IT Outsourcing and Commercialization at Düsseldorf Airport (DUS)

IT Outsourcing and
Commercialization at
Düsseldorf Airport
(DUS)
Dr. Christian Jahncke
Agenda
• Challenges & Opportunities:
 Düsseldorf International Airport
 Airport challenges
 Evolving business model
• IT as a key business enabler
 Approach
 Example: Dusseldorf Airport
 Commercialization
• Benefits
Example - Düsseldorf International Airport
(FDG)
Düsseldorf International Airport (FDG)
• Capacity
• Up to 25 million passengers
• Destinations
• 170 destinations worldwide
• Airlines
• 70 airlines
• Movements
• More than 700 flights per day
• Passengers in 2012
• >21,0 Mill. passengers and growing
• Nr. 3 in Germany, Nr. 22 in Europe
Airports are facing ever growing challenges
Capacity Management
Airport Expansion
Disruption Management
Economic uncertainty
Security
Technology Evolution
And conflicting priorities
• Deliver on the long-term plans amid economic uncertainty
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Airports do not have the luxury of short-term planning
Airport infrastructure is built to last and ready to meet future demand…………
Facilities and resources need to be maintained
• Regional development engine
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Increased focus on the airport as a vital economic driver
Managing growth and downturns
A keystone to national security and emergency response
• Service provider to a demanding and varied customer base at the airport
• Profit center
•
•
Commercialization
Business case driven new development
IT is at the heart of airport operations
Airport Process
Boarding
Flight
Arrival
Airport Operations
Management
AIRCOM
Air Traffic Control
Airport Operations
Management
Passenger Management
Flight Operations
Passenger
Management
Cargo Management
Common Use Passenger Processing
Infrastructure
Fleet,
Crew Management
Passenger
Communications
Advanced Passenger Information, Biometrics
Border Management
Communication Services- End-to-End Connectivity
CUTE
Infrastructure
Service Management
Baggage Management
With the right approach, IT can be a key business
enabler supporting the new airport business model
Landlord:
• Room
• Light
• Heat & power
Providing common
technology:
• Check-in
• Baggage
• Fids
Becoming a
Service Provider
IT as a key business enabler
Approach
&
Example
Airport IT environment before SAIT
Tenant IT&T Providers
Telecom
Provider
Airlines
Technology
Provider
Restaurants
Service
Provider
Shopping
Network
Provider
Car Rental
Tenants
Internal IT Department
Airport
Airport
IT&T
Partners
Telecom
IT Operations & Services
xSP
IT Infrastructure
IT Vendors
Two key steps
Strengthening/
consolidating the
airport IT:
Become an IT Service
Provider:
•
IT service portfolio
•
IT investments
•
Customer/supplier relationship
•
Integration
•
Service levels SLA
Airport IT environment today
Tenant IT&T Providers
Telecom
Provider
Technology
Provider
Service
Provider
Network
Provider
Ecosystem
Telecom Carriers
Tenants
Airlines
Restaurants
Shopping
Car Rental
Telcos
Ecosystem
IT&T
Partners
Airport
IT
Provider
Managed Services
Infrastructure Services
Carrier Services
Business Services
Telecom
xSP
IT Vendors
Enhance commercial revenues through
diversification of services
Enhance
Commercial
Commercial
Revenues
52%
Non-aeronautical
charges
7%
Property
9% IT Services
Re-sell
Non-aeronautical
charges
Parking
Property
10%
Aeronautical Aeronautical
48%
Revenues
Parking
Retail
16%
Retail
Car
Carhire
hire
Advertising
5%
Advertising
5%
Source: ACSA 2008 Annual Report
Düsseldorf Airport IT Partnership
“We wanted to get into a joint venture with two main targets. One was to
achieve a significant reduction in IT costs averaging 12 per cent or 1.5
million Euros annually over ten years. And the second was the opportunity to
gain early advantage in the adoption of new technology. Both goals are of
equal significance to us”
- Thomas Schnalke, FDG Managing Director
“The establishment of a commercially run IT Service Company at Düsseldorf
Airport will benefit the wider Airport Community through the offering of
best-in-class IT Services at competitive prices.
- Dr. Christian Jahncke, SITA Airport IT- Managing Director
Facts on SITA Airport IT GmbH (SAIT)
Shareholders:
• SITA 70 %, Düsseldorf Airport 30 %
Staff:
• 110 people
Economical Situation:
• Foundation in 2005
• Results according to budget!
