a case study of a dynamic...

174 Radha Raman Chaudhary, Prof. Satyendra Kumar Sharma

International Journal of Engineering Technology Science and ResearchIJETSR

www.ijetsr.comISSN 2394 – 3386Volume 5, Issue 2

February 2018

A Case Study of a Dynamic Organization

Radha Raman ChaudharyDirector, Modern Institute of Technology and Research Center

6th Mile Stone, Delhi - Tijara Highway Alwar (Rajasthan) INDIA

Prof. Satyendra Kumar SharmaAssociate Professor, Modern Institute of Technology and Research Center

6th Mile Stone, Delhi - Tijara Highway Alwar (Rajasthan) INDIA

ABSTRACTThe traditional organization’s USP’s for example order, control, stability, predictability and executions are proving tobe self satisfying than capable of meeting changing customer targets. Customers are finding non-complianceunacceptable and are changing supplier at the drop of a hat. In fact many organizations are failing and are finding itdifficult to cope with this change. The situations demand a smart supplier before the customer throws you out of ring.The challenges are new. And therefore suppliers are looking for the ways in which they can be more competitive and yetprofitable. One thing is clear before them, is that they have to change to bring new vitality / dynamism in theorganization.

Today even change is not sufficient. It has to be a continuously changing with appropriate speed to meet aggressivetimeline for dynamic organization. This may results in many complexities for the organization. Therefore demands fortuning appropriate strategy to address these organizational complexities in time and in geographies. If not taken care ofduring planning phase may bring uncontrolled results at the time of implementation of the plan. These change typescharacterize the organizational dynamics. We will present a case to handle the new organizational challenges arisingout of the changed scenario in this paper. While the organizational complexities may increase, there is hardly anysupport knowledge available to understand, learn and manage the problems in time. Hence in this paper we present atheoretical perspective and a model grounded in our thought process thru academic research for building knowledgecapabilities and system flexibility to handle dynamic organization problems.

Keyword – SWOT Analysis, Continuity forces, Change forces, SAP-LAP Framework, Knowledge ManagementSystem, System Flexibility.

I. INTRODUCTION

Today’s business is affected by recessionworldwide. Recession is recurrent phenomenon inUS, Japan EU and GCC countries for years.Consequent to that many of the fortune 500companies are either filing bankruptcies or fightingtheir survival. As a result, many companies vyingfor the same demand existing in the global market.Thus creating competition to the highest order, somuch so that literally customers are calling shotsand in many a case letting organizations bleeds.This has put pressure on the company’smanagement to control the situation and betterutilize their resources to deliver to the customer in

time and in acceptable quality. The traditionalorganization’s USP’s for example order, control,stability, predictability and executions are provingto be self satisfying than capable of meetingchanging customer targets. Customers are findingnon-compliance unacceptable and are changingsupplier at the drop of a hat. In fact manyorganizations are failing and are finding it difficultto cope with this change.

The situations demand a smart supplier before thecustomer throws you out of ring. The challenges arenew. And therefore suppliers are looking for theways in which they can be more competitive andyet profitable. One thing is clear before them, is that




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they have to change to bring new vitality ordynamism in the organization which delivers to thecustomer satisfactorily.

Today even change is not sufficient; it has to be acontinuously changing with appropriate speed tomeet aggressive timeline. This may results in manycomplexities for the organization. Thereforedemands for tuning appropriate strategy to addressthese organizational complexities in time and ingeographies. If not taken care of during planningphase may bring uncontrolled results at the time ofimplementation of the plan.

These change types characterize the organizationaldynamics. We will present a case to handle the neworganizational challenges arising out of the changedscenario in this paper. While the organizationalcomplexities may increase, there is hardly anysupport knowledge available to understand, learnand manage the problems in time. Hence in thispaper we present a theoretical perspective and amodel grounded in our thought process thruacademic research for building knowledgecapabilities to handle dynamic organizationproblems

II. DYNAMIC ORGANIZATION - GHIAL(GMR Hyderabad Intl Airport Ltd.) - A CaseStudy

Airport operations are growing in complexity dayby day as the number of players at the airport isincreasing manifold. It extend across multipleservice providers at the airport – namely groundhandlers, customs, immigration, retail tenants, airtraffic control, security, baggage handlers, airlinesconsortiums, airlines, airport hotels, nearby airports,banks & money changers, fuelling stations etc.

These agencies use the airport infrastructure in sucha way that they meet their commitment to theircustomers in due time. These commitments put a lotof pressure on the airport infrastructure support staffto keep the systems up and running efficiently.However the success of the airport business lies inthe efficient and uninterrupted support and servicesto these agencies at the airport.

Currently these services are handled manually atmost of the Indian airports, so there are umpteen

chances of these services to breakdown at mostappropriate time when airport are supposed to meettheir stated commitments with agencies. Theseincidents are very frequently occurring, particularlyat the busy airports like Delhi and Hyderabad wherepressure to meet timelines are heavy on airportinfrastructure. The passenger choices are alsochanging along with the requirements of the airlinefrom the airport.

Therefore there is a need for a comprehensivesolution to provide the flexible and proactiveknowledge based service delivery which guaranteesthe availability and usability of the infrastructureavailable at the airport to meet the commitments.This case study discusses a solution that raises theservice level of the airport to its agencies andeventually creates a positive image in the minds ofits users of the airport and eventually the success tothe airport management.

