Finnair transformation

Juha JärvinenCCO

We decided to go for a full stack transformation

• Where do we want to be and how to benefitfrom the change around us?

• How to build value for our shareholders and customers?

• Where to use digital for more efficiency and employee experience?

• How to serve customers and sell more in thedigital world?

• What skills and culture we need to deliver thecase?

• What technology do we need to deliver thecase?

VISION AND STRATEGY

PEOPLE, SKILLS AND CULTURE

BUSINESS MODELS

TECHNOLOGY

ORGANIZATION & PROCESSES

SERVICES & PRODUCTS

We believe in significant change around us

Digital gatekeepers (Google, FB, OTAs) will provide the next level travel experience and try to own our customers

Ability to digitalize large parts of the value chain enables emergence of “zero-cost ” models

Data and personalization allow boost of top-line and customer experience – airline industry as a whole behind best practice

Intelligent and automated solutions can step-change operational and commercial effectiveness

Airlines increasingly challenging the role of costly, in-agile traditional GDS players and seeking for ways to break the status quo

Digital unlocks operational flexibility as demand forecast quality improves, planning solutions become more intelligent and booking platforms more flexible

The current transportation forms and business models are being reinventedstarting from personal ground transport

New digital business opportunities emerge within and beyond our current realm

Distribution landscape changing fast

SELF-ACTUALIZATIONPursue Inner Talent

Creativity ◦ Fulfillment

SELF-ESTEEMAchievement Mastery Recognition ◦ Respect

BELONGING - LOVEFriends ◦ Family ◦ Spouse ◦ Lover

SAFETYSecurity ◦ Stability ◦ Freedom from Fear

PHYSIOLOGICALFood ◦ Water ◦ Shelter ◦ Warmth

Our transformation program focuses on delivering our business targets

COMMERCIAL DIGITALIZATIONBeing where ourcustomers are, marketing and sellingour services& products in a personalised way

OPERATIONS DIGITALIZATIONNew ways of working for ourpersonnel acrossall functions

CUSTOMER EXPERIENCE DIGITALIZATIONNew ways of deliveringvalue throughnew/improved servicesand interactionsalong the customerjourney

DIGITAL PEOPLE EXPERIENCEDigital awarenessand skills developmentacross the company

INNOVATIVE IT AND WAYS OF WORKING A bi-modal IT model withagile teams

ENHANCED CAPABILITIES-INNOVATION AND DATA

Focusing on data, digital and innovationscapabilities

GROUP DIGITALIZATION Bringing digitalservices to employees and automatingprocesses withingroup functions

VISION AND STRATEGYClear direction and strategy for digitaltransformation

Finnair Mobile app & Finnair.com

• Finnair mobile app development(Android & iOS clients + Apple Watch app)

Design, front-end and back-end development, interfaced backends include Amadeus RES and DCS & Finnair Loyalty

• New Finnair.com & new bookingengine development

Design, front-end and back-end development, backend functionality relies on Amadeus DAPI services

Check out beta.finnair.com! (using a mobile)

Finnair IFE + Nordic Sky & AM Mobile app

• Inflight entertainment(seatback) functionaldevelopment

• Inflight customer portal• Inflight crew app

Design, front-end and back-end development

Aurinkomatkat (Finnish tour operator, owned by AY)

• Aurinkomatkat.fi• Aurinkomatkat mobile app

Design, front-end and back-end development

Finnair Test Program with Finavia and Futuriceat Helsinki Airport

Facial recognition is part of the larger megatrend of biometric recognition, and it will enable travelling where you no longer need any travel documents. When all travel-related information is digitized, it takes less time and is easier to get through the checkpoints at the airport.

▪ Over 1000 Finnair frequent flyers▪ Test program started this month▪ Heikki Koski, VP of Helsinki

Airport for Finavia says:

As a result of in-depth strategy work we defined our digital vision 2020 in the autumn

“Best intelligent travel ecosystem”

Best =

We seek to be world-class with our digital experience. Our customers rank us as one of the best travel experience providers.

Intelligent =

We go beyond simple automation and incorporate AI in our commercial and operational solutions with customer at the center of analytics.

Travel ecosystem =

We view digitalization as a broader, systemic effort impacting how we operate. We will orchestrate a Nordic travel ecosystem.

Thank you!

@juhahelsinki

juha.jarvinen@finnair.com

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Source: presentation of Juha Järvinen, Finnair at the

2017 SITA Air Transport IT Summit, Brussels.

2017 Air Transport IT Summit