How Air-India is reimagining the skies with its digital strategy
HighlightsSatya Ramaswamy, Chief Digital and Technology Officer of Air-India, spearheaded a rapid transformation of the airline's digital infrastructure, completing a transition from mainframe systems to cloud-based SAP in just six months. The implementation of India's first practical customer experience mobile application has resulted in an impressive 4.8-star rating on both Android and iOS app stores, significantly enhancing customer satisfaction and engagement. The merger of Vistara and Air-India saw a successful integration of loyalty programs, with the Net Promoter Score (NPS) of the combined entity surpassing that of its individual predecessors, indicating a complete shift in customer perception.
The journey for
Tata Group
's acquisition of Air-India began not with a leisurely stroll, but with a sprint. When
Satya Ramaswamy
, chief digital and technology officer, Air-India wanted to step into the airline's data warehouse and data center, he was warned that the area was infested with snakes.
Coming from a small town in South India, Ramaswamy recalls mentioning that reptiles were the least of his concerns.
His bigger task was to put the national carrier, which was acquired by the
Tata
group, back on its flight path, and data would play a greater role in that journey.
He knew that the time available was far less than what was typically required (six months rather than the normal two-years for an exercise of this scale). This stark reality immediately set a tone of urgency and demanded creative problem-solving. Every decision was made with a "minimal time" philosophy, pushing the boundaries of conventional timelines.
Consider the migration from a mainframe system to SAP on the cloud – a process that traditionally consumes years. Here, it was accomplished in a mere six months. Similarly, the transition from ECC (a legacy SAP system) to S/4HANA (to enhance real-time data analysis capabilities), another year-to-two-year endeavor, was tackled with similar alacrity. This wasn't just about speed for speed's sake; it was about laying down a robust digital foundation, one that would underpin the ambitious vision ahead.
Build versus buy
In an era of rapid technological advancement, a critical question for any large-scale transformation is: how much do you build in-house versus buy off-the-shelf? The approach here was refreshingly pragmatic. Building was reserved for areas where a clear competitive advantage could be gained, or where existing solutions simply didn't meet specific, unique needs. For everything else, the focus was on identifying the best system for the job.
Take, for instance, a complex martech product. It would be foolish to attempt to build an in-house equivalent, he agrees. Instead, the strategy was to leverage existing, top-tier products.
However, for initiatives like India's first practical customer experience mobile app, where the goal was to deliver an immediate lift in public perception and solve customer problems, internal development efforts were prioritised. This discerning balance between building and buying ensures that resources are allocated wisely, maximising impact where it matters most, says Ramaswamy.
One common refrain in the tech world is how little of a purchased stack is actually utilised. Like a mobile phone where only 10 per cent of features are regularly used, large enterprise software investments can often go underutilised. The leadership here understood this challenge keenly, ensuring that both on the consumer and enterprise sides, the technology being deployed was truly adopted and leveraged. On the consumer front, drawing on the team's own experiences as frequent travelers, they intuitively understood which features would resonate and be easily adopted. For the enterprise, decisions were driven by necessity and regulation, with continuous evaluation to ensure systems were being actively used. If not, solutions were sought to either drive adoption or explore alternatives.
Honing the levers of customer satisfaction
The true measure of this transformation lies in its tangible impact on customer satisfaction. Across all customer-facing channels, a significant lift in the customer experience has been observed. The mobile app, for example, stands out as a prime example of success. Ramaswamy says that despite ongoing improvements, the app boasts an impressive 4.8-star rating in both Android and iOS app stores – a global high. Customers rave about its everyday utility, from real-time flight status updates that track incoming and outgoing flights, to the seamless boarding pass scanning feature that instantly pulls up reservations, claims Ramaswamy.
'This digital convenience has become a fundamental direct channel, complementing a revamped website and an intelligent notification system that empowers travelers with timely updates, allowing them to, say, grab a coffee at the airport before their flight is called,' he says.
Beyond these foundational elements, the airline has introduced innovative features that are aimed at elevating the journey. Imagine being able to ask a chatbot if you can bring your beloved Labrador on board, and receiving an empathetic, policy-compliant answer: "I'm glad to know you're taking your lab with you, and here are the things along with..." This level of personalised, intelligent interaction transforms a potentially stressful query into a reassuring experience, says Ramaswamy. The upcoming in-flight entertainment system promises to further enrich the journey, he added.
But the transformation isn't limited to the customer-facing visible elements. A significant amount of work has been done behind the scenes to empower the cabin crew and pilots, even if passengers don't directly see it. Crew members now have access to crucial information about passengers – their loyalty status, previous service issues – enabling them to deliver a more personalised and proactive experience. This consistent delivery of service across all flights builds trust and consistency, fostering a sense of reliability that is paramount in the airline industry.
