Each of these eight areas is established throughout the process of any project management. In the very first stage of initiation, keeping in mind the phenomenon of electronic ticketing and its history, it will be very important to establish an integration program and a scope dimension in order to make clear the overall implementation process of the new technology across the company. Developing a business case here will therefore serve the purpose of defining the integration strategies and the overall potential scope of the technology within the Efficient Airline business structure.
In this business case, we will also give special attention to how the overall cost-benefit ratio will help the integration process. Another important aspect that we will pay special attention to in the first two stages is the overall risk factor that comes with the implementation of a new program. In this business case, we will thus highlight some of the risks that could potentially appear during the implementation process or after it and will also give recommendations on possible solutions.
Cost benefit model
The main purpose of providing the cost benefit model here in the business case is to give a clear idea of the overall savings and cost cuts that the company could potentially experience with the implementation of the electronic ticketing system. The table below will give an evaluation of the client services department that is mainly responsible for the reservation, ticketing and delivery issues and will analyze the effects on overall costs for Efficient Airlines when analyzing the ticket printing costs, ticket distribution and fulfillment expenses, human resource expenses and others.
AIRLINE COST BENEFIT MODEL
Effect of decrease in Costs
Department of Distribution -- including Reservation, Ticketing & Delivery
Driver
Direct Sales
Agent Sales
Impact
Electronic
Ticketing
Ticket Printing Costs:
1. STD Printing
X
X
Cost Cut
2. STD Wallets
X
X
Cost Cut
3. STD Printers -- depreciation, maintenance &cost of capital
X
X
Cost Cut
Ticket Distribution and Fulfillment Costs:
1. BSP and ARC
X
X
Cost Cut
2. Safe Custody and secure transport
X
X
Cost Cut
3. Envelopes
X
X
Cost Cut
4. Postage & courier
X
X
Cost Cut
5. Real estate: Ticket Offices, Call Centers & Airport Counters
X
X
Cost
Reduced
Radically
Manpower:
1. Managing safe custody and security of X
X
Cost Cut paper tickets/STDs
2. Issuance of STDs
X
X
Cost
Reduced
Radically
3. c. Lost tickets
X
X
Cost Cut
4. d. Exchanges and other post-fulfillment services
X
X
Cost
Reduced
Other Distribution costs:
1. Conversion to Direct, Web-sales
X
X
Asset
Cost
falls and Cash
inflow
Rises
2. Interline Sales Data purchasing from GDS
X
X
Cost Cut
In the table below, we analyze the direct impact that the use of a 100% electronic ticketing system will have on the overall client services patterns as they exist in the company now:
Driver
Impact
Electronic
Ticketing
Greater use of Self-Service Check-in:
a. Check-in Counters/Real Estate at Airports
Cost
Reduced
b. Boarding Card Printers -- depreciation, maintenance and cost of capital
Cost
Reduced
Customer Service:
a. No "Ticket on Departure"
Faster
Client
Processing
b. Standard, electronic record of ticket higher customer
Empowerment
c. Electronic Interline endorsement
Higher
Satisfaction
d. Voluntary and Involuntary Re-routing
On-time flight
Departure
g. Ticketing and Customer Service counters/Real Estate at Airports
Higher overall fleet utilization
Manpower
a. Managing Check-in
Cost
Reduced
b. Managing Ticketing and Customer service counters
Cost
Reduced
Significantly
c. Managing Post-flight reconciliation and ticket coupon sorting
Cost Cut
* Cost cut denotes the elimination of the driver and 100% cost saving
* Cost reduced denotes a major change in the driver's process of function with a cost saving percentage between 60%-80%
* cost reduced significantly denotes that major changes have occurred but major functionalities of the original process are still retained as support for the new structure and the overall cost saving percentages range between 30%-60%.
Project planning tools and techniques
The project planning tools and techniques which were necessary for the appropriate implementation of the e-ticketing integration in the Efficient Airline business structure; the first thing that was absolutely necessary was building a strong team. As discussed...
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