CT006-3-1 Computing and IT in the Workplace

Table of Contents

Marking Grid..............................................................................................................................1

Team Member particulars...........................................................................................................2

Abstract......................................................................................................................................3

Introduction................................................................................................................................4

Current Scenario.........................................................................................................................5

Objective....................................................................................................................................7

Functionality..............................................................................................................................8

Impact of Technology...............................................................................................................11

System Limitations...................................................................................................................13

Recommendations/proposals....................................................................................................14

Conclusion................................................................................................................................15

Individual Research..................................................................................................................16

Radio Frequency Identification, RFID (Toh Ke Jian)..........................................................16

Carpal Tunnel Syndrome, CTS (Dara).................................................................................19

Video Conferencing (Yushreen)...........................................................................................20

Virtualization (Lim Wei Chun).............................................................................................24

Reference..................................................................................................................................25

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Marking Grid
Assessment Criteria Marks
Marks
(100%) Given

a) Documentation
Materials are presented professionally using
10
correct grammar, punctuation spelling and length.
Addressed report guidelines.
b) Coursework structuring
 Introduction
10
 Main body
 Conclusion/ Recommendation
c) Research & References
Supporting research clearly explained and
presented. Thoroughly lists references that are 10
relevant to the topic. This includes Harvard
GROUP citation & referencing for all facts and diagrams.
(70%)
d) Argument Coherence
Paragraphs are in a logical sequence to the whole 15
and flows logically into the next.
e) Group Analysis
Justifications and analysis
 Introduction
 Current scenario
25
 Objective
 Functionality
 Impact of the technology
 System Limitations & Recommendation
Dara Yushr
Toh Lim
Tume -een
f) Individual Analysis Ke Wei
-nbay- Rusm
Identify and discuss the concepts learnt in this Jian Chun
15 eva -aully
module

INDIVI
DUAL g) Original Ideas & Critical Thinking
(30%) Clear evidence of original ideas and critical 10
thinking
h) Research & References
Supporting research clearly explained and
5
presented. Thoroughly lists references that are
relevant to the topic
Total Group Mark 70
Total Individual Mark 30

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TOTAL MARK 100

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Team Member particulars

Individual Research

Student Name Topic Student ID

S1 Toh Ke Jian Radio Frequency Identification TP037582

Device (RFID)

S2 Tumenbayeva Dara Carpal Tunnel Syndrome (CTS) TP037241

S3 Rusmaully Bibi Yushreen Video Conferencing TP036922

S4 Lim Wei Chun Virtualization TP037408

Group Research

Student Name Topic Student ID

S1 Toh Ke Jian Objective TP037582

System Limitation and
Recommendation
Referencing

S2 Tumenbayeva Dara Introduction TP037241

Impact of technology

S3 Rusmaully Bibi Yushreen Abstract TP036922

Functionality

S4 Lim Wei Chun Cover page TP037408

Table of contents
Current Scenario
Conclusion

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Abstract

This study aimed to investigate on one of the computer system of the organization namely
AirAsia. AirAsia is an airline industry which was founded in the year 1993 and commenced
its operations on 18 November 1996. Starting from the efficiency of information technology
on AirAsia which helped it prosper accordingly from the very beginning. However, this
airline industry comprises of many computer systems and the one which will be mainly
emphasized on, is the Computer Reservation System (CRS). Firstly, the aims and objectives
of CRS will be discussed, following with the step by step processes of the mentioned system.
Moreover, there is the alternation that technology brought towards the airline industry and
also measures such as RFID, CTS, Video Conferencing and Virtualization that will assure
efficiency regarding the department that deals with products and services of the particular
organization will be elaborated. Lastly, is the problems faced by the system and the ways of
how to overcome them.

