Innovation Aviation Data Symposium Berlin 20th June 2018 - IATA
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Innovation Aviation Data Symposium Berlin 20 th June 2018 Juan Iván Martín Andrei Grintchenko Head of Innovation, FDS, IATA Head FDS BI Projects, IATA martinj@iata.org grintchena@iata.org linkedin.com/in/jimartin linkedin.com/in/grintchenko Aviation Data Symposium 2018
Things to look at Uberization Blockchain (Sharing Economy) Big Data Predictive Fraud Patents analytics Prevention Self Biometrics booking D igital tools P latfo rm B u sin ess Cloud T ru st Eco n o m y In telligen ce Computing Meta -searching Crypto Dev Open -currencies Tokens Portal APIs iOt A.I. Inter Millennial -modality Electric consumer Social Speed Vehicles Mobile Media of sound Low cost Drones models Robotics flights D igital Gaming N ew In telligen t BB C u sto m ers T ravel V eh icles onboard Space Sensors 3D glasses travelling 3D printing Autonomous Wearables +augmented Vehicles & internet reality Parabolic Renewable of things Apps flights Energies OPEN INNOVATION ECOSYSTEM Aviation Data Symposium 2018
Ongoing projects NDC IDM 1ID EP IATA Open TIP IFG APIs Coin NDC Etc… 1 Order NGISS Link Aviation Data Symposium 2018
Things we do around data Aviation Promoting Open Governance Data acceptance APIs & Control Model Aviation Data Symposium 2018
Innovation Jam S7 example (2/2) THANK YOU! Juan Iván Martín Andrei Grintchenko Head of Innovation, FDS, IATA Head FDS BI Projects, IATA martinj@iata.org grintchena@iata.org linkedin.com/in/jimartin linkedin.com/in/grintchenko Aviation Data Symposium 2018
Overview GmbH since January 2015 Team: End of 2014: 8 employees Today: 21 employees Mix of externals and internals: Combination of entrepreneurial know-how with years of Lufthansa experience and airline expertise
Technological progress is changing daily life 2005 | $99 Conclave Pope Benedict XVI. 2013 | $99 Conclave Pope Francis
Today’s economy is tech-dominated! 2011-2017: Largest Companies by Market Cap Top-10 largest companies by market cap grouped by industry affiliation 1 1 1 3 2 4 6 4 3 2 4 6 5 2 2 4 3 3 3 5 6 2011 2012 2013 2014 2015 2016 2017 Oil Companies Other Industries Tech Companies
The speed of innovation within Travel & Mobility Tech is skyrocketing Note: 8-Year graph based on available data on disclosed funding rounds Source: LIH analysis in cooperation with Pitchbook (as of Feb 15, 2018)
Forming a few of today‘s most valuable private companies in the world Source: LIH analysis in cooperation with Pitchbook (as of Feb 15, 2018)
WHAT’S THE ROLE OF THE LIH IN THIS CONTEXT?
Our Mission Our mission is to quickly explore new digital opportunities for Lufthansa Group and convert them into businesses.
Strategic fields of action Build Develop and build our own digital products & services. Partner Foster selected partnerships between digital players and Lufthansa Group. Invest Educate and support Lufthansa Group at strategic venture capital investments in startups.
Partner: LIH initiates collaborations with Travel & Mobility Tech startups Strong focus in 2014/2015 300+ 40 5 Co-creation Projekte implementiert Co-creation Co-creation Startups Startups Opportunitäten Opportunitäten evaluiert identifiziert identifiziert
Build: LIH validates business model innovations Strong focus since 2015 We entirely focus on customer needs. (starting point = painpoints ot the traveler) We quickly act using prototypes (Fail fast) We use validated data to improve products (Data beats opinion) Value hypothesis Growth hypothesis
Every product starts as a “Minimum Viable Product“ Customer 1 2 3 3b 4 Customer
PRODUCT EXAMPLES
AirlineCheckins.com Automatic check-in assistant for more than 200 airlines worldwide
The current state of airline online check-in
Lufthansa Open API – developer.Lufthansa.com Programming interface opening up the Lufthansa data world to external and internal developers LATEST NEWS BY TODAY BOOKING CAPABILITY VIA THE OPEN API AVAILABLE!
