Digital Transformation of Airports

Diogenis Papiomytis

Frost & Sullivan

11 May 2016

Global Airport Leaders’ Forum

2

Agenda

• What is Digital Transformation

• How does it affect airports?

• Opportunities and challenges

• Developing a Digital Transformation roadmap

3

What is the Digital Transformation all about?

1. Digitisation

• Digitisation of processes,

products and services

• Taking place since the 1980s

• Electronic Media:

Digital Marketing

• Internal Processes:

The Smart Airport

• Products & Services:

The Self-Service concept

• Booking

• Check-in

• Tagging

• Bag Drop

• Security

• Boarding

2. Connectivity

• Enhanced connectivity of

systems, people and things

(Internet of Things)

• System Connectivity:• A-CDM

• Shared Services

• Central databases

• People Connectivity:• Passengers (Connected

Travellers)

• Flow monitoring

and control

• Location-Based

Services

• Employees

• Resource

Management

• Connectivity of Things:• Motorised / Non-

motorised assets

• Asset

Management

3. Data

• Big Data is the result of

digitisation and connectivity

• Big Data Analytics:

• Data Discovery and

Visualisation

• Data mining,

integration,

transformation and

analysis

• Business

Intelligence

• Advanced Analytics

• Sophisticated

solutions

• Predictive

(scenario planning)

• Prescriptive

(advise on actions)

4

The airport environment has many areas where digital technologies

can have an impact

AIRSIDE LANDSIDE IT INFRASTRUCTUREMANAGEMENT PHYSICAL INFRASTRUCTURE

Master Planning

Corporate Strategy

Marketing

Finance

Sustainability

SECURITY

Visualisation & Planning

Architecture & Design

Construction

Capacity Management

PMO & Performance Management

Strategy Planning

4 Ps

Logistics

Billing

Energy & Waste Management

Polution

ATC/ATM

Ground Handling

Approach

Tower & Ground

Aircraft

Passenger

Cargo

Baggage

Catering

Refuelling

Retail

Advertising

Parking

Access & Perimeter

Border Control

Screening

Cybersecurity

Passenger

Cargo

Baggage

Biometrics

Display Systems

Communication

Safety Systems

Mobility

Flight/Baggage Information

Control Centre (AOCC)

Guidance

Passenger Flow Management

Radio Systems

Public Address System

Alarms

Fire Control

People

Baggage

Cargo

Operational Systems

Baggage Handling Management

Cargo Handling Management

Other information management systems

Runway / Apron Management

Database Management

General HW/SW

ERP

Web / Mobile content

Sensors

Data Center/Servers

Other

Facility Management

Maintenance

Interior Fittings

Escalators & Moving Walkways

Floor & Wall

Desks & Counters

Other

Furniture & Fittings

Lighting

HRM

LTE/IP

5

New products and services are driven by digital technologies and

collaboration trends

AIRSIDE LANDSIDE IT INFRASTRUCTUREMANAGEMENT PHYSICAL INFRASTRUCTURE

Master Planning

Corporate Strategy

Marketing

Finance

Sustainability

SECURITY

Visualisation & Planning

Architecture & Design

Construction

Capacity Management

PMO & Performance Management

Strategy Planning

4 Ps

Logistics

Billing

Energy & Waste Management

Polution

ATC/ATM

Ground Handling

Approach

Tower & Ground

Aircraft

Passenger

Cargo

Baggage

Catering

Refuelling

Retail

Advertising

Parking

Access & Perimeter

Border Control

Screening

Cybersecurity

Passenger

Cargo

Baggage

Biometrics

Display Systems

Communication

Safety Systems

Mobility

FIDS / BIDS / GIDSControl Centre (AOCC)

Guidance systems

Passenger Flow Management

Radio Systems

Public Address System

Alarms

Fire Control

People

BaggageCargo

Operational Systems

Baggage Handling Management

Cargo Handling Management

Other information management systems

Runway / Apron Management

Database Management

General HW/SW

ERP

Web / Mobile content

Sensors

Data Center/Servers

Other

Facility Management

Maintenance

Interior Fittings

Escalators & Moving Walkways

Floor & Wall

Desks & Counters

Other

Furniture & Fittings

Lighting

HRM

A-SMGCS

Shared Services

FOD Detection

AFL

GSE

Asset Management

ULD Tracking / Monitoring

Auto-ID

Gate Link

Self-Service

Smart Displays

Predictive Retailing

Smart Parking

Security as a Service

Digitisation

AutomationIntegrated Security

Integrated Fire detection and

building management

Rapid Transit Systems / APM

Electric carriers

AODB

From A-CDM to TAM and PBAM

TITAN

BLE

Infrared

Common Use

XaaSSocial

Material Intelligence

RMS

LTE/IP

RFID

Business Intelligence

3D Simulation

6

Airport digital transformation is accelerating as airlines compete on

the ground

MIDFIELD TERMINAL – ABU DHABI

- US3 billion development due to open in

December 2017

- 700,000 m2

- Interior Features- Resort-style

- Cultural outlets

- Garden

- Technology:- Total Airport Management

- Common Use passenger processing kiosks

- Automated boarding gates

- Innovative FIDS

- Intelligent Baggage Management

- Etihad Airways objective:

