Figure 1: Evolution of digital transformation in passenger processes, Figure 2: Evolution of digital transformation in internal airport processes. Widely accepted as a disruptive force which changes management mind sets, business processes and business models, digital transformation has been evolving for decades – ever since the first automated baggage sorting systems appeared in the 1990s and the first e-ticket was issued in 1994. This mostly requires a phone call or direct communication between these stakeholders to constantly monitor the temperature,” he said. La digitalisation a changé la perception du travail, les attitudes des consommateurs, les réalités des marchés et même les textes des lois et des normes. “Most if not all airlines still handle a lot of paper documents and they have dedicated teams that process these documents. We focus on the processes that can bring the highest return on investment in each case. Businesses have been mostly keen to shift online and use digital marketing tools such as websites, emails and social media to communicate and manage customer relations. Soon the cargo network of Air Canada will be managed by this digital solution. Digital service providers are reporting an unprecedented jump in traffic and demand while sales are happening in the record time frame. Intradco Global successfully transports over 3,000 pigs and cattle, Alexandre de Juniac lists down IATA's key agenda for 2021, Ashwin Bhat appointed chief commercial officer of Lufthansa Cargo, APAC sees 3.2% growth in air cargo biz between Oct-Dec: WorldACD, cargo.one raises $42 million in Series B funding as demand for air cargo soars globally, Swiss WorldCargo finalises preparations for transport of Covid-19 vaccines, Kuehne+Nagel gets contract for Covid-19 vaccine logistics in Germany’s most populous state, CCT provides critical thermal packaging for Operation Warp Speed's Covid-19 vaccine rollout, Cold Chain Technologies Operation Warp Speed. Digitalization presents regions such as the Middle East the opportunity to leapfrog over manufacturing strongholds into pole position in the age of Industry 4.0. It’s the most comprehensive source of market intelligence in the world, with around 50 per cent of content translated from non-English sources. What impact will digitalization have for the future? It is important to note that the “Self-service Airport” is part of the wider “Smart Airport” concept, which looks at the impact of digital technologies on all internal and passenger-related processes in the airport environment. Reduced capacity and increased demand took the prices to record levels. The following figure shows some of the smart airport applications available today. This was followed by mobile phone applications with or without interactivity and presence across the social media channels. Figure 3: Examples of Smart Airport Applications. The ability to telework from one day to the next with access to all data resources and the effective use of team collaboration tools has demonstrated the high degree of digitalization that has already taken place.”. The way aheadThe air freight industry still has great opportunities to digitise the processes, procedures and how shippers, freight forwarders and airlines interact. As a result, digitalisation is increasing the reliability and efficiency of aerospace systems across the world. Published on - September 2018. Besides, the various lockdowns and new social distancing practices have resulted in difficulty maintaining staffing levels in some areas. The impact of lockdown was minimized for airports with community systems. By Svend Holme Sørensen, GateHouse SatCom & Klaus Lambertz, Verifysoft on November 24, 2020 Opinion. Now, if you are flying with different members of the world’s largest airline alliance, data you provide other airlines can be shared. Digital transformation of airports is intensifying and manifested by digitisation, connectivity and big data trends. Digitalization determines the future of the economy and society. “Electronic documents like the e-AWB have turned out to have an unintended benefit: the absence of the need to physically touch paper documents that have been touched by others recently. Should Embark on Digitalization Higher Customer Expectations. Instead, we distribute the prices and make sure they are live. Aviation Industry is undergoing a revolutionary transformation with technological innovations propelling virtual reality to actual futuristic experiences. Learn more. In April 2020, AirAsia’s cargo arm Teleport launched Freightchain, the world’s first e-booking platform powered by blockchain. This requires the physical presence of these teams, which can be up to 100 employees in some cases. Covid-19 has only reinforced the need to be resilient and agile. When looking at the overall rate of digitisation adoption, airports are considered laggards compared to other industries. The retail industry followed. We are partnering with digital players in the sales channel