Recommended
Recommended
More Related Content
What's hot
What's hot (14)
Viewers also liked
Viewers also liked (16)
Similar to Digital platform: Foundation for a successful digital transformation journey
Similar to Digital platform: Foundation for a successful digital transformation journey (20)
Recently uploaded
Recently uploaded (20)
Digital platform: Foundation for a successful digital transformation journey
- 1. Digital Platform: Foundation for a Successful Digital Transformation Journey Brendan McKittrick - Chief Technology Officer Digital Transformation
- 2. We’ve been on a journey to revolutionize air cargo
- 3. Source: ICAO, IATA (After interest and taxation) World Scheduled Airline net profit margin (%) Economic Backdrop to the Airline Industry
- 4. *e-commerce business will grow from 1.3 trillion US$ in 2015 to 3.5 trillion in 2019 0 500 1000 1500 2000 2500 3000 3500 4000 2014 2015 2016 2017* 2018* 2019* SalesinbillionUSdollars • The rise of digital commerce (e-commerce) has empowered consumers, who can now source products from anywhere in the world or compare prices with just the touch of a smartphone. • The role of airlines in the global e-commerce boom is important, because: A Changing e-Commerce Landscape – 64% of online consumers say delivery speed is important (Accenture) – 61% of survey respondents stated they would be willing to pay more for same-day delivery (PricewaterhouseCoopers) 3,551 2,991 2,485 2,046 1,672 1,343
- 5. • Some case studies: A Changing e-Commerce Landscape – Amazon branded its airline “Prime Air” – Alibaba’s partnership with USPS and Singapore Post – Isetan Singapore’s E-commerce site and Yamato Transport and ANA Cargo – Cathay’s partnership with China Post and Hong Kong Post 0 2 4 6 8 10 12 14 2015 2016 2017 2018 Wearable market growth $7.1b $8.9b $10.9b $12.6b
- 7. Augmented Reality – A Case in Point Market Growth Industry predicts that by 2017 the AR market will grow to USD 5.2 billion. New Perspective Augmented reality (AR) provides new perspectives in air cargo’s planning, process execution, and transportation. Hands Free Operation AR-powered warehouse operations utilize smart glasses for the hands-free operation of various tasks within a warehouse such as product picking, packing, sorting, and even assembly. Right Information AR empowers workers by providing the right information, at the right time, and in the right place.
- 8. Digital Technology – Macro Trends Augmented Reality Big Data Cloud Mobility On-Demand Logistics IoT Self Learning Systems Omni Channel Digital Currency Logistics Marketplaces Robotics & Automation Blockchain
- 9. Greatest Challenges Facing Organizations Lack of operational efficiency Capacity Utilization Low yields Outdated/complex Legacy systems Lack of data availability/visibility Inaccurate / sub-optimal pricing Asset utilization (ULD management) Poor customer relations (track and trace, claims) Meeting Customer preferences 25% 20% 21% 8% 8% 4% 7% 6% 1%
- 10. 25% 20% 21% 8% 8% 4% 7% 6% 1% Lack of operational efficiency Capacity Utilization Low yields Outdated/complex Legacy systems Lack of data availability/visibility Inaccurate / sub-optimal pricing Asset utilization (ULD management) Poor customer relations (track and trace, claims) Meeting Customer preferences Source: Accenture 2015 Air Cargo Survey Challenges Related to User Experience
- 11. Designing for an Enhanced User Experience Public API Management & Monitoring Connectivity and Integration Analytics SelfService Shop Book Billing Regulatory Pricing Warehousing Quality CMS PSS Rev Acct Customs API Enabled Product Supporting a Marketplace & Partner Ecosystem Fully Self Service Enabled Data Config Business Rules Pricing Warehouse Quality Management
- 12. Enter your title here Technology is irrelevant… when it works The user experience is paramount Operate at the speed of change 4As Approach to provide access to informationAnytime Anywhere Any channel Authorized User Experience is the Key Differentiator
- 13. Product Design: Warehouse App
Editor's Notes
- We want to revolutionize…. Move from transaction to… We build smart and powerful products that drive predictability, intelligence, and value into our customers business. High level product vision?
