Overview
GROUP
5
Overview
Company and Industry Brief
Innovation and Design
Design Process
Financial and Non-financial Impact
Key Learning
Aviation industry sector:
Saturated
Most unprofitable industry @$31.7 billion loss SIA outperformed the
market and maintained an above-average profit margin
Entry of low cost airlines threaten profitability of SIA
High impact of policies and regulations, e.g. excise taxes, airport taxes and
fuel price
Brief on company
History: Established in 1947 with Malayan Airways Limited (MAL) and
separated in 1972
Size: more than 60 cities in over 30 countries
Position: A premium carrier with high levels of innovation and service
excellence
Competitive advantage: Service differentiation and cost effectiveness
Low
High
Privilege Service
Positioning Map
Low Cost
Carriers:
Ryan Air, Air
Asia,
Malaysian
Airlines
Low
Value for
Money:
Emirates,
Etihad, Jet
Airways
Price
High
Premium
Segment:
Singapore
Airlines, Air
France,
Cathay Pacific
Innovation
Continuous Incremental
High Value in Industry
Innovation
Low cost (Critique-Route
expansion)
Follow Up routine; less visibility to Customer POV
User Driven
Total Innovation
Discontinuous Radical
Unpredictable
Leader
Innovation
High impact on Customers
User Centred
Innovation in everything all
the time
and
Follower
Role of User
User Driven
User Centered
Extensive Customer feedback
Match high customer expectation
Sell a Lifestyle
Role of Design
Strategic Perspective
Create Differentiation Advantage
Leading Perspective
s a primary function used in a structured format
-Engrained in the employees Corporate culture
-Focus on elevating customer exp
n cost effectiveness to sustain in the aviation industry-Curbs Regular Radical Inn
Balanced Approach
Open Innovation
Products: Cabin seats, Design of
Aircraft, Designing lounges
BMW Design Works and JPA
Designs
EXTERNAL
Closed Innovation
Services: Cuisine and cocktails, In
flight entertainment
Internal product and service
development team
INTERNAL
Design Process - 5 phases
Researc
h
Brainst
orm
Prototy
pe
Repeat
Deliver
Go Green
Focus: Customers need to have a positive impact on the environm
Reduce weight of aircraft to save fuel (Sr.VP)
Trend of e-books and e-magazines
Use Kris entertainment technology
Tested electronic magazines Silver Kris, Kris Shop, Kris world with
based private company smart aviation paper ltd.
(Patented file compression technology) - iphones sibblings
Repeated within the company to see if it functions well.
Launched 31st July 2010 Boeing 777-300 ER (2 flights) followed by
flights)
Stages
Post
(cont.)
service
Sign Up
- Awareness of the
service
- Create Account
- Buy tickets
- Check into flight
- Manage their Kris
flyer account
- Choose their
meal using SIA
book the cook
service
- Check flight
schedule
- Check in luggage
and take boarding
pass
-Wait and take a
rest in the lounge
- Boarding
- Find seats
- Interaction in
flight
- Entertainment
in flight
- Consume
Cuisine and
cocktail in flight
- Get off the
plane
- Provide
feedback
- Luggage
collection
- Luggage
loss/othe
r issuesCustomer
complaint
counter
- Official website
- Online
advertising
(e.g.
