Air Asia: Super App Project
AirAsia_New_Logo

Company Overview

Project Overview

Project Team & People

Selection & Portfolio

Organizational Context

TOWS Matrix

Scope Management

Project Scheduling

Budgeting & Cost Estimation

💪🏻 Strengths:

💰 1. Low Cost Operation


➡ Air Asia is a low-cost airline and they have taken all possible measures to cut down on costs. One strategy that has been followed by the airline is to transfer the onus of service to the customer making most of the work as self-service. (Hitesh Bhasin, 2019)

💡 2. Innovation on services


➡ Air Asia has been using cutting-edge technologies for innovation. Some of their service innovation include online ticket reservation printing and even e-check-in. The airline has also been streamlining costs by replacing human effort with technology through online services. (Hitesh Bhasin, 2019)

🔒 3. Strong brand and reputation


➡ AirAsia Group is among the top airline brands that are well positioned to survive the Covid-19 pandemic, judging from its cash position, brand strength and brand value, says independent brand valuation consultancy Brand Finance. AirAsia was the only low costs carrier from ASEAN featured on the list, registering a 15.5% year-on-year growth in brand value which the highest in Asia and the second highest amongst all airlines globally. In the 10 Strongest Brands ranking of the report, AirAsia was rated as having the highest year-on-year increase and one of only four airline brands in the world to have an AAA+ rating. This was based on marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation.

Weaknesses :

💰 1. Low profits


➡ In order to keep their positioning of a low-cost carrier Air Asia keeps their pricing as low as possible and thus rely completely on volumes for their profits which in turn has resulted in lowering the profits as well as reduced continuous revenue inflows. (Hitesh Bhasin, 2019)

2. Too dependent on outsourcing


➡ Air Asia does not have its own MRO facility which is called Maintenance, Repair and overhaul. MRO plays an important role in sustaining the airline fleets. It can ensure the aircraft safety and suitable to flight. Air Asia is depending more to outsource service and maintenance works are not conducted in house.

3. Limited customer services


➡ Due to their low costs business model they implement, AirAsia cannot provide additional service to the customers as they require. It is limited where AirAsia does not include frill service such as complimentary drinks, snacks, pillow and entertainment. Passengers may charge an additional fee for inflight services when meet the needs of it.

Opportunities :

🗺 1. Growing aviation market in Thailand


➡ Growing domestic demand in Thailand has pushed AirAsia Thailand to a strong position within the AirAsia Group’s operations. the airline operated 96% of its pre-crisis domestic capacity. AirAsia Thailand carried over 1.8 million passengers with an impressive load factor of 65%. Only the Malaysian subsidiary reported a better load factor, marginally, however, of 66%. Just behind AirAsia Thailand’s load factor was the Indian subsidiary at 62%. (Jay Singh, 2020)

🤝 2. Provide New Destination


➡ Currently they are operating from three countries Malaysia, Thailand, Indonesia and covering several destinations in China, India, Sri-lanka etc. but still most parts of these countries are under served.

🆙3. Rise in the middles class population


➡ The population of Asian middle class will be reaching almost 700 million by 2010. This creates a larger market and a huge opportunity for all low costs airlines in this region including AirAsia.

Threats :

💸 1. Scarcity and rising raw material and energy cost


➡ It has been reported there was a 30% drop in net profit for the first quarter of 2017, mainly due to fuel prices. AirAsia is a low-cost airline, so they have to manage their finance well to make profit while providing their service. (Hitesh Bhasin, 2019)

🚧 2. Covid-19 Pandemic


➡ AirAsia Bhd and AirAsia X Bhd have confirmed the retrenchment of 10% of their 24,000 employees. AirAsia might be planning a new round of layoffs involving hundreds of its personnel for the continued survival in an industry severely affected by the COVID-19 crisis. (Bernama, 2020)

🏁 3. Many direct and indirect competitor


➡ AirAsia’s profit margin is about 30% and this has already attracted many competitors. Most of the full services airlines have or planning to create a low costs subsidiary to compete directly with AirAsia. For example, Singapore Airlines has created a low costs carrier Tiger Airways. (Kulo, 2008)

S3 - O2

O2 : Provide new destination

S3 : Strong brand and reputation

➡ AirAsia has strong presence in Asian region. Currently they are operating from three countries Malaysia, Thailand, Indonesia and covering several destinations in China, India, Sri-lanka etc. but still most parts of these countries are under served. So AirAsia can add more destinations.

