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Web 2.0 BusinessImprovement ProposalBrisbane Airport Corporation (BAC)

Author/Presenter: Alex Y. Lim

Date: 15 October 2012


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Introduction

As the 3rd largest international airport in Australia, BrisbaneAirport serves more than 20 million arriving, departing ortransiting commuters

It is managed privately by Brisbane Airport Corporation or BACon a longer term lease form the government,

The company currently has an online presence with acorporate informational website and a social networkingpresence in Facebook, Twitter and Pinterest.

There is ample room for growth in the optimizing the use ofWeb 2.0 / Enterprise 2.0.


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Agenda

Web 2.0 technologies

Creates platform for interactivity and collaboration

Rides on the Social dimension of internet usage that drives socialmedia marketing

Current BAC Situation

SWOT/PESTLE analysis

Proposal

Enhance social networking

Blogging

YouTube marketing

Project Implementation Plan


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SWOT Analysis

SWOT Areas AssessmentStrengths Major domestic and international hub for several airlines

Visitor arrivals reached 1.8 million or an increase in 2.7% year onyear as of September 2012 (BNE, 2012).

Good static online presence through its corporate website atwww.bne.com.au

First Australian airport to use Pinterest

Weaknesses No effective internal communication linking airport managementto its business concessionaires

Opportunitie

s

Web 2.0 technologies have yet to be fully harnessed; Stable and growing national and local economy that portends a

sustained recovery from the global recession as evidenced byrecent increases in passenger arrivals in the airport

Threats Weak competition in the area other than those that function asalternate or feeder airports such as Sunshine Coast. Gold Coast,Toowoomba, Ballina/Byron Gateway and Lismore airports.
http://www.bne.com.au/http://www.bne.com.au/


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PESTLE Analysis 1

PESTLEelements

Factors

Political Healthy business relationships with local Brisbaneauthorities as well as commercial firms engaged inconcessionary business within the airport.

Economic GDP growth and improving unemployment rateUnemployment at 5.1%, improving slightly from the5.2% registered in 2010(Index Mundi 2012).

Modest but stable growth in visitor arrivals,

Social Thriving list of business concessions working to helpthe airport serve its commuters

Growing involvement in social networking groupssuch as Facebook, Twitter and recently joinedPinterest (BNE, 2012b).


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PESTLE Analysis 2

Technological Strong internal IT infrastructure and development support Growing social media penetration among internet users IT outsourcing through cloud computing becoming te trend in

corporate IT support Virtualization using Cisco, EMC and VMware adopted by the

company

Legal Potential copyright violations with the prevalence of user-generated content in Web 2.0 (Ingram. 2010; Thomson, 2008).

Growing need for protecting personal information in social mediasties (Thomson, 2008)

Web 2.0 content risks being defaced with pornographic,licentious, hateful or racially derogatory materials

Environmental Trend towards green operating conditions growing worldwide Company has not highlighted its greening or eco-friendly efforts

to general more support from greening enthusiasts among itspassengers.


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The Problem

Social media presence needs to be boosted tohave wider reach and interactivity with itsmarket.

Cost savings and more prudent IT spendingconstrains marketing efforts to be moreefficient

No social interaction with businessconcessionaires at the airport


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The Proposal

Implement more active social media channels toachieve greater community awareness andinvolvement (Commuters and business partners) Create Google+ presence to complement Facebook

Start the blogging experience using BlogSpot to complement Google+

Implement YouTube marketing

Improved corporate website and social mediausing tools to generate added revenue streams

through commissions from sales converted fromvisitor traffic to e-commerce sites of businessconcessionaires.


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The Proposal

Initial 30 iPad2 Tablets to enable users (managementand authorized staff) to engage more actively in socialmedia marketing (Total cost plus training $56,280)

No additional cost for manpower as existing staffdedicated to social media marketing will take on amore intensive role even outside of office hours andpremises.


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The Proposal

5-Year Cash Flow analysis

Assumptions:

Commission sales revenues to increment conservatively by 15%

from a projected generation of at least $100,000 for its base year; Cost of capital is 7.1% based on average market interest rates as

of January 2012;

Cost of iPad2 tables based on current prices and is not expectedto move within the next three months;

No additional manpower cost; will user current staff;

Initial cash out to include both one-time iPad2 investment andtraining.