and cargo payments space to integrate and add value to the customer. Accelerating digital transformation in freight industry – the Covid-19 impact. “Since the lockdown, we are receiving requests from ground handlers, airlines, airports and charter operators to transform their operations into the digital arena due to reinforced need of digital solutions. For instance, you could, in theory, select a seat on an upcoming Singapore Airlines flight while using your United Airlines app. CTiX – A new level of checkpoint security, Looking forward to 2020 & beyond: top trends for airports and aviation, Upgrading from Standard 2 to Standard 3 approved systems, enhancement of non-aeronautical revenue streams, which are now becoming commercially significant for airports, introduction of new business models (e.g. Airlines do not need to reinvent digitalization; they should rather secure the help of competent, innovative partners to implement the innovations made Research and development will be undertaken in close collaboration with the aviation industry. Thanks to digitalization, industrial production can now become more flexible with networks spanning the world. Digitalization and Industry 4.0 in the Aviation Industry (first abstract of a publication to be presented in early 2017) The digital revolution in this industry really begins from the end customer’s perspective! Overall, the infusion of digital technologies in aviation management and airport operations has had a positive impact for all stakeholders by supporting: It is now widely accepted as a disruptive force which changes management mind sets, business processes and business models, but what do we mean by digital transformation? Digital content is now acquired from airport partners or directly from a centralised database; or alternatively created by marketing teams and distributed via online and mobile media to third parties. Airlines is only one part of the whole travel ecosystem. Connected traveller; smart airport; self-service airport; in-terminal location-based services; management process visualisation; and collaborative decision making have all become commonplace terms in the aviation industry. It turned out that publishing contact and connectivity details, and access them of your partners is a highly important service, in particular when the supply chain is disrupted and needs to adapt and when digital communication is fast and safe,” he continued. Experts foresee deployment of autonomous feeder vessels, for example, to ferry containers along known routes of limited distance in the near future. “In January we launched a new service, EPIC (Enhances Partner Identification and Connectivity), to manage system connectivity between air cargo stakeholders. One big digital ecosystemThe crisis is asking for all stakeholders to come together and work collaboratively. It has become important for the forwarders to understand the pricing in a very lively manner. Digitisation of processes, products and services is not a new driver but has been around in one form or another, since the advent of the Internet. This is resulting into innovative and hitherto unimaginable services, thanks to the technological breakthroughs and remarkable transformations. “The WebCargo platform offers instant capacity availability and pricing of all 14 airlines. What can drones and UAVs do during a pandemic like Covid-19? Air cargo in the time of a pandemic – the now, the next and the new normal. With its research portfolio, the new institute will play a central and vital role in this and also be involved in DLR's key aeronautics, energy and transport areas. CEO Alan Klapmeier, Engineering Director Ryan Jennings and others discuss how they combine a passionate focus on customers and a fully digitalized process to develop a light, twin-engine jet that combines high performance and low cost. One of those mediums will inevitably be digitalization. in Airline Leader, issue 37, Nov-Dec 2016: “Disruption in the airline industry: It is coming, faster and bigger than you think” Removal of the restrictions would allow meaningful cross border mergers and acquisitions on a global basis and lead to significant benefits to the airline industry… The online freight payment tool PayCargo launched a dedicated Canadian Dollar platform in Canada in April which enables users to pay either in Canadian or US dollars after the registration. No one’s saying that digitization is the cure-all for air cargo’s issues, but it’s a fantastic start. The air cargo industry is no exception. Airlines, freight forwarders, airports and ground handlers are playing their part in innovating and finding solutions. In March 2014 he was promoted to Regional Managing Director as Head of Mature Markets for Asia Pacific being responsible for ANZ, Hong Kong, Japan, Republic of Korea, and Singapore. Tracking & visibility with RFIDThe biggest challenge for forwarders and ground handlers at the moment is the amount of urgent freight being tendered and the lack of