Overview of the enterprise
The history of formation and development
Bamboo Airways is the first private airline in Vietnam, officially taking off in January
2019 After more than 5 years of formation and development, Bamboo Airways has affirmed its position as one of the leading airlines in Vietnam, known for its modern fleet, high-class services, and extensive route network.
2017: Bamboo Airways is officially founded.
July 9, 2018: The Vietnamese government officially grants Bamboo Airways an operating license.
January 8, 2019: Bamboo Airways officially begins operations on the Vietnamese aviation market after receiving an Air Operator Certificate from the Civil Aviation Administration of Vietnam.
Although newly established not long ago, Bamboo Airways has brought home many prestigious domestic and foreign awards, affirming its position:
• Asia's leading regional airline awarded by World Travel Awards
• Best private airline in the world for 3 consecutive years (2019-2021) awarded by Skytrax
• The airline has the best domestic flight network in Vietnam 2020 and 2021 voted by Vietnam Report
• Top 10 airlines with the most economical ticket prices in the world 2020 voted by AirlineRatings
• The airline has the best cabin crew service in Vietnam 2023 voted by International Finance Magazine (UK)
• And there are many other prestigious awards
Figure 2.The A320NEO aircraft is used by Bamboo Airways on domestic routes and short flights connecting countries in Asia.
Vision and Mission
Bamboo Airways aims to become a leading 5-star airline in Vietnam, a pioneer in innovation and bringing world-class flight experiences to customers.
Bamboo Airways was born not only with national pride but also with a noble mission:
"Connecting tourist destinations across the S-shaped strip of land, elevating the image of Vietnam and its people on the international map."
Bamboo Airways' mission is the airline's commitment to service quality, dedication and unique experiences for customers This is the guideline for all activities of Bamboo Airways and is the source of motivation for the airline to constantly develop and improve.
Business model and Revenue model
3.1 Learn about business models and revenue models
The business model acts as a detailed map, guiding the business to operate, create value and earn profits This is a core element for every business, regardless of size, from multinational corporations to newly established startups The business model clearly outlines the business strategy for creating products or services, providing them to customers, and earning profits from business activities.
The revenue model is the key strategy that helps businesses generate revenue and profits This model outlines how to manage revenue streams and the resources required for each revenue stream The revenue model is an essential part of the business model, it plays an important role in: determining how to create value for customers, attracting targets, and monetizing products/ services.
Bamboo Airways targets diverse customer segments with products and services specifically designed for each customer group Bamboo's target customer groups are businessmen, individuals, organizations with travel needs, families, students and international customers.
Not only does Bamboo Airways provide flights to domestic and foreign destinations, it also provides a flying experience with thoughtful and comfortable services.
• The aerial services include services providing rich and diverse meals, entertainment services with endless entertainment systems and modern systems with personal touch screens, rich content stores of content movies, music, games,
• Perfect ground services include easy ticket booking via websites, applications with flexible payment methods, service to choose the most suitable seats for all ticket classes, safe baggage check-in service, High-class waiting room service with many amenities, dedicated 24/7 customer care service,
To best reach and serve customers' needs, Bamboo Airways has built a system of extremely diverse distribution channels.
Bamboo Airways owns a large ticket office system in major cities across the country, ready to directly serve customers In addition, there are other online ticket buying and selling platforms such as: Bamboo Airways application, website system (https://www.bambooairways.com/), Traveloka,
Along with that, Bamboo Airways has chosen to deploy a multi-channel communication strategy, to reach potential customers through traditional media channels including: television, newspapers, magazines, and through Online media channels such as websites, social networking sites Facebook, Instagram, Tik Tok,
Bamboo Airways is committed to building and developing strong customer relationships to deliver the best possible experience on every journey The airline has established a loyalty program called Bamboo Club, a diverse customer support network, personalized customer care services, a customer loyalty program, and a prompt and efficient complaint resolution process These initiatives have helped Bamboo Airways make a positive impression on customers, reaffirming its position as a reputable brand that prioritizes customer satisfaction.
In order to develop and improve service quality, Bamboo Airways has built a large partner network.
In the aviation sector, in order to expand the flight network, provide consecutive routes, making it easier for customers to connect to locations, Bamboo Airways has combined with other airlines such as: Vietnam Airline, Vietjet Air, Qatar Airline, Japan Airline,
To provide package travel services with air ticket and hotel combos to save costs for customers, Bamboo Airways has cooperated with travel companies such as Vietravel, Saigontourist,
Bamboo Airways cooperates with technology companies to apply advanced technology solutions in management, operation, and improving service quality Partner companies in this field include: Amadeus, Saber ,
To support online payment services, payment via card Bamboo Airways has cooperated with the following banks: Vietcombank, Vietinbank, BIDV, Agribank, Eximbank, ACB, Sacombank, and online ticket purchasing applications routes like Traveloka,
The main activity of Bamboo Airways is to provide air transport services for passengers, luggage, and goods on flights Besides, Bamboo Airways also provides customers with related services during the flight such as dining, entertainment,
Bamboo Airways' financial resources come from a combination of shareholders' investment capital and profits from providing services.
Bamboo Airways owns a carefully selected, well-trained workforce, a modern fleet of aircraft including Airbus A321CEO, Airbus A320NEO, Airbus A320CEO and a network of more than 50 domestic and international routes.
