MIS: Air Asia (assignment)

AIR ASIA

Assalamualaikum & Hi !

Today I want to share my MIS notes.. MIS stand for Management Information System. Recently I found this notes in my old laptop. So, I wonder if you guys need this notes especially Unikl miit students, I think laaa..  Just to highlight that my notes are not 100% correct, and you guys need to refer your lecturer ok!

You guys can subscribe my website to get updates for other notes. Kindly share or comment if you guys have any request or critic my english. I mention early la..My english is very bad, so who cares.. only malaysian love to critic my bad english.. hmmm.

Ok.. Lets start!

1.0 Introduction

Management Information System or called as MIS can be define as a set of the system which the combination of hardware and software that are helps the management at the different levels to take a better decision by providing the necessary information to managers. Besides that, Management Information System is a discipline and a profession that are brings information and communication technologies to the organization and society. By applying the information and communication technologies and system and it is also focuses on the concept and tools necessary for analyzing, design, planning, developing and managing organizational information resources. Since the Management Information System is ‘for the’ management, it is necessary that it also should have a very strong management initiative.

On the other hand, Management Information System and Information System are the different things. This is because Management Information System is an information management concept and technologies will change and have changed in the past but Management Information System and its requirement also the characteristics will broadly remain the same. The technology has always been and will be a platform for Management Information System nevertheless the technology mediation to provide the platform for Management Information System has increasingly grown over time. Technology has become an integral part of Management Information System but it is a much longer concept and critical in order to management decision making. The character of Management Information System is passive it only supplies information to the managers and the managers take decisions with the support of the management information system. Besides that, the system only supplies the background information on which such decisions are based.

2.0 Air Asia

2.1 Background Company

AirAsiaBerhad was a Malaysian low-cost airline. It operates domestic and international flightsschedule and the Asia’s largest low fare with no frills airline. AirAsia was an pioneer of low cost flights in Asia and it is also the first airline department in the region to implement fully ticketless travel and unassigned seats. Nevertheless in 5th February 2009, AirAsia has implemented allocated seats across all AirAsia planes including for their sister airlines which are Indonesia AirAsia and Thai AirAsia. The prime based in the Low Cost Carrier Terminal or LCCT at Kuala Lumpur International Airport or KLIA. Besides that, branch airlines which are Thai AirAsia and Indonesia AirAsia have their hubs at Suvarnabhumi Airport, Thailand and Seokarno-Hatta International Airport, Indonesia, accordingly. AirAsia was registered office in Petaling Jaya, Selangor meanwhile its headquarters is based in Kuala Lumpur International Airport in Sepang,Selangor. Furthermore, in 2010 AirAsia won an award for the best low cost airlines.

Other than that, AirAsiaBerhad is focused on the low costs, long-haul segment – AirAsia X was established in 2007 to provide high frequency and point-to-point networks to the long-haul business. AirAsia X is cost capability are derive from maintaining a simple aircraft fleet and a route network based on low-cost airports without negotiate on the safety. Further, AirAsia X’s efficient and reliable operation are fully licensed and monitored by Malaysians and international regulators, and comply to full international standards. AirAsia X was committed on offering X-citing low fares, X-emplary levels of safety and care and an X-traordinary in-flights and the services experience to all our guests. By that, they can spreading the amazing AirAsia experience to X-citing destinations in Australia, New Zealand, China, Hong Kong, Taiwan, Korea, Japan, India, Middle East and Europe.

2.2 Vision

To be the largest low cost airline in Asia and serving the 3 billion people who are currently undeserved with poor connectivity and high fares.

2.3 Mission

  • To be the best company to work for whereby employees are treated as part of a big family
  • Create a globally recognized ASEAN brand
  • To attain the lowest cost so that everyone can fly with AirAsia
  • Maintain the highest quality product, embracing technology to reduce cost and enhance services.

2.4 Objectives of AirAsia

  • Provide a product with the safety and quality as the first goals
  • Do job with the highest level of integrity
  • Prepare the employees through first-class training
  • Provide equipment that is well maintained
  • Select contractors, vendors and suppliers who meet the values
  • Value oversights from regulators and other organizations that enhance the system through checks and balances
  • Embed a continuous improvement ethos by learning from aviation industry experiences
  • Embed a ethical culture by maintaining openness with regard to safety and quality
  • Maintain a high level of environment consideration in all of our activities

3.0 Main business process and operation

Air Asia has fostered a dependency on Internet technology for its operational and strategic management, and provides an online ticket booking services to traveler online. The following shows the home page of AirAsia.com as the company key channel of marketing and sales. To book online ticket and flight with Air Asia, customer can choose either the following step channels or simply visit the AirAsia.com homepage and follow the 5 steps:

  1. Call centre
  2. Sales office and airport sales counter
  3. Authorized travel agents
  4. Mobile booking via mobile.airasia.com
  5. Online (http://www.airasia.com) in 5 easy steps as shown below.

