Vistara

Designing IT Strategy for

Vistara

Group B9 Submitted to
ITSDI Prof. Sanjay Mohapatra

Biswajit Padhi (UM18342) Drisha Sinha (UM18344) Himanshu Chaturvedi

(UM18345)
Jugal Kishore Patro Kriti Sinha (UM18348) Kumari Neha (UM18349)
(UM18346)
 2

Introduction
 3

Objectives
The objective of the project is to design an IT strategy for Vistara. The
VISTARA

specific objectives for the project are as follows:

• Analysis of civil aviation industry scenario- PESTEL Analysis, Porter’s Five
Forces
• Analysis of Vistara- organisation structure, business models, stakeholder
analysis
• Risk assessment
• Process, Application and Technology Integration
• Formulation for Big Data Strategy and Artificial Intelligence (AI) Strategy
• Developing Cloud Strategy for Vistara and designing the cloud architecture
• Devise the Technology Scorecard for various departments
• Change Management strategy for cloud implementation
• Preparation of action plan for each stakeholders
• Benefits of the IT implementation
 Methodology
4

The data was collected from various secondary sources that are elaborated
VISTARA

in the subsequent sections to analyse the industry, company and suggest

suitable strategy.

Data Collection: Data sources are Investors Reports, publications of several

government and private bodies, Reports from Ministry of Civil Aviation
technical journals, newspapers, websites etc.

Data can be categorized into 2 groups:

Quantitative Data Qualitative Data

Financial Data Case Studies

Operational Data Journals

Statistical Data Newspapers

 PESTEL Analysis • The millennial generation is much • Fuel is a major expenditure of the
more demanding in terms of effect of ecological factors on the
• Political factors vary across airline industry
service as compared to the older
nations • Companies spend more on fuel
generations
VISTARA
• The industry operates in a highly
• People are more economically efficient and environment friendly
regulated political environment carriers
minded in terms of their spending
• Freedom of movement and • The industry is focused on
• The airline industry is now seen as
travel results in increased reducing the emissions and
safer and convenient mode of
number of passengers travelling carbon footprints
transport. It is seen as a carrier of
abroad
the masses

P S E
Politics
E
Social
T
Environment
L
Legal
Economy Technology

• The airlines need to adopt to • New laws regarding the

• High fuel prices
• The recession affected the profits
as well as employment
• economic recession left behind a
few positive effects also with
reduced prices and raised service
latest technologies to cope up
with the intense competitions as
it improves speed, convenience
and safety
• Most of the airline bookings are
made online
• Social media has enabled easy
interaction of airlines with their
treatment of passengers by the
airlines have been enforced by
the government
• Different rules, regulations and
quality standards across
countries
• Getting operating license in
certain countries for new airlines
 Five Forces (Michael E.
Porter 1980)
Suppliers power (Medium)
• Due to high capital requirement, very few suppliers
• Switching costs of suppliers and firms in the industry high
• Importance of volume to supplier
• Airline firms the only source of income for these
manufacturers

Barriers to entry
• High initial investment Buyers power (low)
• Economies of scale for Intensity of rivalry • Low switching costs
existing firms • Differentiation
• • Industry growth stagnant • High competition
Retaliatory pricing from • Large amount of buyers as
existing firms • mature stage of business • Number of competitors stay compared to number of firms
• cycle the same in the long-run
Licensing and registration • Brand identity impact on
• Brand equity and image of • High fixed costs quality/performance
existing firms

Threat of substitutes
• Other forms of transportation
• Switching costs
• Buyer propensity to substitute depending on their preference
for transportation mode
 Organization Overview
7


VISTARA
Industry- Civil Aviation
 Stage of Industry- Growing
 Characteristics of the industry:
• Highly Competitive
• Focus on service quality
• Volatility of fuel prices
• Dynamic pricing
• Differential pricing

 Vistara is a joint venture of Tata Sons Limited and Singapore Airlines Limited, wherein
Tata Sons holds 51% stake and Singapore Airlines holds 49% stake in the partnership
 Vistara has 4.7% of share of domestic carrier market as of May 2019, making it the
6th largest domestic airline
 Vistara is the first airline in India to offer a value-based frequent flyer programme
called Club Vistara, where loyalty points are accrued based on actual appending on
fares rather than miles travelled.
 8

