Global Airline Digital Transformation Programmes, 2017

Airline Requirements Driving Project Design and Implementation in Business Intelligence, Digital Marketing and Core IT Systems
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Published: 23 Mar 2017

There is an evident increase in the level of sophistication and acceleration in the pace of implementation of digital transformation programs in the airline industry. A growing number of airlines are investing in modern IT systems and partnering with global technology integrators and niche solution suppliers. It is estimated that the incremental value of a digital transformation program could reach up to $5-$10 per passenger annually, mainly generated from improved productivity, cost savings, and new ancillary revenue streams. This wide-reaching digital transformation is mainly driven by airline corporate strategy departments, with business requirements and IT projects now aligned to incorporate strategic objectives. Digital transformation is taking place across every airline function and can be separated into 5 key workstreams: Business Intelligence, Digital Marketing, Core Airline Services, Corporate Services, and Infrastructure. o Business Intelligence: Leveraging internal/external data and analytic capabilities to fuel long-term airline growth o Digital Marketing: Enhancing customer interactions and improving the overall customer experience through the use of intuitive digital tools o Core Airline Services: Modernizing the IT systems responsible for core airline functions, ranging from revenue management to network planning and flight operations o Corporate Services: Streamlining back-office operations, including finance, supply chain management, resource, and asset management o Infrastructure: Enabling digital transformation with the right mix of hardware and cloud-based operations Research Scope This study looks at the current status of airline digital transformation programs and highlights the key airline objectives across core and non-core functions. It provides an overview of the required IT architecture and assesses the competitiveness of key IT suppliers in meeting airline objectives. Companies mentioned in this study include IBM, Adobe, Sabre, and Oracle. Key Questions This Study Will Answer o What are the components of an airline digital transformation program? o What are the key trends and structure of business intelligence, marketing, and core digital workstreams? o Who are the main competitors and what is their positioning to meet airline requirements? o Which key growth opportunities do IT suppliers take advantage of to succeed in this market?

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