Overview

GROUP
5

Overview

Company and Industry Brief

Innovation and Design
Design Process
Financial and Non-financial Impact
Key Learning

Aviation industry sector:

Saturated

Most unprofitable industry @$31.7 billion loss SIA outperformed the

market and maintained an above-average profit margin

Entry of low cost airlines threaten profitability of SIA

High impact of policies and regulations, e.g. excise taxes, airport taxes and
fuel price

Brief on company

History: Established in 1947 with Malayan Airways Limited (MAL) and

separated in 1972

Size: more than 60 cities in over 30 countries

Position: A premium carrier with high levels of innovation and service

excellence

Competitive advantage: Service differentiation and cost effectiveness

Low

High

Privilege Service

Positioning Map

Low Cost
Carriers:
Ryan Air, Air
Asia,
Malaysian
Airlines

Low

Value for
Money:
Emirates,
Etihad, Jet
Airways

Price
High

Premium
Segment:
Singapore
Airlines, Air
France,
Cathay Pacific

Innovation

Continuous Incremental
High Value in Industry
Innovation
Low cost (Critique-Route
expansion)

Follow Up routine; less visibility to Customer POV

User Driven

Total Innovation
Discontinuous Radical
Unpredictable
Leader
Innovation
High impact on Customers

User Centred

Innovation in everything all

the time

and
Follower

Role of User

User Driven

User Centered

Extensive Customer feedback

Match high customer expectation
Sell a Lifestyle

Role of Design

Strategic Perspective

Create Differentiation Advantage

Leading Perspective

s a primary function used in a structured format

-Engrained in the employees Corporate culture
-Focus on elevating customer exp

n cost effectiveness to sustain in the aviation industry-Curbs Regular Radical Inn

Balanced Approach

Open Innovation
Products: Cabin seats, Design of
Aircraft, Designing lounges

BMW Design Works and JPA

Designs

EXTERNAL

Closed Innovation
Services: Cuisine and cocktails, In
flight entertainment

Internal product and service

development team

INTERNAL

Design Process - 5 phases

Researc
h

Brainst
orm

Prototy
pe

Repeat

Deliver

Go Green
Focus: Customers need to have a positive impact on the environm
Reduce weight of aircraft to save fuel (Sr.VP)
Trend of e-books and e-magazines
Use Kris entertainment technology

Tested electronic magazines Silver Kris, Kris Shop, Kris world with
based private company smart aviation paper ltd.
(Patented file compression technology) - iphones sibblings
Repeated within the company to see if it functions well.

Launched 31st July 2010 Boeing 777-300 ER (2 flights) followed by

flights)

Stages

Post

(cont.)

service

Sign Up

- Awareness of the
service

- Create Account
- Buy tickets
- Check into flight
- Manage their Kris
flyer account
- Choose their
meal using SIA
book the cook
service
- Check flight
schedule

- Check in luggage
and take boarding
pass
-Wait and take a
rest in the lounge
- Boarding

- Find seats
- Interaction in
flight
- Entertainment
in flight
- Consume
Cuisine and
cocktail in flight

- Get off the

plane
- Provide
feedback
- Luggage
collection
- Luggage
loss/othe
r issuesCustomer
complaint
counter

- Official website
- Online
advertising
(e.g.
understanding
touch- your needs)
points (e.g. across the
used by world with the
Singapore girl)
SIA
- E-newsletter

(when customer

sign up with their

email address)
- Social network
(e.g. Facebook/
Twitter/ YouTube)

- Official Website
- Official
agent/Ticketing
agency

-Front office
counters/check in
-Information kiosk
- On ground
attendants
- SIA - Airport staff

- Greet
customers
- Guide to seats
- Security
information
- Services
provided in flight
(e.g. duty-free
product selling,
food offering)

- Farewell
- Online
feedback
- Points for
flight
- Describe
experience
on Social
media
- Customer
service
centers

- Marketing
strategy planning
- Staff training
- Digital branding

- Development of
Backend IT
infrastructure for
the website
- Maintaining the
commissioned

- Partnership with
booking websites
- Staff training
- Communication
between airport
authority and

