provides opportunities for those involved. Personal wins Personal losses Future vision Current This is where we want to be..has a sound financial rationale and…. Benefits Costs

24 E Commerce | 21 Sept 2005 Positioning and IT strategy Market positioning Opportunity analysis IT strategy study Requirement definition Market positioning Opportunity analysis IT strategy study Requirement definition Systems definition Functional specification Architecture design Technology evaluation Existing systems audit Functional specification Architecture design Technology evaluation Existing systems audit Identify commercial strategy Devise compatible IT strategy Requirement analysis Architecture design and technology evaluation Detailed specification Development planning and sizing Development management and rollout Implementation support Project planning System sizing Project management Project oversight Project planning System sizing Project management Project oversight Stages of consultancy Implementing an E-Commerce IT solution

25 E Commerce | 21 Sept 2005 Strategy brings results Online bookings from 4% to 42% in 18 months Without the middleware it would probably have taken 2 to 3 times as long Best Travel/Tourism website at the annual Netguide Web Awards Easy access to flight and holiday information Great interactivity An easy to use site with highly relevant searches so we don't waste time Good online pricing

26 E Commerce | 21 Sept 2005 The benefits of best of breed, best practice VLM eCommerce Started with generic GDS booking engine Switched to SITA eCommerce platform with best practice online sales approach 3% online sales (2003) increased to 17% (2004) and still growing strongly Online eTicket live within 3 weeks of SITA launching Horizon eTicket service

27 E Commerce | 21 Sept 2005 Agenda Real world E Commerce A challenged industry The road to success Building blocks of E Commerce Case Study Summary

28 E Commerce | 21 Sept 2005 Getting the price right…. International pricing How do I get my domestic and international fares priced no matter how complex they may be? Decision support What is the best fare to offer to maximize my yields, and what are competitors doing? Fare management How do I manage my fares, allowing regional decisions yet retaining central control? Fare distribution How do I distribute my fares to global pricing systems quickly & cost effectively? eCommerce shopping How do I power my point of sale applications to drive sales while cutting the cost of distribution? Airfare Insight Decision supportFare management Airfare Data Automated distribution Airfare Price Next generation pricing Airfare Shop Airline focussed shopper

29 E Commerce | 21 Sept 2005 Technologies that exploit competitive knowledge Track competitors pricing strategy and yield management to see what they are really selling & respond View of competitive fares offered and available on a route for given period Spot opportunities to raise fares while still remaining cheaper than your key competitors View of competitive fares by market, carrier, etc as soon as they are published Graphical view of volume and type of fare changes filed by your competitors Observe and respond to competitive fare filings in your key markets

30 E Commerce | 21 Sept 2005 Technologies that attract and keep the customer SITAs solution for shopping based on fares and availability information –The Airfare shopper services provide key features to allow the airline to tune its pricing and products by channel –Selected shopper functions are available via green screen for agent and call centre use –Cost savings in the drive for efficient online sales Worlds leading multi-host pricing system –A fully next generation system –Very high performance with ultra- fast data loading and diagnostics –Customised by SITA for state of the art US domestic and full international pricing Example calendar showing best prices on available travel dates

31 E Commerce | 21 Sept 2005 Technologies to aid fulfillment Electronic Ticket Database SITA DCS & Reservations SITA Airfare & Ticketing GDS Ground Handlers Airlines GDS Airlines PNR & ITCI Links Available for all airline direct and indirect distribution channels Support all usage levels –Sales and services –722h Interactive and Control –Host and Handling Agents Industry leading solution 100% electronic ticketing by December IATA

32 E Commerce | 21 Sept 2005 Agenda Real world E Commerce A challenged industry The road to success Building blocks of E Commerce Case Study Summary

33 E Commerce | 21 Sept 2005 AMTRAK.COM QUIK-TRAK KIOSKS Amtrak - integrated Self Service A single self-service platform WEB and Kiosk 10,000 bookings a day 200+ Kiosks Sales, Ticketing, updates, loyalty Designed visually and physically disabled customers Full Service WEB based kiosk

34 E Commerce | 21 Sept 2005 In summary Self service and E Commerce can be easy levers for cost control Drive from business objectives, not IT Business implementation is critical Clarity, Simplicity and Trust are vital Remember the Banana test

35 E Commerce | 21 Sept 2005 Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat. (Sun Tzu)

36 E Commerce | 21 Sept 2005 …in co-operation with our partner


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