Oracle Press Release

New Oracle Report Shows that Airlines are Collecting Data at Unprecedented Rates, but are Falling Short on Turning Data into Revenue

Airline Executives Indicate They May Be Losing On Average an Incremental 17 Percent of Revenue per Year by Not Fully Leveraging Collected Information

Redwood Shores, Calif. – July 17, 2012

News Facts

Today Oracle announced the results of its “From Overload to Impact: An Industry Scorecard on Big Data Business Challenges” report, which surveyed 333 U.S. and Canadian C-level executives from the airline industry and 10 other industries to determine the pain points they face regarding managing the deluge of data coming into their organizations and how well they are using that information to drive profit and growth.

Overall Key Findings

data deluge is here.
Ninety-three percent of C-level airline industry executives surveyed say their organization is collecting and managing more business information today than two years ago, by an average of 58 percent more.
For all industries collectively, 94 percent of the C-level executives say their organization is collecting and managing more business information today than two years ago, by an average of 86 percent more. Executives note they see the biggest data growth areas coming from customer information (48 percent), operations (34 percent) and sales and marketing (33 percent).
for improvement. Airline industry executives say they are not prepared to handle the increasing amount of data they face.
Thirty-one percent of airline executives surveyed give their organization a “D” or “F” in preparedness to manage the data deluge. Only 3 percent give their organization an “A.”
Respondents say they are unable to realize, on average, 17 percent of additional revenue per year, translating to an average of $134.3 million per year (Figure based on the average revenue of organizations surveyed) – by not being able to fully leverage the information they collect.
For all industries collectively, the study found that 29 percent of executives give their organization a “D” or “F” in preparedness to manage the data deluge and 93 percent believe their organization is losing revenue opportunities – representing on average, 14 percent of revenue per year. On average, private-sector organizations with revenues of $1 billion or more say they are losing approximately 13 percent of their annual revenue as a result of not being able to fully leverage their information.  That translates to $130 million each year for a $1 billion organization.  Only 8 percent of executives in the broader study give their organization an “A” in preparedness.
do not have or cannot get to the timely information they need. Airline executives are frustrated with their organization’s data gathering and distribution capabilities.
Specifically, 43 percent note they do not have the right systems in place to gather the information they need, 43 percent say the information is no longer timely when it gets to their business managers and 30 percent cannot give their business managers access to the information they need, instead having to rely on IT.
applications are important.
Seventy-three percent of airline industry organizations surveyed use industry-specific applications or software to help leverage information to make strategic decisions.
Airline executives, however, still see room for improvement in their industry-specific applications, with 33 percent of executives looking for more industry-specific project management applications, 33 percent seeking more industry-specific customer relationship management systems and 23 percent seeking financial management platforms more specific to their industry needs.
is hard at work in some areas.
When asked in what areas they make the best use of data to drive the business forward, 67 percent of airline executives say in flight operations, 40 percent say in sales, marketing and reservations and 40 percent say in pricing and revenue management.
are they challenged?
Only 3 percent of airline executives say their company has a single 360-degree view of their customers, while 53 percent say they have multiple views that they are integrating together effectively.
With regard to their ability to effectively acquire, store, analyze and drive decisions based on customer information, airline executives note the biggest challenges include consolidating customer information across multiple data repositories (37 percent) and leveraging customer information to create tailored new offers across channels and customer touch points (37 percent).
a path forward. Airline industry respondents note their organizations must improve information optimization.
Top priorities include adding skilled business analysts to help manage the volume of information (47 percent), providing direct access for business managers to business critical information (43 percent) and improving training to help make better sense of information (43 percent).
access the full report – which delves extensively into how prepared organizations within each industry are for the data deluge and the resources they need to enhance their ability to leverage incoming data – visit here.

Supporting Quotes

“Over the years, the air transport industry has set the benchmark in processing large volumes of data from bookings to operations to drive complex revenue management and scheduling optimization models. Airlines have done very well in effectively using data in areas, such as capacity planning and flight operations, however, customer (passenger) related data management remains a challenge. This report highlights the challenges airlines face in consolidating and analyzing structured and unstructured data resident in multiple repositories. In particular, a key challenge is managing transactional customer (passenger) data that resides in multiple data repositories because of the dramatic increase in customer touch points (traditional, Web/portal, kiosks, social and mobile applications). Airlines are seeking industry-specific applications and solutions that will help them gain a 360-degree view of their customers, personalize and differentiate the customer experience, and effectively manage sales and marketing campaigns,” said Vijay Anand, Senior Director and Global Lead, Travel and Transportation Industries, Oracle Corporation.

Supporting Resources

About Oracle

Oracle engineers hardware and software to work together in the cloud and in your data center.  For more information about Oracle (NASDAQ:ORCL), visit www.oracle.com.

About Oracle in Industries

Oracle industry solutions leverage the company’s best-in-class portfolio of products to address complex business processes relevant to the travel and transportation industry, helping speed time to market, reduce costs, and gain a competitive edge.

Trademarks

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

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Contacts

Carla Foster

Oracle

+1.650.867.7012

carla.croghan@oracle.com

Mary Tobin

O’Keeffe & Company

+1.503.658.7396

mtobin@okco.com

Supporting Resources

About Oracle

Oracle engineers hardware and software to work together in the cloud and in your data center.  For more information about Oracle (NASDAQ:ORCL), visit www.oracle.com.

About Oracle in Industries

Oracle industry solutions leverage the company’s best-in-class portfolio of products to address complex business processes relevant to the travel and transportation industry, helping speed time to market, reduce costs, and gain a competitive edge.

Trademarks

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

    # # #

Contacts

Carla Foster Mary Tobin

Oracle O’Keeffe & Company

+1.650.867.7012 +1.503.658.7396

carla.croghan@oracle.com mtobin@okco.com