Web 2 Business Proposal for Brisbane Airport
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Web 2.0 Business Improvement Proposal 1
Web 2.0 Business Proposal for Brisbane Airport
by
Alex Y Lim
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Web 2.0 Business Improvement Proposal 2
Executive Summary
Few businesses are as diversified in scope and far-flung in reach as an airport or air
terminal service provider (Dreiling, 2012), whether managed as a government-run
operation or by a privately-held management team. The Brisbane Airport exemplifies the
latter and faces vast opportunity to achieve a wider market patronage through a more
intensive Web 2.0 or Enterprise 2.0 presence.
Web 2.0 started out as social online experience at the individual level in the early
part of the 21st
century and has become a staging platform for promoting business
objectives to a global market that has embraced Web 2.0 as integral to how commerce is
undertaken today. A privately managed international airport that servers more than 20
million arriving, departing and transiting air travelers is a diverse business concern that
can benefit from being close to its stakeholders through the social wonders of Web 2.0
online experience. With no more than an $60,000 investment as proposed herein, the
Brisbane Airport can tap into the Web 2.0 social media powers to achieve greater
economies of marketing, closer relationships with its customers, and achieve wider brand
awareness that traditional marketing can only dream about. Over a 12-month period, the
proposal will strengthen the airports social media presence with a second social
networking site, a presence in blogosphere and a stab at YouTube marketingall of which
can provide not only a more intimate relationship with its stakeholders, customers and
business partners, but open up the potential to have added revenue streams from business
referrals made from these social sites.
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Table of Contents
Executive Summary .............................................................................................................. 21 Introduction ................................................................................................................... 42 Current Situation ........................................................................................................... 5
2.1 The Brisbane Airport Corporation (BAC) .............................................................. 5Ownership ......................................................................................................................... 62.2 Web 2.0 Business Implications .............................................................................. 62.3. Web 2.0 in BAC ..................................................................................................... 82.4 Business Needs Analysis ...................................................................................... 10
3. Web 2.0 Solution Proposal .......................................................................................... 153.1 Description ........................................................................................................... 15
3.1.1 Identified Business Drivers ........................................................................... 173.1.2 Objectives ...................................................................................................... 18
3.2 Cash Flow Analysis .............................................................................................. 19
3.2.1 Projected Benefits ......................................................................................... 193.2.2 Anticipated Project Implementation Costs ................................................... 203.2.3 Cash Flow Analysis ...................................................................................... 21
4 Proposed Project Management .................................................................................... 224.1 Statement of Work ................................................................................................ 224.2 Key Project Assumptions and Constraints ........................................................... 23
4.3 Project team composition and organization ...................................................... 234.4 Work Breakdown Structure and deliverables per milestone ................................ 24
4.4.1 Activity duration ........................................................................................... 254.5 General Project performance metrics ................................................................... 26
4.5.1 Project Milestone Metrics ............................................................................. 27
4.5 Communication Plan ............................................................................................ 28References ........................................................................................................................... 30Appendices .......................................................................................................................... 33
Annex A: Statement on Collaborative Efforts in the Developing the Proposal............. 33Annex B: Work Breakdown Structure elements ............................................................ 36
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1 Introduction
Web 2.0 is the term that defines a broad range of computing experience for the
consumer that is revolves around the social dimension of online users. It is not a specific
update to browsing the World Wide Web such as what IP 6.0 does to the internet
networking protocol. Rather, it describes a 21st century online experience that goes
beyond mere web browsing. The internet is not more than just a mere source of
information but has taken on a computing platform that harnesses broadband
telecommunications and several online technologies to bring a level of interactivity and
collaboration between users online, broadening the implications of online computing into
the business and socio-political landscape (Swabey, 2008). Dale Dougherty ofORielly
Media is credited for having coined the Web 2.0 term back in 2004 to simply put a title
that would best describe an OReilly media conference (Musser & OReilly, 2008). Since
then, the term has stuck to describe an online experience that transcended a mere trend for
social networking in Facebook and Twitter, blogging with Tumblr and Googles
BlogSpot, and media content sharing in YouTube, Picasa and Flickr, into a defining
online computing landscape from which there is no turning back.
It is precisely this ease with which content can become viral, reaching a potential
global market as well as the marketing potential of the experience that has not escaped
entrepreneurs who realized early on that Web 2.0 has not only revolutionized the way
people use the internet, but also created a valuable channel to enhancing brand awareness
and reach that traditional advertising could only dream about at tremendous cost to the
business. This proposal looks at improving the operations of a major international airport
the Brisbane Internationalby optimizing its use of a few major Web 2.0 technologies
that can make a profound difference to its business.
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2 Current Situation
2.1 The Brisbane Airport Corporation (BAC)
Considered the 3rd busiest airport in Australia after
Sidney and Melbourne airports, Brisbane Airport (BNE in
IATA code) is the only major passenger air terminal serving
the residents and tourists of Brisbane and suburbs. It has two
runways and two passenger terminals - a domestic terminal
with flights to and from around 46 destinations in the
Australian states and territories, and an international terminal
serving 32 foreign destinations. The 12 months ending in May
2011 saw it serving more than 20 million passengers. The
airport is a one of the major hubs of Virgin Australia where it
has a maintenance facility, and a secondary hub for Qantas and its budget affiliate Jetstar.
Awards
Since the dawn of the 21st century, the Brisbane airport has been the recipient of
various awards starting in 2001 when the Australian Airports Association named it the
Major Airport of the Year. In in the current year, the Australian Competition and
Consumer Association (ACCC) honoured it as the top Australian airport for quality of
service for the 8th consecutive year while Skytrax bestowed on it the Best Regional
Airport Award, following the same awards it got in 2008 and 2009. In 2010, its
international terminal wing received the Queensland architecture award and entered the
18thposition in the list of the worlds top 25 airports while once again being voted by
Skytrax as the "Best Australian Airport (Brisbane Airport, 2012). In 2005, the airport
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earned the IATA Eagle Award, the second of only two airports in Australia to be so
awarded (IATA, 2005),
Ownership
The Australian federal government has privatized several airports and the Brisbane
airport was acquired from the Federal Airports Corporation by a private consortium
consisting of private financial and government interests under the Brisbane Airport
Corporation (BAC) led by Amsterdam Schiphol Airport which currently holds a
management contract for airport on a 99-year lease of the facility.
