Air India - ERP Implementation Case Study

1. Air India – A Case Study
ES Group 3:
Anurag Aran
Aranya Deb
Argha Ray
Sandeep Arora

2. A brief History
 Tata Airlines founded by JRD Tata in 1932
 Tata Airlines nationalized as Air India International in
1946
 Indian Airlines commences operations in 1953 for
domestic routes
 Air India enters Jet Age in 1960 with Boeing 707
 Low cost airline Air India Express launched in 2005
 Financial distress from 2005
 Air India and Indian Airlines merged in 2007

3. Crisis in 2009
 Escalating costs, particularly of ATF (Aviation Turbine
Fuel).
 Fewer passengers, particularly in the premium class.
 Low fares with a gradual shift of passengers from
traditional full service airlines to low cost airlines.
 Decline in carriage of cargo.
 Excess capacity in a „falling‟ market.

4. Turnaround Plan (TAP)
 Focus on execution, accountability, cost reduction and
revenue generation.
 Adopt international best practices in airline operation.
 FY10 – Focus on “Survival”
 FY11 –Business restructuring
 FY12 – Focus on Healthy operating margins & deliver the
„future‟ Air India

5. Project Sangam

6. Phases

7. Benefits

8. Milestones
 Project Preparation – Phase of an SAP project where
you form the teams and plan for the project.
 Blueprint Phase – Phase in which processes,
organization structure and data elements are defined.
 Realization Phase – Phase in which the processes are
configured in the SAP solution
 Final Preparation – Phase in which the User
Acceptance Testing, End User Training and final data
load in the new system takes place
 Go-Live – Phase in which the system is rolled-out in the
organization and support is provided

9. Techno Functional Architecture

10. Implementation Issues
 Change in top management
 Delays
 Lack of Coordination
 Implementation Approach
 Data Issues

11. Key Learnings from ERP
Implementation
 BOB provides the best fit in terms of functionality but integrated
ERP implementation is better in terms of handling project
management, cost and resource requirement, simplicity of
implementation.
 Top management support is must for taking ERP implementation
initiatives.
 Project management and coordination needs to be strengthened
before going for BOB implementation.
 Change management needs to be handled carefully and objective
and benefits of the project should be clearly stated.

12. Key Learnings from ERP
Implementation
Data redundancy issues can come up in a best of breed
solution.
 A best of breed solution can increase costs for supporting
technology acquisition and maintenance costs.
 Usability and the ability to collaborate are often diminished
with a collection of best of breed.