Presentation is loading. Please wait.

Presentation is loading. Please wait.

American Airlines AAdvantage®:

Similar presentations

Presentation on theme: "American Airlines AAdvantage®:"— Presentation transcript:

1 American Airlines AAdvantage®:
Insights from the Siebel Loyalty Journey Sundar Swaminathan, Oracle Lisa Welch, American Airlines Rob Morris, American Airlines Tom Woodson, Cognizant September 29, 2014 This is a Title Slide with Picture slide ideal for including a picture with a brief title, subtitle and presenter information. To customize this slide with your own picture: Right-click the slide area and choose Format Background from the pop-up menu. From the Fill menu, click Picture and texture fill. Under Insert from: click File. Locate your new picture and click Insert. To copy the Customized Background from Another Presentation on PC Click New Slide from the Home tab's Slides group and select Reuse Slides. Click Browse in the Reuse Slides panel and select Browse Files. Double-click the PowerPoint presentation that contains the background you wish to copy. Check Keep Source Formatting and click the slide that contains the background you want. Click the left-hand slide preview to which you wish to apply the new master layout. Apply New Layout (Important): Right-click any selected slide, point to Layout, and click the slide containing the desired layout from the layout gallery. Delete any unwanted slides or duplicates. To copy the Customized Background from Another Presentation on Mac Click New Slide from the Home tab's Slides group and select Insert Slides from Other Presentation… Navigate to the PowerPoint presentation file that contains the background you wish to copy. Double-click or press Insert. This prompts the Slide Finder dialogue box. Make sure Keep design of original slides is unchecked and click the slide(s) that contains the background you want. Hold Shift key to select multiple slides. Apply New Layout (Important): Click Layout from the Home tab's Slides group, and click the slide containing the desired layout from the layout gallery. Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

2 This is a Safe Harbor Front slide, one of two Safe Harbor Statement slides included in this template. One of the Safe Harbor slides must be used if your presentation covers material affected by Oracle’s Revenue Recognition Policy To learn more about this policy, For internal communication, Safe Harbor Statements are not required. However, there is an applicable disclaimer (Exhibit E) that should be used, found in the Oracle Revenue Recognition Policy for Future Product Communications. Copy and paste this link into a web browser, to find out more information.   For all external communications such as press release, roadmaps, PowerPoint presentations, Safe Harbor Statements are required. You can refer to the link mentioned above to find out additional information/disclaimers required depending on your audience.

3 Program Agenda 1 Industry Perspective and Oracle Solution Overview AAdvantage: Business Viewpoint The Siebel Loyalty Journey: Project Overview The Siebel Loyalty Journey: Drivers for Success Q&A 2 3 4 5

4 The Airline Industry Is In The Midst of a Transformation
Industry consolidation and global expansion Move to new aircraft (A380, B787, 737MAX) Unbundling of the travel product New distribution models Mobility everywhere Focus on customer experience Jenny Odell , 104 Airplanes

5 Loyalty Programs Are Transforming As Well
April 17, 2017 Loyalty Programs Are Transforming As Well Cost Centers -> Profit Centers Miles -> Points Co-branded credit cards Higher Prices  Higher Accruals Variable Redemptions No blackout dates or space limits Replace pix

6 Customer Experience and Loyalty
April 17, 2017 Customer Experience and Loyalty LEARN ENGAGE RETAIN Loyalty Programs Offer A Framework to Drive The Customer Experience Replace Pix

7 Powering Next Generation CX with Siebel Loyalty
Enabling personalized experiences through the travel lifecycle Siebel Loyalty provides key insights on AAdvantage members: status, preferences, loyalty transactions Marketing Cloud and Siebel Loyalty enable targeted campaigns and improved marketing ROI Sales Cloud leverages customer/corporate analytics to drive corporate and alliance sales Social Cloud enables monitoring of customer sentiment and increased engagement across the travel lifecycle Service Cloud and Siebel Loyalty enable personalized customer service Big Data CX Hub PSS Data Customer View Name, Address, Preferences Loyalty Transactions Loyalty Insights