S1 - T3

T3 : Many direct and indirect competitor

S2 : Low Cost Operation

➡ Nowadays, AirAsia Berhad is a leader in the world’s low cost carrier in airline industry but it is still a growing company. Many of the full service airlines are planning to create a low cost operation to compete directly to AirAsia Berhad. For example, most Malaysian knew that Firefly is a subsidiary of Malaysia Airline which has the ability to compete with AirAsia for their benefits as these two airlines also considered as low cost airlines.

W3 - O3

S1: Rise in the middles class population

W3: Limited customer resources

➡ AirAsia can rise in the middle class population to create a large market and huge opportunity in Asia if AirAsia provide the enough customer service as customer require such as provide free drinks, pillow and so on

W1 - T2

T2: Covid-19 Pandemic

W1: Low profits

➡ The financial report of Air Asia record that the quarterly net loss of RM803.55million in the first quarter ended March 31, 2020, and sank further into the red with a net loss of RM992.89million in its second quarter ended June 30 when covid-19 pandemic.

Save Our Shop (SOS)

AirAsia Foundation Donation Drive

Super App Project

✏ Help local businesses by featuring them on AirAsia's e-commerce OURSHOP platform in April. (Hemananthani Sivanandam, 2020)


✏ Enable merchants to sign up at zero commission and zero listing fee to market their products on OURSHOP for the whole of April. (Emir, Zainul, 2020)


✏ The products that qualify include groceries, daily essentials, food and beverage, beauty products and household items.

🖊 To help vulnerable communities impacted by the pandemic. (Ahirul Ahirudin, 2020)


🖊 Donations will be channeled to social enterprises and charities such as Perak State Parks, SEED Foundation and Beyond Borders Malaysia that provide food and medical aid to Orang Asli families, people without permanent shelter and refugees. (Ahirul Ahirudin, 2020)



🖊 Be redirecting its commercial and transportation channels to provide a lifeline for small businesses.

🔥 Provides a simpler, faster and more convenient user experience with over 15 types of products and services under three main pillars, which are travel, e-commerce and fintech.


🔥 Enabling everyone to fly, to stay, to shop, to eat, all at the convenience of one super app.


🔥 A testimony of AirAsia's continuous innovation culture and drive to deliver value to customers.


🔥 Launched the uniquely innovative AirAsia Unlimited Pass, SNAP which best-price guaranteed flight and hotel bundle.

Air Asia Company

🔸The world’s best low-cost airline services the most extensive network with over 90 destinations, carried over 250 million guests.


🔸The company is engaged in providing passenger flights, chartered flights, short-haul, point-to-point domestic and international air carrier services to its clients in Malaysia, Thailand, Indonesia, Philippines and India.


🔸They operates a fleet of 98 Airbus A320 family aircraft, with an additional 367 on order and numerous subsidiary airlines, including long-haul AirAsiaX, neighboring
Indonesia AirAsia and nearby Thai AirAsia. (Mishra, 2019)


🔸Slogan : Now Everyone Can Fly’ ✈

Vision

⚽ To be the leading travel and lifestyle platform company in Asia providing inclusive services on travel and lifestyle products.

Mission

🔥To become a globally recognise Asean bran focused on delivering sustainable value to the economy, society and environment.

🔥To care for all internal and external stakeholders from all stars, guests, business partners and investors to communities and governments.

