Kiến thức quản trị
Home Products news Application of 1C:ERP - No-Code technology unlocks the potential of the aviation industry
Mr. Dmitry Shitov - 1C-Rarus
(18.10.2024)

Application of 1C:ERP - No-Code technology unlocks the potential of the aviation industry

The aviation industry has a huge and important impact on most economic-technical sectors and areas of economic-social life. The scale and growth rate or decline of the aviation industry all create a corresponding exponential effect in other sectors and areas. In the period 2003-2018, when global GDP increased by 1%, the aviation industry grew from 1.28 to 2.03%. Due to the importance and complexity of the sector, the management of aviation operations requires large costs and resources, and is increasing, thereby the need to automate operational processes becomes extremely necessary.

Responding to urgent needs, the 1C:ERP solution has been designed and developed, using No-Code and Low-code technology to support highly complex businesses such as those in the aviation industry to automate operations, moving towards comprehensive optimal digital transformation efficiency.

Let's join 1C Vietnam to learn in detail the story of operational automation of a typical aviation business, and see how 1C technology has accompanied the aviation industry to "take off" on the digital transformation journey!

1. What is Low-Code technology? What is No-Code?

a. Definition of Low-Code, No-Code development direction

Low-code and No-code are software development methods based on visual interfaces. Low-code platforms allow users to write very little code according to their customization needs, while platforms with No-code technology do not require users to perform any programming steps.

Essentially, these platforms provide ready-made components, similar to Lego pieces, users just need to select the appropriate pieces and use the drag-and-drop feature, then adjust the parameters and link them together to build a complete solution.

Low-code and No-code technologies bring many benefits to businesses, increase flexibility, save time to develop and maintain technology solutions, help reduce costs and increase operational efficiency, especially in complex industries such as aviation.

b. Comparison of No-Code, Low-Code and Traditional Code technology

The main differences between No-code, Low-Code and Traditional Code platforms lie in the development approach, target user base and the level of customization allowed.

No-code

Low-code

Traditional Code

Development method

Based on drag-and-drop interface

Based on drag-and-drop interface, provides additional customization by code

Manual programming

Target user base

Non-technical users

Both non-technical users and experienced software developers

Technically advanced users

Customize

Prebuilt components and limited customization options

Customize components to your needs through programming steps

Full customization and control with manual coding

2. The role of Low-Code and No-Code in digital transformation

Low-code and No-Code technologies are setting a new standard in software development, bringing many advances to the digital transformation of global enterprises. The emergence of Low-Code and No-Code solutions has brought the ability to solve many "painful" problems of businesses of various sizes from start-ups, small and medium-sized enterprises (SMEs), large enterprises and corporations, or even IT experts.

Some typical examples of applications optimized using Low-code development include:

- Business process management platforms, website and mobile application development, tools to support coordination and connection between departments and divisions such as evaluation management software, etc.

- Integrate with external plugins and advanced multi-cloud technologies, such as machine learning libraries, robotic process automation (RPA), and legacy application modernization.

Examples of applications that fit the No-code development approach include:

- Self-service applications for business users such as sales management software, accounting management software,...

- Dashboard, mobile and web apps

- Content management platforms and data pipeline builders.

3. 1C technology applies Low-code and No-code to create a breakthrough in digital transformation in the aviation industry

a. Main operations according to the management needs of the airline company

Main business

Specific management needs

Profitability analysis of destinations and flights

Flight Hierarchy: Includes Segments, Routes, Sectors, and Flights. Each of these levels can be analyzed to determine profitability.

Analysis of revenue and expenditure by aircraft

- Aircraft-related cost analysis: Includes costs for maintenance, repairs (MRO), insurance, and aircraft rental. These costs must be allocated to the cost of flights performed by this aircraft.

- Cost allocation: Use Flight Hours or Block Hours to allocate costs.

Revenue accounting by fare and seat class

- Passenger type: Adult, child, infant.

- Service Class: Includes classes such as Promo, Economy, and Business. The system must provide the ability to analyze profitability by passenger type and service class.

Cargo shipping record

- Profitability analysis of cargo transportation: Cargo may be transported together with passengers on the same flight and needs to be analyzed for profit separately.

Direct cost of flight

- Fuel and employee salary costs: These costs must be included in direct production costs according to appropriate costing items.

Flight delayed

- Handling of additional costs: When a flight is delayed, additional costs such as hotel accommodation for passengers must be classified as unplanned additional costs and included in the cost of that flight.

No Show Passenger

- Recording non-operating revenue: If a passenger does not show up for a flight because of being late, this will be reflected as a "no show" - a form of non-operating revenue.

b. Expected goals when applying 1C technology

The main goal of the project is to develop a management system without writing any manual programming, the system operates smoothly, does not require a support team to constantly update patches.

1C:ERP World Edition solution was selected to be deployed in the project with the aviation business because of the following advantages:

-Multilingual interface: 1C:ERP World Edition solution supports both Vietnamese and English languages.

-Accounting standards: 1C:ERP World Edition solution simultaneously meets two domestic accounting standards such as Vietnamese accounting standards (VAS) and international accounting standards (IFRS), satisfying the need for flexible application on a global scale of the aviation industry.

