Managing Information System Company Background Established

Managing Information System

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 Mission Objectives • An airline uniquely renowned for its personal touch, warmth and efficiency. • To be the World’s five star value carrier • To be the airline of excellence • Going beyond expectations • 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. • 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 Automate the tracking and scheduling of the flight’s crew’s timetable Cabin Crew Tracking Tracks the position of the crews and handles crew pattern disruptions

Passenger Service Systems ü Reservations – A new, more efficient and functionally rich system, to meet today's industry standards and requirements ü Ticketing - Self service to passengers including Kiosk and web check-in ü Departure Control – Fast, reliable and comprehensive check-in options that enhances passenger’s experience. Boards wide number of passengers. ü Revenue Integrity –Enables MAS to perform real-time reviews of bookings as they are made to identify unintentional and deliberate booking rule violations. ü Fares Management - Pricing decision support tool that allows

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 Ø Poor customer handling system Ø Customer database is not managed effectively Ø Large investment in IS but employees not competent to use the system Ø Bureaucracy in decision-making delays the solution to be delivered to customer Ø Customer feedback and queries were not responded timely and often delay

The disadvantages of current IS Ø No actions taken regarding customer complaints Ø No provision of prompt ticket refunds Ø No responsiveness to customer enquires Ø 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)

Example of MAS Customer Service problems… 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 can’t 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)

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? v. It’s a strategic business priority v. Focusing on winning, growing and retaining high value customers v. Maximizing customer knowledge in terms of customer value and customer needs v. Develop personalized services and improving customer service efficiency for high value customers v. 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: - q. Review q. Prioritize q. Install q. Implementation q. Support

Project Plan (cont’d) q. 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 (cont’d) q. Review results on MAS’s 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 (cont’d) q. 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 (cont’d) q. 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 (cont’d) q. 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 golive and in its production stage. During this stage, all aspects are carefully monitored and noted down for further analysis.

Project Plan (cont’d) q. Implementation Proposed Timeline Year 1 Year 2 Year 3 Year 4 System Installation Training Plans Testing Go-Live and Monitoring Gantt Chart: Implementation Plan of CRM in MAS for 5 Years period Year 5

Project Plan (cont’d) q. 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 v 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. v 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.

Benefit for the business from Customer Relationship Management System v 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. v 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. v 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 (cont’d) v Building the trust MAS can rebuilt the trust of their quality service by providing the best customer service through the online system. v 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. v 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.

IS: Benefit of SAP 360 Customer v 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. v 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. v 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.

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