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Southwest Airlines Presentation

Transcript: iCOnnect Improved operational efficiencies Lower overall cost for operations Identify and share key information quickly Integrated platform for gathering, processing, analyzing, and reporting customer’s ideas, opinions, sentiment Standardized foundation services for on boarding unstructured data Unified approach to improved business processes and align enabling technologies Saleable and sustainable infrastructure for expansion of social software services Social Networks: Benefits of Social Software and Web 2.0 Process Text Mining & Analytics 10.7 million - GroupOn 8.8 million – LivingSocial Your Customers There are also several blogs where obese people are voicing their dissatisfaction with the policy. 4 Facebook Likes 10,000 - FourSquare 100 million – LinkedIn 1. URL 2. Author 3. Influencer 4. Domains 5. Date 6. Marketing campaign 7. Brand & Image 8. Promotions 9. Sentiment 10. Opinions Process Text Mining & Analytics Social Software Landscape Negative 2MySi THE REST OF THE WEB 2.0+ IS EVEN BIGGER ! Page views Hover over Widgets/ Gadgets Clicks Shares Searches Interactions Initial level of effort: 4-6 weeks Geos 2-4 hours per discovery session Post meeting review Categorize notes Creating the product queries Products 1 – 2 hour session Review focused web query results Objectives and benefits Scope, schedules Product research focus Cross-functional teams Tapping Social Content with focused subjects and structured queries Web Metrics Blogs, forums, specialty sites, specialized search engines Interactive shopping sites, pop-up ads, and more! Leading practice and project accelerators to implement Social Intelligence services and technologies 3 Gathering structured and unstructured data Competitors' Social Media Business Case and Challenges Shopper Enterprise Data Warehouse CRM, MRM, SCM, Actions Islands of Solutions Gather Unstructured Content iCOnnect – The Corporate Listening Office Tools and Techniques The types of sites where the most discussion took place was blogs followed by news sites and forums. The most influential authors included vickyz and Soft-Knowledge Lost Business Intelligence: Deliver Structured Content Awareness Learning Measurement +1 469 258 8522 Practice Director – Social Intelligence BI 2.0 Practice How big is Social Software? 2 Social Media Listening The majority of neutral posts appeared on twitter with blogs having the most negative posts. Key Findings : Ken Martin Southwest Airlines has a Facebook Page with 1,699,275 likes. This page has frequent posts from Southwest Airlines and customers. Implement leading practices Social media listening and analytics Competitive Intelligence Knowledge networks DW/BI/Analytics integrations Strategic planning, implementation and support for “Voice of the Member” : Text mining; Text analytics; Social analytics; Community lifecycle Next Steps: Define the Pilot project and BEGIN LISTENING 25 million user Google’s network! Duplicate costs and efforts Thank You Technology Integration Platform Challenges Unstructured data: Email, web content, Radian 6, ClaraBridge, Oracle RDBMS, Enterprise ERP, Informatica, Data stage Analyze Automated – BPO Many customers approve of the double seat policy because they are tired of obese individuals spilling over into the chair they’ve paid for. Automated Events Publication of user feedback External Case Study: Fortune 100 “Voice of the Customer” Bandwidth = entire internet in 2000 3 Billion video views per day 200,000 uploads per day 300 million accounts 6% educational content 7 % from Europe Develop strategic plan to enable voice of customer services across all lines of business Define governance and foundation services for to gather, process, analyze, and delivery analytics across a variety of listening posts. Work with business owners and technology providers to understand the cross-functional requirements Develop scenarios with business owners to create priorities, need by dates, and align to implementation and integration activities Develop enterprise wide business and technology architecture Develop and utilize an Agile methodology for incremental deployment Alignment Goals Outcomes Focus Redundancy in initiatives No integrated processes Duplicate cost Loss of key information Create customer friendly social applications Cloud-based / software-as-a-service Crowd sourcing Corporate Communication: Results and Business Benefits “The glue” Analysts 360 Community Content Collaboration Publication Analytics Cloud-based SaaS 1 Validate and Prioritize Analysis and reporting cycle Periodic publication of findings for internal SME review Publish Insights reports Establish the Corporate Listening Office Southwest Airlines has a Twitter accounts named SouthwestAir and has 1,183,113 followers. Southwest is using the twitter account for customer service and interaction. Knowledge Management: Information Delivery Product research focus Known's and unknowns Reporting cycles Initiate

