CS4420/ CSX2005/ IT4442/ ITX2005

Design Thinking

Project 2

Ctrip

Submitted By

Xianyun Su 6228443
Juan Wang 6218207
Dawei Song 6228447
Hao Ye 6238023
Zheqi Shen 6238426

Semester 1/2021
1.Ctrip Journey Mapping

Journey mapping is divided into three parts, login, order and pay, order completed.

First, download and install the Ctrip app, and then enter Ctrip. The user will consume part
of the data in this process, but once the download is completed, the next time you use Ctrip, you
don’t need to download it again. Then use your mobile phone number to log in or register. You
don’t need to log in again when you need to use Ctrip again, which saves time.

Second, go to the homepage and select what you want to book. Air tickets, train tickets,
hotels or attractions. There are many options to meet your multiple needs. Then fill in the
location, time and number of people and click to query. There are too many things to fill in, but
the system will filter out the most suitable option based on the information you fill in. Select the
content you need to book according to the information filtered by the system. You can check the
relevant information and comments before booking, and judge whether it is worth booking
according to the comments given. Once you have determined what you need to book, click pay.
In the payment interface, you can select the payment way you want to use. Then complete the
payment.

Third, the order is complete. The system will display the relevant information of your
reservation and send a text message to your phone. Then choose to continue booking or exit the
Ctrip app. If you need to continue booking, just go back to the homepage and repeat the previous
process. If you don’t need to book again, just follow the time and place in the text message to get
what you booked.
2. Value chain analysis

Value chain model is highly popular in the business world. However, Ctrip com
International Ltd must not take it as a rigid, standalone framework by assigning equal importance
to all activities. The effective Value Chain Analysis requires Ctrip com International Ltd to
realise that all activities or functions do not require the same scrutiny level. Hence, the first step
of adapting the Porter Value Chain framework is to identify the importance of activities
according to their role in the product/service delivery process.
Here is the list of primary value chain activities as proposer:
The primary value chain activities of Ctrip com International Ltd are directly involved in
producing and selling the product to targeted customers. Analysis of primary value chain
activities can improve the performance of Ctrip com International Ltd as explained below.

Inbound Logistics
It is important to develop strong relationships with suppliers as their support is necessary
to receive, store and distribute the product. Without analysing the in-bound logistics, Ctrip com
International Ltd can face various challenges in product development phases. Analysis of
in-bound logistics requires a company to focus on every aspect of transformation from raw
material to finished product. Some examples of inbound logistics are retrieving raw material,
storing the inputs and internally distributing the raw material and components to start production.

Operations
The importance of analysing operational activities rises when raw material arrives, and
Ctrip com International Ltd is ready to process the raw material into the end product and launch
it in the market. Some examples of operational activities are machining, packing, assembling and
testing. Equipment repair and maintenance also falls into this category.
It includes both- manufacturing and service operations. Analysis of operational activities
is important for improving productivity, maximising the efficiency and ensuring the competitive
success of Ctrip com International Ltd. The increased productivity can help Ctrip com
International Ltd to achieve consistent economic growth, increase profitability and set a powerful
basis for competitive advantage.
Logistics
Outbound logistics include the activities that deliver the product to the customer by
passing through different intermediaries. Some outbound logistics activities are material
handling, warehousing, scheduling, order processing, transporting and delivering to the
destination. Ctrip com International Ltd can analyse and optimise the outbound logistics to
explore competitive advantage sources and achieve its business growth objectives.
Because, when outbound activities are timely managed with optimal costs and product
delivery processes put a minimum negative effect on the quality, it maximises the customer
satisfaction and increases growth opportunities for the firm. Ctrip com International Ltd should
pay specific importance to its outbound value chain activities when its offered products are
perishable and require quick delivery to the end customer.