🔥To provide the highest quality services in travel, financial and lifestyles products, embracing technology to reduce cost, enhance guest experience and seek new growth opportunities.

Award & Accolades

There are total 26 award and accolades in the year of 2019
These are the 3 top awards:


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IDC Digital Transformation Awards 2019 (IDC,2019)
• Digital Transformer of the Year (Malaysia)
• Asia Pacific Digital Transformer of the Year
• DX Leader


The Edge Billion Ringgit Club 2019
•Highest Growth in Profit After Tax over 3 Years in the Consumer Products & Services Category


World Travel Awards Asia and Oceania 2019
• Asia’s Leading Low-Cost Airline • Asia’s Leading Low-Cost Airline Cabin Crew World Travel Awards (WTA) Grand Final
• World’s Leading Low-Cost Airline Cabin Crew
• World’s Leading Low-Cost Airline


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⚽To be the largest low-cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares.

🔥To attain the lowest cost so that everyone can fly.

Checklist Model
❗ Cost -- Medium
❗ Profit Potential -- High
❗ Development risk -- Medium
❗ Time to Market -- High

Checklist Model
❗ Cost -- Medium
❗ Profit Potential -- Low
❗ Development risk -- Medium
❗ Time To Market -- High

Checklist Model
❗ Cost -- Medium
❗ Profiit Potential -- Low
❗ Development risk -- Low
❗ Time To Market -- High

Let's hailed the WINNER with clapping 🎊


SUPER APP PROJECT

  1. cost (Medium)


    -- Advertising fees


  2. Profit Potential (High)


    -- earn fees and commissions from transactions, monetization opportunities as well as advertising opportunities.


  3. development risk (Medium)


    -- Experienced team


  4. time to market (High)


    -- Existing customer-based


    -- Good in IT and high technology skills

Start

Objective: Introduce a brand new identity online as Asean's super app, transforming from a digital airline into a comprehensive lifestyle platform providing a simpler, faster and more convenient user experience with over 15 types of products and services under 3 main pillars: travel, e-commerce and fintech

Project Duration

Task

🚩Transformation from digital airline to comprehensive lifestyle platform.


🚩AirAsia develop a “super app” project to rival the likes of Grab and Gojek, as the budget airliner seeks to cushion the impact of the Covid-19 pandemic on the aviation industry.


🚩Enabling everyone to fly, to stay, to shop, to eat, all at the convenience of one super app.


🚩The app is a testimony to AirAsia’s continuous innovation culture and its drive to deliver value to customers.


🚩 In this Covid-19 crisis, Air Asia understand customers' need and they designed a delivery platform to satisfied customer wants and also overcome their current plight.

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What they provide in this platform?

😃 They provide the "all in one app" that simpler, faster and more convenient user experience, offering products and services of food delivery,shopping,payments,rewards,entertainment and travel.
(Augustin, 2020)


😃 Three main pillars: travel, e-commerce and fintech. (Paul,2020)


😃 The category: Flight tickets, hotels, SNAP, home delivery for duty-free, fresh food/groceries, and meals.


😃 They innovate Air Asia Unlimited Pass which is a buy-now-fly-later model for customers to purchase flight tickets earlier at a cheaper price.


😃12-18 Oc t2020, offering store-wide discounts of up to 90% across all product.


😃16 - 22 Nov 2020 offering up to 50% and above promotion for all product and services.

Plan project features: Flight bookings, hotel bookings, SNAP, home delivery for duty-free, fresh food/groceries, car rental and meals.

Acquire system, engine, platform

Coding and software development

Mock ups and test run

Logistics and supply chain management - distribution networks and deliveries

Modification and Improvement

Finetune airasia.com platform, unify user experience, and simplify payment to a one-click checkout

Develop strategies

Promotion :
➡ Super Sale
➡ 12.12 Daily Sale

Soft launch

User feedback and continuous improvements

Official project launch period :
8 OCT 2020

Stand-by support

Project end

A successful project life-cycle

1️⃣ Establish the team.
2️⃣ Facilitate Effective Communication.
3️⃣ Encourage Collaboration.
4️⃣ Accept and Manage Problems.
5️⃣ Recognition and Reward.

