web 2 business proposal for brisbane airport

7/21/2019 Web 2 Business Proposal for Brisbane Airport

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Web 2.0 Business Improvement Proposal 1

Web 2.0 Business Proposal for Brisbane Airport

by

Alex Y Lim


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Executive Summary

Few businesses are as diversified in scope and far-flung in reach as an airport or air

terminal service provider (Dreiling, 2012), whether managed as a government-run

operation or by a privately-held management team. The Brisbane Airport exemplifies the

latter and faces vast opportunity to achieve a wider market patronage through a more

intensive Web 2.0 or Enterprise 2.0 presence.

Web 2.0 started out as social online experience at the individual level in the early

part of the 21st

century and has become a staging platform for promoting business

objectives to a global market that has embraced Web 2.0 as integral to how commerce is

undertaken today. A privately managed international airport that servers more than 20

million arriving, departing and transiting air travelers is a diverse business concern that

can benefit from being close to its stakeholders through the social wonders of Web 2.0

online experience. With no more than an $60,000 investment as proposed herein, the

Brisbane Airport can tap into the Web 2.0 social media powers to achieve greater

economies of marketing, closer relationships with its customers, and achieve wider brand

awareness that traditional marketing can only dream about. Over a 12-month period, the

proposal will strengthen the airports social media presence with a second social

networking site, a presence in blogosphere and a stab at YouTube marketingall of which

can provide not only a more intimate relationship with its stakeholders, customers and

business partners, but open up the potential to have added revenue streams from business

referrals made from these social sites.


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Table of Contents

Executive Summary .............................................................................................................. 21 Introduction ................................................................................................................... 42 Current Situation ........................................................................................................... 5

2.1 The Brisbane Airport Corporation (BAC) .............................................................. 5Ownership ......................................................................................................................... 62.2 Web 2.0 Business Implications .............................................................................. 62.3. Web 2.0 in BAC ..................................................................................................... 82.4 Business Needs Analysis ...................................................................................... 10

3. Web 2.0 Solution Proposal .......................................................................................... 153.1 Description ........................................................................................................... 15

3.1.1 Identified Business Drivers ........................................................................... 173.1.2 Objectives ...................................................................................................... 18

3.2 Cash Flow Analysis .............................................................................................. 19

3.2.1 Projected Benefits ......................................................................................... 193.2.2 Anticipated Project Implementation Costs ................................................... 203.2.3 Cash Flow Analysis ...................................................................................... 21

4 Proposed Project Management .................................................................................... 224.1 Statement of Work ................................................................................................ 224.2 Key Project Assumptions and Constraints ........................................................... 23

4.3 Project team composition and organization ...................................................... 234.4 Work Breakdown Structure and deliverables per milestone ................................ 24

4.4.1 Activity duration ........................................................................................... 254.5 General Project performance metrics ................................................................... 26

4.5.1 Project Milestone Metrics ............................................................................. 27

4.5 Communication Plan ............................................................................................ 28References ........................................................................................................................... 30Appendices .......................................................................................................................... 33

Annex A: Statement on Collaborative Efforts in the Developing the Proposal............. 33Annex B: Work Breakdown Structure elements ............................................................ 36


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1 Introduction

Web 2.0 is the term that defines a broad range of computing experience for the

consumer that is revolves around the social dimension of online users. It is not a specific

update to browsing the World Wide Web such as what IP 6.0 does to the internet

networking protocol. Rather, it describes a 21st century online experience that goes

beyond mere web browsing. The internet is not more than just a mere source of

information but has taken on a computing platform that harnesses broadband

telecommunications and several online technologies to bring a level of interactivity and

collaboration between users online, broadening the implications of online computing into

the business and socio-political landscape (Swabey, 2008). Dale Dougherty ofORielly

Media is credited for having coined the Web 2.0 term back in 2004 to simply put a title

that would best describe an OReilly media conference (Musser & OReilly, 2008). Since

then, the term has stuck to describe an online experience that transcended a mere trend for

social networking in Facebook and Twitter, blogging with Tumblr and Googles

BlogSpot, and media content sharing in YouTube, Picasa and Flickr, into a defining

online computing landscape from which there is no turning back.

It is precisely this ease with which content can become viral, reaching a potential

global market as well as the marketing potential of the experience that has not escaped

entrepreneurs who realized early on that Web 2.0 has not only revolutionized the way

people use the internet, but also created a valuable channel to enhancing brand awareness

and reach that traditional advertising could only dream about at tremendous cost to the

business. This proposal looks at improving the operations of a major international airport

the Brisbane Internationalby optimizing its use of a few major Web 2.0 technologies

that can make a profound difference to its business.


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2 Current Situation

2.1 The Brisbane Airport Corporation (BAC)

Considered the 3rd busiest airport in Australia after

Sidney and Melbourne airports, Brisbane Airport (BNE in

IATA code) is the only major passenger air terminal serving

the residents and tourists of Brisbane and suburbs. It has two

runways and two passenger terminals - a domestic terminal

with flights to and from around 46 destinations in the

Australian states and territories, and an international terminal

serving 32 foreign destinations. The 12 months ending in May

2011 saw it serving more than 20 million passengers. The

airport is a one of the major hubs of Virgin Australia where it

has a maintenance facility, and a secondary hub for Qantas and its budget affiliate Jetstar.

