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  • 1. PRESENTED TO: AIRLINE & AEROSPACE MRO & OPERATIONS IT CONFERENCE 23 - 24 March 2010, Hilton Miami Downtown Hotel - Miami, USA Autonomic Lifecycle Sustainment Comes of Age PRESENTED BY: MICHAEL WM. DENIS AVIATION WIKINOMICS AIRLINE, AEROSPACE & DEFENSE INNOVATORS Copyright © 2009 Aviation Wikinomics, Inc. Confidential Proprietary Trade Secrets & Know How
  • 2. 1 Impact Statement Autonomic capabilities are changing the landscape of aircraft lifecycle sustainment to the same degree that the gas turbine engine changed commercial aviation and FedEx changed the logistics industry! CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 1
  • 3. 2 History of Autonomics 1898 – Medical term defining a subset of the Central Nervous System Autonomic: au·to·nom·ic : ˌȯ̇tə-ˈnä-mik : adjective ˌ ̇- ə ˈ – 1 : acting or occurring involuntarily <autonomic reflexes> – 2 : relating to, affecting, or controlled by the autonomic nervous system or its effects or activity <autonomic drugs> – au·to·nom·i·cal·ly : ȯ-tə-ˈnä-mi-k(ə-)lē : adverb 1978 – Office of Naval Research funds Boeing & United Airlines to develop new methods of aircraft maintenance planning resulting in Nolan & Heap’s Reliability Centered Maintenance report. 1991 – IBM defines the term relative to computing and begins to develop there vision for autonomic networks. 1994 – Office of Naval Research becomes a founding member and sponsor of MIMOSA for the development of an Open Systems Architecture for Condition Based Maintenance (OSA-CBM) 1997 – Office of Naval Research funds Raytheon to develop of a Generalized Automated Maintenance Environment (GAME) – which results in Boeing IDS / GEAE’s Automated Maintenance Environment (AME) for the F/A-18 E/F Super Hornet. 2000 – Arthur “Art” K. Cebrowski (VADM/USN ret.) appointed Director, Force Transformation, OSD – begins to define Sense & Respond Logistics strategy, concept of operations (CONOPS) and required capabilities. CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 2
  • 4. 3 History of Autonomics 2001 – Lockheed Martin Aeronautics proposes the development of an Autonomic Logistics Information System (ALIS) in support of the multi- national Joint Strike Fighter program competition – to enable OSD’s Sense & Respond Logistics CONOPS and strategy. 2002 – Accenture working with Delta TechOps submits 11 US/EU patents on the use of autonomic capabilities to enable multi-dimensional configuration management, predictive maintenance and lifecycle optimization of complex assets. 2006 – Boeing CAS proposes the Goldcare program for the B787 Dreamliner and begins development of an Aircraft Health Management (AHM) solution, Maintenance Execution Management (MEM), Integrated Materials Management (IMM), Electronic Flight Bag (EFB), and Electronic Technical Log (ETL / Toolbag). 2000-2008 – Airbus Airman AHM & AirN@v, Embraer AHeAD, Lockheed Martin Aeronautics PHM, ATA iSPEC2200, ASD S1000D, ASD SX0001, ISO 10303 AP 239 STEP, ISO 13374 CBM, … 2009 – Bombardier proposes a performance based / fixed cost support business model for the C-Series 110/130 aircraft leveraging a Centralized Maintenance & Health Management System and global logistics network. CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 3
  • 5. 4 Aviation MRO: Industry Structure = “Eco-System” Regulatory Services FAA, JAA/EASA, CAA, NTSB Engineering Services Maintenance Planning / Packaging / Scheduling, Regulatory Compliance, Tech Docs, Reliability Engineering Other Segments: Commercial Aircraft Defense Operators & Depots BizJet / Corporate Fleet Operators Air Taxi / VLJ Total Technical Services Airframe, Engine, Component & Total Touch Services GA: General Aviation USAF/USN UK MoD Country Maintenance Services LCC Net Out Legacy Out Legacy In X Fleet 1 Military Fleet 2 Fleet 1 Fleet 2 ... ... ... Forces ... 3PMP & 3PL Engine OEM Component OEM Airframe OEM Logistics Services Sourcing, Provisioning, Procurement, Warehousing, Distribution, Transportation, 3PL Technology Services Infrastructure Products / Services, SaaP (On-Premise, EAI, Application Management), System Integration, SaaS (On-Demand) Financing & Leasing Power x Hour Engine Bundling, ACMI Wet Lease, Performance Driven Outcomes CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 4