- Growing customer base The world’s population is growing and expected to reach 9 billion people in 2050 Accompanying that population growth has been an increase in the number of people in emerging markets who are now able to access global markets The number of smartphone subscriptions is predicted to almost double to 4 billion by 2025, with nearly all of that growth coming from emerging markets Air freight in emerging markets is predicted to increase by more than 1 million metric tons by 2018, with the fastest growing routes between the Middle East and Asia Rise of the digital consumer The advent of e-commerce has empowered consumers who can now source products from anywhere in the world or compare prices with just the swipe of a smartphone screen Proportion of trade accounted for by B2C sector is expected to rise from 29% in 2013 to 36% in 2018 As consumers become more used to digital services (including e-commerce or apps such as Uber), they expect to receive the same quality and flexibility of service in other industries No longer is it enough for carriers to deliver a consignment on time – they need to offer a multi platform service to both personal and business customers. (They may also need to invest in specific services such as ‘cool supply chain’ for temperature sensitive goods, or more personalized ‘logistics of me’ offerings for consumers who value convenience.) Sharing economies, disruptive business models, the last mile being solved by package banks ---effects….disruption Political and economic developments Price of oil – recent slump in the price of oil has improved profit margins for logistics businesses (we see this as temporary). The logistics industry remains vulnerable to increases in the price of oil. Trade harmonization – economic unions (NAFTA, EU, ASEAN) have made progress toward trade harmonization within their boundaries which has reduced the costs and time spent processing the documentation required to trade between countries within these zones. Environmental awareness – growing attention to environmental concerns – companies will have to look at ways to use greener methods of transportation, reduce their overall CO2 emissions, and cut down on waste from packaging to ensure they can offer sustainable logistics operations.
- Treat the airway bill as a conversation – anyone who touches this can see what is going on Practical example ie, flowers Parcel motel – solves first and last mile to convenience of the consumer Staring to examine the whole supply chain What are the data points that should persist throughout the entire supply chain Start modularizing and creating services around this The value loop: an action—the state or behavior of things in the real world—gives rise to information Which is then manipulated in order to inform future action. For information to complete the loop and create value, it passes through the stages of the loop, each stage enabled by specific technologies. An act is monitored by a sensor that creates information. That information passed through a network so that it can be communicated, and standards—be they technical, legal, regulatory, or social—allow that information to aggregated across time and space. Augmented intelligence is a generic term meant to capture all manner of analytical support, which collectively are used to analyze information. The loop is completed via augmented behavior technologies that either enable automated autonomous action or shape human decision in a manner that leads to improved action.
- Treat the airway bill as a conversation – anyone who touches this can see what is going on Practical example ie, flowers Parcel motel – solves first and last mile to convenience of the consumer Staring to examine the whole supply chain What are the data points that should persist throughout the entire supply chain Start modularizing and creating services around this The value loop: an action—the state or behavior of things in the real world—gives rise to information Which is then manipulated in order to inform future action. For information to complete the loop and create value, it passes through the stages of the loop, each stage enabled by specific technologies. An act is monitored by a sensor that creates information. That information passed through a network so that it can be communicated, and standards—be they technical, legal, regulatory, or social—allow that information to aggregated across time and space. Augmented intelligence is a generic term meant to capture all manner of analytical support, which collectively are used to analyze information. The loop is completed via augmented behavior technologies that either enable automated autonomous action or shape human decision in a manner that leads to improved action.
- Growing customer base The world’s population is growing and expected to reach 9 billion people in 2050 Accompanying that population growth has been an increase in the number of people in emerging markets who are now able to access global markets The number of smartphone subscriptions is predicted to almost double to 4 billion by 2025, with nearly all of that growth coming from emerging markets Air freight in emerging markets is predicted to increase by more than 1 million metric tons by 2018, with the fastest growing routes between the Middle East and Asia Rise of the digital consumer The advent of e-commerce has empowered consumers who can now source products from anywhere in the world or compare prices with just the swipe of a smartphone screen Proportion of trade accounted for by B2C sector is expected to rise from 29% in 2013 to 36% in 2018 As consumers become more used to digital services (including e-commerce or apps such as Uber), they expect to receive the same quality and flexibility of service in other industries No longer is it enough for carriers to deliver a consignment on time – they need to offer a multi platform service to both personal and business customers. (They may also need to invest in specific services such as ‘cool supply chain’ for temperature sensitive goods, or more personalized ‘logistics of me’ offerings for consumers who value convenience.) Sharing economies, disruptive business models, the last mile being solved by package banks ---effects….disruption Political and economic developments Price of oil – recent slump in the price of oil has improved profit margins for logistics businesses (we see this as temporary). The logistics industry remains vulnerable to increases in the price of oil. Trade harmonization – economic unions (NAFTA, EU, ASEAN) have made progress toward trade harmonization within their boundaries which has reduced the costs and time spent processing the documentation required to trade between countries within these zones. Environmental awareness – growing attention to environmental concerns – companies will have to look at ways to use greener methods of transportation, reduce their overall CO2 emissions, and cut down on waste from packaging to ensure they can offer sustainable logistics operations.