Awards

Since the dawn of the 21st century, the Brisbane airport has been the recipient of

various awards starting in 2001 when the Australian Airports Association named it the

Major Airport of the Year. In in the current year, the Australian Competition and

Consumer Association (ACCC) honoured it as the top Australian airport for quality of

service for the 8th consecutive year while Skytrax bestowed on it the Best Regional

Airport Award, following the same awards it got in 2008 and 2009. In 2010, its

international terminal wing received the Queensland architecture award and entered the

18thposition in the list of the worlds top 25 airports while once again being voted by

Skytrax as the "Best Australian Airport (Brisbane Airport, 2012). In 2005, the airport


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earned the IATA Eagle Award, the second of only two airports in Australia to be so

awarded (IATA, 2005),

Ownership

The Australian federal government has privatized several airports and the Brisbane

airport was acquired from the Federal Airports Corporation by a private consortium

consisting of private financial and government interests under the Brisbane Airport

Corporation (BAC) led by Amsterdam Schiphol Airport which currently holds a

management contract for airport on a 99-year lease of the facility.

2.2 Web 2.0 Business Implications

Web 2.0 replaces the traditional view of a website as a channel for disseminating

digital information to browsed and consumed by the user, with one that sees websites as

engaging tools for structured interaction between people and between organizations and

people. Social media is a common, more meaningful alternative term that aggregates a

panoply of Web 2.0 technologies behind blogs, wikis, social networks, social

bookmarking, media file sharing, and news aggregation sites that are constantly evolving

and recombining. The implications for business are numerous and have spawned the term

Enterprise 2.0 for corporations as a counterpart to the consumer-centric Web 2.0. For

starters, Web 2.0 changes the way customers interact with one another and that demands a

change in the way businesses communicate and interact with their markets. A company

website simply used an online product brochure is a wasted opportunity. More progressive

companies are using Web 2.0/Enterprise 2.0 to stimulate discussion and community

awareness around their brand, products and services, and are harvesting invaluable

customer insight as a result.


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The key implication of social media to the business in promoting a closer

relationship between the business and its publicscustomers, government, other

businesses, media, and the general public. For the Brisbane Airport, communication

between these segments of society and the business is made more convneient by the fact

that travel related information (flight arrivals and departures, airport weather and traffic

condition, potential and actual delays, boarding routines, things to do while at the airport,

etc.) can now be accessed from anywhere and at any time, using PCs at home and mobile

devices such as smartphones and laptops with internet access. The same communication

channel can be harnessed using social media marketing over wider market reach

advertising but minus the regular advertising costs.

Brisbane Airport can promote cost effective deals on behalf of airport businessconcessionaires and airlines with an active and far-reaching social media presence.

These could result in added revenues to its business partners open up the option for

the airport to earn sales commission from online bookings and online sales

generated from a redirection of website traffic from its social media pages.

User Awareness once in the airportUsing Wi-Fi technology at the airportpremises that can access a cloud database, passengers arriving thereat can be

prompted to check on their travel requirements such as visas, the rules of what can

be brought with them while on board or their destination, and provide them the

easy channels to post feedback in regards to their travels via mobile gadgets. This

creates a sense on interaction between the organization and the public the airport

serves.

Equally significant as the impact of Web 2.0 on consumers and customers are the

implications for internal collaboration. That workhorse of internal communicationemail

is looking decidedly tired as more effective and more efficient communication and


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collaboration tools devised in the consumer realm work their way into corporate life.,

Because an airport is a mecca for airlines and their businesses (catering, aircraft

maintenance, etc.), along with airport business concessionaires (car hire firms, restaurants,

trade and cultural exhibitors, duty free shops and even health and recreational

establishments), harnessing the social interactive power of Web 2,0 can bring these

internal elements into a more cohesive and productive group acting towards a shared

commitment with airport management as if they as employees of the airport itself.

But some companies appreciate the business value of Web 2.0/Enterprise 2.0 than

others. Companies like Dell and PlusNet use it to learn more about how they can serve

their customers better. Others, like Wachovia Bank and Best Buy use Web 2.0 tools to

help their companies and business partners work together more synergistically with

improved social cohesion (Swabey, 2008). Every Web 2.0 application shows why it is

imperative for the company, particularly its information technology departments to

understand and harness Web 2.0 from a technical and social perspective. By enabling

collaboration and fostering closer relationships with their stakeholders (markets and

publics as well as governments and business partners), Web 2.0 empowers the business to

bring its marketing, customer service and business development activities to better

economies and cost efficiencies.

2.3. Web 2.0 in BAC

The company is open to adapting emerging new technologies in its business

operations. In a press release issued by Cisco (2012), the Brisbane Airport Corporation has

implemented virtualization technology from network solutions provider Cisco, storage

solutions provider EMC and virtualization software provider VMware to strengthen the

company ability to enhance economies of airport operations and customer responsiveness


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through strategies harnessing emergent technologies information and communications

technologies (ICT). But along with this, just exactly how far Brisbane Airport has arrived

in harnessing Web 2.0 or Enterprise 2.0 as a means to further the ends of its business

imperatives is seen by its current social media activities

(Abady, 2012). The BAC has established a relatively wide

social media presence with the following:

Mobile version of official website enabling mobileusers to check flight details using smartphones with

internet access;

Official Facebook page in standard format andlinked to the corporate website

Official Twitter account; and Official Pinterest account

Having said that, the airports social media presence can stand significant

improvements in the way it interact with its customers and airport concessionaires. For

instance, their mobile website version displays flight arrival and departure details.

However, given the fact that over 20 million foreign passengers have used or passed

through the terminal in 2011/12, it should not be that difficult to incorporate a language

selection options for passengers on the existing mobile phone application (see Figure 1).

This is more of a feature enrichment rather than an innovation as most online services

catering to several nationalities generally have some form of language transcription that

can cater to people that do not use English as their first language.