This case study is based on the solution provided atone of the busy airport where the solution created,provides the right answer to different stakeholdersat the airport.

MISSION

The mission statement of the GHAIL airport is “Toestablish Hyderabad airport as South and CentralIndia’s gateway of choice, Preferred Logistics Hub,India’s largest Aerotropolis and attain itsSustainable Growth by –1. Delivering Quality Services & CustomerExperience

2. Effective Stakeholder Engagement

3. Being a Preferred Organization to Work.

PURPOSE

In September 2003, the members of GHIAL signeda shareholders' agreement, as well as an agreementfor state subsidy of over ₹400crore (US$59 million). A concessionagreement between GHIAL and the CentralGovernment was signed in December 2004,stipulating that no airport within a 150-kilometre(93 mi) radius of RGIA could be operated. Thus,the closure of Begumpet Airport was required.

RGIA is owned and operated by GMR HyderabadInternational Airport Ltd (GHIAL), a public–private




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venture. It is composed of public entities AirportsAuthority of India (13%) and the Government ofTelangana (13%), as well as a private consortiumbetween GMR Group (63%) and Malaysia AirportsHoldings Berhad (11%). Per the concessionagreement between GHIAL and the CentralGovernment, GHIAL has the right to operate theairport for 30 years, with the option to continuedoing so for another 30 years.

Phase-1.

RGIA has a single passenger terminal, which covers105,300 square feet (9,780 m2) and has a capacityfor 12 million passengers per year. The western sideof the terminal handles international flights whilethe eastern side is for domestic operations. Thereare 46 immigration counters and 96 check-in deskswith 19 kiosks for self check-in. There is a total ofnine gates, seven of which are located on the southside of the terminal and the other two on the northside. Three gates are each equipped with twojetways to accelerate the handling of widebodyaircraft. Public lounge facilities are provided byPlaza Premium Lounge, which operates threelounges in the terminal; there are also three separatelounges for VIPs. The pre-security "airport village"is a meeting point for passenger pick-up.

Phase-2.

In 2009, GHIAL decided to postpone the secondphase due to lower growth in passenger traffic thananticipated. The phase was revived in late 2015, asthe airport is expected to reach its capacity in 2016.The first leg of this phase will bring the capacity to18 million passengers annually, and the second legwill raise it to 20 million. The passenger terminalwill be enlarged with additional security lanes,check-in counters and other facilities, and solarpanels will be built on the roof. Once GHIALreceives approval from the Central Government, itexpects construction on the second phase to take18–20 months.

Phase-3.

The final phase of expansion will increase theterminal capacity to 40 million passengers annually.

.

Objectives KPI's Goals Remarks

AirportOperations

1. Turnaround times in theApron / Gate Area 2 hrs2. Arrival Inbound efficiency 95%3. Departure Outboundefficiency 95%4. Temporal distribution ofdemand by time-of-the-day high5 Total traffic in terms ofaircraft movement 200006. Runway occupancy timeby all type of aircraft

10hrs/day

7. Taxing times fromrunways to apron/gates andvice-versa 30Min8. Baggage delivery time 1hr9. Number of runways andtaxiways simultaneously in use 2

AirportEconomy

1. Airport Income perpassenger

1000Rs

2. Traffic Income perpassenger 300Rs3.Non-aeronautical incomeper passenger 500Rs4. Staff cost per passenger 100Rs5. Revenue per expenditureratio 106. Commercial income persquare meter of floor space 20Rs7. Expenditure per passenger 200Rs

AirportEnvironmentalIssues

1. Energy Consumption 1002. Number of contaminationevents 53. Waste recycling (tons) 10004. Area affected by aircraftnoise 2km5. Number of breaches ofnoise limits None6. Share of Journeys that usepublic transport None

AircraftSafetyandSecurity

1. Number of aircraft safetyincidents 52. Number of incidents atsecurity checkpoints

100PM

3. Time between shut-downand reopening in case ofbreach of security None4. Time it takes to businessoperations to begin in case ofevacuation 1hr5. Taken time and grade ofdestruction when returning tonormality 30%

AirportCustomerService

1. Check-in waiting andprocessing times 3hr2. Security control waitingand processing times 2hr3. Amount and duration ofdelays in getting service 1hr4. Quality of signage / easeto find the way VG5. Baggage waiting time 10M

Table 1 – Objective, KPIs and their GOAL values (data is notional and not actual)




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Objectives

Airport Operations: including all physicalmovements and flows at the airport (Aircraft,passenger, baggage, Cargo, Airlines, OtherAirports, Security, Customs, Fuelling stns, etc)

i. Airport Economy: incorporating costs, incomeand profit.

ii. Airport Environmental Issues: consisting ofnoise considerations, water quality, energyconsumption, etc.

iii. Airport Safety and Security: incorporating bothwork to prevent and handle accidents (safety)and threats originating from humans (security).

iv. Airport Customer Service: collecting variousaspects of passenger satisfaction.

III. ASSESSMENT OF CURRENTSITUATION – SWOT Analysis of RGIA

Most of the Airport Operations Management(AOM) has a set pattern of planning, resourceloading, infrastructure allocation, service delivery,service completion with the same age old traditionalmethods.

Their internal and external operations are conductedin very ritualistic manner. The training andplacements, administration and finance are run bytoo close by the friendly people of the promoters.