- Flight
attendants
training
- Pilot training
- Flight crew
training

- Aircraft
maintenance
- Maintain
customer
relationshi
p

User
actions

Backsta

Service use

Service use

Pre-service

Design Thinking
Trial and learn from failures
Corporate culture

User centred
Change the meaning of
Luxury flying
Maximum focus on elevating
customer experience

Design Driven

Design is CRUCIAL and a

STRUCTURED EFFORT

Financial Impact

Financial Impact

Net profit after tax

1200
1011.2

1000
800
600
400
200

390.2

279.8

0
2010.0
-200

2011.0

2012.0

2013.0

-400
-600
-800

-694.1

Awards - Mar 2013 to Mar

2014

MAR
2013

OCT
2013

DEC
2013

AUG
DestinAsian NOV
(Asias leading
2013
2013

luxury travel and lifestyle

magazine Jakarta)
Readers Choice Awards (8th
time running)
Best In-flight Entertainment
Best Frequent Flier
Programme - Krisflyer

MAR
2014

FEB
2014

Timeli
ne

Awards - Mar 2013 to Mar

2014

MAR
2013

OCT
2013

DEC
2013

SmartTravelAsia.Com (Hong
Kong)
Best Cabin Service

AUG
2013

NOV
2013

MAR
2014

FEB
2014

Timeli
ne

Awards - Mar 2013 to Mar

2014

MAR
2013

OCT
2013

AUG
NOV
Travel+ (China)
2013
2013

DEC
2013

2013 China Travel Awards

(Joint winner with Lufthansa)
The Best Inflight Service

MAR
2014

FEB
2014

Timeli
ne

Awards - Mar 2013 to Mar

2014

MAR
2013

- Saveur Culinary Travel

Awards (USA)
Readers Choice Best Inflight
Dining (First & Business
OCT
DEC
Class)
2013 Choice Best2013
Readers
Inflight
Dining (Economy Class)
- Business Traveller (China)
AUGBest Service NOV
on the Ground FEB
2013and in the Sky
2013
2014

MAR
2014

Timeli
ne

Awards - Mar 2013 to Mar

2014

MAR
2013

OCT
2013

DEC
2013

AUG
NOV
FEB
- Premier Traveler
Magazine
2013
2013
2014

(US)
Best Economy Class service in
the World
Best International Airport
Lounges
- Business Traveler USA 2013
Best Overall Inflight Experience
in the World
Airline with Best First Class

MAR
2014

Timeli
ne

Awards - Mar 2013 to Mar

2014

MAR
2013

DestinAsian (Asias leading

luxury travel and lifestyle
magazine Jakarta)
Readers
OCT Choice Awards
DEC(9th
2013
time2013
running)
Best In-flight Entertainment
Best Frequent Flier Programme
AUG Krisflyer
NOV
FEB

2013

2013

2014

MAR
2014

Timeli
ne

Awards - Mar 2013 to Mar

2014

MAR
2013

OCT
2013

DEC
2013

AUG
NOV
AFAR Magazine
(USA)
2013
2013

Experiential Travel Award for

Best Inflight Service

MAR
2014

FEB
2014

Timeli
ne

Ranking of SIA in Recent Five

Years

2008:
1st

2010:
2nd

2009:
2nd

2012:
3rd

2011:
2nd

Timelin
e

Perceptual Map Relating to Service

Quality
High

Singap
ore
Airlines

the
S
Air C ervice, co
rew a
mfor
t
ttent
ion is and
fanta
sti

The quality of food, wine an

attention to detail was excel

In-Flight
Experienc
e

Qatar
Airway
s

Malaysi
a
Airlines

They got Spacious se

Asiana
Airlines

Virgin
Americ
a
Low
Bad

On-Time
Performance

rew
c
py ol
p
a
h
nd
d
o
i
n
l
g a a mil
n
i
l
mi feel
s
e
th e you
d
ma

Good

Key Learning

Ambidexterity - innovation
Focus on both service and product design

Corporate culture on Design outlook and customer experien

Open to external ideas work on building their capabilities
Balance between design and profitability
Exceptional focus on Problem solving and human centred
approach to innovation

Thank you !