AirAsia is one of the Malaysia Flight that established for everyone who dreamed of making flying to reach ones vacation spot. Since 2001, AirAsia has been broadening swiftly with the major low fare airlines where everyone can travel with affordable price and AirAsia has also awarded for the planet best low cost airline in time 2010 (Miller, P. , 2010) [Online]. Let's put it in this way with a straightforward slogan, "Now Everyone Can Take a flight", Malaysia's AirAsia has effectively carried out and positioned in customer's head with the greatest low-cost traveling trip and largest customer base.
'Go Holidays' made available from AirAsia at the low-cost soaring trip, whereby they also offer hostel, hotels, car local rental and holiday packages at discounted rates. Reservation or reservation of airplane seat tickets can be done at www. airasia. com. Besides, AirAsia provide services such as Low Cost Carrier Terminal (LCCT) and AirAsia's bus travel to KLIA at the low cost. According to The Star report under the business section, AirAsia is currently released that several international airports in Malaysia and local countries will offered a self applied check-in service and then for more convenience, customers can also use web-based check-in service (The Legend, 2010) [Online].
In the year finished 2009, AirAsia reported a online revenue of RM549. 1million, a growth by 11% compared to the lack of RM 496. 6 million incurred during 2008 (The Legend, 2010) [Online].
1. 2 Types of Information System
There are few types of Information System were in use in AirAsia, such as Computer Reservation System (CRS), Customer Romantic relationship Management (CRM), Organization Reference Planning (ERP) System, and Advanced Planning and Arranging (APS) system.
CRS is your personal computer system used in travel industry that allowed storing, retrieving data and conducting transactions. This technique was made by airlines. AirAsia used this system is to allow users to gain access to and check seating availability, air travel schedules, air travel fare, arranging reservations and creating tickets.
CRM is a couple of applications that give companies to gain insights into customers changing needs, needs, and behaviors to be able to better serve them (Haag and Cummings, 2008). This applications help AirAsia to analyse customers' contact, such that it enable AirAsia to maintain and update electronic customer profile. Moreover, CRM also help update online answers at AirAsia's web page - frequently asked questions (FAQs) about their services, such as booking, online repayment and etc.
ERP is the info systems to combine the data from different practical areas of a business, such areas as planning, manufacturing, order access, inventory management and so many more (Oz, 2008). This system also help in planning and invite companies to operate more efficiency since it avoid duplication of information and avoid rework (Oz, 2008). AirAsia uses ERP system is to capturing daily operation's transactions, manage its resource chain, and also helping to save its daily functional costs as well as to increase the operational performance to become more efficiency (Microsoft Press Forward, 2005).
APS is a type of system also known as making management process. This system is used for supply chain planning in the sense it uses information from ERP for planning and arranging operations (Muzumdar, no time frame)[Online]. APS also can be used to songs costs based on the actions in the development of produced goods. However, credited ERP system will not provide for better supply chain management to analyses the flexibility and cleverness required put in place by AirAsia. AirAsia therefore use APS system really helps to improve AirAsia's proper and operational performance, classifies and clusters orders from customer, and inspections resources supply.
2. 0 Benefits from System Adoption
2. 1 Customer Romance Management (CRM)
A good CRM is important for AirAsia to success in flight industry. With CRM, AirAsia's personnel will easily understand and meet customer's needs and desires. The advantages of CRM are such as:
(i) Reduce Working Costs:
By using CRM system, work and activities done by AirAsia can be more systematic and coordinated. This will help AirAsia to remove waste of funds, such as AirAsia use web or e-mail to handle some customer's concerns or problems rather than by way of a call centre. This results labour cost will be reduced and business businesses will become more effective and reliable. CRM can also help AirAsia to organise customer communications if AirAsia facing troubles, such as challenges to keep multiple mailing lists for different groups of customers.