There is currently a gap in marketing infrastructure of Brisbane Airport

Corporation that social networking platforms such as Facebook, blogging and social media

Figure 1: Mobile apps accessing

BAC flight information


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sharing could help close. Facebook can essentially be used like a live wiki for thousands

travellers who are Facebook users who may want to be remain updated by simply clicking

one button and getting linked to the official Brisbane Airport page. The type of

information that the Airport can share on Facebook can be extremely broad, ranging from

quick facts about the airport and say its baggage procedures and limitations to Updates on

the Traffic and congestion troubling the primary routes in and out of the facility.

There is great room for improvement within the relationship and closeness that the

consumers feel towards the airport. Brisbane Airport is a large multi-faced business that

needs to leverage communicative competence in bringing together the disparate business

concession operating within the pre-departure, post-departure and transit experience of

passengers. Using social media to enable the Brisbane Airports marketing strategy could

aid in helping establish a better relationship with the thousands of travellers who use social

networks as well as employees working in the airport. Social networks are all about

crating and sustaining a feeling of connection that keeps users logging in every day or

several times in a day and while the Brisbane Airport has already gained a foothold into

the social media bandwagon, there is ample room to make this presence grow to its

optimum potential.

2.4 Business Needs Analysis

An exhaustive analysis or assessment of business needs is a fundamental

diagnostic process to determine root causes of current problems and situations that can

prepare the company in exploring and evaluating various alternatives in solving these

problems, filling in proficiency or competency gaps or market expectation and real-world

service quality gaps, and addressing the needs that can enable the company to better

achieve its business objectives. For the Brisbane Airport Corporation, the current


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situational analysis using a Strengths, Weakness, Opportunities and Threats (SWOT))

analytical framework has been used to identify the major areas when Web 2.0 can be

harnessed to maximize the companys business potential in its target markets (Weihrich,

1982). In addition, the PESTLE framework which explores in more detail the external

factors can feed right into the opportunities and threats in the SWOT analysis (JISC,

2012). These are the Political, Economic, Social, Technological, Legal and

Environmental factors that may be missed if only the SWOT was used (Thomas et al,

2007).

Table 1: SWOT Analysis

SWOT Areas Assessment

Strengths The Airport is a major domestic and international hub for severalairlines in the Brisbane metropolis serving as a gateway to

Queensland, the region and the world.

BNE is seeing an increase in visitor arrivals going through theairport totalling 1.8 million or an increase in 2.7% year on year asof September 2012 (BNE, 2012).

The company has a relatively strong but static online presencethrough its corporate website atwww.bne.com.auwhere BNE

customers can check on flight information, travel news in

Brisbane, and access information on various travel related topics

while in the airport

The airport has been at the forefront of social media as it recentlybecame the first Australian airport to use Pinterest which has a

reported 8.9 million views in the country in February 2012. This

was it third social network after Facebook and Twitter.

Weaknesses There is no effective internal communication that can link airportmanagement to its business concessionaires (car rentals, duty free

shops, restaurants and lounge operators, airlines booking offices)

Opportunities Web 2.0 technologies have yet to be fully harnessed;
http://www.bne.com.au/http://www.bne.com.au/http://www.bne.com.au/http://www.bne.com.au/


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A stable and growing national economy that portends a sustainedrecovery from the global recession as evidenced by recent

increases in passenger arrivals in the airport

Threats The airport has little competition in the area other than those thatfunction as alternate or feeder airports such as Sunshine Coast.

Gold Coast, Toowoomba, Ballina/Byron Gateway and Lismore

airports.

Table 2: PESTLE Analysis

PESTLEelements

Factors

Political Healthy business relationships exist between the company and localBrisbane authorities as well as commercial firms engaged in

concessionary business within the airport premises.

Economic Strong macroeconomic fundamentals with rising GDP andimproving unemployment rate ensure a local economy slowly

recovering from the onslaught of the global recession over the last

three years.

5.1% unemployment rate as of 2011, improving slightly from the5.2% registered in 2010. But among the youth sector (aged 15-24)

unemployed stood at 11.6% during the same period. (Index Mundi

2012).

Brisbane is experiencing modest but stable growth in visitorarrivals which totalled 1.8 million for a year on year increase of

2.7% year as of September 2012 (BNE, 2012a).

Social The airport has a thriving list of business concessions such as carrentals, restaurants and shops that together serve passengers while

going through the airport.

It has a growing involvement in social networking groups such asFacebook, Twitter and recently joined Pinterest dedicated for online

users who love or enjoy air travel (BNE, 2012b).


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Technological Strong internal IT infrastructure and development support for in-house application systems using existing computing and database

platforms

There is a growing social media penetration rate among internetusers and this can be harnessed more fully by the company

Cloud computing which is a form of IT outsourcing when usedfrom a 3rd party provider is emerging as the new way of supporting

the business for improved economies of scale that effectively makes

unnecessary the traditional continuous investments in hardware and

software during system upgrades (Hogan, 2008).

Legal Copyright violations increase with user-generated content in Web2.0 (Ingram. 2010). The issues revolve around managing user-

developed or collaborated content and ensuring that the copyright of

others is not infringed in the process. This often requires a more

conscientious monitoring of critical social media content like

images, music and video whose owners are known to enforce

copyright ownership rights.

Social media often comes with personal information as in the caseof user profiles and photos in social networks and face the potential

risk that such information are used without securing explicit

permission from their owners. Web 2.0 implementors will have to

exercise more diligence and care about protecting the privacy of

individuals. (Thomson, 2008).

