Tony, Alex, Louisa, Bingjing

company Description

  • Richmond based, founded in British Columbia in 19821   

company Description

  • Richmond based, founded in British Columbia in 19821 
  • Largest seaplane company in the world with more than 50 aircrafts and more than 200 employees2  

company Description

  • Richmond based, founded in British Columbia in 1982[1] 
  • Largest seaplane company in the world with more than 50 aircrafts and more than 200 employees[2] 
  • Acquired its main competitor West Coast Air in 2010[3]
  • Consists of Harbour Air Seplanes, Westcoast Air, Whistler Air and Tantalus Air.  

FOUR

types of aircrafts[4]

THREE

seaplanes

company Description

LANDBASED

aircraft

company Description

flight

services

company Description

flight

services

scenic adventure

tours

company Description

flight

services

scenic adventure

private charters

tours

company Description

flight

services

scenic adventure

private charters

parcel delivery

services

tours

company Description

souvenirs & merchandise

flight

services

scenic adventure

private charters

parcel delivery

services

products

tours

company Description

Finance

Functional Departments[8] :

Human Resources

Freight Centers in Nanaimo, Victoria and Vancouver

Aircraft Maintenance

Purchasing/Parts

Sales & Marketing

Customer Service

Safety

Reservations

ORgAnization overview[21],[22]

STRATEGIC gOAL

High-quality service

Comfort

Safety

A STRONG COMMITMENT TO PROVIDING[9] 

Mission statement[9]:

Maximize revenue by increasing customer satisfaction while minimizing cost

STRATEGIC gOAL

Continuous growth of business from stable and increasing customer satisfaction.

OBJECTIVE:

BUSSINESS  INTELLIGENCE

Key performance indicators

Financial Performance:

Track customer satisfaction, feedback, and market share goals

Measure the performance of internal process to meet customers’ needs

Measure the ability to change, improve and innovate to drive future success

Focus on revenues, profits, expenses and relevant financial figures

Customer:

Process Efficiency:

Organizational Capacity:

Financial Performance:

Customer:

Process Efficiency:

Org. Capacity:

  • Avg fuel cost by leg
  • Avg crew cost by leg
  • Avg pilot cost by leg

Sales/Marketing

CustomeR service

Aircraft/flights

  • % over/under carbon neutral by flight leg
  • Number of safety incidents
  • TAT by terminal / flight leg
  • Flight time by leg
  • Flight punctuality rate
  • No. late incidents by cause
  • Aircraft utilization rate
  • Pilot and crew turnover rate
  • Pilot and crew employee satisfaction ratings
  • Flight time logged per pilot
  • Opportunity cost from cancelled reservations
  • Opportunity cost from lost customers
  • % flights with miscounted passengers at time of departure
  • Customer Service Agent utilization rate
  • CSA turnover rate
  • CSA employee satisfaction ratings
  • Revenue through corporate accounts per month
  • Revenue per available seat
  • Revenue per passenger per miles
  • Ad campaign conversion rates
  • Average seat fill rate by leg
  • Average seat fill rate by tour offered
  • Sales staff turnover rate
  • Sales staff employee satisfaction ratings
  • % customers in rewards programs
  • Relative market share
  • Net promoter score
  • Social media followers/ratings
  • Number of customer complaints
  • Customer retention rate

Financial Performance:

Customer:

Process Efficiency:

Org. Capacity:

Sales/Marketing

CustomeR service

Aircraft/flights

  • Number of safety incidents
  • Operating profit margin
  • Revenue growth
  • Average seat fill rate
  • Customer retention rate
  • Employee turnover rate

data sources

  • Primarily internal data sources
  • May consider extracting more customer feedback from social media sources 

EXternal data source

Remarkably high customer satisfaction level  

11,500 followers

1368 followers

881 followers

8871 Likes

144 subscribers

4.5/5 Rating

EXternal data source

The format of much of this data will be unstructured, free-text - difficult to collect and analyze.

RECOMMEND:

Monitor key social media metrics (such as ratings);

Web-scraping techniques to routinely survey;

Manually conduct investigations.

