– SIS SWISS INTERNATIONAL AIR LINES ICH USER GROUP MEETING KUALA LUMPUR OCTOBER 2010

– | Change content using menu "View", "Header and Footer"2 SWISS INTERNATIONAL AIR LINES MAIN TOPICS −How does SWISS as an example of a small carrier deal with the SIS project? −Where do we face problems? −How do we approach them?

– | Change content using menu "View", "Header and Footer"3 SWISS OVERALL APPROACH PLANNING INITIALIZE & PLANNING (JUN – DEC 2010) −Get an understanding of the requirements: Read ISPG... −Kick-Off Meeting (P, C, M) – Invite IT and Business Management −Get an understanding of the current business processes and IT systems involved −Get an overview of current initiatives and projects within the company −Define the scope: which items are included, which items are excluded −Project team setup and resource planning −Overall solution proposal – agree on big picture (e.g. use IS-WEB? Buy new software?) and time line −Analysis of IT system and business process changes of agreed solution −Request For Proposal (RFP) to IT system providers −Cost/Benefit Analysis – Business Case −Work Breakdown Structure – Project Plan

– | Change content using menu "View", "Header and Footer"4 SWISS OVERALL APPROACH EXECUTION EXECUTION (Jan 2011 – Sept 2011/ Sept 2012) −Suppliers to create detail concepts −Define test cases −Software development by system provider −Create a user & user groups concept for SIS −Based on the user concept, setup the SIS member profile −Define how to deal with the migration phase −Test (Sandbox, Certification Slots) −Training of staff for the new processes and software (modules) −Go-Live

– | Change content using menu "View", "Header and Footer"5 MISCELLANEOUS OVERALL SYSTEM PLANNING IN GENERAL −SIS is a „give“ and „take“: You have to migrate Accounts Receivable and Payable at the same time! FOR SWISS −We are able to receive IS-XML (AP) −We are not able – in the beginning – to generate IS-XML  AR: IS-WEB (Project to switch to IS-XML later)  AP: IS-XML

– | Change content using menu "View", "Header and Footer"6 MISCELLANEOUS ACCOUNTS PAYABLES −Incoming miscellaneous invoices as IS-XML −Import IS-XML and all supporting documents into workflow system −Engineering invoices are handled by another system  Implement IS-XML interface?  Forward data from Workflow System? −Post data to Accounting System PROBLEMS −Our internal monthly closure is before IATA closing of 4th period  Accruals are still required! (based on ICH provisional Form 3) −Currently, no automated reconciliation in our workflow system  manual invoice control is required

– | Change content using menu "View", "Header and Footer"7 MISC ACCOUNTS PAYABLES AUTOMATED POSTINGS EngineeringHandlingLM CHARGE CATEGORY / CHARGE CODE MANDATORY / RECOMMENDED FIELDS WE NEED FOR POSTINGS LocationCodeAC RegistrationNoAC TypeCodeCost CenterCost Account FOR EXAMPLE LocationCodeAC RegistrationNoAC TypeCodeCost CenterCost Account JFKHB-1234A PROBLEMS: −Large and flexible table is required to define the exact Cost Center and Cost Account for a specific Charge Category/Charge Code and its M-R Fields −We need to analyze exactly the postings for every invoice type we receive: huge effort −Will all Airlines bill their invoices under the correct Charge Category / Charge Code?  Controlling of postings is still required!

– | Change content using menu "View", "Header and Footer"8 MISCELLANEOUS ACCOUNTS PAYABLES ADVANTAGES −No unpacking and sorting of paper invoices −No scanning of paper invoices −System will automatically propose how to post data to financial accounting system −Quick cost control due to weekly billing

– | Change content using menu "View", "Header and Footer"9 ACCOUNTS RECEIVABLES IS-WEB OR IS-XML? −Currently, we use excel to create invoices −Future with SIS: Option a) Instead of Excel, use IS-WEB Option b) Buy a new system and create IS-XML GENERAL PROBLEMS −Assignment of invoices to Charge Category / Charge Code: E.g.: To which Charge Category/Code belongs invoice with FDM (Flight Data Monitoring)?  ISPG 3.0 explanation of Charge Category / Code still not good enough −Mandatory/Recommended Fields: There are many fields mandatory which currently are not on the invoice: E.g.: ContractNo for Engineering Invoices.  Huge effort to search all the data within company!

– | Change content using menu "View", "Header and Footer"10 ACCOUNTS RECEIVABLES USING IS-WEB DATA CAPTURING WHEN USING IS-WEB −Many fields are mandatory or recommended:  Huge effort to capture invoices on IS-WEB  Risk for errors −Invoices with large detail listings: E.g. Mail, Engineering, etc. Who is going to capture all this data on IS-WEB? Today details are sometimes available on excel :  It is essential to have a csv-upload functionality! −Sometimes, detail listings are provided by external suppliers in PDF or JPG formats: How to “upload” such details?  Reengineer business process! POSTING OF OUTGOING INVOICES WHEN USING IS-WEB −Not all information is on the file (“Processed Invoice Data csv File”) which is needed to do the automated postings −Best solution: SIS should send IS-XML of outgoing invoices to the billing airline immediately after invoice submission to SIS Otherwise, there is the risk that IS-XML is received after monthly closure, and manual accruals are required (depending on the volume, this is not feasible) and figures are not accurate in financial accounting system

– | Change content using menu "View", "Header and Footer"11 ACCOUNTS RECEIVABLES IMPLEMENTING A NEW IT SYSTEM TO GENERATE IS-XML ADVANTAGES −Immediate postings to financial system −System will be available for all departments (marketing, ground handling, engineering...) and they can enter all the services on their own PROBLEMS −Still, all details (and all M-R fields) have to be captured manually (especially if detail data is provided by external supplier)  manual effort, prone to errors! −Investment costs: Without SIS, we would not need to buy a new system −Risk of later migration to SIS  additional costs  delayed benefits

– | Change content using menu "View", "Header and Footer"12 SIS MISCELLANEOUS CONCLUSION FOR SWISS −Savings in Accounts Payable −But: More effort and investment needed in Accounts Receivable (at least at the beginning) −Overall cost-benefit for SIS Miscellaneous??? IN GENERAL −Be aware of changes to requirements during your project work! −You need to have a vision: Where do you want to be in e.g. 5 years? −How do you get there? Which steps will bring you there, to get the maximum benefit of SIS? −On your journey, you will have a lot of questions: Take advantage of the SIS forums! −If you are in an alliance, take advantage of it

– | Change content using menu "View", "Header and Footer"13 SWISS CONCTACT PROJECT MANANAGER SWISS Elias Balmer Telephone:

– | Change content using menu "View", "Header and Footer"14 THANK YOU FOR YOUR INTEREST GOOD BYE AND GOOD LUCK