• Bamboo Airways operates mainly in the aviation industry, including main activities such as transporting passengers, luggage, goods, mail,
• Providing package travel products combining air tickets, hotels, sightseeing tours, and entertainment The company also provides retail travel services such as sightseeing tickets, tour guide services, train and bus ticket bookings, etc
• Providing maintenance, repair and overhaul services for domestic and international airlines Bamboo Airways also provides other aviation technical services such as providing spare parts, repairing avionics equipment, training technical staff, etc
3.3.2 The industry and profession are related to the main business industry
• Bamboo Airways provides multimodal transport services, combining air, road and waterways; Ground services at the airport include commercial technical services, check- in procedures, customs, security, and freight forwarding; fresh, diverse and high-quality culinary services;
• Focus on investing in technical infrastructure at airports, including passenger terminals, cargo terminals, technical infrastructure, equipment serving air cargo transportation lines, and synchronized services
• Providing food items, supplies, and souvenirs on planes and airport terminals Sales of Bamboo Airways branded products
• Providing agency services, advertising and communication services on planes and at airports
Bamboo Airways' revenue comes from the following main sources:
• Passenger transportation: accounts for the highest proportion of total revenue, contributing more than 70% of revenue
• Freight transportation: Accounts for about 20% of revenue
• Other services: Including travel services, ground services, agency services, accounting for about 10% of revenue
Bamboo Airways must pay for the following expenses: fuel costs; property rental costs; labor costs; maintenance and repair costs; Other costs include sales costs, business management costs, financial costs, advertising costs, marketing to attract customers,
Business operation overview
Bamboo Airways was established in 2017, is the first private airline in Vietnam After 7 years of development, the airline has achieved many outstanding achievements in terms of on-time flight rate, high quality aviation service, good ticket prices,
Bamboo Airways is currently operating a fleet of modern aircraft Network of more than
70 domestic and international routes The team is well-trained and professional.
Currently, Bamboo Airways offers 4 seat classes including: Bamboo Eco, Bamboo Plus, Bamboo Business and Bamboo First Class Each seat class is equipped with separate amenities and services, meeting the diverse needs of customers The airline also provides in-flight services such as drinks, snacks, personal screen entertainment, ground services such as: check-in procedures, customs clearance, security, etc The airline also provides customer support services such as consulting hotline, ticket booking service via website, applications,
As a new airline, Bamboo Airways has affirmed its position in the Vietnamese and international aviation market The airline is constantly expanding its flight network, diversifying products and services and improving service quality with the goal of becoming one of the leading airlines in the region However, Bamboo Airways is also facing difficulties due to lack of experience, limited financial resources and the impact of the
Covis-19 pandemic With the right strategies and continuous efforts, Bamboo Airways is expected to overcome these challenges easily.
Analysis of enterprise
SWOT, current digital transformation status
Bamboo Airways is the first and only airline in Vietnam to partner with BAA Training Vietnam to implement the MPL (Multi-Crew Pilot Licence) basic pilot training program, which is expected to train about 100 basic pilot trainees over three years, from 2023 to 2025.
Bamboo Airways operates a modern fleet of aircraft, including the Airbus A320, A321NEO, A322CEO These aircraft are equipped with advanced technology, guaranteeing safety, fuel saving and providing a comfortable flight experience for customers.
Bamboo Airways' quality of air service has been positively evaluated, attested by many major awards: "Best Vietnamese Airline Service", "Leading Asian Regional Airline",
"Most Progressive Airline in Asia" and "Asian Best Escort", top "The best regional airline in the world and Asia"
Bamboo Airways has successfully held its position as the most timely domestic airline for five consecutive years, according to statistics from the Civil Aviation Authority of Viet Nam, from 2019 to 2023 with a timely flight rate of 92.5%, the highest in the industry.
Figure 3 On-time flight rate of Vietnam airlines in 2023
Although officially separated from FLC, Bamboo airways has been severely affected by the FLC stock manipulation scandal: Mr Trịnh Văn Quyết decided to sell 74.8 million
FLC shares but did not report, leading to his prosecution and imprisonment on charges of hiding stock information Several detention warrants and investigations on the FLC are being carried out.
Young airlines: Compared to other old airlines, Bamboo Airways is young and has little experience in the airline market.
With a small fleet, Bamboo Airways currently operates about 16 domestic and international routes, while Vietnam Airlines operates over 60 routes and Vietjet Air operates more than
150 routes This makes it difficult for the airline to expand its network and meet the growing needs of its customers.
With a relatively low market share compared to other airlines, according to the Vietnam
Aviation Administration, Bamboo Airways accounted for only 4.2% in the first six months of 2023, while Vietjet Air's low cost market share has risen to the top with 44%.
Figure 4 Vietnam aviation market share
Bamboo Airways has just announced successive new staff to take key positions, such as CEO and Deputy CEO Among them, the new CEO of Bamboo Airways, Mr Lương Hoài Nam is a PhD in aviation in Russia, has more than 30 years of experience in the field of aviation - tourism, has held many managerial positions, senior executive at major airlines Reception and appointment of Mr Nguyễn Thượng Hoàng Hải, a leader with 30 years of experience in the aviation industry, who has held important positions at major airlines to the position of Deputy Director-General.
By the end of 2023, Bamboo Airways has deployed drastic solutions for comprehensive restructuring, improving business efficiency, including robust measures such as the elimination of long-haul aircraft, and the cessation of operations on regular international routes in the region This is seen as a wise step backwards, a meaningful decision to survive and unavoidable in the volatile, risky aviation market as it is today.
The aviation market has grown, with the participation of many enterprises, more open routes: in 10 years, the airline network of Viet Nam has 60 domestic routes and 130 international routes Many international organizations also assessed Vietnam's aviation growth rate as one of the fastest growing countries in the world, when the index always reached two digits.
- Growth of the domestic tourism industry, especially during tourist times such as New Year's Eve, summer The demand for travel, mobility, accommodation is on the rise.
Global Economic Crisis: since the pandemic, the first signs of economic crisis gradually formed, people's tourism demand declined, resulting in a decrease in the number of customers using air services This makes it difficult for Bamboo Airways to maintain revenue and profitability.
The Russian-Ukrainian war caused higher fuel prices, resulting in higher transportation costs due to the price of gasoline, aircraft spare parts, etc Airline tickets account for 60% of the tour cost, resulting in higher tour prices, leading to a decrease in the number of tourists.
The market is highly competitive with many other long-standing airlines like Vietnam Airlines, Vietjet Air, Jetstar, Vasco while Bamboo Airways is still quite young on the racing tracks of the airlines.
