The SwITch Group Airport Service Provider

THE PASSENGER AS NODAL POINT IN THE INTERMODAL LOGISTICAL NETWORK: “The new virtual distribution channels of the Schiphol-Cluster”

Ad Kramer

COMMON USE INFRASTRUCTURES AT VIRTUAL AIRPORTS

AIRPORT-CLUSTER

The listening airport-cluster!A virtual airport-cluster is defined as a system of inter-connected logistical firms, serviceproviders and institutions whose value as a whole is greater than the sum of its parts. Cluster-airport affects overall competitiveness, increased productivity, service innovation,infrastructure management and customer relationship

Domestication/Taming of the ICT focussed at

‘complicated simplicity!Harnassing and exploiting ICT despite ever increasing complexity and volatility!

SYSTEMS INTEGRATION AND THE STRATEGIC USE OF ICT BY (VIRTUAL) AIRPORTS

Traveller/shipper centric airport cluster/community/cityCOMMUNITY PARTNERS COHERENCE

(BUSINESS MODEL)

KNOWLEDGE

COMMUNITY EMPLOYEES ARCHITECTURE/ INFRASTRUCTURE

VALUE

SHOPS

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AIRPORT

VALUE CHAININGCommon infrastru

cture

The listening airport!

Turn the websites to your advant- age by comparative shopping!

Less hurriedtravelling!

The benefits for business partners of physical and virtual proximityto the airport-cluster outweigh the costs!

METAPHOR OF THE RED ROBBINS AND THE TITMOUSES

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FEDERATED/SHARED RESOURCESROBUST SITUATIONAL BUSINESS/ICT-AWARENESS AND ICT-ALIGNMENT

CRITERIA FOR KEY-SYSTEMS

# LICENSE TO OPERATE AS AN AIRPORT# GENERATING REVENU STREAMS (YIELD MANAGEMENT)# STRATEGIC USE BY STAKEHOLDERS

UNBUNDLING AND VIRTUAL DEDICATION RESULT INTO 15 TO 20 KEY/ANCHORING SYSTEMS, WHICH NEED TOP MANAGEMENT FOCUS AND WILL NEVER BE OUTSOURCED!

ICT gives your business opportunities it deserves! Focus on outcome!

STRATEGIC ICT-AGENDA FOR 2000:# Overall unbundling of infrastructure and of financial administration# Virtual Visit Logistics# Virtual Passenger Logistics# Membership Program/Personalizing Engine# Virtual Distribution Channels to Customers# Real Estate/Office Exploitation

It’s like the beaver said to therabbit as they stared up at the immense earthwork of the dam:“No, I didn’t actually build it …………….. but it’s based on an idea of mine!

Development of virtual concepts of dedication, sourcing and knowledgefor the virtual airport-cluster!

In many organizations, the 800-pound gorilla’s that impaire performance and stifle change are ‘culture’ and ‘infrastructure’!

The ‘digital mobile traveller’ is out of sight, but never out of range!He is becoming a node in the airport’s ‘catchment area network’!

HelloPort - Travel Companion Value Shop with follow-me context

Ericsson

eAirport - portfolio

COSTS, SPEED AND CONTEXT ARE THE PRIMARY SERVICE-DIFFERENTIATORS!

# Travel Companium value shop: “HelloPort”

# Distribution channel Websites:

* ‘Telephony’

* ‘Internet’

* ‘Kiosk’

# Common Use Kiosks:

* ‘Logistical Selfservice Check-in Kiosks’

* ‘Multimedia Kiosks’

# Airport Operational Database: ‘Core+’

# Follow-me travel script/profile: ‘Airport PNR’

Travel companion value shop!

TRAVEL COMPANIONVAUE SHOP

Calling-in of data-elements of the airport-PNR with pincode/biometrics!The released data-elements are the basisfor further enhanced service delivery!

