TUI Travel has revealed that it has restructured its group CIO function to help the business become more innovative.
In its 2013 Annual Report, the travel company outlined a number of initiatives it had undertaken to mitigate against the fact that it is heavily reliant on legacy systems, processes and structures, which it said in some cases are “outdated, complex and inefficient”.
Among the changes it had implemented so far, TUI said that it has restructured the group CIO function “to provide the governance framework required to deliver technology innovation.”
TUI's group CIO is Mittu Sridhara, who was appointed CIO and member of the management board in March 2012. Sridhara, who was previously CIO at betting firm Ladbrokes, took over from Jim Mann, who retired after 12 years with the group.
TUI has also instigated a review of project management capability and effectiveness of central oversight to ensure that this governance framework is working and meets the transformational needs of the business.
This is in addition to establishing group IT compliance, finance and legal and regulatory functions to strengthen its internal control environment. .
The emphasis on control and governance is significant in light of the major accounts system fault - caused by a merger of systems - TUI reported in 2010, which caused the company to restate its 2009 financial results by £117 million, and led to the resignation of its chief financial officer (CFO) Paul Bowtell.
Meanwhile, the company is in the process of upgrading its web front-end reservation and finance systems in its tour operator business. It is also looking to combine its UK and German finance shared service centres to create a single transactional back office finance team “working from one common platform enabling us to be more operationally efficient and effective.”
Last month, TUI revealed it was moving from multiple online and back end platforms to a single platform in a bid to cut costs.