Not standing outside the flow of digital transformation trends, Bamboo Airways has soon identified digital conversion as one of its focus tasks since its inception with the pioneering goal of adopting digital technology to turn digital technology into a competitive advantage in the domestic aviation market The digital transformation of Bamboo Airways, just like other airlines, began with the revolution of electronic airline tickets on computer platforms or mobile apps, instead of paper tickets at airline ticket dealers.
Bamboo Airways is constantly looking for and cooperating with major domestic and foreign technology corporations such as: Sacombank, VnResource, Amadeus, Viettel, Touch Aero, Airfi Aero At the same time, the company continues to pioneer the adoption of digital technologies to meet the growing needs of its customers.
Bamboo Airways is developing the Bamboo airways mobile app with many handy features such as booking, online check-in, flight tracking, booking management, etc that make it easy for customers to access information and use our services The company uses IoT technology to monitor luggage, aircraft, optimize maintenance processes and improve flight safety.
On April 9, 2021, Bamboo Airways and Sacombank signed a comprehensive strategic partnership, which formed an air-bank link, making the most of the benefits of digital technology Thanks to this, customers will have the opportunity to enjoy their holidays at Bamboo Airways’ luxury resorts, while also being offered Sacombank’s products, financial services, and secure, fast payments.
Late in 2021, early in 2022, the company launched Bamboo Holidays, its own online exchange, allowing passengers the freedom to choose flight - break - play combos to suit their individual needs and preferences All products and services accompanied by the flight are transferred to the airline for sale online through e-commerce platforms.
Competitors analysis, especially in digital transformation
With Bamboo Airways, digital transformation has been identified as one of the strategic goals since the airline's early days Nowadays, there is a robust and extensive digital transformation in all of Bamboo Airways' operations, starting with the revolution of electronic airline tickets on computer platforms or mobile apps instead of paper airline ticket sales at airline bookmakers In addition, the company is now investing in applying Big Data, AI, and Machine Learning technologies to collect and analyze customer data Bamboo Airways sets a pioneering goal of adopting new technologies, turning technology into a competitive advantage and becoming a technology leader in Vietnam as well as in the region.
Especially in late 2019, early 2020, the Covid-19 pandemic is taking place as a leap for technology to become a vital factor inining business and consumer growth Types of technology, virtual health, and online consumption are on the rise, when safety and limiting exposure are top priorities, domestic and foreign airlines are in serious crisis So, in order to stand on the aviation market, airlines have to come up with innovative solutions to cut costs with modern technologies So the issue of digital conversion is vital and vital for airlines.
According to the International Air Transport Association (IATA), the ambition and vision of the aviation industry is to have 100% digital airlines by 2030 And the digital transformation trend of airlines is to focus on areas such as customer-centric, technology and data exploitation to transform flexible and sustainable operations, and expanding an open data ecosystem These trends are aimed at changing customer experiences, improving operational efficiency and helping find new business models.
Vietnam Airlines - Vietnam's national airline, under Vietnam Airlines Corporation, is the oldest, largest and most reputable airline in Southeast Asia in general and Vietnam in particular It's one of the leading airlines in applying digital transformation, orientation, and built-in development in all three aspects of digital technology, digital data, and digital culture.
Vietnam Airlines' digital transformation journey began with the "revolution" of paper-to- e-ticket flights more than a decade ago and has developed an online booking system on its website and Vietnam Airlines mobile app, making it easy for customers to book and pay anytime, anywhere According to the airline's data, online booking accounts for more than
70% of all airline ticket sales Digital conversion partnership with FPT, Viettel Group, Saigon Aviation Services (SASCO), Big Data Technology Vietnam (VinBigData), Vietnam Postal Telecommunications Corporation (VNPT), In addition, the company continues to boost investment in infrastructure, engineering, and has also invested in the world's leading advanced technologies such as AMASIS System, DC Check-in System, PSS Sabre System, and YMS System.
Vietnam Airlines has adopted an advanced passenger management system (PMS), which helps to automate business processes such as check-in, luggage management, flight status tracking, etc This saves time and costs for both the company and customers The company applies high-tech solutions to flight operations such as FMS, aircraft maintenance system (MRO), to help optimize flight schedules, minimize technical failures and improve flight safety.
Since December 1, 2023, Vietnam Airlines has deployed a new Check-in service through RBM (Rich Business Message) to fully proactively make any check-in at any time within
24 hours before departure without remembering and entering a booking code RBM helps reduce the load on the deck procedures, reduces the passenger density at the station, increases the speed and effectiveness of media and advertising operations along with simple, easy-to-understand operations, suitable for all classes and ages.
Without stopping there, Vietnam Airlines builds a multi-channel customer service system, combining websites, mobile apps, telephone stations, emails, etc., making it easy for customers to contact and get support when needed Since December 1999, Vietnam Airlines has been implementing the Lotusmiles Customer Care program, offering many incentives to customers who regularly use the airline's services From there, Vietnam Airlines customers can easily book tickets, check-in online, manage luggage, track flight status, etc through their website and mobile app The company also regularly launched promotions, attractive offers, and attracted customers According to a survey conducted by Vietnam Airlines, the customer satisfaction rate reached 92%.
As a national airline with a long history of formation, Vietnam Airlines has achieved many achievements in transforming digital, technology applications into business operations Thanks to this, the company has improved operational efficiency, improved customer experience and enhanced competitiveness Vietnam Airlines is one of the leading airlines in digital conversion in Vietnam and a model for other business learning.
Vietjet Air - a not too strange name in Vietnamese aviation with the brand name "low cost" and now holds the highest market share of other airlines, it is one of the pioneers in applying digital conversion into its operations.
In Vietnam, Vietjet Air has been applying AI technology to its service delivery operations Vietjet Air's digitization began with the conversion of paper air tickets to electronic air tickets, selling tickets online through platforms on mobile apps On Vietjet's website, it uses Amy Robot to provide customer questions about flight-related issues such as booking, check-in, payment instructions, seat management, schedule changes and refunds, etc.