- deliver a unique world-class guest experience

Source: Company press releases

HAMAD INTL. AIRPORT – QATAR

- US17 billion development opened in 2014

- 600,000 m2 passenger terminal

- New Passenger Amenity Area: - Museum

- Gym & Spa

- Garden

- Library

- Technology:- Self-service passenger processing

- Common Use terminal equipment

- Automated RFID Baggage Management

- Advanced security screening system

- Runway FOD detection system

- Fully automated cargo storage and retrieval

system

- RFID-based parking and vehicle terminal access

control system

- Qatar Airways objective:- seamless delivery of service and product to

passengers across all stages of the journey

7

Digital Transformation benefits to Airports

1. Process OptimisationPart of the Corporate Business Process

Improvement (BPI) function

• Real-time performance

management (BI)

• LT Capacity planning (advanced

analytics)

• ST Capacity management (pax

flow management)

• Improve employee performance

(RMS)

• Deliver synergies among airport

partners (AODB)

• Reduce bottlenecks (Self-Service)

• Reduce costs (Self-Service)

• Improve safety & security (e-gate /

smart security systems)

2. Business Model InnovationCreation of new non-Aeronautical

revenue streams (part of Ideation

Campaign)

• Customer segmentation

• Creating a completely new

service / complementary product

• E.g. Movie streaming

• Attaching a service on an

enabling technology

• E.g. End-to-end baggage

tracking (free) & pick-

up/delivery (fee)

• Location-based services

3. Customer ExperiencePartially driven by Process

Optimisation (easier pax journey)

and Business Model Innovation (new

products / services)

• Self-Service airport

• Mobile (App-based information)

• Social Media (information /

complaint resolution)

• Smart display systems (e.g.

offering real-time information at

passenger’s own language)

8

Challenges to airports

Lack of standardised architecture• Competing (or complementary) technologies (e.g. BLE-iBeacon / BLE - Eddystone / WiFi /

Video Analytics / Infrared)

Integration of systems

Multiple data sources with no single version of the truth• Airport

• Airline

• Ground handlers / Operations

• Airport partners

Integration of Data through collaboration projects

Threat of Digital Conformity• Inflated IT budgets

• Peer & supplier pressure

• Lack of proper planning

Integration of Digital Transformation in the Airport’s strategic planning process

9

A Digital Transformation Roadmap aligned with your Strategy Plan

AREA OBJECTIVES KPIs BENCH

MARK

TARGET PROJECTS & INITIATIVES

COMMERCIAL

• Maximise non-aero

revenues

• Create unique

experiences

• Seamless pax journey

• Customer

satisfaction score

• Level of Service

• Sales per pax

• Baggage

misconnections

• Develop loyalty proposition

(CRM / Analytics)

• Build e-commerce platform

• LBS Programme delivery

• Digital Signage

OPERATIONS• Ensure safe & reliable

operations

• Maximise throughput

• OTP

• Pax / FTEs

• Baggage

connection time

• Facility utilisation

• Intelligent BH sorting system

• Service agent information /

communication platform (iPad

/ Smart Watch)

CORPORATE

• Drive synergies

among Group airports

• Drive synergies

among airport

stakeholders

• Billing mistakes

• Synergy savings

• Enterprise billing solution

• ERP implementation

• Business Intelligence platform

INFRASTRUCTURE

• Enable digital

transformation

• Ensure secure

facilities

• Security breaches

• IT Network

breaches

• Smart Perimeter Security

• Cybersecurity

SKILLS &

CAPABILITIES

• Right talent to deliver

transformation

• Maximise employee

engagement

• Attrition rate

• Training completion

• Survey score

• Digital Library

• Online Learning Portal

• Resource Management

System

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10

What about the negative impact of digital technologies?

Activity Profit

share

KPI Affected Threat

Aeronautical 30-40%• Revenues per movement • ATC Remote Towers

Ground

Handling 5-10% • Dispute costs /

mishandled bag

• Pax bag tracking

Non-

Aeronautical45-55%

• DF Revenues per pax

• Parking revenue

• Pax dwell time

• E-commerce and m-

commerce on Duty Free

• Sharing Economy

• Pax behaviour change

due to Self-Services

Real Estate 10-20% • Revenues from

construction projects

• Mobility / Smart City

Competitors /

Adversaries

11

Digital Management of

Energy and Waste

Intelligent Buildings

Predictive Retailing

• Smart grids

• Smart meters

• Intelligent energy storage

• Automation

• Advanced HVAC, Lighting

Equipment

• Leverage of big data and

analytics for concessions

• Predictive push notifications

to passengers

• Real time targeted ads

A final word:

Major Opportunities for Airports / Airport Supply Chain

Self-Service Airport

• Full passenger processing

• Security

Cognitive ComputingUAV traffic management

systems

• From Predictive to

Prescriptive to Actioning

• Managing disruptions

• Growing need for

commercial UAV

applications

• Action driven by safety

needs

Shared Services

• Shared ATC / Remote

Towers

• Shared Security

• Shared Terminal

Command & Control

• Centres of Excellence

LO

NG

-TE

RM

Airport UAV Airspace

Security

• Protection against rogue

UAVs

Detection / Tracking /

Forced Landing

SH

OR

T-T

ER

M

Airport Security

• Real-time data analytics

and pattern recognition

platforms

• “Scanning tunnels”

12

Thank you!

Contact me on:

diogenisp@frost.com

Frost & Sullivan is a global growth partnership company, with over

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