Aeroflot selected the consultant for preparation of new IT strategy

2017

Aeroflot found the consultant for preparation of new IT strategy. The "Beyn Enda Company Russia" company (Bain & Company Russia) became it. Information on the corresponding purchase was published on March 14, 2017. The cost of the contract was 75 million rubles.^[1]

Aeroflot selected the consultant for preparation of new IT strategy

Within the project the contractor will have to create the purposes of information technology development in the largest Russian airline and to update an operational model of work of IT. In particular, it will be necessary to analyze decision making process on the key questions connected with IT, to estimate efficiency and speed of project implementation, to make recommendations about improvement of an organization structure of IT function and so forth.

Besides, consultants of Bain & Company Russia will have to create target model of architecture of IT, to estimate effective management of costs for IT and also to develop the road map of information technology development for a period of 3 years.

As a result of the carried-out work MS PowerPoint presentations with the corresponding recommendations and plans should be prepared. All this should be made by April 15, 2017.

Bain & Company wins first place in the world ranking of consulting companies 2017 of Vault Consulting 50. In 2016 this company was selected by Aeroflot for development strategiibig Data. Before there was a cooperation on the project of creation of regional airline based on Rossiya Airlines and also in development of the main directions of marketing policy.

In 2013 the Deputy CEO of Aeroflot for information technologies Kirill Bogdanov told TAdviser about previous the IT strategy of airline. Then one of key points of strategy was creation of the uniform IT platform based on SAP solutions. The IT strategy of the Aeroflot group also included creation of a single platform of registration on all network of routes and a single platform of armoring and sale of tickets based on the solution Sabre.

2016

Attempt No. 2

Contractor Selection

Aeroflot from the second attempt found the contractor for development of the business strategy of development of digital technologies in the company. In the project documentation it is explained that "digital technologies" are meant as "technologies of processing and the analysis of the structured and unstructured these large volumes" here.

The corresponding request for proposals for the choice of the contractor was published^[2] of August, 2016. As well as in the first request published in June, the maximum price of the supplier contract was designated in 155 million rubles.

At repeated placement of purchase there were persons interested to fight for the contract. Applications for participation were submitted by Bain & Company Russia companies, subsidiary of Deloitte & Touche - "Deloitte & Touche Ridzhinal Consulting Servisis Limited" (is based on Cyprus) and SPC Businessavtomatika. The request of the selection stage, last at carrying out, was rejected as non-compliant to the requirements of documentation on purchase.

Bain & Company Russia was recognized the winner. The price at which with it the contract will be signed not to be specified in the protocol of a tender committee.

Bain & Company wins first place in the world ranking of consulting companies 2017 of Vault Consulting 50. The company not for the first time cooperates with Aeroflot. In February, 2016, for example, Aeroflot signed with it the contract for rendering consulting services on creation of regional airline based on Rossiya Airlines, the second in value airline of the Russian Federation. In 2014 to year Bain & Company Russia won tender of Aeroflot on rendering consulting services on development of the main directions of marketing policy of group till 2020.

Changes in documentation to purchase

At repeated placement of purchase Aeroflot did not introduce significant changes to a technical part of the draft - there some formulations are only specified. More significant changes contained regarding requirements in potential contractors. The airline moved away some of them, having added new. The requirement that not less than 80% of total sales of the procurement participant annually within the last three years were the share of rendering consulting services in questions of a business activity and management disappeared, for example.

Also Aeroflot removed the requirement to confirm that the participant rendered services of consulting in the field of improvement of client experience for large world traditional airlines earlier.

Aeroflot is going to use as much as possible Big Data technologies for interaction with passengers

As well as earlier, at requirements there was a confirmation of experience of development and strategy implementation, process optimization and increase in efficiency within the last three years for the Russian airlines. At the same time, in documentation to new request for proposals Aeroflot specifies that it should be the airlines providing sales of tickets through own digital channels - on the website and in proprietary mobile application of airline and also the performing communications through social networks. The last should be confirmed by presence at airline of at least one active account in Facebook, VKontakte, Twitter or Instagram.

At assessment of proposals of participants Aeroflot considered, including, their goodwill as the strategic consultant. That to confirm it, it was necessary for the contractor together with a portfolio about activity to provide "screenshots from the website" of the international rating of konsalter of The Vault Consulting 50 for 2014, 2015 and 2016.

This point was present also at June purchase of Aeroflot, however in repeated request for proposals the airline puts the compulsory provision presence of the procurement participant in the rating of The Vault Consulting 50 for 2016.

Attempt No. 1 - Failure

Aeroflot could not find the contractor for rendering consulting services in development of the business strategy of development of digital technologies.^[3] the airline summed up the results of the corresponding request for proposals at the end of July, 2016.

Follows from the published protocols that initially the results of a request were going to be summed up on July 19, however by that moment to the company any offer did not arrive. Aeroflot decided to prolong acceptance of requests and transferred summing up, however and to new term requests did not arrive. After that the company published failure from request for proposals. The company could not answer TAdviser whether are going to carry out this purchase repeatedly later.

The airline announced request for proposals at the end of June, 2016. The maximum price which Aeroflot was ready to pay for services is 155 million rubles.

Scope of work

Before development of strategy it is necessary to carry out the assessment of a current status of their development in the company and also computer and mobile technologies in general. It is necessary to estimate also as far as technologies of processing and the analysis of Big Data are now applied to interaction with passengers in all contact points - to, at time and after the aviatravel and to reveal potential points of interaction on the basis of the analysis of similar practice in other airlines and perspective in terms of development of the aviaindustry in general.

After that the business strategy of development for technologies of processing and the analysis of Big Data in Aeroflot calculated on three years should be developed. Works included development of "a digital way" of the passenger for improvement of digital interaction of Aeroflot with them and formation of the list of potential initiatives and also assessment of necessary level of investments into the innovative technologies.

On the basis of strategy the contractor should create "road map" of development of these technologies, including the plan with the description of initiatives, their purposes, the neobkhody budget, the main actions, terms and persons, responsible for implementation. On the basis of the most priority initiatives - to carry out three pilot projects for which the contractor will develop detailed plans.

Technologies of processing and the analysis of Big Data are already used in Aeroflot. So, in March, 2016 the company announced implementation of analytical technologies of IBM, including the solutions BigInsights and SPSS[[IBM SPSS Decision Management|]] better to study preferences of clients and their behavior at purchase commission, to make interaction with it more personified, address.

Until the end of 2016 Aeroflot is going to develop and implement an automated system of complex market research based on analytical technologies of IBM which will issue to carrier of the recommendation how to increase the cost of rates when preserving volume of armorings. In June, 2016 the airline announced the corresponding request for proposals with the starting price of 252 million rubles.

Notes