VMG
Framework
 VMG Framework
9

Vision:
“To grow continuously for all with altruism.”
VISTARA

Mission:

Customer Processes People

• To help student and business • Commitment to value, • Commitment towards people

community, for their transparency, and fairness in satisfaction
continuous growth service • Rhythm between
• Give as much as possible • Relentless improvement in management, employees and
personalized and professional services clients
services to clients

Business Goal:
• To redefine air travel in India to provide Indian travellers a seamless and personalized flying
experience that blends Tata’s and SIA’s service excellence and legendary hospitality
• To achieve market share of 6.5% from 3.8% in the next 5 financial years
 10

Technology
Scorecard
 11

Technical Scorecard
Calculations to show the scope of growth:
Target Market Share in 2023= 6.5%
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Market Share in 2018= 3.8%

Total passengers flown in 2018= 123.32 million
Passengers (Domestic) who flew by Vistara= 4.4 million
Total number of airbuses with Vistara in 2018= 24

PLAN: Make fleet size of 60 by 2023 which means 36 flights in 5 years to be added. Assuming 7 flights/year
24 flights = 4.4 million passengers
60 flights= 9.9 million passengers + 16% YoY growth
Load capacity of Vistara (seat fill rate) = 87%
Industry Growth rate= 16% YoY
123.32 million To increase to 258 million approx. by 2023
So, Vistara will fly up to 16.5 million passengers by 2023
Total market share from 3.8% to 6.5% in 2023
 12

DEPARTMENT (FUNCTIONAL)
Department Marketing and Flight Finance HR IT, Engineering and
Sales Operations Innovation
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Importance 35 % 20% 10% 15% 20%

Marketing and Sales

Strategy
Functional goal Strategy Index Metric
Weightage
To Increase the Expansion by .35 .35*.35 = .1225 Revenue, Revenue per
market share by including new available seat kilometre
6.5% by 2023. geographies (RASK) which is 4.38 as of
now. Revenue pr geography
New route .30 .35*.30 = .105 CASK, revenue, frequency
planning and the of repeat customers
untapped market
(category-2)
Advertise the .25 .35*.25 = .0875 Reach, Customer
differentiating Satisfaction Index
factors
Customer .10 .35*.10 = 0.035 Customer Retention Rate,
 13
VISTARA Flight Operations
Functional goal Strategy Strategy Index Metric
Weightage
To Increase the Increasing flights .40 .20*.40= .08 Units, Cost per available
occupancy level to busy routes seat kilometre (CASK)
to 95% from 87% which is approx. 3.64 as of
in the next 5 now, Number of new
years passengers
accommodated for

Increase in the .35 .20*.35 = .07 No. of Passengers

economy class accommodated for, sales
seats to trends
accommodate
the lag created
by Jet Airways

Reduce on .25 .20*.25= 0.05 Increase in efficiency, on-

ground time time performance
 14
VISTARA Engineering and Innovation
Functional goal Strategy Strategy Index Metric
Weightage
To deliver an Use of cutting .60 .20*.60 =.12 ROI, IRR , Valuation of the
unmatched travel edge technology Project
experience to the to increase the
customers and to customer
optimize experience
processes and
operations

Reduce .40 .20*.40 =.08 Productivity , Engineering

operational costs Utilization
 15
VISTARA HR
Functional goal Strategy Index Metric
Strategy
Weightage
Bring best Hiring Global 0.50 0.15*0.5 Diversity Ratio, Ratio of
Techno- functional Workforce =0.075 local to global employees
talent to the
organization
specializing in
global operations

Training and 0.50 0.15*0.5 Change in Productivity

development =0.075
 16
VISTARA Strategy Indices
Index of marketing strategy= 35%
Index of Operations strategy= 20%
Index of Engineering and Innovation Strategy= 20%
Index of HR Strategy= 15%
The greatest impact will be out of the following combination of strategies:
• Expansion to new geographies
• New route planning and the untapped market (category-2)
• Increase the number of flights to busy routes
• Increase the economy class seats to accommodate the lag created by Jet
Airways
• Use of cutting edge technology to enhance the customer experience
 17

Stakeholder Analysis
VISTARA

Environment Investors

Government Employees

Suppliers/Vendo
Customers
rs
 Stakeholder Analysis
18

Environment
Environment is an imperative piece of the business condition. The idea of a partner is more extensive than simply
VISTARA
human/political/monetary contemplation and the natural environment can be effortlessly fused into partner
administration forms including the earth would bring a 'more holistic, esteem situated, engaged and key way to deal
with partner administration’.

