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INFORMATION SYSTEM

- Information systems are implemented within an


organization for the purpose of improving the
effectiveness and efficiency of that organization.
- Air Asia has carry out three type of information
system such as yield management system (YMS),
customer reservation system (CRS), and
enterprise resource planning (ERP) system

YIELD MANAGEMENT SYSTEM


-

Can known revenue management system

Air Asia used it to takes into account the operating


costs aids Air Asia to optimize price and allocate
capacity to maximize expected revenues.

It understands, anticipates, and reacts to the behaviour


of customer to maximize revenues for the organization.

* CUSTOMER RESERVATION SYSTEM


-

It is an integrated web-enabled reservation and inventory system


suite powered by Navitaire Open Skies technology that includes
Internet.

call center and airport departure control functionality

CRS enabled Air Asia to introduce the first ticket less travel option
and also provide features such as advanced boarding passes in
addition to online booking that enabled the growth of Air Asia as
these features attracted customers that did not have the time for
purchasing tickets from counters and coming in 1 hour early for
securing a seat on the aircraft.

Centralized customer data is also maintained by Open Skied and


this help Air Asia to track booking and schedule fight activities with
real-time, on-demand reporting feature

* ENTERPRISE RESOURCE PLANNING SYSTEM


-

Integrated ERP solution powered by Microsoft business solutions


(MBS) on Microsoft technology platform which is implemented
by Avanade consultants in MA 2005.

With the robust 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.

*Online booking system


AirAsia do provides online booking system for all
user that will needed to have something related to
enquire and have transaction with AirAsia. It is
needed to have an online system for the company
because there is need to simplify the ways compare
to older times.

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*Benefits for the Departments in

the company

* For the Company point of view, it has benefits the some

departments of AirAsia.
* The Sales department, that do all things that regarded the sales.
* By using the Online ticket booking system, i.e. AirAsiaGo has ease
the sales department as using the lowest cost to achive the highest
performance.
* The Finance department that controls expenditures and obligations.
* Using the Online system, the process for giving out statement of
payment, the accounting process with revenue has been simplified.
* Customer Service department that handles all the issue reagrding
customer.
* Get benefited from the online system as customer can search and
look for the FAQ's from the site before make a call to the service
line.
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*AirAsiaGO

The AirAisia started another online booking system


called AirAisaGo which has more function that also
includes hotel booking. An airlines company needed
to handle many passengers, so many datas needed
to be inputed, processed and outputed.
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More and more people are using the airlines service,


but just a plain online booking system for fly is not
enough. AirAsiaGo also does make option for hotels.
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*Input,Process,Output
* an user needed to put in their designed destination,date to
check in and out, numbers for adults and children.

* the system will starts to process the input that the user type
and selects.

* the system will bring you to the filtered search results that
meet your needs.

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*while for the users that just

need the normal functions for


booking the flights they have
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*Input,Process,Output
*an user needed to put in their choices i.e.

numbers for adults and children and the date of


departing and returning. To make things easier
they put in the option with hotel, so that if the
user forgotten to pick the correct option they
have no needed to redo everything.
*Next,the system will starts to process the input
that the user type and selects.
*the system will bring you to the filtered search
results that meet your needs.
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But there is some cases that things happened in a


short time. for example you are needed to go
somewhere by tomorrow. so they prepared this "the
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last minute deals"

* this is the examples of the last minute deal.

unique from the previous, it cannot sort from


lowest prices to highest due to it is already
the minute deal.
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*Input,Process,Output
*an user needed to put in their just hotel,with

flights or just flights, numbers for adults and


children and the date in and out
*Next,the system will starts to process the input
that the user type and selects.
*the system will bring you to the filtered search
results that meet your needs.

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however for some people who do not know what to do


when they arrive to the places that they do not familiar
with. AirAsiaGo does havr this option which help the user
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to know what event is going on or any good event for their

*examples of the things to do in

sydney between the selected


date.
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*Input,Process,Output
* First the user need to put in the destination that wants to go.
Next the Date that in the selected place.
* The system will started to filter the results of the user.
* The page will then list out the events or the hapenings which
may are special and fun to the user. The price for the event
are also listed in the page.

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*Storage
*The input, process and output is not enough for the IS,

the storage of the data is important too. Without the


Storage of the data, the user is needed to do the steps
again and again in turns the user might not going to use
it again plus it is not efficient.
*AirAsiaGo system does keep the recent search and input
of the user from the first choices started. In the
following tabs it will preview the choices previously
picked as default.
*Also the system does require the user to login in order to
use more of its function, so that the server can keep
more of customers details for future convenience
purpose and keep track on giving some details about
latest offers to some flights.
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Air-asia
The AirAsia Mobile App makes it easier to book flights
and check-in while on-the-go!
View our lowest fares, manage your booking and prebook meals, seats, baggage and travel insurance. You
will receive a mobile barcode when you check-in via
the app.
Just scan the barcode at the airport kiosk to print
your boarding pass.
You can also opt to get an e-boarding pass which
allows you to go straight to the gate if you have no
bags to check-in.

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Input
Mobile Booking
The vast booking information that is provided online to the customer
acts as a force that brings more customers to use the website thus
reducing the customer support costs.
Air Asia to introduce first ticket less travel option and also provides
features such as advance boarding passes in addition to mobile
booking that enabled the growth of Air Asia as these features
attracted customers that did not have the time for purchasing ticket
from counters and coming in 1 hour early .

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.

Output
Receipt for the flights
Once payment is made, Travel Itinerary will be delivered to you at
the email address you provided. This will be the proof of your
purchase and it contains your booking number, flight details, guest
details and payment details.

