Presents, the usage of information engineering plays a critical function for concerns to vie and win. Harmonizing to Laudon and Laudon ( 2010 ) , about the all houses and organisations use information engineering to last ; they invest in information engineering and systems because these investings will return a batch of advantages, such as ; an addition in productiveness, a lessening in costs and an addition in gross. Information systems provide information for directors which help them to do better determinations and better operations. This assignment will look at the largest low cost bearers in Asia Pacific part – AirAsia Berhad, which is known as AirAsia. In this work we will analyze how organisation has successfully used information engineering and systems to better their concern. In add-on, this paper will look to IT schemes of Air Asia and to some concerns procedures within organisation where information systems were successfully implemented.
If you want to understand today, you have to seek yesterday. ( Pearl Buck )
By and large, without past, there is no hereafter and everything in our life has his history. Therefore, it is brief Air Asia ‘s background:
First of all, AirAsia was founded in 1993 by Malayan authorities as a 2nd airliner to the major national air company MAS ( Malaysian Airlines ) and AirAsia started operating after three old ages on 18th November 1996.During the undermentioned 5 old ages, AirAsia failed every twelvemonth to convey net income, as a consequence ; AirAsia had a great debt of about USD $ 37 million in 2001. However, this clip is the clip when the existent narrative of the largest low-priced air hoses began. In 2001, Dato ‘ Sri Dr Tony Fernandes with spouses Dato ‘ Pahamin Rejab ( former president of Air Asia ) , Dato ‘ Kamarudin Meranun, and Dato ‘ Aziz Bakar purchased the AirAsia from Malaysian proprietor HICOM Holdings Berhad ( now known as DRB-HICOM Berhad ) , for a symbolic monetary value RM1 ( USD 0.25 cents ) , and agreed to shut the debts of the company. ( AirAsia Annual Report, 2008, p.3 )
They started with an advanced end to do air travel cheaper and more low-cost to people that “ Now Everyone Can Fly ” . AirAsia was re-branded and re-launched and started new life with two Boeing B737 planes, about 250 staffs and had merely five finishs to Kota Bahru, Kota Kinabalu, Kuching, Labuan, Langkawi and Penang. Harmonizing to AirAsia web site, today after 10 old ages Air Asia has about 100 air planes and flies to more than 60 finishs from 23 states. Additionally, Air Asia operates more than 3,500 flights a hebdomad and has about 8,000 staffs. In 2009 AirAsia ferried more than 22 million riders and AirAsia is ASEAN ( Association of South Asia Nations ) bearer. ( AirAsia Annual Report, 2009, p.4 )
It can be clearly seen that AirAsia has made a enormous success in air hose industry and it is interesting to cognize what and how directors of AirAsia usage to accomplish this antic result. It will be described subsequently in following chapters.
Type of concern of organisation
Organization concern environment
Nowadays every organisation has mission and vision statements, which show what organisation is – ( mission ) and a position of what organisation wants to be – ( vision ) . ( Harrison and John, 2009 ) In add-on, the mission statement of the organisation must be wide because it is an umbrella which encompasses organisation ‘s plans and services. ( Angelica, 2001 )
Continue to be the lowest cost air hose in every market we serve.
To be the best company to work for whereby employees are treated as portion of a large household
Make a globally recognized ASEAN trade name
To achieve the lowest cost so that everyone can wing with AirAsia
Keep the highest quality merchandise, encompassing engineering to cut down cost and enhance service degree ( AirAsia website )
“ Without a scheme the organisation is like a ship without rudder, traveling around in circles ” . ( Joel Ross and Michael Kami )
AirAsia has achieved a enormous success since its “ redevelopment ” . Because of some success factors AirAsia gets some competitory advantages in air hose competition. By utilizing it AirAsia is the best lowest cost air hose company in South Asia. The cardinal point of Airasia ‘s success factors is to present low menus is to systematically maintain costs low. Supplying low costs needs the high efficiency in every portion of the concern. Therefore, every portion of organisation, every system procedure, everything must integrate best industry patterns. AirAsia’a success factors can be analyzed in the nucleus values of the organisation. AirAsia gets competitory advantages and makes their concern successful by utilizing these cardinal schemes:
aˆ? Safety First – Safety is the most critical standards in every portion of the organisation operations ; safety is the country where AirAsia will ne’er compromise on. All conditions, which determine by regulators in the states where AirAsia operates, are complied by the largest low menu air hose. Furthermore, partnering with the universe ‘s most celebrated care suppliers to be ensured that AirAsia ‘s aeroplanes ever in the best status.
