Innovation Management at Airlines Industry

Innovation Management at air lanes IndustryExecutive summaryIn a line of chore context, vicissitude as a sunrise(prenominal) look at close together means the creation of value proposition where customers needs are effect through an integrated combination of goods, swear out, systems, process and technologies. This paper brought out an modern idea for air lanes industry, which could minimize the be by bring down the cabin junto in order expand the aliment intellectual nourishmentstuff growth for the woeful hail budget air ducts. The idea was the inst aloneation of hawking utensil in the aircraft. As a brand pop offal police squad, the idea would be implemented by the low embody budget airline light just aboutjet, whose main objective is to be the best low-fare airline in the world.As a cross function team of at large(p)jet, quite an few ideas were assessed before come to the final one. By analysing feasibility and justifying, the team found that if Easy jet installs the deal political tool in their aircraft, they could cut one of their cabin rings in an operation. It would shrivel their cost as well as bring tractability of customer service. The minimisation of cost paves the way to belligerent low-fare by reducing the ticket price.In this report, the team in like manner sorted out the authorization problem which could line up at start of the introduction of vend automobile in aircraft as well as recommend how to overcome these situations. Setting up of monger gondolas requires a slight spay of aircraft design as well as needs special version of peddle weapon, which is suitable for aircraft single-valued function. The teams design building block make a probable design of the aircraft, which is displayed in the report. Additionally, the maintenance social unit provided solutions for the future tense maintenance of this result.IntroductionInnovation is the commercialization of creativity. European invertebrat e foot for quality Management defined understructure to a greater extent(prenominal) precisely, as unveiling is the transformation of ideas into product, service, process and systems and social interaction. It arrive ats unused streams of value that satisfied stakeholders and knife thrust sustainable growth (cited in Mele, 2009). This is the new emerging phenomenon in business philosophy. In fact, renewal could be continuous rectifyments and radical or flat discontinuous idea of all product, process or it could be any service industry (Stamm, 2008). Innovation is crucial for present competitive and forever changing environment.As a mature industry, flight paths companies are encountering massive contest. As a result, innovation or creating a value for customer is the notice in this business. However, continuous or regular changing is not quite possible for this highly expensive and risky industry. Although, the airlines industry which take an possible action to creat e a value for capital, it crapper be a leader in this business arena. The selected family is Easyjet sideline the cost leadership strategy. Thus, the new proposed idea as well follows the cost leadership strategy. Before selecting this idea, a lot of ideas were generated. At the end, the installation of vending machine in aircraft is selected to create a new value for the Easy jet airlines. Why the innovation is crucial for Easyjet and viability of the proposed idea are explained in justification and reason for adopting sophisticated strategy section. Meanwhile, the proposed design of habilitateting up vending machine in aircraft has been presented in this report. Later, the predicted problem is identified and recommended the solution as well. At the end, nurture process leading show how this idea was developed.Preliminary investigationThis is the basic footprint to develop any potential idea at which coif take tos technical and victualsstuffplace merits are determine d (Stamm, 2009). This project has centred the marketplace of airlines industry. As a mature industry, airlines companies are generating and implementing divergent innovative projection in order to survive in a highly competitive market. maven of them is the cost strategic innovation has been brought in the UK by the deuce airlines industry, viz. Ryan air and Easy jet. Easy jet is the proposed company in this project. Analysing its market share, market growth, consumer needs and priorities and core competencies, this project identified the cost utile innovative idea, which is installation of vending machine in the aircraft primarily for slight dredge distance. Logic behind this proposal is reducing the cabin gang in order to cutting the cost. On the early(a) hand, it would bring the flexibility in customer service because customers need not to wait for food or drink. Furthermore, there would be variety of food and drink in the vending machine. Considering technical side of panorama up vending machine, aircraft get out be redesigned to a small extent.Justification for the InnovationEasyjet is presently the se notify buoyt largest low budget airline in Europe. In 2009 rider metrical composition annexd by 3.4% to 45.2 million this is as a result of Easyjets unequalled selling proposition of offering the lowest prices to the nigh convenient airports. It currently flights to 114 destinations on over 400 routes. It compares favourably with the model of Ryanair (currently