2.2 Web 2.0 Business Implications
Web 2.0 replaces the traditional view of a website as a channel for disseminating
digital information to browsed and consumed by the user, with one that sees websites as
engaging tools for structured interaction between people and between organizations and
people. Social media is a common, more meaningful alternative term that aggregates a
panoply of Web 2.0 technologies behind blogs, wikis, social networks, social
bookmarking, media file sharing, and news aggregation sites that are constantly evolving
and recombining. The implications for business are numerous and have spawned the term
Enterprise 2.0 for corporations as a counterpart to the consumer-centric Web 2.0. For
starters, Web 2.0 changes the way customers interact with one another and that demands a
change in the way businesses communicate and interact with their markets. A company
website simply used an online product brochure is a wasted opportunity. More progressive
companies are using Web 2.0/Enterprise 2.0 to stimulate discussion and community
awareness around their brand, products and services, and are harvesting invaluable
customer insight as a result.
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The key implication of social media to the business in promoting a closer
relationship between the business and its publicscustomers, government, other
businesses, media, and the general public. For the Brisbane Airport, communication
between these segments of society and the business is made more convneient by the fact
that travel related information (flight arrivals and departures, airport weather and traffic
condition, potential and actual delays, boarding routines, things to do while at the airport,
etc.) can now be accessed from anywhere and at any time, using PCs at home and mobile
devices such as smartphones and laptops with internet access. The same communication
channel can be harnessed using social media marketing over wider market reach
advertising but minus the regular advertising costs.
Brisbane Airport can promote cost effective deals on behalf of airport businessconcessionaires and airlines with an active and far-reaching social media presence.
These could result in added revenues to its business partners open up the option for
the airport to earn sales commission from online bookings and online sales
generated from a redirection of website traffic from its social media pages.
User Awareness once in the airportUsing Wi-Fi technology at the airportpremises that can access a cloud database, passengers arriving thereat can be
prompted to check on their travel requirements such as visas, the rules of what can
be brought with them while on board or their destination, and provide them the
easy channels to post feedback in regards to their travels via mobile gadgets. This
creates a sense on interaction between the organization and the public the airport
serves.
Equally significant as the impact of Web 2.0 on consumers and customers are the
implications for internal collaboration. That workhorse of internal communicationemail
is looking decidedly tired as more effective and more efficient communication and
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collaboration tools devised in the consumer realm work their way into corporate life.,
Because an airport is a mecca for airlines and their businesses (catering, aircraft
maintenance, etc.), along with airport business concessionaires (car hire firms, restaurants,
trade and cultural exhibitors, duty free shops and even health and recreational
establishments), harnessing the social interactive power of Web 2,0 can bring these
internal elements into a more cohesive and productive group acting towards a shared
commitment with airport management as if they as employees of the airport itself.
But some companies appreciate the business value of Web 2.0/Enterprise 2.0 than
others. Companies like Dell and PlusNet use it to learn more about how they can serve
their customers better. Others, like Wachovia Bank and Best Buy use Web 2.0 tools to
help their companies and business partners work together more synergistically with
improved social cohesion (Swabey, 2008). Every Web 2.0 application shows why it is
imperative for the company, particularly its information technology departments to
understand and harness Web 2.0 from a technical and social perspective. By enabling
collaboration and fostering closer relationships with their stakeholders (markets and
publics as well as governments and business partners), Web 2.0 empowers the business to
bring its marketing, customer service and business development activities to better
economies and cost efficiencies.
2.3. Web 2.0 in BAC
The company is open to adapting emerging new technologies in its business
operations. In a press release issued by Cisco (2012), the Brisbane Airport Corporation has
implemented virtualization technology from network solutions provider Cisco, storage
solutions provider EMC and virtualization software provider VMware to strengthen the
company ability to enhance economies of airport operations and customer responsiveness
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through strategies harnessing emergent technologies information and communications
technologies (ICT). But along with this, just exactly how far Brisbane Airport has arrived
in harnessing Web 2.0 or Enterprise 2.0 as a means to further the ends of its business
imperatives is seen by its current social media activities
(Abady, 2012). The BAC has established a relatively wide
social media presence with the following:
Mobile version of official website enabling mobileusers to check flight details using smartphones with
internet access;
Official Facebook page in standard format andlinked to the corporate website
Official Twitter account; and Official Pinterest account
Having said that, the airports social media presence can stand significant
improvements in the way it interact with its customers and airport concessionaires. For
instance, their mobile website version displays flight arrival and departure details.
However, given the fact that over 20 million foreign passengers have used or passed
through the terminal in 2011/12, it should not be that difficult to incorporate a language
selection options for passengers on the existing mobile phone application (see Figure 1).
This is more of a feature enrichment rather than an innovation as most online services
catering to several nationalities generally have some form of language transcription that
can cater to people that do not use English as their first language.
There is currently a gap in marketing infrastructure of Brisbane Airport
Corporation that social networking platforms such as Facebook, blogging and social media
Figure 1: Mobile apps accessing
BAC flight information
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sharing could help close. Facebook can essentially be used like a live wiki for thousands
travellers who are Facebook users who may want to be remain updated by simply clicking
one button and getting linked to the official Brisbane Airport page. The type of
information that the Airport can share on Facebook can be extremely broad, ranging from
quick facts about the airport and say its baggage procedures and limitations to Updates on
the Traffic and congestion troubling the primary routes in and out of the facility.