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Cash Flow Analysis

Current

Year

Years 0 1 2 3 4 5Investment 56,280.0

Cost of Capital 7.1%

Incremental Revenue over previous year 10.0% 15,000.0 16,500.0 18,150.0 19,965.0 21,961.5

Sales (15% annual increase from base

year's incremental commission income

of $100,000 ) 15.0% 100,000.0 15,000.0 17,250.0 19,837.5 22,813.1 26,235.1

Cash Flows -56,280.0 15,000.0 16,500.0 18,150.0 19,965.0 21,961.5

Discounted Cash flows -56,280.0 14,012.1 14,398.3 14,795.1 15,202.8 15,621.7

Cumulative Net Cash Flow -42,267.9 -27,869.6 -13,074.5 2,128.2 17,750.0

Discounted Payback Period N/A N/A N/A N/A 3.9 N/A

Net Present value (NPV) 16,581.0

Internal Rate of Return (IRR) 17.43%

Modified IRR (MIRR) 13%

Profitability Index (PI) 0.74

The Proposal

5-Year Cash Flow analysis results:


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The Proposed Project Plan

Constitute an IT Project Steering Committee tooversee the project

Project team members to come from seasoned IT andmarketing staff engaged in social media

Monitor the progress status of the project based on themilestone accomplishments

oStart: January, 2013oCompletion : December, 2013


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Project tasks and respective measures

WBS Task Name Deliverables

1 Approve Project Approved project budget and signed contractwith consultant

2 Create project team Complete project team3 Acquire Tablets (ipad2 or equivalent) Trouble free iPad2 Tablets4 Develop and activate Google + Activated BAC Google+ site5

Create and activate commissions-basedrevenue sharing in BAC website Enhanced website for commission-basedrevenue streams

6 Create and activate YouTube Account At least 12 15 YouTube video content7 Activate Blogging presence Activated BlogSpot site8 Turnover project to operations Project Completion with user sign-off


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Project task duration and high level Gantt chart

Months

1 2 3 4 5 6 7 8 9

WBS Task Name Duration Start Finish

1 Approve Project 11 days? Mon 1/7/13 Mon 1/21/13

2 Create project team 76 days Tue 1/22/13 Tue 5/7/13

3Acquire Tablets (ipad2 or

e uivalent)92 days Tue 1/22/13 Wed 5/29/13

4 Develop and activate Google + 57 days Wed 5/8/13 Thu 7/25/13

5Create and activate commissions-

based revenue sharin in BAC75 days Thu 5/30/13 Wed 9/11/13

6Create and activate YouTube

Account70 days Thu 5/30/13 Wed 9/4/13

7 Acti vate Bl oggi ng presence 72 days Thu 5/30/13 Fri 9/6/13

8 Turnover project to operations 62 days Thu 9/12/13 Fri 12/6/13

Total Approximately 12 months

10 11 12


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Performance metrics will enable the IT Steeringcommittee and the project management to assess

individual and collective performance of theproject team covering:

o Budget and time management

o

Quality of deliverableo Ethical relationships within the team and external offices

o Individual performance standards


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Project milestone metrics

WBS Task Name Metrics

1 Approve Project Project budget as planned and signed contract withconsultant on the committed date

2 Create project team Complete project team members3 Acquire Tablets (ipad2 or equivalent) iPad2 tablets with 0% returns or warranty calls within 12

months.4 Develop and activate Google + On-Time completion of task5 Create and activate commissions-based

revenue sharing in BAC website On-Time completion of task6 Create and activate YouTube Account On-Time completion of task7 Create and activate blogging presence On-Time completion of task8 Project turnover to users Complete user confidence through a sign-off on committed

date


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Conclusion

By the end of 12 months, assuming no significantdelays, the project will have created a stronger and morefocused Web 2.0 operating environment for the companythat makes use of

o Blogging (BlogSpot)

o Social networking on Google+

o YouTube media presence

The proposed project will have paid for itself in less thanfour years with sustained commission sales revenuesfrom social media marketing.


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Thank you

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