Information System Were In Use In Airasia Marketing Essay

1.0 Introduction

AirAsia is one of the Malaysia Airline that established for everyone who dreamed of doing winging to make one ‘s finish. Since 2001, AirAsia has been spread outing quickly with the largest low menu air hoses in which everyone can go with low-cost monetary value and AirAsia has besides awarded for the universe best low cost air hose in twelvemonth 2010 ( Miller, P. , 2010 ) [ Online ] . Let ‘s set it in this manner with a simple motto, “ Now Everyone Can Fly ” , Malaysia ‘s AirAsia has successfully carried out and placed in client ‘s head with the largest low-priced winging trip and largest client base.

‘Go Holidays ‘ offered by AirAsia at the low-priced flight trip, whereby they besides offer inn, hotels, auto lease and vacation bundles at discounted rates. Booking or reserve of airplane tickets can be done at www.airasia.com. Besides, AirAsia supply services such as Low Cost Carrier Terminal ( LCCT ) and AirAsia ‘s coach travel to KLIA at the lower cost. Harmonizing to The Star study under the concern subdivision, AirAsia is now announced that several airdromes in Malaysia and regional states will offered a self check-in service and for more convenience, clients can besides utilize web-based check-in service ( The Star, 2010 ) [ Online ] .

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In the twelvemonth ended 2009, AirAsia reported a net net income of RM549.1million, a rise by 11 % compared to the loss of RM 496.6 million incurred during 2008 ( The Star, 2010 ) [ Online ] .

1.2 Types of Information System

There are few types of Information System were in usage in AirAsia, such as Customer Relationship Management ( CRM ) , Yield Management System ( YMS ) , Enterprise Resource Planning ( ERP ) System, and Advanced Planning and Scheduling ( APS ) system.

CRM is a set of applications that give companies to derive penetrations into clients altering demands, wants, and behaviours in order to better function them ( Haag and Cummings, 2008 ) . This applications help AirAsia to analyze clients ‘ contact, so that it enable AirAsia to keep and update electronic client profile. Furthermore, CRM besides help to update on-line replies at AirAsia ‘s web page – often asked inquiries ( FAQs ) about their services, such as engagement, on-line payment and etc.

YMS is a system that attempts to understand, and respond to consumer behavior in order to maximize net income of the administration ( Martin, 2006 ) [ Online ] . In order to accomplish maximal net income, AirAsia usage YMS to find the historical information, so that it can assist to calculate the company ‘s hereafter.

ERP is the information systems to incorporate the informations from different functional countries of a concern, such countries as planning, fabrication, order entry, stock list direction and many more ( Oz, 2008 ) . This system besides help in planning and let companies to run more efficiency because it avoid duplicate of information and avoid rework ( Oz, 2008 ) . AirAsia uses ERP system is to capturing day-to-day operation ‘s minutess, pull off its supply concatenation, and besides assisting to salvage its day-to-day operational costs every bit good as to increase the operational public presentation to go more efficiency ( Bernama, 2005 ) .

APS is a type of system besides known as fabrication direction procedure. This system is used for supply concatenation planning in the sense that it uses information from ERP for planning and scheduling operations ( Muzumdar, no day of the month ) [ Online ] . APS besides can be used to tracks costs based on the activities in the production of manufactured goods. However, due ERP system does non supply for better supply concatenation direction to analyze the flexibleness and intelligence required implemented by AirAsia. AirAsia hence use APS system helps to better AirAsia ‘s strategic and operational public presentation, classifies and bunchs orders from client, and cheques resources handiness.

2.0 Benefits from System Adoption

2.1 Customer Relationship Management ( CRM )

A good CRM is of import for AirAsia to success in air hose industry. With CRM, AirAsia ‘s staff will easy understand and fulfill client ‘s demands and wants. The benefits of CRM are such as:

( I ) Reduce Operating Costss:

By utilizing CRM system, work and activities done by AirAsia will go more systematic and coordinated. This will assist AirAsia to extinguish waste of financess, such as AirAsia use web or electronic mail to manage some client ‘s questions or jobs alternatively of through a call Centre. This consequences labour cost will be reduced and concern operations will go more effectual and efficient. CRM besides can assist AirAsia to organize client communications if AirAsia confronting troubles, such as battles to keep multiple mailing lists for different groups of clients.

