Two main airlines in Korea Member of Star Alliance Won many awards and ranked 5-star

International oil price and KOSPI Korean won-US dollar exchange rate High oil price and Immediate jump exchange rate Global financial crisis and economy depression In 2008,

BI Business Intelligence Computer- based techniques Identifying data Extracting data Analyzing data

Data Warehouse Comparing reservation data Inspecting reservation demand Providing reservation service to customer

Firm infrastructure construct and amplify from RMS to ARMS with BI Human resources management motivating stewardess with CDP(Career Development Path) and performance management system Technology development develop IT with computer reservation system, construction of VPN(Virtual Private Network) and establishment of Asiana IDT Procurement construct ACTS(Asiana Cargo terminal system) and win a gold award of airline procurement Inbound Logistics Asiana IDT apply RFID(Radio Frequency Identification) to be more accurate Operations adopt FOQA (Flight Operational Quality Assurance) to monitor flight and control quality Outbound Logistics Allocation of stores to service internet shoppers Marketing and Sales With ARMS(Asiana Revenue Management Support System), optimize flight and use seasonal factors Service introduce airplane's spare engine Value added less Cost = Profit margin

Competitive Rivalry within an industry Korean air, Foreign airline companies Threat of New Entrants Low because of a huge entry barrier Bargaining Power of Customers Small because customers have limited choices Threat of Substitute Products Low because airplane is the most fast transportation Bargaining Power of Suppliers Very huge because of a small number of supplier

Reengineering Rethinking and radical redesign Made to an organization's existing resources. It is more than just business improvising. 1) Organize around outcomes, not tasks 2) Have those who use the output of the process perform the process 3) Subsume information-processing work into the real work that produces the information 4) Treat geographically dispersed resources as though they were centralized 5) Link parallel activities instead of integrating their results 6) Put the decision point where the work is performed, and build control into the process 7) Capture information once and at the source Principle of Hammer Use Data warehouse with ARMS Customers register their private profile personally

VC Technology development UAV(Unmanned aerial vehice) Procurement CTS(Cargo Traffic System) and TMS(Terminal Management) RFID(Inbound Logistics-> Service) INT-900H of RFID(keep life jackets) P5CFM Competitive rival within industry Appeal their advantages Bargaining power of suppliers Join hands with suppliers

Overcome rival Successful adoption of IS Apply ARMS with BI