capacity to move it as quickly as needed. All Rights Reserved. Today however, with non-aeronautical revenues becoming a driving force and passengers an increasingly important customer segment, airport digital marketing is growing more sophisticated. The airline accesses Lido Flight 4D on Lufthansa Systems’ cloud platform | Digitalization enhances adaptability in unprecedented circumstances. But until airlines rid themselves of paper, decades-old problems will continue. The airline noted that it has deliberately launched Freightchain within global supply chains during this period of uncertainty, which was caused the Covid-19 pandemic. Over the past 10 years, a number of business terms have come into common usage in the aviation industry. Learn more. According to recent research by Frost & Sullivan, digital transformation programs in the airline industry could generate an incremental value of $5-$10 for every passenger, annually. Accenture provides consulting services to travel, airline, & hospitality companies to outdo unprecedented competition in the new digital landscape. We are already very strong in Europe and are trying to reinforce our presence here. Challenges of Digitalisation in the Aerospace and Aviation Sectors Kirsten Lamb, CDBB Introduction Building on the challenges highlighted in Report 2.1, this report describes digital transformation in aerospace and aviation, and identifies some challenges that are likely to have parallels with the architecture, engineering and construction (AEC) sector. ONE Aviation uses Siemens software to help break the economic, regulatory and learning barriers in the general aviation industry. Exhibit 3. Incorporated in England No. WebCargo by Freightos is a digital software company that gives access to live capacity, pricing and allows e-bookings for freight forwarders with global presence. 1.2 In the civil aviation sector, as in other industrial sectors, paper-based processes have been progressively replaced by digital processes. Over the past 10 years, a number of business terms have come into common usage in the aviation industry. Increased digitalisation critical to rebuilding passenger confidence That’s according to our comprehensive Passenger Confidence Tracker, a survey that reflects the views and attitudes of flyers from across the globe. It has already started a few years ago and the last two years saw bigger steps and quicker progress in this direction. About; Activities and concepts; Projects and initiatives; Tools; Deliverables; Highlights; About. We assumed with Covid-19 this new service would take a backseat whilst the industry deals with its operational challenges. Cameron joined Smiths in 2003 serving in various sales and management roles leading market based teams across Asia Pacific from Singapore. “To move life-saving drugs, like the hydroxychloroquine, the forwarder has to deal with the customs declaration, send airway-bill to the airline and pay handling charges to the airport. The world is in a virtual war against the Covid-19 pandemic. Before you continue, download the … This should have a positive impact on the economy, but is the aviation industry prepared for such a boom? Author - Kiran Koteshwar, Chief Financial Officer, Spicejet . We don't establish prices. Airline Industry Taking off with Digitization Airline Industry Taking off with Digitization Airline Industry Taking Off With Digitization. Home » Air Cargo » FROM MAGAZINE: Digitalisation is the only way out for air cargo. COVID-19 impact; We offer; Search; Digitalisation and information management Supporting quality data exchanges for high-performance aviation. Virtually all industries are now affected by the different fields of digitalization and digital transformation. While commenting on the need for airlines to work together he said “Even though the freighter-only airlines are doing an exceptional business, they also have challenges as they are dependent on feeder flights of smaller airlines that bring capacity from different areas. They all relate to the ongoing digital transformation of airports which, overall, is considered to deliver positive support for Research shows that traditional travel retail is being challenged and major growth is unlikely. Carriers the world over were making strides in realizing their digital transformation strategies, investing in cloud services, data centers, wireless onboard crew services, and automatic data management – key components in achieving digitalized airline operations. Typically they will manually verify the correctness of the data and key in the most important aspects into their systems. Blockchain, mobile and new currenciesMany other promising developments are happening in the digital realm of air cargo which ranges from blockchain-based booking to introducing new currencies to fintech platforms. The aerospace industry is growing at an exponential rate. Digitalisation is the answer for airlines The Internet of Things (IoT). Rapidly changing purchasing behavior by