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SpiceJet improves transparency and control


with IBM Airline Office and SAP ERP

SpiceJet is one of India’s most


Overview dynamic low-cost airlines, with 19
aircraft flying to 18 destinations across
 The Challenge  The Benefits the country. With its headquarters in
With a range of separate systems Integration enables the monthly Gurgaon, the company employs 2,500
for accounting, purchasing, financial close to be completed people, and focuses on delivering the
inventory management and airline- within seven days – a 72 percent best possible value for business and
specific processes, low-cost airline improvement. Better financial private travel.
SpiceJet was having difficulty transparency and analytics enable
analyzing financial data fast enough improved cost control and planning SpiceJet is proud of its investment in
to make timely business decisions. – helping the business run more cutting-edge technology – from its
efficiently. Future integration with fleet of Boeing 737-800 aircraft down
 The Solution airline systems will continue to to its operational IT systems. The
Working with IBM Global Business reduce manual work and improve company manages its airline-specific
Services, the company deployed data quality. business processes using Star
SAP ERP 6.0 for financial Navigation, Russell Adams, Tech Log
accounting, controlling and  Key Solution Components and Navitaire systems, and can offer
materials management, using the Industry: Aerospace and Defense passengers e-booking and e-ticketing
IBM Airline Office template to ®
Applications: IBM Airline Office, facilities.
®
deliver a smooth and rapid SAP ERP 6.0, SAP ERP Human
implementation within just 12 Capital Management “Technology provides a way for us to
weeks. The solution runs on highly Hardware: IBM System x 3650 and®
improve our business processes and
reliable IBM System x hardware 3550 servers with Intel ®
Xeon® offer better service at a lower cost to
with high-performance quad-core E5345 processors, IBM System our customers,” says Nandan Mimani,
Intel Xeon processors, and utilizes a Storage® DS4700 Head of Finance at SpiceJet. “We
SAN based on IBM System Storage ®
Software: IBM Tivoli Storage decided to update our back-end
DS4700 technology. Manager management information systems to
Services: IBM Global Business align with the rest of our modern
Services infrastructure, and increase integration
to improve financial transparency.”
“With four cores in each An opportunity for integration agility while reducing manual
The company’s existing back-end workload. The company evaluated
processor, and two
systems included a number of various options, including solutions
processors in each separate applications for financial from vendors such as Oracle, before
machine, the Intel Xeon management, procurement and deciding on a solution from IBM
architecture delivers the inventory control. The lack of called Airline Office, which is based
performance our integration between these systems on the SAP ERP application.
created a large quantity of manual
business users require to
workload for reconciliations: staff in the IBM Airline Office
get the most from the finance department spent too much “It was very important for us to find a
SAP applications.” time capturing information and too little solution that was able to cope with the
analyzing it. unique challenges of the air transport
Nandan Mimani
industry,” comments Nandan Mimani.
Head of Finance, SpiceJet
“There were other issues too,” adds
Nandan Mimani. “The user interface of “We wanted to find a partner that had
the old systems was complex and successfully implemented ERP for
inflexible. As a result, for example, it other airlines, so that we could profit
was difficult to generate reports in from current best practices and
different formats for internal and ensure a smooth, fast implementation.
external audiences. When we wanted IBM’s Airline Office template for SAP
to change or customize something, we ERP offered exactly what we were
almost invariably had to ask our looking for.”
existing software provider for help,
which took time and was expensive.” IBM Global Business Services
worked closely with business and IT
SpiceJet began looking for a modern, teams from SpiceJet to map out the
centralized ERP solution that would requirements for the new solution and
improve transparency and business create a blueprint for the project that
would accelerate deployment and
minimize risk. The decision was taken
to implement the solution in two
phases: first, to install the SAP
applications for financial accounting,
controlling, materials management
and human resources, and second to
integrate the solution with the existing
airline-specific systems such as
Russell Adams.

Building a reliable infrastructure


To complete the first phase, IBM
Global Business Services used the
Airline Office template to install and
customize the SAP ERP 6.0
application, running in a Microsoft
Windows environment on the IBM
System x platform.
Three separate x3650 servers handle “Tivoli Storage Manager provides “IBM Global Business
the SAP production, development incremental backup technologies, so
Services did an
and quality assurance environments, we only need to back up new or edited
while a smaller x3550 runs SAP data each day, instead of making a full
excellent job, and the
Solution Manager. The servers are copy of the whole environment,” rapid implementation is
located in a data center at the comments Nandan Mimani. “As a a testament to the best
company’s headquarters. result, network traffic is substantially practices that IBM has
reduced and backups can be
developed during
Each of the servers contains two conducted much more quickly –
powerful quad-core Intel Xeon E5345 improving overall IT performance and
previous Airline Office
processors, which deliver excellent maximising system availability.” implementations.”
performance due to their 2.33GHz
Nandan Mimani
clock speed and 8MB L2 cache – as Rapid implementation
Head of Finance, SpiceJet
well as high energy efficiency. The IBM Global Business Services
System x machines also leverage completed this first phase of the
fourth-generation IBM X-Architecture implementation within just 12 weeks –
technologies to provide mainframe- two weeks ahead of the planned
class reliability and availability. 14-week deadline.