aˆ? High Aircraft Utilisation – The AirAsia aeroplane captains ‘ ability, to do a fast turnaround of 25 proceedingss which is the fastest in the part, is more convenient for clients to go. It has resulted in high aircraft use, better air hose and staff productiveness and lower costs.
aˆ? Low Fare, No Frills -Providing to invitees to hold the pick of purchasing entirely prepared repasts, bites and drinks from in-flight service at an low-cost monetary value.
aˆ? Streamlined Operations – The of import key of the AirAsia ‘s success is to do procedures are simple as possible.
aˆ? Leans Distribution System – Offering a broad and advanced scope of distribution channels to do engagement and going easier.
aˆ? Point to Point Network – Using the point-to-point web supports operation simple and lower costs. Most of the AirAsia ‘s flights are short draw ( four-hour flight radius or less ) which helps to maintain lower costs.
The Business Strategy of AirAsia is “ To go on to be the lowest cost short-haul air hose in every market it serves, presenting strong organic growing through offering the lowest airfares at a uprofit ” .
This scheme concentrating in six chief strategic pushs:
aˆ? Efficient and simple point to indicate operationsA
aˆ? Attracting and retaining hardworking and smart peopleA
aˆ? Passion for uninterrupted cost decrease
aˆ? Resilient net income growing through our lower cost baseA
aˆ? Expansion of the AirAsia web in a prudent and disciplined mannerA
aˆ? Invest and heighten the AirAsia trade name to increase investors ‘ returns
aˆ? Comply with the highest International Aviation Safety Standards and patterns
aˆ? Keep operations simple and transparentA
aˆ? Ensure the security of our Peoples and Guests
aˆ? Maintain simpleness in every applicationA
aˆ? Practice the unique and friendly AirAsia experience at every opportunityA
aˆ? Acknowledge the linkage between invitees ‘ satisfaction and long-run success
aˆ? Transparency in decision-making and information sharingA
aˆ? Optimum revelation – higher than industry normsA
aˆ? Timeliness in unwraping information
aˆ? Invest in both difficult and soft skillsA
aˆ? Recognize all our Peoples as subscribers to our successA
aˆ? Reward excellence and single parts
aˆ? Keeping one trade name across the Group
This chart shows the corporate construction and chief companies for AirAsia
Figure 12. Organizational Structure of AirAsia Berhad ( Adopted from airasia.com )
1. Dickering Power of Supplier
First of wholly, it can be clearly seen that the chief AirAsia ‘s provider is the aeroplane providers. By and large the power of aeroplane providers is really strong because of monopolization in aeroplane makers ; there are merely two types of aeroplanes Boeing and Airbus. The shift cost for aeroplane providers is really high due to expensive demands to alter aeroplanes, for illustration: it will be really dearly-won for AirAsia to alter aeroplanes and develop employees to be used of new aeroplanes. To be honest, presents, merely several air hose industries exist in air hose industry, therefore the power of aeroplane providers is really antic. If we look to other providers, such as, fuel, nutrient and other providers, it is clear that their power is non so strong because AirAsia can alter them and it will non impact to costs. The addition in monetary value can be hazardous for these providers because AirAsia can discontinue working with them.
2. Dickering Power of Buyer
By and large, the power of clients is ever high because there is no any exchanging cost for clients to alter from one air hose company to another, nevertheless ; in this instance, it can be thought that the end product of AirAsia is really alone and antic in South Asia part. In add-on, there will be exchanging cost for clients who want to alter AirAsia to another air hose company, as a consequence ; the bargaining power of purchasers is low.
