What IT does implement Transaero? Interview with Sergey Gavrenkov

TAdviser: Sergey Anatolyevich, whether there is at Transaero an IT strategy and if yes, that what its main points?

Sergey Gavrenkov: IT strategy at Transaero airline, of course, exists. It consists of two main parts. One part is trends which we see and to which we react now – permanent transformation of business and business process optimization of the company for the purpose of obtaining competitive advantages. The second part – forecast. It is based on our vision of the market, requirements analysis and requests of clients. It defines flexibility of our strategy. The IT strategy of Transaero is expected term approximately in 5 years, but in it the forecast component which shows us more remote perspective – up to 10 years is put.

The strategy implemented now was created this year. At the same time it is exposed every year to updating, but one of its basic principles – ensuring the maximum transparency of business management for company management – remains invariable.

TAdviser: What software solutions are used in Transaero?

Sergey Gavrenkov: All our systems can be separated into two big blocks conditionally: production and financial and commercial and accounting. As for main systems of the first block, for example, the Amos system intended for operational and high-quality service of aircrafts which allows is used here, including, to solve geographically distributed logistic problems. We use the LHS system consisting of several modules and allowing to plan schedules of flights, crews, and a number of other production tasks.

Regarding the financial accounting systems we use the ERP systemof MS Dynamics AX in which work accounting, financial, commercial departments, personnel, production. We use it for a long time, and now began the project on transition to the new version.

In 2013 we completed system implementation of analytics which is integrated with all databases of airline. We created the full-fledged platform, including mobile thanks to which the management has a tool allowing to see objective data and to manage the enterprise practically worldwide now. A system allows to obtain any data instantly: it is enough to tell that on any to one or several parameters, on all runs or personnel of airline, creation of the required report takes no more than 5 seconds.

As for other applications, we use several years EDMS based on DocsVision and systematically we reduce number of the paper documents which are especially created in the company.

TAdviser: What key projects did you implement in 2012?

Sergey Gavrenkov: The whole 2012 passed at us under the flag of virtualization. We virtualized all server framework of airline, and now we replace normal jobs of users with virtual. Now there is the second part of this very big project. More than 700 jobs are at the moment virtualized, and in total they will be several thousands. It is necessary to consider here and that all our crews should have virtual work places to which access from their mobile devices is organized.

I will note that on completion of virtualization of all jobs we have no specific terms. As in airlines enough jobs, and part of them - the thin clients who were initially working with terminal servers, and a part - normal PCs and notebooks, are not present economic feasibility all this sharply to stop operating. We give the chance to use a virtual work place depending on the rights, powers and needs of its owner, but to take and replace all at once, making large sums, it is represented to us inexpedient. Therefore as soon as we have a need for a new workplace, or the existing workplace ceases to satisfy to tasks of the specific user, his replacement taking into account technology of virtualization is made at once.

It is possible to refer to achievements of 2012 also full-scale penetration of the financial accounting system, the ERP system of the company and also one more interesting project - the maximum automation of the entering finance documents. We created at ourselves the unique solution which allowed to reduce much number of people and time, these documents, necessary for analysis, for decision making according to them and as a result - for payment.

We made it in cooperation with ABBYY company on the basis of their product. We carried out long joint work which demanded great efforts on both sides, and received the solution unique for the Russian market. It automates electronic recognition of accounts, invoices, delivery notes and other documents, allowing to create automatically of these accounts the register of payments, etc. There is a multistage system of check, control, and as a result it allows to control the fact of payment of these accounts, to conduct check under agreements, the amounts, terms.

TAdviser: What main IT projects are kept in Transaero now?

Sergey Gavrenkov: Now we conduct preparation for full-scale implementation of the CRM system - it is one of our priorities. We made the decision for different divisions of the company to use different solutions, but not some one global. Certainly, we could create the system of general use which can help to manage all is, probably, one of trends of IT, however it is necessary to understand that systems focused on the solution of a number of specialized tasks often are much more effective.

It is necessary to tell that we already use an internal CRM system which was initially developed outside the company, but within several years underwent deep upgrade. We use it, mainly, for work with customer appeals and for program management of often flying passengers. We will continue to use this system along with the third-party systems until when they are implemented. I think that within a year we will unroll them.