understanding
touch- your needs)
points (e.g. across the
used by world with the
Singapore girl)
SIA
- E-newsletter
(when customer
sign up with their
email address)
- Social network
(e.g. Facebook/
Twitter/ YouTube)
- Official Website
- Official
agent/Ticketing
agency
-Front office
counters/check in
-Information kiosk
- On ground
attendants
- SIA - Airport staff
- Greet
customers
- Guide to seats
- Security
information
- Services
provided in flight
(e.g. duty-free
product selling,
food offering)
- Farewell
- Online
feedback
- Points for
flight
- Describe
experience
on Social
media
- Customer
service
centers
- Marketing
strategy planning
- Staff training
- Digital branding
- Development of
Backend IT
infrastructure for
the website
- Maintaining the
commissioned
- Partnership with
booking websites
- Staff training
- Communication
between airport
authority and
- Flight
attendants
training
- Pilot training
- Flight crew
training
- Aircraft
maintenance
- Maintain
customer
relationshi
p
User
actions
Backsta
Service use
Service use
Pre-service
Design Thinking
Trial and learn from failures
Corporate culture
User centred
Change the meaning of
Luxury flying
Maximum focus on elevating
customer experience
Design Driven
Design is CRUCIAL and a
STRUCTURED EFFORT
Financial Impact
Financial Impact
Net profit after tax
1200
1011.2
1000
800
600
400
200
390.2
279.8
0
2010.0
-200
2011.0
2012.0
2013.0
-400
-600
-800
-694.1
Awards - Mar 2013 to Mar
2014
MAR
2013
OCT
2013
DEC
2013
AUG
DestinAsian NOV
(Asias leading
2013
2013
luxury travel and lifestyle
magazine Jakarta)
Readers Choice Awards (8th
time running)
Best In-flight Entertainment
Best Frequent Flier
Programme - Krisflyer
MAR
2014
FEB
2014
Timeli
ne
Awards - Mar 2013 to Mar
2014
MAR
2013
OCT
2013
DEC
2013
SmartTravelAsia.Com (Hong
Kong)
Best Cabin Service
AUG
2013
NOV
2013
MAR
2014
FEB
2014
Timeli
ne
Awards - Mar 2013 to Mar
2014
MAR
2013
OCT
2013
AUG
NOV
Travel+ (China)
2013
2013
DEC
2013
2013 China Travel Awards
(Joint winner with Lufthansa)
The Best Inflight Service
MAR
2014
FEB
2014
Timeli
ne
Awards - Mar 2013 to Mar
2014
MAR
2013
- Saveur Culinary Travel
Awards (USA)
Readers Choice Best Inflight
Dining (First & Business
OCT
DEC
Class)
2013 Choice Best2013
Readers
Inflight
Dining (Economy Class)
- Business Traveller (China)
AUGBest Service NOV
on the Ground FEB
2013and in the Sky
2013
2014
MAR
2014
Timeli
ne
Awards - Mar 2013 to Mar
2014
MAR
2013
OCT
2013
DEC
2013
AUG
NOV
FEB
- Premier Traveler
Magazine
2013
2013
2014
(US)
Best Economy Class service in
the World
Best International Airport
Lounges
- Business Traveler USA 2013
Best Overall Inflight Experience
in the World
Airline with Best First Class
MAR
2014
Timeli
ne
Awards - Mar 2013 to Mar
2014
MAR
2013
DestinAsian (Asias leading
luxury travel and lifestyle
magazine Jakarta)
Readers
OCT Choice Awards
DEC(9th
2013
time2013
running)
Best In-flight Entertainment
Best Frequent Flier Programme
AUG Krisflyer
NOV
FEB
2013
2013
2014
MAR
2014
Timeli
ne
Awards - Mar 2013 to Mar
2014
MAR
2013
OCT
2013
DEC
2013
AUG
NOV
AFAR Magazine
(USA)
2013
2013
Experiential Travel Award for
Best Inflight Service
MAR
2014
FEB
2014
Timeli
ne
Ranking of SIA in Recent Five
Years
2008:
1st
2010:
2nd
2009:
2nd
2012:
3rd
2011:
2nd
Timelin
e
Perceptual Map Relating to Service
Quality
High
Singap
ore
Airlines
the
S
Air C ervice, co
rew a
mfor
t
ttent
ion is and
fanta
sti
The quality of food, wine an
attention to detail was excel
In-Flight
Experienc
e
Qatar
Airway
s
Malaysi
a
Airlines
They got Spacious se
Asiana
Airlines
Virgin
Americ
a
Low
Bad
On-Time
Performance
rew
c
py ol
p
a
h
nd
d
o
i
n
l
g a a mil
n
i
l
mi feel
s
e
th e you
d
ma
Good
Key Learning
Ambidexterity - innovation
Focus on both service and product design
Corporate culture on Design outlook and customer experien
Open to external ideas work on building their capabilities
Balance between design and profitability
Exceptional focus on Problem solving and human centred
approach to innovation
Thank you !