Investors
In most of the cases investors are external to the organizations who invest their money to get a good return on it, but
there can also be internal investors.
As of February 2019, the promoters infused another Rs 2 billion into Vistara, bringing the total infusion from 2015 to
about Rs 15 billion. Total infusion includes start-up capital of Rs 6.2 billion, followed by Rs 1.5 billion and Rs 2.5 billion
in 2016.
Government
The company need to be consistent with directions and keep away from disputes and indictments, prosecutions etc.

Employees
The employees are the ones who make and convey the items or services that the clients/customer demands. In the
event that Vistara lose or irritate their best employees then client/customer administration will endure, so they have to
be taken care of.

Customers
Without clients/customers the organization can't survive so in all circumstances the client needs should be in the
priority list.
 Stakeholder Analysis
19

Stakeholder Objectives
 Maximization of return on investment
 Enhance brand equity
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Investors
 Maintain debt-equity ratio
 Maintain WAC
 Good job profile
 Career growth and progression
Employees  Good working culture
 Learning and development opportunity through good training and development programs
 Job satisfaction and work life balance
 Safe and secure journey
 Premium travel experience with an option of food services offered
 Online Wi-Fi services for hassle free entertainment
Customers
 Time and cost-effective travel
 High quality services and value for money

 Reduced credit cycle

 Less exchange or defect per unit of lot
Suppliers/ Vendors
 Maintaining good relationship with all those included in the supply chain
 Timely availabilities of orders and timely delivery
 Good reputation
 Adhering to safety norms
Government  Compliance with all relevant and required laws and regulations
 Better employment opportunities through the sector
 Sustainability of business
 Reduce carbon emission
 Reduce noise and other emissions
Environment
 Reduce fuel consumption
 Reduce consumption of natural resources
 Context Diagram
20
VISTARA
 DFD: L1 Diagram
21

For functional analysis, Marketing and Flight Operations department are taken into
consideration and the Level 1 diagrams are as follow:
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MARKETING:
 DFD: L1 Diagram
22

For functional analysis, Marketing and Flight Operations department are taken into
consideration and the Level 1 diagrams are as follow:
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FLIGHT OPERATIONS:
 DFD: L2 Diagram
23

The two processes that are considered for Marketing Department are Market Research and
Promotions; and that for Flight Operations Department are Maintenance and Flight Management
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System.

Market Research Promotions

 DFD: L2 Diagram
24
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Maintenance Flight Management System

Factors affecting IT Strategy
Management Support: If top management is involved in the It strategy from the very beginning then it
becomes easier to implement IT in the organization.

Identifying Business Process: IT innovation and modernization helps the airlines to re-engineer
their business processes by addressing the industry challenges and opportunities

Identification and Interest of Stakeholders: Stakeholders sometimes are not interested in

investing in technological adoption as they think they can perform well in the status quo state.

Sustaining Technology implementation: Organizations sometimes just for the sake of

implementing IT, adopt any applications or strategy that has been successful earlier.

Costs Involved: Adopting IT implementation is a capital-intensive process. It requires time, money

and expertise.

Reduction in Operational cost: Customised software solutions can be developed aligning with the
operational activities that would help in reducing the cost as well as time.
Factors affecting IT Strategy
Increase In customer expectations: Meeting or exceeding the customer’s expectations is the key to
success in airline industry. Providing the best experience to customers not only increase the profits but also
increase the brand value.
Lack of contingency plan: If IT implementation plan fails then company generally do not have
any backup plans to go back to the earlier stage to carry out business as usual. Information
Security is also considered a problem.

Identification and Interest of Stakeholders: Stakeholders sometimes are not interested in

investing in technological adoption as they think they can perform well in the status quo state.