There is great room for improvement within the relationship and closeness that the
consumers feel towards the airport. Brisbane Airport is a large multi-faced business that
needs to leverage communicative competence in bringing together the disparate business
concession operating within the pre-departure, post-departure and transit experience of
passengers. Using social media to enable the Brisbane Airports marketing strategy could
aid in helping establish a better relationship with the thousands of travellers who use social
networks as well as employees working in the airport. Social networks are all about
crating and sustaining a feeling of connection that keeps users logging in every day or
several times in a day and while the Brisbane Airport has already gained a foothold into
the social media bandwagon, there is ample room to make this presence grow to its
optimum potential.
2.4 Business Needs Analysis
An exhaustive analysis or assessment of business needs is a fundamental
diagnostic process to determine root causes of current problems and situations that can
prepare the company in exploring and evaluating various alternatives in solving these
problems, filling in proficiency or competency gaps or market expectation and real-world
service quality gaps, and addressing the needs that can enable the company to better
achieve its business objectives. For the Brisbane Airport Corporation, the current
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situational analysis using a Strengths, Weakness, Opportunities and Threats (SWOT))
analytical framework has been used to identify the major areas when Web 2.0 can be
harnessed to maximize the companys business potential in its target markets (Weihrich,
1982). In addition, the PESTLE framework which explores in more detail the external
factors can feed right into the opportunities and threats in the SWOT analysis (JISC,
2012). These are the Political, Economic, Social, Technological, Legal and
Environmental factors that may be missed if only the SWOT was used (Thomas et al,
2007).
Table 1: SWOT Analysis
SWOT Areas Assessment
Strengths The Airport is a major domestic and international hub for severalairlines in the Brisbane metropolis serving as a gateway to
Queensland, the region and the world.
BNE is seeing an increase in visitor arrivals going through theairport totalling 1.8 million or an increase in 2.7% year on year asof September 2012 (BNE, 2012).
The company has a relatively strong but static online presencethrough its corporate website atwww.bne.com.auwhere BNE
customers can check on flight information, travel news in
Brisbane, and access information on various travel related topics
while in the airport
The airport has been at the forefront of social media as it recentlybecame the first Australian airport to use Pinterest which has a
reported 8.9 million views in the country in February 2012. This
was it third social network after Facebook and Twitter.
Weaknesses There is no effective internal communication that can link airportmanagement to its business concessionaires (car rentals, duty free
shops, restaurants and lounge operators, airlines booking offices)
Opportunities Web 2.0 technologies have yet to be fully harnessed;
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A stable and growing national economy that portends a sustainedrecovery from the global recession as evidenced by recent
increases in passenger arrivals in the airport
Threats The airport has little competition in the area other than those thatfunction as alternate or feeder airports such as Sunshine Coast.
Gold Coast, Toowoomba, Ballina/Byron Gateway and Lismore
airports.
Table 2: PESTLE Analysis
PESTLEelements
Factors
Political Healthy business relationships exist between the company and localBrisbane authorities as well as commercial firms engaged in
concessionary business within the airport premises.
Economic Strong macroeconomic fundamentals with rising GDP andimproving unemployment rate ensure a local economy slowly
recovering from the onslaught of the global recession over the last
three years.
5.1% unemployment rate as of 2011, improving slightly from the5.2% registered in 2010. But among the youth sector (aged 15-24)
unemployed stood at 11.6% during the same period. (Index Mundi
2012).
Brisbane is experiencing modest but stable growth in visitorarrivals which totalled 1.8 million for a year on year increase of
2.7% year as of September 2012 (BNE, 2012a).
Social The airport has a thriving list of business concessions such as carrentals, restaurants and shops that together serve passengers while
going through the airport.
It has a growing involvement in social networking groups such asFacebook, Twitter and recently joined Pinterest dedicated for online
users who love or enjoy air travel (BNE, 2012b).
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Technological Strong internal IT infrastructure and development support for in-house application systems using existing computing and database
platforms
There is a growing social media penetration rate among internetusers and this can be harnessed more fully by the company
Cloud computing which is a form of IT outsourcing when usedfrom a 3rd party provider is emerging as the new way of supporting
the business for improved economies of scale that effectively makes
unnecessary the traditional continuous investments in hardware and
software during system upgrades (Hogan, 2008).
Legal Copyright violations increase with user-generated content in Web2.0 (Ingram. 2010). The issues revolve around managing user-
developed or collaborated content and ensuring that the copyright of
others is not infringed in the process. This often requires a more
conscientious monitoring of critical social media content like
images, music and video whose owners are known to enforce
copyright ownership rights.
Social media often comes with personal information as in the caseof user profiles and photos in social networks and face the potential
risk that such information are used without securing explicit
permission from their owners. Web 2.0 implementors will have to
exercise more diligence and care about protecting the privacy of
individuals. (Thomson, 2008).
Web 2.0 content risks being compromised by malicious users whomay post pornographic, licentious, hateful or racially derogatory
materials. Constant monitoring of the site can prevent such
materials from defacing the site.
Environmental The company has not highlighted its greening or eco-friendly effortsto general more support from greening enthusiasts among its
passengers. Further studies will be conducted in this area to
identify areas for improvement and inclusion as an airport feature
for its social media marketing efforts.
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3. Web 2.0 Solution Proposal
3.1 Description
The online experience generated by the Web 2.0 phenomenon for consumers and
Enterprise 2.0 for business takes advantage of several technologies that have emerged over
the last decade most prominent of which is the increasing affordability of broadband
internet telecommunications, and the ease with which online media content can be
generated by ordinary users. This has effectively transformed cyberspace from merely a
static browsing experience into a media-rich collaborative computing experience that truly
empowers its users (Blue Coat, 2011; McAfee, 2010).