(ii) Development of Better Relationships with Customers:
Using CRM helps AirAsia to build up their customer's romantic relationships. CRM systems provide reliable sources to deal with AirAsia's customers in sales, marketing, and service to enhance revenue, customer satisfaction, and customer retention (Laudon and Laudon, 2010). The good thing about using CRM is basically because this technique provides a better service to customers. For example, on the first webpage of the AirAsia Website, which includes stated the member sign in button which has proven that AirAsia always established their customers as the first priority in every account. The great things about becoming AirAsia users are information provided to customers will always one's step ahead from others (ie. promotional reservation offers, news changes, etc). All customers' particular data are fully secured and will be assured for personalization from AirAsia. (Azleen Ilias et al. , 2009)[Online]
2. 2 Enterprise Learning resource Planning (ERP) System
There are many different benefits and reasons why AirAsia choose and deploy ERP systems. They are as follow:
(i) Lessen operating costs:
The ERP systems permit to help AirAsia to reduce operating cost and it's an advantage when AirAsia is working company analytics. The major benefits associated with ERP are increased the coordination of AirAsia's process into one streamlined process where all information can be accessed across departments through an individual enterprise wide information network (Anthony, 2005)[Online]. Additional reap the benefits of implementing ERP systems are reduced working cost, such as lower the price of creation, marketing, inventory control, and help desk support (Anthony, 2005)[Online].
(ii) Facilitate Day-to-Day Management:
Facilitating day-to-day management activities is also one of the huge benefits from ERP systems. In promotes the establishment of backbone data warehouses (Anthony, 2005)[Online]. The implementations of ERP systems allows employees to access real time information which helps with research, decision making, and managerial control (benefitsoferp, 2010)[Online]. Besides, it also can perform activity founded costing and helps AirAsia to track activities' genuine costs (Anthony, 2005)[Online].
2. 3 Advanced Planning and Scheduling (APS)
There are certain benefits which is often within APS system. They are as follow:
(i) Visibility Across The Whole Supply Chain:
The good thing about using APS system is awareness across the whole supply chain. The supply chain management system will ensure each get together, (ie. suppliers and customers) works mutually in integration in conditions of cross-functional scheduling and planning. So that AisAsia will have better connectivity across the supply string (Muzumdar, no night out)[Online].
(ii) Optimizing income management (Anon, 2010)[Online]:
The most influencing element in AirAsia's strategy is the purchase price, it is because the air travel competing in the reduced cost market. Development analysis also benefited in that the APS system is designed to Maximised revenue of AirAsia by the prevailing YMS system and optimizing price strategy. Alternatively, AirAsia's operational cost will be reduced by APS system by using YMS system to generate information to improve AirAsia's plan and plan for the facilities needed (Muzumdar, no day). The integration of YMS system in to the APS system ensures revenue optimization.
3. 0 Pitfalls to Avoid
3. 1 Customer Marriage Management (CRM)
Although CRM systems have helped bring advantages to AirAsia, but you may still find some pitfalls can be found. AirAsia therefore should avoid these pitfalls otherwise a significant effect may cause AirAsia incorrectly operate. Listed below are the pitfalls need to avoid.
(i) Inadequate training on the CRM software (Anon, 2010)[Online]:
Anytime when a new system is introduced, employees feel lack of confident to make use of it and they will always stay away from from using it. Many training consultants proposed by CRM software suppliers visit AirAsia throughout their rollout phase and for refresher sessions (Anon, 2010)[Online]. This technique is highly encourage to be provided as satisfactory training will get to employees and money saved in the long run even-though it is costly and time consuming (Cost Vs Benefits analysis).
(ii) Misunderstanding customer needs (Anon, 2010)[Online]:
Sometimes, pointless time taken to service the customers and not giving good services will have an effect on AirAsia's image. AirAsia therefore should react to customers when it's needed. For instance, in the CRM process, CRM supervisor should organize and reply the customers' inquiries that require the fundamental information through easy-to-use access. At the same time, get feedback from customers is prompted so that able to improve company's CRM system in future.
