Australian CIO Summit 2012               IS Transformation and Driving               Technology Investment Value          ...
Introduction• The repositioning and transformation of our airline under the ‘Game  Change Program’ business strategy is pr...
Virgin Australia & the Game Change ProgramVirgin Australia is in a period of substantial growth and change driven by theGa...
Game Change strategic goalsKey strategic pillars:                         •   Diversify revenue line                      ...
As the business transforms - IS must transform too…           Low Cost                Premium airline -Business           ...
IS strategic framework                     A trusted partner delivering technology                    capability that meet...
IS team objectives• Build an engaged and motivated IS team that is empowered to take action• Deliver solutions that facili...
Becoming ticketed airline…• Transform business operations and processes to deliver guests a  seamless travel experience by...
Becoming ticketed airline…• Delivering significant benefits to guests: o Providing enhanced, seamless, travel experience a...
Becoming ticketed airline…• Delivering significant benefits to our industry partners: o Facilitate enhanced interactions w...
Becoming ticketed airline…• Delivering significant increased business capability: o Removal of ‘workarounds’ currently enc...
Value-based sourcing – the past•   Large number of vendors bringing increased complexity, value dilution and    less consi...
Value-based sourcing – new approach•   Develop and Implement new Sourcing Strategy•   Communicate it internally•   Communi...
Sourcing principlesIn applying the sourcing decision framework the following dimensions wereconsidered:    •   Strategic v...
Service Towers      Tower                                               Sub ServicesService Desk         Service desk faci...
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Australian CIO Summit 2012: IS Transformation and Driving Technology Investment Value by Segar Reddy, Virgin Australia

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Australian CIO Summit 2012: IS Transformation and Driving Technology Investment Value by Segar Reddy, Virgin Australia

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Australian CIO Summit 2012: IS Transformation and Driving Technology Investment Value by Segar Reddy, Virgin Australia

  1. 1. Australian CIO Summit 2012 IS Transformation and Driving Technology Investment Value Segar Reddy Virgin Australia25 July 2012
  2. 2. Introduction• The repositioning and transformation of our airline under the ‘Game Change Program’ business strategy is progressing well• Platform for growth now largely in place• Early benefits from Game Change Program now flowing 1
  3. 3. Virgin Australia & the Game Change ProgramVirgin Australia is in a period of substantial growth and change driven by theGame Change Program led by Virgin Australia’s CEO John Borghetti. The GameChange Program aims to make Virgin Australia the airline of choice – for thecorporate market, as well as the leisure market, through the introduction of newand improved services, products and a fresh new look, whilst maintaining theVirgin service and flair. Virgin Australia’s vision is to: Be the airline of choice Be Australia’s best customer led organisation Do for corporate travellers what we did for leisure travellers “It never is business as usual. Business as usual is actually changing things.” John Borghetti The Australian, 5 May 2012 2
  4. 4. Game Change strategic goalsKey strategic pillars: • Diversify revenue line • Create global network • Access growth markets • Maintain cost advantage • Upgrade product and services • Invest in our people 3
  5. 5. As the business transforms - IS must transform too… Low Cost Premium airline -Business increased service levelsStrategy Carrier • More complexity - service offerings, processes, customer base etc • Larger, more professional organisation Low Cost Scale up IS capabilityChanges Carrier appropriate IS • IS has to enable and facilitate fast-paced business change • Develop solutions appropriate to a large organisation • Higher, industry practice expectations 4
  6. 6. IS strategic framework A trusted partner delivering technology capability that meets business aspirationsDeliver solutions Focus Deliver real Provide that transform on customer business value consistently the business outcomes and efficiency stable systems Engaged and motivated people Within this framework, our FY 13 priorities: • Deliver Unify Program • Robust systems • Game Change support 5
  7. 7. IS team objectives• Build an engaged and motivated IS team that is empowered to take action• Deliver solutions that facilitate the transformation of the business• Enable an improved guest experience through better management of guest processes and information• Optimise value from sourcing arrangements• Deliver systems and services in a cost effective manner• Provide robust and stable systems• Deliver innovative solutions for competitive advantage 6
  8. 8. Becoming ticketed airline…• Transform business operations and processes to deliver guests a seamless travel experience by adopting worldwide airline standards• Transition to ticketed operations by introducing the SabreSonic® Customer Sales and Service (CSS) system mid-January 2013• This program of work will: o Unify four airlines with two different reservation systems under one strong brand, operating under a single airline designator code on one reservations platform 7
  9. 9. Becoming ticketed airline…• Delivering significant benefits to guests: o Providing enhanced, seamless, travel experience across the Virgin Australia and partner airline networks o Easier to book and travel across our global network, enabling: seamless through-checking of baggage on partner airlines, Easier and more consistent recognition of guest preferences, no matter where you travel, Ability to provide additional Velocity benefits. 8
  10. 10. Becoming ticketed airline…• Delivering significant benefits to our industry partners: o Facilitate enhanced interactions with Travel Management Companies and travel agencies worldwide o Our domestic and international products will be available via all distribution channels and through the GDS it will be faster and easier for travel agents to book with Virgin Australia o Corporate travel agents will be able to book with greater ease, using a system that is a global standard o Easier for Alliance Partners to work with us - a single airline designator, adoption of IATA international airline standards, one set of processes for international and domestic operations 9
  11. 11. Becoming ticketed airline…• Delivering significant increased business capability: o Removal of ‘workarounds’ currently encountered by our team members because we use two different reservations systems o Integration of airline operations with one system and one designator code o Improved customer recognition and experience o Integrated seamless travel with our alliance partners o A more efficient industry standard Global Distribution System (GDS) process 10
  12. 12. Value-based sourcing – the past• Large number of vendors bringing increased complexity, value dilution and less consistency of practice as we have grown as an organisation• Contracts lack optimisation• Often short timeframes lead to indifferent results• New Group Procurement Policy is bringing improved consistency and compliance
  13. 13. Value-based sourcing – new approach• Develop and Implement new Sourcing Strategy• Communicate it internally• Communicate it to Vendor Community• Progressive roll out of tactical initiatives
  14. 14. Sourcing principlesIn applying the sourcing decision framework the following dimensions wereconsidered: • Strategic value - is a service considered core or non-core activity to Virgin? • Capability - does Virgin have the capability and capacity to do this function in- house? • Risks – what are the risks associated with each sourcing option? • Costs / Value – can Virgin obtain better value through an alternative sourcing arrangement?
  15. 15. Service Towers Tower Sub ServicesService Desk Service desk facilities; Level 0 – self help; Level 1 – end user support; Service management (service integration); Service request management; End-to-end incident managementDistributed Desktop/laptop support; Printer support; PDA support; Desktop build/release;Computing Messaging & collaboration; Software distribution; Applications packaging & testing; Enterprise collaboration; Server based computing/thin client management; Physical install, move, add, changes (IMACs)Applications Applications monitoring; Applications support & maintenance; Applications enhancements; Training & knowledge management; Application documentation; MiddlewareCentralised Server operational management; Database management; Centralised logComputing managementStorage and Backup Application backup; Network backup; Storage servicesComms (Network) Network monitoring; Network management; Network IMACs; Lan & WanData Centre Facilities management
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