Web 2.0 content risks being compromised by malicious users whomay post pornographic, licentious, hateful or racially derogatory

materials. Constant monitoring of the site can prevent such

materials from defacing the site.

Environmental The company has not highlighted its greening or eco-friendly effortsto general more support from greening enthusiasts among its

passengers. Further studies will be conducted in this area to

identify areas for improvement and inclusion as an airport feature

for its social media marketing efforts.


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3. Web 2.0 Solution Proposal

3.1 Description

The online experience generated by the Web 2.0 phenomenon for consumers and

Enterprise 2.0 for business takes advantage of several technologies that have emerged over

the last decade most prominent of which is the increasing affordability of broadband

internet telecommunications, and the ease with which online media content can be

generated by ordinary users. This has effectively transformed cyberspace from merely a

static browsing experience into a media-rich collaborative computing experience that truly

empowers its users (Blue Coat, 2011; McAfee, 2010).

The technologies behind the Web 2.0 trend covers social networking (Facebook,

Google+, MySpace, etc. where interaction between friends, colleagues and acquaintances

create a social dimension to the online experience), Wikis (collaborative engagement

online allowing users to share and edit content), blogs (participative engagement that

allows users to assess and appraise content presented by individuals or groups online for

specific focused topics), and media content sharing such as YouTube where user can share

multimedia content (Thomson, 2008) that has made YouTube a search engine second only

to Google in terms of being the most frequently visited site for online search purposes

(Stokes, 2012). Other technologies include podcasting, news alerts, and social

bookmarking but for purposes of this proposal, not all technologies are proposed as being

suitable for a company that is just starting to create a social media presence. The business

proposal recommends the following:

1. Blogging is proposed as a complement to social networks and its website extendthe interactive communication reach of social media, enabling companies to

benefit from market feedback and insights that take the place of commissioned


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expensive market research works to improve their merchandise and services. , and

widen the brand awareness of the company and potentially convert online traffic

into more sales revenues (KISSmetrics, 2012). Blogs create a venue for real-world

experiences on products and services that companies can capture freely and has

grown to become a global pastime among online users with more than 110 million

blogs as of 2008 and growing (Mayfield, 2008).

2. YouTube marketing using short videos about the company and itsaccomplishments, news and ongoing projects that can immensely improve the

online search presence of the company. YouTube is the 2nd largest search engine

on the internet with an estimated 100 million videos viewed each day (Mayfield,

2008; Skwire & Teppema, 2012). Half of YouTubes 300 million worldwide users

access the site at least once a week making 2.8 billion searches monthly (Stokes,

2012). Posting videos about Brisbane Airport and its role in the tourism and

business travel industry as well as related news can take advantage of this reach as

a more cost effective advertising model

3. Enhance and fine-tune the companys social networking presence by creating anddeveloping a Google+ social networking presence to complement its Facebook

account. With the Google BlogSpot/Blogger presence incorporated into it, this

social media presence is expected to promote and further widen the brand

awareness of the services provided by the airport. Over the last 10 months after its

inception in June 2011, Google+ has shown phenomenal growth outpacing that of

Facebook and twitter with 170 million active users (Gonzales, Cuevas, Rejale &

Cuevas, 2012), and as of reaching its first birthday in July, Google announced the

site has 250 million users (Olander, 2012).


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4. Harness the revenue earning potential of social media marketing by takingadvantage of the social behaviour of users. For instance, every Facebook user

brings with him an estimated 120 friends and colleagues on average (KISSmetrics,

2012). This potential information cascading opportunity for a product or service

endorsement has not escaped savvy marketers to generate a positive down line

awareness that fosters the marketing potential of advertising in social networks

(Leskovec, Adamic, and Huberman, 2006). 78% of consumers prefer the

recommendations in social networks which gives social media a significant

advantage over traditional advertising models (KISSmetrics, 2012), making social

media the darling among advertisers and marketers. In this regard, the BAC can

harness this social behaviour to make product and service endorsements for its

business concessionaires and airline operators in the airport premises.

3.1.1 Identified Business Drivers

The following factors have been identified as key drivers in further enhancing the

BAC social media presence by harnessing popular and innovative Web 2.0 technologies

for both its external and internal stakeholders (passengers or commuters, and employee /

consignees).

Harness the communicative powers of social media and its reach in creating andsustaining and wider awareness about the role of Brisbane Airport to its

passengers, surrounding communities, the government and to the countrys tourism

programs. The business concessionaires at the Brisbane Airport can benefit from

have a shared access to a common communication platform with which they can

access information that can benefit them, the airport and the passenger going

through the terminal. For instance, coordination can be made between airlines and

airport managers to ensure flight times and passenger turnout are communicated


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through alerts on smartphones and laptops of concerned parties to ensure that

enough manpower can man car rentals, food concessionaires and baggage

handlers. In times of emergencies, coordination can be instant as information can

be updated and immediately accessible to every stakeholder.

While the current social media presence is not meant to generate additionalrevenue streams directly, but more as a tool to improve communication between

the company and its publics, there is the potential for social media to generate

direct income through commissions in the sale of products and services that have a

presence in the airport premises.

3.1.2 Objectives

The project aims to establish a more robust and active Web 2.0 computing

environment for the Brisbane Airport Corporation with the following specific objectives:

Objective Outcome Measure

Optimizemarketing

communications

potential through

a wider social

media presence

Use of Google+ for a widersocial networking presence that

can be harnessed for marketing

and PR purposes

User base to exceed 30,000within the first 6-8 months from

launch

Creation of blog sites to engage

the public to actively share

comments and suggestions on

company products and services

At least 12 active blog feedback

per day after the 4th month of

implementation

Creation of a more intense

YouTube marketing presence thatcan replace advertising spend on

tradition print and broadcast

media

Generate no less than 20,000aggregate views for thecorporate video materials

posted in YouTube within the 6

months of launch; and

Reduce advertising placementspend on TV and print by 40

% within the same period.