3. Menace from Substitutes
In South Asia part there are several possible replacements for air hose industry, such as ; trains, coachs, autos or ships. However, the monetary values for other replacements are more expensive or at the same degree, comfort, clip disbursement and other factors during the traveling are more worse than in irline traveling. Nowadays, air traveling is faster, cheaper and more comfy, as a consequence ; menace of replacements is severally low.
4. Menace from New Entrants
Airline industry is really expensive for new organisations to capture into this industry. New organisations must hold a large capital, strong support from authorities and must match for some demands for air hose organisations. There are hard barriers for new organisations, for case ; cost advantages of bing air hose organisations, trade name trueness of clients, high shift costs for clients and authorities limitations. Therefore, the menace from new entrants is low.
5. Rivalry Intensity
In general, the competition between air hose organisations in Malaysia is non really strong. There is merely one rival for AirAsia in Malayan air hose industry is Malayan Airlines ( MAS ) which can be considered as a “ friendly ” challenger. Therefore, the strength of challenger is low in Malayan air hose industry.
The strategic placement has several ways in which the company can accomplish competitory advantage. For case, offering similar benefits for a lower cost to clients or retain cost but offer greater benefits for clients. In the instance of Maybank, the scheme used by the company is to continue the value of banking merchandises and services, while offering great benefits and value, every bit good as the good quality of their merchandises and services.
Concentrating on the assortment and quality of their merchandises and services, Maybank exercise their competitory advantage. In peculiar, through its subordinates Maybank provides a broad and diverse scope of merchandises and services. That allows its clients to utilize multiple services in one banking group. By intrusting their money to the tried bank, whether it be insurance, private banking or assets direction. All this, along with high quality services and extremely professional staff of the bank create convenience for clients, thereby increasing competitory advantage.
One of the of import factors in accomplishing competitory advantage of Maybank is to better the quality and velocity of services through the debut of information engineering. Maybank since its origin is looking for ways to do life easier for its clients, through bettering the quality of its services. Information engineerings have played an of import function in this. Maybank ever has been the first to present new engineerings, therefore supplying greater benefits and chances for its clients.
4.0 Analysis of the Current IS/IT Strategy Environment and IT solutions of Maybank.
It is besides known as Revenue Management System ; it understands, anticipates and reacts to the behaviour of client to maximise gross for the organisation. This takes into history the operating costs and AIDSs AirAsia to optimise monetary values and allocate capacity to maximise expected grosss. The optimisation is done on two degrees in AirAsia:
aˆ? Seat ( Every place is considered an chance to maximise gross. Seatings are available at assorted monetary values in different points of clip. A reserve done at a ulterior day of the month will be charged more than the one done earlier – for the same place )
aˆ? Route ( By seting monetary values for routes/destinations that have a higher demand when compared to others ) . The effectual method nevertheless is to unite these two degrees for all flights, all paths so that both the place and the path are efficaciously priced for all the flights.
AirAsia has realized increased gross ( 3-4 % ) for the same figure of aircrafts by taking advantage of the prognosis of the high/low demand forms, efficaciously switching the demand from low period to high period and by bear downing a premium for late engagements. Over the past twosome of old ages, AirAsia have really lowered monetary values ( indispensable for LCC ) as the YMS has given them the window to increase their gross by offering higher price reductions, more often during off-peak times while raising monetary values merely marginally for peak times. ( Voneche, n.d ) .
