1. Digital Transformation Programs - Airport priorities and the Airport of ARN Conference 14 March Orlando, USA
Diogenis Papiomytis
Director Commercial Aviation
Frost & Sullivan

2. Topics
The Big Picture: Connected Aviation
Airport Digital Transformation in 2018
The Airport of 2040

3. The Big Picture - Connected Aviation Landscape -

4. Connected Aviation Industry players are moving towards Integrated Platforms
PLANNING & SCHEDULING
SALES & DISTRIBUTION
FLIGHT
OPERATIONS
TECHNICAL OPERATIONS
DISRUPTION
MANAGEMENT
MARKETING
BACK OFFICE
Network & Fleet
Merchandising
Content Mgm
Flight Assurance
Engineering
Crew / Schedule Recovery
VALUE
ERP
Pricing & Forecasting
Ancillary
Loyalty / CRM
Fuel Management
Materials
SOFTWARE /
SYSTEMS
Revenue Management
Baggage
Pax Re-Acc
Revenue Accounting
Distribution
Merchandising
Configuration
Pax Communication
Crew Management
PSS
E-Commerce
Ground
Planning
Risk Management
Cargo Management
Direct Connect
Mobility
FLIGHT OPS SUITE
MRO MANAGEMENT
DISRUPTION MANAGEMENT
Project Mng
ASSET MANAGEMENT
COMMERCIAL MANAGEMENT
DIGITAL MARKETING
INTEGRATED OPERATIONS
Integration
Commercial Planning
Single Customer View
Health Management BI
ST/ LT Planning
Operational Insights
Operations Insights
CORPORATE BI
Predictive
Demand AI
Predictive
Performance
Predictive
Maintenance
Chatbots
Predictive Disruption
OPTIMISATION
Planning Optimisation
Personalisation (Dynamic Pricing / Merchandising)
Operational Optimisation
PASSENGER / LOYALTY / SHOPPER
DATA PLATFORM
OPERATIONS DATA PLATFORM
VALUE
Personalisation
(Dynamic Retailing/ LBS / Pricing)
Planning Optimisation
Operational Optimisation
OPTIMISATION AI
Predictive
Demand
Predictive
Performance
Predictive
Maintenance
Chatbots
Predictive Disruption
RBS
Location / Video
Analytics BI
DoO / LT Simulation
Super PNR
Security OCC
AODB
Operations OCC
CORPORATE BI
ASSET MANAGEMENT
TOTAL AIRPORT MANAGEMENT
Integration
SOFTWARE /
SYSTEMS
TOTAL PASSENGER MANAGEMENT
Security / Screening
Turnaround / A-CDM
Forecasting
Revenue Accounting
Scenario Planning
CUTE/ CUSS
Pax Welfare
Passenger Flow
Communication
ATC/ATM
Facilities / Energy
Resource Planning
SS Systems
E-Commerce
Retail
BHS / BRS
Airfield
Op Resilience
Mobility
ERP
PLANNING & SCHEDULING
LANDSIDE
OPERATIONS
AIRSIDE OPERATIONS
DISRUPTION
MANAGEMENT
COMMERCIAL
BACK OFFICE

5. Airport F&S Survey -

6. Digital Transformation programs have a lifespan of 4 years
Digital Transformation Vision
Digital Transformation – Major Objectives
Average Timeframe
4 years
Through digital transformation, we want to enhance our operations by including various technologies like biometrics and AI
Executive manager, Large Hub,
APAC
I would say that digitalization is the key enabler to provide our passengers seamless integration of travel services...
Director, Point to point,
North America
Enhance
Customer
Experience
Improve
Efficiency
Record &
Manage
Performance
Other
We would like to use technology to track performance and gather data to improve decision making.
Manager, Large Hub, North America
Digital Transformation is all about improving the passenger experience and reducing passenger wait times at touchpoints.
Director, Large Hub,
Middle East
Base: All respondents (n=50). Please note: The numbers on the chart represents the number the statement was mentioned.
Q12. Please outline your digital transformation vision/ major objective in as much detail as possible.
Q12_2. Please specify the timeframe to achieve your vision / major objective
Source: Frost & Sullivan analysis

7. Focus of Digital Transformation programs in Airports
Key Parts in Digital Transformation Vision – Ranking
Base: All respondents (n=50).
Q11. Please rank the following airport function areas to the extent that they
form a core part of your digital transformation vision / major objective.
Source: Frost & Sullivan analysis

8. Share of Operating Expenditure Expected Change in the Next 5 Years
IT budgets make up 6-9% of total OPEX and expected to grow by more than 5% over the next 5 years
Share of Operating Expenditure
Expected Change in the Next 5 Years
Planned
decrease DK
Less than 3%
Remain unchanged DK
10% or more
3% to 5%
Planned increase of more than 5%
Planned increase of up to 5%
6% to 9%
Average
6.4%
Base: All respondents (n=50).
Q35. Could you provide an estimate of IT as a share of your total operating expenditure?
Q36. Given your current budget for digital transformation, how do you expect your IT/ Digital Project expenditure (capital or operating) to change over the next five years until 2022?
Source: Frost & Sullivan analysis