The technologies behind the Web 2.0 trend covers social networking (Facebook,
Google+, MySpace, etc. where interaction between friends, colleagues and acquaintances
create a social dimension to the online experience), Wikis (collaborative engagement
online allowing users to share and edit content), blogs (participative engagement that
allows users to assess and appraise content presented by individuals or groups online for
specific focused topics), and media content sharing such as YouTube where user can share
multimedia content (Thomson, 2008) that has made YouTube a search engine second only
to Google in terms of being the most frequently visited site for online search purposes
(Stokes, 2012). Other technologies include podcasting, news alerts, and social
bookmarking but for purposes of this proposal, not all technologies are proposed as being
suitable for a company that is just starting to create a social media presence. The business
proposal recommends the following:
1. Blogging is proposed as a complement to social networks and its website extendthe interactive communication reach of social media, enabling companies to
benefit from market feedback and insights that take the place of commissioned
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expensive market research works to improve their merchandise and services. , and
widen the brand awareness of the company and potentially convert online traffic
into more sales revenues (KISSmetrics, 2012). Blogs create a venue for real-world
experiences on products and services that companies can capture freely and has
grown to become a global pastime among online users with more than 110 million
blogs as of 2008 and growing (Mayfield, 2008).
2. YouTube marketing using short videos about the company and itsaccomplishments, news and ongoing projects that can immensely improve the
online search presence of the company. YouTube is the 2nd largest search engine
on the internet with an estimated 100 million videos viewed each day (Mayfield,
2008; Skwire & Teppema, 2012). Half of YouTubes 300 million worldwide users
access the site at least once a week making 2.8 billion searches monthly (Stokes,
2012). Posting videos about Brisbane Airport and its role in the tourism and
business travel industry as well as related news can take advantage of this reach as
a more cost effective advertising model
3. Enhance and fine-tune the companys social networking presence by creating anddeveloping a Google+ social networking presence to complement its Facebook
account. With the Google BlogSpot/Blogger presence incorporated into it, this
social media presence is expected to promote and further widen the brand
awareness of the services provided by the airport. Over the last 10 months after its
inception in June 2011, Google+ has shown phenomenal growth outpacing that of
Facebook and twitter with 170 million active users (Gonzales, Cuevas, Rejale &
Cuevas, 2012), and as of reaching its first birthday in July, Google announced the
site has 250 million users (Olander, 2012).
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4. Harness the revenue earning potential of social media marketing by takingadvantage of the social behaviour of users. For instance, every Facebook user
brings with him an estimated 120 friends and colleagues on average (KISSmetrics,
2012). This potential information cascading opportunity for a product or service
endorsement has not escaped savvy marketers to generate a positive down line
awareness that fosters the marketing potential of advertising in social networks
(Leskovec, Adamic, and Huberman, 2006). 78% of consumers prefer the
recommendations in social networks which gives social media a significant
advantage over traditional advertising models (KISSmetrics, 2012), making social
media the darling among advertisers and marketers. In this regard, the BAC can
harness this social behaviour to make product and service endorsements for its
business concessionaires and airline operators in the airport premises.
3.1.1 Identified Business Drivers
The following factors have been identified as key drivers in further enhancing the
BAC social media presence by harnessing popular and innovative Web 2.0 technologies
for both its external and internal stakeholders (passengers or commuters, and employee /
consignees).
Harness the communicative powers of social media and its reach in creating andsustaining and wider awareness about the role of Brisbane Airport to its
passengers, surrounding communities, the government and to the countrys tourism
programs. The business concessionaires at the Brisbane Airport can benefit from
have a shared access to a common communication platform with which they can
access information that can benefit them, the airport and the passenger going
through the terminal. For instance, coordination can be made between airlines and
airport managers to ensure flight times and passenger turnout are communicated
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through alerts on smartphones and laptops of concerned parties to ensure that
enough manpower can man car rentals, food concessionaires and baggage
handlers. In times of emergencies, coordination can be instant as information can
be updated and immediately accessible to every stakeholder.
While the current social media presence is not meant to generate additionalrevenue streams directly, but more as a tool to improve communication between
the company and its publics, there is the potential for social media to generate
direct income through commissions in the sale of products and services that have a
presence in the airport premises.
3.1.2 Objectives
The project aims to establish a more robust and active Web 2.0 computing
environment for the Brisbane Airport Corporation with the following specific objectives:
Objective Outcome Measure
Optimizemarketing
communications
potential through
a wider social
media presence
Use of Google+ for a widersocial networking presence that
can be harnessed for marketing
and PR purposes
User base to exceed 30,000within the first 6-8 months from
launch
Creation of blog sites to engage
the public to actively share
comments and suggestions on
company products and services
At least 12 active blog feedback
per day after the 4th month of
implementation
Creation of a more intense
YouTube marketing presence thatcan replace advertising spend on
tradition print and broadcast
media
Generate no less than 20,000aggregate views for thecorporate video materials
posted in YouTube within the 6
months of launch; and
Reduce advertising placementspend on TV and print by 40
% within the same period.
Augment revenue
stream through
online sales
commissions from
Signed contract with business
concessionaires to provide a 2%-
5% commission on sales
generated from local and
Incremental sales of $100,000
for the first year of operation
with a conservative 15%
increase every year thereafter.
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airport
concessionaires
international traffic to their
websites directed from any social
media site of Brisbane Airport
3.2 Cash Flow Analysis
3.2.1 Projected Benefits
The proposed Web 2.0 enhancement to the business is expected to generate
benefits that are qualitative and quantitative n natures with primary and secondary benefits
in each as shown in Table
Table 3: Project benefits
Qualitative Quantitative
Enhancing social media presence
Primary Wider reach of information about
the airport, local aviation news, its
plans and project and other matters
that concern the passengers going
through the airport.