The airport activities are planned in such a way thatthey are caught between crossfire of attendingimportant issues first. The thinking to give to thecustomers, their value for money seems to bejustifiable but the manner in which all resources areused for the delivery raises cause of concern. Is thebusiness model used for the delivery outdated, ormay be meant to serve the local market? Does thisrequire better strategy to pool resources to givemaximum value to the customers and at the sametime become more competitive? Does the airportneed to take stalk of their strengths and weaknessesand do SWOT analysis to find where they lie,despite having processes certifications? Are they ina position to exploit the opportunities? Can they dostrategic management periodically to compete withoutside market?

Description: The company faces a growth potential.The market shows growth potential.

This SWOT Analysis of GMR HyderabadInternational Airport provides a strategic SWOTanalysis of the company's businesses andoperations. This free SWOT analysis showsstrengths, weaknesses, opportunities and threats.This SWOT analysis of GMR HyderabadInternational Airport can provide a competitiveadvantage.

This SWOT analysis contains 235 data points.

Strengths-experienced business units-domestic market

-Airport Operation Command and Control

-Airport security

-Passenger and baggage handling

Weaknesses

-productivity-future profitability

-unutilized resources at the airport

-growing competition-tax structure

Opportunities-global markets-growing economy-new acquisitions-growth rates and profitability

Threats-financial capacity-technological problems-increase in labor costs-rising cost of raw materials-tax changes-lower profitability-external business risks-increasing rates of interest




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Financial and Strategic SWOT Analysis provides acomprehensive insight into the company?s history,corporate strategy, business and financial structure,management and operations. The report contains adetailed SWOT analysis, information on thecompany?s products and services, key competitors,as well as detailed financial information.

Data on this page may have come in part, orentirely, from one or more data providers. Pleasecontact us for further information. We are notresponsible for any errors or omissions on this page.This website is for information purposes only.

Continuing and Changed forces for RGIA.

Ser#

Continuing Forces(Strength to Continue)

Changed Forces(Must Change to Succeed)

Remarks

1 Domestic Market Employee productivity

Issue takenup

2Controlling Airport Operations thru AOCC& SOCC Customer Service at the airport

Issue takenup

3 Passenger and Baggage Handling ServicesUn-utilized resources at theairport

Issue takenup

4 Airport Stakeholders relationshipTechnology Enablement to matchcompetition

Issue takenup

5 Airport Security and Safety norms Taxations

6 Car Parking and Pooling System Business Growth and Profitability

7 Ground Handling OperationsRigidity of policies, frameworks &rules

8 Signage and Info-kiosksBroadcasting and public addresssystem

9 Boarding and de-boarding processes Better Subcontracting management

10 Customs and Immigration processes Quality of Infrastructure

11 Check-in and departure controlLack of facilities stump passengers,airlines

12 Data Network and its security Connecting to the city Hyderabad




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We will study in details the first four changedforces from the table. The scope of this case studylimits to the issues arising out of these four changedforces.

IV. STANDARD SAP-LAP FRAMEWORK –For Case Study

The SAP-LAP framework is an innovative andholistic framework for case analysis. Based onSAP-LAP framework, following generic steps canbe used for analyzing any case.

i. Understanding Situation: In this step, we bringout key points of the emerging situation of thecase in terms of historical perspective, externalenvironment, competition, government policies,market condition, organizational performanceand so on.

ii. Major Actors and their Roles: Identification ofkey actors in the case and their roles,relationships, world views and freedom ofchoice are to be summarized. Usually, thisaspect of case analysis is not well addressed inthe traditional case methods.Evolving Process: In this step, we criticallyanalyze the key process(es) evolving in the caseand portray their key issues. The processescould be of any type as discussed previously.

iii. Key Learning Issues: The analysis carried out inSAP framework leads to synthesis in terms ofkey learning issues for the case. These can be oftwo types: (i) generic, and (ii) specific. Thegeneric issues are in terms of lessons learntfrom the case that can be generalized bysynthesizing the lessons from other cases. Thespecific learning issues are linked directly withthe case under consideration and are eitherexpressed in terms of the problem areas or interms of the objectives to be achieved.

iv. Suggested Actions: Based on the specificlearnings of the case, alternatives are to begenerated and evaluated. Based on this, actionsare to be suggested to improve/resolve the caseproblem.

v. Expected Performance: Finally, the impact ofsuggested actions on performance is assessed soas to justify the actions.

The SAP-LAP methodology can be applied for caseanalysis using a variety of quantitative or qualitativetools to give innovative solutions for dynamicorganizations to benefit internally and externally.

SituationsHistorical PerspectiveThe twin cities of Hyderabad and Secunderabadwas linked with other airports in India and abroadthrough the then existing Begumpet Airport servingboth the Domestic and International Airlines.Though the then existing Begumpet airport wasplanned mainly for the domestic sector, it had beensubsequently upgraded to serve the internationalsector.

The Begumpet airport is located in the city center.It, therefore, suffered from a strategic weakness,virtually insurmountable of facing graveinfrastructural constraints to further expansionarising from severe unavailability of unencumberedland, as the existing airport was completelysurrounded by residential and commercialinhabitation leaving almost no room for any furtherexpansion. Inadequate availability of land was asevere constraint in the exploitation of developmentpotential. Further, the expansion of the existingairport would have added to the increased airportrelated traffic, which would have further escalatedthe already existing traffic jam problem at the peakhours and air pollution to vehicular emissions.