Vietjet and Lufthansa Technik have signed a partnership to deploy AVIATAR's Electronic Technical Logbook application to make technical data management, coordination between the fleet and the airline's technical maintenance team more smooth and efficient At the same time, on May 17, 2023, representatives of Vietjet leadership signed a memorandum of cooperation to deploy the Skywise solution application Accordingly, Vietjet will apply the Skywise Health Monitoring (SHM) solution as the main tool to measure future fleet performance after a comprehensive evaluation process, thereby enhancing maintenance efficiency, ensuring fleet operational reliability at the highest level.
With the orientation of an airline that supplies consumer goods on an e-commerce platform, Vietjet Air also focuses on investing in the adoption of digital transformation in the online sale of products or services accompanied by flights such as: luggage, food, souvenirs, airport shuttle service and insurance, etc This will allow customers to be comfortable and proactive in choosing the services they need instead of paying extra for services they do not use.
Currently, only about 18% of customers choose the traditional form of check-in, while the rest tend to want to check in online to ensure convenience and save time Therefore, Vietjet Air has adopted a way for customers to check in via app or check-in at the airport kiosk, which is expected to be available to all airlines in the future.
Solutions/ Recommendations
Most airlines today are focusing heavily on improving customer experience, putting people at the forefront Although a newcomer in the aviation industry, Bamboo Airways has been voted the best-served airline with 36,000 absolutely safe flights, 1,300 agencies across the country and the highest 95.9% average timing rate in the industry Not only that, with the advantage that the airline was born in a phase of technological development, Bamboo Airways can refer to successful experiences to easily upgrade the technology in its operations in a faster, more advantageous way However, there are many realities that reflect imperfections in the passenger experience on flights From the exhausting long check-in procedure, besides the constant competition from other airlines in the process of changing numbers as it is now Along with the challenges of restructuring, such as limited aircraft and routes, low revenue, low profits and rising fuel prices in the face of the global economic crisis To address these challenges and improve the passenger experience to increase market share, a number of measures should be adopted as follows:
3.1 Solution 1: Applying Big Data and AI to enhance customer experience
Most airlines are facing the so-called “Lost-of-Chance”, in which the majority of passengers in which the majority of passengers are infrequent flyers and often book tickets through online travel agents (OTAs) or in groups This has created a challenge in collecting customer data for airlines, leading to their inability to understand the needs and wishes of passengers This unusual flight experience leads customers to continue to book through third parties to get the cheapest price instead of booking directly with an airline, and again, airlines continue to have trouble collecting customer data For example, business passengers are the primary users of the mobile app, but most airlines do not provide the specific requirements of these highly valued customers, such as helping them quickly leave the airport and easily connect flights.
Figure 5 The cycle of lost opportunities
Figure 6 What do customers need?
Therefore, in order to implement digital transformation to improve the business model, special emphasis is needed on personalizing the customer experience, so there are specific methods and ways to collect data so that there is a full understanding of customer behavior and preferences to give the customer the best experience.
3.1.1 Create an individual login interface and customer profile:
A website that requires a personal login and a customer profile when booking a flight is a great place for airlines to minimize passenger information Currently, the only information most airline websites ask for is names, emails, phone numbers, passport numbers, and meals This information is not enough to build a full picture of our customers, no matter how many times they fly with the airline.
Creating a personal login and customer profile is an important way for airlines to collect customer data optimally Through this interface, customers can create and manage their personal accounts, providing their own personal information and preferences The airline must require customers to log in to experience all the benefits of the system Personal profiles can include information such as email addresses, telephone numbers, past travel information, seat preferences, favorite food, or even passport information.
This interface model provides an opportunity for customers to freely share information comfortably and control privacy The airline may use information from customer profiles to create offers, customized solutions and personalized notices Through consensus and information provision, customers can get personalized flight experiences and easily manage their flights from logging into the system.
With this solution, Bamboo Airways should adopt Big Data analysis To do this, the company should consider applying Cloud Computing to analyze Big Data, from structured to unstructured data These can be passenger data, market trends, business ticket performance, etc The use of cloud computing makes business Big Data analysis simple, useful and costly Here, Big Data is used to predict passenger behavior, predicting who is more likely to enjoy the flight experience at Bamboo Airways This will enable you to optimize your experience and significantly increase your loyalty to the company in the future.
With customers’ increasing demands for the aviation industry over the years, Bamboo airways has to find a solution that meets those demands, and the chatbot has emerged as the most suitable way to advise customers about their services, thus providing suggestions that are tailored to their needs In addition, Bamboo Airways can use AI to respond to user questions and requests as soon as possible to increase customer satisfaction and shorten response times.
With the chatbot, the company can use the application to collect data from users in the aviation industry today:
1 Ticket and reservation process: Chatbots can interact with customers to support the ticket and booking process In the process, chatbots can collect essential information about passengers such as names, contact information, seat choices, and special requests.
2 Exchange flight-related information: Chatbots can provide scheduled, take-off and landing information, as well as weather and destination information to customers During the chat, the chatbot can automatically record customer requests and priorities.
3 Customer support throughout the journey: Chatbots can provide continuous support to customers throughout the trip, from notifying changes to schedules, providing guidance on airport procedures, to providing information about services and amenities at the destination.
4 Post-Flight Feedback: Chatbots can send out post-flight surveys to collect feedback and feedback from customers about their experiences This helps airlines understand their strengths and weaknesses in improving service.
From there, personalizing the customer experience by taking advantage of passenger history and preferences will be easier and more beneficial, keeping customers on track much more efficient Because the flight experience is not just a journey from point A to point B, but a journey that carries a series of emotions, memories and special expectations of each passenger.