the largest airline in Europe) which offers the lowest fares but to lowly airports (Easy jet, 2010). Easyjets strategy and business model is base on four key indicators (Appendix-2)As suggested by Buckman (2007), the next large wave in automation, and break down applied science overall, will focus little(prenominal) on the process and more on the people. Moving forward, it will be more astir(predicate) how technology can enhance and improve the perish experience from booking to baggage.Low price, a variety of destinations, value for money and efficiency are core competencies of Easyjet. Those core values should not change regardless of environmental turbulence (Collins and Porras, 1996). Its strategies require cost step-down and other profit sources are more important than travel fares as a source of r notwithstandingue.The chart on a lower floor shows an outline of how Easyjet compares to its nearest competitors in the airline industry in Europe.EasyjetRyanAirBritish AirwaysQuality of Service The quality of Easyjets service compares favourably with that of Ryanair which is the leading brand in the affordable Airline model. It all the same does not provide the same level of service as the mesh topology airline British Airways.Destinations Easyjet goes to fewer destinations than Ryanair. However, it does favour primary airports over secondary airports which give it a marginal advantage to customers who prefer to arrive scalelike to the city centre s. It goes to more destinations than British Airways in Europe.Price Advantage Easyjet has a distinct price advantage over the network airlines due to its no-frills(prenominal) pricing model. Its prices are low but can be reject if it chooses more secondary airports like Ryanair.The analytic thinking to a higher place shows that Easyjet is not the market leader in any of its key competencies. it is therefore necessary for Easyjet to improve its position. This can be done through innovative change in customer service.Reasons for Adopting Innovative StrategyWith the opening of political boundaries across Europe, the airline industry has seen tremendous growth in recent years. More and more passengers are travelling across Europe for business and leisure. This has allowed for the emergence of low cost airlines right across Europe. There has excessively been amplificationd competition from the high speed rail industry with companies like Eurostar increasing their market share in th e transport industry. The airlines put one over similarly been affected by the recent fluctuations in fuel prices and economic downturn.In 2009 Easyjet was able to incur modest profits of 54.7million despite these challenges. Moreover, there was a higher increase in revenue from supplementary sources (Appendix-2). As the company model is establish on reducing ticket price, it is preferable to maximise revenue from ancillary sources while reducing cost.In line with easyjets strategic priority of maturation a winning customer proposition and its ability to use technology for innovative change it has been reviewed various possibilities for improving the customer experience to grasp growth. They includeOffering a standing service for bypass haul flights. (Appendix-2)Enhancing the EasyjetPlus phone card service (Appendix-2)In-flight vending machine, which is explained below.This product would allow customers a low-cost self service that is easily available once on the flight. It w ould also reduce the workload of the flight attendants. It opens avenues for direct sales of products from Easyjet and 3rd exposeies. This extract allows Easyjet the opportunity to increase revenue by providing advertising space for third party suppliers. This would help improve the brand and ancillary revenue. It would be innovative as it is a new product to the market and Easyjet could possibly put one over additional revenue by licensing the product to other airlines once developed. It would just require investment in development of the concept and implementation.DesignEasy machine (vending) are going to locate in some part of the Galley (kitchen) where not only food and beverages kept but also contain flight attendant jump seats, emergency equipment storage, and anything else that flight attendants whitethorn need during the flight. As below image indicate, normal aircraft like A319 has two cookhouse areas which usable one for coffee machine and one for food and beverages. Easy machine in fact could be installed in galley area for more sentry go cut off and as mention preceding(prenominal) just occupy some space and it produces from very light and steady moldable material. It is necessary to state that Easy machine totally redesigned and resized in order to fit and stick in galley. The colourful design of frame-up vending machine in aircraft and possible installation place is displayed below in two picturesPotential problem and related to solutionsIn this part, the organise is to identify potential problems and threats, which could hinder the process of setting up the vending machine. At the same time, how to overcome these renders are explained here. In order to set up vending machine in an aircraft, Easy jet could lease some additional modification to their supplier for introducing compatible vending machines. However, setting up vending machine in an aircraft is not an easy task. It is estimated that, the following issues could be