AirAsia ‘s CRS ( Open Skies by Navitaire ) has helped it to turn at a dramatic gait in the past twosome of old ages
“ Navitaire ‘s Open Skies engineering has genuinely enabled Airasia ‘s growing from 2 million riders to 7.7 million riders in less than two old ages. Open Skies scaled easy to suit our growing. ”
– Tony Fernandes –
CEO – AirAsia
Beginning: Navitaire ( hypertext transfer protocol: //www.navitaire.com/res_and_dist/openskies.asp )
It is an incorporate web-based reserve and stock list system. It includes Internet, call centre, airport going control and more. It is a direct gross revenues engine that efficaciously eliminates the jobber ( travel agents ) and the gross revenues committees that need to be paid to them. Centralized client informations is besides maintained by Open Skies and this helps AirAsia to track engagement and agenda flight activities with real-time, on-demand coverage characteristic. The huge engagement information that is provided online to the clients acts as a force that brings more clients to utilize the web site therefore cut downing the client support costs. An of import characteristic is that Open Skies seamlessly integrates with the already implemented YMS so that the systems can be used in unison for pricing and gross maximization ( by supplying information on engagements, agendas etc ) and driving down the costs of operation at the same clip. This CRS enabled AirAsia to present the first ticket less travel option and besides provides characteristics such as advanced embarkation base on ballss in add-on to online booking that enabled the growing of AirAsia as these characteristics attracted clients that did non hold the clip for buying tickets from counters and coming in 1 hr early for procuring a place on the aircraft. AirAsia have proposed to implement a Wireless Delivery System
( WDS ) to spread out its range via nomadic phones. With this, possible clients will be able to book tickets via their nomadic phones. This is a strategic move for growing as the Asia-Pacific part has a larger population of nomadic phone users instead than cyberspace users.
AirAsia has late ( May 2005 ) opted for a full fledged ERP system implemented by Avanade advisers. By implementing this bundle AirAsia is looking to successfully keep procedure unity, cut down fiscal month-end shutting processing times, and speed up coverage and informations retrieval processes. ( Microsoft Malaysia )
It can be said that Maybank has been ever be on the manner to better quality of their merchandises and services, thereby fulfill all the demands of their clients. In other words Maybank has been ever innovated its merchandises and services by execution of IT. If to look back to the past we can see that Maybank was the leader to present new engineerings to the market. For case, Maybank was the first to ship on a computerisation programme, First to implement the usage of ATMs and set up a shared ATM web with its subordinates, First to present Phone banking and First to present Internet Banking.
In 1981, Maybank was first Malayan bank to put up Automated Teller Machine ( ATM ) services. ( one-year study, 2009 ) . Since that clip Maybank increased the figure of ATMs, with each twelvemonth. ATMs give a batch of chances and benefits to the clients of the bank. Such as, entree to have history 24 hours/7 yearss a hebdomad, fast hard currency backdown, cheque book and statement petition, fund transportation between ain histories and financess transfer to third party histories. Furthermore, Maybank was first domestic bank to implement MAS electronic Ticketing at their ATMs, this enable Maybank clients ticketless air travel in Malaysia on Malaysia Airlines. Later, due to its enlargement to the South Asia markets Maybank launch the Maybank RegionLink Service. RegionLink Service allows Maybank clients in Malaysia, Singapore, Brunei and Philippines to entree ATM minutess at any Maybank ATM in these four states. To efficaciously usage and pull offing its ATM web every bit good as to enable their clients to hold a better service, Maybank uses automated Teller machine direction package from Diebold Inc.
Without a uncertainty, the Internet is one of the most of import technological progresss of recent old ages. The rapid development of information engineerings have created huge chances for companies to cut down operating costs, increase velocity and quality of their services, every bit good as the creative activity of extra benefits for their clients. Because of this and to make competitory advantage Maybank launch its Internet Banking.
Basically, Maybank launch Internet Banking through its on-line fiscal portal maybank2u.com in 2000. This portal convey the convenience of online banking for its clients, who can open an history, cheque balances, transportation financess, settle measures and store online via this site, which employs 128-bit SSL security engineering. Later in 2001, Maybank launch its E-bills service, which can be used merely by their clients. At that clip there were 325 concern administrations that were able to accept payment through cyberspace banking. Conducting financess minutess over the cyberspace has been convenient and speedy. This allowed the company to make RM 500 million monthly entire mean dealing. In 2003, Maybank launched Internet Banking Kiosks. It enable their clients to set about internet banking minutess in provided terminuss at its subdivisions.