8 The AAdvantage Story The industry’s first loyalty program
Needed to upgrade aging loyalty platform Multi-year cross-enterprise initiative – successfully delivered Largest implementation of Siebel Loyalty

9 AAdvantage® Business Viewpoint Lisa Welch
April 17, 2017 AAdvantage® Business Viewpoint Lisa Welch

10 The New American Airlines
April 17, 2017 The New American Airlines Merger between American Airlines and US Airways World’s largest airline by ASMs and RPMs* $40BB annual revenue 2Q14 profit of $1.5B, a record for any Quarter in the company’s history Per Day 6,700 flights to 330 destinations in 54 countries carrying 530,794 passengers *available seat miles and revenue passenger miles

11 AAdvantage is a Key Asset
Founded in 1981 First airline frequent flyer program Focused on earn, burn and Elite recognition 2014 (and 2013) Program of the Year & Best Elite Program Over 70 million members 7,000 daily enrollments 250 users handling 6,000 daily calls Hundreds of air and non-air partners About 200 billion miles earned and redeemed each year

12 Reciprocal Member Benefits Single Operating Certificate
The Path We’re Traveling Merger Close Reciprocal Member Benefits US Joins oneworld Combined FFP Single PSS OpenWorld Ventana Launch Joint Codeshare Single Operating Certificate

13 Earn and redeem miles on either airline

14 Enjoy select elite benefits on both carriers

15 Relax in nearly 40 Admirals Clubs and 18 US Airways Clubs

16 Technology is the Enabler
April 17, 2017 Technology is the Enabler Siebel Loyalty provides: Intuitive user interface Improved ability to innovate Greater agility Allowing AAdvantage to: Enhance user experience Integrate with Dividend Miles Improve speed to market ABC123

17 Ventana Program View Robert Morris

18 Technical Drivers 3 tier Real time Consolidate Labor Force
April 17, 2017 Technical Drivers 3 tier Move from mainframe to 3 tier architecture Real time Reduce dependency on batch processes Consolidate Reduce application clutter for call center Labor Force Improved supply of skilled IT labor Disaster Recovery Improve solution MDM Implement Customer Master Our legacy system AATMS was solid but the world was moving on, we needed a robust platform that had a web front end, data schemas, pre made business logic components that would enable faster development. World is faster and demand for more real time processing is there. Certain changes to real time from batch would improve customer service and potentially revenue. Mainframe system was also coupled with a decent visual basic interface for the call center but there a lot of missing functionality that caused reps to rely on non integrated home grown apps, other sources of information such that Alt Tabbing was a key skill for them Our core group of AATMS resources were highly skilled but by 2011 there were only 6 of them. If we wanted to transformational changes or support parallel change at a certain volume, we were bottlenecked. Moving to Commercially Available SW vs our custom app allowed us to get more skilled resources from the marketplace. We wanted to improve our recovery time/recovery point and with our mainframe set up we were quite limited. We have many systems that need customer profile information (name, address, ). With Ventana we could also move data as source of record from the loyalty program to our customer hub.

19 The Loyalty Ecosystem Replace AATMS/ACS Apps with Siebel
Legacy System Developed from ‘90-94 With 70MM accounts and hundreds of partners 22 real time interfaces 249 DB2 tables and 1,000+ unique batch processes Typical Day: MMs mobile lookups 150k+ flight postings 23k awards claimed 7k enrollments Others Replace AATMS/ACS Apps with Siebel Fully integrate into broader environment Build platform to streamline future initiatives around the program, social and mobile concepts 1) Overall go through numbers Note: Diagram illustrative, not a complete list of components