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Introduction

With a strong yet simple slogan “Now Everyone Can Fly”, AirAsia has effectively placed its
brand in customer’s mind when comes to selection of flight. AirAsia is one of the most
popular and widely known company all over the world because of its ability making flights
comfortable and cheap at the same time. It has a fleet of 72 aircrafts, which allows them to
make more than 400 flights daily and fly over the 61 international and domestic places
located in Malaysia, Thailand and Indonesia. (2)

Nowadays AirAsia Berhad is Asia’s leading airline, which gives everyone an opportunity to
fly. However, nobody could expect that it will be successful several years ago. It was
established in 1993 by a conglomerate of Malaysia, DRB-Hicom and began operations in
1996. The most interesting fact about AirAsia was that it was sold only for RM 1 (about 0.26
dollar) to Tune Air Sdn Bhd, a company of Tony Fernandes in 2001 and as part of the
purchase he took up a RM 40 Million debt. Tony proceeded to engineer a remarkable
turnaround, turning profit in 2002 and launching new routes from its hub in KLIA at
breakneck speed. In 2003, AirAsia opened a second hub at Senai International Airport in
Johor Bahru which is near Singapore and launched its first international flight to Bangkok.
AirAsia has therefore started a Thai subsidiary, added Singapore to the destination list, and it
commenced flights to Indonesia. For the following three years AirAsia opened the routes to
Macau, Mainland China, Philippines, Cambodia and Vietnam. Up to this day, AirAsia are
able to fly to all ASEAN countries and to European countries like UK and France, Korea and
Australia as well using its long-haul carrier AirAsiaX. (4)

2. http://www.slideshare.net/Prabhdeep8421/air-asia-12182484

4. http://www.academia.edu/4780522/AIR_ASIA_AIRLINES_COMPANY_COMPANY_B
ACKGROUND_Air

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Current Scenario

In today’s globalize economy, information technology has driven fundamental changes in the
nature and application of technology in business. The implementation of information
technology provides powerful strategic and tactical tools for AirAsia, which if properly
applied and used, could bring great advantages in promoting and strengthening the
competitive advantages. (1)

AirAsia has some strategies initiatives which involve IT solutions in order to build its
company share and reputation. In order to make its operation effective and efficient, AirAsia
has implemented few IT systems in its marketing and sales activities. As you know, E-
Commerce nowadays has become a business tool and it is also a vital strategic management
that allows a company to sell, advertise, purchase, supplies inventory tracking as well as
sharing of information. Therefore, E-Commerce does become a major success to Airline
Company that lead to effectively and efficiency in their business. AirAsia is one of the airline
companies that implements E-Commerce and maximizes their information technology usage
to manage their company effectively and efficiently including make low cost possible in their
business. (2)

In order to maximize their IT, AirAsia has implemented advanced IT systems, for examples,
Yield Management System (YMS), Computer Reservation System (CRS), and Enterprise
Resource Planning (ERP). These systems have indirectly generated extra revenues and build
customer loyalty for AirAsia. (2)

Yield Management System (YMS) anticipates and reacts to the behaviour of customers to
maximize the revenue by taking into account the operating cost and aids AirAsia to optimize
prices and allocate capacity to maximize the expected revenues by 2 levels. Seats are
available at various prices in different points of time. AirAsia are also able to maximise
revenue by adjusting prices for routes to certain destination that have a higher demand when
compared to others. This results in increased revenue by 3-4% by taking advantage of the
forecast of the high and low demand patterns. YMS has aided AirAsia to increase the revenue
by offering higher discounts, more frequently during off-peak times while raising prices only
marginally for peak times. (1)

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Computer Reservation System (CRS) is an integrated web-enabled reservation and inventory

system suite powered by Navitaire’s Open Skies technology that includes Internet, call centre,
and airport departure control functionality. It satisfies the unique needs of AirAsia
implementing a low-cost business model to transform the business process to efficiently
streamline operations. It helps AirAsia to grow at a dramatic pace in the past few years. (1)

Enterprise Resource Planning (ERP) system is a packaged of business software that integrates
organizational processes and functions into a unified system. It helps business management
executives with a comprehensive overview of their complete business execution which may
influence their business decisions indirectly. ERP System groups up all individual software to
work under one umbrella and all the departments can share information easily which helps to
save time and cost. In addition, ERP system helps to reduce the need to carry large
inventories which will increase the operational and labour costs and this system is
implemented in AirAsia thoroughly.

