Xây dựng và hoàn thiện hệ thống thông tin giai đoạn 5 năm từ 2012 đến 2016 và tầm nhìn đến năm 2020 của jetstar pacific e

Title: Building and improving information system of Jetstar Pacific Airlines for the 5-year period from 2012 to 2016 and vision to 2020 Introduction of Jetstar Pacific Airlines 1.1 The process of development The company was established and put into operation by the decision 116/CT on 13/04/1991 and 188/CT on 15/06/1991 of the President of the Council of Ministers; Decision No 2355 QD / TCCB-LD on 12/12/1990 and Decision No 2016 QD / TCCB-LD on 20/09/1992 of the Minister of Transport and Post Office This is the first state-owned airline company in Vietnam after the law is adjusted to allow foreign investment to the aviation sector The initial shareholders include seven state-owned enterprises with total capital of 40 billion VND, in which the Vietnam Civil Aviation Department and four other affiliated enterprises accounted for 86.49% of total In 1993, the Vietnam Civil Aviation Department restructured to become National Vietnam Airlines (Vietnam Airlines) The stock of Civil Aviation was transferred to Vietnam Airlines In 1995, Pacific Airlines became the member of Vietnam Airlines and became a member of the Vietnam Aviation Corporation (Vietnam Airlines Corporation) since 1996 By 2007, Quantas Group (Australia) has acquired 30% share of Pacific Airlines to become a strategic shareholder and decided to change its name to Jetstar Pacific Airlines, opening a new page in the history of the development of Jetstar Fleet: The firm has two Boing 737- the most successful commercial aircraft in the world- and four Airbus A320s In the future, this system will be replaced entirely by Boing A320 and the number of planes will be increased to to 35 by 2020 Destinations: Domestic: Hanoi, Ho Chi Minh city, Hai Phong, Hue, Vinh… International: Kaohsiung, Macau, Hong Kong, Singapore 1.3 Orientation of IT development of Jetstar Pacific Airlines The Jetstar's development objective is to build a strong IT aviation system The period of 20122020 is very important for the development orientation The target is to construct a modern IT system which closely follows the development of global technology and is able to manage a large airline company in the region IT system is a part of the production system and must be developed together with the whole system, even taking a step forward Prioritize and synchronize the development of infrastructure, application and integration of the whole system, building CSDL system and information sharing throughout the corporation Providing customers and internal staff a completed, modern, safe and efficient IT system is necessary There are main objectives:  Objective 1: construct core systems meeting the requirements of management and largescale exploitation (in terms of number of aircrafts, number of passengers and routes); take priority to Operation sector; Trading Services; Management; Financial Accounting  Objective 2: develop modern and convenient services to customers Keep up with the trends and the level of technology in the ASEAN region  Objective 3: Ensure the safety and stability of IT system, meeting the requirements of production and business system  Objective 4: Manage IT costs closely and invest effectively Other objectives: - Construct a modern and convenient working environment - Attract and encourage employees who have experience and responsibility Rejuvenate the IT staff The situation of IT application at Jetstar 1.1 The situation Since 2001, Jetstar (still under the control of Vietnam Airline at that time) had built a plan on information technology as a guide for the development of information technology projects During this period, the company had invested in critical applications in the blocks of Trading Services, Financial Accounting, Operation and Technical sector The detail can be listed as follows: About infrastructure of equipment and technology: Jetstar has equipped personal computers for all official workers; being one of the earliest units who take the Internet into working environment About Finance and Accounting management: The firm has invested in GAS (General Accounting System) of Oracle This is a general accounting system in accordance with international standards, including modules corresponding to the key functions of the Accounting activities such as setting up ledger, management of accounts receivable and payable, management of inventory and fixed assets About Revenue Administration: In 2007, Jetstar invested in RAS (Revenue Assurance System) of Kale This revenue administration system allows the firm to link all stages of operation, from ticket sales to payments and reports About ticket sales, booking and reaction with customers: Together with Computerised Reservation System which allow direct booking and connection to distribution system, the company has developed E-commerce from 6/2009 (software is developed by Sabre) Customers can easily buy ticket, book online and check all information via the website of Jetstar About services at airport: Jetstar invested in Distribution Control System of Sabre This system allows employees to access to the information of customers to provide special services About flight schedule: Netline system is used to control flights in seasons, in weeks and days About technical maintainance(MRO): Jetstar has invested an IT system which meets international standard of AMASIS; About regular customers program: Jetstar has used the software of customer management, including personal information, accounts and preferred policy All are connected to the system of other airline firms so that the customers can get bonus points even when they are on the flights of other firms About flight schedule and crew management: Crew management system of