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A process to help airlines choose loyalty application IT-systems
Sivagnanam, Sankar (2016)
Sivagnanam, Sankar
Metropolia Ammattikorkeakoulu
2016
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2016120118649
https://urn.fi/URN:NBN:fi:amk-2016120118649
Tiivistelmä
The purpose of the present study was to build a selection process and selection criteria to select a modern and sophisticated loyalty system for airlines. Airline industry is one of the fastest growing and most demanding industries on the planet. One of the primary challenges faced by most airlines today is that they still use legacy or custom developed loyalty systems, which are too expensive to manage and less flexible to changes. This has led to problems in adapting to the changing dynamic needs in the global travel industry and meet travellers’ expectations. The case was conducted in an airline’s Loyalty and Marketing Unit, responsible for the loyalty and marketing operations for the airline.
The study was performed using qualitative research methodology. A well-defined research process and data plan was followed. The qualitative research data consisted of interviews and workshops with various stakeholders, such as a solution architect and an airline expert, in various phases of the study. For literature study, many existing research materials were collected and reviewed from various journal databases.
The study results revealed the there existed a lack of selection process within airlines to select a modern loyalty application which were available in the market. A further analysis also detailed the lack of clarity on the criteria, which can be used to evaluate a modern loyalty application. Overall the data collected was useful in understanding both the existing frameworks and defining the future selection process and selection criteria. The study further analysed the features of most popular loyalty solutions available in the market. The initial proposal on the new selection process was built which defined the key steps and associated functions of each phase, which the airlines can adopt in the selection of their loyalty application. Additionally, the proposed selection criteria enhanced the understanding of future needs and necessary metrics required to validate the loyalty application. The initial proposal was then reviewed and refined which resulted in the final version of the selection process and selection criteria.
The author recommends that the airline’s loyalty and marketing units use and execute the new selection process and selection criteria to select a modern and flexible loyalty solution. The proposed process and criteria provided a concise process with outcome for each step and comprehensive list of criteria which enables airlines to choose a futuristic loyalty solution.
The study was performed using qualitative research methodology. A well-defined research process and data plan was followed. The qualitative research data consisted of interviews and workshops with various stakeholders, such as a solution architect and an airline expert, in various phases of the study. For literature study, many existing research materials were collected and reviewed from various journal databases.
The study results revealed the there existed a lack of selection process within airlines to select a modern loyalty application which were available in the market. A further analysis also detailed the lack of clarity on the criteria, which can be used to evaluate a modern loyalty application. Overall the data collected was useful in understanding both the existing frameworks and defining the future selection process and selection criteria. The study further analysed the features of most popular loyalty solutions available in the market. The initial proposal on the new selection process was built which defined the key steps and associated functions of each phase, which the airlines can adopt in the selection of their loyalty application. Additionally, the proposed selection criteria enhanced the understanding of future needs and necessary metrics required to validate the loyalty application. The initial proposal was then reviewed and refined which resulted in the final version of the selection process and selection criteria.
The author recommends that the airline’s loyalty and marketing units use and execute the new selection process and selection criteria to select a modern and flexible loyalty solution. The proposed process and criteria provided a concise process with outcome for each step and comprehensive list of criteria which enables airlines to choose a futuristic loyalty solution.