IT Outsourcing and Commercialization at Düsseldorf Airport (DUS) Dr. Christian Jahncke

Transcription

1 IT Outsourcing and Commercialization at Düsseldorf Airport (DUS) Dr. Christian Jahncke

2 Agenda Challenges & Opportunities: Düsseldorf International Airport Airport challenges Evolving business model IT as a key business enabler Approach Example: Dusseldorf Airport Commercialization Benefits

3 Example - Düsseldorf International Airport (FDG)

4 Düsseldorf International Airport (FDG) Capacity Up to 25 million passengers Destinations 170 destinations worldwide Airlines 70 airlines Movements More than 700 flights per day Passengers in 2012 >21,0 Mill. passengers and growing Nr. 3 in Germany, Nr. 22 in Europe

5 Airports are facing ever growing challenges Capacity Management Airport Expansion Disruption Management Economic uncertainty Security Technology Evolution

6 And conflicting priorities Deliver on the long-term plans amid economic uncertainty Airports do not have the luxury of short-term planning Airport infrastructure is built to last and ready to meet future demand Facilities and resources need to be maintained Regional development engine Increased focus on the airport as a vital economic driver Managing growth and downturns A keystone to national security and emergency response Service provider to a demanding and varied customer base at the airport Profit center Commercialization Business case driven new development

7 IT is at the heart of airport operations Airport Process Boarding Flight Arrival Airport Operations Management Passenger Management AIRCOM Air Traffic Control Flight Operations Airport Operations Management Passenger Management Cargo Management Common Use Passenger Processing Infrastructure Baggage Management Fleet, Crew Management Passenger Communications Advanced Passenger Information, Biometrics Border Management CUTE Infrastructure Service Management Communication Services- End-to-End Connectivity

8 With the right approach, IT can be a key business enabler supporting the new airport business model Landlord: Room Light Heat & power Providing common technology: Check-in Baggage Fids Becoming a Service Provider

9 IT as a key business enabler Approach & Example

10 Airport IT environment before SAIT Tenant IT&T Providers Telecom Provider Technology Provider Service Provider Network Provider Airlines Tenants Restaurants Shopping Car Rental Airport Internal IT Department IT Operations & Services Airport IT&T Partners Telecom xsp IT Infrastructure IT Vendors

11 Two key steps Strengthening/ consolidating the airport IT: IT investments Integration Service levels SLA Become an IT Service Provider: IT service portfolio Customer/supplier relationship

12 Airport IT environment today Tenant IT&T Providers Telecom Provider Technology Provider Service Provider Network Provider Tenants Airlines Restaurants Shopping Car Rental Ecosystem Telecom Carriers Telcos Ecosystem IT&T Partners Airport IT Provider Business Services Managed Services Infrastructure Services Carrier Services Telecom xsp IT Vendors

13 Enhance commercial revenues through diversification of services Aeronautical 48% Aeronautical Revenues Enhance Commercial Commercial Revenues 52% Non-aeronautical charges 7% Property Re-sell 9% IT Services Non-aeronautical Parking charges Property 10% Parking Retail 16% Retail Car Car hire hire Advertising 5% Advertising 5% Source: ACSA 2008 Annual Report

14 Düsseldorf Airport IT Partnership We wanted to get into a joint venture with two main targets. One was to achieve a significant reduction in IT costs averaging 12 per cent or 1.5 million Euros annually over ten years. And the second was the opportunity to gain early advantage in the adoption of new technology. Both goals are of equal significance to us - Thomas Schnalke, FDG Managing Director The establishment of a commercially run IT Service Company at Düsseldorf Airport will benefit the wider Airport Community through the offering of best-in-class IT Services at competitive prices. - Dr. Christian Jahncke, SITA Airport IT- Managing Director

15 Facts on SITA Airport IT GmbH (SAIT) Shareholders: SITA 70 %, Düsseldorf Airport 30 % Staff: 110 people Economical Situation: Foundation in 2005 Results according to budget! Revenue > 28 Mio in 2012 Customer portfolio: FDG, FDG affiliates, 3rd party customers on campus, SITA, and airlines like Lufthansa, Condor, Air Berlin, 3rd party off campus Regional focus: DUS and selected international locations

