SITA Euro Air Transport IT Summit

Budapest 27-28th September 2018

Steve Rick – SVP Systems & Transformation

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A Global Network

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A major market shift is underway within the Aviation sector:

• Air travel is undergoing a digital revolution aimed at delivering:

• Smoother traveller experience

• Using digitisation to reduce costs by streamlining and automating processes

• IATA launched a Fast Travel Program aiming by 2020 to offer 80% of global passengers a complete range of relevant self-service options throughout their journey.

• Airlines and airports are investing heavily in the digital transformation of their business:

• Airlines increased their annual spend by 11% in 2017 to c.$18bn

• Airport spend projected to grow 20% to c.$8bn in 2018 with Internet of Things, location based services, cyber security and identity management all major themes

• Self-Service check-in will be #1 method by 2020, with major deployment of self bag-drop, self-boarding gates

• IATA and SITA are championing greater automation and digitisation to drive service improvements

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The digital transformation of aviation

The Global Airport Technology perspective

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• IT expenditure at airports grows as investments are made in infrastructure to keep pace with passenger numbers and airline traffic

• $1 trillion is expected to be invested in new and existing airports worldwide (Source: Boeing 2018-2037

• The physical expansion of airports is increasingly limited by geographic and environmental issues

• Investment being made to maximize the efficiency of infrastructure critical for airport success

• Improved IT systems enables airports to process more passengers more efficiently with the same footprint

IT Services30.9%, $2.6bn

Software 23.2%, $1.9bn

Devices20.6%, $1.7bn

Communication Services

12.3%, $1.0bn

Data centreSystems

13.0%, $1.1bn $8.3bnGlobal Airport

IT Spend(Planned 2017)

Sources: IATA Future of Airline industry 2035- 2017, SITA Tech view 2017, HBR “Can and airline cut turn times” April 2016, Digital Transformation in Airport Ground operations May 2018 Karlsruhe Instof Tech, Roland Berger ACI North America

How will investment in digitisation impact aviation services?

Digitisation will increasingly disrupt aviation services as the number of “human” touch points in an airport journey for both passengers and their baggage are replaced

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1. Arrival

2. Way to check-in

3. Check-in 4. Way to Security & Passport control

5. Security & Passport control

6. Way to Shopping & Gates

7. Shopping & Gates

8. Boarding

How will investment in digitisation impact aviation services?

Digitisation will increasingly disrupt aviation services as the number of “human” touch points in an airport journey for both passengers and their baggage are replaced

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1. Arrival & baggage

2. Automated Check-in

3. Automated Security, biometrics & Passport control

4. Shopping & Gates

5. Boarding

Dickens to digital at Menzies

Standard operating procedures

Standard Operating Procedures are at the heart of our business. We have mapped and established process libraries for everything we do

Key operational systems

We have invested in some leading edge systems that can provide us with competitive advantage (e.g. SITA AMS, SAM & SAP) Adoption of private & public cloud

Innovation

We have systemised our approach to selecting those technologies which can continuously improve our efficiency and enhance our service offering

Integrated IT

We have established a common integrated platform. All our infrastructure is with SungardASfacilitating standardisation and capacity for expansion

Delivering value

Having created a process that captures these elements we need to successfully deploy them to deliver meaningful returns in our business

Standard operating

procedures

Key operational

metrics

Integrated IT

Innovation

Deliver value

Excellence matters in operational culture, delivering the most efficient, reliable services

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Digitised our business and created a platform for growth & performance

Revamping our IT estate

• Completed ITO with Sungard, improved performance & reduced OPEX

• Transformed our aged IT Infrastructure estate, enabler for mergers & acquisitions

• Addressed Resilience, Cyber Security & controls

• Clear systems strategy private & public cloud

• Service Management & continuous improvement

Operational Excellence

Underpinning our Operations

• Integrated Programme of projects

• Revolutionised operational performance through technology

• Rolling out HRiS & LMS

• Optimised rostering and staff allocation in real time

• Deployed telematics, and digital fuel management systems

• Creation of Everything Everywhere (EvyEvw)programme to deliver key systems universally

• Integrated disparate systems created Menzies “Blockchain”