The following shows the online electronic ticket ordering process:

Search Customer choose trip type, select the departing and arriving cities, departure and return date, and select number of guests and start searching the available flights.
Select Select a departing flight with the chosen from the available list to show the summary information of the flight and cost breakdown.
Guess and Contact Login with Air Asia member account and enter the guest information and contact person details
Payment The name of the guests will be displayed and verify the total price of flights and select one of the payment methods credit card, direct debit and e-gift voucher.
Itinerary Once the payment has been processed, customer flight Itinerary will be displayed on the screen and sent to customer email.

 

In management information system, there are three activities produce information organization needs, such as input (captures raw data from organization or external environment), processing (convert raw data into meaningful form) and output (transfers processed information to people or activities that use it).

Input Where the customer search information about online booking ticket
Processes Tickets orderer by the customer will be processed by computer systems online. Customers will pay the ticket biked bt credit card or member card of AirAsia-CitiBank or AirAsia Citibank Credit Cardplus
Output Where the customer can claim their ticket after payment is made

 

This system can be used by anyone who wants to use the Air Asia service. With this system, users can access easily to booking tickets, buy tickets, and so on.

4.0 Development of business strategies

4.1 Introduction to development of business strategies

When the competition in the airplane industry becoming though, complex, and rapidly change, AirAsia company as a company that joined in the airplane industry business need to thinking strategically and also must preparing a good strategic management.

The first reason is because the airline industry is a unique and complex industry. Based on the statement, the complexity and unique of the airline industry, AirAsia need to come out with the greatest strategy to compete with their rival in the same industry. Without the right strategic management, its possible AirAsia could not be able be compete with the complex business environment in the airline industry.

The second reason is because in a company nowadays, general management which is the process of achieving organizational goals by engaging in the four major functions of planning, organizing, leading, and controlling may not sufficient and supportive for the organization succeed in the world of complex environments. It concerns about the process to manage the company internally but do not concentrate more on creating competitiveness regarding environments affecting the organization.

The strategy that AirAsia need is not just how to reduce cost and make the operational activities running effectively. But, AirAsia needs to come out with the strategy that can make competitive position that the company performs different activities from rivals or performing similar activities in different ways to achieve their business successfully.

4.2 Diagram or framework

 4.2

 

Low-Cost-Carrier (LCC) Business Model
Simple Product ·         Catering on demand for extra payment

·          Planes with narrow seating and only a single class

·         No seat assignment

·         No frequent flyer programmed

Positioning ·         Non-business passengers, especially leisure traffic and price conscious business passengers

·         Short-haul point to point traffic with high frequencies

·         Aggressive marketing

·         Secondary airports

·         Competition with all transport carriers

Low Operating Costs ·         Low wages

·         Low airport fees

·         Low costs for maintenance, cockpit training and standby crews due to homogeneous fleet

·         High resource productivity

·          Short ground waits due to simple boarding processes

·         No air freight, no hub services, short cleaning times, and high percentage of online sales

 

4.3 The Strength and Weakness

To figure out the internal factor such as strengths and weaknesses, a SWOT analysis of AirAsia can be conducted and show below

Strength

By using the internet as a marketing tool to distribute electronic newsletters and order form via Internet directly meet the needs of users. This approach provides significant advantages for the industry to gather information and will help them better develop products and improve service quality. Internet will help to access new customers around the world and allows simplifying the procedure. Such as the integration of sales, marketing, distribution and travel daily operations as well as provide special packages for corporate travelers. Utilize e-ticketing and bypass traditional travel agents, AirAsia saved on the cost of issuing physical ticket, eliminating the need for large and expensive booking/reservation systems, and agents’ commissions. AirAsia subsequently made its tickets available via post offices and designated bank teller (ATM) machines, increasing accessibility to consumers while having lower distribution costs, gaining more market share in the process.

Weakness

Hackers can hack into certain data storage and access to the network. There is an identity crisis and an invasion of privacy issues. Therefore, the digital security must be protected. With its reliance on IT, there is a risk of system disruption due to AirAsia’s heavily reliance on online sales: any flight delays or calling their customer line to confirm bookings would indicate that AirAsia’s system is not robust enough to handle booking efficiently. This would result in the loss of customers, as confidence and satisfaction levels drop, affecting profitability.