  • 6. 5 Aviation MRO: Core Business Processes & Interfaces Engineering, Maintenance Programs & Regulatory Flight Operations Maintenance Airframe & Engine Maintenance Shop, Tool & GSE Maintenance Supply Chain Management Customer Relationship Management Reservations, Airport Operations, Finance & Pricing, Marketing Airport Flight Finance, SEC, Human Capital Human Capital Res, Sales & GD Operations Operations PRA, Accounting Management CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 5
  • 7. 6 Core Business Processes vs. Industry Structure EASA, FAA, ICAO, ATA, IATA, ASD, AIA Collaboration Capabilities are no longer an option! CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 6
  • 8. 7 The three core technical enablers of aviation MRO Engineering, Finance Maintenance & and Human Capital Finance & Human Capital Management Material MRO & SCM Management Key Finance & Accounting capabilities Key Customer Relationship Management – Treasury & Working Capital Management – Sales Force & Contact Management – Accounting (GL, AP, AR) – RFP / RFQ & Contract Management – Supplier Payments (AP) – Customer Service & Visibility Integration Configuration – Customer Invoicing & Billing (AR) Management Key Engineering capabilities – Taxation – Multi-Dimensional Configuration Management – Activity Based Costing – MRB & MPD Definition & Management – Securities & Regulatory Reporting – AD/SB/EO Management – Finance & Weighted Average Cost of Capital – Job / Task Card Management Governance, Risk & Compliance Management – Equipment, MPD and Task Reliability Key Human Capital Management capabilities Key Maintenance capabilities – Corporate Structure & Work Center definitions – Production Planning (Content of Work) – Employee Management & Self Service (B2E) Document – Visit Scheduling / Capacity Scheduling – Payroll Management & Content – Visit work package Sequencing – Benefits Management Management – Production Control – Workforce Planning & Staffing – Quality Control & Quality Assurance – Recruiting, Training & HC Development – Post Visit analysis & Continuous Improvement Key Supply Chain capabilities – Sourcing, Negotiating & Contracting Document / Content Management – Material Management & Purchasing (Logical) – Inventory Control – Receipt, Warehousing, Key Document and Content Management Distribution and Logistics (Physical) capabilities – AOG & B2B Web Logistics Exchanges –Contracts, Records and AD/SB/EO Documents –Technical Manuals (AMM, FIM, IPC, CMM, SRM) –Job / Task Cards and Logs / eLogs CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 7
  • 9. Open System Architecture for Condition Based Maintenance 8 (Component View) 1 CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 8
  • 10. Open System Architecture for Condition Based Maintenance 9 (System View) Advisory Generation (AG): provides 2 actionable information required to 1) make immediate operational changes and 2) optimize lifecycle reliability, maintainability and availability of equipment. Prognostics Assessment (PA): determines future health states, failure modes and remaining functional and, or economic life based on current health state, deterioration rates and forecasted usage of equipment and maintenance policies and procedures. Health Assessment (HA): determines current health state given functional parameters and faults of equipment leading to diagnostic processes, preventative and corrective actions. State Detection (SD): facilitates the creation and maintenance of normal baseline “profiles”, searches for abnormalities whenever new data are acquired, and determines in which abnormality zone, if any, the data belongs. Data Manipulation (DM): performs signal analysis, computes meaningful descriptors, and derives virtual sensor readings from the raw functional measurements. Data Acquisition (DA): converts an output from a transducer to a digital parameter representing a physical quantity and related T2 Turbine N3Turbine information. Inlet V3Turbine Speed Temperature Vibration CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 9
