Transcript Slide 1

The Growing Role of Information
Technology in Air Cargo
Peter O’Sullivan
Senior Vice President, Cargo & Logistics
Kale Consultants Ltd
www.kaleconsultants.com
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Introduction
A look at the role Information Technology (IT) plays
in both supporting and enabling the air cargo industry
Kale Consultants – who we are
Today’s air cargo industry
Where have we come from?
Industry pressure and technical innovation
How IT in the industry has evolved
Where is the industry heading?
www.kaleconsultants.com
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Kale Consultants
Indian based company, offering innovative and professional solutions and
services to the Travel & Transportation industry
3 development centers in India plus offices in New Jersey and London
900+ professionals, 70+ customers, solutions in 30+ countries
ISO 9001:2000, BS 7799, SAS70, Amadeus certified, TIACA Trustee, IATA
Associate, NASSCOM member. BSE/NSE listed.
We provide:
REVENUE ACCOUNTING
SOLUTIONS
www.kaleconsultants.com
CARGO SOLUTIONS
TRAVEL SOLUTIONS
MANAGED PROCESS
SERVICES (BPO)
SOFTWARE
DEVELOPMENT SERVICES
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Snapshot of today’s air cargo industry*
Global air cargo industry represents 100bn rev ton-miles and
$52bn in direct revenues in 2005
Air cargo companies are investing around 2% of their
revenues in IT - an estimated $1bn
The main priorities in the industry as a whole appear to be:
Projects with proven pay back / cost savings
Process simplification
Solutions that provide market advantage
Strategic infrastructure upgrades (e.g. retirement of legacy
systems)
While the percentage of investment in IT (as proportion of
revenue is decreasing), the number of employees in air
cargo IT is going up.
No doubt, IT investment is immense.
We need to understand what direction it is moving towards
* Information from recent reports, including from TIACA and Airline Business/Sita Survey
www.kaleconsultants.com
Cargo IT Industry – early days
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From early 1970s until mid to late 1990s, IT in the airline cargo industry
was provided by few suppliers For example, in the airline business…
IBM - FAST
SITA hosted
solution
Airline
variants
UNISYS - USAS
Unisys hosted
solution
Airline
variants
Mainframe technology
Variants were created (usually by airline IT departments) and peripheral ‘bolt on’
systems added
Hosted solutions were modified by the Hosted Service providers for common good
System to system interfaces were provided, usually through EDI (Cargo-IMP), and
sometimes through third party communication enablers
Early systems focused on providing the operational basics.
But change was soon on its way – fuelled by a combination of
Industry Pressures, and Technical Innovation
www.kaleconsultants.com
Industry pressures have created new IT demands
Internal Business
Pressures
• Passenger downturn
• Rising operational costs
• Business expansion
Fundamental Industry
Change
Geopolitical Demands
• Open Skies / deregulation
• Market shifts
• Express operators eating into
traditional carrier territory
• Low cost players
• Alliances
• Heightened Security measures
• Governmental decisions, e.g.
sell offs and mergers
•Environmental pressures, e.g.
excessive (and unnecessary)
amounts of paper.
Industry
pressures
Heightened Customer
Expectations
• Commodities 365 days a year
• Delivery on demand
• Raised performance
demands
The air cargo industry has been able to respond to these pressures
thanks to rapid advances in technology
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Technical Innovation enables advantage
Technology is changing RAPIDLY
It creates new possibilities
It can bring advantage in a competitive market
Relational Databases
Improved MIS, Data Mining
Greater awareness; Informed
decisions; Better planning
Componentisation
Flexible and Modular Code
Accommodate business
change; Phased deployment
Internet / World Wide Web
Portals, Browser, J2EE, .NET to market; entices custom
XML / SMTP / Type X / FTP
Multiple channels; peer-peer reach; simplification,
Wireless Technology
Hand Held Devices, RFID
Faster operations; Greater
accuracy; Mobile workforce;
Greater Scalability
Hosted applications
Focus on core business; Service
guarantees; Predicable costs
CASE Tools
Low cost development
Earlier solutions; Rapid software
upgrade; Smarter design
High Bandwidth/Thin Client Centralised Computing
Easy deployment; Expansion of
business; Low cost maintenance
Integrated business; new access
Cheaper communications, greater
The combination of industry demand and advancing
technology has led to a new focus for IT solutions
www.kaleconsultants.com
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The changing nature of IT
Cost Mgt
Strategic
& Tactical
Rev Mgt Service Mgt
Systems
Market Mgt
Allotments
CRM
Scheduling
ULD Control
EDI
Prioritisation
Support
Systems
W/H Mgt
Book / No Book Inventory Mgt
Bookings
Manifest
Reconciliation
Fleet plan
Yield Control
Load Control
IT has moved upward.
