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Wednesday, September 21, 2016

Carlos HernandezEdward Wilson-Smythe

Digital BusinessTransformation for Airports

Trends and Best Practices

The authors would like to thank the following for their contributions to theresearch and insights contained in this document:

• Martin Boyer, Vice President and Chief Information Officer, GreaterToronto Airports Authority

• Dheeraj Kohli, Vice President and Global Lead, Travel & Transportation,Unisys

• Michael Wilson, Managing Director and North America Lead, Travel &Transportation, Accenture

• Emre Serpen, Global Airports Lead, Wipro

Examples of technology innovation and business impact contained in thisdocument are taken from the following airports - YYZ, LHR, LGW, CDG, VIE,ARN, CPH, DEL, SIN – and the following other sources - ADL Research; IATA;IBM; Intervistas; GMR Airports Ltd.; SITA; Wipro Ltd.

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Six Major Levers of Digital Transformation at Airports

Mobile self-service solutions, Bluetooth proximity marketing, socialmedia integration, Intelligent interactive displays, loyalty solutions

Location aware beacons, Real-time flow monitoring and control, GeoLocation solutions providing information and access to airport facilities

AODB, CDM, Mobile / NFC boarding, RFID Baggage tagging,automated building access management, real-time resourcemanagement improve asset utilization and operations efficiency

Integrated digital platform for end-to-end design, management andexpansion of airports including use of BIM, GIS, real time and intelligentasset, utility and energy management solutions

Passenger FlowImprovements

Customer ExperienceImprovements

Airport ProcessOptimization

Airport EconomicLifecycle Optimization

Integrated platforms for omni-channel, dynamic and personalizedcustomer interaction; passenger flow optimization to drive higher retailconsumption; real-time resource allocation to match passenger flow

Revenue Optimization

Technology SolutionsLever

Strategic partnerships to implement business and technologytransformation with little to no capital investment, with a focus ontangible top line growth or bottom line improvements

Partnership Innovations

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Cu

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Process without agent intervention Adoption Potential

Booking

Parking

Online/Curbside check-in

Curbside baggage drop

Security

Border Control (Outbound)

Boarding

Baggage Claim

Technology has enabled agent-freeexecution of key travel processes, and isprogressively eliminating traveler-agentinteraction points at airports

At the Airport

• Provide Wi-Fi, Bluetooth and mobile enabledsolutions.

• Monetize traveler eyeballs using digital signage

• Automated gates using enhanced biometrics

• Augmented experience for the connectedtraveler using:

o Wireless connectivity and virtual office management

o Interactive information displays

o Bluetooth proximity marketing

o Location aware targeted marketing

o Mobile based airport and destination information

Pre and Post Travel

• Social media pages to provide

o Information on travel choices to the airport

o Storm warnings and workarounds

o Information on retail, F&B, Car Park and otherservices

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Predictive analytics and enhancedbiometrics helps airports proactively acton real-time information about passengerflow and make decisions related tostaffing and gate assignments.

At the Airport

• Mobile check-in technologies accelerate check-in and boarding

• Real-time flow monitoring and control ensures:

o Passengers spend less time in non-value addedactivities

o Revenue is maximized by allowing time for retail,leisure and shopping

• Video analytics from surveillance cameras usedto open gates and adequately staff security andborder control lanes

• Location aware beacons provide real-timewayfinding solutions to optimize passenger flow

Pre and Post Travel

• Self-printing and tagging of baggage tags

• Smart parking with mobile pre-booking

• Real-time notifications about bottlenecks, stormwarnings and delays, destination issues, etc.