Lufthansa System is used to make a proper schedule About goods management: The system of Sita allows the firm to manage orders and goods on the flights With such investment, Jetstar can be classified as moderate rate in the aviation world in the application of information technology for business operation 1.2 SWOT analysis Strength: - Jetstar Pacific Airlines is considered as a dynamic firm which is on the rise; - The firm has long-term plans for the application of information technology; - Basically, investment projects meet the information technology needs of an advanced firm, better serving for production and business activities; - Officers and employees of Jetstar in general and information technology team in particular adapt to the modern environment, new technology to cater effectively the job; - The company began implementing a professional model of the operation of information technology (general management corporation; outsource some information technology services) Weaknesses - The company does not focus on the synchronization between different sector Leading to the situation that application is effective in each sector but not effective when liking between the sectors; - Schedule of information technology projects is long Therefore, some projects not meet business needs; - After one period of operation, a number of application systems go down in quality (for example: Netline Scheduling System, Crew management) The reason: + No focus on training and retraining for the operation of the application; + No regularly review and improve the extraction process; + No focus on maintaining and ensuring effective operation after the system goes into operation - In addition, the company has not invested some useful software to increase the efficiency of production and business activities (eg: Rout Profitability management) Opportunities - Vietnam Airlines will continue to be listed on the group of best growth in the world for the next 10 years, creating a favorable environment for IT investments; - The growing trend, the power of information technology and e-commerce allows firms to have more choices, more tools to make new business ideas; - The IT understanding of Vietnamese passengers increases, helping them cope better with the application of new technologies Challenges - The direct competitors such as Thai Airways, Singapore, Vietnam Airlines or Indochina Airlines have advande IT foundation, making a considerable distance for Jetstar - In general, customers of Vietnam (especially the Vietnamese) are not able to afford high costs, affecting the financial performance of the investments, the payables and payback period for the major information technology projects - Domestically, e-commerce and legal systems are not yet complete IT firms provide services with not-so-high quality These are difficult for the IT development of Jetstar Jetstar Airlines in comparison with other firms (Indochina, Vietnam Airlines, Singapore Airlines…) Although there have been significant advances in the field of IT applications in business and corporate administration, but compared to other airlines, Jetstar Pacific Airlines is still left behind with a considerable gap Here are some new applications of information technology airlines: Application Route Management System: Firm VNA, Situation of Jetstar Lufthansa, Not yet This is a system that allows Indochina Airlines Revenues and costs are connection to the database of only calculated in total in a revenue, online cost and the certain period If the firm efficiency of each flight after wants to calculate for each takeoff flight, they must use the Wireless Inflight Equipment: American method of re-allocation Airlines, Not yet This system allows passengers Singapore Airline… Cables are used connect personal electronic devices such as laptop, smart phone, or tablet with a server on the plane without using a cable This solution reduces the weight of the airplane, improve the efficiency of operators and service providers SMS Boarding pass: Emirate, This service allows customers Airway, to access website to to the check Singapore On research Quantas airline's Airway flight information and get a link barcode boarding sent to mobile phone At the airport, passengers can scan the bar code which is displayed on the mobile device screen, in full security and during boarding Mobile and Internet services Delta Airlines, On reseach on the plane Airlines, E-magagine American service Singapore Airlines allows Singapore Airlines On research customers to read journals, magazines and catalogues on the screen in stead of on the papers Strategies and plans of IT application of Jetstar Pacific Airlines Currently, the application of information technology in the aviation sector is very diverse, more advanced, modern, aiming to make passengers comfortable as much as possible However, for each airline firm, investment plans need to perform on the basis of its general orientation with special features of passengers In particular, for Jetstar, when investing, it is necessary to study carefully the following factors: - Vietnam's economic situation and the international flight market is expected to exploit These factors directly affect to the affordability of passengers traveling on Jetstar In fact, the affordability of Vietnamese citizens is not high (Income per capital is above 1,000 USD, low income in the world) Foreigns coming to Vietnam almost have the average incomes - The level of cultural requirements and use of customer service Passengers of Jetstar not have high requirements in terms of service quality, convenient but pay more attention to the reasonable ticket prices 4.1 Strategy of IT application development of Jetstar Pacific Airlines Basing on above factors, the development strategy of IT application of Jetstar in