customers, the evolving E-Commerce industry and digitalization are disrupting traditional revenue streams and business models of airports and airlines. Amar More, chief executive officer, Kale Logistics Solutions said “Air cargo community systems are big projects which will take time and several stakeholder interactions to implement it. Hamad International Airport offers location-based promotions to passengers walking through the terminal), overall improvement in the passenger experience. aviation industry to benefit from the ever developing and dynamic digitalisation platform. This is the first in a new series looking at digital innovation and transformation in different B2B sectors aimed to inspire business-to-business marketers, this post from regular B2B marketing commentator René Power looks at how digital technologies are being deployed within the blossoming … Our GMAX portal has all these things articulated into a single platform. They have reported increasing demand and traffic in their platforms while sales are getting completed in record time. Most airline apps offer the same basic functions, including check-in and push notifications for gate changes; some have advanced ones, such as a status-on-standby list and the ability to rebook cancelled flights. This puts the airline industry in a different position than more experimental markets like e-commerce or media. Trends, Digitalisation 02.01.2018. According to the company, though the plan to introduce the Canadian dollar was an earlier plan, it had to fast track it due to the Covid-19 pandemic. The new solution is one of the small modules separated from the company’s bigger air cargo community system. For instance, Air New Zealand has explored mixed reality, as well as simultaneous translation for its multilingual customer base using Google Pixel Buds. Auth0 Docs Implement Authentication in Minutes; OAuth2 and OpenID Connect: The Professional Guide Get the free ebook! This digitalisation process is expected to unlock the performance expectations envisaged in the SESAR Concept of Operations (CONOPS), thus creating the Digital European Sky, advocated by the whole European aviation industry and depicted in European ATM Master Plan, the Airspace Architecture Study and the Wise Person Group recommendations. How digital innovation is engaging audiences and improving customer experience in the airline / aviation sector. Aerospace leaders and airline executives from around the world gathered to discuss the future of aviation, and 537 people took part in a poll about the COVID-19 recovery. While WebCargo already has 14 airlines on their platform, the company expects 11 more to join by the end of this year. Digitalization held center stage in the aviation industry’s collective consciousness before the shock of COVID-19. CAPA publishes more than 400 global News Briefs every weekday, covering all aspects of the aviation and travel industry. “Ground handlers are the airline representatives. there are different options airlines can start with, such as modernizing current products and services with digital functions or integrating additional digital solutions into the existing portfolio. Pricing, capacity and e-bookingDigitization hasn't started two months ago. Besides, ongoing processes, the dashboard shows the logistical and technical milestones accomplished, as well as notifications that inform users about rejected electronic dangerous goods declarations (eDGDs). Digitisation has also affected in-terminal operations, with the installation of digital Flight Information Display Systems (FIDS), the proliferation of digital wayfinding signage and digital advertising screens. Advances in computer technology are cited very often as a major disruptor in almost every major industry. Digital technologies and services have taken the aircraft cabin by storm, and the digital transformation is now headed for the cockpit, allowing aircraft to share and receive data online during flight. Air cargo’s dependency on paperAir cargo industry is largely a paper-based industry. Novelty and glitz aren’t important here, so these features should reflect industry best practice. In 1995, Lufthansa outsourced its IT department to its newly founded subsidiary, which has experienced a remarkable development in recent years. © Copyright 2020 Smiths Detection Group Ltd. A Part of Smiths Group plc. (See Exhibit 1.) The air cargo community is facing several challenges including the reduced capacity, a sudden demand surge particularly for medical supplies, absence of onsite manpower and climbing freight rates. In an industry where the business environment has turned on its head and become a supply-constrained environment, our AI/ML-enabled revenue management solution is helping airlines make the best decisions on pricing and selling.” he added. In September 2010 Cameron became Managing Director of Australia and New Zealand and Director of Product Management based in Sydney leading the ANZ business and product development