Increase in Competition: IT strategy can reduce the costs, increase process efficiency and make
the business flourish. Improved business performance will earn better profits.

Costs Involved: Adopting IT implementation is a capital-intensive process. It requires time, money

and expertise. The airline companies can get the following competitive advantages: Personalized
solution, Technical Excellence, Secure, sustainable and scalable solutions, Higher and faster
business value realization, and Business process transformation

Laws regulating use of technology: In certain countries there are restricted use of Internet or so
that hampers full-fledged IT implementation.

Communication: The change involved in the organization should be communicated to its

stakeholders at an early stage, so that the change is gradual and accepted across the organization.
Issues and Challenges faced
by Vistara
• Challenges in creating 3 revenue models along with requisite sales plan
• Claustrophobic look due to its premium economy section
• Affected revenue and sales matters for Vistara due to its premium economy section
• Very weak frequent flyer program
• A major challenge for Vistara is that it could get positioned more like being a smaller
version of LCC rather than competing for Jet’s travellers
• Grooming standards of crew members of are lower than the benchmark set by Indigo
 28

Risk
Management
Risk Management
Risk Identification

Risk

Entry and Operational Sovereign Financial

Market risk risk risk risk
• lot of • Higher • Currency • Increasing
competitions Ground time risk interest rate and
with increasing • Fluctuating • Expropriatio the currency
number of and high fuel n risk fluctuations are
airlines lines like price a major concern
Indigo, Go Air, • Long term for Vistara
SpiceJet and labour union
other regional contracts
and foreign
players
Risk Management
Risk Assessment

The risks identified is broadly categorized under four types – entry and market risk, operational risk,
sovereign risk and financial risk.

Type of Impact (in Probability Impact Risk

Sl. No Risk Identified
Risk INR Crores) (%) Factor Index

New Entrants 10000 20% 7 14000

Entry and
1
Market Risk
Pricing Pressure 5000 60% 5 15000

Operational Higher Ground time 800 65% 5 2600

2
Risk
Higher Fuel Prices 900 30% 8 2160

Currency Risk 400 20% 7 560

3 Sovereign Risk
Expropriation 500 20% 6 600
4 Financial Risk Margins 4000 25% 8 8000
Risk Management
Risk Mitigation

A policy is being formulated with the following objectives to manage risk: -

• An overview is provided of the principals or the risk management.
• The approach adopted by the company for risk management.
• The organizational structure to be defined for effective risk management.
• Develop a “risk” culture that encourages all employees to identify risks and associated opportunities
and to respond to them with effective actions
• The existing and new risks to be managed in a planned and coordinated manner with minimum
disruption and cost to protect the resources of the company.
 32

Solution
Proposed
 33

Process Integration
The synchronization of real time data over various systems are performed when the process are executed.
 34

Application Integration  Wrappers code

 ERP like SAP
APPLI CATI O N S

ERP Sales SCM NetSuite

HRIS
CRM Management ERP

HR F
Finance U
Marketing & • Recruitment &
Operations • Budgeting & N
Sales Compensation
• Ground Staff Planning C
• Pricing
• Credits & T
• Promotion • Training
• Maintenance Collection I
• Forecasting & • Evaluation
• Logistics • Tax O
Sales
• Procurement Processes N
• CRM • Promotion &
• Payroll S
Layoff
 35

Technology Integration
• use of diverse IT tools, applications, and information systems

• allows the usage of data from various technologies to achieve business goals and
overcome the challenges
 36

Big Data Strategy

Unstructured Data
 Booking information
 Email data
 Mobile data
 Customer service info
 Surveillance imagery
 Images and videos
 News and trends
 Demand
 Search data
 Social media data
 Natural language
Structured Data
 Reservation System
 Inventory control reports
 Forecast reports
 CRM System
 ERP System
 Transaction records
 Baggage tracking
system
Outcomes :
a) Develop detailed predictive insights about
customer's buying journey
b) Develop predictive insights about the staff's
requirements and inventory management
Critical Success Factors (CSFs) :
a) Develop a staff scheduling system successfully
b) Predict demand based on weather forecasts, past
flyer information, and other macro- factors
c) Reduce domestic flight turnaround time to less than
30 minutes
d) Reduce maintenance costs significantly