Taking advantage of travel history data and passenger personal preferences is a smart step towards better understanding the wishes and needs of individual customers The use of advanced data analytics makes it easy to identify passenger preferences, interests, and individual preferences for entertainment, food, beverages and services at destination In this way, the airline can customize the experience to each customer in a subtle way, creating unique connectivity and interaction that hardly any other carrier can.
By providing a personal login interface on the seat screen, the airline not only creates a personalized flight style, but also helps create a private space for passengers No longer homogeneous and boring experiences, each passenger will have the opportunity to experience exclusive entertainment based on their own preferences Passengers can choose from lists of movies, TV shows, music, books, and even recommended dishes based on previously analyzed preference data This not only brings comfort, it also brings excitement and deep connection between the company and the passengers.
3.1.3 Implement biometric technology to improve passenger procedures
Implementation
Planning
Implement comprehensive digital transformation to "Improve customer and employee experience, reach more customers, thereby increasing revenue Improve operational efficiency, reduce operating costs Leaders make quick and accurate decisions thanks to a seamless temporary reporting system.” These goals and actions aim to strengthen Bamboo Airways' position in the aviation market, enhance customer experience, and contribute to the sustainable development of the aviation industry.
Break down the silos effect between departments, units, systems and applications.
Expand and exploit values from digital ecosystems and products and services operated on digital platforms and services to optimize business operations and improve efficiency.
Develop an online ticket booking and payment system by upgrading website and mobile applications along with integrating modern and convenient payment methods to improve user experience.
Apply BIG DATA and AI to increase customer experience and achieve specific parameters as follows:
Customers are satisfied across all channels and stations
Customers interact and use easily on digital channels
Customer information is collected and analyzed
Interaction, reply, and consultation are automated
Income and feedback operations are automated
Apply Electronic Flight Assistant in the business and management model, thereby improving operational efficiency and optimizing costs.
Expand and exploit value from the ecosystem and digital products and services.
Building digital culture and developing human resources for digital transformation.
Stage Timeline Tools Target Estimate costs
Start the digital transformation process, helping the company gradually get used to the new image.
Solve the need to improve customer experience as well as increase the level of information security.
Finish and complete the digital transformation process and automate services for customers.
Phase 1: Strengthen facilities, cooperate with digital transformation companies, develop call centers, chatbots, and big data so that customers can easily interact and use Bamboo Airways services, and at the same time create a solid foundation for future company digital transformation.
Phase 2: Developing data systems and databases, enhancing information security.
Phase 3: Successfully complete the company's digital transformation process by applying artificial intelligence (AI) and Electronic Flight Assistant (EFA) technology, applying biometric technology to Improve management and application of tools to better serve consumers.
Implementing
Before proceeding with the implementation, the company's management and executive board need to discuss and deliberate on the plan and development direction for each phase
This is the foundational phase that helps build a solid data foundation and technology infrastructure, which is a pivotal step for the successful digital transformation journey of Bamboo Airways This phase will commence at the beginning of Q4 2024 and will last approximately 6 months It aims to personalize the experience and create the most favorable conditions for customers using Bamboo Airways' services
The estimated cost for enhancing physical infrastructure, collaborating with digital transformation enterprises, and developing call centers, chatbots, and big data in phase 1 is around 50,000 USD
Initially, the focus will be on strengthening the physical infrastructure, partnering with digital companies to integrate cloud computing, connecting domestic and international infrastructure, telecommunications networks, and implementing 4G and 5G technologies
Specifically, Bamboo Airways needs to contact and negotiate with major data centers in Vietnam such as Viettel IDC and CmC Viettel IDC, a managing entity of the cloud computing ecosystem, includes data centers and advanced technology solutions With 13 data centers across Vietnam, owning more than 9,000 racks and a floor area of up to 60,000 square meters, Viettel IDC is leading in data infrastructure in Vietnam The strong connectivity through the largest main optical fiber system in the Indochina region, along with 5 international submarine fiber optic cables and an extensive optical fiber network across 63 provinces, allows Viettel IDC to offer a range of cloud products and services, ensuring to meet all customer requirements CMC is currently one of the largest and most reputable providers in Vietnam, offering a full range of services such as software, servers, and more Based in Vietnam, the United States, Japan, China, and South Korea, CMC also has two data centers in Hanoi and Ho Chi Minh City, which are among the largest in Asia Each facility can store about 300 rack cabinets with Tier III standard infrastructure equipment Cooperation with reputable domestic cloud service providers will help Bamboo Airways strictly comply with legal regulations on data storage and receive timely support when necessary
Following that, the development of a call center, chatbot, and big data will facilitate customer interaction and use of Bamboo Airways' services, building a solid foundation for Bamboo Airways' digital transformation in the future
To achieve the goal of collecting customer data and improving service quality, Bamboo Airways needs to develop a separate chatbot and call center system Before starting, identifying some important factors is an indispensable step:
- The main users of the chatbot are Bamboo Airways' customers, but it may also include potential individuals in need of information and aviation services
- They use the chatbot for the purpose of quickly searching for information, booking tickets, checking flight schedules, and resolving queries related to their trip
- The chatbot benefits consumers by providing an instant interaction channel, reducing waiting time, and enhancing access to information For Bamboo Airways, it helps optimize work processes, reduce pressure on employees, and collect valuable data from customers
- However, chatbots also have limitations such as limited ability to understand and handle complex requests, sometimes they cannot completely replace human interaction, and need to be updated regularly to meet the changing needs of customers
After implementation, collecting information on the extent of chatbot usage by customers is necessary This requires Bamboo Airways to obtain a significant amount of data Vin BigData, a joint-stock company, will play a crucial role as a partner in building Big Data Vinbase brings advanced technology solutions and products based on big data and artificial intelligence, including the provision of virtual assistants through various communication channels such as text channel virtual assistant (VinBase Chatbot), call center virtual assistant (VinBase Callbot), and comprehensive virtual assistant for businesses (VinBase Virtual Assistant - ViVi)
