Technology and Strategic Management

Instructor: Mr. Dominique JOLLY

Sokly KEAT

Gabriela ALVIDREZ

Kamolchanok KANWANICH

TECHNOLOGY SOURCING FIELD RESEARCH

Part 1!Company and R&D

• Air France, Lufthansa, Iberia and SAS joint together in 1987 Amadeus (MNC)

• The global distribution system (GDS) of travel bookings

• World’s Number 1 provider of customer management solution, IT solution in travel industry

• 217 markets worldwide

• “Your technology partner” reflects committed approach towards client relationships

Who is Amadeus?

Worldwide Technology Network and Regional & Central Offices

• HQ: Madrid, Spain• 6 Development Centers: France, UK, Australia, Germany, Belgium, USA• Operation and Data Center: Germany

Amadeus in Sophia Antipolis!

- Mr. Lennart MODIGPosition: Software Development Engineer

Phone: 04 97230377

E-mail: lennart.modig@amadeus.com

- Mr. Alphonse DuongPosition: Human Resource Administrator

Phone: 04 92946091

E-mail: aduong@amadeus.com

- Mr. Frederic GERACIPosition: Development Manager

Phone: 04 97230426

E-mail: fgeraci@amadeus.com

Contacts

• To retain the position as the world’s number 1 distribution company in airline industry

• To become the world’s number 1 provider of customer management solutions for airlines

• To be the travel industry’s main technology partner

• To acquire more market share in North America

• To keep on being the biggest player in Europe and Asia

Mission Of the Company

• Distribution of flight tickets from airline to customers through different channels

the most important source of revenue!!

• Providing software & infrastructure to travel industry e.g. technologies to control the quality of booking, fee managing, e-retailing

Main Activities

‘ - - - Software as a Service’ business model:Lufthansa

• Number of employee:7,600 global + 2,500 in Sophia Antipolis

• Experts dedicated to R&D:

Over 2,000 global + 500 to 600 in Sophia Antipolis

• Annual turnover: 2,418.3 €million

• Technological Investment: Nearly €300million

• R&D spending: 182.19 €300million

Company Profile

60.73% !!!!

Main Customers/ Competitors/ Suppliers

Customers • Airline companies• Travel Agencies• Hotels• Ground & Maritime• Tour Operators• Corporations• Travelers

• British Airways• Finnair• Qantas Airway

Competitors • Sabre: World’s number one distributors

• Galileo: Global Distribution System

• Worldspan: Global Distribution System

Suppliers• HP: Hardware and software

• IBM: Hardware and software

• Oracle: Database

• Handle multi channeling: Web, B2B, B2C, TA

• Compressive integrated content

• Customized Front office solution

• Deliver a wider range of superior technology

• Partnership for technology development

Key Success Factors

Technology PortfolioComprehensive content and the means to optimize its distribution through POS network

To access, market and sell content across all channels; improve workflows, profitability and customer service

Optimize customers' business operations, processes and administration, and maximize customer relationships

To yield the full value of customers business processes and IT investments

1 Equity R&D Consortia: In 1987

2 In-house R&D: Since 1987 up to now

3 Specialist Recruitment: Along with in-house R&D

4 Takeover:• SMART AB: leading travel distribution company in Northern Europe • Vacation.com: largest US marketing network for leisure travel • e-Travel Inc.: leading supplier of hosted technology products for corporate• ICSAT: International Computer Service & Advice on Travel (2001)

5 Equity R&D Joint Venture:• Terra Lycos: Online travel services Spanish and Portuguese speaking regions• Groupe Galeries Lafayette: A travel portal offering French domestic travel products online• Tele2 and SAS: A full service online travel agency for SMEs in Scandinavia• ITA, BroadVision, SAP: For e-commerce

Mode of Technology Sourcing

Part 2!

Three Specific Technology and

Mode to Achieve

Every source is still in used ..depends on the situation

Open Source is now the most critical mode.

Why the company might have decided to give up with some modes and use some others?

Mr. Modig: “Shifting over to using open source tools gives a big advantage when trouble shooting because there is a big community and you can retrieve a lot of information from Internet. Furthermore you can also participate in the development to be able to implement the functionality that you need.”

• Technology and functional breakthrough in the airline industry

• Community-based IT platform: consists of three solutions– Reservation– Inventory management– Departure control

• R&D sourcing modes: In-house R&D, open source

Amadeus Altéa CustomerManagement Solution

• Since 1987

• Experts around 500 - 600 in Sophia and >2000 globally

• Training program for new technology

• Training time depends on technology type

• In-house R&D centers: 3 dedicated development centers, State-of-the-art hosting centre, open architecture, own network, and Scalable system

In-House R&D

In-House R&Ddedicated development

centers

Advantages: Community and tailored solution

Disadvantages: Need static staffs, costly

State of the art hosting centre

Advantages: Secure and control sensitive data

Disadvantages: No one can access without rights or permission, too costly

Open Architecture

Disadvantages: Too new, a lot of error, need to solve the problem together

Advantages: Future-proof flexible technology, up-to date

In-House R&D

Own Network

Advantages: Proven and reliable data transfer on departure and arrival of passengers

Disadvantages: Costly, need a lot of staffs to support, the service must be real-time

Scalable System: Software application

Advantages: Easy for small areanow Amadeus is developing in big environment

Disadvantages: Need the resolvability of software

• The system to make a travel package for customers

• technology sourcing Mode: Takeover ICSAT in 2001

• Advantage: Amadeus can gain all technology and experts easily

• Disadvantages: Huge amount of investment and need to downsize the new own company

Amadeus Travel Package

Takeover• SMART AB: 2002 Amadeus buy SMART AB from SAS

group

• Vacation.com: 1999 Amadeus buy Vacation.com

• e-Travel Inc.: 2001 Amadeus buy e-Travel

• Opodo: 2002 Amadeus owned 55.4%, to strengthen its position in both the online and leisure travel arenas

• ICSAT: International Computer Service & Advice on Travel (2001)

Sales & E-Commerce Solution• Provide e-commerce solutions and IT platforms for

airlines and travel providers

• transform how people and companies buy, sell or manage travel

• Advantages: improve workflows, profitability and customer service throughout entire sales process

• Technology sourcing mode: strategic joint venture, partnership

Strategic Joint Ventures & Partnership

• Terra Lycos, the world's third largest Internet portal: joint brand, Rumbo, offers online travel services in Spanish and Portuguese speaking regions

• Groupe Galeries Lafayette: jointly created Vivacances, a travel portal offering French domestic travel products online

• Tele2 and SAS: joint venture company, Travellink, provides a full service online travel agency for SMEs in Scandinavia