Gen-i tipped to be granted wish

By ADAM GIFFORD

Systems integrator and e-commerce specialist gen-i is tipped to win a contract to manage Air New Zealand's desktop computing needs worldwide.

The battle is between the Auckland company, which as Wang won the initial $20 million, five-year deal in 1997, and IBM Global Services Australia, which manages Ansett Australia's desktops.

Compaq, which has supplied the hardware used on this side of the Tasman, was also asked to submit a bid.

Air New Zealand has about 3500 personal computers in New Zealand. Ansett Australia has about 8000 in its home country, and both airlines have a further 1000 or so around the world.

Garth Biggs, chief executive of gen-i, was Air New Zealand's chief information officer when the original deal was done.

The move is part of a wholesale reorganisation of the company's IT needs after its purchase of Ansett Australia.

Air New Zealand spokesman Cameron Hill could not confirm that a decision had been made.

But he did say the airline had chosen an electronic procurement system from German company SAP over a competing Oracle system, and was also extending its use of SAP financials and human resources software.

Mr Hill said it would begin introducing the SAP Enterprise Buyer system from next May on both sides of the Tasman, connecting high-volume suppliers first.

Before then, the company will install a Vantive customer relationship management system it has bought from New Zealand agent Sales Technologies.

Vantive is now part of Peoplesoft, but it continues to be sold separately.

Sales Technologies managing director John Devine said the airline's service management division was looking for a rapid deployment early next year.

SAP New Zealand manager Viv Gurrey said Ansett Australia had been using SAP financials since 1995, and Air New Zealand's engineering division installed wall-to-wall SAP applications in 1998.

But the latest deal was a significant step up.

"SAP has proved itself in the huge number of airlines it services worldwide, including the majority of the Star Alliance members," she said.

"The greatest thing about this is Air New Zealand's commitment to a strategic partnership with us long-term.

"This will give it great access into regional and global marketplaces."

Ms Gurrey said the integrated purchasing and financial system would give the airline greater ability to analyse the profitability of its activities, and it opened the door to more use of the internet.

"It will save them money and help them keep costs under control."

The Enterprise Buyer application is a combination of SAP's own procurement system and the software it has access to under a partnership agreement with American company Commerce One.

SAP will work with Deloitte Consulting to implement the software.