( two ) Development of Better Relations with Customers:

Using CRM helps AirAsia to develop their client ‘s relationships. CRM systems provide dependable beginnings to cover with AirAsia ‘s clients in gross revenues, selling, and service to optimise gross, client satisfaction, and client keeping ( Laudon and Laudon, 2010 ) . The benefit of utilizing CRM is because this system provides a better service to clients. For illustration, on the first page of the AirAsia Website, which has stated the member log in button and this has proven that AirAsia ever set their clients as the first precedence in every consideration. The benefits of going AirAsia members are information provided to clients will ever one ‘s measure in front from others ( Internet Explorer. promotional engagement offers, intelligence updates, and so on ) . All clients ‘ peculiar informations are to the full secured and will be guaranteed for personalization from AirAsia. ( Ilias et al. , 2009 ) [ Online ]

2.2 Enterprise Resource Planning ( ERP ) System

There are many different benefits and grounds why AirAsia choose and deploy ERP systems. These are as follow:

( I ) Help cut down operating costs ( Anthony, 2005 ) [ Online ] :

A The ERP systems enable to assist AirAsia to cut down runing cost and it ‘s a benefit when AirAsia is running company analytics.A The major benefits of ERP are improved the coordination of AirAsia ‘s procedure into one streamlined procedure where all information can be accessed across sections through a individual endeavor broad information web ( Anthony, 2005 ) [ Online ] .A Additional benefit from implementing ERP systems are reduced runing cost, such as lower the cost of production, selling, stock list control, and assist desk support ( Anthony, 2005 ) [ Online ] .

( two ) Facilitate Day-to-Day Management ( Anthony, 2005 ) [ Online ] :

Facilitating daily direction activities is besides one of the benefits from ERP systems. In encourages the constitution of anchor informations warehouses ( Anthony, 2005 ) [ Online ] . The executions of ERP systems allows employees to entree existent clip information and this helps with research, determination devising, and managerial control ( Anon, 2010 ) [ Online ] . Besides, it besides can execute activity based costing and helps AirAsia to track activities ‘ existent costs ( Anthony, 2005 ) [ Online ] .

2.3 Advanced Planning and Scheduling ( APS )

There are certain benefits which can be found in APS system. These are as follow:

( I ) Visibility Across The Whole Supply Chain:

The benefit of utilizing APS system is visibility across the whole supply concatenation. The supply concatenation direction system will guarantee each party, ( Internet Explorer. providers and clients ) works together in integrating in footings of cross-functional programming and planning. So that AisAsia will hold better connectivity across the supply concatenation ( Muzumdar, no day of the month ) [ Online ] .

( two ) Optimizing net income direction ( Anon, 2010 ) [ Online ] :

The most influencing factor in AirAsia ‘s scheme is the monetary value, this is because the air hose viing in the low cost market. Swerve analysis besides benefited in that the APS system is designed to Maximised gross of AirAsia by the bing YMS system and optimizing monetary value scheme. On the other manus, AirAsia ‘s operational cost will be minimized by APS system by utilizing YMS system to bring forth information to further better AirAsia ‘s program and agenda for the installations needed ( Muzumdar, no day of the month ) . The integrating of YMS system into the APS system ensures net income optimisation.

3.0 Pitfalls to Avoid

3.1 Customer Relationship Management ( CRM )

Although CRM systems have brought benefits to AirAsia, but there are still some booby traps exist. AirAsia hence should avoid these booby traps otherwise a important consequence will do AirAsia improperly operate. Listed below are the booby traps need to avoid.

( I ) Inadequate preparation on the CRM package ( Anon, 2010 ) [ Online ] :

Anytime when a new system is introduced, employees feel deficiency of confident to utilize it and they will ever seek to avoid from utilizing it. Many developing advisers offered by CRM package sellers visit AirAsia during their rollout stage and for refresher Sessionss ( Anon, 2010 ) [ Online ] . This system is extremely encourage to be provided as equal preparation will be given to employees and money saved in the long tally even-though it is dearly-won and clip consuming ( Cost Vs Benefits analysis ) .