As per the preliminary forecast, the traffic waslikely to be 2.27 Million Passengers Per Annum(MPPA) by the year 2006-07. In addition to this,there existed substantial potential for cargo traffic atthe Airport, mainly due to its strategic location. Itwas expected that by 2006 the cargo traffic wouldreach 26,000 Metric Tonnes Per Annum (MTPA)mainly catering to drugs & Pharma, AgriculturalProduce and Hardware.

Hence, to accommodate large size aircrafts andprovide the state-of-the-art facilities for operation ofan international airport meeting internationalstandards, the Andhra Pradesh Governmentproposed development of the international airport atthe outskirts of the congested twin cities ofHyderabad and Secunderabad in the Rangareddy




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district. It was planned that airport once operationalwill replace the existing Begumpet airport atHyderabad, which handled both Domestic andInternational Aircraft operations.

The Ministry of Civil Aviation (‘MoCA’) signedthe Concession Agreement (‘CA’) with aconsortium led by GMR Infrastructure Limited(‘GIL’) in December 2004 to build, operate andmaintain an airport at Hyderabad.GMR HyderabadInternational Airport Limited (‘GHIAL’,’Company’, ’Borrower’) is the SPV for the design,finance, construction, operation, maintenance andmanagement of a new international airport atShamshabad, Hyderabad on Build, Own, Operateand Transfer (‘BOOT’) basis. The concessionperiod is for 30 years, extendable by another 30years at the option of GHIAL.

The international airport is being developed in fourphases, based on traffic trigger principle. Currently,Phase-1 of the airport project (involving Original,Expansion and Additional Works Projects) has beencompleted and further expansion would be based onthe traffic trigger principle. The overall AirportProject can be divided into “Original Project”,“Expansion Project” and the “Additional WorksProject”.1. Original Project- (2005-2008) Initially theairport, which was constructed on a greenfield site(5,450 acres of land, leasehold rights provided byGoAP) at Shamshabad about 22km south of thepresent airport at Begumpet (Hyderabad), wasdesigned to handle a capacity of 7 millionpassengers and 1 lakh tonnes of cargo annually(Original Project). The Original Project achievedfinancial closure in August 2005 with the scheduledcommercial operations date (‘SCOD’) as March,2008.

2. Expansion Project- (2009 till now)However, considering the growth potential with theavailability of low cost air travel, the companyconceived an Expansion Project which included:

Expansion of the terminal capacity to 12million passengers annually,

Development of 13,500 kilo litres of fuelfarm capacity to cater to the fueling requirements ofthe airlines and,

Construction of 308 keys 4 star hotelproperty on a 5-acre land catering to the businesstravel segment under “Novotel” brand (‘AccorGroup’) Notwithstanding the Expansion Project, thescheduled COD of the airport remained unchangedand the airport was inaugurated on 23rd March,2008.

Additional Works Project- Subsequent to thecommencement of the airport operations, GHIALconceived an Additional Works Project whichincluded provisions of retail shops, food court, retailkiosks, business lounges, cargo agents building,CFM Building, enhancement new office building,Kirby shed, Public Transport Centre(PTC) buildingetc. and enhanced security requirements as perguidelines from various regulatory bodies.

Market PotentialThe civil aviation market in India grew rapidly inthe past year. During April-December 1 2015, thethroughput of international and domestic passengersstood at 164 million which is an increase of 17%over the same period in the last financial year. Indiahas a vision of becoming the third largest aviationmarket by 2020. Due to increase in disposableincomes, fall in prices of Aircraft Turbine Fuel(ATF), increase in tourism due to visa reforms andbetter marketing of Brand India, the India aviationmarket is on the upswing.

India is building new airports and expandingexisting ones to meet the growing demand. A slewof new airports are in the anvil to be developed inpublic private partnership(PPP) mode. The conceptof low-cost, no frills airports is taking hold. Thishighlights a mind set change that air travel is not aluxury or elitist product, but a necessity for themasses. Some state governments are offeringviability gap funding(VGF) for airlines or non-scheduled carriers to operate on new routes.

However, there are significant challenges to beovercome. While some Indian air carriers areposting modest profits, this is due to the prevailinglow prices of crude oil. High fuel taxes, rupeedevaluation, high interest rates and competitivefares are some of the headwinds the industry has to




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contend with. Though world class airports havebeen developed by AAI and the private sector, thereare significant challenges related to capacityexpansion of airports, fixation of airport tariffs, landacquisition and various government approvals.Growth of other key areas like air cargo,maintenance, repair and overhaul (MRO), generalaviation (GA) and human resource developmenthave been constrained due to infrastructurallimitations and lack of supportive policies.

Govt. PolicyThe draft National Civil Aviation Policy (NCAP),released in October 2015, has presented manyinteresting proposals to promote growth in theaviation sector, and its vision to enable 300 milliondomestic ticketing by 2022, although ambitious,highlights the hidden potential of the Indianaviation sector.

For super-charging growth in the aviation sector,urgent remedial measures are required. India needsto be promoted as a trade and tourism hub in orderto derive synergistic benefits for the aviationindustry. Leading aviation hubs like USA, EU,UAE, Singapore, China etc have a robust industrial,trading, maritime and tourism ecosystem that bothsupports and benefits from their aviation sector.Close collaboration between the Ministry of CivilAviation (MoCA), related ministries (finance,home, defence, external affairs, commerce andindustry, tourism, environment, HRD etc),regulators and the industry is the need of the hour.

