11/30/2018 RocketBlocks: Structure

Data and Goliath

Category: Travel, Corporate strategy
4

Delta Airlines, a major global airline, which recently merged with Northwest Airlines, has approached
your firm to help them figure out creative ways to employ the massive amounts of data they've
accumulated about air travel over the past few decades. They've recently completed an internal project
to standardize databases and information about all aspects of their operation, including tons of
customer data, and would like your team to help them assess the best opportunities to put this new
data to use.

Your structure (Time taken: 4 seconds, avg. time: 4 minutes, 48 seconds)

What! No buckets - lets turn up the effort here!

 RocketBlocks suggested answer

Problem statement: How to better use data?

Customer data

Personalized travel recommendation engine?

Provide in-travel updates (restaurants @ terminals etc)
Save customer preferences (seats & meals & drinks)

Fleet data

Aggregate and sell to plane manufacturers

Travel patterns data

Aggregate data and sell to other travel companies

Provide info graphics on in-flight entertainment

Key considerations

This is a unique type of question which gets at an increasingly common issue for the large
Fortune 1000 companies: how do they employ their massive data storehouses to their
advantage

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A good answer here will provide a segmentation to look at key types of data and propose
interesting starting points for each type

Framework strengths

This framework does a really nice job of laying out the key types of data we'd expect these
merged airlines to possess: fleet data, customer data and aggregate travel patterns data
It lists out a very logical list of options where each of these data types could be employed,
both for consumer benefits (eg better travel experience) and for corporate benefits (eg sell
data to other entities)
Overall, the level of specificity is good throughout the buckets and sub-buckets, exhibiting a
lot of attention to detail about the specific challenge these merged airlines face

Framework improvements

One higher level discussion that would be good to start with is vectors the data could be
used for (eg to improve customer experience, to improve internal operations). This would
help frame the following buckets on the types of data
On a more tactical level, it seems that fleet data would likely be useful in various
maintenance and logistics operations of the airlines, and so calling it out in the second
bucket would be a good addition

 RocketBlocks alum, currently Associate at McKinsey & Co.

Problem statement: Monetize customer database

Revenue related data

Segment customers based on data to more efficiently target marketing

Focus sales effort at times when customers are more likely to buy (during lunch breaks /
evenings)
Assess marketing partners based on data to use better ones

Cost related data

Focus marketing efforts to drive customers to lower cost channels (online v. travel agent)
Eliminate undesired serivces
Engage in yield management to control costs

Other data

 Anonymous user answer

Problem statement: Data usage strategy

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Competitive insights

How do our sales and profits compare to competitors

Where are our strongest areas competitively?
Where can we improve competitively?

Operational enhancements

What are the best routes to fly?

How can fueling and day to day processes be improved?

Customer preferences

What do customers like about the brand?

How has customer retention been?
How good has Delta been in obtaining new customers?

Product portfolio management

What are the best types of planes?

Should plane types be cut or added?

 Anonymous user answer

Problem statement: How to put data to good use

Financial impact

Impact on revenues
Costs
Profits

Brand image

How is it perceived by both sets of customers

New customers opinions

Customers

Ms, segment
Preferred method of distribution

Competition

What is their response

What are trends

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Best practices
Price

Ticket

Price vs comp
Promotions
Trends

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