- Growing customer base The world’s population is growing and expected to reach 9 billion people in 2050 Accompanying that population growth has been an increase in the number of people in emerging markets who are now able to access global markets The number of smartphone subscriptions is predicted to almost double to 4 billion by 2025, with nearly all of that growth coming from emerging markets Air freight in emerging markets is predicted to increase by more than 1 million metric tons by 2018, with the fastest growing routes between the Middle East and Asia Rise of the digital consumer The advent of e-commerce has empowered consumers who can now source products from anywhere in the world or compare prices with just the swipe of a smartphone screen Proportion of trade accounted for by B2C sector is expected to rise from 29% in 2013 to 36% in 2018 As consumers become more used to digital services (including e-commerce or apps such as Uber), they expect to receive the same quality and flexibility of service in other industries No longer is it enough for carriers to deliver a consignment on time – they need to offer a multi platform service to both personal and business customers. (They may also need to invest in specific services such as ‘cool supply chain’ for temperature sensitive goods, or more personalized ‘logistics of me’ offerings for consumers who value convenience.) Sharing economies, disruptive business models, the last mile being solved by package banks ---effects….disruption Political and economic developments Price of oil – recent slump in the price of oil has improved profit margins for logistics businesses (we see this as temporary). The logistics industry remains vulnerable to increases in the price of oil. Trade harmonization – economic unions (NAFTA, EU, ASEAN) have made progress toward trade harmonization within their boundaries which has reduced the costs and time spent processing the documentation required to trade between countries within these zones. Environmental awareness – growing attention to environmental concerns – companies will have to look at ways to use greener methods of transportation, reduce their overall CO2 emissions, and cut down on waste from packaging to ensure they can offer sustainable logistics operations.
- Growing customer base The world’s population is growing and expected to reach 9 billion people in 2050 Accompanying that population growth has been an increase in the number of people in emerging markets who are now able to access global markets The number of smartphone subscriptions is predicted to almost double to 4 billion by 2025, with nearly all of that growth coming from emerging markets Air freight in emerging markets is predicted to increase by more than 1 million metric tons by 2018, with the fastest growing routes between the Middle East and Asia Rise of the digital consumer The advent of e-commerce has empowered consumers who can now source products from anywhere in the world or compare prices with just the swipe of a smartphone screen Proportion of trade accounted for by B2C sector is expected to rise from 29% in 2013 to 36% in 2018 As consumers become more used to digital services (including e-commerce or apps such as Uber), they expect to receive the same quality and flexibility of service in other industries No longer is it enough for carriers to deliver a consignment on time – they need to offer a multi platform service to both personal and business customers. (They may also need to invest in specific services such as ‘cool supply chain’ for temperature sensitive goods, or more personalized ‘logistics of me’ offerings for consumers who value convenience.) Sharing economies, disruptive business models, the last mile being solved by package banks ---effects….disruption Political and economic developments Price of oil – recent slump in the price of oil has improved profit margins for logistics businesses (we see this as temporary). The logistics industry remains vulnerable to increases in the price of oil. Trade harmonization – economic unions (NAFTA, EU, ASEAN) have made progress toward trade harmonization within their boundaries which has reduced the costs and time spent processing the documentation required to trade between countries within these zones. Environmental awareness – growing attention to environmental concerns – companies will have to look at ways to use greener methods of transportation, reduce their overall CO2 emissions, and cut down on waste from packaging to ensure they can offer sustainable logistics operations.
- Growing customer base The world’s population is growing and expected to reach 9 billion people in 2050 Accompanying that population growth has been an increase in the number of people in emerging markets who are now able to access global markets The number of smartphone subscriptions is predicted to almost double to 4 billion by 2025, with nearly all of that growth coming from emerging markets Air freight in emerging markets is predicted to increase by more than 1 million metric tons by 2018, with the fastest growing routes between the Middle East and Asia Rise of the digital consumer The advent of e-commerce has empowered consumers who can now source products from anywhere in the world or compare prices with just the swipe of a smartphone screen Proportion of trade accounted for by B2C sector is expected to rise from 29% in 2013 to 36% in 2018 As consumers become more used to digital services (including e-commerce or apps such as Uber), they expect to receive the same quality and flexibility of service in other industries No longer is it enough for carriers to deliver a consignment on time – they need to offer a multi platform service to both personal and business customers. (They may also need to invest in specific services such as ‘cool supply chain’ for temperature sensitive goods, or more personalized ‘logistics of me’ offerings for consumers who value convenience.) Sharing economies, disruptive business models, the last mile being solved by package banks ---effects….disruption Political and economic developments Price of oil – recent slump in the price of oil has improved profit margins for logistics businesses (we see this as temporary). The logistics industry remains vulnerable to increases in the price of oil. Trade harmonization – economic unions (NAFTA, EU, ASEAN) have made progress toward trade harmonization within their boundaries which has reduced the costs and time spent processing the documentation required to trade between countries within these zones. Environmental awareness – growing attention to environmental concerns – companies will have to look at ways to use greener methods of transportation, reduce their overall CO2 emissions, and cut down on waste from packaging to ensure they can offer sustainable logistics operations.
