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Creating the Future of Airline Travel Through Digital Transformation- Nandor Locher (ThoughtWorks Live)

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As one of Australia’s most well-known and trusted brands, Qantas is on a journey to evolve from a traditional airline into a digital business. But how does an almost 100-year-old company continue to adapt and thrive in a world where consumer expectations are driven by “best in class” digital experiences?

Head of Qantas Digital Direct, Nandor Locher, shares how Qantas has begun to transform their digital experiences across all touchpoints along the customer journey. By fundamentally changing their organisational structure, the way they work and the way they think and engage, Qantas has been able to develop transformative practices and deliver return on investment.

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Creating the Future of Airline Travel Through Digital Transformation- Nandor Locher (ThoughtWorks Live)

  1. 1. Creating the Future of Travel Through Digital Transformation ThoughtWorks Live Series, Sydney Oct 2018 Nandor Locher - Head of Digital, Qantas Airways
  2. 2. Heading Where we find ourselves01 / Moving mountains02 / Tangible benefit03 / Lessons from climbing mountains04 /
  3. 3. Where we find ourselves
  4. 4. Qantas Airways Incredible complexity and scale
 Distributed digital teams and broad stakeholder community across the Group Challenges of alignment
 Inconsistent approach across teams, departments and crafts Large digital operations
 Ecosystem of digital channels and assets generating over $3b in revenue One of Australia’s most well-known and trusted brands. Large organisation with incredible complexity, catering to the needs of a broad range of customer segments as well as an array of internal stakeholders.
  5. 5. Everything around us Advances in digital technology is impacting every sphere of life Customer expectations
 are changing driven by “best
 in class” digital experiences We are facing stronger competition from a broadening range of players within the travel industry Channel mix and booking behaviours are shifting
  6. 6. What is the case for change? Speed to Market Value Creation Effectiveness Agility Innovation Competitive Differentiator Internal Business Partner Digital Employer of Choice
  7. 7. Digital Transformation Digital Experiences (The What)
 Transforming Qantas’ digital experiences across all touchpoints along the customer journey Digital Technology (The Enablers)
 Continuing the transformation of our technology platforms and capabilities Digital Operating Model (The How) 
 Fundamentally changing the organisational structure, the way we work, think and engage Digital transformation at Qantas consists of several dimensions and has 3 core programs of work, covering the WHAT, HOW and ENABLERS
  8. 8. Moving mountains
  9. 9. The vision for Qantas Airways “We create the future of travel through world-class digital experiences”
  10. 10. Culture Leadership & decision-making Prioritisation & funding Structure Measuring performance & success Capability & education Technology & tools Ways of working A holistic transformation: 8 pillars
  11. 11. Building a strong business case Investments in a world-class digital organisation and capabilities will create value for customers, the business and employees. Unlocking Value A key foundation for the new model is to move away from project-based funding to capacity funding and persistent teams
 Capacity Funded Teams Digital is a core enabler of the broaer CX strategy. Putting the customer in the center of all considerations and commit to investment into customer experience. Customer Strategy
  12. 12. Customer centric, Cross-functional Domains and squads Domain Domain Squad Chapter Guild
  13. 13. Ways of working We embrace a culture of failing fast, often and with value in a structured process, informed by multiple data sources leading to creative, innovative and constantly improving solutions that encompass the entire spectrum of customer experience. Desirability Viability Human Centred Design Feasibility Agile Startup Thinking Technical Excellence Culture
  14. 14. Focus: Culture
  15. 15. The scope and nature of the culture challenge Emergent, amorphous,
 changes over time Tactical, problems have obvious solutions, known outcomes Key Challenges ● Leadership ● Ambiguity fatigue ● Change fatigue ● Lack of understanding of scope and scale of transformation Culture change is a “cloud problem”, not a “clock problem”.
  16. 16. Organisational belief: Structure, Vision, Governance01 / Team belief: Ways of working, alignment, team dynamics02 / Professional belief: Mastery, future skills, quality & craft03 / Self belief: Fulfilment, wellness, purpose, social connections04 /Self Belief Professional Belief Team/Group 
 Belief Organisational 
 Belief
  17. 17. Creating a culture of alignment and autonomy Qantas group vision Target CX Vision Digital Vision Transformation Vision
  18. 18. Focus: Leadership
  19. 19. Key Challenges ● Leadership capacity ● Prioritisation of transformation vs. BAU ● Capability. skills & experience ● Change management ● Thought leadership and co-creation ● Cultural change ● Accountability and ownership Leadership challenges
  20. 20. Modelling leadership Servant leadership
 Involving others as a priority, aim to serve the team and remove obstacles Psychological safety
 It’s okay to be wrong, to not know the answer, to not understand Alignment on vision
 Every leader across the business able to stand behind the vision and purpose Shifting an entire operating model depends greatly on the leaders attached to the business. A significant effort was placed to ensure key leaders are brought along to see the benefit of how Qantas aim to work for 2018 and beyond. While skilled in their area of expertise, many leaders are not experienced in change management. Support is crucial.
  21. 21. Focus: Scale
  22. 22. Size and scale of the transformation increases complexity significantly and is a key aspect to be managed 01 / Digital teams are deeply integrated across the business and need to operate alongside enterprise processes 02 / Start small to test and learn, but scale at speed and with determination to get the job done and avoid change fatigue 03 / Change at this scale needs time to be fully embedded. Be pragmatic and patient about the journey. . 04 /
  23. 23. Tangible benefit
  24. 24. Early signs of success ● Greater collaboration and engagement across teams and with stakeholders ● Speed to market through frequent iterative cycles increasing ● Improved value-based prioritisation and transparent demand management ● Increased sense of accountability and ownership amongst teams, driving employee engagement ● Growing focus on addressing customer pain points and improving customer experience
  25. 25. Lessons from climbing mountains
  26. 26. Do Invest in the HOW It will unlock the WHAT Seek holistic change
 A new tool or platform does not sufficiently change the business Champion autonomy 
 Limit hierarchy, give staff missions and make sure they are given freedom Align everything Values, vision, CX and transformation are all linked, and need to align for people to fully see the benefit
  27. 27. Do not Mistake technology for transformation People are always our biggest assets. Always. Change starts with people. Rush
 Holistic change is time-consuming by design. Forget leaders While leaders are generally ‘bought in’, don’t underestimate effort required Be a lone wolf 
 Find great partners to help you execute, and focus on what’s important
  28. 28. “We create the future of travel through 
 world-class digital experiences”

  29. 29. Thank you

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