Utilization of Information Technology (IT) have directly contributed to the promotional

activities, enhance brand equity, and keep the cost as low as possible by enable the customer
to direct purchase the ticket online or through sales offices. This has helped the customers to
save airline agent fees. The systems that have been implemented by the AirAsia have a
significant change to their company. (2)

ADDRESS CRS

1) Retrieved from: http://www.slideshare.net/Prabhdeep8421/air-asia-12182484

2) Retrieved from: http://www.ukessays.com/essays/business/case-study-air-asia-business-

essay.php#ixzz3SLwi6ePe

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Objective

Computer Reservation System (CRS) is one of the many computer systems in AirAsia. CRS
is one of the multi-functional systems which aims for a better service in the airline industry.
The usage of CRS is among one of the most critical ones in the aviation industry. Basically,
without which no airline industry would be able to operate including the AirAsia Company.

CRS allows customers to easily make a reservation through on the Internet and enable
reduction of employees. This shows that the customers do not have to spend their time going
to the airport to buy a ticket. It is convenient for the customers to make travel arrangements
anywhere and provide ability to save cost for AirAsia. It helps to update data for reservations
and make changes to one’s reservations. Moreover, CRS is also built to summarize data and
analyze past data to check the company’s past result which helps the company to know as to
when they have been at their most efficient and what might make them reduce losses and be
profitable. Therefore, having all these done with and through the CRS and not by human’s
capabilities will help the company save cost and time. They will be able to implement
changes that will eventually benefit their company and enable them to avoid any unwanted
risk.

The CRS can be used to help AirAsia develop their relationship with the customers as this
system can provide better services to the customers’ need. This system also enables AirAsia
to have a more effective and efficient plan in managing their company in future. In the other
words, by using this system the AirAsia can really improve a lot in company management
and the customer reservation.

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Functionality

Computer Reservation System (CRS) is a unified web-based reservation and inventory

system which consist of Open Skies and New Skies. Firstly, the Open Skies system is a built-
in web enabled reservation as well as inventory system. The solution is built purposely in
order to fulfill the typical needs of airlines that either put through a low cost business or in the
process of devising their business to more competent streamline operations. This system can
also be utilized either singly or merged yet it depend on the person's needs. Open Skies
assists some low priced airlines in the world to turn to a superior performance business that
keep on growing to a great extent.

SPLIT NEW AND OPEN SKIES

Furthermore, New Skies is a next generation of reservation and distribution system. New
Skies is devised for the world's fastest growing airlines which comprises of newly established
airlines and also rapidly growing hybrid airlines such as AirAsia. This system is a broaden
airline passenger sales and management solution that provides capabilities for integrated
online booking, call center reservations, inter-airline and alliance code-share itineraries,
departure control as well as travel agency global distribution connectivity. New Skies is based
on the Navitaire's Open Skies reservation and distribution system that have been used by over
40 of the world's productive airlines. It stand for a giant jump advance in rapid deployment,
hasten to market with the new features and enhancements. New Skies has completely
integrated departure control and real time reporting to keep your operation runs smoothly. It
is also very easy to use, change and customize.