Phase 2 will be deployed at the beginning of the second quarter of 2025, following the completion of Phase 1 The estimated cost for the development of the data system and database, and the construction of a firewall to ensure information security for customers and businesses is about $100,000 USD
The data platform plays a crucial role in ensuring safety, securing information, and promoting effective marketing activities for Bamboo Airways The development of a comprehensive data system and database brings numerous practical benefits to the airline's diverse operational areas, contributing to enhancing its position and competitive ability in the market
2.2.1 Development of Data Systems and Databases
For enhancing market research effectiveness, electronic data systems minimize storage burdens by easily storing large volumes of survey data, saving costs and storage space compared to traditional paper-based methods Moreover, the ability to flexibly compare data allows Bamboo Airways to quickly and efficiently compare survey results of the same customer over the years, aiding in tracking customer behavior and demand trends over time Instant updates of survey data ensure accuracy and consistency, while the system also smartly supports by alerting when survey information is incomplete, helping to reduce errors and data omissions Additionally, secure storage systems prevent data duplication and loss, protecting survey data from the risk of misplacement or theft Expanding the survey population also becomes easier through online survey channels, enabling Bamboo Airways to reach more potential customers Thus, a comprehensive data system not only enhances market research efficiency but also plays a crucial role in driving marketing activities and strengthening the competitiveness of this airline
Regarding the effective enhancement of human resource management - one of the key factors helping Bamboo Airways maintain high operational capacity and improve work efficiency The system synchronizes personnel information storage from before, during, and after an employee's tenure at the company, including basic information, decisions, performance evaluations, remuneration, discipline, and planning Personal information management is conducted in a structured, scientific manner and is easily accessible, ensuring the accuracy and consistency of the data
This system also ensures the security of information by strictly managing access, allowing only authorized departments or individuals to view and edit relevant employee information Thanks to this, Bamboo Airways can manage its personnel more effectively, saving time and costs, while also creating favorable conditions to enhance the working spirit of the employees
Therefore, Bamboo Airways may consider deploying cooperation with MISA Joint Stock Company MISA is a leading enterprise software provider in Vietnam with many years of experience in providing big data solutions for small and medium-sized enterprises MISA is capable of providing big data solutions that meet the specific needs of Bamboo Airways, starting with customer data analysis, helping them better understand customer behavior and needs to provide better services and attract more customers Next is the analysis of flight operation data, which helps optimize flight schedules and improve operational efficiency by making decisions based on data about the condition of the aircraft and weather conditions In addition, MISA also provides financial and marketing data analysis, helping
Bamboo Airways monitor its financial situation and optimize marketing costs to attract more potential customers Using MISA's big data solution brings many benefits to Bamboo Airways, including improving business efficiency, making wise business decisions, and creating a competitive advantage over other competitors Especially, improving customer experience through customer data analysis is also one of the strengths of using this solution
In summary, MISA is a potential partner for Bamboo Airways in developing a strong data system and database MISA's big data solution not only reflects its suitability for the needs of small and medium-sized enterprises but also helps to enhance operational efficiency and optimize processes Additionally, it supports making informed business decisions for Bamboo Airways
Risk forecasting
3.1 Issue 1: Difficulties in investment costs and application of digital technology
The digital transformation process can cost a lot of investment, the cost of deploying and maintaining technology is relatively high compared to other costs, while the effectiveness of applying technology to production and business activities is relatively high not evident in the short term.
Solution: Collaborate with business partners
Protecting users' personal information and business information is very important, however, there are still many issues related to information security, causing concern for users.
• Firstly, Bamboo Airways needs to assess cybersecurity risks.
• Second, disseminate awareness about data security to all employees Bamboo Airways can periodically organize data security and cybersecurity training and orientation programs, which can use standards such as ISO 27001 or PCI DSS.
• Third, enhance the role of network security monitoring and access control Some solutions that can be applied in network security monitoring are IDS (intrusion detection system), IPS (Intrusion Prevention System) and SIEM (network security monitoring system) Currently, Bamboo Airways' access control is quite good and needs to be improved as technology increasingly develops.
• Fourth, perform database encryption If encryption and management are done carefully, stolen data will also be unreadable and unusable.
• Fifth, pay attention to endpoint security Because data leaves the system through exit points in the IT infrastructure, Bamboo Airways can manage data loss risk more effectively by choosing DLP (Data Loss Prevention) solutions with monitoring and action at exit points.
Conclusion
Evaluate the solution
1.1 Solution 1: Apply Big data and AI in promoting customer experience
1.1.1 Create personal login interface and customer profile:
Improve customer experience: login quickly and easily, customers can use many different login methods such as social network accounts, email, phone numbers, without having to remember much password; Personalized customer profile, the system can automatically collect and store customer personal information such as name, address, phone number, travel preferences, to personalize the experience experience for each customer; Suggesting appropriate information, the system can analyze customers' past data to suggest flights and services that suit their needs and preferences Bamboo can rely on the data that customers have provided or transaction history to be able to send notifications about specific promotions suitable to the current conditions, interests, and personal needs of each of their customers.
Increase operational efficiency: minimize errors in data entry, the system automatically collects and stores customer information, helping to reduce errors and save staff time; analyzing customer data, the system can analyze customer data to provide valuable insights about market trends, customer needs, helping Bamboo Airways make business decisions more discerning; improve customer service, the system can provide customer service staff with detailed information about customers, helping them better support customers.
Enhance competitiveness: personalize customer experience: Bamboo Airways can provide a more personalized customer experience compared to other airlines, helping to attract and retain customers; Improve operational efficiency: Bamboo Airways can save costs and improve operational efficiency thanks to the application of Big data and AI; Innovation and creativity: Bamboo Airways can use Big data and AI to develop new products and services to meet the increasing needs of customers From there, they will be provided with personalized experiences with the company's best services.
Implementation costs: The costs of deploying and operating Big data and AI systems can be high.