- Growing customer base The world’s population is growing and expected to reach 9 billion people in 2050 Accompanying that population growth has been an increase in the number of people in emerging markets who are now able to access global markets The number of smartphone subscriptions is predicted to almost double to 4 billion by 2025, with nearly all of that growth coming from emerging markets Air freight in emerging markets is predicted to increase by more than 1 million metric tons by 2018, with the fastest growing routes between the Middle East and Asia Rise of the digital consumer The advent of e-commerce has empowered consumers who can now source products from anywhere in the world or compare prices with just the swipe of a smartphone screen Proportion of trade accounted for by B2C sector is expected to rise from 29% in 2013 to 36% in 2018 As consumers become more used to digital services (including e-commerce or apps such as Uber), they expect to receive the same quality and flexibility of service in other industries No longer is it enough for carriers to deliver a consignment on time – they need to offer a multi platform service to both personal and business customers. (They may also need to invest in specific services such as ‘cool supply chain’ for temperature sensitive goods, or more personalized ‘logistics of me’ offerings for consumers who value convenience.) Sharing economies, disruptive business models, the last mile being solved by package banks ---effects….disruption Political and economic developments Price of oil – recent slump in the price of oil has improved profit margins for logistics businesses (we see this as temporary). The logistics industry remains vulnerable to increases in the price of oil. Trade harmonization – economic unions (NAFTA, EU, ASEAN) have made progress toward trade harmonization within their boundaries which has reduced the costs and time spent processing the documentation required to trade between countries within these zones. Environmental awareness – growing attention to environmental concerns – companies will have to look at ways to use greener methods of transportation, reduce their overall CO2 emissions, and cut down on waste from packaging to ensure they can offer sustainable logistics operations.
- Growing customer base The world’s population is growing and expected to reach 9 billion people in 2050 Accompanying that population growth has been an increase in the number of people in emerging markets who are now able to access global markets The number of smartphone subscriptions is predicted to almost double to 4 billion by 2025, with nearly all of that growth coming from emerging markets Air freight in emerging markets is predicted to increase by more than 1 million metric tons by 2018, with the fastest growing routes between the Middle East and Asia Rise of the digital consumer The advent of e-commerce has empowered consumers who can now source products from anywhere in the world or compare prices with just the swipe of a smartphone screen Proportion of trade accounted for by B2C sector is expected to rise from 29% in 2013 to 36% in 2018 As consumers become more used to digital services (including e-commerce or apps such as Uber), they expect to receive the same quality and flexibility of service in other industries No longer is it enough for carriers to deliver a consignment on time – they need to offer a multi platform service to both personal and business customers. (They may also need to invest in specific services such as ‘cool supply chain’ for temperature sensitive goods, or more personalized ‘logistics of me’ offerings for consumers who value convenience.) Sharing economies, disruptive business models, the last mile being solved by package banks ---effects….disruption Political and economic developments Price of oil – recent slump in the price of oil has improved profit margins for logistics businesses (we see this as temporary). The logistics industry remains vulnerable to increases in the price of oil. Trade harmonization – economic unions (NAFTA, EU, ASEAN) have made progress toward trade harmonization within their boundaries which has reduced the costs and time spent processing the documentation required to trade between countries within these zones. Environmental awareness – growing attention to environmental concerns – companies will have to look at ways to use greener methods of transportation, reduce their overall CO2 emissions, and cut down on waste from packaging to ensure they can offer sustainable logistics operations.