Fewer passenger inquiries at the
airport on flight schedules, airport
taxes, documentation
requirements, etc. since these are
now available online
Secondary Better market perception about thecompany, further boosting the
goodwill of the airport name
driven by its constant
communication with its passengers
and stakeholders,
Increased user base for socialnetworking sites for the airport
Augment revenue stream through online sales commissions
Primary Enhanced e-commerce value for
the website and social media
presence
Generate commission sales
revenues of at least $100,000 with
a 15% annual increase
Secondary Foster better business relationships
with airport concessionaires
Retention of high value business
concessionaires with no more at
least 10% increase in their
aggregate sales the airports social
media referrals.
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3.2.2 Anticipated Project Implementation Costs
Assumptions
No additional manpower is needed for the project or in the implementation itself;current staff handling the social medial activities will be involved in the project
and additional internal users will be harnessed to ensure that market feedback from
social media sites are responded do even outside of office hours. To these end,
several units of iPads will be provided to them as initial equipment that will enable
them to engage in social media concerns even at home.
Technical specifications for PC Tablet (Apple iPad2) purchases will be validwithin 6 months from submission of this proposal. Hence immediate purchase is
recommended as soon as possible considering the high obsolescence rate of these
devices in the
Tablets for key personnel to maintain
the proposed s ocial media presence
24x7 (30 units of iPad2 units at $530
each (1)
15,900 15,900
Allowance for Software licences for
standard Apple iOS and apps (at an
estimated $300 per iPad2 unit)
9,000 9,000
Social media upkeep sunk cost 0
3rd Party Consultancy Service 12,000 12,000
Project Manager sunk cost 0
Training (allocation) 10,000 10,000
Collaborative Online Service freeware 0
46,900
Contngency (20%) 9,380
Total Year 1 Cash Out 56,280
(1)Reduced Apple iPad2 prices as of March 2012, based on Engadget site at
http://www.engadget.com/2012/03/07/apple-drops-ipad-2-price-to-399/
Planned Budget
($)
Web 2.0 Project
Project Management
Total
Project Cash Out (Year 0)Hardware
Software
licensingPeople Consultant
Table 4: Estimated project cost components
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market, usually in 8-14 months.
Exchange rates and inflation rates will remain relatively stable throughout theproject duration with no more than 5% fluctuation.
Purchase prices are valid within three months of this proposal.3.2.3 Cash Flow Analysis
This proposal assumes an incremental increase of 15% of commissions revenues
resulting from online purchases of items from visits directed or emanating from a visit to
any of the Brisbane Airport social media sites. The current base income is also assumed to
be $100,000 which has been conservatively estimated. In the absence of a company
preferred a weighted average cost of capital (WACC), the cash flow analysis used the
prevailing average of 7.05% for several markets as calculated by Damodaran (2012).
From this assumption, a cash flow analysis on Table 5 clearly shows that the
project will pay for itself in less than for years based on a discounted payback period
computation. It has positive NPV and its IRR exceeds the current cost of capital (7.05%
rounded out in the table presentation), both indicative of project that has acceptable
business value for the company. The revenue assumption will have to be validated after
the first year, but this quantitative assessment can be insignificant compared with the
Cash Flow Analysis
Current
Year
Years 0 1 2 3 4 5
Investment 56,280.0
Cost of Capital 7.1%
Incremental Revenue over previous year 10.0% 15,000.0 16,500.0 18,150.0 19,965.0 21,961.5
Sales (15% annual increase from base
year's incremental commiss ion income
of $100,000 ) 15.0% 100,000.0 15,000.0 17,250.0 19,837.5 22,813.1 26,235.1
Cash Flows -56,280.0 15,000.0 16,500.0 18,150.0 19,965.0 21,961.5
Discounted Cash flows -56,280.0 14,012.1 14,398.3 14,795.1 15,202.8 15,621.7
Cumulative Net Cash Flow -42,267.9 -27,869.6 -13,074.5 2,128.2 17,750.0
Discounted Payback Period N/A N/A N/A N/A 3.9 N/A
Net Present value (NPV) 16,581.0
Internal Rate of Return (IRR) 17.43%
Modified IRR (MIRR) 13%
Profitability Index (PI) 0.74
Table 5: Cash flow
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Web 2.0 Business Improvement Proposal 22
qualitative value of achieving a wider communication reach among the companys
stakeholders that the proposed Web 2.0 technologies promise.
4 Proposed Project Management
4.1 Statement of Work
Over a period of 12 months, the project team will implement the various web-
based technologies to enable the company to harness the Web 2.0 or Enterprise 2.0
computing platform and create the application web experience for its customers. The Web
2.0 umbrella project covers the following:
(1)Blogging: Using Googles BlogSpot/Blogger, create blog sites to provide closerinteraction between customers and the company.
(2)Improve Facebook presence: Fine-tune the corporate Facebook presence to presentthe company products and services, news and industry developments, as well as
customer feedbacks to create a positive impression that the company values its
markets.
(3)Create Google+ social networking presence that incorporates its blogospherepresence for optimum market reach and ability to extract passenger feedback and
reaction to airport services provided by the company
(4)Implement YouTube Marketing. Develop short 10-30 second advertising andadvertorial content about the company products and services, history and
programs, people profiles, and other relevant materials that can be used to promote
the company name and thus create branding preference.
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Web 2.0 Business Improvement Proposal 23
4.2 Key Project Assumptions and Constraints
The project will have the following assumptions and constraints or limitations:
The project team members are stakeholders in the organization and will be directlyinvolved in operating and using the proposed Web 2.0 computing technologies as
proposed for at least 3 years from the successful implementation of the project
The system vendor (s) in the supply chain for the project will cease to operateduring the system implementation.
The implementation will result in the decommissioning of the various existingcomputing systems that are replaced throughout the companys operations.
Project funding may be increased within 20% as approved by the project sponsor The project has a 12-month timeframe, ending on or before 10 December 2013. The project deliverable will comply with approved policies of the company where
applicable unless otherwise rescinded for purposes of accommodating any new
procedural requirement as may arise from its implementation.