• Integrated transportation applications

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Optimize operations to reduce operationscosts, improve capacity utilization,improve physical security and reduceissues related to loss and pilferage

• Airport Operational Database System (AODB) tointegrated data from passenger, airline andairport operations

• Predictive analytics using data from AODB helpsin operational and executive decision making:

o Maximizes utilization and throughput of space, checkin counters, security and immigration lines, gates

o Optimizes staff deployment via forecasting andseasonal planning.

o Reduces airline taxi times and turnaround times

o Reduces connection times Integrated capacitymanagement across runways, gates and passengercheckpoints

• RFID baggage tagging reduces rate of lost ormisplaced baggage

• Roaming agent applications help airline andsecurity agents to authenticate travelers

• Centralized command and control centerreceives and intelligently processes security feeds

• Mobile/ tablet based hand-held field data entrysystems for ground staff, to facilitate visibility of:

o Support equipment and supplies

o Power

o Maintenance

Airp

ort

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Integrated analytics across assetutilization, capacity and maintenancecan drive significant lifecycle savings inairport operations, including supportinghigher capacity with existing assets

• Integrated Asset Management and Resource

Management systems to :

o Maximize utilization and throughput of fixed assets

o Minimize maintenance and pilferage

o Ensure environmental compliance

o Assist in recovery from disturbances

• Ensure efficient design, management and

expansion of airports using

o Building information modeling

o Asset Management

o Real time and intelligent asset, utility and energy

management solutions

• Utilize analytics to define strategy for:

o Optimization of use of current assets to defer

expansion

o Expansion of fixed assets (terminal, gate, stand,

check-in, carousel etc.)

o Preventative maintenance of assets

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Targeted passenger segmentation,dynamic passenger flow management,personalized offers and alternativefulfillment strategies can drive increasesin non-aeronautical revenues

• Passenger flow management to optimize dwelltime in retail zones

• Integrated omni-channel retail platforms

• Targeted offers based on individualizedsegmentation

• Tablet and mobile applications to replaceinefficient human interactions

• Dynamic allocation of airport resources to matchprofile of passengers

• Dynamic gate allocation to match passengerprofile and flow to retail outlets

• Passenger wallet for secure and acceleratedretail transactions

• Pre-order from flights for pick-up-on-arrival

• Ship-to-home, ship-to-flight and pick-up-on-return fulfillment modelsR

eve

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Innovative strategic partnership such asZero-Cost TransformationTM and DigitalEcosystem PartnershipsTM drive focus onNet Economic Value AddedTM fromtransformation

Digital Ecosystem PartnershipsTM

• Integrated partnerships for technology servicesacross sustaining operations, business operationsoptimization and digital business innovation

• Operational integration with airlines, retailconcessions, transportation partners andgovernment agencies to realize benefits oftechnology innovation

Zero-Cost TransformationTM

• Implementation of business and technologymodernization at little or no one-time investment

• Gain-sharing models with strategic partners -airlines, retail concessions, transportationpartners, government agencies, technologyproviders - based on tangible revenue growth orcost reduction targets

Net Economic Value AddedTM

• Focus on tangible economic value in terms ofrevenue growth and/or cost reduction

• Move away from traditional TCO approach totechnology cost optimization

Pa

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Developed a technology blueprint, road mapand sourcing strategy to execute on the businessinitiatives, based on gain sharing models topromote alignment and ingenuity

Defined the top strategic business initiativesrelated to non-aeronautical revenues, userexperience improvement and operationalprocess optimization

Over 35% committed reduction in IT operations costs

Identified 20-25% reduction in business operations costs

Identified 10-15% increase in NAR

Deferred C$150M in IT modernization capex

Deferred C$3bn in new investment based onoptimized operations to maximize capacity utilization

THE GOAL: Enable rapid growth with limited capitalinvestment, through a new approach to businessstrategy and technology

Case Study: Greater Toronto AirportsAuthority (YYZ)

Approach:

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Partner and Travel & Transportation Lead

Carlos Hernandez

carlos.Hernandez@avasant.com

Main: (310) 643-3030 Mobile: (469) 524-9564

Principal and Global Lead, Avasant Digital

Edward Wilson-Smythe

edward.wilson-smythe@Avasant.com

Main: (310) 643-3030 Mobile: (416) 566-1335