Marketing and Sales

At this stage, Ctrip com International Ltd will highlight the benefits and differentiation
points of offered products to persuade the customers that its offering is better than competitors.
Only producing a high quality product at affordable costs and distinctive features cannot create
value until Ctrip com International Ltd invests in the marketing and sales activities. The sales
agents and marketers play an important role here.
Some examples of Ctrip com International Ltd's marketing and sales activities are- sales
force, advertising, promotional activities, pricing, channel selection, quoting and building
relations with channel members. The company can use the marketing funnel approach to
structure its marketing and sales activities. The marketing strategies can either be push or pull in
nature, depending on the Ctrip com International Ltd’s business objectives, brand image,
competitive dynamics and current standing in the market.
Effective and wisely integrated marketing activities can develop the brand equity of Ctrip
com International Ltd and help it stand out from the competition. However, Ctrip com
International Ltd must avoid making false commitments about product features that cannot be
fulfilled by the production department. It indicates the need to ensure coordination between
different value chain activities.

Services
The pre-sale and post-sale services offered by the Ctrip com International Ltd will play
an important role in developing customer loyalty. The modern customers consider post-sale
services as important as marketing and promotional activities. The power of negative e-WOM
due to poor support service cannot be undermined in the current technologically advanced era.
The company must analyse its support activities to avoid damaging brand reputation, and instead
use it as a tool to spread positive word of mouth due to quick, timely and efficient support
services.
The support activities play an important role in coordinating and facilitating the primary
value chain activities. Ctrip com International Ltd can also benefit from analysis of its support
activities as explained below.
Firm infrastructure
The firm infrastructure denotes a range of activities, such as- quality management, legal
matters handling, accounting, financing, planning and strategic management. Effective
infrastructure management can allow Ctrip com International Ltd to optimise the value of the
whole value chain. Ctrip com International Ltd can control the infrastructure activities (or
commonly called overhead costs) to strengthen the competitive positioning in the market.

Human resource management

Ctrip com International Ltd can analyse human resource management by evaluating
different HR aspects, including- recruiting, selecting, training, rewarding, performance
management and other personnel management activities. The effective HR management can
allow Ctrip com International Ltd to reduce competitive pressure based on motivation,
commitment and skills of its workforce. The company can also achieve its cost minimisation
objectives by analysing hiring and training costs with their relative return. The heavy dependence
of Ctrip com International Ltd on employees' talent will increase the importance of this value
chain support activity.

Technology development
In a modern, technological advanced era, almost all value chain activities depend on
technological support. The technological integration in production, distribution, marketing and
human resource activities requires Ctrip com International Ltd to realise the importance of
technology development. It can be divided into product and process technological development
activities. Some examples are- automation software, technology-supported customer service,
product design research and data analytics. The research and development department of Ctrip
com International Ltd is classified in this category.
Procurement
The procurement in the value chain denotes the processes involved in purchasing the
inputs that may range from equipment, machinery, raw material, supplies, raw material and other
items necessary for producing the finished product. Due to its linkage with multiple value chain
activities, Ctrip com International Ltd should carefully consider its procurement activities to
optimise the inbound, operational and outbound value chain.

As mentioned above, the application of Porter Value Chain model depends on

understanding the importance of all activities. After understanding the relative importance of
identified value chain activities, Ctrip com International Ltd should highlight areas where value
can be added, cost efficiency can be achieved, differentiation basis can be set, or processes can
be optimised.

3. Design Criteria Canvas

About design criteria canvas, the first part is the “Must” part: Must represents the most
basic attribute of online petition, which is the most basic function of online petition and is
indispensable.

1. Suitable for the mobile app: The online petition system must open the mobile app side,
because this allows users to use the program anytime, anywhere to facilitate their travel.
2. User information database: The system has a database corresponding to user information,
which can store their necessary information.
3. Build security information system: As a platform that needs networking, we must be careful
about network security to prevent being attacked by hackers.
4. Send promptly reminding users of flight cancellation information: Users can receive such
information in time to change flights at the first time and prevent delaying their whole travel
process.
5. It has the function of booking tickets: The system allows users to book tickets (means of
transportation) according to their favorite tourist places at any time. It is convenient for users to
enjoy continuous tourism services.

The second part is the “Should” part: Should can effectively improve the online petition
and make it more convenient to use.

1. The system has the function of user communication community: Users can share their travel
experience and travel details on the communication community. It is convenient for other users
to refer to and learn. Similarly, it provides a community for users to share happiness with each
other.
2. The system has online customer service, which can answer questions and software details to
users in time: Online customer service can effectively and timely help those users who have
important problems but don't know how to solve them for the time being.
3. The system has the functions of introducing scenic spots and recommending trips: This
function can better arrange and customize the travel itinerary for users. It gives users more travel
options.

