Overview

GROUP 5
Overview
Company and Industry Brief
Innovation and Design
Design Process
Financial and Non-financial Impact
Key Learning
Aviation industry sector:

Saturated
Most unprofitable industry @$31.7 billion loss SIA outperformed the
market and maintained an above-average profit margin
Entry of low cost airlines threaten profitability of SIA
High impact of policies and regulations, e.g. excise taxes, airport taxes and fuel price

Brief on company

History: Established in 1947 with Malayan Airways Limited (MAL) and
separated in 1972
Size: more than 60 cities in over 30 countries
Position: A premium carrier with high levels of innovation and service
excellence
Competitive advantage: Service differentiation and cost effectiveness

Premium Segment:
Singapore Airlines,
Air France, Cathay
Pacific
Low Cost Carriers:
Ryan Air, Air Asia,
Malaysian Airlines
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Low Price High
Value for Money:
Emirates, Etihad,
Jet Airways
Positioning Map
Innovation in everything all the time
Leader and
Follower
High Value in Industry
Low cost (Critique-Route expansion)
Follow Up routine; less visibility to Customer POV
User Driven
Unpredictable
High impact on Customers
User Centred
Innovation
Extensive Customer feedback Match high customer expectation
Sell a Lifestyle
Role of User
Role of Design
Focus on cost effectiveness to sustain in the aviation industry-Curbs Regular Radical Innovation

-Design is a primary function used in a structured format
-Engrained in the employees Corporate culture
-Focus on elevating customer experience
-Create Differentiation Advantage
Open Innovation
Products: Cabin seats, Design of
Aircraft, Designing lounges
Closed Innovation
Services: Cuisine and cocktails, In
flight entertainment


Balanced Approach
BMW Design Works and JPA
Designs
Internal product and service
development team
EXTERNAL INTERNAL

Go Green
Focus: Customers need to have a positive impact on the environment
Reduce weight of aircraft to save fuel (Sr.VP)
Trend of e-books and e-magazines


Use Kris entertainment technology


Tested electronic magazines Silver Kris, Kris Shop, Kris world with Singapore
based private company smart aviation paper ltd.
(Patented file compression technology) - iphones sibblings


Repeated within the company to see if it functions well.



Launched 31
st
July 2010 Boeing 777-300 ER (2 flights) followed by A380 (2 flights)

Design Process - 5 phases

Research
Brainstorm
Prototype
Repeat
Deliver
Stages Pre-service Sign Up Service use Service use (cont.) Post service
User
actions
- Awareness of the service

- Create Account
- Buy tickets
- Check into flight
- Manage their Kris flyer
account
- Choose their meal using
SIA book the cook service
- Check flight schedule
- Check in luggage and take
boarding pass
-Wait and take a rest in the
lounge
- Boarding
- Find seats
- Interaction in flight
- Entertainment in flight
- Consume Cuisine and
cocktail in flight


- Get off the plane
- Provide
feedback
- Luggage
collection
- Luggage
loss/other
issues-
Customer
complaint
counter
touch-
points
used by
SIA


- Official website
- Online advertising
(e.g. understanding your
needs)
(e.g. across the world
with the Singapore girl)
- E-newsletter (when
customer sign up with
their email address)
- Social network
(e.g. Facebook/
Twitter/ YouTube)
- Official Website
- Official agent/Ticketing
agency
-Front office
counters/check in
-Information kiosk
- On ground attendants
- SIA - Airport staff



- Greet customers
- Guide to seats
- Security information
- Services provided in
flight (e.g. duty-free
product selling, food
offering)


- Farewell
- Online
feedback
- Points for flight
- Describe
experience on
Social media
- Customer
service centers


Backstage
of SIA
- Marketing strategy
planning
- Staff training
- Digital branding