occurred when Easy jet will install the vending machine in the aircraft. These are broadly analysed as well as determination the problems with solution have been stated below.SafetyProblem analysis safety measure is take awayed to be the prime reason of concern while initiation the vending machine. As there is a potential risk when skitter taking off or landing and there is a misadventure of vending machine to falling down on the floor. Furthermore, it could bring an capacious accident for the aircraft. It could also injured careless sort of passengers when they pass the vending machine. After analysing safety reason, two main issues are identified, which are potential threats for pose vending machine. The issues are Stickiness of vending machine on the aircraft character of vending machine, where it would place antecedent the proposed installation of vending machine in the aircraft should be designed eespecially as it could viable for aircraft use. For the first-class honours degr ee issue of safety, vending machine should be attached on the floor as well as stick in the aircraft ceiling. As it should be unmoveable, even if when plane taking off and landing on the ground.Considering the second issue a flashy sign can be tagged on the vending machine or around the vending machine. It would act as caution when anyone is passing by the vending machine. It would also remove traditional trolley as well as reduce congestion in the galley area, which has a potential benefit for in-fight rungs (Appendix-4).WeightProblem The free weight of the vending machine was discussed as one of the key issue and involve thorough analyses while setting up vending machine in the aircrafts. Since, many instances of plane accident indicate the underlying weight related problems Easy cat valium should consider it from plan to implementation. As a result, it should be viable for aircraft capacity. Also, the weight is related with carrying passengers as well as luggage. Thus, Easyje t should consider two issues for weight related problem. These are The weight of the vending machine The weight capacity of aircraftSolution the proposed vending machine should be specially built for aircraft. Meanwhile, Average vending machine weight is 310 kg with 360 can capacity (Cokevending, 2010). It is built with metal and as a result, it is heavy. However, using plastic can reduce the weight. Recently, plastic vending machines are available in the market. Thus, it is feasible to think for instal plastic vending machine in the aircraft.LegalProblem this potential threat might come from regime approval. This is because it is related with aircraft safety. In the meantime, public pressure could be arising as a new innovation process. Since, it is related with aircraft reengineering. Another question would be aflame(p) about the cutting down of staff as there is well-worn ratio of staff should available in service operation. As a result, the following issues should consider b efore launching the vending machine in the aircraft. Managing related governmental department for approval Increasing public depone Staff reduction issueSolution for pursuing government approval, Easy jet could prove that this innovative changing is viable for aircraft. It is taken because of reduce cost. Since, it is not a radical innovation. Thus, it is not tough enough to demonstrate people believe that this change is feasible for aircraft carrying capacity. Consequently, easy jet can introduce advertisement campaign for bringing the trust on public. unity of the main objectives of the fitting up vending machine in aircraft is reducing the staff. Thus, this low cost leadership airlines industry can be bringing down their operation cost. However, there is a legal issue about the standard ratio of cabin caboodle, which has to be considered before reducing the staff (Appendix-2).Space reductionProblem installing vending machine in the aircraft means shrinking the space of the air craft. Length of existing vending machine of coca cola is 102 cm. Though, vending for aircraft would be customized, but it will take some space. Thus, potential issues could be Occupancy of space by installing vending machine Reducing the space from aircraftSolution though vending machine will occupy some space, it has other potential benefits. crapulence and food service will be self served. However, this space reduction could not impact hugely in aircraft. Meanwhile, it would be competitive occupation off to be set up vending machine for aircraft, which would be customized only for aircraft.FinanceProblem Easy jet has to invest some money to restructure of its aircraft for setting up vending machine. Thus, following issues could be installing vending machine Restructuring cost Set up costSolution moderately less amount of money is related for installing vending machine. The proposed vending machine in aircraft would be specially made for Easy jet aircraft. Thus, its production c ost will be rupture in such as material cost, setting cost and other related cost. Considering all this aspect, it could be assumed that setting up vending machine would not be an expensive venture.Consumer credibilityProblem restructuring and redesigning the aircraft is more risky than ground vehicle. Public intimidation would be high if the restructuring will not be proved to be safe. Thus, significant threats of safety should be measured. These could be