Data security: Bamboo Airways needs to ensure the safety of customer data and avoid information leakage If not designed properly, the login interface and customer profile may be hacked, losing security and affecting customer benefits Human resource needs: A team of highly specialized human resources is needed to operate and maintain the system, and if it is too complicated, customers may find it difficult to use.
Easy interaction: customers can easily interact with chatbots to perform operations such as logging in, updating profile information, booking tickets, answering questions, without having to contact staff by phone or email; 24/7 support, Chatbot can support customers 24/7, helping customers easily access information and answer questions at any time; Personalization, Chatbots can be personalized to provide each customer with an experience tailored to their needs and preferences.
Minimize the workload for employees: chatbots can automatically perform many operations such as answering frequently asked questions, supporting simple ticket bookings, helping employees focus on handling problems More complex topics; collect customer data, Chatbot can collect data about customer interactions with the system, helping Bamboo Airways analyze and improve customer experience; Saving costs, using chatbots can help Bamboo Airways save costs in operating the customer care department.
Providing superior customer service: Bamboo Airways can provide superior customer service compared to other airlines thanks to chatbot applications; enhance customer satisfaction, customers will be more satisfied with the experience of using Bamboo Airways' services if they are well supported by chatbot; Enhance brand image, applying and attract potential customers Easy integration ability, can integrate on many different platforms such as web, app, creating convenient conditions for customers.
The cost of developing and operating a chatbot can be high; Chatbots need to have good natural language processing capabilities to understand customer intent and provide accurate answers; Bamboo Airways needs to ensure the safety of customer data collected by chatbots.
Lack of human rights and interaction with people or there may be errors when giving feedback to customers, causing customer dissatisfaction or causing misunderstandings and creating difficulties for customers.
1.1.3 Applying biometric technology, improving the check-in process for passengers.
Speed up check-in: Customers can use biometric technology to verify their identity, replacing manual checking of identification documents, helping to shorten check-in time and reduce inconvenience for customers; Enhancing security, biometric technology helps verify customer identities more accurately and securely than manual checking of identification documents, helping to minimize the risk of fraud and protect information customer's personal information.
Providing a seamless experience: Combining biometric technology with Big data and AI can help Bamboo Airways personalize the experience for each customer, for example, automatically suggesting additional services suitable for each customer customer's need; Minimizing costs, using biometric technology can help Bamboo Airways save labor costs and document printing costs At the same time, it also makes the system difficult to hack and ensures the safety of personal information for customers
Improve productivity: Check-in staff can focus on supporting customers instead of spending time checking identification documents, helping to improve work productivity; Improved data management, Big data and AI can help Bamboo Airways collect and analyze data on customer behavior, thereby making more informed business decisions to improve service quality.
Providing advanced services: Bamboo Airways will become one of the first airlines in Vietnam to apply biometric technology to the check-in process, helping to attract customers and create competitive advantage; Enhance brand image, applying advanced technology will help Bamboo Airways enhance brand image and build reputation in the market; Expanding the market, Bamboo Airways can attract potential customers from international markets where biometric technology has been widely applied Partly it also saves time during the procedure.
Bamboo Airways needs to ensure the security of customers' biometric data, avoid information leakage, and customer acceptance Some customers may be afraid of using biometric technology due to rights concerns private Large-scale biometric systems require a solid infrastructure, including specialized machinery and equipment, a stable network system and a secure data warehouse Specialized software is required to manage and analyze biometric data and ensure system security Manpower needs staff with high expertise in biometric technology, system operations and equipment maintenance In addition to initial investment costs, a budget is needed to maintain the system's operation, including repair, maintenance, electricity and labor costs.
1.2 Solution 2: Apply Electronic Flight Assistant in the operating and management model
Improve flight operational efficiency: EFA can automate many manual tasks, freeing up time for the crew to focus on more important tasks such as decision making and emergency handling Enhanced flight safety: EFA can provide flight crews with accurate and real-time updates on aircraft status, weather and other factors, helping them make safer flight decisions Reduced operating costs: EFA can help reduce fuel, maintenance and repair costs by optimizing flight routes and monitoring aircraft performance Improve customer service: EFA can help improve the accuracy and punctuality of flights, while also providing passengers with up-to-date information on the status of their flights.
The EFA system needs to be integrated with other systems in the cockpit, such as the flight management system (FMS) and the warning and alert system (EICAS) Aircrew need to be trained to use EFA effectively Bamboo Airways needs to develop standard operating procedures (SOPs) for the use of EFA A reliable data infrastructure and communications network is required to support EFA.
Solution control
After developing and implementing specific digital transformation solutions, Bamboo Airways needs to take steps to control the solution to ensure operational efficiency and sustainability for the digital transformation process This helps business operations become more orderly and stable, while also providing contingency measures for unexpected situations Below are the analysis and control solutions proposed for Bamboo Airways.
2.1 Solution 1: Apply Big data and AI in promoting customer experience
2.1.1 Create personal login interface and customer profile a Monitor and evaluate effectiveness:
Track new account registration rates: Analyze the number of new accounts created in a certain period of time to gauge customer interest in the personal login feature Track customer profile usage rate: Analyze the number of customers accessing and updating personal profiles to evaluate the usefulness of this feature Collect customer feedback: Through surveys, interviews or analyzing reviews on the application to capture customer opinions about the personal login feature and customer profiles Compare the results obtained with the set goals: Evaluate the performance of the solution based on measurement indicators and compare with the initially set goals Adjust the solution when necessary: Based on the results collected, Bamboo Airways can adjust the interface, add features or fix errors to improve user experience. b Risk management:
Data security risks: Identify potential security holes in the system and implement measures to protect customer data such as encryption, two-factor authentication,
Availability risk: Ensure the system operates stably, limiting interruptions that affect customer experience Compatibility risk: Ensure personal login and customer profile interfaces are compatible with different web browsers and mobile devices Plan to respond to risks: Create a specific plan to handle risky situations that may occur, ensuring the system operates normally and does not affect customers. c Maintenance and updates:
Update the system regularly: Update software, patch security bugs and add new features to improve solution performance Periodic system maintenance: Perform periodic system maintenance to ensure the system operates stably and limits problems Monitor technology trends: Update new technology trends in the field of personal login and customer records to apply to Bamboo Airways solutions. d Training and support:
Employee training: Provide employee training on how to use the personal login interface and customer profiles to better support customers Provide customer support services, set up customer support channels to answer questions and guide customers in using the solution's features Collect employee feedback, collect employee feedback on solutions to improve service quality and improve operational efficiency.
