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3 Program Agenda1Industry Perspective and Oracle Solution Overview AAdvantage: Business Viewpoint The Siebel Loyalty Journey: Project Overview The Siebel Loyalty Journey: Drivers for Success Q&A2345
4 The Airline Industry Is In The Midst of a Transformation Industry consolidation and global expansionMove to new aircraft (A380, B787, 737MAX)Unbundling of the travel productNew distribution modelsMobility everywhereFocus on customer experienceJenny Odell , 104 Airplanes
5 Loyalty Programs Are Transforming As Well April 17, 2017Loyalty Programs Are Transforming As WellCost Centers -> Profit CentersMiles -> PointsCo-branded credit cardsHigher Prices Higher AccrualsVariable RedemptionsNo blackout dates or space limitsReplace pix
6 Customer Experience and Loyalty April 17, 2017Customer Experience and LoyaltyLEARNENGAGERETAINLoyalty Programs Offer A Framework to Drive The Customer ExperienceReplace Pix
7 Powering Next Generation CX with Siebel Loyalty Enabling personalized experiences through the travel lifecycleSiebel Loyalty provides key insights on AAdvantage members: status, preferences, loyalty transactionsMarketing Cloud and Siebel Loyalty enable targeted campaigns and improved marketing ROISales Cloud leverages customer/corporate analytics to drive corporate and alliance salesSocial Cloud enables monitoring of customer sentiment and increased engagement across the travel lifecycleService Cloud and Siebel Loyalty enable personalized customer serviceBigDataCX HubPSS DataCustomer ViewName, Address, PreferencesLoyalty TransactionsLoyalty Insights
8 The AAdvantage Story The industry’s first loyalty program Needed to upgrade aging loyalty platformMulti-year cross-enterprise initiative – successfully deliveredLargest implementation of Siebel Loyalty
9 AAdvantage® Business Viewpoint Lisa Welch April 17, 2017AAdvantage® Business Viewpoint Lisa Welch
10 The New American Airlines April 17, 2017The New American AirlinesMerger between American Airlines and US AirwaysWorld’s largest airline by ASMs and RPMs*$40BB annual revenue2Q14 profit of $1.5B, a record for any Quarter in the company’s historyPer Day6,700 flightsto 330 destinationsin 54 countriescarrying 530,794 passengers*available seat miles and revenue passenger miles
11 AAdvantage is a Key Asset Founded in 1981First airline frequent flyer programFocused on earn, burn and Elite recognition2014 (and 2013) Program of the Year & Best Elite ProgramOver 70 million members7,000 daily enrollments250 users handling 6,000 daily callsHundreds of air and non-air partnersAbout 200 billion miles earned and redeemed each year
12 Reciprocal Member Benefits Single Operating Certificate The Path We’re TravelingMergerCloseReciprocal Member BenefitsUS Joins oneworldCombined FFPSinglePSSOpenWorldVentana LaunchJoint CodeshareSingle Operating Certificate
15 Relax in nearly 40 Admirals Clubs and 18 US Airways Clubs
16 Technology is the Enabler April 17, 2017Technology is the EnablerSiebel Loyalty provides:Intuitive user interfaceImproved ability to innovateGreater agilityAllowing AAdvantage to:Enhance user experienceIntegrate with Dividend MilesImprove speed to marketABC123
18 Technical Drivers 3 tier Real time Consolidate Labor Force April 17, 2017Technical Drivers3 tierMove from mainframe to 3 tier architectureReal timeReduce dependency on batch processesConsolidateReduce application clutter for call centerLabor ForceImproved supply of skilled IT laborDisaster RecoveryImprove solutionMDMImplement Customer MasterOur 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 themOur 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 SystemDeveloped from ‘90-94With 70MM accounts and hundreds of partners22 real time interfaces249 DB2 tables and 1,000+ unique batch processesTypical Day:MMs aa.com/ mobile lookups150k+ flight postings23k awards claimed7k enrollmentsOthersReplace AATMS/ACS Apps with SiebelFully integrate into broader environmentBuild platform to streamline future initiatives around the program, social and mobile concepts1) Overall go through numbersNote: Diagram illustrative, not a complete list of components
20 Guiding Principles Minimally invasive Agile Min Cutover Risk April 17, 2017Rapid take down of AATMSPlatform transformation firstMinimally invasiveAbstract change where possibleAgileCo-creation of system with BU and SIMin Cutover RiskSuccess meant customers were not awareFocused Development ApproachUse feature out of the boxIf flows different but result the same, change business processElse customizeNo Daylight Between UsStrong team dynamics as important as technical progressRip 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 marketHow 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 Functionality7 environments, 97 servers27 Iterations, 1103 stories130 batch integrations comprised of 750 filesMigrated 2.2B data recordsCutover well executed per detailed planBasically 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 vendorsCognizantAAdvantage Product Owners – responsibility for requirements and managing enterprise business changes/trainingLoyalty IT & Infrastructure – overall architecture, infrastructure, management of vendors, schedule, financial and risks. Coordination with over 40 IT teamsKey vendors – software, hardware, consulting (eg. Oracle ACS, HP legacy AATMS team)Cognizant – lead system integrator tasked with Siebel architecture, configuration, batch development and QA