accounted below Inconvenience for passengers Possible queuing for food and drinkSolution Easyjet carries passengers for short haul distance. The installation of vending machine is primarily for short haul distance air travel. As a result, inconvenience of passenger would not be high. Rather, passengers do not need to wait for crew penis as it is self service. Keeping attention of possible queuing, the member of staffs could check all over the flight as passengers could take food or drink without any hassle.Maintenance of vending machine innovationThe Easyjet has to consider the following issues for the maintenance of vending machineCustomer use of vending machineCustomer can buy any product by coin, paper note and debit or credit card (chip pin). It is bouffant issue for customer which currency will accepted by this vending machine. For solving this problem machine have to set the curriculum that it will accept most of the familiar currency.Vending machine manageBefore start the flight, supervisor (cabin crew) has to visits machines and dispenses soft drinks, candy and snacks, and other items. They learn money from the coin and cash-operated machines, restock merchandise, and change labels to indicate new selections. They also keep the machines clean and appealing. Supervisor should have enough training to wield this machine and to manage the passengers to assist them to buy their food, drinks or other things. block up down and solutionIf machine break down, it would be advisable that most of the con trol functions can be managed by an integrated circuit control panel (Appendix-2).Managing vending machine food write outEasy jet already has bosomed with some brand food and drinks company. In year 2009 they started contract with world famous coffee company Starbucks (Easy coal-black, 2009). These types of company can supply vending machine food.Reflection of learning processThe new big innovative idea was developed by the four members. As it has been cognise that innovative idea always needs brainstorming and lots of challenges have to overcome before evolving any viable idea. Since it has been instructed that this potential idea should increase the opportunities of market growth for the selected company, the four members have worked through generating ideas related with different business. Officially, as it is assigned by administration to compile the report in six week period. The task was organised weekly such that the first two weeks was developing different ideas and subs equent researching as well as collecting relevant materials based on the selected idea and company. Meanwhile the team has contacted with different vending machine companies for the suggestion to setting up vending machine in aircraft.Discussion of first confrontation was basically organising the team members, structural format, assigning the role to the members, and deciding who would maintain the contact with all others members as a coordinator. The role of Coordinator implies by Crossman (2008) as this person will have a clear view of the team objectives and will be skilled at inviting the contribution of team members in achieving these objectives (p.198).The following meeting was to come in the point where the team decided to select an airlines company as topic to develop innovative idea. The session was garnished with quite a few exchanges of ideas, views, comments and critical discussion. Finally, the team has picked the idea of setting up vending machine in the aircraft. On the other hand, as a cross functional team, team members are viewed themselves as a members of their function (Crossman, 2008). Thus, this project work was split such as market and cost analyses for new innovation, identifying problem and related solution, design the aircraft for setting up vending machine and maintaining after installation.As a completely new idea, the team go about a lot of challenges to prove the viability of project. All of the subsequent meeting held on bases of testifying the perfection of this project. While making the progress in setting up the vending machine for aircraft, the team encountered few key issues. As challenges grew more, the team rather focused on uses of the light weight plastic material, or else of heavy metal made vending machine. Furthermore, it has been estimated by the team that, this step would be suitable like low-cost strategic airlines mainly Easyjet. Because they can adapt the policy by reducing the numbers of cabin crew and recap the installation cost of vending machine. Additionally, it could sustain steady market growth. The team observed the innovation would bring about a competitive advantage even in the time of severe economic downturn.The above development of idea and analysing process revealed the learning of the core motive of innovation for the team members.ReferenceCoca-Cola Enterprises (2004). Vending machine specification. online acquirable at uniform resource locator http//www.cokevending.co.uk/ven_vending_machines_coke_bottle.html Accessed 1 march 20103M United Kingdom PLC (2000). Vending machine weight. online visible(prenominal) at uniform resource locator http//solutions.3m.co.uk/wps/portal/3M/en_GB/Tapes-and-Adhesives/Home/DocumentCentre/Datasheets/?PC_7_RJH9U5230GVA6027OM7C9G2AG3_nid=4XX438M9Z6be7B9QQ3C521gl Accessed 25 February 2010Easy Jet Airline gild Limited. 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