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CASE NORWEGIAN INF3290. Bendik Bygstad IFI 26.september 2013

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(1)

CASE NORWEGIAN

INF3290

Bendik Bygstad

(2)

Case: Norwegian

Starting in 2002

Deregulation of air traffic in

Scandinavia and Europe

Today:

391 routes to 125 destinations in

Europe, Middle East, Thailand og

USA.

20 mill passengers in 2013

3000 employees

Revenues 2.5 bn Euro

(3)

Key Figures Norwegian

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

Operating

revenue

(MNOK)

15,5

12,8

10,5

8,5

7,3

6,2

4,2

2,9

1.9

1.2

0.9

0.3

Load factor

%

78

78

79

77

78

78

80

79

78

67

62

52

Passengers

(million)

20.7 17.7 15.7 13.0 10.8

9.1

6.9 5.1

3.2

2.0

1.2

0,3

Number of

routes

391

308

271 249

206

170 114 86

54

43

18

5

Number of

aircraft

85

68

62

57

46

40

32

22

14

12

8

7

(4)

Norwegian timeline: SOA

Establishing A service oriented architecture (SOA) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Airline company start

(5)

2002: IT architecture

Norwegian Business API

Norwegian Business Bus

Amadeus

Booking

Amadeus

Inventory

Rocade

BackOffice

Amadeus

Faring

Automat

CRM

Data

Warehouse

Local business Local business Local business Local business Local business Local business Local business Local business Local business Local business Local business

Amadeus

DCS

Mobil Internet & Portals Call center, station travel agent

Narvesen/Retail

(6)

Norwegian: Internet bookings

and tickets – bypassing travel

agencies

Establishing A service oriented architecture (SOA) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Airline company start Internet bookings

(7)
(8)

Norwegian timeline

Establishing A service oriented architecture (SOA) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Airline company start Internet bookings Establishing Low-Price Calendar

(9)
(10)

Norwegian timeline

Digital customer communication dominating Establishing A service oriented architecture (SOA) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Airline company start Bank Norwegian Internet bookings Establishing Low-Price Calendar Internet bank

(11)

2007: Bank Norwegian

Internet bank

Handles Norwegian’s FFP system

Profits 2012: 165 mill NOK

(12)

Norwegian timeline

Digital customer communication dominating Establishing A service oriented architecture (SOA) Mobile portal 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Airline company start Bank Norwegian Call Norwegian Internet bookings Establishing Low-Price Calendar Internet bank

(13)

Norwegian timeline

Digital customer communication dominating Establishing A service oriented architecture (SOA) Mobile portal 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Airline company start Bank Norwegian Call Norwegian Internet bookings Establishing Low-Price Calendar Using Facebook in the ash crisis Internet

(14)
(15)

Norwegian timeline

In-flight Broadband services Digital customer communication dominating Establishing A service oriented architecture (SOA) Mobile portal 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Airline company start Bank Norwegian Call Norwegian Internet bookings Establishing Low-Price Calendar Using Facebook in the ash crisis Internet

(16)

Recent developments at

Norwegian

2012: Largest airplane order: Norwegian

purchases 122 fly from Boeing

2013: Start of long-haul operations to

(17)
(18)

Case Analysis

Level

Decription

I nnovation aspect

Level 1: Technical

infrastructure

A service bus architecture,

based on an opensource bus

with web service interfaces.

Enables the extension of new

components at low cost, within

a business unit.

Level 2: Service innovation

infrastructure

An innovation mechanism,

based on combinations of

resources on the bus.

Enables the innovation of new

business services.

Level 3: Organizational

structure

A lean and flat organization

structure, structured on

business units.

Enables creative cooperation

and fast decisions.

(19)

The Bus Architecture

Norwegian Business API

Norwegian Business Bus

Amadeu

Booking

Amadeu

Inventory

Rocade

BackOffice

Amadeu

Faring

Automat

CRM

Data

Warehouse

Local business Local business Local business Local business Local business Local business Local business Local business Local business Local business Local business

Amadeu

DCS

Mobil Internet & Portals Call center, station travel agent

Narvesen/Retail

(20)

The Innovation Bus

www. Airline

www.Bank

www.Mobile

www.Next service

Innovation Bus

Amadeus

Bank serv.

Mobile serv.

Customers

Other serv.

Revenues

Inventory

(21)

The Organisation Bus

CEO

Finance

Airline

Organization Bus

Bank

(22)

Conclusion

Level

Benefits

Concerns

Level 3:

The Bus as

Organization

Structure

·

Supports an agile and innovative

organization.

·

Low costs

·

May not be sustainable as

organization grows into an

international diversified

company

·

Dependent on a culture of trust,

vulnerable to power games

Level 2:

The Bus as

Service

I nnovation

I nfrastructur

e

·

Enables innovation in horizontal

expansion, with short time to

market

·

Supports reuse of business

components

·

Synergies may be harder to

harvest with further growth

·

Dependent on managers who

understands the three level

structure

Level 1:

The Bus as

Technical

·

Supports a flexible systems

architecture

·

Enables fast extensions of

·

Increased technical complexity

may threaten flexibility

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