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Opening address:Digital transformation in the Cognitive Era
Dee Waddell, Global Managing Director, Travel & Transportation, IBM
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2016 was the airline industry’s
most profitable year ever
There will be 7 billion airline
passengers by 2034 (double that of
2015)
Cheap oil pricesare keeping operating costs low
$29 billion industry net profit forecast for 2017,
representing
8 years in the black
Industry ancillary revenue for 2016 grew to
$67.4 billion
In 2017, passenger airlines expect a
31% rise in demand
Record high load factors for the industry,
hitting 80.5% in 2016
Airlines are experiencing historically-strong fundamentals
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However, are airlines under-estimating disruptive threats?
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The worlds largesttaxi company…
Owns no vehicles
The worlds largestaccommodation company…
Owns no real estate
The worlds largestretailer…
Carries no inventory
The worlds largestmedia company…
Creates no content
Disruption is real and airlines must accelerate pace of digital transformation—particularly around customer and operations
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Cognitive can accelerate digital transformation objectives
More Personalized Services
e.g., custom loyalty incentives,
Individualized pricing, etc.
Higher Revenue per Traveler
e.g., increased direct distribution,
targeted marketing of ancillaries, etc.
Increased Customer Intimacy
e.g., partner-informed 360 degree
view, psychological profiling, etc.
Data
Transaction
Intelligent Operations
e.g., automatic stock replenishment,
dynamic staff allocation, predictive
maintenance, etc.
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How will you transform and thrive in the cognitive era?
Deliver actionable insights Drive program excellenceDelight in data complexity
Data Apps
Execute cognitive programs, not projects
Prioritize business solutions, not technology
Emphasize projects that improve customer travel
Projects
Empower end users with insights, not data
Leverage continuous improvement for apps
Use cloud to innovate around legacy systems
Partner to acquire and improve data
Focus on improving context around data
Standardize formats for consumption of insights