  • 11. Open System Architecture for Condition Based Maintenance 10 (Aircraft View) 3 External External Sources of Sources of OSA-SOA OSA-SOA Web Service Web Service Maintenance Maintenance Information Information Information System System Information Utility and “Value Density” of Information Health Health Management Management System System CMS Collaboration Advisory Advisory OSA-EAI Network OSA-EAI Generation Generation Web Service Web Service ACMS Prognostic Prognostic Assessment Assessment MCC Health Health OSA-CBM OSA-CBM Assessment Web Service Assessment Web Service LRUs SOC State State Detection Detection Data Data Sensor(s) Manipulation Data Manipulation Data Acquisition Acquisition Flight Deck Cabin Sensors Sensors ELB EFB MIS Component / LRU Systems / Aircraft Fleets Information Flows Applicability of Information Organization Perimeters CONFIDENTIAL / Value Density of Information Utility March 29, 2010 Thales and BWS Proprietary 10
  • 12. Open System Architecture for Condition Based Maintenance 11 (Fleet & Collaborative Eco-System View) Total Care Total Care Fleet 4 Fleet Manager Manager Engine Engine Regulator Utility and “Value Density” of Information Regulator OEMs OEMs FAA / EASA FAA / EASA Airframe Airframe OEMs OEMs rd 3 Party 3rd Party Logistics Logistics Providers Component Component Providers Component Component OEM OEM OEM OEM Component 3rd Party 3rd Party Component OEM Component OEM MROs MROs Component OEM OEM Sub- Sub- Sub- Component Sub- Component Component OEM Sub- Component OEM OEM Sub- Component OEM Component OEM OEM Airline Fleet External Autonomic Lifecycle Sustainment Providers Systems / Aircraft Applicability of Information Information Flows / Collaboration Hub Organization Perimeters Utility / Value Density of Information CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 11
  • 13. 12 The Chokepoint to Eco-System Collaboration is the MIS CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 12
  • 14. 13 MRO IT Architecture will be based on ASD SX0001 and SOA ISO 10303 S5000F Flight SCORM S1000D S2000M ERP ERP International International Operations International Finance, Human Capital International International Specification for Specification for Specification for Accounting & Management – Systems Specification for Specification for Product Data Service Data Advanced Controlling via Recruiting, Technical Materiel Management Capture & Operations Control Distributed SAS 70 processes Succession, Publications Management (PDM) & Computer Management / Maintenance Learning using and procedures On-Boarding, (IETP / IETM) (SCM) using Aided Design, using ISO 13374 Control, Air Traffic the Shareable compliance Talent, Training using a EDI / XML Engineering & OSA-CBM, Control, Weight & Content Object and Learning Common Source Automated Manufacturing ACARS, On-Board Balance and Reference Model Management Data Base (CSDB) Processing (CAD, CAE, CAM) Systems & FOQA Dispatch LDAP & PKI J2EE Web Service Universal Adapter (ESB / SOA) Security Services Device, Printer & Wireless ISO 10303 S4000M S3000L AP 239 Maintenance Services International International Specification for Specification and Application and Product Life Cycle Procedures Procedures Management (PLCS) & Multi- Handbook for RCM / MSG3 Information Handbook for Logistics Support Dimensional Scheduled Analysis (LSA) Configuration Management Maintenance and Reliability Analysis System (MDCM) CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 13
  • 15. 14 Software as a Service / On Demand key differentiators: Source: Marc Benioff, CEO, salesforce.com, Tour de Force Atlanta, Apr. 2008, “The Future of Cloud Computing” CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 14
  • 16. Just as software evolved via Abstraction, Virtualization and 15 Outsourcing… Source: Marc Benioff, CEO, salesforce.com, Tour de Force Atlanta, Apr. 2008, “The Future of Cloud Computing” CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 15
  • 17. … so too are Platforms migrating to the SaaS / On Demand 16 business model … Source: Marc Benioff, CEO, salesforce.com, Tour de Force Atlanta, Apr. 2008, “The Future of Cloud Computing” CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 16
  • 18. 17 … a business model that originated in the airline industry. CRS / GDS Catering SCM MRO MRO IT CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 17