The new systems will be integrated with call center of the company, they will be used for service functions at all stages of customer service - from the moment of its address via the website and up to service functions of passengers even onboard the aircraft.

Also we actively conduct development of automatic system of accounting of income. It is own development and rather difficult complex task. A system allows to remove one of components of cost value of air transportation, allows to reduce air transportation cost because in comparison with the work performed by the person it is more productive, more exact, more reliable and more quickly provides required data. Really, this unique solution which are not in the market. It is developed by us from scratch and is our know-how.

In addition, we work on an expense accounting system of the company. It too quite difficult technological solution which implementation demanded, including, and accomplishment of research works.

TAdviser: Why you develop some systems, but do not use ready-made third-party solutions?

Sergey Gavrenkov: The main sense of IT at this stage of development and as it is seen by me, consists in ensuring competitive advantage and when it is possible to use a ready-made product to get competitive advantage, it is often reasonable and to do. But it is impossible to forget that the ready-made product can be, first, not only at us some, some number of the companies can have it still, and knowing its functionality, knowing its restrictions and opportunities, we can understand, it satisfies us or not. Those systems which are now developed in our company have no analogs in the market.

TAdviser: The main applications which are used in the company are hosted in its own or in third-party DPC?

Sergey Gavrenkov: As the IT is not core business for Transaero airline, is uninteresting to us and, moreover, at this stage of development, is already inexpedient to be engaged in the hardware. We consider that much more profitable and more effectively to charge such things to the specialized outsourcing IT companies. Historically we had own server rooms, but at a certain stage of development of the company, growth of scales of business strategic decision was made that we should not be engaged in what for us is not profile and interesting.

We use services of DPCs of several partners and are very happy with that level of fault tolerance which they provide.

It is possible to go, of course, on other way - to build a large number of DPCs through the whole country, to pull to them mad quantity of wires, to form the whole technical teams, constructions and by that to increase cost value of air transportation. And it is possible to use full solutions which were created by the specialized companies, and it is their business. The number of the IT staff in Transaero - 50 people and it is lucid minds – people capable to change business, to move it forward.

TAdviser: Some companies do not hurry to pass into clouds because of the concerns connected with information security.

Sergey Gavrenkov: Airlines is rather started business, almost any information on them you can obtain from a set of sources. By and large, something like that what we would like to hide and close behind seven printings is absent. Our schedule is known, rates are available.

Besides – cloud computing is the future which already came. It is possible to be afraid of the future, it is possible to try to escape from it, but I do not think that it should be done to those who aims to live and develop up to date and even to advance it, showing a way to others.

TAdviser: 50 people in IT staff of Transaero what specialists are?

Sergey Gavrenkov: At the moment we do not conduct development using forces of the third-party companies therefore the main part of the state is made by developers and analysts. Developers in this case are understood as both architects, and programmers, etc. Is, of course, and a service part of IT, but it is small. The accumulated experience and knowledge even more often begin to play a role of certain directors of tasks for specialized IT. We transform business, we do it better.

TAdviser: So the main part of the IT state is occupied with development of own solutions for airline?

Sergey Gavrenkov: As the IT is the after all not main profile of our activity, not those services which we render to the end customer, certainly, the orientation of IT at us is concentrated on development of own solutions and the ideas, own know-how. Otherwise, we would turn into one of very many airlines which just go an extensive way and increase number, increase amount of technologies. We do not want to go such way. For us the IT is, first of all, means, but not the service or providing functions which faded into the background for a long time.

TAdviser: What solutions are used for electronic business of airline?

Sergey Gavrenkov: In this part 2013 for us is sign. We started a number of serious projects among which creation of the new website which should earn at the beginning of the next year. It will be the project, really unique for the Russian market.

In 2013 Transaero also began upgrade of the program of often flying passengers, programs of mobile work of the client with our services: in particular, a number of the solutions directed to giving to clients more opportunities and conveniences, in comparison with what is in the market is actively developed now. The majority of the applications existing now, not only ours and practically all airlines, are strongly limited in respect of functionality.

TAdviser: Now you have one mobile application?

Sergey Gavrenkov: If we speak about applications for the customer service delivery, then - yes, we have actually one multi-platform application. I consider that you should not load the client existence sets of the applications connected with Transaero airline. We want to give it a certain uniform point of entry, whether it be the website or mobile application using which he will be able to receive all that set of services which are necessary to it.