Business Strategy:
To provide safe, on-time, reliable and efficient Tasks:
services, and be the employer of choice a) Collect and identify useful sources of data
b) Develop a way to categorize, warehouse and
analyze the data and derive useful insights
Business Initiatives: c) Gather maintenance data from on-ground staff
routinely
a) To increase market share to 30% in the d) Create a dynamic pricing system to optimize the
next 5 financial years revenue generation
b) To reduce operating costs by 25% in the
next 5 financial years
 37
Capability Development Building

Business
Goals • Based on various analyses, optimal scenarios
and patterns can be derived out of seemingly
chaotic data sets to get insights into
Data
Decisions operational effectiveness of the staff as well
Warehouse
as buying habits of the customer.
• Vistara can outsource its pre-flight, in-flight,
and post-flight supporting operations with
regards to big data to organizations such as
Predictions Algorithms
Accenture, TCS, Wipro, IBM, HCL, Infosys
etc.
 38
Capability Development
Building
Business Strategy:
To provide safe, on-time, reliable and efficient services, and be
the employer of choice

Business Initiatives:
a) To increase market share to 30% in the next 5 financial years
b) To reduce operating costs by 25% in the next 5 financial years

Outcomes :
Business a) Develop detailed predictive insights about customer's buying
Goals journey
b) Develop predictive insights about the staff's requirements and
inventory management

Data Critical Success Factors (CSFs) :

Decisions
Warehouse a) Develop a staff scheduling system successfully
b) Predict demand based on weather forecasts, past flyer
information, and other macro- factors
c) Reduce domestic flight turnaround time to less than 30 minutes
d) Reduce maintenance costs significantly

Tasks:
Predictions Algorithms
a) Collect and identify useful sources of data
b) Develop a way to categorize, warehouse and analyze the data
and derive useful insights
c) Gather maintenance data from on-ground staff routinely
d) Create a dynamic pricing system to optimize the revenue
generation
 39

Cloud Strategy
 Reasons for adopting Cloud Strategy:
 Lower IT capability in comparison to its competitors
 Rapid scaling up of operations
 Avail cost advantages of operating expenses
 Pay per use model
 Realise operational synergies
 Newer marketing campaigns in form of emails for offers, discounts etc.
 Better predictability of surges in demand
 Anticipate schedule changes

 Reasons for not adopting Cloud Strategy:

 Traditional and legacy IT infrastructure
 Difficult to fire existing IT employees
 More focus on operations and aircraft modernization and upgradation
 40

Cloud Deployment Model

Sl.
Service Type Functions/ Applications
No.
Master Data Management
1 Private IaaS Enterprise Data Management
Operational Data
POS Applications
Reporting
HR Management Application

2 Private SaaS Knowledge Management Application

Asset Management
Customer Relationship Management
Cargo Management
Big Data Analytics
3 Public/ Hybrid PaaS
Business Intelligence
 41

Vendors
Saas IaaS PaaS
1. CRM (SalesForce, Orcale 1. Storage (Amazon RDS, 1. Google App Engine
on Demand) Rackspace, Zetta) 2. Windows Azure

2. HR (SAP, Taleo) 2. Compute (Amazon EC2,

Microsoft Azure)
3. Security (Cisco,
McAfee) 3. Network (Amazon AWS,
Rackspace Cloud)
4. Collaboration (Dropbox)
4. Cloud Management
(Cloudways, RightScale)
 42

Cloud Architecture of Vistara

 43

Cloud Architecture of Vistara

1) Cloud Service Provider
1. Cloud Services
2. Common Cloud Management Platform
2) Cloud Service Consumer
3) Cloud Service Creator
1. Service Component Developer
2. Service Composer
3. Offering Manager
4. Service Creation tools
5. Service Runtime development tool
 44
Benefits to Stakeholders through Cloud
Strategy
 Investors
o Cloud lowers the total cost of ownership. The administrative and maintenance costs is significantly reduced
o A variety of technologies can be simultaneously adopted over a pay-by-use model thus avoiding the purchases of
expensive software upfront
o Cloud ensures resource availability by supporting redundant infrastructure components