India would need to broaden the base of domesticflyers through greater air connectivity in Tier 2/3cities. Establishment of the Regional ConnectivityFund (RCF), decision on the contentious 5/20 rule,gradual shifting of the Route Dispersal Guidelines(RDG) under the Regional Connectivity Scheme(RCS), opening up of Indian skies and brining inbusiness friendly policies are imperative.

State governments have been persuaded for longregarding the need to reduce sales tax on inputs likeATF. Many have done it, while the larger states areholding back. One option before the government isto add ATF to the list of declared goods with auniform levy of 5% across the country. The states

may be compensated for the revenue loss for 3-5years by way of a special fund created for the same.Whatever the states lose by way of the huge taxrates levied on ATF will be more than made up bythe resultant increase in economic activity, tourismand jobs.

The government and industry need to work togetherto address the various opportunities and challengesin the Indian aviation sector. With the right policiesand a relentless focus on quality, cost andpassengers, India would be well placed to achieveits vision of becoming the third largest aviationmarket by 2020 and the largest by 2030.

CompetitionThe two new international airports could well beanother hare-and-tortoise story. The GMRconsortium-built Rajiv Gandhi International Airport(RGIA) at Hyderabad may have stolen a smallmarch, time-wise, over the Bengaluru counterpartby opening on March 23. However, a launch hiccupapart, it looks like the Bangalore operator will bestealing the thunder eventually at the cash counters

BIA’s promoter consortium Siemens-UniqueZurich-L&T may have hit a gold-mine atDevanahalli, going by just the air traffic numbers,according to what Business Line gathered fromneutral industry-watchers. Airport company BIAL(Bangalore International Airport Ltd) has not sharedany revenue expectations so far.

By BIAL’s reckoning, Bengaluru should be endingthe first year with at least 11 million passengers andgrow at 20 per cent each year. Hyderabad, whichhas seen similar investment of nearly Rs 2,500crore, expects traffic of some 7 million.

This traffic will be the main revenue sourceinitially, and the user fees to be levied on departingpassengers is seen as a major cash cow, apart fromair-side revenues such as landing-parking fees; androyalties from cargo and ground-handling agencies

FIRST TO POST

Bangalore’s attraction for airlines will beundeniably greater than Hyderabad’s, and it couldbreak even in the second year itself, one observer




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said. If HAL airport last year made a turnover of Rs650 crore, BIAL could make at least thrice thatfigure during the first full year. Similar internationalairports break even in seven-eight years. The prime4,000-acre airport land is another golden goose, asland rates have appreciated sharply to a couple ofcrores an acre.

On the flip side, BIAL is straightaway mullinganother expenditure for a second runway andterminal expansion at Rs 2,500 crore. Also, the 40-day delay until May 11 may have meant a revenuedent of around Rs 150 crore a month, the observerreckoned. The Bangalore project was always a tadahead of Hyderabad: re-conceived in the public-private form in 1999; awarded in 2001; its CA(concession agreement) signed in July 2004, fivemonths ahead of Hyderabad.

The two have been neck and neck, paving the sameodds; and completed at the same time at comparablecosts. They even eye the same pie in the sky and onground.

BIAL seeks to handle 420-440 movements a day(HAL is creaking at 350 civilian movements).Growing at 30 per cent annually, Bangalore is set

for 13 million in the second year and 15 million in2012

LUCRATIVE GROWTH

Bangalore’s air traffic started galloping in 2002, buteveryone misread it. It has soared almost five-foldin seven years: from 2.3 million in 2001, to 3.5million in 2002, when the shareholders came on; to5 million (2005) and now 10-11 million (2007).

In fact, Lufthansa Consulting in 2005 had forecast8.7 million traffic for 2010. So much so that BIALhad to insert a Rs 500-crore or 40 per centexpansion midway through the construction. Cargo,too, looks lucratively poised at Bangalore; thepresent movement of 1.25 lakh tonnes at Bangaloreis almost thrice Hyderabad’s 43,000 tonnes.

Indian airports earn 75-80 per cent of their revenuefrom aeronautical business and the rest from non-aero activities, such as duty-free, retail and F&B.This is just the opposite of the European model,after which BIA is fashioned.

ActorsThe new organizational chart at RGIA to cater to the KMS and System Flexibility need..

Figure-1 The actors in the organization




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Figure 2-Pictorial view of the roles and responsibilities of the actors mentioned above are depicted in this diagram .

ProcessesITIL® compatability BMC Remedy Service Desk iscompatible with IT Infrastructure Library (ITIL)guidelines for a consolidated, multichannel interfacethat automates incident, problem, Knowledge,configuration, Asset and change management toenable continuous improvement of IT services atthe airport.

The application provides:

> A single point of contact that consolidates userrequests from multiple sources

> A centralized solution for global, regional, andlocal IT support organizations

> Categorization, routing, tracking, validation withthe customer, and closing of all events

> Enhanced problem management, includingembedded workflow for error control and problemcontrol




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> Support knowledge Management across theservice desk solutions

> Built-ins, automatic customer satisfaction survey

Decades of incorporating layer-upon-layer of pointassets, infrastructure and technology solutions haveresulted in highly complex operations. Airportsplan, develop, market, lease, operate and maintainmulti-faceted facilities, including terminals,runways, taxiways, signage, parking lots, garages,utilities, environmental features and buildings.Operationally, an airport supports a complexprocess spanning multiple organisations,categorised into three major components; departure,transfer and arrival (see Figure 1). Each componentis made up of processes that are shared betweendifferent organisations spanning air traffic control(ATC), ground handling, catering, airlines, variousancillary units and the airport operator itself.