Augment revenue

stream through

online sales

commissions from

Signed contract with business

concessionaires to provide a 2%-

5% commission on sales

generated from local and

Incremental sales of $100,000

for the first year of operation

with a conservative 15%

increase every year thereafter.


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airport

concessionaires

international traffic to their

websites directed from any social

media site of Brisbane Airport

3.2 Cash Flow Analysis

3.2.1 Projected Benefits

The proposed Web 2.0 enhancement to the business is expected to generate

benefits that are qualitative and quantitative n natures with primary and secondary benefits

in each as shown in Table

Table 3: Project benefits

Qualitative Quantitative

Enhancing social media presence

Primary Wider reach of information about

the airport, local aviation news, its

plans and project and other matters

that concern the passengers going

through the airport.

Fewer passenger inquiries at the

airport on flight schedules, airport

taxes, documentation

requirements, etc. since these are

now available online

Secondary Better market perception about thecompany, further boosting the

goodwill of the airport name

driven by its constant

communication with its passengers

and stakeholders,

Increased user base for socialnetworking sites for the airport

Augment revenue stream through online sales commissions

Primary Enhanced e-commerce value for

the website and social media

presence

Generate commission sales

revenues of at least $100,000 with

a 15% annual increase

Secondary Foster better business relationships

with airport concessionaires

Retention of high value business

concessionaires with no more at

least 10% increase in their

aggregate sales the airports social

media referrals.


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3.2.2 Anticipated Project Implementation Costs

Assumptions

No additional manpower is needed for the project or in the implementation itself;current staff handling the social medial activities will be involved in the project

and additional internal users will be harnessed to ensure that market feedback from

social media sites are responded do even outside of office hours. To these end,

several units of iPads will be provided to them as initial equipment that will enable

them to engage in social media concerns even at home.

Technical specifications for PC Tablet (Apple iPad2) purchases will be validwithin 6 months from submission of this proposal. Hence immediate purchase is

recommended as soon as possible considering the high obsolescence rate of these

devices in the

Tablets for key personnel to maintain

the proposed s ocial media presence

24x7 (30 units of iPad2 units at $530

each (1)

15,900 15,900

Allowance for Software licences for

standard Apple iOS and apps (at an

estimated $300 per iPad2 unit)

9,000 9,000

Social media upkeep sunk cost 0

3rd Party Consultancy Service 12,000 12,000

Project Manager sunk cost 0

Training (allocation) 10,000 10,000

Collaborative Online Service freeware 0

46,900

Contngency (20%) 9,380

Total Year 1 Cash Out 56,280

(1)Reduced Apple iPad2 prices as of March 2012, based on Engadget site at

http://www.engadget.com/2012/03/07/apple-drops-ipad-2-price-to-399/

Planned Budget

($)

Web 2.0 Project

Project Management

Total

Project Cash Out (Year 0)Hardware

Software

licensingPeople Consultant

Table 4: Estimated project cost components


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market, usually in 8-14 months.

Exchange rates and inflation rates will remain relatively stable throughout theproject duration with no more than 5% fluctuation.

Purchase prices are valid within three months of this proposal.3.2.3 Cash Flow Analysis

This proposal assumes an incremental increase of 15% of commissions revenues

resulting from online purchases of items from visits directed or emanating from a visit to

any of the Brisbane Airport social media sites. The current base income is also assumed to

be $100,000 which has been conservatively estimated. In the absence of a company

preferred a weighted average cost of capital (WACC), the cash flow analysis used the

prevailing average of 7.05% for several markets as calculated by Damodaran (2012).

From this assumption, a cash flow analysis on Table 5 clearly shows that the

project will pay for itself in less than for years based on a discounted payback period

computation. It has positive NPV and its IRR exceeds the current cost of capital (7.05%

rounded out in the table presentation), both indicative of project that has acceptable

business value for the company. The revenue assumption will have to be validated after

the first year, but this quantitative assessment can be insignificant compared with the

Cash Flow Analysis

Current

Year

Years 0 1 2 3 4 5

Investment 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 commiss ion 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

Table 5: Cash flow


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qualitative value of achieving a wider communication reach among the companys

stakeholders that the proposed Web 2.0 technologies promise.

4 Proposed Project Management

4.1 Statement of Work

Over a period of 12 months, the project team will implement the various web-

based technologies to enable the company to harness the Web 2.0 or Enterprise 2.0

computing platform and create the application web experience for its customers. The Web

2.0 umbrella project covers the following:

(1)Blogging: Using Googles BlogSpot/Blogger, create blog sites to provide closerinteraction between customers and the company.

(2)Improve Facebook presence: Fine-tune the corporate Facebook presence to presentthe company products and services, news and industry developments, as well as

customer feedbacks to create a positive impression that the company values its

markets.

(3)Create Google+ social networking presence that incorporates its blogospherepresence for optimum market reach and ability to extract passenger feedback and

reaction to airport services provided by the company

(4)Implement YouTube Marketing. Develop short 10-30 second advertising andadvertorial content about the company products and services, history and

programs, people profiles, and other relevant materials that can be used to promote

the company name and thus create branding preference.


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4.2 Key Project Assumptions and Constraints

The project will have the following assumptions and constraints or limitations:

The project team members are stakeholders in the organization and will be directlyinvolved in operating and using the proposed Web 2.0 computing technologies as

proposed for at least 3 years from the successful implementation of the project

The system vendor (s) in the supply chain for the project will cease to operateduring the system implementation.

