IT’s role in Air Cargo Industry in times of economic crisis Akshay Shrivastava | Senior Vice President | The IBS Group

●Current Industry Scenario ●Challenges of Economic Crisis ●What Role Information Technology can play September 23, 2015 preview

How is our air cargo business doing? September 23, 2015 industry scenario

September 23, 2015 industry scenario

September 23, 2015 industry scenario

September 23, 2015 industry scenario “In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen. We have permanently lost 2.5 years of growth in passenger markets and 3.5 years of growth in the freight business.” - IATA’s Director general and CEO Giovanni Bisignani “The industry starts 2010 with some enormous challenges. The worst is behind us, but it is not time to celebrate. Adjusting to years of lost growth means that airlines face another spartan year focused on matching capacity carefully to demand and controlling costs,” “ ”

key challenges Air Cargo Industry in Economic Crisis ●Need to maximise revenues ●Need to improve efficiencies and optimise costs ●Need to improve customer service ●Be able to quickly respond to the changing customer needs and market conditions ●Need to be prepared for the better times September 23, 2015

IT - a key enabler Information Technology ●Business Agility ●Business Information Management ●Process Management ●Communication Management ●Customer Management

Business Agility ●Ability to plan – long term as well as short term ●Ability to assess business performance and trends in real time ●Ability to re-plan, realign and act quickly ●Knowing what is the best business decision under the circumstance and acting on it…before it is too late IT - a key enabler September 23, 2015

Business Information Management ●Right Information at the Right Time to make Right ‘Informed’ Decision ●Single Source of ‘correct’ information ●Ability to Simulate Scenarios ●Historical information and future trends IT - a key enabler September 23, 2015

Business Process Management ●Simplify - Avoid redundancies and duplication of work ●Service Levels – knowing and managing ‘before’ failure ●Managing Disruptions and changes ●Exploiting Virtualization IT - a key enabler September 23, 2015

Communication Management ●Effective communication with customers, partners and suppliers ●Internet and smart mobile devices open up new possibilities ●Save on legacy communication costs ●Timely sharing of information in a proactive manner IT - a key enabler September 23, 2015

Customer Management ●Knowing who your customer is ●Knowing customer’s value to your business ●Understanding your customers’ needs ●Ability to find ways to help your customer (that in turn will help your business) ●Rewarding your loyal customer IT - a key enabler September 23, 2015

key challenges Air Cargo Industry in Economic Crisis ●Need to maximise revenues ●Need to improve efficiencies and optimise costs ●Need to improve customer service ●Be able to quickly respond to the changing customer needs and market conditions ●Need to be prepared for the better times September 23, 2015

IT’s role Need to maximise revenues ●Know your ‘true’ capacity ●Revenue Management with ability to do up front rating and establish profitability ●Have a real time view of the business and react quickly ●Long term planning with short term ‘agile’ action plan ●Innovate and experiment ●Offer new products and services ●New sales channels – Internet and mobile devices September 23, 2015

IT’s role Need to improve efficiencies and optimise costs ●Simplify the business and remove redundancies ●Measure and improve productivity ●Optimise resources – people, warehouses, machines ●Reduces cost of ownership of IT and service operation ●Introduce new cost effective communication and distribution means ●Remove paper - eFreight September 23, 2015

IT’s role Need to improve customer service ●Know ‘value’ of your customer and his needs ●Get closer to your customer – self service ●Monitor and deliver on committed service levels ●Know where your cargo is ●Proactive transparency is key ●Reward customer loyalty September 23, 2015

IT’s role Be able to respond to the changing customer needs and market conditions ●The ‘Google’ customer ●Flexible and adaptable solutions ●Ability to simulate business scenarios ●Realign products and services September 23, 2015

IT’s role Need to be prepared for the better times ●Sweet n Sour ●Balance between cost containment and need to grow ●There is no better time than now to be ready September 23, 2015

IT’s role Your business and IT ●Treat IT as integral to your business as aircraft ●Have IT as a strategic partner and not a supplier or service department ●Do not do IT for the sake of IT ●There are no ‘IT projects’. There are only ‘business projects’. September 23, 2015

“Out of clutter, find simplicity. From discord, find harmony. In the middle of difficulty, lies opportunity.“ - Albert Einstein “ ” Thank you

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