BA steps up IT initiative

Airline board set to approve a major overhaul of firm's back-end systems

Focus turns to back-office systems

BA’s board is expected to approve an IT project within the next few weeks intended to simplify complex back-office systems and reduce costs.

Although the airline will not reveal any cost reduction targets until its business plan is published in February, the initiative will be one of chief information officer Paul Coby’s key priorities in the next few years if approved.

The project will touch on nearly all aspects of the business, from allowing passengers to pay for excess baggage online to delivering payslips electronically to all of BA’s employees.

‘We have all the great things coming in on BA.com, but the other thing is the simplification of the business on the back-end,’ Coby told Computing.

‘But if we want to make this easier, then we have to simplify the proposition. We couldn’t do the online booking system we did without simplifying our fare structure,’ he said.

Earlier this year, BA revealed how technology has been used to save more than £134m since 2002, helping transform it from a struggling business into one of the world’s most profitable airlines (Computing, 19 May).

A key component of this work was its Customer-enabled BA project, which transformed the airline’s front-end web site into an ever-expanding travel portal, while also cutting millions of pounds in costs.

Coby now plans to do a similar transformation on the company’s back-end systems, covering finance, human resources and other business units.

‘And the good news is that that’s exactly where we want the business to go: it’s simplifying and taking costs out,’ he said.

Coby says that stiff competition in the airline industry, coupled with the introduction of new business models, has made the ability to rapidly respond to new challenges vital.

‘As we develop the concept, it can be a source of considerable advantage, because it’s about being agile and quick. Being locked into legacy systems and processes really slows you down,’ he said.

Coby says that new BA chief executive Willie Walsh is a strong advocate of what technology can do for the business.

‘He absolutely understands the power and magic of IT in helping to cut costs and delight our customers,’ he said.