16 Profile of SITA Airport IT GmbH (SAIT) Our approach to services: 1) Consulting (identify new projects and tasks), 2) Define requirements 3) Assess costs (save $$) 4) Deliver, integrate and operate the system by Deliver services based on long-term contracts Share existing systems between customers (airport-airport, airportairline) exploit synergies for comparable customers Indicate future developments Active design of new solutions Deliver 100 % SLA and reach maximum customer satisfaction

17 SITA Airport IT services, from A Z Airport consulting services Airport TV ACC Airport Control Center (from 11/2012) AODB (development and implementation of new data base) BRS Baggage Reconciliation System (available in sortation hall and apron) BSM Baggage Source Message CDM (Collaborative Decision Making) (11/ 2012) CUSS (up to 64 CUSS kiosks for LH, AB, AF and CUSS airport) CUTE (350 workstations in DUS) CUTE (180 workstations in CGN) Customer loyalty program card (e-business DUS card) Data Center operation (99,98 availability, redundant) Data Center hosting (3 rd party business) Desktop service (1500 items) FIDS (replacement of all monitors approx with new format) FOD (Foreign Object Debris) Gigabit ethernet network (replacement ATM) Telecommunication (5000 lines) Parking Operation SITA PMR (1200 handsets) RMS (for Ground handling) SAP ERP SAP BI WLAN (more than 120 access points)

18 Increase of revenues by new concepts New concepts: Seamless travelling Prebooking New payment methods RFID Licence Plate Recognition Homeprint barcode as unified media replacement Tremendous cross-marketingpotential and transportation link Near field communication (NFC) up to 100 Pre-paid reservation via 2 D barcode Target group: Frequent and contract parkers Potential: Link to city card Security for car and airports Supportive media for contract parkers

19 Increase of revenues by new concepts Seamless travelling starting by real time pre-booking > 1,5 Mio. transactions per year > visits/month on websites Real time reservation and confirmation Customers feel safe and comfortable Customers get the booking confirmation and the feeling of capacity management Print & home tickets or airline ticket

20 Increase of revenues by new concepts Seamless travelling by near field communication technology Contactless payment and identification for pre-booking EMV and PCI/DSS compliant turn around solution Pre-payment by voucher/airline ticket High security and marketing tool for cross marketing

21 Increase of revenues by new concepts Seamless travelling by RFID technology Access by contactless RFID-Tags for contract parkers/taxi/employees/special card holders Tag linked to car no fraud Tags in wind shield will be destroyed in case of replacement Seamless entry and exit Parking fees will be charged to account Online self-service platform

22 Increase of revenues by new concepts Licence Plate Recognition More convenience for consumers Increased customer data Increased security Improved auditing and revenue control Geo-marketing

23 Additional revenue streams by new products Block parking at Duesseldorf airport (pilot) Actual situation: Waste of space at the parking garage New parking concept resulting in 60 % space efficency Delay of investements for car park construction covering peak times Drastic increase of revenues per space Manual and automated version

24 Benefits to DUS

25 Benefits to Airports World class IT Innovation World-class products and services Global standards and processes (ITIL) SLAs and Quality of Service Competitive edge New business model Transform IT from a cost centre to a profit centre State of the art integrated technology providing flexibility, visibility and scalability Control operating costs Revenue Generation Transform fixed costs into variable costs Free up capital funds Long term engagement Trusted and experienced partner to help the airport in addressing their key challenges Access to industry & IT experts Financial Partnership

26 Can be achieved through a range of commercial partnership models Functional Staff/Asset acquisition Objective Alignment Go to Market Joint Venture Efficiency Minimize Capital Business Goal Achievement Revenue Enhancement Market Creation Fee for service Service Level Agreement Capital Acquisition Service Level Agreement Transition Services Risk reward Benefits sharing Joint capability development Joint sales Channel management Legal structure Governance Resource transition Share risk & reward

27 Conclusion Lower the cost of IT to the airport operator Ensure a smooth transition from an internal IT department to a market facing, commercially run IT service company Introduce a Global IT company as a neutral IT service provider to all companies present at the airport and thus ensure commercial success Provide the local IT employees with the latest trends in technology and free access to a tremendous pool of knowledge in ATI

28 I am glad to welcome you at SAIT in Düsseldorf! Thank you for your attention!

29 Contact Phone: