Virgin Atlantic Selects EDS, an HP Company for Next-Generation Airline Reservation System

News Release :

EDS, an HP company, and Virgin Atlantic Airways today announced they have signed a new information technology (IT) services agreement that extends the companies’ 25-year relationship.

EDS has provided IT services for Virgin Atlantic since its inaugural flight in 1984.

New to this five-year agreement, EDS will provide the next generation of its airline reservations solution, EDS Reservation Services, a part of EDS’ Transportation Applications that EDS hosts and maintains on behalf of its clients. New features included in the solution are Electronic Miscellaneous Documents (EMD), which allow Virgin Atlantic employees to electronically capture and account for ancillary sales, and Ticket Re-issue and Refund (TRR) software that automates a formerly labor-intensive function and improves customer service.

“We are impressed with EDS’ vision for their new reservations platform and how this will enable Virgin Atlantic to exploit a service-oriented architecture (SOA) to provide improved customer services, greater agility and lower costs,” said Mike Cope, IT director at Virgin Atlantic. “This builds on our long-standing partnership with EDS during which time Virgin Atlantic has grown to become Britain’s second-largest airline serving the world’s major cities.”

Also new to the agreement, EDS will use its airline service-oriented architecture (AirlineSOA) that connects software and systems to better integrate Virgin Atlantic’s operations and help meet the airline’s unique market needs. Each of these new functionalities helps Virgin Atlantic lower core reservations services costs and add new revenue opportunities.

EDS will continue to provide passenger-processing services that include applications development and hosting of EDS Reservation Services, which handles approximately 6 million revenue passengers boarded annually for Virgin Atlantic.

“We have built a strong relationship and mutual trust with the Virgin Atlantic team over the last 25 years,” said Jim Dullum, vice president of Global Transportation Industry at EDS, an HP company. “Taking advantage of EDS’ latest technology, software development and delivery expertise and industry knowledge creates the right mix of IT innovation to support Virgin Atlantic’s continued success.”

EDS Agility Alliance partner Microsoft will provide select tools, software and resources to EDS in support of Virgin Atlantic. Together, EDS and its Agility Alliance partners collaborate to design, build and run a market-leading services platform and develop technology-based services to deliver tangible client results. EDS Agility Alliance partners include Cisco, EMC, Microsoft, Oracle, SAP, Sun Microsystems and Xerox.

As a leading transportation IT services provider, EDS’ end-to-end capabilities encompass air carriers, airports, cruise lines, logistics and modal providers, hotel companies and major reservations networks. EDS brings world-class technology solutions and infrastructure to help transportation and travel-related clients sustain competitive advantage in a highly dynamic global market.

The Future of Paper? - Magic Paper

Last month I wrote about "Magic Paper"

I found this as an update - very cool video.


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Managed Print Services as a Marketing Tool to Place More Gear ?

A Managed Print Services program will reduce the Machines In Field - or it isn't Managed

MIF represents the lifeblood of the copier (dealer) business model; the volume and associated service charges generated by MIF is a monthly, recurring revenue. Increasing this revenue usually means adding to the Machines In Field - this also benefits the manufacturer.

So, as an IKON or CBS or RBS, employee, you know how important MIF is and will do most anything to maintain as well as increase the number.

Additionally, MIF is used to build the compensation base- if you can look forward to re-signing your upcoming, lease expiring, MIF, you can usually expect to make a certain amount of commission.

This model has been in place for decades and has served both dealers and manufacturers well.

But could change be in the wind?

During the past twelve months, we have witnessed the merger of a manufacturer and dealer in our industry. Manufacturers now own the channel to their customers. And today, with the economy "worse than ever before, in the history of the universe..." (gag, get over it) every sales rep is "under the gun" to live and die in 30-day cycles - month after month after month after month...how's that working for you?

The Collision -

Customers are smarter, focusing on cost controls, and demanding more visibility, and accountability - Copier manufacturers' margins are shrinking, and the pressure is on to place more units via any and every technique available.

Rob Sethre, over at Imaging Industry Wall Street Insider mentions, "...MPS provides focus, transparency, and accountability where (to the great benefit of the imaging companies) they were missing in the past. Companies will now identify and control print volumes and, most importantly, restructure their printing environments..."

"to the great benefit of the imaging companies...they(focus, transparency and accountability) were missing in the past..."

The last thing a copier vendor or old-school copier salesperson wants is for his customer to know the truth, monthly CPC.(lease payment+service + overages/number of images printed)

Studies have shown, again and again, the majority of customers purchase copy machines with specifications well over their actual needs. Indeed, my own fleet surveys, although not scientific, do reveal an average monthly volume of 2,800 images over 1,100 machines.

I use to be surprised but now I simply predict this before the survey - I love to see the doubt/fear fleet across the Facility Manager's face- but that's just me.

It is an observed fact that customers are being oversold by the copier folks - not all the time but most of the time. And the collision is between smarter clients and old-school, equipment-based selling techniques.

More specifically, the clash is between the benefits of a real Managed Print Service Engagement and the wants and needs of the copier manufacturer to move product.

MPS trumps uninformed equipment placement.

Exactly how does this figure into MPS? We can be heroes.

Once an MPS engagement is implemented, the goal is to reduce the costs associated with output - one facet of this approach is reducing the number of machines in the field.

For those of you in a big dealer channel that may now be just a really big manufacturer's distribution chain, when you implement a Managed Print Services program, how easy is it going to be to tell your Sales Manager, "...great news, out at ABC company, we managed to reduce their fleet by 17%, removing 24 copiers!..."?

Here's the worst - some in the industry, may consider MPS as a marketing technique. Just another method supporting more hardware. MPS could be just another "talk track" to get in front of the "decision maker" and sell more gear - not solve more problems.

Think I am wrong? Consider this - why have all business equipment providers embraced "Solutions"? Canon, Konica Minolta, IKON, and Ricoh, all have "solutions" in their quiver of sales blurbs; right next to "first copy out speed" and "scan once, print many". Ready to be hurled at some unsuspecting target/SMB owner.

Why? The end goal of all this Solution Selling has been and always will be - to move more gear and capture more clicks.

For example, when ABC manufacturing company wants to file and retrieve its production manuals and change orders, one can simply recommend "five of my Canon 5185i's" as an "On Ramp" to your digital archiving system. This is an easy sale - add a 3-hole punch, an 11x17 paper tray, and a booklet maker and your client is good to go.

If you're one of the remaining, independent dealers out there, you can survive and even thrive on a service-based revenue model and maybe even a consultative-based model. But, if you are a manufacturer of machines, everything you do is strategically aligned with your number one goal - moving machines out the door. Period.

By the way, how many independent dealers are left? 2? 3?

Embracing the MPS model isn't about a new market niche, or attacking a segment of up till now unreachable opportunity. Real MPS is not about upgrading old hardware at a lower lease payment(although plenty of copier salespeople and purchasing managers may think so). True MPS is about solving real, everyday problems and saving honest-to-goodness money, cash, greenbacks, yen, lettuce...you get the picture.

We can be heroes-

The amount any company can save on printing could save somebody's job - keeping a family fed and happy.

That's all, just someone's job, not enough savings to support a junket to Laguna Beach or Orlando.

Where's my cape?


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