Times are changing in the airline industry and British Airways (BA) is at the forefront of innovation with Offer & Order Management. With an investment of £750 million, BA is taking flight and carrying out the most significant IT transformation in its history. And Branchspace is part of it.
This overhaul is designed to modernise every layer of their technology stack, from the user-facing website and mobile app to the middleware and backend systems. BA is moving away from the traditional patch-and-fix approach, opting for a complete rethinking of their IT infrastructure instead.
The shift includes adopting cloud technology, rebuilding critical systems, and eliminating legacy platforms. This is more than a technical change. It’s a bold, organisation-wide initiative to streamline operations and enhance overall customer experience.
At T2RL Engage 2024, Radu Iliescu, Head of Consulting at Branchspace, and Oliver Ahad, Head of Offer & Order Solutions at British Airways, shared how this collaboration sets a benchmark for airlines when it comes to creating a true shopping experience with Offer & Order Management.
The Advantage of Moving First
The implementation of Offer & Order Management at BA goes far beyond an IT upgrade. It’s a full-scale business transformation. BA is rethinking not just its technology but also its business processes, products, and customer propositions.
This change touches every department in the airline, from commercial operations to customer service. The complexity of coordinating such a transformation requires synchronisation across all parts of the airline, ensuring all departments move together in the same direction.
BA is also innovating its product offerings, improving how they deliver services to customers, and streamlining the entire shopping and booking experience.
Being an early adopter of Offer & Order Management represents a significant benefit. Early movers can influence the development of new technology standards, which offers a competitive edge. BA aims to shape how these technologies evolve and position itself as a leader in the airline retailing industry.
Early adoption also allows BA to refine these solutions before competitors, giving them first-mover advantage in optimising revenue, improving customer experience, and modernising their internal systems. They believe this pioneering role will help them stay ahead of industry trends and be a key player in shaping the future of air travel.
Avoiding Past Mistakes
British Airways is determined not to repeat past mistakes made during earlier technological transitions. In the 1950s, when airlines first adopted Passenger Service Systems (PSS), the industry missed an opportunity to decouple pricing from booking classes, which would have simplified future processes.
Now, with Offer & Order Management, BA is seizing its second chance to get things right. By decoupling processes and removing legacy constraints, BA can simplify operations and avoid the technical debt that has built up over the decades. The focus is on forward-thinking innovation that takes advantage of today’s opportunities to modernise airline retailing effectively.
A Future-proof Change
In spite of the desire for change is present in almost every airline, we all know that implementing Offer & Order Management is a complex effort. It involves both IT and business process transformation.
One challenge is aligning multiple departments across British Airways, ensuring all moving parts stay synchronised. This change is not limited to technology. It affects how BA structures its products, communicates with customers, and operates internally.
Another challenge lies in equipping BA’s team with the skills needed to manage this transformation, including a deep understanding of existing processes, change management, and creative problem-solving. Addressing these challenges requires strong leadership and the right mix of talents to drive this innovation.
That’s why BA is focused on building a team capable of future-proofing the business through this transformation. BA is equipping its current employees with critical skills, including a deep understanding of the airline’s existing processes, the ability to manage large-scale change, and a strong emphasis on creativity.
The airline is also prioritising the recruitment of talent that can bring fresh perspectives and drive future innovations. Creativity is highlighted as a crucial skill, enabling teams to rethink processes and innovate, rather than simply adapting current systems to the new technology. BA sees this as an opportunity to create long-lasting, foundational change.
The Holistic Approach
Given the broad scope and complexity of BA’s transformation, a holistic approach is essential. The Offer & Order Management plan impacts not just the commercial side of the business but also operational systems, requiring consideration of the entire ecosystem.
The interconnectivity of systems means that changing one component could affect many others. BA is taking a step-by-step, iterative approach, ensuring the larger picture is considered before tackling specific components. This holistic view allows BA to minimise disruption while ensuring the transformation aligns with long-term goals, improving both operational efficiency and the customer experience.
The Role of Branchspace
Branchspace, with a widely experienced team of consultants in airline technology, is playing a central role in BA’s transformation. Many team members at Branchspace come from previous roles in the airline industry, which helps them understand the unique challenges airlines face.
Their approach emphasises a deep understanding of industry-wide needs, often offering recommendations that differ from what airlines initially ask for, aligning more closely with long-term goals.
Branchspace acts as a neutral mediator between the airline and its technology providers, ensuring that both sides work together efficiently. This partnership approach results in a close working relationship that is crucial for such a massive transformation project.
One key recommendation for airlines about to begin their Offer & Order Management journey is to engage expert consultants from the start. BA highlights the importance of not going it alone, given the pitfalls and complexities that can arise during such a massive transformation.
Partnering with specialised consultants at Branchspace, means that airlines can avoid common mistakes, ensure alignment with industry standards, and achieve smoother implementation. Experienced consultants offer not only technical expertise, but also industry knowledge that can help airlines navigate challenges and opportunities.
Looking Ahead
British Airways and Branchspace see a future where customers can seamlessly shop, order, pay, and settle without reliance on outdated systems like the PSS. They hope to fully unlock the potential of Offer & Order Management, providing a frictionless experience for travellers.
This vision includes greater flexibility in interlining with partner airlines, selling ancillary services in new ways, and offering tailored customer experiences. The goal is to enable a comprehensive, fully integrated shopping and booking journey that enhances customer satisfaction while optimising airline operations.
BA’s ambition is to lead the industry in transforming how airlines interact with passengers digitally.
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