9. Implementation Progress / Intent
Smart Retail, Biometrics and Cloud see low deployment but are major investment areas
Implementation Progress / Intent
Deployment
(Top 2 box share)
Display Systems
General IT Infrastructure
Baggage Tracking/ Reconciliation
Airside Technologies
Asset Management and Planning
Digital Marketing
Passenger Flow Management
Business Intelligence & Analytics
Self Service Systems
Common Use Platforms
Location Based Services
Collaborative Decision Making
Advanced Screening Systems
Ground Mobility Platforms
Cloud Data Platforms / AODB
Biometrics / Smart Security Gates
Smart Parking / Retail
96%
92%
82%
78%
76%
74%
72%
64%
60%
58%
53%
46%
42%
Base: All respondents (n=50).
Q20. Which of the technologies listed underneath are already
deployed at your airport and which ones are you planning to deploy.
Source: Frost & Sullivan analysis

10. Technologies with Impact on Operations by 2035
Disruption Management and IoT Platforms to have the most impact on Airports by 2035
Technologies with Impact on Operations by 2035
Timeframe of Impact
(Years)
North America
n=19
EMEA
n=16
APAC
n=15
Disruption Management
Integrated Data Platforms
Remote Operations
Intelligent Video Analytics
Drone Management
Artificial intelligence in Airport Operations
AR/VR/MR and wearable solutions
Base: All respondents (n=50).
Q14. Do you expect the following to have developed on your airport within the next 15 years? Q15. When do you expect <concept> to have impact on your airport?
Source: Frost & Sullivan analysis

11. Airport 2040

12. What will the Future Airport be to the Traveller
What will the Future Airport be to the Traveller? Using mega trends and traveller implications –key themes emerged on what the future airport should be
CARBON NEUTRAL
AUTONOMOUS
TRAVEL BRAND
VIRTUAL
MULTI PURPOSE URBAN CENTRE
IoT PLATFORM
EXPERIENCE CENTRE
COGNITIVE
PEER TO PEER NET-WORKING
OPTIMISED DOOR TO DOOR JOURNEY
MOBILITY ASSISTANT
INTER- MODAL HUB
PERSONALISED
JOURNEY

13. Theme #1 : Cognitive Airport
Theme Expanded
Airport functions respond in real time
Services make use of big data analytics
Efficient planning
Less intrusive, invisible, efficient, predictive for passengers and operations
Artificial intelligence enabled
Context
In the short term, AI capabilities will be used in Apps and in passenger engagement
Increasingly airports will use AI in video analytics, security and in predictive maintenance / operations
Early Enablers
IoT Platforms
Data processing capability/analytics in real time
Cloud computing
Small scale use cases (e.g. chatbots, LGW)
Actions to Take
Understand the data available within the airport
Develop IoT strategy to capture missing data
Breaking data silos and implementing data sharing policies
Partner to develop artificial intelligence capability
Distributed Intelligence ✖
Centralised Intelligence ✖
Narrow Applications ✖
2020
2030
2040

14. Theme #2: Autonomous Airport
Theme Expanded
Builds on Self-Service (check-in, bag drop, digital wayfinding)
Autonomous vehicles bring customers to airport – segregation of passengers and baggage
Landside; semi autonomous vehicles
Airside: complete autonomous operations
Extension of autonomous philosophy in security, maintenance, customer service
Context
Drones, autonomous robots, trains, buses and pods will serve all mobility needs of the future – anything that moves will be autonomous
In the short term, semi-autonomous cars will lead with features such as self-parking, summoning, and highway auto pilot
Electric autonomous cars will be pushed in an effort to maximise efficiencies
Early Enablers
Vehicle to infrastructure technology
Sensors and data capture
5G – high speed broadband
Artificial intelligence
Actions to Take
Geo-fencing areas
Land Use; Self- parking: (30% - 60% parking space reduced)
EV charging infrastructure
Fully Autonomous (Multi Model) ✖
Highly Autonomous (Airside – Landside) ✖
Semi Autonomous
(Airside) ✖
2030
2040
2040+

15. What is Your Value Proposition
Time
Journey optimisation – curb to curb
Time as a luxury offering to passengers – zero queues, zero delays
Time can be the airport’s competitive advantage and driver of choice
Key enablers; automation, multi modal mobility, real time analytics
Experience
Digital, immersive, virtual world
A community experience – new people making new connections, urban centre/extension of the City
Key enablers; multi use space, augmented and virtual technologies
Personalization
Use of analytics and artificial intelligence to personalise whole journey
Seamlessly customised to micro customer segments
Addressing a complex heterogeneous society
Key enablers: customer data, real time analytics, AI
Lifestyle
Robotic assistance and personal service for PRMs
Add wellness into the ‘DNA’ of the airport (eg walking/running tracks)
The Airport as a lifestyle enhancer (not detractor of time, ‘just’ a necessity for people)
Key enablers: robotics, automation

16. Thank you! Diogenis Papiomytis diogenisp@frost.com