20 Guiding Principles Minimally invasive Agile Min Cutover Risk
April 17, 2017 Rapid take down of AATMS Platform transformation first Minimally invasive Abstract change where possible Agile Co-creation of system with BU and SI Min Cutover Risk Success meant customers were not aware Focused Development Approach Use feature out of the box If flows different but result the same, change business process Else customize No Daylight Between Us Strong team dynamics as important as technical progress Rip n’ Replace strategy – get the loyalty stuff our members depend on now right first, transform the program once on the new platform. Don’t increase scope, abstract change, just because something could be made better don’t put it in scope. For our service clients we focused on as best as we could keeping the WSDLs intact, for our batch partners we kept them on same file formats where we could. Corralary – if it ain’t broke, don’t fix it. Agile is a must, the locus of system knowledge was not just on IT and user adoption by call center was a key risk for us. Through iterative revelation of the developed product we had best chance of hitting the mark. Also, with Agile, we needed to hold our launch date sacred. From the beginning, we had heard of other implementations taking long outages, that was not something we could afford with AAdvantage and so we began with end in mind and from RFP we were soliciting thinking on cleanest way to cutover. Just because something worked a certain way in AATMS, didn’t mean we were going to make Siebel work like AATMS. Also too much customization carries more risk during upgrades and can reduce time to market How we worked as a team was also a delivery item. Team dynamics and how well we clicked was an output. we knew we had to be a strong team throughout the long development cycle, through go live and into the months of stabilization afterwards. If we did it right, we would have a stronger relationship with the BU, not a weaker one.

21 Ventana: Replacing 23 years of Loyalty System Development in 23 Months
Functionality 7 environments, 97 servers 27 Iterations, 1103 stories 130 batch integrations comprised of 750 files Migrated 2.2B data records Cutover well executed per detailed plan Basically AATMS was started in 1990 and been built up over 23 years as the program evolved. We wound up replacing in 23 months or in other words having Siebel allowing us to squash one year of dev into one month for this system replacement. When we were done it was big and the cutover went well. There were challenges: incomplete work, defects expected and unexpected, slips moving into controlled operations but the team was strong and worked well to triage and solution.

22 Division of Labor AAdvantage Business Unit Loyalty IT & Infrastructure
Key vendors Cognizant AAdvantage Product Owners – responsibility for requirements and managing enterprise business changes/training Loyalty IT & Infrastructure – overall architecture, infrastructure, management of vendors, schedule, financial and risks. Coordination with over 40 IT teams Key vendors – software, hardware, consulting (eg. Oracle ACS, HP legacy AATMS team) Cognizant – lead system integrator tasked with Siebel architecture, configuration, batch development and QA

23 Implementation View Tom Woodson

24 Agile Delivery Hybrid Training Communicate Planning Adapt Numbers
April 17, 2017 Hybrid Support Onshore / Offshore Model Training Ensure all teams following same methods Communicate Promote open & frequent information sharing Planning Keep all the teams in sync and remove roadblocks Adapt Apply learnings from retrospectives Numbers 3 27 120 Hybrid AA Product Owners at onsite Proxy Product Owners from Cognizant owned coordination with offshore teams Development & QA at offshore Hybrid agile tailored for AA in an onsite offshore model We had 5 separate iteration development teams at the height to support the software factory model Training Everyone participated in training customized for this effort We wanted everyone on the same page Communication We had a very open communication model – This was probably the hardest change for our offshore development teams The open communication model extended across the program from executive sponsors to extended partners to each team member At the kickoff, the business executive sponsor shared the Dr Seuss Sneetches story and challenged us all to be one team. It’s one of the things we did well Planning Keeping all the teams and interdependencies required us to constantly plan ahead as well as review upcoming activities Adapt We conducted regular post iteration and post release retrospectives Identified 3-5 improvements we could focus on and apply improvements The Numbers 3 week iterations 24 number of iterations over 6 releases 120 offshore resources 24