4.3 Project team composition and organization
It is recommended that the project team be constituted as multi-disciplinary multi-
departmental team with members coming from marketing, public relations, direct
customer-facing operations and IT departments. There will be a collective ownership of
the project with tasks that are spread among these stakeholders. The project will follow the
standard project management team organization which calls for a division of labour within
the team. Figure 2 illustrates the organization structure with members from the
organization and representatives from an IT consultant or vendor who can work with the
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Web 2.0 Business Improvement Proposal 24
Figure 2: Project team organization chart
Support
Direct
Leadership
System Documentation Specialist (2)
IT Consultant / VendorRepresentatives (1)
IT Department Representative(1)
Blogging DevelopmentLead 1
Public RelationsLead (1)
Media ContentLead (1)
Project Manager (1)
Staff (3) Staff (3)
Project Steering Committee
(Heads of Operations, Finance, IT and other invitedcorporate decision makers and stakeholders)
Staff (3)
team to guide it in both technical and functional areas. In addition, there is a need to
activate or create an oversight body such as steering committee that can provide high
management support for the project in terms of project funding, strategic change
management approvals, and status monitoring to ensure that the project is completed as
expected.
4.4 Work Breakdown Structure and deliverables per milestone
Table 6 summarizes the projects milestones and their respective deliverables.
Table 6: Project WBS milestones and deliverables
WBS Task Name Deliverables
1 Approve ProjectApproved project budget and signed
contract with consultant
2 Create project team Complete project team
3 Acquire Tablets (ipad2 or equivalent) Trouble free iPad2 Tablets4 Develop and activate Google + Activated BAC Google+ site
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Web 2.0 Business Improvement Proposal 25
5Create and activate commissions-basedrevenue sharing in BAC website
Enhanced website for commission-based
revenue streams
6 Create and activate YouTube Account At least 12 15 YouTube video content
7 Activate Blogging presence Activated BlogSpot site8 Turnover project to operations Project Completion with user sign-off
4.4.1 Activity duration
Table 7 shows a high level activity Gantt chart for the milestone tasks calculated
from MS Project and summarized using MS Excel worksheet for this paper. The project
WBS details are in Annex B. This proposal aims to start the project after the Christmas
holiday rush and the second week of January 2013 is the target start. The project is
expected to last until the first week of December 10`3, just before the holiday season, with
a cumulative contingency of plus or minus 20 days to accommodate delays in any of the
milestone tasks.
Table 7: Project milestone task duration high level Gantt chart
Months
1 2 3 4 5 6 7 8 9WBS Task Name Duration Start Finish
1 Approve Project 11 days? Mon 1/7/13 Mon 1/21/13
2 Create project team 76 days Tue 1/22/13 Tue 5/7/13
3Acquire Tablets (ipad2 or
equivalent)92 days Tue 1/22/13 We d 5/29/13
4 Develop and activate Google + 57 days We d 5/8/13 Thu 7/25/13
5Create and activate commissions-
based revenue sharing in BAC75 days Thu 5/30/13 We d 9/11/13
6Create and activate YouTube
Account70 days Thu 5/30/13 We d 9/4/13
7 A ctivate Blogging pre se nce 72 days Thu 5/30/13 Fri 9/6/13
8 Turnover project to operations 62 days Thu 9/12/13 Fri 12/6/13
Total Approximately 12 months
10 11 12
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Web 2.0 Business Improvement Proposal 26
4.5 General Project performance metrics
The proposed Web 2.0 business improvement project will have performance metrics
that quantitatively assess the performance of the team, individually and collectively by the
Project Manager or in tandem with existing work performance measures implemented by
the company HR department. But the basic measures will include meeting budgets,
deadlines, and the planned or anticipated quality and quantity of deliverables. These
metrics include the following:
Table 8: Project performance metrics
Areas Metrics
Team
Performance
Attendancenot more than 10% lost time within a week due toaggregate tardiness or absences in any project activity that
includes presentations, staff meetings, and engagements with 3rd
party suppliers and corporate departments. This translates to no
more than 2 days unplanned absence in a month. Any tardiness
is recorded and compensated for by leaving late for home. This
is expected to maximize the members utilization in the project.
100% compliance with computing security standards. Thisrequires the use of automatic screen blanking or screensaver,
computer lockout, and auto log out from the company network
as well as the use of secure VPN (Virtual Private Network) when
telecommuting. This ensures security of user data, significantly
reducing the risk of anyone eavesdropping into member PC
when not around.
Quality of
deliverables
100% compliance with the objectives set for each planneddeliverable.
No more than10% error rate in data accuracy, syntax, spellingand diction in generating reports for internal and external use.
Time Management
Performance
Deadlines of project deliverable to be met 90% of the time. The5% instance when deadlines are not met should not exceed more
than 20% of the allocated time for the task to be completed. This
means that a two-day delay can be tolerable in a 20-day task
duration, provided that the down line task that depends on the
delayed task will not be severely penalized by the delay.
Towards this end, the tasks have built-in slacks as contingency
for unplanned events that could cause a delay. Every effort must
be done to ensure that down line tasks can absorb delays in a
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Web 2.0 Business Improvement Proposal 27
previous tasks to which they depend.
Cost Performance Not more than 10% cumulative budget overrun for the entireproject budget as initially approved. This ensures a tight reign
over project expenses to ensure the project will not go overboardunless absolutely demanded to complete a project deliverable.
Nevertheless, any unplanned upward cost adjustments will
require approval by the steering committee.
Ethical Conduct 100% compliance with workplace ethics as defined by HR. Zero complaints from external stakeholders (higher
management, consultants and suppliers) on ethical conduct or
behaviour of team members, shortfalls in expected commitments
and deliverables, on time start of meetings, etc.
Zero incidence of misdemeanors resulting in local police orcourt action. Zero complaints from fellow team members about violent,
intimidating, abusive or generally offensive behaviour.