the next years is: - Develop long-term strategy for information technology application on the basis of overall analysis of market factors, the ability to finance, regulatory environment, etc - Prioritize investment in application development of infrastructure platforms such as: database, uniform, ticket sales, reservation, revenue management, cost agencies can be accessed and used to analyze and reported on the various specialized sections - Renovate and complete the organization of IT department and IT system Clearly define the functions and responsibilities between Headquarters units, from the leaders to the experts; take strong innovative methods from self-ensured activities to operating management mode Strengthen human resources in terms of quantity (in the scheme) and quality - Improve the capacity of management from quantity to quality; use the quality as a measure of service evaluation; Increase the control of costs; ensure the efficiency of IT and communication operation; enhance equipments and improve management methods in accordance with international standards - Do market segmentation (flying habits, ability to pay, competitiveness) to focus in appropriate technologies For example: the long flight to Singapore, Australia will be invested with advanced entertainment media; For short flight to the local airport in the country, the level of investment is limited since customers not need entertainment when the flight time is too short, they care more about a reduction in ticket prices - Develop systems which are consistent with IT applications, strictly manage the quality of services, gradually improve the quality of IT services to ensure high reliability, strive to provide a complete set of IT services with reliability comparable to the leading firms in the region - Regularly update technology trends in the aviation industry in the region and in the world Recognize the challenges and opportunities to ensure IT infrastructure one step ahead of business requirements - Improved investment procedures of information technology projects Find plans to accelerate investment and ensuring compliance with provisions of the state - Pay more attention to the project, ensure good management and quickly put the project into operation effective exploitation - Construct the management apparatus and optimize information technology costs - Regularly training and encouraging employees to operate the application of information technology experience and responsibilities 4.2 Detailed plans of Jetstar Pacific Airlines - Upgrade/Invest new system of MRO (Maintenance and Repairs Operation); - Upgrade / Invest new system of flight scheduel, Fight control, Pilot management; - Upgrade and complete the functions of Website, ensure the access speed and easy-to-use interface for customers; - Invest to the system of route analysis; - Upgrade three Call Center systems at local offices to a concentrated Contact Center; - Invest to the software of human resources adminisrtation; - Invest to the system of information administration; - Implement the system of resources management; - Implement IT application on the flights (Information and entertainment) - Manage the quality of services provided by the third side; Usually estimate IT service providers; - Invest to improve the security and safety for customers Investment Portfolio Estimated cost in 2016 Estimated from 2016 to 2020 Flight management 200.000$ system (Buying 80.000$ (Cost of upgrading software of Oracle and and maintaince cost for maintaining the system) years) ERP, MIS System 500.000$ (Buying 100.000 (Cost of upgrading software of FPT) Website system and 50.000$*4( year)=200.000 75.000$*4 =300.000$ online sales Information and maintaining) $ and 240.000$ (40.000 $/plane) 1.050.000$(70.000 $/plane) Entertainment system in the plane Management system and 60.000$ (15.000 126.000$ Server Maintainance $/Server/year) (18.000$/server/year) Total Cost 1.200.000$ 1.656.000$ Total IT cost of Jetstar from 2012 to 2020 is 2,856,000 USD, in which the cost for the period of 2012-2016 is 1.2 million USD, mainly including cost for operating equipments (an average of 300,000 USD/year) In the period of 2016-2020, in order to meet the increasing needs of passengers, Jetstar will focus on Wireless and Entertainment system on the plane, and continue to expand and maintain the management system However, in order to provide better services, Jetstar will continue to open two more servers in the 2012-2016 and reach the targert of seven servers With the high demand of customers and positive expectation of revenue, the cost of information technology is less than million USD/year and totally reasonable CONCLUSION In recent years, Jetstar Pacific Airlines has always being pioneer in the technological investment and IT application in manufacturing operations However, in order to achieve the leading position in Vietnam and have a certain place in the region, the company needs to continue to study longterm strategy of investing and applying information technology and e-commerce Thereby, the company can increase the efficiency and improve the quality of services, also improve the competitiveness of companies in the aviation market  ... staff a completed, modern, safe and efficient IT system is necessary There are main objectives:  Objective 1: construct core systems meeting the requirements of management and largescale exploitation... Wireless and Entertainment system on the plane, and continue to expand and maintain the management system However, in order to provide better services, Jetstar will continue to open two more servers... Clearly define the functions and responsibilities between Headquarters units, from the leaders to the experts; take strong innovative methods from self-ensured activities to operating management