The document discusses the ongoing digital disruption in the airline industry and highlights five key trends affecting airlines today. It emphasizes the critical importance of intelligent automation and the necessity for airlines to develop a change-ready workforce as they face increasing competition from digital platforms. Additionally, the document underscores the need for airlines to ethically manage customer data to maintain trust and support growth in an evolving digital ecosystem.

1. Turbulence ahead:
plotting a course through
digital disruption
Technology Vision for Airlines 2016

2. 5 trends disrupting
the Airlines industry
In a hyper-competitive environment, with tight margins and
increasing regulatory and environmental pressures, airlines have for
many years looked to technology to deliver greater operational
efficiency. Now digital has ushered in opportunities for creating and
delivering differentiated customer experiences that can build loyalty.
And in a marketplace where it’s harder than ever to stand out, that’s
absolutely critical.
Copyright © 2016 Accenture. All rights reserved.

3. It’s no surprise that the airline industry has already been an
enthusiastic adopter of automation (our research shows that
over half of all airlines have realized savings through
intelligent automation). Intelligent automation provides an
opportunity to dramatically transform the passenger
experience, from baggage drop and departure lounge
admittance through to in-flight, arrival, transfer and baggage
claim. However, it’s the collaboration between people and
automated technologies that enables people to do things
differently. And do different things.

4. The next frontier? Use it to transform the passenger
experience…
Airlines have already adopted automation.
Over 50% use it to drive savings
45%
are currently
doing this
85%
make it
a priority
84%
believe AI will
transform the
industry within
3 years

5. In today’s world, it takes more than tools and
technologies to keep pace with constant change.
Organizations in all industries need a change-ready
workforce. Digital technologies are changing the
workforce, and what it can achieve, in unexpected ways.

6. 71%
of airline executives
know they need a
change-ready
workforce…fast
63%
expect most jobs to
incorporate digital within
3 years
Airlines know they
need to reskill their
workforce…to do things
differently.
And do different things

7. Airlines have experienced the disruptive impact of platforms –
perhaps more than most other industries. Booking sites like
Expedia and Opodo are now an established presence in the
industry. Indeed, in many ways, they’ve reshaped consumers’
expectations of airlines in terms of ease of access, pricing
and flexibility. Meanwhile, as airlines become increasingly
commoditized “buses”, transporting passengers at the lowest
possible price, they’re becoming increasingly vulnerable to
competition from digital-born platforms like Google.

8. 94%
of airline executives
believe a platform-
business strategy is
critical for growth
53%
are planning digital
initiatives with new
ecosystem partners
43%
say the industry is
shifting to a demand-side
dynamic based on the
power of ecosystems

9. With companies across industries making big
investments in digital platforms, they’re not only
fundamentally changing how they create and deliver
products and services. They’re also providing fertile soil
in which whole new digital ecosystems can take root
and grow. This opens the way to unparalleled disruption
from expected, and unexpected, sources. Airlines must
use their market positions to keep track of these new
ecosystems, get ready for their impacts and benefit
from the opportunities they create.

10. 85%
recognize industry
boundaries are
dissolving…
88%
expect the Industrial
Internet to introduce
significant disruption
83%
know they must reinvent
their businesses
but they’re underestimating the threat of disruption
from outside the industry…almost 40% are still
focused inwards

11. Passengers provide airlines with their personal data
because they understand the need for this information in
terms of security and safety. But while this means airlines
have little trouble in gathering customer data, they are
also somewhat restricted in how they can use it beyond
its immediate purpose.
Airlines must figure out how to expand the commercial
opportunities presented by customer data while, at the
same time, building a more trusted relationship with their
customers.

12. 80%
indicate that
unethical/insecure data
handling will exclude them
from digital ecosystems
that drive growth
63%
report security/privacy
breaches have doubled
in 2 years
3 out of 4
say they’re exposed to
more digital risks than
they can handle
83% believe they’re leaders in ethical
data handling

13. About Accenture
Accenture is a leading global professional
services company, providing a broad range of
services and solutions in strategy, consulting,
digital, technology and operations. Combining
unmatched experience and specialized skills
across more than 40 industries and all
business functions—underpinned by the
world’s largest delivery network—Accenture
works at the intersection of business and
technology to help clients improve their
performance and create sustainable value for
their stakeholders. With approximately 373,000
people serving clients in more than 120
countries, Accenture drives innovation to
improve the way the world works and lives.
Visit us at www.accenture.com.
Copyright © 2016 Accenture All
rights reserved.
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Performance Delivered are
trademarks of Accenture.