singapore airlines ppt
DESCRIPTION
Singapore Airlines StrategyTRANSCRIPT
Overview
GROUP 5
Overview
• Company and Industry Brief
• Innovation and Design
• Design Process
• Financial and Non-financial Impact
• Key Learning
Aviation industry sector:
• Saturated
• Most unprofitable industry @$31.7 billion loss – SIA outperformed the
market and maintained an above-average profit margin
• Entry of low cost airlines threaten profitability of SIA
• High impact of policies and regulations, e.g. excise taxes, airport taxes and fuel price
Brief on company
• History: Established in 1947 with Malayan Airways Limited (MAL) and
separated in 1972
• Size: more than 60 cities in over 30 countries
• Position: A premium carrier with high levels of innovation and service
excellence
• Competitive advantage: Service differentiation and cost effectiveness
Premium Segment: Singapore Airlines, Air France, Cathay
Pacific
Low Cost Carriers: Ryan Air, Air Asia, Malaysian Airlines
Low
Priv
ilege
Ser
vice
H
igh
Low Price High
Value for Money: Emirates, Etihad,
Jet Airways
Positioning Map
Total Innovation
Continuous Incremental Innovation
Discontinuous Radical Innovation
“Innovation in everything all the time”
Leader and Follower
• High Value in Industry• Low cost (Critique-Route expansion)• Follow Up routine; less visibility to Customer POV• User Driven
• Unpredictable• High impact on Customers• User Centred
Innovation
User Driven User Centered• Extensive Customer feedback • Match high customer expectation
• Sell a Lifestyle
Role of User
Role of Design
Strategic Perspective
Leading Perspective
Focus on cost effectiveness to sustain in the aviation industry-Curbs Regular Radical Innovation
-Design is a primary function – used in a structured format -Engrained in the employees – Corporate culture -Focus on elevating customer experience
-Create Differentiation Advantage
Open InnovationProducts: Cabin seats, Design of Aircraft,
Designing lounges
Closed InnovationServices: Cuisine and cocktails, In flight
entertainment
Balanced Approach
BMW Design Works and JPA Designs
Internal product and service development team
EXTERNAL INTERNAL
Go GreenFocus: Customer’s need to have a positive impact on the environmentReduce weight of aircraft – to save fuel (Sr.VP)Trend of e-books and e-magazines
Use Kris entertainment technology
Tested electronic magazines – Silver Kris, Kris Shop, Kris world with Singapore based private company – smart aviation paper ltd. (Patented file compression technology) - iphone’s sibblings
Repeated within the company to see if it functions well.
Launched 31st July 2010 – Boeing 777-300 ER (2 flights) followed by A380 (2 flights)
Design Process - 5 phases
Research
Brainstorm
Prototype
Repeat
Deliver
Stages Pre-service Sign Up Service use Service use (cont.) Post service
User actions
- Awareness of the service
- Create Account- Buy tickets- Check into flight- Manage their Kris flyer account- Choose their meal using SIA book the cook service- Check flight schedule
- Check in luggage and take boarding pass-Wait and take a rest in the lounge- Boarding
- Find seats- Interaction in flight- Entertainment in flight- Consume Cuisine and cocktail in flight
- Get off the plane- Provide
feedback- Luggage
collection- Luggage
loss/other issues-Customer complaint counter
touch-points
used by SIA
- Official website- Online advertising(e.g. understanding your needs)(e.g. across the world with the Singapore girl)- E-newsletter (when customer sign up with their email address)- Social network(e.g. Facebook/Twitter/ YouTube)
- Official Website- Official agent/Ticketing agency
-Front office – counters/check in-Information kiosk- On ground attendants- SIA - Airport staff