“The IBM System x platform is highly “IBM Global Business Services did an
reliable and we have experienced excellent job, and the rapid
very little downtime since the implementation is a testament to the
environment went live,” comments best practices that IBM has developed
Nandan Mimani. “With four cores in during previous Airline Office
each processor, and two processors implementations,” says Nandan
in each machine, the Intel Xeon Mimani. “Of course, there were
“Tivoli Storage Manager
architecture delivers the performance naturally a few teething problems as
provides incremental
our business users require to get the we got used to the new system, but
most from the SAP applications.” IBM and SAP helped us re-engineer backup technologies, so
our business processes to eliminate we only need to back up
SpiceJet also implemented a storage backlogs and get everything running new or edited data each
area network based on an IBM smoothly.”
day, instead of making
System Storage DS4700 disk system,
which provides a highly scalable
a full copy of the whole
Increasing automation and transparency
storage architecture, capable of The new SAP ERP applications have environment. As a
expanding to meet the growing needs already delivered a number of result, network traffic is
of the company’s SAP application important improvements to SpiceJet’s substantially reduced
environment and other systems. core business processes. Day-to-day
and backups can be
accounting processes have been
The company is using IBM Tivoli
conducted much more
simplified, and a powerful search
Storage Manager for Enterprise function has been added to help staff quickly – improving
Resource Planning to handle backup find specific transactions, suppliers overall IT performance
and recovery processes. The and customers easily. Reporting has and maximising system
software is specifically optimized for also been improved, since the SAP
availability.”
SAP ERP environments, providing applications are flexible enough to
simple management and reducing generate customizable reports without Nandan Mimani
administrative effort. any need for technical intervention. Head of Finance, SpiceJet
“Another very important benefit is the “With SAP ERP, we
increased ability to analyze, plan and
can complete the
forecast,” says Nandan Mimani. “With
a single repository for financial and
monthly financial
inventory data, we can achieve much close within just seven
greater financial transparency. We can days – so we get a
assess the profitability of individual better understanding
IBM Deutschland GmbH
routes and we have much greater
of how the business is D-70548 Stuttgart
control over purchasing – which is ibm.com/solutions/sap

particularly important as oil prices


doing, and we can IBM, the IBM logo, and ibm.com are trademarks

continue to fluctuate.” react more quickly to of International Business Machines Corporation,


registered in many jurisdictions worldwide. A
a changing business current list of other IBM trademarks is available
on the Web at “Copyright and trademark
Accelerating financial processes environment.” information” at http://www.ibm.com/legal/
SpiceJet has seen considerable
copytrade.shtml

improvement in a number of routine Nandan Mimani Intel, the Intel logo, Intel Xeon and the Intel Xeon
Head of Finance, SpiceJet logo are trademarks or registered trademarks of
back-office processes, such as the
Intel Corporation or its subsidiaries in the United
monthly financial close. States and other countries. UNIX is a registered
trademark of The Open Group in the United
States and other countries. Linux is a trademark
“The monthly close used to be an of Linus Torvalds in the United States, other
countries, or both. Microsoft, Windows, Windows
almost entirely manual process, so it
NT, and the Windows logo are trademarks of
took 20 to 25 days to complete,” Microsoft Corporation in the United States, other
countries, or both.
comments Nandan Mimani. “With SAP
Other company, product or service names may
ERP, we can complete the monthly
be trademarks, or service marks of others.
financial close within just seven days –
This case study illustrates how one IBM
so we get a better understanding of customer uses IBM and/or IBM Business Partner
technologies/services. Many factors have
how the business is doing, and we can
contributed to the results and benefits
react more quickly to a changing described. IBM does not guarantee comparable
results. All information contained herein was
business environment.”
provided by the featured customer and/or IBM
Business Partner. IBM does not attest to its
accuracy. All customer examples cited represent
He concludes: “The combination of
how some customers have used IBM products
SAP applications with the IBM Airline and the results they may have achieved. Actual
environmental costs and performance
Office template, and the experience
characteristics will vary depending on individual
and expertise of the IBM Global customer configurations and conditions.

Business Services team, has delivered This publication is for general guidance only.
Photographs may show design models.
a solution that meets our immediate
© Copyright IBM Corp. 2009. All rights reserved.
business needs and lays a secure
foundation for future growth. As we
move into phase two of the project and
integrate our airline-specific systems,
we expect to gain ever-increasing
benefits from the solution.”
© Copyright 2009 SAP AG
SAP AG
Dietmar-Hopp-Allee 16
D-69190 Walldorf

SAP, the SAP logo, SAP and all other SAP


products and services mentioned herein are
trademarks or registered trademarks of SAP AG
in Germany and several other countries.

SPC03100-INEN-00 (May 2009)