How can one of the world’s longest continuously operating airlines embrace digital to create new and relevant experiences to grow? Katri explains which steps Finnair has taken to grow faster than ever.
About Katri
Katri is responsible for Digital Transformation in The Executive Board of Finnair Oyj as a Chief Digital Officer.
Katri's desire has always been to understand and work from the “big picture”, the pieces of the business system just need to fall into place in order for the idea to make sense for the customers and employees, be manageable and to make money - in other words to win the game. Katri has managed several high performing teams and companies in the age of the internet both at home and abroad.
With a solid background from management consulting Katri has combined business and digital throughout her career ranging from highly respected management consultancies to industry disruptors from the internet and design community.
2. A growth company focused on Asia-Europe
traffic
• One of the world’s longest continuously operating airlines (1923)
• Close to 11 million passengers annually
• Personnel of ~5000 employees
• 19 destinations in Asia, 7 destinations in the Americas and over 100 destinations in
Europe
• Modern, fuel efficient and streamlined fleet
• Best Airline in Northern Europe in World Airline Awards eight years in a row
• 4-star Skytrax rating
• Member of the oneworld alliance
3. All-time best Q2 result
• We moved into accelerated growth;
A350 fleet has now 10 aircraft
• Quarterly record in the number of
passengers; strong growth in load factor
• Solid growth in ancillary revenue;
Alipay on all Chinese routes boosts ancillary
sales
• Finnair Cargo grows
• NPS rose to 48 (Q1: 46)
• Finnair rated again as the best Northern
European airline in the Skytrax review
• Finnair named as the best European airline in
the TTG China Travel Awards
• Finnair Kitchen: catering reclaimed by Finnair
• We expect our full-year comparable operating
result to broadly double
4. Implementing a growth strategy 2018-2020
The growth plan and the four
previous focus areas were
reviewed and confirmed:
• Growth
• Customer experience
• People experience
• Digital transformation
• Doubling of Asian traffic in 2018 versus
2010
• Doubling of ancillary revenues in 2020
versus 2016
• New target for the number of passengers,
20 million in 2030
5. Know your game - what is happening around
us?
Technology
Employees Businesses
Consumers
Data
• Mobile becoming the main
platform for everyday life
from home to office – and
travel
• New digital services
adoption cycles very
short – look at Pokemon Go
• From ”availability to
lovability” in service creation
• ...
• Our peers investing
increasingly in digital - both in
customer interface and as
capabilities
• New competition from digital
platform players and start-ups
• Innovation focus growing in
Asia
• ...
• Future of work culture
increasingly in focus for
employees – purpose
important
• Digital tools to support the
new work
• Agile ways of working, not
just in service creation
• Cross-functional ways of
working
• ...
• Technology cheaper and
available for everyone - data
becoming one of the main
assets
• Artificial intelligence, virtual
reality, self-driving cars
within reach
• ...
6. • Where do we want to be and how to benefit from the
change around us?
• How to build value for our shareholders and
customers?
• Where to use digital for more efficiency and
employee experience?
• How to serve customers and sell more in the digital
world?
• What skills and culture we need to deliver the case?
• What technology do we need to deliver the case?
Choose your point of view - how do we want to
benefit from embracing digital?
VISION AND STRATEGY
PEOPLE, SKILLS AND CULTURE
BUSINESS MODELS
TECHNOLOGY
ORGANIZATION & PROCESSES
SERVICES & PRODUCTS
7. IMPROVING USER
FRIENDLINESS OF
OUR DIGITAL
SERVICES
OPTIMISING THE
BOOKING PROCESS
ADDING
TOUCHPOINTS FOR
ANCILLARY SALES
SERVING JAPANESE,
KOREAN AND CHINESE
CUSTOMERS WITH
LOCALISED SERVICE
1. GROWING OUR
TOPLINE
Increasing digital
sales both ticket
+16% and
ancillary +23%*
Looking at new
innovative
services/products
*Q2 results presentation, y-o-y figures
8. One of our main assets - digital customers
0
750 000
1 500 000
2 250 000
3 000 000
Jan 16 Feb
16
Mar
16
Aor 16 May
16
Jun 16 Jul 16 Aug
16
Sep
16
Oct 16 Nov
16
Dec
16
Jan 17 Feb
17
Mar
17
Apr 17 May
17
Jun 17 Jul 17 Aug
17
Finnair.com
YoY growth Aug16–Aug17
2,326,127
+11%
9. 2. RELEASING
CAPACITY FOR
GROWTH
BRINGING MOBILE
SERVICES TO OUR
PROCESSES
DATA DRIVEN PROCESS
ANALYTICS AND
OPTIMISED
OPERATIONS BASED ON
REAL TIME DATA
IMPROVED
COMMUNICATIONS
AND INCREASED
SITUATIONAL
AWARENESS
BUILDING MORE
INTELLIGENCE TO THE
PROCESSES
Mindset to
increase
efficiency by
double digit
10. 3. CREATING GREAT
CUSTOMER EXPERIENCE
Customer NPS 48
Individual visitors
MAU for mobile
app
Growing Wifi
uptake
UNDERSTANDING
USER NEEDS AND
DIFFERENT
TOUCHPOINTS
DIGITAL
EXPERIENCE ALSO
ONBOARD - NORDIC
SKY
BUILDING OUR
DIGITAL PLATFORM
FROM CUSTOMER
POINT OF VIEW
UTILISING NEW
WAYS OF
INTERACTION
11. Developing our digital platform
Finnair
Digital
Platform
FINNAIR.COM MOBILE APP IFE NORDIC SKY FINNAIRSHOP CHATBOT (AI)
New records in digital channels:
Finnair.com 2.5 million visitors / month* (+31%)
Mobile app had 160,000 monthly active users* (+ 79%)
Q2 results presentation, y-o-y numbers
12. 4. TAKING EMPLOYEE
EXPERIENCE TO A NEW
LEVEL
FROM AVAILABILITY TO
LOVABILITY
Employee
experience
Usage numbers
of
internal digital
services
DIGITAL SERVICES FOR
OFFICE WORKERS –
WORKDAY
FUTURE OF WORKDATA BASED LEADERSHIP
13. 5. DEVELOPING
NEW CAPABILITIES
NEW DATA CULTURE –
COMMERCIAL OCC TO
SUPPORT DIRECT SALES
OPERATIONS
RECRUITING AN AGILE
TEAM TO DEVELOP
DIGITAL SERVICES
INNOVATION AS A
CAPABILITY
PEOPLE
TRANSFORMATION – A
TEAM OF 5000 DIGITAL
EMPLOYEES Digital maturity
index
(base 2016)
Develop/run %
New
businesses
14. Our transformation program is designed to deliver on our
business targets
VISION AND
STRATEGY
Clear direction and
strategy for digital
transformation
COMMERCIAL
TRANSFORMATION
Being where our
customers are,
marketing and selling
our services&products
in a personalised way
OPERATIONS
TRANSFORMA
TION
Renewing
processes with
digital services,
data and
automation
CUSTOMER
EXPERIENCE
TRANSFORMATION
New ways of delivering
value through
new/improved services
and interactions
along the customer
journey
DIGITAL PEOPLE
EXPERIENCE
Digital awareness and skills
development across
the company
INNOVATIVE IT AND
WAYS OF WORKING
A bi-modal IT model with
agile teams
ENHANCED
CAPABILITIES
Focusing on data, digital
and innovations
capabilities
GROUP FUNCTIONS
Going from
availability to
lovability and
embracing new ways
of working