  • 19. 18 There are three waves of adoption of a Disruptive Value Innovation The focus of SaaS shifts over time from cost-effective delivery of stand-alone applications (Wave I), to integrated business solutions enabled by web services and ESBs (Wave II), then to human workflow and collaboration based business transformation (Wave III). Evolution of Software-as-a-Service SaaS 2.0 SaaS 1.0 SaaS 2.0 High Wave I: 2001-2006 Wave II: 2005-2010 Wave III: 2008-2014 Cost-effective Integrated Workflow-enabled Software Delivery Business Solutions Business Transformation Ubiquitous Adoption • Optimized Business Ecosystems Mainstream Adoption • IT-targeted Ecosystems Adoption • Integrated w/ Business Portfolio • Inter-enterprise Collaboration • SaaS Integration Platforms • IT Utility / SaaS Infrastructure • Business Marketplaces • Customized, Personalized Workflow Early Adoption and SaaS ecosystems • Focus on Business Transformation • Stand-alone Apps • Customization Capability • Multi-tenancy • Focus on Integration • Limited Configurability • Focus on TCO / rapid deploy SaaS Tipping- Point Low 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Saugatuck Technology, 2007, “SaaS Beyond the Tipping Point” CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 18
  • 20. 19 SaaS and BPO are on a collision course … By 2010, a new SaaS business services provisioning model emerges, combining pure-play SaaS solutions with business services from both next-generation and traditional infrastructure, application hosting, Managed Service Providers and Business Process Outsourcing (BPO). While many SaaS vendors desire to remain pure-play application solution providers, customers and industry specific trends in addition to Wall-street economic valuation metrics will decide how far into business services SaaS must go to effectively compete with traditional software vendors. New Collaboration Services Models Business Infrastructure, Process Hosting & Outsourcing Application SaaS CSP (BPO) Management SaaS BPO SaaS SaaS ASP 1.0 2.0 SaaS Infrastructure / SIPs Pure Play Infrastructure / Communications CONFIDENTIAL Source: Saugatuck Technology, 2007, “SaaS Beyond the Tipping Point” March 29, 2010 Thales and BWS Proprietary 19
  • 21. 20 … to create new business models around Eco-System collaboration. From tactical to strategic From 1:1 to 1:N From commodity to industry specialized From client site to web site From cost-reducing to profit-enhancing From SMB to global 1000 Performance Strategic Increasing ROIC for an Services Value System Industry Collaborative Collaboration Shared Service Systems Collaboration Integration Services Management Provider Business Operational Business Processes Optimal Single Company Services Value Business Business Risk / Return Proposition Process Management Services Provider Business Applications Application Software Management as a Service Increasing Propensity to Technology Tactical Technology Infrastructure Outsource Services Infrastructure Hosting Value Management Services Commodity Activities On-Premise Delivery On-Cloud Delivery Fixed Solutions Configurable Solutions Shared Fixed Cost Plus Pricing Utility Pricing Transaction Oriented Event / Workflow Oriented Advisory Services 1:1 Company Standards 1:N Industry-standards 1:1 Client-specific 1:N Industry-specific Dedicated Delivery Ubiquitous Delivery CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 20
  • 22. 21 Aviation MRO Industry Structure vs. Nature of Services Engine Power X Hour Airframe Performance Mgt Performance Bundled Acq + Eng + Mtc + Log PBL, PBC, Goldcare, TTS+ Services s in rg Nature of Demand & Supply (Services) a M ng si Increasing Breadth or Depth of Services Demanded ea Engineering Services Knowledge Management Fleet Management Knowledge cr In AD/EO, PMA/STC, ECM/DCM/Task Cards CAMP + CASS + Reliability = BI Reg, Mx Program & Pln, MOC Services Decreasing Sources of Supply Provided Increasing Risks to Margins Leasing 3rd Party Logistics Business Process Outsourcing Business Engine, Airframe, ACMI VMI, Warehousing, Dist / Trans FI, HR/Payroll, Call Ctr, CRM Services Airframe Maintenance Component Maintenance Maintenance Engine Maintenance Line Maintenance Hangar / Heavy Check / RON Avionics, LRUs, Subs, Fab Services Infrastructure Management Application Management Utility Computing System Engineering Technology On-Premise H/W, LAN, Comms On-Premise Apps Hosting, Grid H/W, WAN, Comms Implementation, Integration Services Process, Human Capital Consulting Technology Consulting Strategy Consulting Advisory σ Org Design, Training, BPR, LEAN/6σ Application & Infrastructure Financial, Marketing, M&A Services Structure of Industry & Integration Increasing Complexity to Execute Increasing Barriers to Competitor Entry and Customer Exit Increasing Margins of Return CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 21