4.5.1 Project Milestone Metrics
Each milestone will be marked with a status progress report to be provided to the
project sponsor or the project steering committee. The metrics of each milestone differ
based on the expected deliverables as indicated in Table 9. Some of the metrics, such a
signed contract are essentially the main deliverables expected in a milestone and their
availability on the expected date will comprise a positive metric result for the team.
Table 9: Milestone Metrics
WBS Task Name Metrics
1 Approve ProjectProject budget as planned and signed contract with
consultant on the committed date
2 Create project team Complete project team members
3 Acquire Tablets (ipad2 or equivalent)iPad2 tablets with 0% returns or warranty calls
within 12 months.
4 Develop and activate Google + On-Time completion of task
5Create and activate commissions-basedrevenue sharing in BAC website
On-Time completion of task
6 Create and activate YouTube Account On-Time completion of task
7 Create and activate blogging presence On-Time completion of task
8 Project turnover to users
Complete user confidence through a sign-off on
committed date
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Web 2.0 Business Improvement Proposal 28
4.5 Communication Plan
The project will generate regular project status reports as well as generate
summaries for fulfilment reports from 3rd party vendors and consultants, both of which
will be presented to project stakeholders consisting of project sponsors, management and
team members with the objective of ensuring a smooth flow of information that is needed
by them for appropriate action or fore purely informational purposes. Towards this end,
communications channels shall be supported by both tradition channels such as No project
can be implemented with any success unless the results and anticipated problems in the
project are communicated clearly within the group and to its external stakeholders such as
project sponsors in higher management (Charvat, 2002).
Table 10: Communications Project Plan
Information Author Frequency
Key
Audience
Action
(I,C,A) Communication Channel
Project status and
deliverables report
Project
Manager
Weekly
andMonthly
Steering
Committee, Teammembers
I,C Presentation in regular
meeting via PowerPoint,emailed document orthrough shared documentaccess in Google Docs.
Vendor deliveryreport
Vendor As Needed Project Manager I,C Emailed document orthrough shared documentaccess in Google Docs.
Issue and problemlog and resolution
ProjectManager, ERPVendors
Monthly oras required
SteeringCommittee,DepartmentsHeads dependingon the nature of
issues to be resolve
I,C Emailed document orthrough shared documentaccess in Google Docs
Contingency andRisk MitigationPlan
ProjectManager
Start ofproject andwith newrisksidentified
Project Sponsor,V{ Finance, HRDirector, ITDirector andTeam members
C,A Emailed document orthrough shared documentaccess in Google Docs
Project teamperformanceassessment
ProjectManager
WeeklyandMonthly
HR Head andto each teammember
I,C Weekly staff meeting
Actual vs. Budgetexpense report
AccountingHead
Weekly,Monthly,
Project Manager I,C Weekly staff meeting
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Web 2.0 Business Improvement Proposal 29
Information Author Frequency
Key
Audience
Action
(I,C,A) Communication Channel
Internal policy and
standards changerecommendations
Project
Manager
As required Steering
Committee
A Reposited in Google Docs
for online access
Request foradditional budget
ProgramManager
As required Project Sponsor A Special presentation toSteering Committee withadvanced emaileddocumentation
Key: I: Information only; C: For review and comments; A: For review and approval
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Web 2.0 Business Improvement Proposal 30
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Appendices
Annex A: Statement on Collaborative Efforts in the Developing the Proposal
The project called for developing a suitable Web 2.0 proposal for the Brisbane
Airport and required input in the following areas: (1) a background on Web 2.0, (2) brief
about Brisbane Airport and its current situation, (3) the proposed solution, and (4) the
project management. The three members of the team were assigned specific areas without
exclusivity and all of them collaborated to improve any area or all areas in the paper.
Toward this end, the team used Google Docs which allowed them to share information in
the form of PDF, JPG images and MS Office files for sources, but more importantly,
provided a collaborative editing platform where members can download, edit and re-
upload the paper in progress.
The website provided ready accessibility through the latest versions of Internet
Explore and Firefox as the teams preferred browsers for desktop PCs and laptops. In
addition, one team member used an Android smartphone to check and view the latest
revised documents while another used an iPad (with Safari browser) to view the
documents and PDF files used for references. All the team members have Gmail addresses
which already gave them access to Google Docs. The free use of Google Docs had a limit
of 5 GB for uploaded files which was more than was needed considering that the proposal
document only ate less than 1 MB, while the sources and drafts in the directory occupied
less than 1 GB in total. In addition 10 concurrent users were allowed which was just fine
since the team only had three members.
The initial proposal draft served as the master draft that was uploaded in Google
Docs using the team leaders account for private use with the team members authorized to
access the document for offline concurrent editing. File version numbers were the most
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Web 2.0 Business Improvement Proposal 34
important aspect in the current work in Google Docs or any collaborative editing tool so
that any other members will immediately recognize the status of the document he or she
was working on and who made the last changes. Google Gears which alerted the
document owner for changes was not used. Instead, team members updated the document
offline and re-uploaded them using a file naming convention representing the latest
updates to the master draft as follows:
File naming convention Description
BAC_1.0 BAC: The main filename for the Brisbane Airport
Corporation proposal master draft.1.0: Main file version number as drafted by the teamhead and uploaded in Google Docs to be worked on bythe team members.
BAC_1.1_Drew 1.1: File version number incremented as a second levelafter a partial revision done by a team member andupload back to Google Docs
Drew: Name of the team member who made changes orrevisions to the file
BAC_1.1.2_Elise 1.1.2: If the revision made in 1.1 was further edited orchanged by another team member, in this case by Elise,
then a third level version number is appended. In theexample, there were already two revisions made on the1.1 version to become 1.1.2.