2.1.2 Chatbot application a Monitor and evaluate effectiveness:
Track interaction rate: Analyze the number of messages exchanged between chatbots and customers to evaluate customer interest and usage of chatbots Track request resolution rate: Analyze the number of requests successfully resolved by the chatbot to evaluate the chatbot's performance Can cause discomfort for some customers due to lack of flexibility and ability to interpret appropriately for each customer. b Risk management:
Accuracy risk: Ensure chatbots provide accurate and up-to-date information to customers Security risks, identify potential security vulnerabilities in chatbot systems and implement measures to protect customer data Availability risks, ensuring the chatbot operates stably, limiting interruptions that affect customer experience Plan to respond to risks: Create a specific plan to handle risky situations that may occur, ensuring the chatbot operates normally and does not affect customers. c Maintenance and updates:
Update chatbot regularly: Update content, documents and add new features to improve chatbot performance Periodically maintain the chatbot system: Perform periodic maintenance of the chatbot system to ensure the system operates stably and limits problems Monitor technology trends: Update new technology trends in the field of chatbots to apply to Bamboo Airways chatbots Chatbots will handle simple and repetitive requests, freeing up employees to focus on complex issues that require more personal interaction Humans will play a supervisory role, ensuring interaction quality and intervening when necessary Data from these interactions will be used to continuously train the chatbot, improving its accuracy and processing capabilities over time. d Training and support:
Employee training: Provide training to employees on how to use the chatbot and resolve potential technical issues Provide customer support services: Set up a customer support channel to answer questions and guide customers in using chatbots Collect employee feedback: Collect employee feedback on chatbots to improve service quality and enhance operational efficiency By performing solution control well, Bamboo Airways can ensure: Operational efficiency: Chatbot operates effectively, meets customer needs and supports Bamboo Airways in improving customer experience Sustainability: Chatbot can operate stably and long-term, meeting the development needs of Bamboo Airways in the future Effective risk management: Potential risks are identified and handled promptly, minimizing impact on Bamboo Airways' operations.
2.1.3 Apply biometric technology during passenger procedures
Solution Control Applying biometric technology to passenger procedures
To ensure operational efficiency and sustainability of the solution applying biometric technology to passenger procedures, Bamboo Airways needs to perform the following solution control activities: a Monitor and evaluate effectiveness:
Track check-in time: Analyze the average time needed to complete check-in for each passenger using biometric technology compared to traditional methods Monitor error rates, analyze error rates that occur during the use of biometric technology, including identification errors, system connection errors, Monitor customer satisfaction levels, estimate Consult or analyze reviews to capture customer opinions about the experience of using biometric technology Compare the results obtained with the set goals, evaluate the solution's performance based on measurement indicators and compare with the initially set goals Adjust the solution when necessary based on the results collected Bamboo Airways can adjust software, change processes or add equipment to improve the operational efficiency of the solution. b Risk management:
Data security risks: Identify potential security vulnerabilities in the biometric system and implement measures to protect passengers' personal data such as encryption, access control, Availability risks ensure the system operates stably, limiting interruptions that affect the passenger check-in process Acceptability risks Some passengers may be hesitant to use biometric technology due to privacy concerns Bamboo Airways needs a communication strategy to raise customer awareness about the benefits and safety of biometric technology Prepare a specific plan to handle risks that may occur, ensuring the system operates normally and does not affect the customer experience. c Maintenance and updates:
Regular software updates: Update biometric system software to patch security bugs, add new features and improve operational efficiency Periodic system maintenance performs periodic system maintenance to ensure the system operates stably and limits problems Follow technology trends to update new technology trends in the field of biometrics to apply to Bamboo Airways solutions. d Training and support:
Staff training: Provide staff training on how to use the biometric system, resolve potential technical issues, and assist customers during check-in Provide customer support services to set up customer support channels to answer questions and guide customers in using the biometric system Collect employee and customer feedback: Collect employee and customer feedback on solutions to improve service quality and enhance operational efficiency.
By implementing solution control well, Bamboo Airways can ensure:
Effective operations help shorten procedure time, reduce errors and improve customer experience Sustainability: The solution can operate stably and long-term, meeting the development needs of Bamboo Airways in the future Effective risk management: Potential risks are identified and handled promptly, minimizing impact on Bamboo Airways' operations.
2.2 Electronic Flight Assistant application in operation and management model
To ensure the operational efficiency and sustainability of the EFA solution, Bamboo Airways needs to perform the following solution control activities: a Monitor and evaluate effectiveness:
Track flight performance: Analyze indicators such as flight time, fuel consumption, flight route accuracy, to evaluate EFA's performance in optimizing flight operations Monitor flight safety levels, analyze the number of incidents and flight safety violations related to EFA to evaluate the effectiveness of EFA in improving flight safety Operating cost tracking analyzes fuel, maintenance, repair, and other EFA-related costs to evaluate EFA performance in reducing operating costs Monitor crew and passenger satisfaction through surveys, interviews or feedback analysis to capture crew and passenger opinions on the EFA experience Compare the results obtained with the set goals to evaluate the solution's performance based on measurement indicators and compare with the initially set goals Adjust the solution when necessary based on the results collected Bamboo Airways can adjust the software, usage processes or supplement data to improve the operational efficiency of the solution. b Risk management:
Trello
https://trello.com/b/Th6quWPj/final-essay