  • 23. 22 Core Business Processes vs. Industry Structure Revisited EASA, FAA, ICAO, ATA, IATA, ASD, AIA Collaboration Capabilities are no longer an option! CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 22
  • 24. 23 Cloud Computing is changing Collaboration Delivery Engine Power X Hour Airframe Performance Mgt Bundled Fin + Eng + Mtc + Log PBL, PBC, Goldcare, TTS+ Finance & Engineering, Accounting Maintenance and Human Capital Fleet Management & Supply Management Reg, Mx Program & Pln, MOC Business Process Outsourcing Chain FI, HR/Payroll, Call Ctr, CRM Configuration Management Knowledge Management CAMP + CASS + Reliability = BI EaaS Document 3rd Party Logistics & Content VMI, Warehousing, Dist / Trans Management Strategy Consulting PaaS SaaS Market, Biz Arch, M&A Technology Consulting Application & Infrastructure Technology Business Performance Services Services Services CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 23
  • 25. Aviation MRO Trends: BPO and SaaS are merging into 24 Performance Based Collaboration Services. Maintenance information system linking the seven global F-35 operators is activated for flight test Lockheed Martin is getting a head start on plans for a global Joint Strike Fighter sustainment system by switching on the information network that will collect, analyze and communicate maintenance data for F-35 flight testing. The autonomic logistic information system (ALIS) will begin collecting data from the first F-35, which had completed 17 flights by the end of April. Initially data will be entered by maintainers, but an upgrade is planned to enable the The global sustainment operations centre in aircraft to downlink data in flight, says Kevin LeBeau, ALIS integrated product Fort Worth, Texas, USA. © Lockheed Martin team director. ALIS provides 38% of the functionality needed to support the 14 development flight-test aircraft planned, says LeBeau, enabling maintainers to isolate faults and trigger the supply chain to deliver replacement parts. Functionality is based on commercial software, including the Maintenix maintenance management system developed by Canada's Mxi Technologies. LeBeau says the ALIS team is developing shippable code every 30 days. When the second F- 35 flies in May 2008 maintainers will be able to run checks and access status on the flight line using laptops and handheld portable maintenance aid. Lockheed has established an operations control centre at its Fort Worth, Texas facility that includes sustaining engineering in order to develop repair tasks, improve component reliability and optimize the maintenance program against key performance parameters of aircraft availability, sortie generation rate and the performance based logistics contract, which shares risks and costs between the US DoD and Lockheed. The international program team includes the United States, United Kingdom, Italy, Netherlands, Turkey, Canada, Australia, Denmark and Norway with Singapore and Israel participating through a non-program Security Cooperative Participation agreement. Source: Lockheed Martin Aeronautics, 2006 CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 24
  • 26. Aviation MRO Trends: BPO and SaaS are merging into 25 Collaboration Services. HAECO is pleased to offer Fleet Technical Management (FTM) and Inventory Technical Management (ITM), two comprehensive total support packages that provide cost-effective, customized engineering and maintenance solutions. Airlines have recognized, in a highly competitive environment, they need to focus on their core competence of flight operations, maximizing revenue/yield and driving out costs by allowing HAECO to provide technical management services through a dedicated team of professionals that covers all aspects of airline engineering functions to ensure fleet operational safety and airworthiness requirement are totally complied with, to the satisfaction of operators' QA and regulatory authorities. HAECO selected and implemented Rusada’s enterprise:airline to provide the Fleet Technical Management (FTM) capability. Lufthansa Technik’s unique Technical Operations web suite, manage/m™, allows commercial aircraft operators to manage all core