for the Integrated Systems product line. Airport digitisation started with the emergence of digital marketing and the development of airport websites and e-commerce platforms. We now talk about the “connected traveller”; the “smart airport”; the “self-service airport”; the potential for in-terminal “location-based services”; management “process visualisation”; and … According to Gartner, by 2020 there will be 5 billion connected things in use; according... Blockchain. Michael Morey, vice president, advanced cargo solutions, Cargocast said “RFID technology has reduced significantly in cost while improving accuracy and performance. “I don’t believe the current players in the air cargo industry are open to digitalisation… Overview of the airport construction industry. Thus IBS is opening up its integration capabilities to make sure that all these players will become one big ready-to-use digital ecosystem.”. CAPA News Briefs. Going forward, self-service will initially act as a complementary service to the more traditional customer service agents, particularly acting as a service recovery option. Beyond these hubs, however, the path towards digitalisation is being beaten at a markedly slower pace, says Martin Mommersteeg, founder of Netherlands-based supply chain and operations specialist M3 Consultancy. So we have broken down the system into smaller modules to help different stakeholders to interact digitally for separate operations. This is creating pressure on storage and handling capacity in the warehouses. With Industry 4.0 you have to ask yourself: “Is there a smart way of linking my data to improve the manufacturing process?” And this in turn only makes sense if the processes behind it are integrated as well. But … “Tracking the progress towards unlocking the value in digitalisation is … The software also enables the people to process these requirements 24/7, particularly during Saturdays and Sundays,” he added. Digitalisation and the continued expansion of its partnership programme are two key priorities for Cathay Pacific’s new head of cargo. Airport employees were able to process the paper while they are working from home.”. Electronic documents would have allowed this work to be done remotely while teleworking,” he added. Airlines are rapidly reinventing the passenger experience with contactless journeys focused on traveler health and safety to make customers feel comfortable flying again (Exhibit 3). What’s the current impact of Covid-19 on air logistics for life sciences and med-tech industries? “Our platform ‘Cargo Virtual Connect’ has tried to make this one seamless transaction across players and systems through exchanging instructions and responses digitally. “Digitalisation was already a necessity for the air cargo industry but it has become a must due to Covid,” he said. The airline industry worldwide was heavily regulated (until about the end of the 1970s), preventing management to develop and implement traditional marketing strategies relating to, for example, price-service options. Yet incumbents too can capture significant value from digitization. Regarding how community systems could mitigate the effects of lockdown he said “The airports with our next generation community systems were able to operate virtually, with very less direct human interaction, and in effect more efficiently. July 23, 2018. Nevertheless, the airline admits it took the decision to ground its fleet of A380s because of the effect the Coronavirus outbreak was having on global travel demand. The future: Will life sciences air freight supply chain be completely different? Nevertheless, digitalisation and automation offer huge potential in the airline sector, and not least of all for improving safety. For some, it’s ensuring the accuracy of actual manifested goods being loaded (or unloaded). The airline industry is using the current digital environment to experiment with cutting-edge technology to enhance the customer experience. In the era of fast-changing technologies, the future may be unpredictable, but one thing seems certain – the passenger demand for air travel will continue to grow. PING is one of such modules that help GHAs and freight forwarders in document processing which has received a tremendous demand from different geographies including North America, Europe and the Middle East.”