 Employees
o Ease of access to company data will save time and money
o Employee data is safely secured. The encryption of data makes it less accessible for hackers or someone not
authorized to view the data
o More flexibility as compared to hosting on a local network. The employees can devote more time to those aspects of
the business that directly affect the bottom line
o Cloud computing offers mobile access to company data. Makes the life of employees easier during their busy
schedules
o All documents are stored at one place and in a single format, thus ensuring consistency in the data and avoid human
errors
o Cloud ensures direct engagement with customers and potentially builds a healthy relationship
o Customer data can be used to segment the airline’s target
o Increased and efficient productivity with the use of cloud
o The advancements in software, networking, storage and processor technologies can be leveraged
o Improved reliability and resilience
 45
Benefits to Stakeholders through Cloud
Strategy
 Customers
o Customer data is safely secured. The encryption of data makes it less accessible for hackers or someone
not authorized to view the data
o The customers can check and make their bookings through the ease of mobile access
o Customers can receive important information regarding their booking in real time
o Customized offerings from the airlines based on travel habits
o Cost effective because you pay only for the services you use.
o Individual needs of the customers can be catered to
o Appropriate promotional schemes on the routes of frequent travel.
o Avoid standing in long queues for the collection of boarding passes

 Suppliers
o Restocking in terms of maintenance at the airport and inside the airlines that be done well before time
o Identification of peak load for ticket bookings during holiday, festive period or otherwise
o Ease of maintenance of inventory and shipment
 46

Cloud ROI
 Reduction in total cost of ownership: Implementation of cloud computing lead
to reduction in costs in terms of maintenance costs, labour costs, installation
costs. Further, there is reduction of IT staff requirement due to cloud.
 Reduction in maintenance costs: There is obvious reduction in maintenance
costs compared to the legacy system and savings are estimated to be as high as
30% in some cases.
 Rapid scalability: Cloud computing allows for rapid scalability in very short
period of time that helps to achieve economies of scale in operations and lower
per unit cost.
 Pay per use: Again pay per use model helps in cost reduction by allowing the
client to pay as per usage and reduction in waste.
 47

Financial Analysis
Assumptions
Without Cloud Scenario

 The cost of implementing IT strategy without cloud scenario is based on historical data
 The cost of IT assets without cloud scenario is expected to increase at 12% every 3 years
 The cost of operating expenses without cloud is expected to increase at the rate of 16% every year
 The discounting for calculating the present value is equal to Cost of Capital, WACC = 9.66%

With Cloud Scenario

 Cost of the cloud is based on AWS. (Website : http://calculator.s3.amazonaws.com)

 The various components are estimated and multiplied with the corresponding rates to get the cost
Similarly, the annual operating expenses are estimated.
 48

Cost Analysis
Cost Estimate for Capex Cost Estimate for Opex

Unit Quantit
Components Rate Amount Components Units Quantity Rate Amount
s y
Server Nos. 4500 320000 1440000000
Bandwidth Rs/year 140 1950000 273000000
Networking Equipment Nos. 2300 60000 138000000
Storage TB 2300 227500 523250000
resource 1040000 364000000
Backup TB 16000 65000 1040000000 Resources s/year 350 0 0
Software (OS + Nos. 4500 260000 1170000000 Infrastructure
Internet Information Maintenance Rs/year 700 474500 332150000
Services)
Software (Database) Nos. 4600 1800000 8280000000 Software Maintenance Rs/year 1500 260000 390000000
Software (Anti-Virus + Nos. 4500 15000 67500000
Security Management) Other O&M Costs Rs/year 45 9750000 438750000
507390000
IT Employee and Staff 450 900000 405000000 Total 0
Total 1306375000
0 Total(in millions) 5073.9
Total (in millions) 13063.75
Cash Flow Analysis and Financial 49

Implications
NPV at WACC=9.66% 282862.29

IRR 1129.128%

ROI Year

1062.15% 1

2665.35% 2

7894.02% 3
 50

Sensitivity Analysis
Sensitivity
NPV @ 9.66%
Growth IT Opex WACC IRR
₹
Base 5% 2,82,862.29 1129%
₹
Optimistic 4.50% 2,90,695.42 5847%
Pessimisti ₹
c 5.50% 2,75,029.15 621%

