Technology and Strategic Management
TECHNOLOGY SOURCING FIELD RESEARCH
Instructor: Mr. Dominique JOLLY
Sokly KEAT
Gabriela ALVIDREZ
Kamolchanok KANWANICH
Part 1!
Company and R&D
Who is Amadeus?
• Air France, Lufthansa, Iberia and SAS joint together in
1987
Amadeus (MNC)
• The global distribution system (GDS) of travel bookings
• World’s Number 1 provider of customer management
solution, IT solution in travel industry
• 217 markets worldwide
• “Your technology partner” reflects committed approach
towards client relationships
Worldwide Technology Network and
Regional & Central Offices
• HQ: Madrid, Spain
• 6 Development Centers: France, UK, Australia, Germany, Belgium, USA
• Operation and Data Center: Germany
Amadeus in Sophia Antipolis!
Contacts
- Mr. Lennart MODIG
Position: Software Development Engineer
Phone: 04 97230377
E-mail: lennart.modig@amadeus.com
- Mr. Alphonse Duong
Position: Human Resource Administrator
Phone: 04 92946091
E-mail: aduong@amadeus.com
- Mr. Frederic GERACI
Position: Development Manager
Phone: 04 97230426
E-mail: fgeraci@amadeus.com
Mission Of the Company
• To retain the position as the world’s number 1
distribution company in airline industry
• To become the world’s number 1 provider of customer
management solutions for airlines
• To be the travel industry’s main technology partner
• To acquire more market share in North America
• To keep on being the biggest player in Europe and
Asia
Main Activities
• Distribution of flight tickets from airline to
customers through different channels
the most important source of revenue!!
• Providing software & infrastructure to travel
industry e.g. technologies to control the quality of
booking, fee managing, e-retailing
‘Software-as-a-Service’ business model
:Lufthansa
Company Profile
• Number of employee:
7,600 global + 2,500 in Sophia Antipolis
• Experts dedicated to R&D:
Over 2,000 global + 500 to 600 in Sophia Antipolis
• Annual turnover: 2,418.3 €million
• Technological Investment: Nearly €300million
• R&D spending: 182.19 €300million
60.73% !!!!
Main Customers/ Competitors/ Suppliers
Customers
• Airline companies
• Travel Agencies
• Hotels
• Ground & Maritime
• Tour Operators
• Corporations
• Travelers
• British Airways
• Finnair
• Qantas Airway
Competitors
• Sabre: World’s number one
distributors
• Galileo: Global Distribution
System
• Worldspan: Global
Distribution System
Suppliers
• HP: Hardware and software
• IBM: Hardware and software
• Oracle: Database
Key Success Factors
• Handle multi channeling: Web, B2B, B2C, TA
• Compressive integrated content
• Customized Front office solution
• Deliver a wider range of superior technology
• Partnership for technology development
Technology Portfolio
Comprehensive content and the means to
optimize its distribution through POS network
To access, market and sell content across all
channels; improve workflows, profitability and
customer service
Optimize customers' business operations,
processes and administration, and maximize
customer relationships
To yield the full value of customers business
processes and IT investments
Mode of Technology Sourcing
1 Equity R&D Consortia: In 1987
2 In-house R&D: Since 1987 up to now
3 Specialist Recruitment: Along with in-house R&D
4 Takeover:
•
•
•
•
SMART AB: leading travel distribution company in Northern Europe
Vacation.com: largest US marketing network for leisure travel
e-Travel Inc.: leading supplier of hosted technology products for corporate
ICSAT: International Computer Service & Advice on Travel (2001)
5 Equity R&D Joint Venture:
•
•
•
•
Terra Lycos: Online travel services Spanish and Portuguese speaking regions
Groupe Galeries Lafayette: A travel portal offering French domestic travel products online
Tele2 and SAS: A full service online travel agency for SMEs in Scandinavia
ITA, BroadVision, SAP: For e-commerce
Part 2!
Three Specific Technology and
Mode to Achieve
Why the company might have decided to give up
with some modes and use some others?
Every source is still in used ..depends on the situation
Open Source is now the most critical mode.
Mr. Modig: “Shifting over to using open source tools gives
a big advantage when trouble shooting because there
is a big community and you can retrieve a lot of
information from Internet. Furthermore you can also
participate in the development to be able to implement
the functionality that you need.”
Amadeus Altéa Customer
Management Solution
• Technology and functional breakthrough in the airline
industry
•
Community-based IT platform: consists of three
solutions
– Reservation
– Inventory management
– Departure control
• R&D sourcing modes: In-house R&D, open source
In-House R&D
• Since 1987
• Experts around 500 - 600 in Sophia and >2000 globally
• Training program for new technology
• Training time depends on technology type
• In-house R&D centers: 3 dedicated development
centers, State-of-the-art hosting centre, open
architecture, own network, and Scalable system
In-House R&D
dedicated
development
centers
Advantages: Community
and tailored solution
Disadvantages: Need
static staffs, costly
State of the art
hosting centre
Advantages: Secure and
control sensitive data
Disadvantages: No one
can access without rights
or permission, too costly
Open Architecture
Advantages: Futureproof flexible
technology, up-to
date
Disadvantages: Too
new, a lot of error,
need to solve the
problem together
In-House R&D
Own Network
Advantages: Proven and
reliable data transfer on
departure and arrival of
passengers
Disadvantages: Costly,
need a lot of staffs to
support, the service must
be real-time
Scalable System:
Software
application
Advantages: Easy for
small area
now Amadeus is
developing in big
environment
Disadvantages: Need the
resolvability of software
Amadeus Travel Package
• The system to make a travel package for customers
• technology sourcing Mode: Takeover ICSAT in 2001
• Advantage: Amadeus can gain all technology and
experts easily
• Disadvantages: Huge amount of investment and need
to downsize the new own company
Takeover
• SMART AB: 2002 Amadeus buy SMART AB from SAS
group
• Vacation.com: 1999 Amadeus buy Vacation.com
• e-Travel Inc.: 2001 Amadeus buy e-Travel
• Opodo: 2002 Amadeus owned 55.4%, to strengthen its
position in both the online and leisure travel arenas
• ICSAT: International Computer Service & Advice on
Travel (2001)
Sales & E-Commerce Solution
• Provide e-commerce solutions and IT platforms for
airlines and travel providers
• transform how people and companies buy, sell or
manage travel
• Advantages: improve workflows, profitability and
customer service throughout entire sales process
• Technology sourcing mode: strategic joint venture,
partnership
Strategic Joint Ventures & Partnership
• Terra Lycos, the world's third largest Internet
portal: joint brand, Rumbo, offers online travel
services in Spanish and Portuguese speaking
regions
• Groupe Galeries Lafayette: jointly created
Vivacances, a travel portal offering French
domestic travel products online
• Tele2 and SAS: joint venture company, Travellink,
provides a full service online travel agency for
SMEs in Scandinavia