Asiana airlines’ case

Group 520090498 Kim Han-gil20090021 Baek Seung-won20090631 Jo Poongjin

Index1. Overview

2. Problems that the firm is faced with

3. SIS that be used

4. Improvements

5. Conclusion

Overview

Two main airlines in Korea

Member of Star Alliance Won many awards and ranked 5-star

Problems that the firm is faced with

International oil price and KOSPIKorean won-US dollar exchange rate

High oil price and Immediate jump exchange rate

Global financial crisis and economy depression

In 2008,

SIS that be used(1) – BI

BI Business In-telligence

Computer-based tech-

niques

Identifyingdata

Extractingdata

Analyzing data

SIS that be used(2) – ARMS

Data Ware-house

Comparing reservation data

Inspecting reserva-tion demand

Providing reservation service to customer

SIS that be used(3) – Value ChainFirm infrastructure construct and amplify from RMS to ARMS with BI

Human resources management motivating stewardess with CDP(Career Development Path) and performance management system

Technology development develop IT with computer reservation sys-tem, construction of VPN(Virtual Private Network) and establishment of Asiana IDT

Procurement construct ACTS(Asiana Cargo terminal system) and win a gold award of airline procurement

Inbound Logistics Asiana IDT apply RFID(Radio Frequency Identifica-tion) to be more accu-rate

Operations adopt FOQA (Flight Opera-tional Quality Assurance) to monitor flight and control quality

Out-bound Logistics Allocation of stores to service internet shoppers

Marketing and Sales With ARMS(Asiana Revenue Man-agement Sup-port System), optimize flight and use sea-sonal factors

Service introduce airplane's spare en-gine

Value added less Cost = Profit mar-gin

SIS that be used(4) – P5CFM

Competitive Ri-valry within an

industry Korean air, For-

eign airline com-panies

Threat of New En-trants

Low because of a huge entry barrier

Bargaining Power of Cus-

tomersSmall because

customers have limited choices

Threat of Substitute Products

Low because airplane is the most fast transportation

Bargaining Power of Sup-

pliersVery huge be-

cause of a small number of sup-

plier

Reengineer-ing

•Rethinking and radical redesign

• Made to an organization's existing re-sources. It is more than just business im-provising.

1) Organize around outcomes, not tasks

2) Have those who use the output of the process perform the process

3) Subsume information-processing work into the real work that produces the information

4) Treat geographically dispersed resources as though they were centralized

5) Link parallel activities instead of integrating their results

6) Put the decision point where the work is performed, and build control into the process

7) Capture information once and at the source

Principle of Hammer

SIS that be used(5) – Hammer

Use Data warehouse with ARMS

Customers register their private profile personally

Improvements

VCTechnology develop-

mentUAV(Unmanned aerial ve-

hice)

ProcurementCTS(Cargo Traffic System) and TMS(Terminal Management)

RFID(Inbound Logistics-> Service)

INT-900H of RFID(keep life jack-ets)

P5CFM

Competitive rival within in-dustry

Appeal their advantages

Bargaining power of sup-pliers

Join hands with suppliers

Conclusion

Overcome rival

Successful adoption of IS

Apply ARMS with BI

Q&A

Thank you