Over the years, airport operators have focused theirtechnology purchases on disparate point solutions,each responding to a single or unique operationalneed. For example, one for baggage handling,

another for flight information display systems(FIDS), and yet another for check-in. It is estimatedthat an airport operation has an average, at least 30disparate systems running concurrently. The resultis an infrastructure that is highly inflexible, complexand difficult to integrate. As passenger numbers,flight frequencies and carrier types continue togrow, older technology models will no longer besustainable.

In such a complex environment it can often bedifficult to adapt to change, whether it’s makingbetter use of assets to serve more customers quicklyor changing processes. To accommodate differenttypes of carriers and satisfy the needs of airlines,service providers and passengers, airport operatorswill be required to apply new and innovativetechnology models. Common Pain PointsBottlenecks can appear at multiple points across theairport. Arrival, departure and transfer processesprovide some of the common chokepoints faced byairlines, service providers and passengers, ashighlighted below:

Table- 2 List of SOP’s in Changed Scenario to meet the stated Objectives




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These are just some of the processes that airportoperators will need to follow in order to positionthemselves above other competing hubs in theregion. While these challenges are significant, theyare not insurmountable given the right vision,roadmap and technology platforms.

Learnings1. Use of Knowledge Management System atevery level of problem solving or interchange ofinformation will help the staff to gain knowledgematurity faster and will result in higher employeeproductivity; raise the quality of service to the endcustomer. This will be best served in changed




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organizational culture, allowing flexibility in alllevel of service delivery. This will also reduce theunutilized resources at the airport and enabletechnology to reap benefit for the airport to gaincompetitiveness.

2. Exchange of information with the worldbody of airport operations management either thruthe International Joint venture partner like Turkeyairport, Kualalumpur airport or thru differentconsortium thru periodic meetings and reviewmeetings. These learning can very well be ploughedback to RGIA. RGIA will then restructure and re-strategize aimed at achieving goals.

Action PlanThe environmental turbulence leads to manychallenges for the organization of any size (Large,Medium, Small). These challenges could be due tocompetitiveness, new product requirements, bettercustomer service, better employee productivity etc.In order to be able to respond to such challengesorganizations must be awake and with the leastbaggage. Generally larger organizations are foundto be more lethargic than medium size and smallsize (MSE) organizations. Because MSE canrespond fast and make changes to provide bettersolutions to such problems. However largerorganizations have much depth to procuretechnologies and buy COTS products for thesolutions.

The solution framework for the environmentalturbulence, capture and analysis has been givenbelow in figure 8.

Many factors influence operational excellenceand organizational flexibility

Figure 3. The solution framework for environmental turbulenceto the organizations (Large, Medium, Small)

After careful assessment of the environmentalturbulence, the organization decides which flexibleform it should attain to result in enhanced valuegeneration. The organizational flexibility formdepends on the challenges turbulence brings to theorganization. The following table explains all thefour types of organizational design.

From the process table it is clear that the RGIAairport needs two new processes namely Creationand updating of Knowledge based system to queryanytime for problem resolution at the airport. Thesecond one is the creating and updating of adashboard system to reflect the performance ofvarious KPIs against it’s goal. Once these twoprocesses are online then searching for knowledgein case of a situation becomes easy to refer fromKnowledge based system.

Creating and updating the Knowledge basedsystem.The methods presented in this paper consist of threemain parts, integrated into an overall data analysis,knowledge engineering and intelligent decisionsupport scheme or inference engine.

Firstly, the Data Analysis component includes a setof explorative statistical analysis methods from thefamily of multidimensional factor analysis(Benzecri, 1992) and is aimed at the identificationof multivariate nonlinear relations among variables,the decomposition of complex phenomena intofactors and the identification of population clustersand their distinctive characteristics (Greenacre,2007). Secondly, the Neural Network component is




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trained to generalize the classification of cases intoknown classes, so that an intelligent decision can betaken automatically about a new unknown casebased on the acquired knowledge (Morajda, 2003).The Knowledge Modeling part supports the abilityto express the results of data analysis in a machineunderstandable form and to handle them in aKnowledge-Based System (KBS) (Schreiber,108George Stalidis et al. / Procedia - Social andBehavioral Sciences 175 ( 2015 ) 106 – 1132008).

These three parts consist a Tourist MarketingDecision Support system (TDSS) based onknowledge extraction and engineering. The overallscheme is illustrated in Figure 4.

Fig. 4. The overall data analysis, knowledgeengineering and decision support scheme

The Data Analysis component plays the role ofknowledge extraction, it is addressed to the Analyst,who is responsible for acquiring the survey data,performing specialized explorative analysis andproviding the results, initially in standard humanunderstandable form. The data analysis isperformed using explorative factor analysismethods and in particular a combination of MultipleCorrespondence Analysis (MCA) and HierarchicalClustering (CAH) (Benzecri, 1992). The specificmethods were selected as particularly suitable forrevealing underlying patterns, such as customerprofiles, market segments and product features thatmatch specific demand and at the same timeperform well with the relatively small datasets thatare typically acquired from questionnaire-basedsurveys.