Super App project

Mission

Air Asia designed 'super app' to grapples with the coronavirus-related travel slowdown and overcome the costs.


A digital transformation with bringing the convenience of everyone to fly, stay, shop, eat by using Super App.
.

Partnership with

Agoda-SNAP
Turkish Airlines
Kiwi.com

Time

Start Date: 8Oct2020

Customer Accepctance

Super App available for customer from Asean and Thailand

Currently has a customer base of 75million users (40million downloaded), rich database of over 60 million customers.

Super App Team
(Essential Expert)

(I) Project manager 👤

Payment

BigPay
Big Point
Online-banking

(II) Information Technology 🖥
& Marketing

1.Initiating (Developing a project charter & Identifying stakeholder).
2.Planning (Management on Scope, Time, Costs, Quality, Risk, Communications, Human Resource, Procurement)
3.Monitoring and controlling
4.Closing

(III) Logistics Manager🚛

  1. Ensures that bulk orders from your manufacturer are safely transported to your warehouses.


  2. Quality control of transportation.



3 .Monitoring delivery fleet or managing relationships with third party delivery services.


  1. Assure the goods from manufacturers and the customers receive their shipments in a timely fashion.
  1. Helpful to make the public aware of the project, provide relevant information in order to build trust and make the public accept the project.
  2. help AirAsia to promote project management through good examples
  3. Customer Services

(V) Reasearch and Development 🧬

  1. Develop new idea to overcome the Covid-19 crisis.
    2.Supports the enhancement of existing products or processes.
  2. Ensure the process of develop Super App are in the right track.

Project Cost

  1. Labour (management team, app developer, IT experts)

Direct, recurring, fixed, normal

  1. Equipment & facilities (software, programs, logistics)

Direct, recurring, fixed, normal

  1. Test-run and soft launch

Direct, non-recurring, variable, expedited

  1. Contingency

Indirect, non-recurring, variable, expedited

Ballpark estimations

Goal: Airasia Digital’s ventures like Teleport, BigPay, and airasia.com super app to break even in 2021

Super App (Platform) 📲
app

delivery1

Comment & Feedback
⭐ ⭐ ⭐

Accepts Order ⬆

Assigns Order ⬇

Delivery people (Riders) 🛵

Products
( Foods, Duty Free, Fresh, Shop, Flight, Hotels)

icon1

Assigns order & pay ➡

⬅Promotes menu options

icon3

Consumers 👤

customer

⬅Providers array of restaurant/shop
and meals/products options

Browses menu options,
orders & pays➡

Picks up the products/meals

.

.

Delivery products/meals

Comments on delivery service

↗↗↗↗

icon4

icon2

icon

icon1

App development Cost: Estimates the cost of developing "super" app to be RM1mil (inclusive of e-commerce platform, on-demand platform, and marketplace platform)

Risk Management

Resouces Management

Evaluation & Control

Statement of Work (SOW)

🔍 Introduction :
➡ Super app offer a variety of options, including digital payment services, delivery services, and an e-commerce platform.
➡ This is an updated AirAsia app which houses 15 different products and services under one roof. Some of the notable services include food delivery, E-Commerce store, fresh goods, insurance, health care and leisure activities. (Alexander Wong, 2020)

Timeline and milestones :
➡ Accessible through AirAsia.com and Super app on Oct 8
➡ Super app through mobile application and website to provide services that will be available in Thailand and Asean on October 2020.
➡ Super Sale is happening on Super app between 12 to 18th October 2020