To keep its leading place in cyberspace banking services, in 2006, Maybank launch Mobile Banking services in coaction with Celcom and Maxis. It was the first nomadic banking in Malaysia. It allowed Maybank clients to entree to the three most popular applications of Maybank2u.com: measure payment balance question and fund transportations. From that clip, Maybank clients have the convenience of set abouting selected banking minutess in existent clip via the nomadic phone.
In order to better its efficiency and service MayBank concluded a series of trades with companies such as CSC and Microsoft.The chief aim of IT substructure outsourcing understanding with CSC was to better their IT services to place it for planetary economic growing and, in the instance of major catastrophes, to cut down its recovery clip from three yearss to less than eight hours. The information centre was moved from Maybank ‘s headquarter to a secure and modern CSC installation. In add-on, CSC set up separate informations centre for catastrophe recovery that to the full duplicates all of the Bankss critical informations across all platforms. CSC besides provide coincident connexion between bank subdivisions, the chief informations centre and catastrophe recovery centre. This trade allowed the company to cut down response clip, to increase productiveness and transactional velocity.
An Enterprise Subscription Agreement with Microsoft Malaysia to follow a common package toolset for Maybank ‘s desktop applications has given Maybank the ability to advance greater communicating among employees and clients and to heighten cost efficiency. One of the consequences of this understanding was increasing efficiency and productiveness of the employees.
In general, the usage of information engineering has a important impact on the work of the endeavor. Consequence of IT can be both at the organisation, its efficiency, every bit good as to clients and their relationship to the company.
In the instance of Maybank, IT was one of the indispensable factors of growing and continued leading of the bank. Maybank ever has been a innovator in the debut of the usage of IT, which allowed the company to accomplish certain benefits. These benefits include competitory advantage, accomplishing the end of the company, better service for clients and increase net incomes and market portion.
Maybank was able to better their service through the usage of information engineering and information systems. Provision of banking and fiscal services through a web of ATMs and cyberspace banking has allowed its clients to entree their histories anytime and anyplace in the universe. Besides, the IT/IS have an impact on the decrease of dealing costs and the clip disbursement on dealing, that is convenient for clients. Customer relationship direction system has been significantly influenced by information engineerings. Increasing the ways of interaction between the company and clients, has given Maybank chance to increase and better apprehension of the demands and desires of clients. All this resulted in improved service and client satisfaction, every bit good as the obvious convenience for clients of Maybank.
Paying great attending to the usage and execution of IT, Maybank therefore making conditions for bettering efficiency and productiveness of their employees, every bit good as easing a depository of cognition and being able to portion this cognition across the organisation. In Maybank steadfastly believe that effectual cognition sharing is a beginning of competitory advantage. Besides supplying new merchandises and services Maybank has a competitory advantage. At the same clip, it is a impermanent competitory advantage, because rivals can subsequently come in the market with similar merchandises and services. Therefore Maybank is ever on the manner to better its service.
On the other manus, Maybank as a innovator in the debut of the use of IT has the “ first-mover advantage ” . This has a important impact on enlarging market portion. Besides, the IT/IS has an impact on the decrease of dealing costs and human capital costs. All this has allowed Maybank to increase net incomes and market portion.
Increased net incomes and market portion, competitory advantage and better service has given Maybank an chance to accomplish its end. Namely to go a prima banking group in Malaysia, and set the undermentioned end to go a prima regional banking group by 2015.
Technical advancement is coming more rapidly than of all time before, therefore, impacting all facets of a typical company. Today, it is critical to the company to utilize information engineering in order to work. It is become important factor for the Maybank to use IT/IS in order to vie in digital universe, where about everyone usage IT. Nevertheless, it is of import to retrieve that the most of import factor still is the people and companies such as Maybank besides need to put their money in staff preparation, in order to be competitory plenty or even to make competitory advantage. Because it is the people who create it.
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