Malaysia Airlines embraces the digital revolution with its first Innovation Lab (iSpace)

KLIA, 27 July 2017: Malaysia Airlines today launched its first in-house Innovation Lab, or iSpace, as the airline enters the third phase of its digital transformation, towards becoming the digital airline. 

Officiated by the Minister of Science, Technology and Innovation of Malaysia, YB Datuk Seri Panglima Wilfred Madius Tangau, the lab is part of Malaysia Airlines’ continued efforts towards digital transformation and a key component to improve the airline’s customer experience and overall operational efficiency. The lab will serve as a testing ground to incorporate multifaceted aspects of the digital experience.  

The 8,300 square-foot facility with a capacity to house 100 people, is intended to promote an agile and modern workspace, equipped with the airline’s second physical Solution Cafe for helpdesk support, reading corner, gaming, recreational and scrum-free area as well as  meeting rooms.    The Minister of Science, Technology and Innovation of Malaysia, YB Datuk Seri Panglima Wilfred Madius Tangau said, “As Malaysia inches closer towards becoming a high value, knowledge-based economy innovation will continue to be a fundamental element in the country’s development agenda. With innovative solutions, businesses can raise the overall efficiency and productivity, at the same time create differentiation in product and services offered to support the transformation of the entire systems of production, management, and governance.” 

“By 2020, we are expecting around 36 million tourist arrivals in Malaysia and there is a growing demand for airlines to provide innovative and customer-centric products and services. With the right product offerings, enriched by digitization, I am confident that Malaysia Airlines will be able to facilitate the demands of tech-savvy customers.” 

The Chief Executive Officer of MAB, Peter Bellew said, “We are extremely excited to be able to welcome the Minister of Science, Technology and Innovation of Malaysia, to officiate iSpace, our very first Innovation Lab.  Malaysia Airlines is currently in the second phase of restructuring. The successful implementation of Information Technology is key to our success especially in improving the airline’s customer experience and overall operational efficiency. Currently I’m happy to share that we have almost completed 70% of the overall planned IT transformation. The transformation began in March 2016 and is expected to be completed by June 2018. “ 

“The iSpace is an important asset for the company and a catalyst in nurturing an innovative ecosystem for our existing and future talent. With an agile and modern working environment, I am confident that we will be able attract and nurture both internal and external talent through innovation.” 

“I am happy to share that there are already a number of impressive prototypes developed by the winning teams of the MABHackathon, which are currently incubated in the iSPACE ecosystem.  Collaboratively, these innovative solutions will enable efficiencies at our critical touch points such as the tracking of special handling passengers, an interactive social media app that offer passengers personalized destination content, as well as an upgrade bidding app which can be used on mobile devices.  These apps have great potential and will add tremendous value to our product offerings. iSpace is fortunate to be enriched with collaboration of  technology partners and academia such as  Tata Consultancy Services (TCS), IBM Bluemix, Amadeus, Telekom Malaysia (TM) and University of Malaya.” 

The airline’s IT transformation began in March 2016 and is expected to be completed by June 2018, covering three main phases which includes, amongst others – the digitization of IT assets and processes, which saw the successful migration of the airline’s Data Centre to cloud platform in the first quarter 2016. 

Second, is replacing and building new business solutions and capabilities to enable digitization of all core business products and processes, this includes the new PSS by Amadeus, the first phase of which was successfully completed in the second quarter.  The company’s largest digital asset will provide travelers a leaner, more agile experience - from booking tickets to pre-purchasing excess baggage, meals, managing loyalty points and bundled offers to suit their individual needs. 

The last phase will establish the platform for continuous innovation and differentiation to shape a new digital airline which includes Hackathons and this innovation space.