Southwest Airlines

Transcript: Brand Promise Low fares Efficiency & quality Fun and entertainment Highest quality of customer service Warmth and friendliness Value for Price Place Direct Websites Phone lines Offices Indirect Partners Travel Agents GDS (Galileo) People Employees Uniqueness "Be Real" Have fun Customers Education Compliance Excellent HR strategy Unique business model Customer service Social media Consistency in customer confidence Product Specially designed programs (baby boomers) Special attraction for kids (toys) Alliances with other companies Target growing Hispanic population Train employees for new market Upgrades & early boarding privileges (business travelers) Background Information Early booking Packages Southwest "Vacations" Discounts "DING" Children policy Recommendations on Weaknesses Marketing Mix: 7 P's Team 9: Jessica Yen, Roxane Pietro, Milena Liotard-Vogt, Lucrezia Picco, Axel Bernhard-Larson, Christina Neubrand References Promotion Thank you for your attention! Colleen Berret, President Honor Code "As a student at the Ecole Hôtelière de Lausanne, I uphold and defend academic integrity, academic rigor and academic liberty as core values of higher learning. I attest, on my word of honor, that work submitted in my name is my own work, and that any ideas or materials used in support of this work which are not originally my own are cited and referenced accordingly." Service Innovation Service Category Plane Uniforms Souvenirs Logo Passengers carried: 86 millions 3100 flights / day 72 destinations in 37 states 35 000 employees Net income: 99 million 547 Aircrafts International expansion: Canada Mexico & Central America Diversify the segments Create new services as alternative revenue center "...quality products, quick turnaround, and exceptional value..." Strengths Physical Evidence 1967 Air Southwest Co. in Texas First low cost carrier Financial losses 1978 expansion Airline aquisition: Morris Air, Muse Air & ATA Airlines AirTran Airways acquisition in 2011 Corporate culture (Unions & Team spirit) Service Category Southwest Airlines "Employees with good judgement, common sense, think with their hearts - human people that care about others" Price Base Product: Actual flight Peripheral: Service at booking time Service at check-in In-flight catering Derived Merchandising Process Facts & Figures (2009) "The prices always beat out competitors!" Operation in US market only Flight safety IT infrastructure Labour costs Dependents on seat revenue Weaknesses

southwest airlines

Transcript: Southwest Airlines - history: founder: Herb Kelleher steady service growth national achievements the Culture Committee VALUE 4: Take initiative to make things better. • Focus on constant improvements • Transportation of the LUVing attitude among all areas -> an emerging global image: happiness family values entertaining employees/customers disneyization ! (cc) photo by Metro Centric on Flickr VALUE 5: Lead by example. • Treat others as you want to be treated • Create a good working-climate • Be transparent and honest • Act and behave in consideration of the LUVing Spirit Albin: SW and its image Focused really on employees or on image ? artifacts VALUE 1: Focus on the situation, issue, or behavior, not on the person. •Find a solution instead of judging others •Be creative and cooperative critical aspects Dallas Espoused corporate values Las Vegas VALUE 2: Maintain the self-confidence and self-esteem of others. • Importance of different personalities • Southwest as big “Family” • Altruistic principles Conclusions VALUE 3: Maintain constructive relationships with employees, peers and managers. Teamwork and good cooperation as key to success Diana: basic assumptions types of corporate culture Notes Verena: Washington The Airline Industry: deregulation intense competition success: external and internal factors The Corporate Culture of Southwest Airlines the industry the history the leader (cc) photo by jimmyharris on Flickr “If a basic assumption is strongly held in a group, members would find behaviour based on any other premise inconceivable.” (Schein) personal enactment ceremonies and rites stories rituals symbols Alexandre: thank you for your attention! Artifacts: the most visible and accessible level of culture Maslow the flight plan SW’s culture as a barrier to change Possible dysfunctions in a rapidly changing environment Slow update of reservation software “They were too paralyzed in their in-the-box thinking about their airline”, says Mo Garfinkle, an airline consultant. critical aspects conclusions SW’s culture as a tool to control Control through a strong corporate culture “No strike culture” Sense of meaning and autonomy Happy attitude imposed on employees Basic assumptions ! Research Steffi: Humour and altruism “Be yourself” mentality Little hierarchy, mutual respect Turnaround times 35 000 supervisors Employee centred Best company to work in Dedicated, want company to be successful “We don’t want to be just another airline” president SW Pilots Association (cc) photo by Metro Centric on Flickr personell competence espoused corporate values "We were always very colorful and somewhat promotive of a sense of humor. We have always had that approach, in an informal way" (Herb Kelleher) Important Details Brainstorm