Investment Fleet Logistics First ever startup investment by Lufthansa Cargo The LIH supported throughout the whole process – from screening the Cargo Tech market to the closing of the investment
We design the happy journey of tomorrow
For more insight follow our Travel & Mobility Tech Radar lh-innovationhub.de/radar/
THANK YOU!
Innovation Jam: IATA Hackathons - Innovation in Action Ö Ursula Silling, CEO, XXL Solutions & India Hackathon Jury Member Ö Juan Oliver Manager, FDS Business Intelligence Projects Aviation Data Symposium 2018
Aviation Data Symposium 2018
2 3 -2 5 FEB R U A R Y, 2 0 1 8 Ö Challenge: Personalization Ö Challenge: Ancillaries Cross-Sell Ö Winner Team: RMS Ö Incuation Phase Aviation Data Symposium 2018
Aviation Data Symposium 2018
Aviation Data Symposium 2018
IATA Hackathons Innovation in Action
After 28 hours on non-stop coding… Winners of the IATA NDC Hackathon “DATA Corporate Prize” held in Kochi, India on February 2018: Revenue Management Systems Travis Lewis Fabian Widyadri Michael Peters
Our inspiration… Age of customer • 100% customer centric • Dynamic pricing • Data Intelligence; AI and ML Age of information • Focus on predictive analysis • Transformation from product centric to customer centric x -20x • Introduction of CRM systems 2015 Age of distribution • Focus on wider distribution • Introduction of GDS • First data structures created -2015 • Introduction of different fares 2000 Start of Commerce • Tickets sold via sales agents. 2000 • No price differentiation 1975- • Product priced as airfare Stage IV Stage III Inspired -1975 Stage II By Customers 1950 Engaged Stage I With Customers Responsive To Customers Targeted On Customers
Our inspiration… Base Product Offer Upsell Offer Cross-sell Offer Payment
The idea pitch Airlines using NDC can improve their sales conversion by having a better process around customer profile recognition. Our challenge is to identify the customer profile, their willingness-to-pay and offer interests by help of micro-segmentation. By help of AI we can identify the customer profile, optimize the product shelf by bundling the base offer, upsell offer and cross-sell offer in the most effective manner with the ultimate goal to improve the conversion of the customer throughout the sales funnel. Our process will establish a active feedback port with the revenue management system which can recommend flight re-optimization by help of actual demand insights versus demand forecast (using only historical bookings).
Optimizing the airline commercial paradigm ORIENTATION BOOKING UPSELL CROSS SELL NPS >> >> >> >> >> Can we identify the When a booking is Can we focus on Can we provide What can we customer in the made, can we offer better offer and added value or a improve to ensure stage where it is the right price at the order management favorable position that the customer orienting for a right moment in so the product shelf by offering services fly us again, or ticket, and ‘help’ time without is not a distraction? for convenience? better, recommend him to look at you? dilution? us to others?
Why join an IATA Hackathon? Knowledge Mining Time Management Be innovative The ‘Next-Gen’ of RM evolves A sense of urgency created by A hackathon is all about around commerce. NDC will time and competition creates innovation. Validate our ideas, likely play an important role in an environment which steers compiling data to put decisions that. We need to tiptoe the for creativity impossible to in the right context, determine knowledge pool and get recreate in a true business scalability, and so on exposure in the field environment Networking Breaking routines Having fun Understand the ‘state of the Sometimes, we can be a little Get a positive vibe from an technology’ and meet with the full of ourselves that we forget environment where people are industry innovators which are to share with and learn from passionate to innovate, disrupt involved with the marketing, others. Hackathons is a place the status quo, pass practices and concepts where we can realize our boundaries and are highly development of NDC strengths and weaknesses ambitious
Some impressions
Finding the right accuracy… 35% 45% 56% 81% 66% 90% End of Relevant Data Change in ML Highest Not always Our determined Hackathon Sources methods Accuracy Score improvement sweat spot After the NDC Hackathon, the first challenge was to test the data on real airline data. In iterations of 2 weeks, we test over a dozen of airlines and measure our classification accuracy. The regression accuracy is related to the success of our ability to match the correct classification profile on a Shopping Request. We are still in a experience of big data shifts.
