Managing Information System

MGT 6203 GROUP PRESENTATION

Logesh Nadarajan I12000611
Devagaran I12000637
Archana Anand I11009053
Juin Zhi I08000239
Company Background
Established in 1947.
Flag carrier owned by Malaysian Government.
Headquarters Sultan Abdul Aziz Shah Airport in Subang, Selangor
2 Airline subsidiaries : Firefly and MASwings.
Award-winning airline with more than 1000 aircraft, servicing more
than 110 destinations across six continents
Ranked second with score 88 in Aviation Week's Top Performing
Companies which measures financial viability of an airline.

Vision
An airline uniquely renowned for its personal touch, warmth and efficiency.
To be the Worlds five star value carrier
To be the airline of excellence
Going beyond expectations
Mission
To provide air travel and transport service that rank among the best in terms of safety,
comfort and punctuality.
Make Malaysia Airlines one of the leading standard bearers for the airline industry in
term of safety, efficiency and quality of service.
To be a profitable airline.
Objectives
Highest level of safety
Satisfy legal requirements
Operations are conducted in the most efficient manner
Drive structural cost management
Ability to map efficiency in each area of operations
Position as benchmark in the aviation industry
Current I.S Used by MAS
Integrated Crew
Management Systems
Cockpit Crew Crew Tracking
Cabin Crew
Automate the tracking and
scheduling of the flights crews
timetable
Tracks the position
of the crews and
handles crew
pattern disruptions
Passenger Service Systems
Reservations A new, more efficient and functionally rich system, to meet
today's industry standards and requirements
Ticketing - Self service to passengers including Kiosk and web check-in
Departure Control Fast, reliable and comprehensive check-in options that
enhances passengers experience. Boards wide number of passengers.
Revenue Integrity Enables MAS to perform real-time reviews of bookings as
they are made to identify unintentional and deliberate booking rule violations.
Fares Management - Pricing decision support tool that allows MAS to more
quickly update published, negotiated and add-on fares.
Problems faced by MAS as a whole...
Increased
competition and
Price Pressure
Running in a loss
Decreased
Loyalty
Reduced Product
Differentiation
Changing
Channel
Dynamics
The disadvantages of current IS
Poor customer handling system
Customer database is not managed effectively
Large investment in IS but employees not competent to use
the system
Bureaucracy in decision-making delays the solution to be
delivered to customer
Customer feedback and queries were not responded timely
and often delay
The disadvantages of current IS
No actions taken regarding customer complaints
No provision of prompt ticket refunds
No responsiveness to customer enquires
e-ticketing faulty

Example of MAS Customer Service problems
Scenario 1
Problem : Malaysia Airlines Cheating Customer
Year : 2011

Customer trying to change their flight from Australia to Malaysia, customer
called the administrator but put on hold for 10 min, end up customer wrote
email through their webpages.
After that, customer called to service officer to told them about this and been
informed that charges incur where customer willing to pay, but in the half way,
the call cut of and n people get back to the customer, customer make few times
of call and the cost increase every time, end up, customer get the response of
i am not the one responsible", "i am not in charge" and "there is no one else to
talk to". I had requested for the manager to call me back which obviously has
not been done.
(http://www.airlinecomplaints.org/showthread.php?t=9149)

Scenario 2
Problem : Malaysia Airlines e-ticketing faulty
Year : 2009

Customer logon to MAS online booking system to book ticket, after fill in the necessary
information, upon clicking submit, all the info overwritten and cant make any changes,
so customer drop an email to them for the approval for names changes, but it need to
charged RM 65 penalty for each traveler.
Customer stunt as the error was caused by the system and they asked for charges, in
the reply, it mentioned that Our online booking system is designed in such a way.. It
is unfair to have the customer paying for penalty for the system error services provided
by the online booking.
End up, they avoiding the calls and did not reply the customer mail

(http://www.airlinecomplaints.org/showthread.php?t=9149)



Example of MAS Customer Service problems
Solution
There are 3 ways to increase the profitability of
customer base, acquire more customers and to
optimize the value of existing customers and retain
Proposed solution for this IS mayhem would be
CRM
CRM would be the best solution as it would ensure
that troubled airlines would be able to manage its
customers efficiently

Customer Relationship Management
for MAS
Why CRM for Malaysian Airlines?
Its a strategic business priority
Focusing on winning, growing and retaining high value
customers
Maximizing customer knowledge in terms of customer
value and customer needs
Develop personalized services and improving customer
service efficiency for high value customers
To improve market efficiency and measure the effects of
individual marketing activities
Proposed Project Plan
Proposed project plan for the implementation of Customer Relationship
Management system would be divided into the below stages for
implementation:-

Review
Prioritize
Install
Implementation
Support
Project Plan (contd)
Review

Under the review process, MAS would have to go a thorough process of
identifying the flaws of its current information system and also the impact the
current information system has done to its position in the airline industry. With
this, MAS would also review the key points in improvising and selecting the right
mechanism in ensuring the company would improvise its productivity and
performance

During this review process, the listed mechanism which would help MAS focus on
winning, growing and retaining its high value customers. It would also maximize
customer knowledge in terms of customer value and customer needs and in the
process, there would also be an increase in market efficiency.