5.0  Implementation of business strategies

5.1 Existing technology in Air Asia

  • Yield Management System (YMS)

Yield management system is known as revenue management system. This system understands, anticipates, and reacts to the behavior of customer to maximize revenues for the organization where it takes into account the operating costs aids for Air Asia to optimize price and allocate capacity to maximize the expected revenues. In Air Asia they have done two level of optimization which is Seat and Route. For Seat they consider it as an opportunity to maximize revenue because seats are available at various prices in different time. So if a reservation done at a later date, they will be charged more than the one done earlier for the same seat. Meanwhile for Route it consider as the adjustment of price when the demand is higher compared to other. The effective method is to combine these two levels for all flight so that the seat and the route are effectively priced for all the flights.

  • Computer Reservation System (CRS)

CRS is an integrated web-enabled reservation and inventory system suite powered by Navitaire Open Skies technology that includes Internets, call center and airport departure control functionality. Beside that this system also centralized customer data where it helps Air Asia to track booking and schedule fight activities with real-time and on-demand reporting feature. Besides that, this system also  integrates with the already implemented YMS so that the system can be used in unison for pricing and revenue maximization and driving down the cost of operation at the same time.CRS also enabled Air Asia to introduce the first ticket less travel option, advanced boarding passes and  online booking that enabled the customers that did not have the time for purchasing tickets from counters and coming in 1 hour early.

  • Enterprise Resource planning system (ERP)

Air Asia has use ERP solution powered by Microsoft Business Solutions (MBS) on Microsoft technology platform which is implemented by Avanade consultants in MA 2005. With this ERP technology platform, Air Asia is able to successfully maintain process integrity, red financial month-end closing processing time, speeds up reporting and data retrieval process.

  • Suggestion for Air Asia
  • Transaction Processing Systems (TPS).

This is because most of an organization’s daily activities are recorded and processed by its transaction processing system (TPS), which receives input data and converts them into output information intended for various users. This system can be useful for Air Asia customer as it help them by saving time because by applying this system, it’s faster and more accurate to enter any data. Transaction processing system also can help Air Asia in keeping track of their customer information.  This helps in reducing the possible complexity that the employees may face in physically keeping contacts with the customer.

  • Management Information Systems (MIS).

For Air Asia they should implement MIS system which is used to produce periodic reports such as a daily list of employees and the hours they work, or a monthly report of expenses as compared to a budget. Air Asia can use MIS because the purpose of MIS is to provide profitability and information to help managers and staff understand the business performance and plan its future direction.

  • Travelling planning system.

By having this system, the customer of Air Asia can create their own travel plan. In this system they should be able to get information on the services that have on destination that they have chosen such as hotel transportations maps, restaurants and other services.

  • Flight notification system

This is because by using this system, it help and give ease to the customer of Air Asia where with this system they can alert the customer on the departure or delay  time, display the gate information and other. This system can help them on stay alert and avoid on missed flight.

  • Frequently Flyer program

This is where they can provide a program for the members who have memberships as a reward for them. This program can be done by the company where they collect point on every member who uses their services. By having this program it can advertise the company more.

  • Upgrade Customer care services

This services  should upgraded their web based self services such as e ticket booking, online baggage and air internet services so that it will increase rating in customer satisfaction. Maybe in this new system they can add other services like menu display, transportation services and other.

  • Mobile application.

By using this application it should be easy for the customers to make reservation and ticketing. Beside that using this application they can easily search for a roving agent check-in, internet check-in and phone check-in. In this mobile application, the customer payment is easy as the customer can use their mobile phone when making payment on booking ticketing. This will ease the customer as it will reduce the queue at the counter.

For the conclusion, hopefully Air Asia can give a great competition toward other company in term of services and technology. Besides that, by using all this suggestion can also help them increase their revenue and their customer satisfaction especially in gaining customer loyalty.

6.0 Conclusion

In a nutshell, as AirAsia was leading the low cost airlines in the region, they fly to around 12 countries through more than 106 routes to 56 destinations. For the people who are travel a lot, they can enjoy the low fares but flexibility and convenience through their flight schedule more often. In order to buy the tickets, they can book the tickets via online booking system that are allows them to do the transaction simple and efficient. In fact, they can make the reservation at 3 hours before departure time by just logging on the system. Therefore, these airline tickets are not only for those who can afford it but it can also be purchased by people in middle class. Thus, by travel with the AirAsia airlines, customers can go to the destination that they want with the low fares instead of buying the high fares tickets.

 

REFERENCES:

I forgot where I put the references.. So you need to find yourself laaa.. All the best guys, and good luck =)

 

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