- Greet customers- Guide to seats- Security information- Services provided in flight (e.g. duty-free product selling, food offering)
- Farewell- Online
feedback- Points for flight- Describe
experience on Social media
- Customer service centers
Backstage of SIA
- Marketing strategy planning- Staff training- Digital branding
- Development of Backend IT infrastructure for the website- Maintaining the commissioned contracts with ticketing agents-Communication system between IT Backend and KAM for passenger preferences
- Partnership with booking websites- Staff training- Communication
between airport authority and staff
- Preps for flight
- Flight attendants training- Pilot training- Flight crew training- Crew manual
- Aircraft maintenance- Maintain
customer relationship
- Offers and change in flight schedules
Design Thinking
Design Driven
Design is CRUCIAL and a STRUCTURED EFFORT
• Trial and learn from failures• Corporate culture
• User centred• Change the meaning of Luxury flying• Maximum focus on elevating
customer experience
2010 2011 2012 2013
-800
-600
-400
-200
0
200
400
600
800
1000
1200
279.8
1011.2
390.2
-694.1
Net profit after tax
Financial Impact
Timeline
MAR 2013
OCT2013
DEC2013
MAR2014
AUG2013
NOV2013
FEB2014
DestinAsian (Asia’s leading luxury travel and lifestyle magazine – Jakarta)Readers’ Choice Awards (8th time running)Best In-flight EntertainmentBest Frequent Flier Programme - Krisflyer
Awards - Mar 2013 to Mar 2014
Timeline
MAR 2013
OCT2013
DEC2013
MAR2014
AUG2013
NOV2013
FEB2014
SmartTravelAsia.Com (Hong Kong)Best Cabin Service
Awards - Mar 2013 to Mar 2014
Timeline
MAR 2013
OCT2013
DEC2013
MAR2014
AUG2013
NOV2013
FEB2014
Travel+ (China)2013 China Travel Awards (Joint winner with Lufthansa)The Best Inflight Service
Awards - Mar 2013 to Mar 2014
Timeline
MAR 2013
OCT2013
DEC2013
MAR2014
AUG2013
NOV2013
FEB2014
- Saveur Culinary Travel Awards (USA)Readers’ Choice Best Inflight Dining (First & Business Class)Readers’ Choice Best Inflight Dining (Economy Class)- Business Traveller (China)Best Service on the Ground and in the Sky
Awards - Mar 2013 to Mar 2014
Timeline
MAR 2013
OCT2013
DEC2013
MAR2014
AUG2013
NOV2013
FEB2014
- Premier Traveler Magazine (US)Best Economy Class service in the WorldBest International Airport Lounges - Business Traveler USA 2013Best Overall Inflight Experience in the WorldAirline with Best First Class service in the WorldAirline with Best Economy Class Service in the World
Awards - Mar 2013 to Mar 2014
Timeline
MAR 2013
OCT2013
DEC2013
MAR2014
AUG2013
NOV2013
FEB2014
DestinAsian (Asia’s leading luxury travel and lifestyle magazine – Jakarta)Readers’ Choice Awards (9th time running)Best In-flight EntertainmentBest Frequent Flier Programme – Krisflyer
Awards - Mar 2013 to Mar 2014
Timeline
MAR 2013
OCT2013
DEC2013
MAR2014
AUG2013
NOV2013
FEB2014
AFAR Magazine (USA)Experiential Travel Award for Best Inflight Service
Awards - Mar 2013 to Mar 2014
2008: 1st
2010: 2nd
2012:3rd
2009: 2nd
2011: 2nd
Timeline
Ranking of SIA in Recent Five Years
On-Time Performance
In-Flight Experience
High
Low
Bad Good
Singapore Airlines
Asiana Airlines
Malaysia Airlines
Virgin America
Qatar Airways
Perceptual Map Relating to Service Quality
“the Service, comfort and Air Crew attention is fantastic”.
“the smiling and happy crews
made you feel a million dollars”.
“The quality of food, wine and attention to detail was excellent”.
“They got Spacious seats “.
Key Learning
• Ambidexterity - innovation
• Focus on both service and product design
• Corporate culture on Design outlook and customer experience
• Open to external ideas – work on building their capabilities
• Balance between design and profitability
• Exceptional focus on Problem solving and human centred
approach to innovation
Thank you !