-Programming operations: 1C:ERP World Edition solution allows the implementation of business processes without the need for manual programming thanks to No-code technology, helping to limit complex additional programming operations, saving costs and human resources.

-Solution development direction in the project: Enterprises can use the standard functions of the 1C:ERP World Edition solution, thereby focusing on target results, as well as ensuring feasibility in supporting and maintaining the system in the future.

However, when applied in practice, the support from Low-code technology will allow businesses to deeply customize through a few programming steps to fully integrate the 1C management system with other IT systems such as reservation systems, revenue management systems, and flight management systems.

4. How to deploy 1C:ERP World Edition solution on No-Code technology

a. Design solution development process

To implement an effective management system, the process of developing and testing design solutions is divided into the following specific steps:

-Step 1: Identify basic reference data objects such as "Item", "Fixed Assets" and "Field of Operation". This is an important first step to help businesses organize information scientifically, thereby designing a framework and flow for a smooth operating system.

-Step 2: Business processes will be performed based on identified objects, helping to ensure logic and consistency in all activities.

-Step 3: Check the compatibility of subsystems and features with business requirements to ensure that the system fully meets the requirements set forth, bringing maximum efficiency in business management.

According to the requirements of the airline business customer, the ideal outcome is when the problem is solved without additional cost, without system complexity, and without unwanted side effects. Therefore, the above process is repeated until a complete solution meets all business requirements.

Here are some detailed settings in the project solution:

Category

Details

Item type

- Includes "Air transportation PAX" for passenger transport and "Air transportation CARGO" for cargo transport.

- Item characteristics: Including Tail Number, PAX type, PAX class, and No-show.

Fixed assets

- Aircraft information: Includes manufacturer, aircraft model, and other relevant information.

Field of operation

- Flight hierarchy: Includes segment, route, and flight.

- Additional information: Includes flight time (Flight Hour) and distance (Distance).

Carry out air transport

- Production process: Use a production-to-order flowchart to manage flights and air freight services.

- Direct costs: Include fuel costs, employee salaries, and other costs directly related to the flight.

Unexpected flight costs

- Handling of additional costs: When a flight is delayed, additional costs such as hotel accommodation for passengers must be classified as unplanned additional costs and included in the cost of that flight.

Sales revenue

- Management financial accounting: Use revenue management system (RMS) to reflect sales revenue.

Gross profit report

- Report by class and passenger type: Analyze profits by class and passenger type.

- Report by aircraft: Analyze the profitability of each specific aircraft.

- Route reporting: Analyze profitability of specific segments, routes, and flights.

Cost report

- Actual product cost report: Analyze cost structure by aircraft and mission of each aircraft.

Fuel report

- Fuel consumption: Analyze fuel consumption according to flight documents.

Enable international financial accounting subsystem

Set up journal creation options

Gross profit report by class and passenger type

Gross profit report by aircraft

Gross profit report by route

Actual product cost report

Report on aircraft fuel reception and consumption

b. Support capabilities of No-Code and Low-Code technology

The support capabilities of No-code and Low-code technology can be visualized as follows: When you need to go from point A to point B, you can either drive yourself or you can order Grab to help you do it. Driving yourself is similar to building your own software; using Grab is similar to taking advantage of the convenience of the Low-code/No-code platform.

As programming work is simplified thanks to No-code and Low-code, programmers can take on more diverse roles such as system architect, system administrator, software product setup consultant, analyst, trainer… – focusing on designing and connecting modules in the most optimal logic.

In general, when programmers' minds and time are "freed" from tasks that can be automated by Low-code/No-code platforms, they will become more and more creative, build unprecedented tools, and create more breakthroughs in their work.

Thanks to the application of No-code/Low-code technology from 1C, the complex operational characteristics of businesses in the aviation sector have been thoroughly and flexibly resolved. At the same time, businesses can now optimize operations, without requiring programmers to spend too much time writing manual code, helping to reduce costs and increase operational efficiency. Moreover, applying the No-code/Low-code method in the system deployment process not only saves time but also ensures adaptability, as well as makes the future system maintenance process of businesses easier and less costly.

c. The paradox of Low-Code and No-Code technology

Although the ideal goal ofNo-Codeis to have no coding, the reality is that some programming is still required to make the system work effectively in a complex IT environment. In particular, it is necessary to integrate data exchange interfaces, such as airline personnel management, order loading from the flight management system, and sales data from the reservation system. At the same time, it is necessary to monitor the accuracy and relevance of the data to ensure smooth operations. The development of reports and support tools also requires programming to meet user requirements.

However, these tasks fall under theLow-Code umbrella, which focuses on integrating the system without changing the core ERP mechanism. These improvements help the system operate stably without requiring major structural changes. The role of the implementer is not to write code, but to use standard functions creatively and efficiently to solve problems, minimizing the need for complex programming, while ensuring that the system meets business requirements.

To learn more about the 1C:ERP solution developed on the flexible Low-code 1C:Enterprise platform, contact 1C Vietnam today for support.

SEE MORE:

What is a business strategy? Principles and 5 steps to build it

What is ERP? Benefits of ERP software for businesses

Detailed instructions on how to use ERP systems for businesses

Deploy a digital transformation solution for your business today