The most critical element in the KnowledgeEngineering part is the Knowledge Model (KM),that is to define the knowledge structure,terminology and formalism, so that the model isable to express in an effective way the entire logicand content (both background and domainknowledge) that is sufficient for problem solving byan intelligent engine (Guarino, 1995). The KM isimplemented within a Knowledge Base, which isthe container of the produced knowledge and theoperational component used to maintain andretrieve it.

Another important element in the proposed schemeis knowledge elicitation which is performed byhuman experts with experience in analysis andinvolves the interpretation of analysis results, theselection of those findings that are useful fordecision support and rejection of those that are notmeaningful, as well as the process of transferringthese findings to the rule syntax defined by the KM.A component for classification and patternrecognition based on neural networks (NN) hasbeen developed and linked with the data analysiscomponent. The aim was to automatically classifyunknown cases under study, such as visitors orservices, for which analysis has not been performed,into groups/patterns, based on the mapping thatresulted for similar cases from the data analysis.This process would be typically performed by anexperienced analyst using classification methodsfrom the same family as the clustering and factoranalysis methods mentioned above. In order toautomate this process, we take advantage of theability of NNs to be trained on a limited training setand then generalize the knowledge to respond tosimilar but unknown problems (Simpson, 1990). Inthis project, a Back-propagation NN (Chen, 1994)was trained to classify visitors according to theirimage attributes to representative types of visitorsthat have been discovered during the data analysisprocess. The Decision Support or inference enginecomponent is addressed to the marketer/managerand consists of a user interface that receives andresponds to queries and an inference engine, whichis able to use the accumulated knowledge and inputparameters, to run logical rules and to answer high-level questions on marketing planning issues.




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Writing data into Knowledge Based system usingNeural NetworksThe use of Neural Networks in artificial intelligencehas a history of several decades (Rosenblat, 1958).Passing through phases of enthusiasm,disillusionment and maturity, Neural Networktechnology has proved its ability as a knowledgeextraction and representation tool in a wide range offields, including business intelligence (Lisboa,2001), economics (Morajda, 2003) and biomedicalengineering (Strintzis, 1992). Neural Networks arebased on the concept of imitating the function of thehuman brain, offering features such asgeneralization from samples and supervised orunsupervised training. In practice they are non-linear statistical data modeling or decision makingtools that can be used to model complexrelationships between inputs and outputs withoutthe need to explain the underlying phenomena(Simpson, 1990). NNs are applicable to almost allproblems where the goal is to represent a relationbetween predictor variables (independent or inputvariables) and predicted variables (dependent oroutput variables), especially when this relation istoo complex to be considered as association orclustering. NNs are able to learn through examplesand to model non-linear relations among multiplevariables, without nevertheless providing anyexplanation or human understandable rules. For thisreason, they do not seem useful as analysis toolsand are unable to contribute to theory generation,however they are successful in automatic decisionmaking and non-linear classification.

Analysis of survey data and knowledgeelicitationThe input data for this study were collected througha primary survey launched in the city of Hyderabad.The instrument was a 3-page structuredquestionnaire containing 43 questions, organized in8 sections, including questions regarding thevisitor’s familiarity with the destination, his generalsatisfaction and future stance, the reasons forchoosing this destination and factors influencingthis decision, a number of attributes related to theperceived image of the city and the country, as wellas personal/demographic information. The aim of

the survey was to collect information on theperceived image of the city of Hyderabad, asobtained by visitors during their visit, to study theirexpectations and decision factors and to analyze thefactors contributing to their needs and satisfaction.

Creating and updating the airport dashboardSystem.Entire airport operations are controlled by AOCC(Airport Operations Command Center), andSecurity by SOCC (Security Operations Commandand Center). The AOCC control all the resourcesdeployed at the airport and in case of any problemdispatch the problem to the right team to providesolutions to it. In case of any emergency at theairport it readies the emergency alert team. Theemergency team swings into action with the help ofdelivery team that handles the emergency within itsresponse time and provide a temporary solution tofix the problem. Later on the temporary fix isadequately tested and closed. Likewise the SOCChandles all security related incidents at the airportand dispatch the problem to the right delivery team.All these actions are monitored thru the big screendisplay in AOCC. This displays can be printed andreported as the status report. This Big TV displayalso project incident details along with all timelinesin a graph form for status reporting. All these statusreport can be consolidated as Dashboard clickabledisplays for senior management review. This alsogives the management a what-if scenario to becreated and used for decision support.

Figure 5 – Dashboard to present status on KPIs




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Continuous improvement and alignment ofcommon vision in the organization

The case study addresses following change forces tomeet the environmental turbulence(Competitiveness).

1. Employee productivity

2. Quality of customer service

3. Unutilized resources at the airport

4. Technology enablement to match competition

The best organizational form, (Flexible Form) tomeet the organizational challenges is established bythe top management with the help of InternationalJoint Venture Partner (IJVP). The changedmanagement structure and the new strategy aremade operational to meet the organizational goals.

With the extensive use of the AI (ArtificialIntelligence) based knowledge management systemalmost in all processes are the key point to beconsidered as a future airport solution to take careof the above problems (refer standard operatingprocesses SOPs table). The SOPs discussed in thistable are linked to the solution of the case studyproblems that we want to solve. Two new SOPshave been added. First is the use of new integratedexecutive dashboard system and the second istightly integrated knowledge management tool. Theflexibility with which the actors will have to changethe execution of the process is a bit burden on theactors but once their knowledge maturity grows theresults will start coming in.