The implementation will result in the decommissioning of the various existingcomputing systems that are replaced throughout the companys operations.

Project funding may be increased within 20% as approved by the project sponsor The project has a 12-month timeframe, ending on or before 10 December 2013. The project deliverable will comply with approved policies of the company where

applicable unless otherwise rescinded for purposes of accommodating any new

procedural requirement as may arise from its implementation.

4.3 Project team composition and organization

It is recommended that the project team be constituted as multi-disciplinary multi-

departmental team with members coming from marketing, public relations, direct

customer-facing operations and IT departments. There will be a collective ownership of

the project with tasks that are spread among these stakeholders. The project will follow the

standard project management team organization which calls for a division of labour within

the team. Figure 2 illustrates the organization structure with members from the

organization and representatives from an IT consultant or vendor who can work with the


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Figure 2: Project team organization chart

Support

Direct

Leadership

System Documentation Specialist (2)

IT Consultant / VendorRepresentatives (1)

IT Department Representative(1)

Blogging DevelopmentLead 1

Public RelationsLead (1)

Media ContentLead (1)

Project Manager (1)

Staff (3) Staff (3)

Project Steering Committee

(Heads of Operations, Finance, IT and other invitedcorporate decision makers and stakeholders)

Staff (3)

team to guide it in both technical and functional areas. In addition, there is a need to

activate or create an oversight body such as steering committee that can provide high

management support for the project in terms of project funding, strategic change

management approvals, and status monitoring to ensure that the project is completed as

expected.

4.4 Work Breakdown Structure and deliverables per milestone

Table 6 summarizes the projects milestones and their respective deliverables.

Table 6: Project WBS milestones and deliverables

WBS Task Name Deliverables

1 Approve ProjectApproved project budget and signed

contract with consultant

2 Create project team Complete project team

3 Acquire Tablets (ipad2 or equivalent) Trouble free iPad2 Tablets4 Develop and activate Google + Activated BAC Google+ site


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5Create and activate commissions-basedrevenue sharing in BAC website

Enhanced website for commission-based

revenue streams

6 Create and activate YouTube Account At least 12 15 YouTube video content

7 Activate Blogging presence Activated BlogSpot site8 Turnover project to operations Project Completion with user sign-off

4.4.1 Activity duration

Table 7 shows a high level activity Gantt chart for the milestone tasks calculated

from MS Project and summarized using MS Excel worksheet for this paper. The project

WBS details are in Annex B. This proposal aims to start the project after the Christmas

holiday rush and the second week of January 2013 is the target start. The project is

expected to last until the first week of December 10`3, just before the holiday season, with

a cumulative contingency of plus or minus 20 days to accommodate delays in any of the

milestone tasks.

Table 7: Project milestone task duration high level Gantt chart

Months

1 2 3 4 5 6 7 8 9WBS 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

equivalent)92 days Tue 1/22/13 We d 5/29/13

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

5Create and activate commissions-

based revenue sharing in BAC75 days Thu 5/30/13 We d 9/11/13

6Create and activate YouTube

Account70 days Thu 5/30/13 We d 9/4/13

7 A ctivate Blogging pre se nce 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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4.5 General Project performance metrics

The proposed Web 2.0 business improvement project will have performance metrics

that quantitatively assess the performance of the team, individually and collectively by the

Project Manager or in tandem with existing work performance measures implemented by

the company HR department. But the basic measures will include meeting budgets,

deadlines, and the planned or anticipated quality and quantity of deliverables. These

metrics include the following:

Table 8: Project performance metrics

Areas Metrics

Team

Performance

Attendancenot more than 10% lost time within a week due toaggregate tardiness or absences in any project activity that

includes presentations, staff meetings, and engagements with 3rd

party suppliers and corporate departments. This translates to no

more than 2 days unplanned absence in a month. Any tardiness

is recorded and compensated for by leaving late for home. This

is expected to maximize the members utilization in the project.

100% compliance with computing security standards. Thisrequires the use of automatic screen blanking or screensaver,

computer lockout, and auto log out from the company network

as well as the use of secure VPN (Virtual Private Network) when

telecommuting. This ensures security of user data, significantly

reducing the risk of anyone eavesdropping into member PC

when not around.

Quality of

deliverables

100% compliance with the objectives set for each planneddeliverable.

No more than10% error rate in data accuracy, syntax, spellingand diction in generating reports for internal and external use.

Time Management

Performance

Deadlines of project deliverable to be met 90% of the time. The5% instance when deadlines are not met should not exceed more

than 20% of the allocated time for the task to be completed. This

means that a two-day delay can be tolerable in a 20-day task

duration, provided that the down line task that depends on the

delayed task will not be severely penalized by the delay.

Towards this end, the tasks have built-in slacks as contingency

for unplanned events that could cause a delay. Every effort must

be done to ensure that down line tasks can absorb delays in a


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previous tasks to which they depend.

Cost Performance Not more than 10% cumulative budget overrun for the entireproject budget as initially approved. This ensures a tight reign

over project expenses to ensure the project will not go overboardunless absolutely demanded to complete a project deliverable.

Nevertheless, any unplanned upward cost adjustments will

require approval by the steering committee.

Ethical Conduct 100% compliance with workplace ethics as defined by HR. Zero complaints from external stakeholders (higher

management, consultants and suppliers) on ethical conduct or

behaviour of team members, shortfalls in expected commitments

and deliverables, on time start of meetings, etc.