Moreover centralized customer data is also sustained by Open Skies and it facilitates AirAsia
in the tracking of booking and schedule flight activities with real-time, on-demand reporting
feature. The immense booking information that is rendered online to the customers functions
as a drag that cause more customers to use the website hence decreasing the customer support
costs. Furthermore, a crucial characteristic is that Open Skies seamlessly merges with the
existing implemented YMS so that the systems can be utilized in unison for an optimum
pricing and revenue (by providing information on bookings, schedules etc.) thus reducing the
costs of operation simultaneously. (2)

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STATE THE STEPS

However, in order to make an online booking and fly with AirAsia, customers can either opt
the following step channels or simply visit the AirAsia homepage and follow the five steps.
The five steps are as follow; Call center, Sales office and airport sales counter, authorized
travel agents, mobile booking via mobile airasia.com or online (http;//www.airasia.com)

1.Sales office 2.Online Booking

Source: http://sheueyi-lam.blogspot.com/ Source:http://sheueyilam.blogspot.com/

3.Mobile Booking
Source: http://sheueyi-lam.blogspot.com/

Furthermore, there are many steps when making an online booking ticket via internet. Firstly,
there is the input process which comprises of three steps. The first step is regarding the
choosing and finding of the trip type, departure and arrival in the cities and also the date of
departure and arrival. Secondly, the customer need to select a departing flight with the chosen
time and cost from the available list to provide the summary of the flight and cost partitions.
Thirdly, it is required to login with AirAsia member account and fill in the required
information of the individual.

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The fourth and fifth steps are the outputs. The fourth step is regarding the verification of the
overall price of the flight thus, choosing one of the payment procedure that is the use of the
credit card, direct debit and e-gift voucher. The fifth step is basically where the selected flight
route will appear on the screen and also be sent to the client’s email. Moreover, as soon as the
payment has been cleared, the customer can claim their ticket. (1)

Link 1: http://sheueyi-lam.blogspot.com/

Link 2: http://www.ukessays.com/essays/commerce/history-of-air-asia-commerce-essay.php

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Impact of Technology

Implementing CRS in a workplace leads to huge changes in the technological side of AirAsia,
which helped to maintain a reasonable and cheap price for everyone. However, CRS helped
to improve technology and its revenue rapidly without maintaining the quality, which then
affects AirAsia’s reputation.(1)

ADDRESS THE ADVANTAGES & DISADVANTAGES

It is widely known 21st century is an age of technologyy, which directly affects development
of airlines. The picture below shows how people come out with an idea that they need to
create a reservation system and how it changed in terms of technological improvements.
Starting with employing people to do the reservations via phones and ending with using
applications and Internet, AirAsia had improved successfully in a short period of time. (2)

On the one hand, CRS was helpful for passengers, because they can book flight tickets online
instead of lining up at the counter waiting in a long queue just to get a ticket. It helped the
organization as well, because they no longer need to spend money on employing people who
are going to issue and sell the ticket. Also, AirAsia was able to give a wider selection for their
costumers, due to the fact that they can choose their seats and flight by themselves, without
the help of others. As a result, they reduced the indirect cost, which they spent on travel
agents and other expenditures. (2) From the table below it is shown how Malaysia’s AirAsia
performed during the first three months in 2010 and 2011. It is obviously seen that number of
passengers travelled with AirAsia had increased and did not stop to growing. (3)

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On another hand, CRS contributed to a large number of customers, in which AirAsia was not
able to deal. Instead of decreasing the number of passengers, they decided to overload and
abuse the use of their aircrafts. It lead to a huge fiasco that happened in Indonesia, where an
AirAsia plane had crashed and all the passengers had died. Flight QZ8501 seemed to be safe
and according to an official report, the cause of this mishap happened owing to the weather
conditions and only once during the successful history of AirAsia. However, nothing happens
without a reason. As a result of the organization fault, the confidence in a safe flight in
people's mind collapsed and the reputation of the company deteriorated. This tragedy shows
that the safety of passengers should not be ignored and needs to be the handled with proper
care more than advertising and promoting how great the company is. (3)