The third part is the “Could” part: Could can effectively improve the online petition to
make it easier to use, but the priority is lower than should.

1. Create a feedback function to collect the information to improve the system: User feedback
can make staff improve and upgrade the system more directly and effectively to make it better.
2. The system provides "borrowing" service: Borrowing service can provide convenience for
users who need money urgently.
3. Provide "Help" function: The help page can quickly help users solve some simple problems,
effectively reduce the number of people who need online consultation, alleviate the pressure of
online consultation services, and let more people in need of help get quick help.

The final part is the “Won’t” part: The functions mentioned in "won't" should be strictly
prohibited in online petition, which seriously infringes on the interests of users and deviates from
the original role of online petition.

1. Collect personal information without consent: In addition to the necessary information, the
system can not collect other information of user, which is related to users' privacy.
2. The system divulges the user's personal information and does not keep it confidential: The
disclosure of personal information infringes on the basic interests of users and their personal
privacy, and betrays the users' trust in the software, which can not be allowed.
3. The system displays the non-conforming hotels, scenic spots, flights, etc. on the page: The
system should be responsible for the information that can be published on its own page. It must
eliminate the publication of false information and cannot deceive consumers. Strictly check and
verify the information required to be released by the partner, and those unqualified shall not pass.

4. Ideation

Because Ctrip's software is relatively complete, its many functions are relatively good. So
we currently have only two improvement ideas based on the third part of Design Criteria Canvas.

The first point is ‘It has the function of booking tickets’ in ‘Must’. We want to let users
have a better experience when booking tickets. For this design standard, what we want to solve is
how to allow users to get a one-time guide to the target location while buying tickets. After our
discussion, we came up with an idea that when users choose train tickets/air tickets, provide
them with attractions around the destination according to their destination, and then users can
directly choose to purchase tickets for the attractions along with the ticket (If the tourist
attraction needs to be purchased), buying together will provide some discounts. Or the user
directly selects the attractions they want to visit (if the tourist attractions are free). Finally, the
system will provide users with one or two travel itineraries according to the arrival time of the
user's train ticket/air ticket and the tourist attractions selected by the user.

The second point is ‘Send promptly to remind users of flight cancellation information’ in
‘Must’. We want to let users not delay their journey. For this design standard, what we want to
solve is how to allow users to quickly get the next earliest ticket after the flight is cancelled.
Based on our discussion, we came up with an idea that when the system sends the user’s flight
cancellation information, the system automatically searches for the next earliest flight that can
depart, and then sends the user a link to quickly change the flight at the same time. If the
replacement is approved by users, the system will proceed immediately.

The third point is the "membership discounts'' part of "should" to bring customers a cheap
choice. We want users to spend less money and get a better travel experience. According to our
discussion, we want to use the intelligence system to determine the user level according to the
usage of Ctrip and the number of purchases by different users. The intelligence system will
manage this and reasonably arrange discounts and discounts.

The fourth point is "The system has functions of introducing scenic spots and
recommending itineraries" in "Should". We want to make users travel safer. For this design
standard, what we have to solve is how to update the epidemic situation in various places in real
time, so that users can easily obtain information. Based on our discussion, we came up with an
idea. We will build an intelligent system that will use crawlers to capture the epidemic data on
the Internet in real time and automatically classify it by region, and then use red, yellow and
green to classify the risk of the data in each region. And a small circle of this color will be
displayed on the attraction introduction page.

5. Concept Development

For the concept development part, we need to focus on the four words “need”,
“approach”, “benefit” and “competition”. The direction of our Ctrip company is Ctrip with an
intelligence system.

The first part “need” means what’s the unmet need we are addressing? According to the
questions in the previous part, we have reached three points. When a customer purchases a ticket
to a travel destination, he needs to inquire about some travel information and guides, which
greatly consumes the customer’s time, so Ctrip can meet the customer’s needs for travel guides.
Give customers a better consumer experience. Secondly, when special circumstances occur on
the flight, such as sudden thunder in the weather, it affects the normal operation of the flight. In
order to improve this problem, Ctrip company can set the closest flight time for the customer,
thereby reducing customer waiting time, and meeting the needs of some customers for refunds
and changes, which greatly facilitates customers. The third point is that the company has
proposed a membership system for Ctrip's expensive air tickets, which will give reasonable
discounts and concessions to allow customers to reduce travel costs. Finally, one problem may be
that customers are unfamiliar with local tourism policies. For example, at the current stage of the
epidemic, customers do not know the requirements for nucleic acid testing in different regions.
How many days does it take to complete? Is a vaccination certificate required? The epidemic
situation at the destination is serious. Ctrip can meet these information needs.