functions of their fleet’s regulatory, engineering, maintenance and supply chain operations as a completely web-based system. All they need is access to the Internet – LHT does the rest. Rounding out Lufthansa Technik’s Total Technical Services all-encompassing portfolio of maintenance, repair and overhaul (MRO) services, the modules of manage/m™ comprise a complete range of airline proven support functions that permit operators to live up to their responsibilities to the aviation authorities. manage/m™ improves effectiveness and efficiency offering real added value. manage/m™ is powered by Swiss Aviation Software’s AMOS solution. Lufthansa Technik is proud to sponsor the official READI – web suite application! The purpose for the Reliability Exchange of Airline Data International (READI) is to provide a forum for the exchange of operational benchmark data, establishing the performance metric fleet Mechanical Scheduled Performance (MSP). READI is hosted by FedEx and currently comprises 30 airlines and OEMs. Boeing CAS, Boeing IDS, Lockheed Martin Aeronautics, Rolls Royce DS&S, Bombardier, Embraer, Delta TechOps, KLM / AFI all have similar offerings in place or in some stage of realization CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 25
  • 27. 26 LHT example of Aviation MRO BPO and SaaS convergence Lufthansa AG Airlines Cargo Catering Maintenance Technologies Finance & Investing Lufthansa Airlines Lufthansa Cargo LSG SkyChef Lufthansa Technik Lufthansa Systems LH Holdings Passenger Cargo Carrier Catering LHT Logistics Customized Finance & Investing Services Freight Forwarding LHT Philippians, proprietary version Leasing 3PL Services Sofia, Malta, Tulsa, of SAP A&D IS 3.0 Consulting Alitalia, Budapest, Travel Mgt Shannon, AMECO, Airliance, Amadeus Shenzhen, CSA Swiss International LHT Airline Customers CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 26
  • 28. Aviation MRO Trends: BPO and SaaS are merging into 27 Performance Based Collaboration Services. Boeing signs Long Term Agreement with Mxi Technologies Ottawa, Canada (July 8th, 2008) – The Boeing Company has named Mxi as a partner for GoldCare, Boeing's comprehensive life-cycle management service developed for the 787 Dreamliner. Boeing has selected Mxi to supply Maintenix®, an integrated, intelligent software solution that will serve as the maintenance management portion of a comprehensive suite of enabling technologies for GoldCare. Under GoldCare, Boeing leads and integrates a global team to deliver maintenance, engineering, and materials management tasks within a predictable per-flight hour cost. Goldcare offers two levels of service, GoldCare and GoldCare Integrated Materials Management Service; both of which include new enabling technologies that turn airplane operating data into actionable information and knowledge. Ottawa, Canada (July 23rd, 2008) – The Boeing Company, the world's largest manufacturer of commercial jetliners and military aircraft, has signed a "Software License Distribution Agreement" with Mxi Technologies, a leader in aviation maintenance management software. Under terms of the agreement, Mxi Boeing’s Global Operations Center. will supply Maintenix®, an intelligent, integrated software solution that will provide Boeing with meaningful © The Boeing Company improvements to their labor productivity in after-sales product support. Information technology is central to Boeing’s corporate strategy of creating value for their aircraft customers and their passengers. This is a global strategy that leverages advanced networks, communications and applications to share information digitally amongst all stakeholders. This initiative is shared across all Boeing business units and extends from onboard technology enhancements to lifecycle information management tools. Maintenix® is central component of this strategy for the 787 aircraft as it provides the information hub for managing data and integrating these diverse technologies and services for the Boeing GoldCare offering. The objectives of the initiative include: Leverage Boeing’s engineering knowledge and fleet-wide perspective to improve resource planning and maintenance execution activities Automate traceability from maintenance activities back to compliance with source documents for maintenance requirements Leverage fault information being captured onboard the aircraft to streamline line maintenance planning and execution activities Set industry standards to facilitate closer integration between the airline community and the manufacturers and maintainers Source: Boeing Commercial Airplane, 8 July, 2008 and Mxi Technologies, 23 July, 2008 CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 27