Thank You!
OliverJ@iata.org Aviation Data Symposium 2018
The Twelve Labors of mastering Big Data an Amadeus experience Pascal Clément Head of Airlines Data Unit Amadeus
January, 2013 Where do we start? © Amadeus IT Group and its affiliates and subsidiaries
Data Silos WHAT IT LOOKS LIKE _ Where the problems start WHAT YOU WISH IT LOOKED LIKE © Amadeus IT Group and its affiliates and subsidiaries
GDPR? _ Who? Where? How? Legal? Data Access Governance © Amadeus IT Group and its affiliates and subsidiaries
Analytical vs. Transactional _ Bringing analytics in a world © Amadeus IT Group and its affiliates and subsidiaries mastering transactions
Cost & Investment _ You quickly realize that © Amadeus IT Group and its affiliates and subsidiaries storage and computation goes far beyond what you think
Speed & Agility _ Analytics and Big Data © Amadeus IT Group and its affiliates and subsidiaries needs much more speed and agility than legacy
The Budget Problem _ How do you manage financing © Amadeus IT Group and its affiliates and subsidiaries experimentation vs. plan?
Build Data Science Capabilities THE BEGINNER _ A Data Science capability THE MASTER © Amadeus IT Group and its affiliates and subsidiaries needs much more than data scientists
Data preparation & Quality _ Data is NOT ready for analytics © Amadeus IT Group and its affiliates and subsidiaries PREPARATION IS KEY
Industrialization Operation. Security REALITY _ Needs to be built for thousands © Amadeus IT Group and its affiliates and subsidiaries of users all over the world EXPECTATIONS
Keeping Data Scientists Happy _ They receive a job offer © Amadeus IT Group and its affiliates and subsidiaries every day
_ It’s becoming critical Real time © Amadeus IT Group and its affiliates and subsidiaries
_ The ultimate Big Data Goal Automation © Amadeus IT Group and its affiliates and subsidiaries
Conclusion 5 years of real life experience You can benefit from our experience through a 2 weeks © Amadeus IT Group and its affiliates and subsidiaries assessment on Big Data Maturity
Big Data Maturity Model Here, you appear level 1. Timing > 1 Data Platform and Architecture Lead Time for Resources month. Let’s see the next steps to reach level 2 then 3. Readiness for new project 4 Here, you appear level 2 Let’s see the next steps 3 Data Retrieval to reach level 2 then 3 Storage 4 (Input into platform) 4 3 2 3 2 2 1 1 1 Here, you appear level 1 Batch & Relatively small 1 1 data only. Let’s see the next steps to reach level Here, you appear level 1. 2 2 2 then 3 Too much in Silos with its own technologies. No Share. Let’s 3 3 © Amadeus IT Group and its affiliates and subsidiaries see the next steps to reach 4 level 2 then 3. 4 Cohesiveness Programming Framework Here, you appear level 1 Batch and relatively small data only. Let’s see the next steps to reach level 2 then 3.