- Development of
Backend IT infrastructure
for the website
- Maintaining the
commissioned contracts
with ticketing agents
-Communication system
between IT Backend and
KAM for passenger
preferences
- Partnership with booking
websites
- Staff training
- Communication
between airport
authority and staff
- Preps for flight
- Flight attendants
training
- Pilot training
- Flight crew training
- Crew manual

- Aircraft
maintenance
- Maintain
customer
relationship
- Offers and
change in flight
schedules
Design is CRUCIAL and a STRUCTURED EFFORT
Trial and learn from failures
Corporate culture
User centred
Change the meaning of Luxury flying
Maximum focus on elevating
customer experience
Financial Impact
279.8
1011.2
390.2
-694.1
-800
-600
-400
-200
0
200
400
600
800
1000
1200
2010 2011 2012 2013
Net profit after tax
Financial Impact
Timeline
MAR
2013
OCT
2013
DEC
2013
MAR
2014
AUG
2013
NOV
2013
FEB
2014
DestinAsian (Asias leading luxury travel
and lifestyle magazine Jakarta)
Readers Choice Awards (8th time
running)
Best In-flight Entertainment
Best Frequent Flier Programme - Krisflyer
Awards - Mar 2013 to Mar 2014
Timeline
MAR
2013
OCT
2013
DEC
2013
MAR
2014
AUG
2013
NOV
2013
FEB
2014
SmartTravelAsia.Com (Hong Kong)
Best Cabin Service
Awards - Mar 2013 to Mar 2014
Timeline
MAR
2013
OCT
2013
DEC
2013
MAR
2014
AUG
2013
NOV
2013
FEB
2014
Travel+ (China)
2013 China Travel Awards (Joint winner
with Lufthansa)
The Best Inflight Service
Awards - Mar 2013 to Mar 2014
Timeline
MAR
2013
OCT
2013
DEC
2013
MAR
2014
AUG
2013
NOV
2013
FEB
2014
- Saveur Culinary Travel Awards (USA)
Readers Choice Best Inflight Dining (First
& Business Class)
Readers Choice Best Inflight Dining
(Economy Class)
- Business Traveller (China)
Best Service on the Ground and in the Sky
Awards - Mar 2013 to Mar 2014
Timeline
MAR
2013
OCT
2013
DEC
2013
MAR
2014
AUG
2013
NOV
2013
FEB
2014
- Premier Traveler Magazine (US)
Best Economy Class service in the World
Best International Airport Lounges
- Business Traveler USA 2013
Best Overall Inflight Experience in the World
Airline with Best First Class service in the
World
Airline with Best Economy Class Service in
the World
Awards - Mar 2013 to Mar 2014
Timeline
MAR
2013
OCT
2013
DEC
2013
MAR
2014
AUG
2013
NOV
2013
FEB
2014
DestinAsian (Asias leading luxury travel
and lifestyle magazine Jakarta)
Readers Choice Awards (9th time running)
Best In-flight Entertainment
Best Frequent Flier Programme Krisflyer
Awards - Mar 2013 to Mar 2014
Timeline
MAR
2013
OCT
2013
DEC
2013
MAR
2014
AUG
2013
NOV
2013
FEB
2014
AFAR Magazine (USA)
Experiential Travel Award for Best Inflight
Service
Awards - Mar 2013 to Mar 2014
2008:
1st
2010:
2nd
2012:
3rd
2009:
2nd
2011:
2nd
Ranking of SIA in Recent Five Years
On-Time
Performance
In-Flight
Experience

High
Low
Bad
Good

Singapore
Airlines

Asiana
Airlines
Malaysia
Airlines
Virgin
America
Qatar
Airways
Perceptual Map Relating to Service Quality
The quality of food, wine and
attention to detail was excellent.
They got Spacious seats .
Key Learning
Ambidexterity - innovation
Focus on both service and product design
Corporate culture on Design outlook and customer experience
Open to external ideas work on building their capabilities
Balance between design and profitability
Exceptional focus on Problem solving and human centred
approach to innovation


Thank you !