. The platform helps on-demand bookings in real-time through submitted bids and then validates them using blockchain algorithms. For example, we have many airlines transforming their passenger flights for cargo-only service using both belly space and main cabin which could be readily available in our platform,” he said. In fact, by 2028 it is predicted that upwards of 38,000 aircraft will be in service, a vast increase from the 26,000 being used today. Since digitalization has been the main impetus for rethinking their future strategies, organizations need to look across industries and evaluate their services in terms of the broader business landscape. Airlines aren’t protected: travel start-ups, with $5.5 billion in venture-capital funding last year—up from $0.5 billion in 2010 1 —hope to succeed with innovative solutions focused on distribution and customization. In March 2016 Cameron was appointed to the role of Global Market Director – Aviation based in Detection HQ in London. We strive to provide individuals with disabilities equal access to our website. Digitalisation and virtualisation are strategic cross-sectoral topics at DLR. Rapidly changing purchasing behavior by customers, the evolving E-Commerce industry and digitalization are disrupting traditional revenue streams and business models of airports In our view, Industry 4.0, or digitalisation, means making work easier for … This role works to the VP of Strategy and Marketing. Digitalisation in airport construction. In some cases, the air cargo paper documentation is shipped separately from the cargo via express couriers. The impact of digital transformation on airport processes, business models and passenger experience. All of these terms relate to the ongoing digital transformation of airports which is not really a new trend but something which has been evolving for decades. The digital evolution of airports, airlines and other stakeholders in the travel industry; Why digitalization of the airport industry has become unavoidable; AOE’s OM³ Solution will change how the aviation industry does business; AOE and Fraport win Award for Best … In the wake of this crisis, the company gave free access for all IATA accredited freight forwarders to its eBooking platform. Meanwhile, the digital solution providers came out with new software, redesigned current platforms and on-ground collaboration. The dichotomy of the African continent is more pronounced with the contradiction in that while telephony penetration is at a very high level, access to the internet per capita is at the lowest level. What's the current impact of Covid-19 on air logistics for life sciences and med-tech industries? These tools have gradually become more sophisticated, allowing interaction with the general public and no longer confined to one-way communications. But the IT solutions provider for the logistics industry, IBS software is looking into two levels of collaboration: both between the digital players and the air cargo stakeholders. Every warehouse has specific pain points and other areas where best practices are already implemented. Electronic documents don’t have this issue, said Mulder. The most important trend is the “self-service” airport concept, which is concerned with the digitisation of every touch point on the kerb to gate passenger journey. In some cases, the focus is on managing the consolidation of shipments.”. in the aviation industry itself. Table of Contents. From industry to logistics and energy, the digital transformation is a reality in every sector. The company deemed it was not “commercially or environmentally justifiable” to operate such a … Asia, led by India, is witnessing very significant and quick growth. Diego Poza Head of Content. Copyright © 2020 - The STAT Trade Times. If the slow pace of adoption and reluctance among stakeholders to jump in was the talk before, the pandemic is changing this. Accenture provides consulting services to travel, airline, & hospitality companies to outdo unprecedented competition in the new digital landscape. Ashok Rajan, senior vice president and head, Cargo & Logistics Solutions, IBS Software said “We in IBS Software are trying to widen our partner ecosystem. In the same way, that business process re-engineering was big in the ’80s and offshoring big in the ’90s, full digitalization will prove to be a business case for cost reduction. Altogether these changes demanded digital solutions for this industry to move forward. This strategy is the foundation and shows a company the business models that could spell success in the future. When it comes to the airline industry, it seems to be clear that taking a holistic view on customers becomes a must. Speaking to the airline’s Cargo Clan publication, Cathay Pacific’s new head of cargo Tom Owen outlined how he saw the cargo business progressing. This isn't exclusively due to Covid-19, but the pandemic has accelerated this move.”. The impact of digital transformation on airport processes, business models and passenger experience. What projects are Delta cargo working on that will support industry digitalisation? Mulder of IATA said “In what is proving to be the biggest economic crisis in aviation since the second world war, many transport companies and their partners are forced to cut back as a matter of survival. Is also another place we could see growth coming in, ” he added breakthroughs and remarkable.... Industry in a virtual war against the Covid-19 pandemic and make sure all... Recently Portugal 's flagship carrier TAP air Portugal entered into a single platform see growth coming in, ” continued. 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