Enterprise integration challenges in the aviation industry

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Enterprise integration challenges in the aviation industry

  1. 1. Enterprise Integration Challengesin the Aviation IndustryBy Nasly Yoosufnasly.yoosuf@proavos.com
  2. 2. Aviation IndustrySome Facts:•2012 annual projection is 2.973 billion passengers(Source: IATA)•There are 1700 airlines worldwide (Source: JANE’s)•To market and sell their services, airlines conductbusiness in a fragmented, complex distributionenvironment. (IATA special report 2012)Inferences:•On a typical day in 2012, more than 8.1 millionpeople worldwide will board a commercial flight.•Distribution to reach customers in a competitivemarket is a major challenge for airlines
  3. 3. Aviation Industry1962American Airlineslaunches SABRE1970sIntroduction ofTravel AgentsTerminals2013Parts of the industry’s business processes, business models, and technologyinfrastructure date back to 1950s -- and, in some cases, even earlier.2000Entry of webbased systemsThe Future of Airline Distribution -A Look Ahead To 2017Majority of airlinesworldwide still uselegacy distributionsystemsPre-Computerization Computerization Post-Computerization (Online)
  4. 4. Food for thought• >60% of total airline distribution worldwide is still taking place overTPF based legacy systems designed in 1960s;• Only 10% of API based distribution worldwide (average)!• When a passenger begins the journey by purchasing a ticket, thepassenger name is transferred through at least 17 different systems!
  5. 5. Baggage ReconciliationAirline Systems:Some Ground Operations System• Check In System (DCS)• E-Ticketing DatabaseAPIS/ ImmigrationSystemsDuty Free Systems• Boarding• CRS (Post Boarding Data)• E-Ticketing DatabaseWeight /Balance Systems• Baggage Systems• World Tracer SystemsCatering SystemsApron SupportSystems
  6. 6. Some Facts• Predominantly airline distribution is a SaaS provider industry - Pay bythe drink• Traditional airline distribution platforms are inter connected tonumerous systems• Scheduling system, fare filing system, pricing system, ancillaryservices, payment system, ticketing system, revenue accountingsystem, etc• Etihad airways – Migrating to Sabre distribution product fromAmadeus, both of which has technically similar integrations,expected to take years and is reportedly a 1 billion USD project
  7. 7. TravelAgentsGDSTRADITIONAL DISTRIBUTION APPROACHNEW DISTRIBUTION APPROACHREQUIRES MODERNCRSHow distribution has changed
  8. 8. A Typical Airline Product Portfolio
  9. 9. Challenges• Managing often conflicting stakeholders’ expectations• Governance of airline is very different from one airline to airline; so doesthe integration requirements• Business is so dynamic, especially recently emerging hybrid airline modelthat new integration requirements are constantly coming up• Alliances and partnerships – a very common scenario in the industry;Systems should be ready to integrate seamlessly for business to reap thebenefits• No universal data model or process model to seamlessly accommodateintegrations with various third party distribution platforms
  10. 10. More Challenges• Third party add on services – such as ancillary, third-party serviceofferings and payment services – no well defined standard for integration• B2B integrations - No well defined standard for offering distributionservices to partners and third parties• Many heterogeneous systems to connect to – both internal as well asexternal systems• Very high inertia to change from existing legacy based system to a newerbusiness models• Migrating an existing system is like repairing a moving train – business stillneeds to continue smoothly while migration taking place
  11. 11. Integration Architecture – StartSimple, but with a long term vision• 4As - Accessibility, Affordability, Acceptability, Awareness• Use an ESB or a MOM for implementing the integrations when– You have many (at least 3) heterogeneous integrations to implement– You have right resources; and the schedule and the budget permits it• If you are starting up a new project, tight on schedule and budget, it advisable toavoid complexities of ESB initially and to plan implementing an ESB later onWebservices & Service OrchestrationSelf ServiceWeb, Mobile &KioskDirect AgentsDistributionThird PartyTouch PointsAirlineSystemsTouch PointsThird PartyService ProviderSystemsCore Sales System
  12. 12. Thank You.

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