The second part is “approach” , meaning what’s our approach to meeting the need and
how is it novel? The characteristic of this method is the use of the intelligence system. Through
the intelligence system, when the system knows the destination selected by the customer, it can
provide the customer with the most convenient flight plan, as well as travel guides, hotel
information, and dining status. Can support a variety of programs, let customers choose by
themselves, and provide preferential services. Second, when there is a special situation on the
flight, the intelligent system will screen out the best plan for the customer, and can quickly
handle the refund and change service for the customer. The third is the intelligent system to
effectively manage member customers, according to the contact situation within a year, and the
number of times they use Ctrip to reasonably classify users, provide a certain number of
discounts and discounts and bring them the cheapest travel price. Finally, the intelligence system
connects to web pages to provide customers with real-time information in different regions, such
as the impact of the current epidemic. The intelligence system divides the regional epidemic
situation into three levels of red, yellow, and green, representing severe, moderate, and good.
And remind customers of the information they need to provide.

The third part is “benefit”, how does the customer benefit? How do we benefit? First of
all, our improvement plan can provide users with a better travel experience, because when
everyone wants to travel, they always need to think about what travel plan can bring them the
greatest joy. Our intelligence system can provide the most popular travel strategy. Secondly, it is
to our advantage to bring convenience and discounts to customers. We use member management
to provide discounts and convenient refunds and change plans. The second is that the benefit we
get is that we can get good feedback from some users, can also occupy a larger market share, and
attract potential partners, which is beneficial to Ctrip.

The last part is competition, what competition will we face and what advantage will we
have? The problem facing Ctrip is the high cost of management of the intelligence system, which
increases the management cost of the enterprise. Because maintaining an intelligence system
requires professional improvement and design, this is an additional labor cost. And system
development is also very critical, requiring a large number of member customers to be managed,
which also requires high system requirements and also requires a large amount of expense. The
second is the threat of price wars from other companies of the same type. Because Ctrip's
product prices are not dominant and require a lot of labor costs and system maintenance costs,
which may lose a user in terms of the price. And what we have is also the advantages brought by
such a system, which can provide users with the best travel plan quickly, followed by the
convenient and quick return and change function and information display function. Finally, it is
also praised by the powerful membership system. In these aspects, a large number of loyal
customers can be obtained.

Below we will present the specific schemes of the two ideas we designed in ‘Ideation’.

The first plan is the intelligent system integrated travel plan. First, when the user
determines the destination to go to, the system will search all the attractions of the destination,
and present the introduction of the attractions, opening hours, ticket prices, etc. for the user to
choose. After the user selects, the system will analyze the appropriate hotel according to the
distance between the various attractions, and provide the hotel information to the user for
selection. Finally, when the user selects and completes all the above options, the system will
specify several travel plans for the user according to the user's flight time and the opening hours
of each tourist attraction. The types of plans can be roughly divided into one-day trips and
two-day trips. Users can choose travel plans according to their preferences. After the selection is
completed, the system will add up the ticket price, attraction ticket price and hotel price, and if
paid in one time, a certain discount will be given.

The second plan is to change the flight intelligently. After the flight is cancelled, the
system will search in the background based on the user's departure place and destination to find
the same departure place and destination as the cancelled flight, the closest departure time to the
original itinerary, and the flight that can be guaranteed to take off. Then the system sends the
flight information together with the information about the previous flight cancellation to the user,
and asks the user if they are willing to change it. If the user is unwilling to change, click "No",
the system will automatically cancel the flight itinerary for the user, and refund the ticket fee to
the user as soon as possible. If the user is willing to change the reservation, the user no longer
needs to go through the cumbersome change process, just click "Yes", the system will
automatically replace the cancelled flight with the flight, update the changed information, and
send it to the user's mobile phone as soon as possible .

This is the end of our Project2.