The document summarizes the results of a survey on innovation and digital disruption in the aviation MRO industry. Some key findings include: - Over 73% of airline and MRO executives agree that data volume from aircraft sensors and operations exceeds their ability to drive business value. - Nearly 79% of executives plan to have paperless operations within 24 months, but less than half have allocated resources. - Only 4.8% of companies currently use machine learning/AI technologies despite its benefits. - Around 26% plan to implement new aircraft health monitoring systems or replace existing ones within 24 months. - Most executives see high value in closing gaps in the digital thread across the aviation industry ecosystem. - Lack of

1. Innovation & Digital Disruption
in Aviation MRO
Industry study results on the
intersection of configuration data
exchange & collaboration.

2. 2Copyright © Capgemini 2017. All Rights Reserved
GE Aviation & Capgemini: Aviation MRO Survey| April, 2017
Session Moderator & Panelist
Ray Stetter, VP Transportation, Capgemini
Kevin Larson, VP & CIO, AAR Corp.
Ray Carroll VP, Aircraft Engineering, FedEx
Lillian Dukes, Global Aviation Operations Leader
Ryan M. Chapin, Chief Portfolio Manager, Digital Solutions, GE Aviation
John Oldham, President, AirVault (a GE Digital company)

3. 3Copyright © Capgemini 2017. All Rights Reserved
GE Aviation & Capgemini: Aviation MRO Survey| April, 2017
Quantitative Methodology
Survey Methodology
• A 10 minute survey was undertaken globally
• Purpose of the survey - GE Aviation and Capgemini wanted to understand latest trends and views on the MRO strategies and technologies (such as predictive maintenance, asset health
management and mobile / paperless operations) used across various markets. Moreover, a key focus of the survey is to understand not just what innovations are being employed but also where
value is being realized
• Timeframe – The survey went live from 24th March and is still running
• 348 responses received until 11th April, 2017
CXOs include: CEO, COO, CMO, CFO, CIO, CTO, CDO
VPs include: EVP, SVP, VP
Directors include: Managing Director, Senior Director, Director
Managers include: Senior Manager, Manager, Assistant Manager
Others include: Foreman, Crewman, Technician, Mechanic,
Engineer
Airlines + Regulator include: Passenger International Network,
Passenger Regional Network, Passenger LCC, Cargo, Government
Regulator
MROs include: MRO (Independent), MRO (Airline affiliated)
OEMs include: Airframes, Components, Engine
Service Providers include: Consultancy, Financial / Lessor,
Logistics, Software / Technology
Geography Type of Company Levels
Americas
50%
Europe
28%
APAC
14%
MENA
8% Airlines +
Regulator
32%
MROs
16%OEMs
16%
Others
36%
CXOs
11%
Directors
21%
Managers
36%
VPs
11%
Others
21%
N=348 N=348 N=348
Americas include: North America, Central America, South America
Europe include: Western Europe, Eastern Europe/Russia
APAC include: China, Japan/North Asia, Southeast Asia, India /
Central Asia, Australia / Oceana
MENA include: Africa, Middle East / Northern Africa
*Others – Service Providers

4. 4Copyright © Capgemini 2017. All Rights Reserved
GE Aviation & Capgemini: Aviation MRO Survey| April, 2017
Aircraft sensor data, maintenance data and
operational data has grown to the point of
exceeding most aviation company's ability to
efficiently and effectively improve business
processes and outcomes.
Agree or disagree

5. 73.4%
Airline & MRO executives Strongly
Agree or Agree: data volume, velocity,
variety and veracity exceeds most
operator’s ability to effectively and
efficiently drive business value.

6. 6Copyright © Capgemini 2017. All Rights Reserved
GE Aviation & Capgemini: Aviation MRO Survey| April, 2017
To what degree is your company adopting
paperless operations?
Paperless today or by end of 2017
Paperless within the next 24 months with
resources planned, allocated & approved
Paperless within the next 24 months but
resources not planned or approved
No intention of becoming paperless

7. 78.9%
Airline & MRO executives intend
to have paperless operations
within the next 24 months, but
less than half (46.5%) have
actually allocated capital and
resources to achieve this
capability.
$3.9B
Estimated industry cost of
paper aircraft logs and
maintenance records over the
past twenty years.

8. 8Copyright © Capgemini 2017. All Rights Reserved
GE Aviation & Capgemini: Aviation MRO Survey| April, 2017
Which type of company most benefits from
the value of aircraft/engine monitoring
systems?
What type of company most benefits from
predictive maintenance primarily?

9. 4.8%
Airline & MRO executives surveyed
stating their companies are currently
using some type of machine learning /
deep learning AI technology.

10. 10Copyright © Capgemini 2017. All Rights Reserved
GE Aviation & Capgemini: Aviation MRO Survey| April, 2017
What are your organization's current plans
for aircraft/engine monitoring system(s)?
Implement a new system in next 24 month
Replace or consolidate current multiple OEM
systems with a single vendor
Replace current multiple OEM systems with an
internally developed single “nose to tail” system
No intention of becoming paperless

11. 26.2%
Airline & MRO executives surveyed
stated their intent to implement a new
Aircraft Health Management solution or
replace their current solution(s) with a
single vendor with a nose to tail solution
within the next 24 months.

12. 12Copyright © Capgemini 2017. All Rights Reserved
GE Aviation & Capgemini: Aviation MRO Survey| April, 2017
How many aircraft/engine monitoring
systems are integrated to your core MRO IT
system of record?

13. None or
I Don’t Know
67.8%

14. 14Copyright © Capgemini 2017. All Rights Reserved
GE Aviation & Capgemini: Aviation MRO Survey| April, 2017
The term "digital thread" represents an
industry capability to trace data from OEM
design and manufacture to airline aircraft
use, to MRO maintenance and back to
OEMs, lessors and other ecosystem entities.
What level of value do you see in closing
gaps in the digital thread (such as going
paperless, internal integration, B2B external
integration)?

15. 80.3%
CXOs & VPs surveyed
rated closing gaps in
the Digital Thread as
“very high” or “high” to
driving business value
across the OEM, airline,
MRO, lessor ecosystem.

16. 16Copyright © Capgemini 2017. All Rights Reserved
GE Aviation & Capgemini: Aviation MRO Survey| April, 2017
ATA SPEC 2500 and ASD/AIA S5000F are
industry initiatives to standardize the digital
exchange of sensor, configuration,
maintenance, and lease data among
industry stakeholders (airlines, MROs,
OEMs, lessors).
To what extent is your organization
knowledgeable of and engaged with these
initiatives?

17. 71.7%
Not aware of these standards or
not currently pursuing industry
digital standardization initiatives.

18. 18Copyright © Capgemini 2017. All Rights Reserved
GE Aviation & Capgemini: Aviation MRO Survey| April, 2017
What are the major barriers preventing your
company from adopting predictive
maintenance capabilities?
Data quality
Data ownership
Analytical tools
Investment Capital or Biz Case ROIC
Personnel & Training
All of the Above

19. 79.5%
Industry executives surveyed citing
investment capital and or well defined
business case ROIC as the main barriers
preventing adoption of predictive maintenance

20. www.capgemini.com
The information contained in this presentation is proprietary.
© 2017 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.
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