Internal data source

Sales       Marketing

CustomeR service

Aircraft         flights

HUman   Resources

finance

  • Flight logs
  • Maintenance reports
  • Aircraft specifications from manufacturer
  • Safety incident reports
  • Flights/tours/charters reservation database
  • Customer profiles database
  • Call centers’ customer call logs (may not exist)
  • Customer feedback Surveys
  • Customer reviews on social website
  • Feedback from partner agents/corporation
  • Urchin Traffic Monitors (UTMs)
  • Employee profile and payroll database
  • Employee survey data
  • Accounting systems
  • Vendor invoices

FORMATS should all be numeric (integer, double, Boolean) and thus easy to perform operations with.

Internal data source

Flight information (flight logs, safety reports, and maintenance reports) is NOT AUTOMATICALLY captured and stored in convenient tabular structures.

Current Business Intelligence strategy

Some of the KPIs require access to inter-departmental data sources

Two KEY Observations

Many of these data sources will not be required in their entirety in order to calculate the KPIs we have listed, or for any other BI purposes for that matter

Current Bi aRCHITECTURE tECHNOLOGIES

  • Created by the installation of operational systems designed to perform operational tasks.
  • Supports KPIs which are LOB-specific and do not require data sources from other parts of the organization.

Current BI organization structure

A LOB Manager asks an analyst for a report

The Analyst reframes the original request

A Database Administrator (DBA) is asked to develop a query

DBA: naturally limited understanding of the business;

Analyst: not well versed in BI practices but fulfills this role only as part of their day-to-day activities.

 

Inefficient, inflexible, and limited in the benefits it provides.

CANNOT easily extract & monitor KPIs which require data elements from different departments;

IMPLICATIONs

MUST store & maintain all historical information, rather than selecting and storing specific historical data.

Access to BI insights more difficult, or else less valuable

Costly from a storage, management, and performance perspective

Costs 

An OVERLAY of existing operational system:

License fee

  • Reservation system
  • Accounting system

MAINTENANCE fee

  • HR system
  • Aircraft management system

Costs 

Only DISTINCT cost is from labour cost of Analyst role

50%-100%

of FTE salary

35K-70K

/year[14]

~

~

ROI 

ZERO dollar capital investment

Managers may have LITTLE incentive dollar to invest in a BI program

Recommended BI  STrategy

Future Bi aRCHITECTURE tECHNOLOGIES

Under the current basic strategy, the individual requirements of a LOB are not expected to be sufficiently SPECIFIC or DIFFERENTIATED.

Decentralized model

Centralized model

Future Bi aRCHITECTURE tECHNOLOGIES

Under the current basic strategy, the individual requirements of a LOB are not expected to be sufficiently SPECIFIC or DIFFERENTIATED.

Decentralized model

Centralized model

Future Bi aRCHITECTURE tECHNOLOGIES

Future ORganization Structure

Data will be EASILY ACCESSIBLE

No longer require frequent involvement from a DBA

An Analyst with more advanced analytical toolset.

Database         Administrator

Analyst

Future ORganization Structure

Decisions leveraging BI shift from being strategic-only, to near real-time operational decisions.

TURNAROUND TIME for delivered insight DECREASES

Future ORganization Structure

Ad hoc BI analysis and reporting become more ACCESSIBLE

The primary consumers of these insights might shift from being a right reserved for Managers, to a service that all levels of the organizations use.

Costs & CHALLENGES

Analyst

70K

/year[17]

~ $

Oracle Business Intelligence Standard Edition[19]

6K

Oracle Database Standard Edition

3.5K

/year[18]

IBM Basic Server

$

$

$

1,485[20]

  • No government or regulatory obstacles
  • Harbour Air is open to change
  • Employee training
  • Backlash from customers

ROI

If costs are well-contained, the payback period will be relatively short.

Conservative estimate of total revenue is approximately $12.3 Million per year - and a 5% increase in sales would lead to $615,000 increase in revenue.

Assume 50 Aircrafts, 6 flights, $150 avg ticket price, 70% seat fill rate:

Dashboard Design

Tony, Alex, Louisa, Bingjing

QUESTIONS?