First towards “Decision
Supporting Systems”
and ultimately on to
“Decision
Making
Decision
Systems”
Reception
Tracking
Billing
Customs
Paperwork
Stock Control
Operational
Systems
Accounting
Information Technology can do much more than support business
– it can truly enable business and empower the executive
www.kaleconsultants.com
E
v
o
l
u
t
i
o
n
The changing nature of IT
The Strategic and Tactical
Systems need quality, integrated
information to succeed
Cost Mgt
Rev Mgt Service Mgt
Market Mgt
Allotments
CRM
Scheduling
ULD Control
EDI
Prioritisation
Yield Control
Load Control
W/H Mgt
Book / No Book Inventory Mgt
Bookings
Manifest
Reconciliation
Like any robust wall, the
foundations must be solid.
Fleet plan
Reception
Tracking
Billing
Higher IT services
cannot be provided
without a firm base
Customs
Paperwork
Stock Control
Accounting
Information Technology can do much more than support business
– it can truly enable business and empower the executive
www.kaleconsultants.com
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Who fills the IT market?
There are now many IT companies servicing the Airline Cargo Industry
Reservations and Operations
System Providers
Unisys, Kale Consultants, IBS,
Champs, CargoSpot, SITA, etc
Cargo Revenue Accounting
System Providers
Claims Management Solution
Providers
Sabre, Pros, Manugistics, etc
Sabre, Pros, Mercator, etc
Traxon, Tradevan, BT,
Descartes, etc
Forwarder Solutions
Traxon, Cargowise, Tran-Soft,
Fountainhead, Freightdata, etc
GF-X, CPS, Ezycargo
Kale Consultants, Mercator,
CDM, SITA, Sabre, ACCA, etc
Revenue Management
System Providers
Connectivity Enablers
Cargo Portal Providers
Kale Consultants, Magic,
ABS2000, Lufthansa IS,
CargoSpot, etc
Other solution providers
Customs Interfaces:
DG Solutions:
Security Systems:
Staff planning:
ULD Management:
Syntegra, MSSI, LH IS…
Channel Solutions…
Indian Technologies…
Sabre, Qintic…
SITA, Kale, Unitpool, etc.
The list is growing
Good news for the air cargo industry !
www.kaleconsultants.com
Ground Operations Solution
Providers
Companies providing Hosted
Service Systems
Unisys, Kale Consultants, SITA,
Champs, etc
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Where are we heading?
ACCELERATED LEGACY OVERHAUL
Legacy systems being replaced
PORTAL BASED SOLUTIONS
Users can sign up, connect, and use.
PROFIT MANAGEMENT SOLUTIONS
Revenue and Cost Management
Revenue based decisions
B2B SOLUTIONS
Opening up the freight market
INTEGRATED SOLUTIONS
Less ‘interfaced’ solutions
MOBILE COMPUTING
STRATEGIC SOLUTIONS
Based on high quality data
Revenue and Cost Management
Access anytime, anyplace with PDAs
HIGHLY CONFIGURABLE SOLUTIONS
CUSTOMER CENTRIC SOLUTIONS
Web solutions that allow customers
to directly access information
More information pushed out to
more customers
Aggregation of customer
information for sales people
www.kaleconsultants.com
Allowing off the shelf solution that
can be tailored
INCREASED EFFICIENCIES
Earlier recognition of service failures
e-freight
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Kale Consultants: enabler of air cargo growth
Business Strategy and IT Alignment
Kale helps forge / shape direction of the air
cargo business by providing innovative
solutions to industry problems
Business
IT Enablement
Kale ensures that ensures that
potential business strategies
and business opportunities take
full advantage of emerging
technology capabilities
E
N
A
B
L
E
S
IT
Alignment
IT
Enablement
Information
IT
Technology
Management
Management
& Delivery
Delivery
&
D
R
I
V N
E A
S B
Business/ IT Alignment
Kale ensured its IT activities
and investments are tightly
aligned with business
priorities
IT
IT Management & Delivery
Kale’s IT resources are structured, positioned,
sourced and managed for efficient, effective and
predictable delivery of high quality IT solutions
www.kaleconsultants.com
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Thank You
www.kaleconsultants.com