( two ) Misconstruing client demands ( Anon, 2010 ) [ Online ] :

Sometimes, unneeded clip taken to serve the clients and non giving good services will impact AirAsia ‘s image. AirAsia hence should react to clients when it is needed. For illustration, in the CRM procedure, CRM director should set up and answer the clients ‘ questions that ask for the indispensable information through easy-to-use entree. At the same clip, acquire feedback from clients is encouraged so that able to better company ‘s CRM system in future.

3.2 Enterprise Resource Planning ( ERP ) System

There are some common booby traps to avoid when AirAsia implementing ERP systems. These are as follows:

( I ) Lack of Time and Manpower Required For Implementation ( Mutt, 2010 ) [ Online ] :

When there is a deficit of clip and employees required for execution, AirAsia may over burthen the employees with their regular work by giving them excess duties on ERP execution ( Mutt, 2010 ) [ Online ] . This will take employees could non execute the ERP package decently as they are already over emphasis with their regular work. To avoid this happen, AirAsia should work out a proper clip agenda for ERP execution procedure and working hours of each employee so that each employee may lend as per their ability in the procedure ( Mutt, 2010 ) [ Online ] .

( two ) Poor Selection of ERP Software ( Mutt, 2010 ) [ Online ] :

There are many grounds result the hapless choice of ERP package, nevertheless the most common cause is due to inability to identity the functional demands. Proper cross checking of the merchandises non aligned with the designed and derived functional demands, deficiency of elaborate survey of the merchandise and its features besides lead to hapless choice which may ensue AirAsia fail in implementing ERP decently. Therefore, to avoid this, employees of the company at all degrees should be responsible and involved in the testing and survey of the merchandise. Aid from the external expert can be taken to better the system. Besides, successful implemented ERP from the same industry can be use and refer for the betterment intents.

4.0 Decision

In today ‘s universe, the concern among air hose industry has become more competitory and really tough. Every company in air hose industry is seeking to implement some schemes to vie with each other. To last in concern universe, AirAsia needs to accomplish their long footings nonsubjective and compete with their rival in the air hose industry.

AirAsia has been so successful in Low Cost bearer ( LCC ) among all the rivals in air hose industry until today and many riders would wish to go by taking AirAsia because they offered low menus with no hidden charges, interesting publicity bundles, and many more. Recently, AirAsia had offer nomadic booking via SMS ( Short Message Service ) and AirAsia is the first air hose in the universe provides this service.

Last but non least, CRM is a powerful competitory tool that ever serves clients better by understanding their demands, wants, and behaviors. Through the AirAsia ‘s web site applications, they can supply most dependable and possible air hose services to clients.

5.0 Recommendations

As a CEO ( Chief Executive Officer ) of AirAsia, in order for AirAsia to better the public presentation and direction of AirAsia successfully in future, few competitory advantages of IT are needed to concentrate. However, the most of import information system should concentrate on is Customer Relationship Management ( CRM ) .

First of all, AirAsia should n’t near to CRM enterprise development that is larning from other rivals, for illustration fast check-in system by put ining booths. In order to distinguish from other rivals in travel industry, AirAsia should transport out CRM plan in favour of puting in enterprises with a high return, which will react to clients ‘ demands and desires. Therefore, in order to keep competitory advantages and profitableness, AirAsia should further the relationships between clients ( harmonizing to Hillman and Keim ) .

In the concern universe, company will ne’er vie against company, but will vie web against web. For illustration, MAS ( Malayan Airline System ) does non vie against AirAsia. Their several webs compete. AirAsia and MAS, both are low menu air hoses. In order to pull clients to go, AirAsia ever advertise their publicities through AirAsia ‘s web page and newspapers with the most low-cost monetary value. With no uncertainties, hapless web services will non hold a good relationship in long tally. Therefore, web has to work together with CRM to present great value of information to clients and work out client ‘s jobs, is a beginning of great competitory advantage.

Last, a simple presentment given by AirAsia to clients can be an chance for a valued duologue. The execution of CRM is to make a valuable client relationship and with the two basic maps that are marketing and the client experience. Selling is required to construct promises with clients, manage the duologue constituent of the client relationship, and actuate client purchase behavior. The client experience is to present on the promises, represent the service constituent of the client relationship, and reenforce client purchase behavior. Time is cherished, speedy and prompt to react to client ‘s electronic mail or SMS ( Short Message Service ) is really of import. Dissatisfaction of clients is besides really of import because it provide first-class feedbacks to better the quality and value-added of AirAsia.

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