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/