🔒Security :
➡ BigPay will abide by all the conditions, laws and regulations provided by the Ministry in implementing and running the financial services.
➡ Earn Big Points pay using Big Points for their purchases made on airasia.com.( Elena Dimama, 2020)
➡ Unify the user experience and simplify the payment to a one-click checkout

Work Authorization :
➡ Community Credit Licence. BigPay, the fintech arm of airasia Digital, is set to offer more financial services including credit to the B40 and M40 income groups, especially the unbanked and under-banked segments.
➡ Medical service provided by its medical partners from Lifecare Diagnostic Medical Centre and Sunway Medical Centre.
➡ Super app are available downloads on Apple App store, Google Play store and Huawei App Gallery.

📁 Scope Reporting :
➡ Costs Status : merchants costs, advertising costs, labour costs, app maintenance costs, platform, features, functionality, set-up costs and licence
➡ Technical Performance Status : face bug on app sometimes, network congestion.

🔚 Project Closeout :
➡ The launch of super app is a testimony of airasia’s continuous innovation culture and drive to deliver value to customers.
➡ Enabling everyone to fly, to stay, to shop, to eat, all at the convenience of one super app during covid-19 pandemic.

Preparing a Project Resource Schedule :

STEP 1: Finalise the project schedule, typically in Gantt chart format


STEP 2: Check on the availability of resources to meet task schedule and where necessary adjust this schedule to comply with resource availabilities.

STEP 3: Develop a resource schedule showing the different resources needed – who(labour), what(equipment), how much or many (material), and over what calendar periods to do the project tasks as scheduled

STEP 4: Resource Leveling
: ✅

STEP 5: Resource Smoothing

Media Marketing & Advertising cost estimates: RM300k

Average estimation cost for whole super app project: RM7mil (inclusive of developing cost and operating cost for Teleport (Logistics), AirAsia.com (E-commerce), BigPay (Fintech)

Project Closeout

Termination by addition

Project Development :
4 Months

Lessons Learned

Project Maintenance :
Continuous

Opportunities for improvement

  1. Wider delivery coverage area
  1. Better user experience optimization

What went well

  1. AirAsia has pivoted from just an airline into a one-stop travel and lifestyle platform through the recently-launched airasia.com super app

Marketing :
➡ social media
➡ advertising

  1. Aiding merchants to join platform and helping SMEs cope through covid (AirAsia food delivery)

Risk Management Process

Step 1: Identification

Step 2: Source

Step 3: Measurement

Step 4: Evaluation

Step 5: Mitigation

Step 6: Monitor

Super App Risk Description

  1. Project objectives and intentions are not clearly defined.

2.Project structure and anticipations definition is incomplete.


3.Project timeline is not clearly emphasized.


4.Delayed in the vendor.


5.Assessing and/or scheduling errors.


6.Insufficient communication, resulting in a lack of certainty and confusion.


7.Unresolved project disagreements not evaluated immediately.


8.Delayed progress in earlier stages jeopardizes capability to finished promptly. For instance, delivery of just in time materials, for conference or launch date.


9.Insufficient customer testing causing a large post-go live snag list.


  1. Ventor declined to approve later-than-expected delays approval, placing pressure on project to 'work at risk'.

11.Stakeholder behavior delays project.

Projected duration: 60 weeks (to achieve breakeven by 2021 and achieve profitability by 2022) Airasia Digital highly optimistic ventures will break even in 2021
By BusinessToday

The constraints in Super App:

Technological constraints: IT skills

Physical constraints: Equipment and Raw materials

Resource Constraints: Time, Cost, Labour Force

1.Data storage and Security

  1. Helps team members properly utilize your digital infrastructure.
  2. Links information online with inventory and logistics teams to efficiently move and monitor merchandise.
  3. Coordinate with the web developer and digital operations manager.
  4. Ensure that marketing strategies such as loyalty programs, discounts and rewards are implemented into Super App and user experience.

(IV) Public Relation 👥