Zero incidence of misdemeanors resulting in local police orcourt action. Zero complaints from fellow team members about violent,

intimidating, abusive or generally offensive behaviour.

4.5.1 Project Milestone Metrics

Each milestone will be marked with a status progress report to be provided to the

project sponsor or the project steering committee. The metrics of each milestone differ

based on the expected deliverables as indicated in Table 9. Some of the metrics, such a

signed contract are essentially the main deliverables expected in a milestone and their

availability on the expected date will comprise a positive metric result for the team.

Table 9: Milestone Metrics

WBS Task Name Metrics

1 Approve ProjectProject budget as planned and signed contract with

consultant on the committed date

2 Create project team Complete project team members

3 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 task

5Create and activate commissions-basedrevenue sharing in BAC website

On-Time completion of task

6 Create and activate YouTube Account On-Time completion of task

7 Create and activate blogging presence On-Time completion of task

8 Project turnover to users

Complete user confidence through a sign-off on

committed date


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4.5 Communication Plan

The project will generate regular project status reports as well as generate

summaries for fulfilment reports from 3rd party vendors and consultants, both of which

will be presented to project stakeholders consisting of project sponsors, management and

team members with the objective of ensuring a smooth flow of information that is needed

by them for appropriate action or fore purely informational purposes. Towards this end,

communications channels shall be supported by both tradition channels such as No project

can be implemented with any success unless the results and anticipated problems in the

project are communicated clearly within the group and to its external stakeholders such as

project sponsors in higher management (Charvat, 2002).

Table 10: Communications Project Plan

Information Author Frequency

Key

Audience

Action

(I,C,A) Communication Channel

Project status and

deliverables report

Project

Manager

Weekly

andMonthly

Steering

Committee, Teammembers

I,C Presentation in regular

meeting via PowerPoint,emailed document orthrough shared documentaccess in Google Docs.

Vendor deliveryreport

Vendor As Needed Project Manager I,C Emailed document orthrough shared documentaccess in Google Docs.

Issue and problemlog and resolution

ProjectManager, ERPVendors

Monthly oras required

SteeringCommittee,DepartmentsHeads dependingon the nature of

issues to be resolve

I,C Emailed document orthrough shared documentaccess in Google Docs

Contingency andRisk MitigationPlan

ProjectManager

Start ofproject andwith newrisksidentified

Project Sponsor,V{ Finance, HRDirector, ITDirector andTeam members

C,A Emailed document orthrough shared documentaccess in Google Docs

Project teamperformanceassessment

ProjectManager

WeeklyandMonthly

HR Head andto each teammember

I,C Weekly staff meeting

Actual vs. Budgetexpense report

AccountingHead

Weekly,Monthly,

Project Manager I,C Weekly staff meeting


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Information Author Frequency

Key

Audience

Action

(I,C,A) Communication Channel

Internal policy and

standards changerecommendations

Project

Manager

As required Steering

Committee

A Reposited in Google Docs

for online access

Request foradditional budget

ProgramManager

As required Project Sponsor A Special presentation toSteering Committee withadvanced emaileddocumentation

Key: I: Information only; C: For review and comments; A: For review and approval


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Appendices

Annex A: Statement on Collaborative Efforts in the Developing the Proposal

The project called for developing a suitable Web 2.0 proposal for the Brisbane

Airport and required input in the following areas: (1) a background on Web 2.0, (2) brief

about Brisbane Airport and its current situation, (3) the proposed solution, and (4) the

project management. The three members of the team were assigned specific areas without

exclusivity and all of them collaborated to improve any area or all areas in the paper.

Toward this end, the team used Google Docs which allowed them to share information in

the form of PDF, JPG images and MS Office files for sources, but more importantly,

provided a collaborative editing platform where members can download, edit and re-

upload the paper in progress.

The website provided ready accessibility through the latest versions of Internet

Explore and Firefox as the teams preferred browsers for desktop PCs and laptops. In

addition, one team member used an Android smartphone to check and view the latest

revised documents while another used an iPad (with Safari browser) to view the

documents and PDF files used for references. All the team members have Gmail addresses

which already gave them access to Google Docs. The free use of Google Docs had a limit

of 5 GB for uploaded files which was more than was needed considering that the proposal

document only ate less than 1 MB, while the sources and drafts in the directory occupied

less than 1 GB in total. In addition 10 concurrent users were allowed which was just fine

since the team only had three members.

The initial proposal draft served as the master draft that was uploaded in Google

Docs using the team leaders account for private use with the team members authorized to

access the document for offline concurrent editing. File version numbers were the most


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important aspect in the current work in Google Docs or any collaborative editing tool so

that any other members will immediately recognize the status of the document he or she

was working on and who made the last changes. Google Gears which alerted the

document owner for changes was not used. Instead, team members updated the document

offline and re-uploaded them using a file naming convention representing the latest

updates to the master draft as follows:

File naming convention Description

BAC_1.0 BAC: The main filename for the Brisbane Airport

Corporation proposal master draft.1.0: Main file version number as drafted by the teamhead and uploaded in Google Docs to be worked on bythe team members.

BAC_1.1_Drew 1.1: File version number incremented as a second levelafter a partial revision done by a team member andupload back to Google Docs

Drew: Name of the team member who made changes orrevisions to the file

BAC_1.1.2_Elise 1.1.2: If the revision made in 1.1 was further edited orchanged by another team member, in this case by Elise,

then a third level version number is appended. In theexample, there were already two revisions made on the1.1 version to become 1.1.2.