Few actors have been added to the existing list ofactors, namely the knowledge engineer, knowledgeanalyst and the knowledge manager. The newoperation cycle as given in the following table isexecuted daily. The airport operations as per theSOPs are to be performed by all actors posted at theairport.

Once the daily major operations are over aconsolidation of KPIs measured are reported to themanagement team at the airport. The commentsmade by the management team are noted and passedon to the senior management team who notes theperformance and take note of the current situations

at the airport as well as the future need that willrequire internal changes to be made. All thesenoting and the new orders are taken up by theplanning and preparation department andappropriate changes are made in SOPs, resourceallocations etc. For new changes, the changemanagement team is informed for action. Once thesuggested changes are done the KPI goals areachieved and the business problems are solved.

Figure 6: Airport Operations Management Cycle.

Performance

The airport performance before this action planapplied for the issues selected for changes in thiscase study namely,

1. Employee productivity

2. Quality of customer service

3. Unutilized resources at the airport

4. Technology enablement to match competition

5.

And after the action plan applied must havesignificant improvement which are measuredthrough the KPIs when the affected processes areexecuted before and after the action plan applied.




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Objectives KPI's

Actual beforeAction PlanExecuted

Actual AfterAction PlanExecuted Remarks

Airport Operations

1. Turnaround times in the Apron / GateArea 2 hrs

1.5Hr

2. Arrival Inbound efficiency 80% 95%

3. Departure Outbound efficiency 80%

95%

4. Temporal distribution of demand bytime-of-the-day high

High

5 Total traffic in terms of aircraftmovement 20000

30000

6. Runway occupancy time by type ofaircraft 10 hrs/day

15 Hrs/day

7. Baggage delivery time 1hr 0.5hr

Airport Economy

1. Income per passenger 1000 Rs 5000Rs

2. Traffic Income per passenger 300Rs

1500Rs

3.Non-aeronautical income perpassenger 500Rs

5000Rs

4. Staff cost per passenger 100Rs 80Rs

5. Revenue per expenditure ratio 10

20

6. Commercial income per square meterof floor space 20Rs

100Rs

7. Expenditure per passenger 200Rs 100Rs

Airport CustomerService

1 SLA met 70% 100%

2. Check-in waiting and processingtimes 1hr

0.5hr

3.Security control waiting andprocessing times 30M

10M

4. Amount and duration of delays ingetting service 10M

NIL

5. Quality of signage / ease to find theway VG

Excellent

6. Baggage waiting time 10M 5M




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KM and KMS metrics in practiceKM MetricsMost practice metrics of KM initiatives focus onmeasuring knowledge assets or intellectual capital(IC) of a firm, assuming the outcome of a KMinitiative being its impact on IC. Majority ofrespondents of practice surveys think that IC shouldbe reported and knowledge measurement wouldimprove performance [9]. Even the process ofmeasuring IC is considered important whether as aninternal management tool or for externalcommunication on financial balance sheets.

Three general purpose approaches to measuring theimpact of KM initiatives include House of Quality(Quality Function Deployment or QFD), Balanced

Scorecard, and American Productivity Center(APQC) benchmarking approach [48]. The Houseof Quality [26] method involves the development ofa metrics matrix (house). The desirable outcomes ofKM initiatives are listed on the left wall of thehouse, the roof consists of the performance metrics,the right wall consists of the weights (relativeimportance of the outcomes), and the base of thehouse consists of targets, priorities, and benchmarkvalues. By looking at the correlations within thebody of the matrix, management can decide to focuson those areas of KM that are most likely to affectoverall firm performance. A number of softwaretools such as QFD designer are available toautomate the analysis process.

S.No Impact ofParameters

Performance Criteria Sample data collected

1 Overall KMInitiative

KM Effectiveness (Organizationalperformance impact)

185 practitioners fromdiscussion forums

2 KM Initiatives Organization performance,Customer Satisfaction, ROI, Shareholder value, reduced duplicationof effort, Employee satisfaction

Data can be surveyed atthe airport.

3. Knowledgecreation

Economic benefit:-Worker Competence, (HumanCapital)Organization core competency,Task completion time and cost

Data can be surveyed atthe airport.

4. Knowledgeinternalization,externalization,combination,socialization + allKM tools use.

KM satisfaction (availability,effectiveness of knowledge, KM attask directorate, acrossorganization, knowledge sharing.)

Kennedy Space Center,159 employees from 8sub-units.

5. KM capability,Knowledgeinfrastructure,Knowledgeprocess

Organization effectiveness,Innovation and commercialization,Coordination of units,Anticipate and identifyopportunities, Speed and adaptionto market, Avoid redundancy andstreamline.

Table 4. Selected studies on organizational level KM evaluation




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V. CONCLUSION

In the dynamic organization the traditional style ofmanagement may dry out the profitability of theorganization and may lead to catastrophe. Theanalysis of the problem using SAP-LAPmethodology brings us the reasons behind theproblem. We either change the existing practices orbring in the new set of practices using modern toolsand technologies like KMS and system flexibility,

to revitalize the dynamic organization. Theperformance goals are exceeded if not met in mostof the cases due to the knowledge maturity theKMS system brings in into the system. Systemflexibility brings in faster adaptability to respond tothe changing market and customer choices.Therefore this paper finds acceptability and rationalto bring in suitable changes which results inachieving set goals in the dynamic organizations

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