Southwest Airlines Presentation

Transcript: What factors of Cohesion make Southwest Airlines successful? Innovation Herb Kelleher: Southwest Airlines Don't Worry! Family atmosphere Staff Airline Deregulation Act Informality and Humor Managerial Tactics Credibility and Caring Athena Goddess Deregulation and Expansion 1. More frequent flights between current destinations 2. Open new routes to California and the Midwest 3. Buy more airplanes to increase the number of flights What do we think of our CEO? Concept Questions Concept Questions Able to maintain the Southwest model 1978 congress passes Airline Deregulation Act Southwest given opportunity to expand Expands to first state outside of Texas by operating in New Orleans, Louisiana Intermission Low external interactions No baggage fees How did Southwest actually respond? Conservative financial policy Elimination of bureaucracy Southwest begins operations officially in 1971 The Department of Transportation Triple Crown Fair to Customers There are Barriers to Entry! Say What?! Herb's Early Life Southwest Today Intermission Systems Teamwork Relational competence Leadership Happiness and Fun Now it's your time to shine! Was able to avoid massive layoffs Employees Forced to buy a second seat No first class or "frills" Herb Kelleher says "employees come first" Wesleyan University Met future wife Joan Negley Persuaded to try a career in law New York University Law School Stayed up all night drinking and partying Essentially removed government's role in airfare pricing and entry into the industry by airlines like Southwest Over Drinks Marketing 1990 turned an overall profit 1991 had very large expansion; 30 more planes than the prior year along with 5 more cities 1995 reached $2.8 billion in operating revenues Sued by the cities of Dallas and Fort Worth to move their airline to the Dallas-Fort Worth Airport in accordance with agreement signed by other airlines in 1968, even though Southwest did not exist to sign it! Southwest argued to stay in Lovefield, Texas, their original base of operations “Southwest Airlines would not be in existence today had not the other carriers been so rotten, trying to sabotage us getting into business, and then trying to put us out of business once we got started. They made me angry. That’s why Southwest is still alive. I’m not going to get beaten, and I’m not going to let anyone take advantage. They were too stupid to realize the psychology of the situation, so they just kept plowing ahead" Every person and every job is worthy just as much as any other person and any other job Herb Kelleher's Management Style The 7 S Model Factors of Cohesion Outside Critics Still manages to keep employee productivity high $17 billion in revenue United, Delta, and AMR have larger revenues Share price: approx. $9.00 Grown and stayed stable 'Nuts about Southwest' Relational Coordination Effective Communication of Ideas Departments granted power for veto when hiring It was officially passed to encourage the use of the Dallas-Fort Worth Airport, but underhandedly targeted at stopping Southwest from expanding Low Pay "The Southwest Way" Longer hours than competition Profit Commuter flight for the masses Primary Goals Employees on Kelleher Relationship Lens: Be fair and consider those with no power Shared attitudes and values Similarities with Jack Welch Cut costs Creativity and innovation Professional informality culture Passion So... What's your opinion of Herb Kelleher? Superordinate goals Fair Pricing and no hidden fees "You are now free to move about the country" "An Act to amend the Federal Aviation Act of 1958, to encourage, develop, and attain an air transportation system which relies on competitive market forces to determine the quality, variety, and price of air services, and for other purposes" “Top-down” pyramid Entrepreneurial structure Task tribe Are there more? Southwest Airlines Early Life Fought through lawsuits and judgment on deregulation on Airline Industry “CEO of the Year” 1999 and 2001 “CEO of the Century” by Texas Monthly President and CEO 1981-2001 Executive Chair 1978-2008 Herb Kelleher College Years Concept Questions “Offering low fares provides the largest return to our shareholders” Proposition: Open an airline between Houston, San Antonio, and Dallas Greatest output for the smallest effort 3 Steps 1970s Controversy Fair to Employees 1988 Kelleher announces plan to double company size by 1994 “A happy employee is a productive employee” Herb Kelleher's Reflection Productivity Style Southwest eventually wins the court case How does Kelleher compare to Jack Welch? What are his similarities and differences? Consider the 7 S model as well as managerial style, personality, goals, etc. Kelleher's successor: Gary Kelly 15 minute turn arounds Questions? The controversy led to a new law which prohibited any air carrier from offering direct service from Lovefield to any place beyond Texas, Oklahoma, Louisiana, Arkansas, and New Mexico The only airline that managed to turn a profit

Southwest Airlines

Transcript: Investing in existing airports Global Market Fly Guys Airline Consulting Firm Gate Space Low Costs Quick Turnarounds Employee Empowerment Standardized aircrafts No travel agents Current Size Middle class little over 50% Growth Potential Middle class on the rise Goal Capture 25-30% of the middle class population in Mexico Expansion in Latin America Target Market Southwest Airlines Relatively cheaper because they won't have to build brand new. New terminal can cost $100 million or more. Profit Potential New Flight Booking System 575 Boeing 737 air crafts 46,000 employees 3,400 flights a day Mexico Booking system with international ticketing capabilities Experience with international flights Spanish website Five new International gates All differs depending on who is being trained. Southwest Airlines University for People (U4P) training for one week usually costs range from $1,000-$10,000 Outsource maintenance Canada & El Salvador Sabre GDS promote airline bookings expand global distribution Wholly-owned Subsidiary of AirTran Mexico, Carribbean, Hawaii, & Northern Countries of South America Mexico Flights to Mexico City & Cancun Southwest only uses Boeing 737 airplanes. Average cost for a new Boeing is $43 million. Bulk orders are 20%-45% cheaper. Adding certain cultures or accommodations for Mexico will add to the costs. AirTran Local Differentiation Interior Design Food Options In Flight Movies Domestic Airline Low air-fares Largest Airline in the U.S. Transnational Training Personnel The Big Idea Whole hub or 4-5 gates Gate rental - $750,000-$2.5 million Vary by square feet also $90-150 LAX, MIAMI, ATL - expensive Joney Mai, Lisa Michalka, Dylan Baird, Mitesh Patel, Qixia Mei, Darshan Patel Growing Middle Class More money to spend More competitive, global and urban Growing Cities: Medium Cities Mérida, San Luis Potosí, Querétaro and Hermosillo Monterrey one of Mexico's most Americanized cities Relatively expensive Amadeus IT Group No specific price but it can range from $50,000-$200,000. Also depends on the terms and fees for each booking. New Airplanes

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