Navigating turbulence with grace
The merger of multiple airlines is an inherently complex endeavor, fraught with potential for customer disruption. The successful integration of loyalty programs, in particular, was a monumental task, when
Vistara
merged with Air-India. While individual cases of activation issues might arise due to discrepancies in names or contact information, an overwhelming majority of customers experienced a seamless transition, says Ramaswamy. The loyalty manager program, a global first, has been a resounding success, demonstrating the meticulous planning and execution that went into this intricate process, he states.
The impact of these efforts is reflected in the statistics. The Net Promoter Score (NPS) of the combined entity has surpassed that of its individual predecessors. The business class NPS has increased by 1.5 times, and the domestic NPS for the entire airline has seen a dramatic leap from -19 to +25. 'This isn't merely about incremental improvements; it's a testament to a complete shift in customer perception, driven by a holistic approach to enhancing every aspect of the flying experience. From refurbishing older aircraft to investing in new fleets and optimising supply chains (despite global challenges), every effort contributes to this upward trajectory,' he says.
The interplay of physical and digital
In an industry where the physical and digital experiences are inextricably linked, ensuring a seamless journey requires a deep understanding of their interplay. Digital tools are being leveraged to enhance the physical experience. For example, cabin crew members are equipped with tablets providing detailed information about travelers, allowing them to offer personalised service. This empowers staff in the physical world to perform their jobs more effectively, bridging the gap between the digital insights and the tangible interactions.
The integration of different generations of cabin crew – the seasoned veterans and the tech-savvy newcomers – also presented a unique challenge. However, the younger generation's inherent adaptability to technology, coupled with comprehensive training programs, ensures consistency in service delivery. This blending of experience and technological prowess is crucial for building a brand that consistently meets customer expectations.
Building a profitable and purpose-driven future
This transformation is not a sprint; it's a marathon. The initial phase is complete, and the journey continues with renewed vigour, guided by a vision of a reimagined flying experience powered by technology and purpose. The organisation emphasises speed, collaboration, and a relentless focus on customer delight and operational excellence. 'This five-year transformation is a testament to the belief that technology can be a key pillar in driving both efficiency and elevated customer experiences,' says Ramaswamy.
However, transformation in a highly regulated industry like aviation comes with its own unique set of challenges. Replacing an in-flight entertainment system, for example, isn't as simple as buying a new TV monitor. It involves rigorous safety checks, validations, and a lengthy manufacturing process, says Ramaswamy.
Breaking down silos
A critical success factor in any large-scale transformation is the ability to break down departmental silos and foster a common vision. From the outset, a clear directive was established: no data silos. This ensured that all data was unified and accessible, fostering a holistic view of the customer and operations. Furthermore, the traditional concept of a "business" and "technology" divide was dismantled. Instead, digital technology was recognised as an integral part of every operational function, with dedicated teams ensuring that the technological perspective was integrated into all decision-making processes.
This collaborative spirit, fostered by a supportive top-level management team, has been instrumental in aligning diverse stakeholders towards a shared goal of customer excellence. The recognition that different departments might not fully grasp the impact of their actions on others led to a proactive approach of bringing multiple stakeholders together, ensuring a comprehensive understanding of the interconnectedness of all operations.
The future of Indian aviation
The Indian aviation industry is booming, with hundreds of millions of people taking to the skies annually. This growth, coupled with a vast Indian diaspora and increasing business travel, positions the national airline for unprecedented expansion. The strategic orders for new aircraft and a clear vision for the future indicate that this airline is poised to become a global powerhouse, 'potentially surpassing even the largest American carriers in size and scope', says Ramaswamy.
The future of aviation is also being shaped by advancements in artificial intelligence and personalised service. Imagine a future where a "software agent" acts as your personal experience manager, proactively looking out for your interests, reminding you about loyalty points, and seamlessly integrating with all your travel needs. This vision of a truly customer-centric experience, driven by intelligent technology, is already being built.
This extraordinary transformation serves as a powerful testament to the fact that even the most deeply entrenched challenges can be overcome with a clear vision, relentless execution and a passionate commitment to the customer. 'It's a story not just about technology, but about people, process, and the unwavering belief in a brighter future for Indian aviation,' says Ramaswamy.
The transformation is not just about upgrading infrastructure; it's about a fundamental shift in mindset. From tackling legacy systems in snake-infested data centers to executing ruthlessly on tight deadlines, the journey has demanded immense creativity and unwavering dedication.
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