BAC_2.0 2,0: Incrementing the main file number means that theteam head has edited the latest draft containing thevarious updates made by the team members and re-uploaded to Google Docs for another round of review or,if no changes are made, are accepted as the final versionof the document

A team member was free to proofread and edit any part of the paper and uploaded

the edited paper according to the described file naming convention described. While each

member has a responsibility for certain parts of the paper, this was not exclusive and any

member could edit or improve on any part of the paper. Google Docs significantly

facilitated and hastened the completion of the proposal and while there were initial minor

problems, it was just a matter of referring to the help guides to get it right and using offline


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editing so as not to complicate the learning process when using the sites realtime online

editing features. A member simply texted the other members over the cellphone when an

update was uploaded.


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Annex B: Work Breakdown Structure elements

Using MS Project Management, the Work Breakdown Structure was developed to arrive at

a realistic task duration and timeline that can be used to generate a Gantt chart and a

Critical Path in the application. The MS Project file can is attachedhere.

WBS Task Name Duration Start Finish

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

1.1

Present project plan to steeringcommittee and secure working approval(budget and team)

10 days Mon 1/7/13 Fri 1/18/13

1.3 Sign contract with consultant 1 day Mon 1/21/13 Mon 1/21/131.2

Create project accounting elements forexpense accounting

1 day Mon 1/21/13 Mon 1/21/13

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

2.1 Finalize shortlisted team candidates 15 days Tue 1/22/13 Mon 2/11/13

2.2 Select and process team members 5 days Tue 2/12/13 Mon 2/18/13

2.3 Present team to management 1 day Tue 2/19/13 Tue 2/19/13

2.4Conduct bonding sessions among team

members10 days Wed 2/20/13 Tue 3/5/13

2.5Brief team members re project details,

expectations and responsibilities5 days Wed 3/6/13 Tue 3/12/13

2.6Train team members on Web 2.0

technologies40 days Wed 3/13/13 Tue 5/7/13

3 Acquire Tablets (ipad2 or equivalent) 92 days Tue 1/22/13 Wed 5/29/13

3.1Define and finalize technical

specifications for purchase order10 days Tue 1/22/13 Mon 2/4/13

3.2Disseminate requests for tenders or

negotiate terms with accredited suppliers30 days Tue 2/5/13 Mon 3/18/13

3.3

Identify users to be assigned a tablet forsocial media engagement outside of officehour.

10 days Wed 4/10/13 Tue 4/23/13

3.4 Process supplier payment 10 days Tue 2/5/13 Mon 2/18/133.5

Receive and distribute iPads toauthorized users

15 days Tue 2/19/13 Mon 3/11/13

3.6Conduct tests on Social media access

from Tablets11 days Wed 5/15/13 Wed 5/29/13

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

4.1Define media content requirements in

Google+10 days Thu 5/30/13 Wed 6/12/13

4.2 Create account and develop site 30 days Wed 5/8/13 Tue 6/18/13

4.7Develop media content or re-use

existing content from Facebook15 days Wed 6/19/13 Tue 7/9/13

4.3 Identify persons authorized to accessand administer the site

5 days Wed 7/10/13 Tue 7/16/13
http://c/Users/Alex/Documents/Articles_writersph/Web%202.0%20Bsuiness%20Improvement%20proposal%2074830947/Task%20Duration.mpphttp://c/Users/Alex/Documents/Articles_writersph/Web%202.0%20Bsuiness%20Improvement%20proposal%2074830947/Task%20Duration.mpphttp://c/Users/Alex/Documents/Articles_writersph/Web%202.0%20Bsuiness%20Improvement%20proposal%2074830947/Task%20Duration.mpphttp://c/Users/Alex/Documents/Articles_writersph/Web%202.0%20Bsuiness%20Improvement%20proposal%2074830947/Task%20Duration.mpp


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4.8 Initiate and conduct tests of site 7 days Wed 7/17/13 Thu 7/25/13

5Create and activate commissions-based

revenue sharing in BAC website75 days Thu 5/30/13 Wed 9/11/13

5.1Identify business concessions for sales

commissions as referred by BAC site 15 days Thu 5/30/13 Wed 6/19/13

5.4Negotiate commission rates as

applicable30 days Thu 6/20/13 Wed 7/31/13

5.2Create and develop website for sales

referrals10 days Thu 8/1/13 Wed 8/14/13

5.3Activate online automatic payment

systems5 days Thu 8/15/13 Wed 8/21/13

5.5 Test commission revenue online system 15 days Thu 8/22/13 Wed 9/11/13

6 Create and activate YouTube Account 70 days Thu 5/30/13 Wed 9/4/13

6.3Identify authorized users to update

YouTube

5 days Thu 5/30/13 Wed 6/5/13

6.2Develop video content based on ad

materials and archive60 days Thu 6/6/13 Wed 8/28/13

6.4 Test video functionalities 5 days Thu 8/29/13 Wed 9/4/13

7 Activate Blogging presence 72 days Thu 5/30/13 Fri 9/6/13

7.1Create and develop blogging account in

Blogspot12 days Thu 5/30/13 Fri 6/14/13

7.2 Develop unique text and media content 30 days Mon 6/17/13 Fri 7/26/13

7.3Create initial blogging content and

engagement with market feedbacks30 days Mon 7/29/13 Fri 9/6/13

8 Turnover project to operations 62 days Thu 9/12/13 Fri 12/6/138.1 Conduct omnibus system test 15 days Thu 9/12/13 Wed 10/2/13

8.2Conduct user training for each social

media channel as necessary45 days Thu 10/3/13 Wed 12/4/13

8.3Present final project accomplishment

report1 day Thu 12/5/13 Thu 12/5/13

8.4 User acceptance 1 day Fri 12/6/13 Fri 12/6/13