[1] Harbour Air Seaplanes. (n.d.). Corporate Information. Retrieved April 11, 2015, from http://www.harbourair.com/about/corporate-information/

[2] Linkedin (n.d.). Harbour Air Seaplanes Overview. Retrieved April 11, 2015, from https://www.linkedin.com/company/harbour-air-seaplanes

[3] VANCOUVER SUN. (2010, March 30). Harbour Air set to acquire West Coast Air. Retrieved April 11, 2015, from http://www.canada.com/story.html?id=356262bc-7e29-4fb4-a57e-0077f4b3b666

[4] Harbour Air Seaplanes. (n.d.). Aircraft Fleet. Retrieved April 12, 2015, from http://www.harbourair.com/the-experience/fleet/

[5] Harbour Air Seaplanes. (2013, September 19). Harbour Air introduces Tantalus Air. Retrieved April 12, 2015, from https://www.harbourair.com/media/press-release/2013/09/harbour-air-introduces-tantalus-air/

[6] Harbour Air Seaplanes. (n.d.). Carbon Neutral. Retrieved April 12, 2015, from http://www.harbourair.com/about/carbon-neutral/

[7] Harbour Air Seaplanes. (n.d.). Loyalty Programs. Retrieved April 12, 2015, from http://www.harbourair.com/book-a-flight/loyalty-programs/

[8] Harbour Air Seaplanes. (n.d.). Contact Us. Retrieved April 12, 2015, from http://www.harbourair.com/contact-us//

[9] Harbour Air Seaplanes. (n.d.). Corporate Information. Retrieved April 11, 2015, from http://www.harbourair.com/about/corporate-information/

[10] SMS Pro. (n.d.). List of Airline Key Performance Indicators (KPIs). Retrieved April 12, 2015, from http://asms-pro.com/Modules/SafetyAssurance/ListofAirlineKeyPerformanceIndicators.aspx

British Airways.(n.d.). Our Key Performance Indicators.  Retrieved April 12, 2015, from https://www.britishairways.com/cms/global/microsites/ba_reports0809/our_business/kpi3.htm

[11] Butter, I. (n.d.). AIRCRAFT PROFILE. Retrieved April 12, 2015, from http://www.dhc3otter.com/profile.htm

[12] HotHotSoftware. (n.d.). MS Word Extract Data and Text from Multiple Word Documents. Retrieved April 12, 2015, from http://www.hothotsoftware.com/ms_word_data_extraction_software/

[13] Harbour Air Seaplanes. (n.d.). Notice to All Travel Agents. Retrieved April 13, 2015, from http://www.harbourair.com/media/26331/notice_to_travel_agents0108.pdf

[14] Airline Tariff Publishing Company. (2011, March 9). ATPCO Baggage Web Service and Graphical User Interface. Retrieved April 13, 2015, from http://www.atpco.net/atpco/products/baggage/pdf/BWS_GUI_presentation.pdf

[15] Glassdoor. (n.d.). Salary: Data Analyst. Glassdoor. Retrieved April 13, 2015, from http://www.glassdoor.com/Salaries/data-analyst-salary-SRCH_KO0,12.htm

[16] Harbour Air Seaplanes. (n.d.). Best Managed Company 2012. Retrieved April 15, 2015, from https://www.harbourair.com/media/press-release/2013/02/26/best-managed-company-2012/

[17]Kleywegt, A. (2008, April 2). Demand and Revenue Management. Retrieved April 12, 2015, from http://www2.isye.gatech.edu/~anton/ISyE4803/RMDynamicPricingDemandForecasting.pps

[18] Glassdoor. (n.d.). Salary: Data Analyst. Glassdoor. Retrieved April 13, 2015, from http://www.glassdoor.com/Salaries/data-analyst-salary-SRCH_KO0,12.htm

[19] DEC Trader. (n.d.). Database Standard Edition - Subscription license ( 1 year ) - 1 processor. Retrieved April 12, 2015, from http://www.dectrader.com/Oracle-A90684-New-Database-Standard-Edition-Subscription-license-1-year-1-processor.html?productid=246375

[20] Donohue, M. (n.d.). Introduction to Oracle Business Intelligence Standard Edition One. Retrieved April 13, 2015, from http://www.oracle.com/technetwork/middleware/bi-foundation/bi-standard-edition-one-overview-131081.pdf

[21] PC Magazine. (n.d.). IBM eServer xSeries 306. Retrieved April 13, 2015, from http://www.pcmag.com/article2/0,2817,1601320,00.asp

[22] Harbour Air Seaplanes. (n.d.). Flight Information. Retrieved April 13, 2015, from http://www.harbourair.com/book-a-flight/

[23] Harbour Air Seaplanes. (n.d.). Seaplane Tours. Retrieved April 9, 2015, from http://www.harbourair.com/tours/vancouver/

Harbour Air

By tony g

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