airasia inspiring innovation

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Page 1: AirAsia Inspiring Innovation

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Page 2: AirAsia Inspiring Innovation

Definition of Innovation

Page 2 Source: Innovasian Catalyst Camp- Alpha Catalyst Consulting

Page 3: AirAsia Inspiring Innovation

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Page 4: AirAsia Inspiring Innovation

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3.74.4 4.7

5.0

6.1

6.9 7.07.6

8.28.8

6.77.3

8.1 8.38.7

9.2

2.12.6 2.9 2.8

4.2

5.0 4.75.4 5.2

7.0

4.44.9

5.4 5.6 5.66.1

AirA

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CASK

CASK (Ex-Fuel)

Disciplined Cost Structure

CASK (CY10) (US Cents) 3.7

4.4 4.75.0

6.1

6.9 7.07.6

8.28.8

6.77.3

8.1 8.38.7

9.2

2.12.6 2.9 2.8

4.2

5.0 4.75.4 5.2

7.0

4.44.9

5.4 5.6 5.66.1

Air

Asia

Air

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bia

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wa

ys

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cific

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CASK

CASK (Ex-Fuel)

Largest LCC in Asia

Passengers carried in millions (CY10)

Low cost leadership

Pioneer of the associate model

Leading ASEAN brand

Near to 10th year of operation

100 million passengers flown

within a period of 8.5 years

#1 LCC in Asia by no of pax carried

#4 LCC in the World by no of pax

carried

Market Share

5

MAA

Domestic 53%

International 37%

TAA

Domestic 43%

International 46%

IAA

Domestic 6%

International 43%

Leading Regional LCC

Page 6: AirAsia Inspiring Innovation

• Over 12 hubs across Malaysia, Thailand and

Indonesia

• Over 130 routes (145 including AAX)

• Over 61 destinations (75 including AAX)

• Over 40 unique routes

• No. of one way flights weekly: 2,139 (including

AAX)

# of hubs 12 3 11 4

31 60 50 # of destination

# of aircraft

Kuala Lumpur

Penang

Kota Kinabalu

Kuching

Bangkok

Chiang Mai

Phuket

Jakarta

Bali

Medan

Bandung

Surabaya

6

2 76 33

61

92

Connecting ASEAN

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3-Step Strategy: Achieving Business Excellence through Continuous Improvement

Quality Management System (QMS)

Continual Improvement (CI) Business Excellence (BE)

Establish company-wide QMS & AirAsia’s Best Practices

Establish 2 tier CI program:-

-1st tier – Lean Six Sigma (Breakthrough CI Projects)

- 2nd tier – Quality Control Circle (QCC)

Participate & win International & local awards/recognitions i.e. Prime Minister’s Quality Award, Best Cabin Crew, World’s Best Airline etc.

1st Step: 2nd Step: 3rd Step:

Page 10: AirAsia Inspiring Innovation

Phase 1: Lay foundation and lead change

Develop program framework and kick

start continuous improvement

program with pilot projects

Phase 3: Sustain

Sustain and spread Continuous

Improvement culture

Phase 2: Create momentum and regionalise

2011 2010 2013

Establish Continuous Improvement

Program

2nd Step - Continuous Improvement: Program Roadmap

Page 11: AirAsia Inspiring Innovation

- Identify team member

- Feed data/resource

- Execute sub-projects in the department

Commit to one or two projects - Identify critical improvement areas - Identify project leaders - Provide adequate support and resources to

staff

Complete documentation of their core processes (SOP/manuals)

- Annual project summary by 31/10

- List of candidates for rewards or recognition by

15/11 every year

Enroll the projects into the system and update it

- Monitor and review the projects periodically with the project team

- Respond to project needs

Performance Improvement HODs

Will facilitate each department in establishing their Quality KPIs

Will distribute a comprehensive program guideline (templates, references, methodology, checklists, etc)

Lead the cross-department projects flowing down from Top leadership

Will sit down with each HOD to identify one or two projects in their department before end of November 2010

Will provide training and certification to help departments gain capability to run projects

Will develop rewards and recognition for the Program (Annual CI Board Review, Award ceremony)

Will develop communication platform to share best practices (Quality portal)

Will establish program tracking system for monitoring/easier follow-up

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2

3

4

5

6

7

8

1

2

3

4

5

Page 12: AirAsia Inspiring Innovation

Projects completed 12

Projects in progress 12

Trained Black Belts 26

Trained Green Belts 81

Total savings RM23.4 million

Page 12

CIP Results : the facts and figures

Page 13: AirAsia Inspiring Innovation

Innovation : AA BRAIN Platform – Key features

Post your idea

View popular ideas

Vote ideas you like

View the ideas

See your ideas in action

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We’ve been asked by a lot of people how we’ve grown so quickly,

and the answer is actually really simple. We’ve aligned the entire

organisation around one mission: to provide the best customer

service possible

Page 18: AirAsia Inspiring Innovation

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On Customer Service: Our Employees are trained to provide outstanding Customer Service. Our aim is to get you to your destination safely and comfortably with a laugh or two along the way

On Travel Experience: Here at Southwest, we like to do things a bit differently than "the other guys". We pride ourselves on making it both simple and fun to fly wherever it is that life takes you, with low fares to 70+ destinations nationwide.

On Why People Should Fly Southwest: Fly Southwest Airlines because you want to be treated like a person

Page 20: AirAsia Inspiring Innovation

Obstacles to Innovation

Page 20

Top obstacles for innovation to happen in your company

Lack of funding to develop and commercialize ideas

Lack of a clear direction to innovate

Lack of understanding of the customer’s needs

Lack of great ideas

Lack of innovative talents

Risk averse leaders/ managers

Source: Leading Innovasian- Embedding innovation culture in Malaysian Organisations : Azim Pawanchik, Dr Suraya Sulaiman

Lack of readiness by customers to accept new ideas and solutions

Inadequate reward / incentive to innovate

Poor execution / project management

Lack of trust and empowerment from leaders

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Inspired people in AirAsia

Kaew

Ramp Boy

IT Supervisor

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Inspired people in AirAsia

Cabin Crew

Cadet Pilot

Miss Thailand / Universe 2005

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