• Revenue > 28 Mio € in 2012
Customer portfolio:
• FDG, FDG affiliates, 3rd party customers on campus, SITA, and
airlines like Lufthansa, Condor, Air Berlin, 3rd party off campus
Regional focus:
• DUS and selected international locations
Profile of SITA Airport IT GmbH (SAIT)
Our approach to services:
1) Consulting (identify new projects and tasks),
2) Define requirements
3) Assess costs (save $$)
4) Deliver, integrate and operate the system
by
Deliver services based on long-term contracts
Share existing systems between customers (airport-airport, airportairline) exploit synergies for comparable customers
Indicate future developments
Active design of new solutions
Deliver 100 % SLA and reach maximum customer satisfaction
SITA Airport IT services, from A…Z
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Airport consulting services
Airport TV
ACC Airport Control Center (from 11/2012)
AODB (development and implementation of new data base)
BRS – Baggage Reconciliation System (available in sortation hall and apron)
BSM – Baggage Source Message
CDM (Collaborative Decision Making) (11/ 2012)
CUSS (up to 64 CUSS kiosks for LH, AB, AF and CUSS airport)
CUTE (350 workstations in DUS)
CUTE (180 workstations in CGN)
Customer loyalty program card (e-Business DUS card)
Data Center operation (99,98 availability, redundant)
Data Center hosting (3 rd party business)
Desktop service (1500 items)
FIDS (replacement of all monitors approx. 1000 with new format)
FOD (Foreign Object Debris)
Gigabit ethernet network (replacement ATM)
Telecommunication (5000 lines)
Parking Operation
SITA PMR (1200 handsets)
RMS (for Ground handling)
SAP ERP
SAP BI
WLAN (more than 120 access points)
Increase of revenues by new concepts
Prebooking
New concepts:
Seamless
travelling
New payment
methods
RFID
Licence Plate
Recognition
Homeprint barcode as unified media
replacement
Tremendous cross-marketingpotential and transportation link
Near field communication (NFC) up
to 100 €
Pre-paid reservation via 2 D barcode
Target group: Frequent and contract
parkers
Potential: Link to city card
Security for car and airports
Supportive media for contract parkers
Increase of revenues by new concepts
Seamless travelling starting by real time pre-booking
 > 1,5 Mio. transactions per year
 > 200.000 visits/month on websites
 Real time reservation and confirmation
 Customers feel safe and comfortable
 Customers get the booking confirmation and the feeling of capacity management
 Print & home tickets or airline ticket
Increase of revenues by new concepts
Seamless travelling by near field communication technology
Contactless payment and identification for pre-booking
EMV and PCI/DSS compliant turn around solution
Pre-payment by voucher/airline ticket
High security and marketing tool for cross marketing
Increase of revenues by new concepts
Seamless travelling by RFID technology
Access by contactless RFID-Tags for contract parkers/taxi/employees/special card
holders
Tag linked to car – no fraud
Tags in wind shield will be destroyed in case of replacement
Seamless entry and exit
Parking fees will be charged to account
Online self-service platform
Increase of revenues by new concepts
Licence Plate Recognition
More convenience for consumers
Increased customer data
Increased security
Improved auditing and revenue control
Geo-marketing
Additional revenue streams by new products
Block parking at Duesseldorf airport (pilot)
Actual situation:
Waste of space at the parking
garage
New parking concept resulting in 60 % space efficency
Delay of investements for car park construction covering peak times
Drastic increase of revenues per space
Manual and automated version
Benefits
to
DUS
Benefits to Airports
World class IT
• Innovation
• World-class products and
services
• Global standards and
processes (ITIL)
• SLAs and Quality of Service
• Control operating costs
• Revenue Generation
• Transform fixed costs into
variable costs
• Free up capital funds
Financial
Competitive edge
• New business model
• Transform IT from a cost centre to
a profit centre
• State of the art integrated
technology providing flexibility,
visibility and scalability
• Long term engagement
• Trusted and experienced partner to
help the airport in addressing their
key challenges
• Access to industry & IT experts
Partnership
Can be achieved through a range of commercial
partnership models
Functional
Efficiency
 Fee for service
 Service Level
Agreement
Staff/Asset
acquisition
Objective
Alignment
Minimize Capital
Business Goal
Achievement
 Transition Services
Joint
Venture
Revenue
Enhancement
Market Creation
 Legal structure
 Risk reward
 Joint capability
development
 Benefits sharing
 Joint sales
 Resource transition
 Channel management
 Share risk & reward
 Capital Acquisition
 Service Level
Agreement
Go to
Market
 Governance
Conclusion
•Lower the cost of IT to the airport operator
•Ensure a smooth transition from an internal IT
department to a market facing, commercially
run IT service company
•Introduce a Global IT company as a neutral IT
service provider to all companies present at the
airport and thus ensure commercial success
•Provide the local IT employees with the latest
trends in technology and free access to a
tremendous pool of knowledge in ATI
…I am glad to welcome you at SAIT in Düsseldorf !
Thank you for your attention !
Contact
Christian.Jahncke@sita.aero
Phone: 0211-421 55001
www.sita-airport-it.aero