• Resource planning

• Equipment asset, workshop & Telematics

• Intranet, Business Process Library –Menzies Method

• Mobile apps and usability

• Delivering repeatable value

• Based on agility and “the fast will always eat the slow”

Operational Excellence & Systems – Headline plan 2018-20

2018

• Global WAN & VOIP

• O365 & Domain consolidation

• Kronos

• SAP Payroll

• WorkBridge

• Telematics, EBis

• Menzies Method

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2019

• Digital Board

• Globalise HRiS & LMS

• RSMS & Hermes Next Gen

• eHandshake

• Robotics

2020>

• Accelerate roll-out

• Exploitation and value engineering

• Service Excellence

• Automation & Robotics

• Mobilisation

Major Programmes – Re-Engineer WAN, VOIP, GDPR, WorkBridge, HRiS, Payroll, EBis GSE Asset management, SAM Telematics, Digitising Fuelling and fluids, Cobblestone, RSMS & Hermes Next Gen, O365 and Domain Consolidation – Then deliver Everything Everywhere EvyEvw

Controls, Management & Innovation – Tech Services portfolio, Menzies Method BPL,Lean, Mobility, “eHandshake” and “eyes on the business” through MZA Digital Board and Robotics

“Network enabled transformation”

Operational Excellence – Delivering the Vision 2020

Systems – have a plan for the problems trying to fix …………..

…but how do we make these solutions unique for our customers?

• By joining our technologies together and interfacing them with our customer messaging• We can achieve this through our unique RSMS hub to deliver a market leading solution which:

• Delivers real-time, useable information to employees, management and customers• Eliminates the inefficiency and inaccuracies which currently exist within our operating models

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HR a

nd

Fina

nce

Iden

tity

and

Auth

oris

atio

nCo

mm

unic

atio

n

Safe

ty &

Com

plia

nce

EmploymentRecruitment

Skills & Acreditations

People

Ope

ratio

nal

Syst

ems

eArcu/UltiPro HRiS

SAP/UltiPro

Learning

AD

AAD

WorkBridgeRSMS

Message Hub

Airline/

Airport

messagingMessaging

T & A

Clock in/out

Rosters

RSMS Billing

RSMS Operations

Sun Finance

iPos Procurement

Intranet

MORSE

SMART

Menzies Method

Business Process

Library

Payrolls

SAM

Telematics

Ebis

GSE

Hyperion

Authentication for full IT users

Authentication for all employees

Billing

Spares

Assets

RSMS

Fuel/Fluid Mgmt

EvyEvw Delivers end to end solutions for consistent services

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Environmental ReportingImproved data capture, speed and analysis

which enhances reporting

Fuel SuppliersIntegrating directly with suppliers IT & billing systems

Fuel DeliveriesTracking and managing delivery methods; pipeline, road tanker, barge and rail

Bulk StorageManaging fuel farm stocks, reconciliation, loss & gain calculations

TelemetryReal-time analysis of GSE & vehicle activities

AirlinesIntegration with airline operations centres

for planning, billing and real time event management

Ramp ServicesIntegrated suite of tools and systems for managing operations from touchdown to take off

Fuel OperationsOn-vehicle data capture and fully mobile,

intrinsically safe equipment, airside operations and real time flight fuelling

status information

StaffingReal-time dynamic scheduling, rostering

and allocation of Menzies crews and GSE

GSE MaintenanceIntegrated real-time approach to routine

and predictive maintenance and parts management.

eHandshakeFully interactive, paperless refuelling and turn acceptance by aircrew and airline Ops

VoIP/COMMSIntegrated VOIP communications capability via our tablet/smartphone interface – single device operation

Cargo Industry leading cargo solution standardised throughout the network

What have we learnt & can we meet the digitisation agenda

Systems and technology in the aviation industry are business critical and a key differentiator:

Harvard Business Review, SITA Aviation Tech report, IATA and BCG data all confirm the increased investments

being made, to improve performance, customer experience and leverage the internet of things (IoT)

What’s our lessons from our transformation journey?

• Have a plan and strategy but be prepared for course correction

• Be unreasonable and set standards

• Be bold

• Outcomes, outcomes, outcomes

Remember - “The fast will always eat the slow” so………feel the fear and do it anyway

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