CASE NORWEGIAN INF3290. Bendik Bygstad IFI 26.september 2013

Transcription

1 CASE NORWEGIAN INF3290 Bendik Bygstad IFI 26.september 2013

2 Case: Norwegian Starting in 2002 Deregulation of air traffic in Scandinavia and Europe Today: 391 routes to 125 destinations in Europe, Middle East, Thailand og USA. 20 mill passengers in employees Revenues 2.5 bn Euro (15.5 mrd NOK) Bjørn Kjos Hans-Petter Aanby Bygstad, B. and Aanby, H.P. (2010) ICT Infrastructure for innovation : A case study of the enterprise service bus approach. Information Systems Frontiers, 12(3):

3 Key Figures Norwegian Operating revenue (MNOK) ,5 12,8 10,5 8,5 7,3 6,2 4,2 2, Load factor % Passengers (million) ,3 Number of routes Number of aircraft

4 Norwegian timeline: SOA Airline company start A service oriented architecture (SOA)

5 2002: IT architecture Mobil Internet & Portals Call center, station travel agent Narvesen/Retail Automat E - mail management Other WEB channels /API Norwegian Business API Norwegian Business Bus Amadeus Booking Amadeus Inventory Amadeus Faring Rocade BackOffice CRM Amadeus DCS Data Warehouse

6 Norwegian: Internet bookings and tickets bypassing travel agencies Airline company start A service oriented architecture (SOA) Internet bookings

7 2003: Bar code on tickets

8 Norwegian timeline Airline company start A service oriented architecture (SOA) Low-Price Calendar Internet bookings

9 2005: Low Price Calendar

10 Norwegian timeline Airline company start Bank Norwegian A service oriented architecture (SOA) Internet bookings Low-Price Calendar Internet bank Digital customer communication dominating

11 2007: Bank Norwegian Internet bank Handles Norwegian s FFP system Profits 2012: 165 mill NOK

12 Norwegian timeline Airline company start Bank Norwegian Call Norwegian A service oriented architecture (SOA) Internet bookings Low-Price Calendar Internet bank Digital customer communication dominating Mobile portal

13 Norwegian timeline Airline company start Bank Norwegian Call Norwegian A service oriented architecture (SOA) Internet bookings Low-Price Calendar Internet bank Digital customer communication dominating Mobile portal Using Facebook in the ash crisis

14 Ash crisis in 2010 Number of requests for SAS and Norwegian during the ash crisis

15 Norwegian timeline Airline company start Bank Norwegian Call Norwegian A service oriented architecture (SOA) Internet bookings Low-Price Calendar Internet bank Digital customer communication dominating Mobile portal Using Facebook in the ash crisis In-flight Broadband services

16 Recent developments at Norwegian 2012: Largest airplane order: Norwegian purchases 122 fly from Boeing 2013: Start of long-haul operations to Thailand and USA

17 Innovation

18 Case Analysis Level Decription Innovation aspect Level 1: Technical infrastructure Level 2: Service innovation infrastructure Level 3: Organizational structure A service bus architecture, based on an opensource bus with web service interfaces. An innovation mechanism, based on combinations of resources on the bus. A lean and flat organization structure, structured on units. Enables the extension of new components at low cost, within a unit. Enables the innovation of new services. Enables creative cooperation and fast decisions.

19 The Bus Architecture Narvesen/Retail Mobil Internet & Portals Call center, station travel agent Automat E - mail management Other WEB channels /API Norwegian Business API Norwegian Business Bus Amadeu Booking Amadeu Inventory Amadeu Faring Rocade BackOffice CRM Amadeu DCS Data Warehouse

20 The Innovation Bus www. Airline service Innovation Bus Customers Revenues Inventory Amadeus Bank serv. Mobile serv. Other serv.

21 The Organisation Bus CEO Finance Airline Bank Organization Bus CIO Revenues Operations Operations

22 Conclusion Level Benefits Concerns Level 3: The Bus as Organization Structure Level 2: The Bus as Service Innovation I nfrastructur e Supports an agile and innovative organization. Low costs Enables innovation in horizontal expansion, with short time to market Supports reuse of components May not be sustainable as organization grows into an international diversified company Dependent on a culture of trust, vulnerable to power games Synergies may be harder to harvest with further growth Dependent on managers who understands the three level structure Level 1: The Bus as Technical I nfrastructur e Supports a flexible systems architecture Enables fast extensions of services at low cost Increased technical complexity may threaten flexibility Depending on key personnel with deep knowledge of architecture