Live Flight

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Storage
With Air Asia membership, its more than just a login to book
flights, weekly newsletter or a plain old airline membership.
People can take speed up booking process with my family and
friends.
Easily book flight for your friend and family as you can store up to
10 guests information in your account. Just by completing the
simple steps on Air Asia.com, your previously saved list will appear
when you making are making a flight booking.
Second advantages are 1-click card. Breeze through the payment
page with 1-click card never will you have fumble and rush to keyin your credit card details. This will definitely speed up your flight
bookings.

Porters Five Forces Analysis


for Air Asia
1. Threat of Substitute Products
Customer easy to switching to other airline. In the airline
industry , there are 59 airlines company that offer low cost fare.
The airlines have the same flight path included more than one
hundred cities and islands throughout the South Asia, Southeast
Asia and Northeast Asia. Its easily for the customer to look for
alternative.
Performance of competitors. For all an airline carrier, they are
no significant differences in product offering. Performance of
airlines normally consists of the accuracy of take off time,
aircraft performance and staff services.
Relative price. The price offer by an airline company may not
be fixed and it depend on the time different between booking
date and flight date. No significant differences of price between
MAS and Singapore Airline when customers purchase last minute
tickets. Customer will choosing the airline carrier who will offer
them more comfortable facility in almost same price with Air
Asia.

2. Threat of New Entrants


Customer loyalty is low against airline. Increasing of airline
competitor such as Jet Star and Tiger Airways who also offering
low cost fare will decrease of Air Asiac customer loyalty.
High cost to start-up. Airline industry needs a high cost in startup capital to set up headquarters, purchase or hiring aircraft,
appointment pilots and staffs like stewardess and etc. Thus, the
threat is low for Air Asia.
Different of product offered. Air Asia has expanded their
product and offer the different product compare to competitors.
Air Asia not only sales ticket but also offering a holiday package
which affordable around Asia. It must have a good relationship
with hotels and tourism company.
Costs of switching low. No significant differences in the price
compare to Air Asias competitor, their customer do not spend
more to shift to another airline. The competitions depending on
service and facilities provided in the flight time to customers.
Strict government regulations. Due to competitive in airline
industry and protects on national airline, MAS which facing
losses in these years, it is quite difficult to apply for licensing
and permit for operating airline company.

3. Intense Rivalry among Existing Players


High numbers of competitor. Air Asia are now facing high competitor with
approximately 59 low fares airline such as Tiger Airways, Air Arabia, Jet Star
Airways,
JAL Express and etc. They may compete in term of their route
offering that Air Asia does not fly.
Fixed cost is high. The airline industry incurs high fixed cost consists of finance
cost, hire purchase and staffs costs.
Exit cost is high. Its hard to leaving airline industry because cost is high in
paying loans, staff retrenchment and flight cancellations refunds.
Similarity of product offering. Every airline provides similar services is to reach
the destination. Air Asia had expanded its services provides hotel booking such
as Tune Hotel which located not far away from its airport and tour packages.

4. Bargaining Power of Suppliers


Supplier concentration in a few hands. Due to a few suppliers in market
will increasing the bargaining power of supplier. Aircraft supplier who
gaining most bargaining power as only in two operation, Boeing and Airbus.
Other supplier such as fuel supplier, merchandise supplier and food supplier
may depend on market condition.
High switching cost. Most of Air Asias aircraft using Airbus models.
Previously, they are using Boeing models, and Air Asia is then lease it. In
case if Air Asia want to switch back to Boeing, the cost for employee training
in operating the aircraft features is high. Besides, Airbus is using advanced
technology in designing aircraft, the power of supplier is high due to Air Asia
must depends to the Airbus engineer to do maintenance.
Relative insignificant influence of buyer to supplier. Airbus is a UK based
company. Their customer come from around the world. Air Asia is a small
portion of Airbus customer who order 200 aircraft. The total of order of
Airbus is 9,113 aircraft. Air Asia contribute only 2% from Airbus total order.

5. Bargaining Power of Buyers


No significant product differentiation. Differences of Air Asia products is
offering holiday packages. They offers to providing package including flight
tickets, accommodation and travel guide for customer. The important thing
is fly to destination which shows the stronger bargaining power of buyers.
Low switching costs. Bargaining power of buyer strong if costs of switching
to other airlines is low. Not only Air Asia operated in Asia. The price offer
by competitor not much different. Customer will choose their convenience
and flight schedule must fit them best.
Modern portion of expend buyer on airline. Bargaining power of buyer
will strong if customer look for cheaper price.
Market information will access by customers. IT mostly used by big
company and success company in the world. With IT, its allow for
international business without boundaries. Information is easy to access by
customers only by click. With the online application, Air Asia didnt have to
prepared room for negotiation. Thus, customers had strong bargaining
power.

* Youtube link-mobile apps

* https://www.youtube.com/watch?v=CHzy5Vk2NT4

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Conclusion

Importance System to Company

Provides powerful strategic and tactical tolls for Air Asia - promoting and
strengthening the competitive advantages.
Low Fare with great flexibility-The system use by Air Asia make Air Asia more
effective and efficiency and possibly able to reduce the cost and eliminated
inefficiency in their business. Air Asia used it to takes into account the operating
costs aids Air Asia to optimize price and allocate capacity to maximize expected
revenues.
Online systems are more easy to use-Air Asia can more understand the behavior of
customer and offering the effectives and efficiency strategy. It also can be
allocate capacity to maximize the expected revenue. Air Asia can make efficiency
to know their customer using IT technology with lowest cost by using this system.

Thanks You

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