TH2106

TASK PERFORMANCE (100 Points)

Instructions:

1. Read and analyze the following article.

Case Study of Air Asia: Information Technology Implementation for Business Success
Information Technology (IT) is one of the major enablers of AirAsia’s successful low-cost business
model. AirAsia had demonstrated the strategic value of information and communications
technology (ICT) in improving competitiveness, with a very high majority of its passengers making
their bookings online. In 2003, AirAsia was also the world’s first airline to allow SMS (short
messaging service) booking and payment of airline tickets and make their guests pay for their flight
booking anytime and from anywhere 24 hours and seven (7) days a week. Apart from making a flight
booking, AirAsia guests can also inquire about the lowest fare, departure or arrival information, and
city codes. All this is available at a normal cost of RM0.15 cents per SMS and without any additional
charges. AirAsia guests can also register to be the first to know of new promotional fares as soon as
they are made available.
AirAsia moves from the traditional business into modern business by implementing e-commerce and
maximizing information technology (IT). AirAsia boosted its e-commerce business by launching
AirAsia Vista Gadget with Microsoft on 31 January 2007. This gadget enables customers to keep
updated with live travel information such as destinations, itineraries and pricing, and the latest
promotion. AirAsia enhances its service and maintains its low-cost strategy by increasing the use of
technology and innovation. They launched self-check-in machines in February 2009; the technology
was introduced to eliminate long check-in queues at the counter and minimize manpower.
Integration of Information Technology in Core Business
AirAsia knows that E-commerce is becoming a business tool. AirAsia used this to sell their products
(e.g., e-ticketing and hotel room), advertise, bypass intermediaries, and so on. AirAsia implemented
e-commerce and maximized information technology to operate an effective and efficient business
and make possible low-cost carriers. AirAsia has to implement current IT such as Yield Management
System (YMS), Computer Reservation System (CRS), and enterprise resources planning (ERP) system.
AirAsia also uses outsourcing (business practice of hiring a party outside a company to perform
services or create goods that were traditionally performed in-house by the company's own
employees and staff) to control their cost. By outsourcing in the IT field, AirAsia reduces its costs in
IT system activities.

Source:
Case study of Air Asia: Information technology implementation for business success. (n.d.). MBA Knowledge Base.
https://www.mbaknol.com/management-case-studies/case-study-of-air-asia-information-technology-implementation-for-
business-success/
Twin. A. (2021, August 29). Outsourcing. In Investopedia. Retrieved November 18, 2021, from
https://www.investopedia.com/terms/o/outsourcing.asp

2. After being grouped by your teacher, choose a facilitator to lead the discussion and to ensure the
participation of everyone in achieving this task.
3. Visit the website (https://www.mbaknol.com/management-case-studies/case-study-of-air-asia-
information-technology-implementation-for-business-success/) for additional information regarding
the topic. You may check on other websites for further information.

08 Task Performance 1 – *Property of

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 TH2106

4. Respond to the following discussion questions:

 What are the information technologies AirAsia adapted based on the article?
 As a traveler, will you be encouraged to book a flight with AirAsia, given their technological
advances? Briefly explain.
 How did applying information technology impact AirAsia and its stakeholders?
 Research one (1) company that utilizes information technology to elevate its business strategies.
Detail these technologies and their impact on the business.

5. Use the following formatting for your output:

 Font and size: Calibri, 11
 Spacing: Single
 Margin: 1” all sides
6. Create a PowerPoint presentation of your output for reporting in class on Week 17 via MS Teams.
You will be given five (5) minutes to present your output with the class, including questioning.
7. Afterward, the group leader will upload your output in the 08 Task Performance 1 – ARG Dropbox in
the eLMS on or before Week 17. Use your group number as filename.
8. Your output and presentation will be evaluated using the following rubric:
CRITERIA PERFORMANCE INDICATORS POINTS SCORE
The content is insightful, feasible, and relevant to the case 40
Content
study with complete supporting details.
The output is organized, easy to understand, and followed
Organization 10
the prescribed formatting.
The presenters spoke clearly and audibly. 20
Presentation The presenters were able to respond correctly to questions
20
asked by the audience.
Collaboration is evident among group members, as
Teamwork 10
reflected in their output.
TOTAL 100

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STI