Why should airlines carry out digital transformation?

Contains two meanings:

First, for newly established airlines, it is necessary to build and operate digitally from the beginning to avoid competing with traditional large airlines in the same way on the same track. This is the concept.

Otherwise, the new airline has no competitive advantage in cost control, market development, cooperation mode and operational safety, and can only rely on the support of local government policies, unable to move towards an open competitive market, and almost hopeless to avoid losses;

Second, for medium and large airlines, due to the closed aviation industry, the market environment and IT system are highly homogeneous, and there are almost no special personality differences except the only route network differences. The main environmental factors depend on external conditions, so the conditions for innovation are actually very limited.

All these determine that it must be realized by reorganizing resources, redefining roles and reorganizing processes. In reality, the resources, roles and processes that have been relied on for decades are solidified in the existing IT system. Without breaking the shackles of the existing system, it is almost impossible to effectively achieve large-scale innovation, and even "micro-innovation" is difficult.

So what kind of airlines need digital transformation?

Simply put, all airlines need digital transformation.

If new entrants in this industry use the advantages of Internet technology to compete, leading enterprises will begin to improve their competitive efficiency through digitalization, and enterprises that do not transform from efficiency may be at a huge disadvantage.

Therefore, the situation forces all market participants to seek new breakthroughs on the road of improving efficiency and reducing costs, instead of standing still and being eliminated by the market.

From the management point of view, the whole process of digital monitoring can effectively reduce unnecessary cost consumption;

The improvement of digital management level of material inventory can also effectively reduce the financial pressure brought by pre-purchase and inventory;

Timely collection and analysis of data generated in the process of production and operation can also timely and effectively adjust business processes;

Every progress will bring great competitive advantages to enterprises. Enterprises that wait for competitors to optimize their processes, save costs and release financial pressure without doing anything will surely fail in the competition.