- Growing customer base The world’s population is growing and expected to reach 9 billion people in 2050 Accompanying that population growth has been an increase in the number of people in emerging markets who are now able to access global markets The number of smartphone subscriptions is predicted to almost double to 4 billion by 2025, with nearly all of that growth coming from emerging markets Air freight in emerging markets is predicted to increase by more than 1 million metric tons by 2018, with the fastest growing routes between the Middle East and Asia Rise of the digital consumer The advent of e-commerce has empowered consumers who can now source products from anywhere in the world or compare prices with just the swipe of a smartphone screen Proportion of trade accounted for by B2C sector is expected to rise from 29% in 2013 to 36% in 2018 As consumers become more used to digital services (including e-commerce or apps such as Uber), they expect to receive the same quality and flexibility of service in other industries No longer is it enough for carriers to deliver a consignment on time – they need to offer a multi platform service to both personal and business customers. (They may also need to invest in specific services such as ‘cool supply chain’ for temperature sensitive goods, or more personalized ‘logistics of me’ offerings for consumers who value convenience.) Sharing economies, disruptive business models, the last mile being solved by package banks ---effects….disruption Political and economic developments Price of oil – recent slump in the price of oil has improved profit margins for logistics businesses (we see this as temporary). The logistics industry remains vulnerable to increases in the price of oil. Trade harmonization – economic unions (NAFTA, EU, ASEAN) have made progress toward trade harmonization within their boundaries which has reduced the costs and time spent processing the documentation required to trade between countries within these zones. Environmental awareness – growing attention to environmental concerns – companies will have to look at ways to use greener methods of transportation, reduce their overall CO2 emissions, and cut down on waste from packaging to ensure they can offer sustainable logistics operations.
- Growing customer base The world’s population is growing and expected to reach 9 billion people in 2050 Accompanying that population growth has been an increase in the number of people in emerging markets who are now able to access global markets The number of smartphone subscriptions is predicted to almost double to 4 billion by 2025, with nearly all of that growth coming from emerging markets Air freight in emerging markets is predicted to increase by more than 1 million metric tons by 2018, with the fastest growing routes between the Middle East and Asia Rise of the digital consumer The advent of e-commerce has empowered consumers who can now source products from anywhere in the world or compare prices with just the swipe of a smartphone screen Proportion of trade accounted for by B2C sector is expected to rise from 29% in 2013 to 36% in 2018 As consumers become more used to digital services (including e-commerce or apps such as Uber), they expect to receive the same quality and flexibility of service in other industries No longer is it enough for carriers to deliver a consignment on time – they need to offer a multi platform service to both personal and business customers. (They may also need to invest in specific services such as ‘cool supply chain’ for temperature sensitive goods, or more personalized ‘logistics of me’ offerings for consumers who value convenience.) Sharing economies, disruptive business models, the last mile being solved by package banks ---effects….disruption Political and economic developments Price of oil – recent slump in the price of oil has improved profit margins for logistics businesses (we see this as temporary). The logistics industry remains vulnerable to increases in the price of oil. Trade harmonization – economic unions (NAFTA, EU, ASEAN) have made progress toward trade harmonization within their boundaries which has reduced the costs and time spent processing the documentation required to trade between countries within these zones. Environmental awareness – growing attention to environmental concerns – companies will have to look at ways to use greener methods of transportation, reduce their overall CO2 emissions, and cut down on waste from packaging to ensure they can offer sustainable logistics operations.
- Growing customer base The world’s population is growing and expected to reach 9 billion people in 2050 Accompanying that population growth has been an increase in the number of people in emerging markets who are now able to access global markets The number of smartphone subscriptions is predicted to almost double to 4 billion by 2025, with nearly all of that growth coming from emerging markets Air freight in emerging markets is predicted to increase by more than 1 million metric tons by 2018, with the fastest growing routes between the Middle East and Asia Rise of the digital consumer The advent of e-commerce has empowered consumers who can now source products from anywhere in the world or compare prices with just the swipe of a smartphone screen Proportion of trade accounted for by B2C sector is expected to rise from 29% in 2013 to 36% in 2018 As consumers become more used to digital services (including e-commerce or apps such as Uber), they expect to receive the same quality and flexibility of service in other industries No longer is it enough for carriers to deliver a consignment on time – they need to offer a multi platform service to both personal and business customers. (They may also need to invest in specific services such as ‘cool supply chain’ for temperature sensitive goods, or more personalized ‘logistics of me’ offerings for consumers who value convenience.) Sharing economies, disruptive business models, the last mile being solved by package banks ---effects….disruption Political and economic developments Price of oil – recent slump in the price of oil has improved profit margins for logistics businesses (we see this as temporary). The logistics industry remains vulnerable to increases in the price of oil. Trade harmonization – economic unions (NAFTA, EU, ASEAN) have made progress toward trade harmonization within their boundaries which has reduced the costs and time spent processing the documentation required to trade between countries within these zones. Environmental awareness – growing attention to environmental concerns – companies will have to look at ways to use greener methods of transportation, reduce their overall CO2 emissions, and cut down on waste from packaging to ensure they can offer sustainable logistics operations.