Fixed information per journey:@ Address details@ (Mobile) Telephone number@ Pager number@ Email addresses at home and at office@ Credit card numbers with expiration dates@ Nationality@ Passport number with expiration date@ Relatives to be warned in case of emergency@ Office address details@ Telephone-list@ Email address-list@ License plate of car

Variable information:* Travel-mode information* Reserved parking* Door-to-airport-baggage service and vice versa* Tax free purchase* Car rental* Hotel reservation* Telephone-numbers of meeters at arriving airport* Flight details and connecting flights* Travelagency-details* Reservation-number (airline PNR’s)

You never travel alone! HelloPort is your travel-companion and keeps you in touch!

eAirports with a membership- program don’t ask twice!

and still provide you grip on your travel and situational awareness

• Differentiating and diversifying airport-services around the traveller and his baggage (usability)

• The virtual airport is accessible any-time-any-where (learning curve)

• Tailor-made through the airport-cluster (personalizing engine; interactive packaging)

• Focus on retaining customers by usage satisfaction, preventing ‘churn’ because loyalty is evaporating

A true private airportis one that makes you wonder if you’re theonly client!

At Schiphol up to 300,000 consumers are passing physically the airport at peakdays! Tapping into these value streams is of eminent importance: # Travellers:

* inbound* outbound* sourcebound* transfer

# Meeters/Greeters# Railstop-overs# Daytrippers# Visitors# Employees# Suppliers# Business Partners

The emerging core competence of virtual airport is leveraging the untapped potential of the consumer- and freight-flows they already own!

COMMON USE SELF SERVICE CHECK-IN(from March 1999 hand baggage only)

COMMON USE SELF SERVICE CHECK-IN

HOLDBAGGAGE CHECK-IN 1ST QUARTER 2000(Iris-recognition for authentication of the traveller!)

Extension of the kiosk-network in the catchment areato Regional Airports, Hotels and Railway Stations

Common-use selfservice check-in at Schiphol for the KLM/NorthWest/Alitalia alliance with 13 airlines

connected to CoDeCo Departure and Control System

ICT - BUSINESS ALIGNMENT IN THE NEW MILLENNIUM

SCHIPHOL

January 1999

Focus on the traveller’selectronic door!

The paradigm of the tiger and the antilope

All airports are equal not ……….. in responding to or coping with the industry-driversas for the application of Information and Communication Technology!

STRATEGIC INFLECTION POINTS

Value chain outperformingcompetition

Leveraging core competencies

Capitalizing on generic relationships/Strategic fit

Inflection-/way-points Focus

Riscaverse

Risc taking

Riscseeking

Business space/Mission & Identity

LocalpositionMainport

Position in globalnetwork

Leading edge operator

Service agilityListening

organization

External context intravel/transport industry

Internal corporatecontext/Branding

Outcome basedcontext

Commissions

Margins

The culture gets risk averse and you end up investing too much in the old!

# Culture/values # Mindset/lifestyle# Identity # Specific Needs

Core Ideology* Culture* Core Values* Identity (Mission)

Envisioned Future* Brand Value Proposition (Vision)* Service Portfolio’s (Strategy)* Value Added Services (Functionality)

Virtual Brand Match Model MAXIMUM FIT/MATCH

Brand Image

ICT - BUSINESS ALIGNMENTIN THE NEW MILLENNIUM:

Catchwords:# Virtual dedication/Service agile solutions/Brand Identity/ Customer interaction# Inflection Points/Leveraging knowledge # Togetherness/Airport-clustering/Virtual sourcing

Business Intelligence:# Megacarrier alliances# Pipelines/Context/Content# Virtual brand match# Profiled interactive packagers/‘cream-skimming’ new entrants # Travel companion solutions

New entrants are successfully challenging the incumbent-airports that are considering themselvessecure because of their physical location, business model and captive audience!

THE RED QUEEN EFFECT (Alice in Wonderland):

‘It takes all the running you can do, to keep in the same place!’

Joined procurement and joined research & development! Situational leadership on specific functionality in an airport-cluster perspective!

“Sustaining the lead through sustaining the focus”