Project Plan (contd)
Review

Review results on MASs current Information Systems would be on :-

-Unable to identify most valuable customers
-Data aren't collected consistently or accurately
-Failure of utilizing the current information system despite heavy investment
-Failure to respond to customers queries on timely basis
-Reduction in customer loyalty as customers nowadays are towards pricing and
not brand loyalty
-Increase in operational costs due to aging ERP system
-Change of mindset from operation-driven mode to customer-driven mode

Project Plan (contd)
Prioritize

Prioritizing the important aspects which are affecting the performance of MAS as
discussed in the previous slide

The objectives would be :-

-Implementation of better customer identification and recognition capabilities at
all customer interaction points throughout MAS.

-Creation of a well architected ICT platform that would replace the current legacy
infrastructure (change of ERP system, data collection system, etc)

-Aggressive cross-channel campaign management system
Project Plan (contd)
Install - Recommendation
Implementation of better customer identification and recognition capabilities at all
customer interaction points throughout MAS.

-Redesign and simplify the call center process
-Redesign the complaint management system
-Identify customer in all interaction points
-Delivering integrated real time view of the customer in all interaction points

Creation of a well architected ICT platform that would replace the current legacy
infrastructure (change of ERP system, data collection system, etc)

-ERP implementation (SAP)

Aggressive cross-channel campaign management system

-Optimizing campaign management
-Create a customer value-based pricing model
-Analysis reporting on purchase drivers of customers



Project Plan (contd)
Implementation

Effectively after the installation of the CRM, implementation could be done
throughout the MAS systems.

A clear process flow and monitoring system would be implemented as well for
supporting clear and coordinated decision making, and ensuring there is a
realization of benefits as part of MAS systems

Constant monitoring is done during this phase, as implementation is already go-
live and in its production stage. During this stage, all aspects are carefully
monitored and noted down for further analysis.




Project Plan (contd)
Implementation

Proposed Timeline





Year 1 Year 2 Year 3 Year 4 Year 5
System Installation
Training Plans
Testing
Go-Live and
Monitoring
Gantt Chart: Implementation Plan of CRM in MAS for 5 Years period
Project Plan (contd)
Support

Immediately after implementation of the CRM, there should be a support team in
place to accommodate further changes upon analysis of implementation.

More changes might be required to be done (example would be on the technical
aspects of the CRM system) such as troubleshooting system issues, immediate
response and etc.

During this stage, constant monitoring and quarterly results will be shared to the
management for decision making purposes.


Expected Improvement in Productivity
and Performance of the Organization
The improvement that the organization can expect from the implementation of this
new system can be divided into two categories. The categories explained below:

1. General Benefits of Enterprise Resourcing Planning

Reduce Operational Cost
The airline will be able to reduce the operational cost when implementing the system.
For example, an elimination of paper ticketing with the implementation of E-ticketing.
The paper cost is now converted to the customers hand.

Increased Revenue Growth
With the system on place for e-ticketing, MAS were able to save some amount of
money for per ticket that had been purchased.

Customer Satisfaction enhance Sales
Enhanced CRM system will give more satisfaction to the customers when doing
business with MAS. More communication/solution source in the internet will be able
to answer to their queries.

Employee Performance
CRM system as a working tool for the employees will make their work life better
where they can monitor and perform well in their duties.

Productivity
Work completion rate can be increased with help of this new CRM system.
Employees productivity will increase by the number of cases had been solved. This
will increase the overall efficiency of the customer service personnel's.
Benefit for the business from Customer Relationship
Management System
Building the trust
MAS can rebuilt the trust of their quality service by providing the best customer
service through the online system.

Creating the brand awareness
Customers must be always aware on the current happenings in MAS and it would be
easier for them to make a travel decision. The competitor Air Asia is a good example
in practicing an excellent brand awareness.

Competitive Advantage
Implementing a outstanding CRM System will provide a competitive advantage if
compared to the competitors. Customers prefer to have a safe and pleasant airline
experience before, during and after the travelling journey.
Benefit for the business from Customer Relationship
Management System (contd)
Real-Time Insight
MAS will get a 360-degree view of customer interaction based on the most accurate
counter communications, branch office transactions and information from social
networks. With this, the data management and retrieve time will be shorter while
the whole process will fast. Decision making will be revolutionized.

Real-Time Interactions
The problems and customer need will be entertained in a highly personalized way by
offering the exact solution to what the customer need.

Real-Time Execution
MAS can be able to carry out end-to-end customer request within the airlines front
office only. By this way, MAS can maintain their brand promise of Malaysian
Hospitality which will create an extraordinary customer experiences. This will allow
MAS to empower the front line employees to engage proactively with the customers.
IS: Benefit of SAP 360 Customer
Conclusion and Expected Results
To realize the maximum business benefits
To stimulate data and insight capture that enriched
the single view of the customer
To increase the availability of customer information
To drive cultural change