  • 29. 28 Boeing example of Aviation MRO BPO and SaaS convergence Goldcare Network Partners Americas Europe / MENA AsiaPac ? OR Maintenance Back Office (MIS) (ERP) “Technology is the key enabler of this kind of collaboration, which involves a significant amount of product lifecycle management across multiple countries. Boeing requires all its partners on the 787 to use an application called Catia, made by Dassault, and the plane is designed at a special online site, maintained by Boeing, called the Global Collaboration Environment. Goldcare customers, will also benefit from advance engineering, maintenance and supply chain management collaboration technologies that will significantly reduce and predictably smooth lifecycle costs.” Source: Boeing Co. as reported in CIO Insight magazine, 6 March, 2007 CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 28
  • 30. Aviation MRO Trends: BPO and SaaS are merging into 29 Performance Based Collaboration Services. Source: Bombardier, C-Series Program Update, Paris Air Show, June, 2009 CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 29
  • 31. 30 Bombardier example of Aviation MRO BPO and SaaS convergence Source: Bombardier, C-Series Program Update, Paris Air Show, June, 2009 CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 30
  • 32. 31 … enabling Performance Based “Nose-to-tail” Total Support. Source: Bombardier, C-Series Program Update, Paris Air Show, June, 2009 CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 31
  • 33. 32 Strategic Questions Are your internal MRO IT solutions: Addressing internal requirements: Increasing Labor Productivity? Decreasing Material Costs? Decreasing IT Labor, Infrastructure and Solution Costs? Increasing Aircraft Availability? Increasing Component Engineering Reliability? Increasing Maintenance Program Reliability? Addressing external requirements: Increasing Business Agility? Increasing Compliance to Industry Standards? Increasing Regulatory Compliance? Enabling Eco-System Collaboration? Adding Stakeholder Value? CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 32
  • 34. AVIATION WIKINOMICS MICHAEL WM. DENIS AIRLINE, AEROSPACE & DEFENSE INNOVATORS PRINCIPAL Michael Wm. Denis is the Founder of Aviation Wikinomics, Inc., a global consultancy focused exclusively on innovation of airline, aerospace and defense aircraft lifecycle sustainment capabilities. Michael has over twenty-two years experience in managing maintenance operations and advising tier one airlines, aerospace manufacturers and third party MRO companies. His current research is focused on the use of disruptive technologies in the optimization of revenue generation versus aircraft sustainment costs across the various lifecycle phases of complex assets, as well as Software as a Service and Business Process Outsourcing. Prior to Aviation Wikinomics, Michael was a co-founder of Blue Water Solutions, Inc. with Dr. John B. Kirk and Malcolm B. “Mac” Armstrong, LTG / USAF retired. Michael began his technology career at Accenture, where he was the Director, Aviation Maintenance Solutions. Michael served twelve years in the US Navy as a Surface Warfare Officer and Gas Turbines Engineer. Michael attended the Georgia Institute of Technology earning a Bachelor of Nuclear Engineering and holds a Master of Decision Science from the J. Mack Robinson College of Business at Georgia State University. He is a member of the Institute for Operations Research and the Management Sciences, the American Society of Quality and the Six Sigma Forum. A native of Houston, Texas, Michael currently resides in Atlanta, Georgia, with his wife, Jackie, M: +01 678.524.8289 and son, Kyle, while daughters Ashley and F: +01 772.594.8289 Courtney attend the University of Georgia and E: michaelwdenis@aviationwikinomics.com Kennesaw State University, respectively. L: www.linkedin.com/in/michaelwdenis CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 33
  • 35. AVIATION WIKINOMICS CONFIDENTIAL March 29, 2010 Thales and BWS Proprietary 34