Session 1 “Needs of An Airline to Maintain

Competitiveness in the 21st Century”

Session 2 “A Glance at Airline’s IT”

15 April 2004Lucas Chuang

EVA AIR

Needs of An Airline to Maintain

Competitiveness inthe 21st Century

夢

Happy Employees

Satisfied Customers

Healthy Profits

Vision

“Vision without action is merely a dream. Action without vision just passed time.

Vision with action can change the world.”

--------------- Joel Barker, 1990

Vision Strategy Activities Actions

安全是不能妥協的

Flight Safety

Information Security

Business Continuity Planning

…..

Total Safety

基本的生存條件

Increasing Revenue

Reducing Cost

Improving Operation Deficiencies

人是最大的資產

Staff Careful Selection

Willing to Learn

Ability to Communicate

Right Attitude

Customer Oriented

Business focused

Deadline Driven

Determined to Succeed

Training

How to retain your talent ?

Being Respected

Challenging

Job Satisfaction

Make It a Fun Place

顧客Customer is The King

Must be Customer Oriented

Listening

Understanding

Satisfying

Manage Expectation

Marketing Strategy

BrandMass marketing

ProductDirect marketing

CustomerExpectations marketing

Distribution Channel & NetworkValue Chain – All Win

Alliance PartnershipSupply chain

成本控管討厭 , 但須面對

Airline是一個資本密集的產業受大環境的影響太大微利安全的代價越來越高要求越高的顧客 ,想付的代價越低

如何將固定成本轉變動成本 ?

如何將投資回收期提早實現並加大 ?

如何將成本支出延後及減少 ?

Governing Body

試著去愛她們

航權是國權的延伸Law & Regulations

反恐議題不求特殊待遇 ,但求公平

IT Strategy

Fulfill Business Needs & ExpectationsBusiness & technology integration

Improve Productivity

Create Business OpportunityNew technology

Save Cost

Plug & Play quick IT Solutions

Pay on DemandMaintain your control

“To judge a person by his question rather than his answer”

--------Voltaire

A Glance at Airline’s IT

Characteristics

High Performance

average response time within 3 seconds

High Functions400 + systems

High Availabilitysystem availability >= 99.7 %

Centrally Organized32 Passenger destinations and 44 cargo destinations

Cost Center

IT Priorities and ConcernsSupplier ReliabilityUser SatisfactionPersonnel IT SkillsAlliance IntegrationSelf-service SolutionsInternet BookingDeveloping/Implementing CRMIT Cost ReductionB2C & B2B e-BusinessSecurity

Source : International Air Transport Association (IATA)

Average % of Airline’s total revenue spent on IT 2004

In average : 2.7 %

EVA : 1.1%

Source : IATA

Manpower Allocation

Data Center : 11 %

Management & Administration : 13 %

Application Maintenance : 32 %

Communication & System : 12 %

New Project : 32 %

Challenges

Anti-terrorism

Time to market

Cyber market

Reflect the changes

Vendor Management

Information island

Alliance integration

Create business values with information technology

Our pains

Toss requirements over the wallmoving target

Under-staff

Local SI lack of domain knowledge

Information security

Collaboration with trading partners

Our Response (Burning Points)

Subject Matter Expert (SMT)

Customer Services

Retain IT talent

Outsourcing

Training

Quality Assurance

Decision Support

Information Security Management System (ISMS)

Subject Matter Expert..Middle man of IT and Business

Formalization of the dedicated user support team

Value plus needs the functional authority and business intelligent user

Acquire external industry expertise

Well educate the business user of the related system development methodologies

Customer services.. To identify your customer

.. To maintain the best benefit for your customer

To assign account manager for each business unit, aims to knowing users’ business strategy and development plan

confirm and prioritize annual IT development planregular visit and report

customer satisfaction survey

Retain IT Talent..Employee turnover is expensive..Although money talks, it is not enough to keep key talent within the fold

People stay with you because of

job securityjob satisfactionrelationships with colleaguesprestige and esteemrecognition and carecareer progressiontraining and development. Freedom, opportunity and resource for them to realize their potential

And the most important one……make it a fun place.

Outsourcing..the pressure of time to market..the embarrassing situation of under-staff

The beauty is that you might be able to put yourself in a better position to fulfill your business users’ needs and expectations within the required timeframe by using external resources

But the issues areQuality, Cost & Schedule

So our strategy is work with trusted long term partnersgain controlcost justify

Training.. “What if they stay ?” – a story about training

System ManagementOperation SystemCommunications & NetworkDatabase Management

Software DevelopmentSystem analysis & developmentProgramming

Industry domainUser trainingShadow training

ManagementCompleted Staff WorkProject ManagementTime ManagementForum & LectureLeadership training for pre-manager

External trainingEnglish training

Quality Assurance.. The sooner the defect found the better your quality is

.. QA can reduce your TCO(Total Cost of Ownership)

Dedicated QA team

Testing and configuration & change management over the development lifecycle

Refine ISO SOP

Introduction of testing tool

Decision support.. DRIP (Data Rich, Information Poor) is everyone’s nightmare

.. Optimization is used widely in airline industry

Enterprise Data Warehouse (EDW)

Meta Data Management

Business Intelligence

Operation Research

ISMS.. For the 1st line manager to take the responsibility.. It’s more the risk management.. Nice to have must

User AwarenessInformation Security PolicyInformation AssetRisk AssessmentRisk ManagementAudit