25 Drivers for Success Engagement Communication People Process Tools
April 17, 2017 Engagement Business IT Systems Integrator Stakeholders Communication Open Frequent Detailed Formal & Informal People Roles Skills Commitment Process Management Execution Agile Tools Automation Accelerators Agile Engagement Major driver of success was that people really were engaged from leadership throughout the program ranks, the Sneetch factor Cognizant BA’s met with senior AA leadership Business was actively engaged including dedicated product owners and part time SME’s We really worked as one team with members from different groups throughout AA and including partners Communication To maintain engagement good communication is required All communications were open and detailed Examples of our communication activities included: Regular project related meetings (Planning, Status, User Story Reviews, Demos, Retrospectives, etc.) Regular stakeholder and extended stakeholder updates Onshore / offshore daily calls Regular visits to Cognizant offshore teams by Business and IT Exchange programs where people from Cognizant came and worked onsite for weeks at a time and AA people spent extended time at Cognizant facilities in India Informal communications included: Outside activities (one of the big ones we got a lot of mileage out of was a dance video we created) Happy Hours and potlucks Holiday events and celebrations Baby showers etc. People Getting the right people in the right roles with the right skill sets and time commitment required constant attention The program needs changed over the lifecycle and different roles and skills were required. We had to plan the timing and impact Staff the team and empower people Be willing to change the organization to meet program objectives Process We spent the first 90 days of the project doing planning, fine tuning our processes and executing them in two actual development iterations. This was worth the time and effort We monitored the execution of our processes to ensure they were optimum for meeting our objectives We Tools QA automation 20-25% Development accelerators and prebuilt routines Agile tools including: Release planning Iteration planning User story management User story scoring Etc 25

26 Key Challenges Balance the workload Technical Complexity Transparency
April 17, 2017 Key Challenges Coordination Keeping all the moving parts in sync Balance the workload Keeping the “engine” running Transparency Agile model was new for many developers Technical Complexity Interdependency with other systems Challenges Coordination Making sure each team provided what the other team needed on a timely basis Breaking down user stories to manageable sizes while still providing the capabilities other teams needed We had a desire to address the most complicated user stories first however so many of them required base capabilities to be established first Timing of calls and interactions between the onsite and offshore teams so that we had participation by all of the right people required a lot of effort Balance the workload After ramping up we needed to keep a steady pace of user story elaboration and finalization for allocating to the appropriate development iteration At first the teams tried to treat each iteration as a short development project were the norm was for most of the work effort to be at the end of the iteration, this could have led to team burn out and exhaustion as we immediately went into the next iteration Transparency Agile requires transparency and our development teams were not accustomed to the level of transparency speaking directly with business users They were not used to the client seeing unfinished product “our approach was to develop and demonstrate then do formal QA” After the initial challenge and the teams got used to the approach we had one of the most engaged development team and the lowest turnover rate Technical Complexity Data migration was huge the mapping and migrating of data was not overly complex but managing the volumes required complex monitoring processes be created Loyalty touched so many different areas in so many different ways we often broke previous developed functionality when we added a connecting component. Automated and detailed regression testing helped identify this Performance tuning due to sequencing of jobs and processes required more technical approaches and time than originally estimated 26

27 Lessons Learned Ops Transition User Transition Continuous QA
Anticipate Allow ample time User Transition Adoption curve Transparency & prioritization Continuous QA Automation Move left Openness Stabilization Process & approach Timing Batch Automation Consider totality Identify outliers Reverse engineer Story Order Build foundation Identify dependencies Prioritize Inspect and Adapt Processes Tracking Staffing Transition to Ops Plan for operation support capabilities User Transition AHT transition Defect and issue transparency and business prioritization Visible to everyone Show warts and celebrate successes Continuous QA Automate regression testing Move testing earlier into the requirements and development stages, QA participate in user story elaboration Stabilization Think about process before transitioning to the stabilization phase Ensure business participation Stabilization takes longer than anticipated Need to manage expectations across the entire organization Understand good-enough vs perfect Batch Automation View, plan, and develop batch automation in totality. Understand how the individual parts fit together before developing individual scripts Identify those outlier batch jobs that have an impact Anticipate that some of the functional requirements will be embedded into legacy batch jobs that no one is fully aware of all the details Story Order Start with foundational to validate processes Build core capabilities Identify and plan for story independencies Prioritize user stories and plan to address complex user stories early Inspect and Adapt Whatever we did today is better than yesterday Apply learnings from the retrospectives Talk about demo’s – got offshore teams involved Staffing governance and management Oracle expert services reviews early to improve development practices


29 Quarter In Review

Download ppt "American Airlines AAdvantage®:"

Similar presentations

Ads by Google