3. 2 Venture Resource Planning (ERP) System
There are some typically common pitfalls to avoid when AirAsia utilizing ERP systems. These are the following:
(i) Insufficient Time and Manpower Required For Execution (Mutt, 2010)[Online]:
When there is a lack of time and employees required for implementation, AirAsia may over burden the employees with the regular work by giving them extra tasks on ERP implementation (Mutt, 2010)[Online]. This will lead employees could not perform the ERP software properly as they are already over stress with their regular work. In order to avoid this happen, AirAsia should workout an effective time program for ERP implementation process and working time of each staff so that every employee may contribute according to their ability along the way (Mutt, 2010)[Online].
(ii) Poor Collection of ERP Software (Mutt, 2010)[Online]:
There are multiple reasons result the poor selection of ERP software, however the most typical cause is due to inability to personal information the practical requirements. Proper mix checking of the merchandise not aligned with the designed and produced functional requirements, lack of detailed review of the merchandise and its own characteristics also lead to poor selection which may result AirAsia are unsuccessful in utilizing ERP properly. Therefore, to avoid this, employees of the business by any means levels should be in charge and mixed up in testing and analysis of the product. Assistance from the external expert can be studied to improve the system. Besides, successful implemented ERP from the same industry can be use and refer for the improvement purposes.
4. 0 Conclusion
In the modern world, the business among air travel industry is becoming more competitive and very difficult. Every company in flight industry is trying to use some strategies to compete with one another. To survive in business world, AirAsia needs to achieve their long terms objective and compete with their rival in the flight industry.
AirAsia has been so successful in LOW PRICED carrier (LCC) among all the competition in flight industry until today and many travellers wish to travel by choosing AirAsia because they offered low fares with no hidden charges, interesting advertising packages, and many more. Recently, AirAsia got offer mobile booking via SMS (Short Concept Service) and AirAsia is the first flight on the globe provides this service.
Last however, not least, CRM is a robust competitive tool that always functions customers better by understanding their needs, needs, and behaviours. Throughout the AirAsia's website applications, they can provide most reliable and potential airline services to customers.
5. 0 How AirAsia should use Information Systems for the future, concentrating on the competitive advantages of IT
As a CEO (Chief Executive Officer) of AirAsia, for AirAsia to enhance the performance and management of AirAsia successfully in future, few competitive benefits of IT are had a need to focus. However, the most crucial information system should give attention to is Customer Romantic relationship Management (CRM).
First of all, AirAsia shouldn't method of CRM effort development that is learning from other competition, for example fast check-in system by installing kiosks. In order to identify from other competition in travel industry, AirAsia should carry out CRM program and only investing in initiatives with a high return, that may respond to customers' needs and desires. Therefore, in order to maintain competitive advantages and profitability, AirAsia should foster the romantic relationships between customers (according to Hillman and Keim).
In the business enterprise world, company won't compete keenly against company, but will be competitive network against network. For example, MAS (Malaysian Flight System) does not compete keenly against AirAsia. Their individual networks compete. AirAsia and MAS, both are low fare airlines. In order to attract customers to travel, AirAsia always advertise their offers through AirAsia's website and newspapers with the most affordable price. Without doubts, poor network services will not have a good relationship in long run. Therefore, network has to interact with CRM to provide great value of information to customers and solve customer's problems, is a source of great competitive advantage.
Lastly, a simple notification distributed by AirAsia to customers is definitely an chance of a appreciated dialogue. The execution of CRM is to make a valuable customer relationship and with both basic functions that are marketing and the client experience. Marketing is required to build pledges with customers, control the dialogue element of the customer marriage, and motivate customer purchase behaviour. The client experience is to provide on the offers, represent the service component of the customer romantic relationship, and reinforce customer purchase behavior. Time is special, quick and quick to react to customer's email or Text message (Short Note Service) is vital. Dissatisfaction of customers is also very important because it provide excellent feedbacks to enhance the quality and value-added of AirAsia.
