What it's like for British Airways to be a trailblazer with Offer & Order Management

Summary

In this insightful discussion, British Airways' leadership and their consultancy partner, Branch Space, delve into the complexities of BA's massive IT and business transformation. With a focus on adopting offer-order management, BA is investing 750 million pounds to modernize its systems and processes, aiming to enhance customer experience and streamline operations. The conversation highlights the strategic advantages of early adoption, the role of consultants in guiding the airline through this change, and the challenges of managing a deeply interconnected, large-scale transformation. Key takeaways include the importance of a holistic approach, change management, and creativity in driving lasting success.

Takeaways

• 😀 BA is undergoing its biggest ever IT transformation, investing £750 million to overhaul its IT infrastructure.
• 😀 BA aims to move beyond patching systems, instead rethinking and rebuilding from the ground up to create a more streamlined and efficient ecosystem.
• 😀 As an early adopter of offer and order management, BA sees a strategic advantage in influencing the direction of future technology.
• 😀 Offer and order management at BA is a massive transformation, impacting both technology and business processes across multiple departments.
• 😀 Branchspace focuses on understanding customer needs holistically, acting as a neutral mediator between airlines and technology providers.
• 😀 BA's transformation is not just about technology but also about changing business processes, customer propositions, and products.
• 😀 Creativity is a key skill being developed within BA's team to rethink processes and design future business solutions with a fresh perspective.
• 😀 The complexity of the transformation at BA is due to its deep interconnections across different parts of the business, requiring careful coordination.
• 😀 It’s crucial to think about the entire transformation upfront and avoid the temptation to tackle parts of the system in isolation.
• 😀 Engaging expert consultants early is recommended to avoid pitfalls and ensure smoother transformation, as the process is complex and full of potential risks.
• 😀 In five years, BA aims to have a fully integrated customer journey for shopping, ordering, paying, settling, and delivering, independent of the PSS.

Q & A

What is the primary motivation behind British Airways' (BA) transformation project?

The primary motivation is to overhaul BA's IT infrastructure to drive more revenue, improve customer experience, simplify their IT stack, and future-proof the organization. This is BA's biggest-ever IT investment, totaling £750 million.

Why does BA consider itself an early adopter of Offer and Order Management solutions?

BA views itself as an early adopter because it believes there is a strategic advantage in being one. Early adoption allows BA to influence the development of new technologies and gain a competitive edge in shaping the future of the industry.

What is the biggest challenge faced by BA in its transformation project?

The biggest challenge is the sheer complexity of the project. It's not just an IT transformation but a business transformation that involves changing processes, product propositions, and customer experiences across multiple departments.

How does Branchspace support airlines like BA in their transformation projects?

Branchspace provides expertise by offering a higher-altitude view of what airlines need, ensuring that their solutions align with industry standards. They also act as mediators between airlines and technology providers, advocating for the long-term goals of the airline industry.

What is the role of consultants in this transformation, and why are they important?

Consultants play a crucial role by helping airlines rethink their business processes and providing expert guidance on complex technology implementations. They are valuable because they help airlines avoid pitfalls and ensure that the transformation aligns with both current and future needs.

What key skills does BA’s leadership team focus on for future-proofing their workforce?

BA’s leadership team focuses on building skills in understanding the current ecosystem, effective change management, and fostering creativity. Creativity is particularly important for developing innovative solutions and thinking outside the box to drive meaningful business transformation.

Why is creativity considered an important skill in BA’s transformation process?

Creativity is essential because it allows the team to rethink and redesign business processes and technology solutions without being constrained by the status quo. It enables the team to approach challenges with a fresh perspective and find innovative ways to meet future needs.

What is the significance of the transformation being described as both a 'business process transformation' and a 'technology transformation'?

This distinction is crucial because it highlights that the focus is on rethinking and redesigning business processes first, rather than just implementing new technology. The technology is seen as an enabler to support the new business processes rather than the main driver of change.

What advice does Ru give to other airlines considering similar transformation projects?

Ru advises other airlines to engage with an expert consultant partner early in the process. Transformation projects are complex and involve many pitfalls, so having experienced partners can help avoid costly mistakes and ensure the project’s success.

What long-term goal does BA aim to achieve in the next five years regarding its customer experience?

In five years, BA aims to have a fully integrated customer experience where the journey from order to payment is independent of the Passenger Service System (PSS), creating a seamless, flexible process without dependencies on legacy systems.