sita customer seminar simplify your business munich, 21 sept 2005 self service and e commerce jim...
TRANSCRIPT
SITA Customer Seminar
Simplify your businessMunich, 21 Sept 2005
Self Service and
E Commerce
Jim Callaghan
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.
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
E Commerce | 21 Sept 2005
Airline costsEasy cost reductions:• Commission caps• Reduce paper tickets• Reduce GDS fees• Promote self service
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 agent Via airline online call centre
Direct online
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
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
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 !
E Commerce | 21 Sept 2005
Clarity and Focus…
E Commerce | 21 Sept 2005
Spot the banana …..
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 !
E Commerce | 21 Sept 2005
Simplicity in action……
E Commerce | 21 Sept 2005
Clear ? Relevant ? Legible?
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 !
E Commerce | 21 Sept 2005
Trust in Value
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 !
E Commerce | 21 Sept 2005
Confidence inspiring?
Gateway TimeoutThe proxy server did not receive a timely response from the upstream server.
Reference #1.12e7b3f.1126172712.fe0431
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
E Commerce | 21 Sept 2005
E Commerce pitfalls Inefficient E Commerce operation
– Solutions the customer cannot or will not use Compromised by host system limitations No visitors and huge look/book ratio
– ‘Cannibalisation’ of high yield business Downward price spiral Alienation of travel agency channel Business travellers switching to cheaper options
– eCommerce operational costs get out of control Excessive marketing spend, ‘analysis paralysis’ Poorly focussed service development (no ROI) Over-engineering (technology overkill)
– The organisation is not aligned No coherent E-Commerce strategy 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
E Commerce | 21 Sept 2005
8 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
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 capabilitiesDetermine products &
services for each online market segmentHow to use eCommerce
to support the airline strategyFundamental
business objectivesO
nline service design
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
Personallosses
Future vision
Current This is where we want to be
..has a sound financial rationale and….
Ben
efitsB
enefits
Co
stsC
osts
E Commerce | 21 Sept 2005
Positioning and IT strategyPositioning and IT strategy
Market positioning
Opportunity analysis
IT strategy study
Requirement definition
Market positioning
Opportunity analysis
IT strategy study
Requirement definition
Systems definitionSystems definition
Functional specification
Architecture design
Technology evaluation
Existing systems audit
Functional specification
Architecture design
Technology evaluation
Existing systems audit
Identify commercial strategy
Identify commercial strategy
Devise compatible IT strategy
Devise compatible IT strategy
Requirement analysis
Requirement analysis
Architecture design and technology evaluation
Architecture design and technology evaluation
Detailed specification
Detailed specification
Development planning and sizing
Development planning and sizing
Development management and rollout
Development management and rollout
Implementation supportImplementation support
Project planning
System sizing
Project management
Project oversight
Project planning
System sizing
Project management
Project oversight
Stages of consultancyImplementing an E-Commerce IT solution
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”
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
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
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 support Fare management
Airfare Data
Automated distribution
Airfare Price
Next generation pricing
Airfare Shop
Airline focussed shopper
E Commerce | 21 Sept 2005
Technologies that exploit competitive knowledgeTrack competitor’s 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
E Commerce | 21 Sept 2005
Technologies that attract and keep the customer
SITA’s 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
World’s 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
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
E Commerce | 21 Sept 2005
AMTRAK.COM
QUIK-TRAKKIOSKS
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
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
E Commerce | 21 Sept 2005
Strategy without tactics is the slowest route to victory.
Tactics without strategy is the noise before defeat.
(Sun Tzu)
E Commerce | 21 Sept 2005
…in co-operation with our partner