24 Agile Delivery Hybrid Training Communicate Planning Adapt Numbers April 17, 2017HybridSupport Onshore / Offshore ModelTrainingEnsure all teams following same methodsCommunicatePromote open & frequent information sharingPlanningKeep all the teams in sync and remove roadblocksAdaptApply learnings from retrospectivesNumbers327120HybridAA Product Owners at onsiteProxy Product Owners from Cognizant owned coordination with offshore teamsDevelopment & QA at offshoreHybrid agile tailored for AA in an onsite offshore modelWe had 5 separate iteration development teams at the height to support the software factory modelTrainingEveryone participated in training customized for this effortWe wanted everyone on the same pageCommunicationWe had a very open communication model – This was probably the hardest change for our offshore development teamsThe open communication model extended across the program from executive sponsors to extended partners to each team memberAt 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 wellPlanningKeeping all the teams and interdependencies required us to constantly plan ahead as well as review upcoming activitiesAdaptWe conducted regular post iteration and post release retrospectivesIdentified 3-5 improvements we could focus on and apply improvementsThe Numbers3 week iterations24 number of iterations over 6 releases120 offshore resources24
25 Drivers for Success Engagement Communication People Process Tools April 17, 2017EngagementBusinessITSystems IntegratorStakeholdersCommunicationOpenFrequentDetailedFormal & InformalPeopleRolesSkillsCommitmentProcessManagementExecutionAgileToolsAutomationAcceleratorsAgileEngagementMajor driver of success was that people really were engaged from leadership throughout the program ranks, the Sneetch factorCognizant BA’s met with senior AA leadershipBusiness was actively engaged including dedicated product owners and part time SME’sWe really worked as one team with members from different groups throughout AA and including partnersCommunicationTo maintain engagement good communication is requiredAll communications were open and detailedExamples of our communication activities included:Regular project related meetings (Planning, Status, User Story Reviews, Demos, Retrospectives, etc.)Regular stakeholder and extended stakeholder updatesOnshore / offshore daily callsRegular visits to Cognizant offshore teams by Business and ITExchange programs where people from Cognizant came and worked onsite for weeks at a time and AA people spent extended time at Cognizant facilities in IndiaInformal 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 potlucksHoliday events and celebrationsBaby showers etc.PeopleGetting the right people in the right roles with the right skill sets and time commitment required constant attentionThe program needs changed over the lifecycle and different roles and skills were required. We had to plan the timing and impactStaff the team and empower peopleBe willing to change the organization to meet program objectivesProcessWe 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 effortWe monitored the execution of our processes to ensure they were optimum for meeting our objectivesWeToolsQA automation 20-25%Development accelerators and prebuilt routinesAgile tools including:Release planningIteration planningUser story managementUser story scoringEtc25
26 Key Challenges Balance the workload Technical Complexity Transparency April 17, 2017Key ChallengesCoordinationKeeping all the moving parts in syncBalance the workloadKeeping the “engine” runningTransparencyAgile model was new for many developersTechnical ComplexityInterdependency with other systemsChallengesCoordinationMaking sure each team provided what the other team needed on a timely basisBreaking down user stories to manageable sizes while still providing the capabilities other teams neededWe had a desire to address the most complicated user stories first however so many of them required base capabilities to be established firstTiming 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 effortBalance the workloadAfter ramping up we needed to keep a steady pace of user story elaboration and finalization for allocating to the appropriate development iterationAt 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 iterationTransparencyAgile requires transparency and our development teams were not accustomed to the level of transparency speaking directly with business usersThey 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 rateTechnical ComplexityData migration was huge the mapping and migrating of data was not overly complex but managing the volumes required complex monitoring processes be createdLoyalty 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 thisPerformance tuning due to sequencing of jobs and processes required more technical approaches and time than originally estimated26
27 Lessons Learned Ops Transition User Transition Continuous QA AnticipateAllow ample timeUser TransitionAdoption curveTransparency & prioritizationContinuous QAAutomationMove leftOpennessStabilizationProcess & approachTimingBatch AutomationConsider totalityIdentify outliersReverse engineerStory OrderBuild foundationIdentify dependenciesPrioritizeInspect and AdaptProcessesTrackingStaffingTransition to OpsPlan for operation support capabilitiesUser TransitionAHT transitionDefect and issue transparency and business prioritizationVisible to everyoneShow warts and celebrate successesContinuous QAAutomate regression testingMove testing earlier into the requirements and development stages, QA participate in user story elaborationStabilizationThink about process before transitioning to the stabilization phaseEnsure business participationStabilization takes longer than anticipatedNeed to manage expectations across the entire organizationUnderstand good-enough vs perfectBatch AutomationView, plan, and develop batch automation in totality. Understand how the individual parts fit together before developing individual scriptsIdentify those outlier batch jobs that have an impactAnticipate that some of the functional requirements will be embedded into legacy batch jobs that no one is fully aware of all the detailsStory OrderStart with foundational to validate processesBuild core capabilitiesIdentify and plan for story independenciesPrioritize user stories and plan to address complex user stories earlyInspect and AdaptWhatever we did today is better than yesterdayApply learnings from the retrospectivesTalk about demo’s – got offshore teams involvedStaffing governance and managementOracle expert services reviews early to improve development practices