Pessimistic
Base Case Optimistic Case Case

ROI Year 1 ROI Year 1 ROI Year 1

10.6215 57.9504 5.44468
1 1 3 1 7 1
26.6535 143.917 13.8272
4 2 2 2 8 2
78.9401 414.392
7 3 7 3 42.2485 3
 51

Risk Analysis for Cloud Strategy

Type of Impact (in Probability Impact Risk
Sl. No Risk Identified
Risk INR Crores) (%) Factor Index
Regulation and compliance 180 20% 8 288
Changes in competitive
150 20% 7 210
1 Business Risk dynamics
Delay in payback period 120 15% 9 162
Business Resilience 70 20% 7 98
User Identity Federation 20 15% 6 18
2 Information Risk
Loss of sensitive information 250 15% 10 375
Malware attacks 200 10% 10 200
Hacking of servers 180 12% 9 194.4
3 Technology Risk Service outage at cloud
220 30% 9 594
provider
Insufficient bandwidth 80 15% 7 84
System failure 190 10% 9 171
Inability to track data 50 25% 7 87.5
4 Operational Risk Lack of control over
120 18% 9 194.4
performance
Lack of control over quality 70 12% 6 50.4
 52

Risk Mitigation Plan

Type of
Sl. No Actions to be taken
Risk
• Align the information security and compliance functions via
1 Business Risk governance, risk and compliance unification efforts
• Due diligence of cloud service provider
• Applying proper security and encryption at different levels of cloud
2 Information Risk application
• Taking backups at regular intervals
• Proper integration of technology
3 Technology Risk • Deployment of different types of cloud for different types of service
will ensure decentralization and minimize loss of data
• Process integration which includes integration of processes with each
other and also with the business goals
4 Operational Risk
• Application integration to ensure end to end flow of information,
understanding of customer segments and enhanced decision making
 53

Artificial Intelligence Strategy

Inspiration
 Implementation of Chatbots can vastly
improve the customer experience
Home Research  Virtual assistants using natural language
processing can also be utilized to help the
customers with inquiries regarding flight
information on voice command.

At destination Shopping
Vendors
• IBM (with their IBM Watson technology
for air traffic management)

In Transit Booking
• Amazon (with their Amazon Alexa coupled
with another technology for the check-in
Servicing process and flight updates)
• Amadeus (one of the leading global
Fig: Customer Journey in Aviation Industry
distribution systems) etc.
Change Management and Implementation 54

Strategy
• Communication Strategy: spread short term
• Communication Strategy and long term benefits through catalyst or word
of mouth
• Escalation Strategy • Escalation Strategy: based on SLAs and
• Project Structure criticality
• Goals • Critical Success Factors: milestone based
goals having specific end date
• CSFs (Critical Success • Pilot Strategy: All Features Some Offices
Factors) • Review: senior management reviews which
• Pilot Strategy may be either on milestone basis or periodic
(regular) review.
• Review • Training: knowledge transfer
• Infrastructure • Rewards & Recognition: Greater emphasis on
• Training recognition and appreciation
• Feedback: to enhance the application
• Rewards & Recognition
• Feedback
Managerial Implication for Cloud 55

Strategy
Senior
Shareholders Employees
Management
• Better Efficiency More • Quicker and more • Improve the
Profitability Increased accurate decision- operational
Returns making process effectiveness
• Decrease the
turnaround time

Suppliers &
Customers
Vendors
• Customer experience • Increasing the overall
smoother and richer supply chain efficiency and
fostering improved
integration between
different stages of the
supply chain
Government
• Air India can be put on the
path of increased
profitability, thus, providing
the government a scope to
gradually divest from it in
the future and foster its
privatization
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Conclusions
• The project deals at length the industry analysis of civil aviation and
company analysis of Vistara
• Based on functional and process diagrams, cloud strategy has been
suggested to ensure seamless integration and achieve greater
operational efficiency
• Change management and implementation strategy has also been
detailed for smoother transition to new system
• The future of technological advancements in aviation sector has also
been analysed and Big Data strategy and Artificial Intelligence
strategy has also been suggested
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Thank
You..