BAC_2.0 2,0: Incrementing the main file number means that theteam head has edited the latest draft containing thevarious updates made by the team members and re-uploaded to Google Docs for another round of review or,if no changes are made, are accepted as the final versionof the document
A team member was free to proofread and edit any part of the paper and uploaded
the edited paper according to the described file naming convention described. While each
member has a responsibility for certain parts of the paper, this was not exclusive and any
member could edit or improve on any part of the paper. Google Docs significantly
facilitated and hastened the completion of the proposal and while there were initial minor
problems, it was just a matter of referring to the help guides to get it right and using offline
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Web 2.0 Business Improvement Proposal 35
editing so as not to complicate the learning process when using the sites realtime online
editing features. A member simply texted the other members over the cellphone when an
update was uploaded.
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Annex B: Work Breakdown Structure elements
Using MS Project Management, the Work Breakdown Structure was developed to arrive at
a realistic task duration and timeline that can be used to generate a Gantt chart and a
Critical Path in the application. The MS Project file can is attachedhere.
WBS Task Name Duration Start Finish
1 Approve Project 11 days? Mon 1/7/13 Mon 1/21/13
1.1
Present project plan to steeringcommittee and secure working approval(budget and team)
10 days Mon 1/7/13 Fri 1/18/13
1.3 Sign contract with consultant 1 day Mon 1/21/13 Mon 1/21/131.2
Create project accounting elements forexpense accounting
1 day Mon 1/21/13 Mon 1/21/13
2 Create project team 76 days Tue 1/22/13 Tue 5/7/13
2.1 Finalize shortlisted team candidates 15 days Tue 1/22/13 Mon 2/11/13
2.2 Select and process team members 5 days Tue 2/12/13 Mon 2/18/13
2.3 Present team to management 1 day Tue 2/19/13 Tue 2/19/13
2.4Conduct bonding sessions among team
members10 days Wed 2/20/13 Tue 3/5/13
2.5Brief team members re project details,
expectations and responsibilities5 days Wed 3/6/13 Tue 3/12/13
2.6Train team members on Web 2.0
technologies40 days Wed 3/13/13 Tue 5/7/13
3 Acquire Tablets (ipad2 or equivalent) 92 days Tue 1/22/13 Wed 5/29/13
3.1Define and finalize technical
specifications for purchase order10 days Tue 1/22/13 Mon 2/4/13
3.2Disseminate requests for tenders or
negotiate terms with accredited suppliers30 days Tue 2/5/13 Mon 3/18/13
3.3
Identify users to be assigned a tablet forsocial media engagement outside of officehour.
10 days Wed 4/10/13 Tue 4/23/13
3.4 Process supplier payment 10 days Tue 2/5/13 Mon 2/18/133.5
Receive and distribute iPads toauthorized users
15 days Tue 2/19/13 Mon 3/11/13
3.6Conduct tests on Social media access
from Tablets11 days Wed 5/15/13 Wed 5/29/13
4 Develop and activate Google + 57 days Wed 5/8/13 Thu 7/25/13
4.1Define media content requirements in
Google+10 days Thu 5/30/13 Wed 6/12/13
4.2 Create account and develop site 30 days Wed 5/8/13 Tue 6/18/13
4.7Develop media content or re-use
existing content from Facebook15 days Wed 6/19/13 Tue 7/9/13
4.3 Identify persons authorized to accessand administer the site
5 days Wed 7/10/13 Tue 7/16/13
http://c/Users/Alex/Documents/Articles_writersph/Web%202.0%20Bsuiness%20Improvement%20proposal%2074830947/Task%20Duration.mpphttp://c/Users/Alex/Documents/Articles_writersph/Web%202.0%20Bsuiness%20Improvement%20proposal%2074830947/Task%20Duration.mpphttp://c/Users/Alex/Documents/Articles_writersph/Web%202.0%20Bsuiness%20Improvement%20proposal%2074830947/Task%20Duration.mpphttp://c/Users/Alex/Documents/Articles_writersph/Web%202.0%20Bsuiness%20Improvement%20proposal%2074830947/Task%20Duration.mpp7/21/2019 Web 2 Business Proposal for Brisbane Airport
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4.8 Initiate and conduct tests of site 7 days Wed 7/17/13 Thu 7/25/13
5Create and activate commissions-based
revenue sharing in BAC website75 days Thu 5/30/13 Wed 9/11/13
5.1Identify business concessions for sales
commissions as referred by BAC site 15 days Thu 5/30/13 Wed 6/19/13
5.4Negotiate commission rates as
applicable30 days Thu 6/20/13 Wed 7/31/13
5.2Create and develop website for sales
referrals10 days Thu 8/1/13 Wed 8/14/13
5.3Activate online automatic payment
systems5 days Thu 8/15/13 Wed 8/21/13
5.5 Test commission revenue online system 15 days Thu 8/22/13 Wed 9/11/13
6 Create and activate YouTube Account 70 days Thu 5/30/13 Wed 9/4/13
6.3Identify authorized users to update
YouTube
5 days Thu 5/30/13 Wed 6/5/13
6.2Develop video content based on ad
materials and archive60 days Thu 6/6/13 Wed 8/28/13
6.4 Test video functionalities 5 days Thu 8/29/13 Wed 9/4/13
7 Activate Blogging presence 72 days Thu 5/30/13 Fri 9/6/13
7.1Create and develop blogging account in
Blogspot12 days Thu 5/30/13 Fri 6/14/13
7.2 Develop unique text and media content 30 days Mon 6/17/13 Fri 7/26/13
7.3Create initial blogging content and
engagement with market feedbacks30 days Mon 7/29/13 Fri 9/6/13
8 Turnover project to operations 62 days Thu 9/12/13 Fri 12/6/138.1 Conduct omnibus system test 15 days Thu 9/12/13 Wed 10/2/13
8.2Conduct user training for each social
media channel as necessary45 days Thu 10/3/13 Wed 12/4/13
8.3Present final project accomplishment
report1 day Thu 12/5/13 Thu 12/5/13
8.4 User acceptance 1 day Fri 12/6/13 Fri 12/6/13
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