When online ticketing became a reliable source, the game had changed to AirAsia. It is still
unpredictable and most of the airlines around the world still did not unlock the full potential
of this system. However, it made an organization one of the most popular Asian Low Cost
Budget airline around the world. (4)

http://www.aeriaa.com/on-the-origins-of-the-airlines-electronic-reservations-systems-iberia-
aviaco-and-ibms-study-part-ii/ (1)

http://www.ehow.com/about_5418109_internet-changed-airline-industry.html (2)

http://www.webintravel.com/airasia-performed-first-three-months/ (3)

http://edition.cnn.com/2014/12/30/opinion/tan-airasia-impact-asia/ (4)

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System Limitations

ADDRESS THE POINTS

Even though CRS is a very helpful system to AirAsia and the other airline companies but it is
still not a perfect system. It has brings a lot of advantages but it also have disadvantages.
Nowadays, people are actually too rely on the computer system and they let the system to do
almost all of the works. But a computer system sometime will encounter problem like
technical problem and human problem. When the problem occurs, it may end up causing
problems to the users. If the system is down, people who are in urgent to buy a ticket or to
check their ticket information will be unable to do it and have to waste more time to wait
until the system is up again. CRS is the most important tools for the AirAsia to generate
profit, achieve guest satisfaction and ensure customer retention so this type of problem should
not happen.

Another limitation of this system is the host airline’s internal reservation system can directly
communicate with the CRS but the participating airline’s internal system need additional
communication lines and software to communicate with CRS. It will end out the host airline
have the most accurate and latest information but the agent will need to contact with the host
airline to get the information. This will cause delays or inaccuracies of information in
confirming the seat on the participating airlines. Wrong information can cause trouble to the
customers and also to the airline itself. Without a very accurate information to the customers,
they might miss their flight and waste a lot of the time. Agents may also need to execute
additional keystrokes and/or contact an airline by telephone to access the most accurate
information and book flights on participating airlines.

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Recommendations/proposals

ADDRESS THE POINTS

AirAsia should actually make changes to overcome the limitation. They should not become
too dependent with the computer transactions but at the same time to improve their efficiency
through customer service since it is also part of their job. They should also have proper
training in operating the system since it is a very important tool to eliminate waste and also to
produce more benefits for themselves and the customers. CRS vendors need to establish
support and proper linkages with each other to have better transaction and lesser
competitions. These can make their works become easier and faster. They should also
encourage the government to allow the participation of CRS vendors to operate in the country
to effect lesser cost of subscription fee and more business for them. This can help them to get
more profits and also help them to become more successful.

They should also make sure the communication links transmit the data correctly from the host
airlines to the agent. For customers who ask help from the agent getting the most accurate
information immediately can actually help themselves to gain more customers. Company
which give a better services can win more attraction from people. They should also make sure
the airline’s internal reservation system and the CRS can correctly interpret the messages
sent. Make sure that both computers that often use are using the same type of software so that
message can be translate correctly. Due to the unexpected changes of weather, the airlines
should also provide a better lines to have a better communications. To completely eliminate
all the limitations in a system is not that easy but to provide a better services, AirAsia should
really spend effort and time on it.

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Conclusion

It has been shown that the Computer Reservation System (CRS) is a crucial system in all
airline companies and mainly in AirAsia. CRS is a complex and sophisticated system that
helps in both building the company’s reputation and boost the airline’s express growth.
During our research and analysis, the team realize that the CRS in AirAsia is different
compared to other airlines’ system. This is because AirAsia incorporates Yield Management
System (YMS) into CRS which greatly increases the airline’s revenue. CRS also helped
AirAsia greatly in widening its customer base because of its simple and user friendly
interface. Therefore, the team learnt that Information Technologies (IT) advancements is vital
for one’s company and would strongly suggest others to implement IT to help maintain a
smooth management and boost the company’s growth.

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Individual Research

Radio Frequency Identification, RFID (Toh Ke Jian)

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Carpal Tunnel Syndrome, CTS (Dara)

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Video Conferencing (Yushreen)

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Virtualization (Lim Wei Chun)

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Reference

Level 1 Asia Pacific University of Technology and Innovation 2015