Information System Use by Air Asia - 1

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Information System Use by Air Asia
Information System of Air Asia

Information systems are implemented within an organization for the purpose of improving the effectiveness and efficiency of that organization. Capabilities of the information system and characteristics of the organization, its work system, its people, and its development and implementation methodologies together determine the extent to which that purpose is achieved. Air Asia has carry out three type of information system such as yield management system (YMS), customer reservation system (CRS), and enterprise resource planning (ERP) system. This system make Air Asia more effective and efficiency and possibly able to reduce the cost and eliminated inefficiency in their business.

Yield Management System (YMS)

Yield management system as known revenue management system. It understands, anticipates, and reacts to the behaviour of customer to maximize revenues for the organization. In this system, Air Asia used it to takes into account the operating costs aids Air Asia to optimize price and allocate capacity to maximize expected revenues.

Air Asia has done two level of optimization that is Seat and Route. For seat is considered an opportunity to maximize revenue. Seats are available at various prices in different time. A reservation done at a later date will be charged more than the one done earlier for the same seat. Route is the adjustment of price through a demand when the demand is higher compared to other. The effective method however is to combine these two levels for all flights, all routes so that both the seat and the route are effectively priced for all the flights.

Air Asia can more understand the behaviour of customer and offering the effectives and efficiency strategy. It also can be allocate capacity to maximize the expected revenue. Air Asia can make efficiency to know their customer using IT technology with lowest cost by using this system.

Computer Reservation System (CRS)

It is an integrated web-enabled reservation and inventory system suite powered by Navitaire Open Skies technology that includes Internet; call center and airport departure control functionality. Centralized customer data is also maintained by Open Skied and this help Air Asia to track booking and schedule fight activities with real-time, on-demand reporting feature. An important feature is that Open Skies seamlessly integrates with the already implemented YMS so that the system can be used in unison for pricing and revenue maximization and driving down the cost of operation at the same time.

CRS enabled Air Asia to introduce the first ticket less travel option and also provide features such as advanced boarding passes in addition to online booking that enabled the growth of Air Asia as these features attracted customers that did not have the time for purchasing tickets from counters and coming in 1 hour early for securing a seat on the aircraft.

Enterprise Resource planning system (ERP)
Integrated ERP solution powered by Microsoft business solutions (MBS) on Microsoft technology platform which is implemented by Avanade consultants in MA 2005.

With the robust ERP technology platform, Air Asia is able to successfully maintain process integrity, red financial month-end closing processing time, speeds up reporting and data retrieval process. Importance System to Air Asia

Importance System to Company

In today globalize economy; information technology has driven fundamental changes in the nature and application of technology in business. The implementation of information technology in its value chain provides powerful strategic and tactical tolls for Air Asia which if properly applied and used, could bring great advantages in promoting and strengthening the competitive advantages.

The system use by Air Asia make Air Asia more effective and efficiency and possibly able to reduce the cost and eliminated inefficiency in their business. Air Asia used...
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