Thank you! amadeus.com You can follow us on: amadeus.com/blog AmadeusITgroup
How Airlines can harness and leverage data Rodrigo Ramos Managing Director, Sabre Iceland Product Head of Intelligence Exchange 20 June 2018
Key challenges for airlines to leverage data The PSS is not Complexity of bringing A customer-centric There is a huge need for designed for custom together disparate, data business requires airlines to leverage business process and sets to achieve digital non-core systems to more data and a DWH sense and respond transformation have customer data is not enough actions 12 of enterprise data is typically utilized for analysis 29 of the IT budget is now generated by business unit investment rather than IT Source: Gartner ©2018 Sabre GLBL Inc. All rights reserved. 2
“IT application development time is highly correlated with IT’s impact on business performance…” “The speed… to convert mass amounts of customer data into insights, and insight into action Forrester Research is now a critical differentiator.” ©2018 Sabre GLBL Inc. All rights reserved. 7
Intelligence Exchange: the open airline enterprise agility platform Apps and processes Sense and respond User experience System of reference System of record ©2018 Sabre GLBL Inc. All rights reserved. 10
Intelligence Exchange MICRO-APPS An ecosystem of micro-apps built on the Intelligence Exchange Platform https://vimeo.com/274572139/50f82f670e
What is a Micro-App? PLACE WEB APP OR SITE Micro-App SCREENSHOT HERE Business process templates 75% standard / 25% configurable Take action across enterprise systems Deploy fast to save time and money marketplace.sabre.com/IX
Solve PERVASIVE BUSINESS CHALLENGES across the customer journey Personalized Trip Prom otions Top Tier Auto Upgrades Earn incremental revenue Enable customer centricity Fare Error Detector Real Tim e Flight Analysis Prevent revenue leakage Streamline airline operations
Last Minute Upgrades checks for upgrades and automatically notifies qualified customers based on tier or other criteria. On the day of departure, In order to fill that cabin, Based on rules in the WorldWide Air identifies that WWA decides to offer Micro-App, promotions they have unsold seats in a promotions to qualifying are sent to customers particular cabin. customers to encourage and front-line agents. upgrades.
Imagine if… you could automatically manage seat swaps in real-time based on customer data Tailored Opt-In Message • Customer can opt-in to receive a better seat on their existing flight Seat Swap Notification • If two or more customers are matching candidates, assign seat swap Successful Seat Swap • Customer is automatically notified of a successful seat swap T icket is s u ed C h eck-In D ep a rtu re A rriva l Reduced Improved Agent Customer Handling Cost Experience Booking made Use implicit and explicit customer data to determine optimal re-seating. ©2018 Sabre GLBL Inc. All rights reserved. 12
Imagine if… you could automatically manage ancillary integrity to increase incremental revenue Paid Seat is Reserved • A paid seat is reserved, but payment is not complete Check-in Notification Sent • A Guest is unable to check-in until AirExtra fee is paid Additional Abuse is Detected • To avoid additional inventory abuse, app continuously checks for the application of new waiver rules T icket is s u ed C h eck-In D ep a rtu re A rriva l Reduced Increase Agent Revenue Servicing Booking Cost made Should AirExtra fee be waived be based on customer data or airline rules? ©2018 Sabre GLBL Inc. All rights reserved. 13
Sabre Intelligence Exchange Customer Spotlight Sabre Intelligence Exchange will continue to support engagem ent with our custom ers and drive perform ance for our business. Shane Tackett Vice President, Revenue and Ecommerce Goal Solution • A seam less experience for their • Im plem ented Sabre Intelligence Exchange in elites, where they can either be 2016 autom atically upgraded to the • Partnered with Sabre to develop Elite seat existing first class product, or to upgrade app the new prem ium class product • App was com pleted at a low cost and on- • M anage all the logic of upgrading tim e by leveraging the IX platform elite m em bers with flexible rules around m ultiple flight, value, and profile attributes Results • The m ost flexible and user-friendly elite • Continuously evaluate new upgrade process in North Am erica bookings across the sam e criteria • Added optionality upgrade options based on tier status, date and tim e, and inventory • Im proved retention of prem ium tier custom ers ©2017 Sabre GLBL Inc. All rights reserved. 11
Differentiating the customer experience through seamless upgrades At 3 Days During Booking before Check-in Departure Upgrade to Upgrade to Prioritize Premium Premium Upgrade List or Cabin or Cabin (re-check-in) 5 Days 1 Day before before Departure Departure Increased Improved customer revenue experience Upgrade to Upgrade to Premium Premium or Cabin or Cabin ©2018 Sabre GLBL Inc. All rights reserved. 14
How Intelligence Exchange Solves The Problem? Identify Prioritize Execute Leverage IX Enrich and analyze Business Rule Integrated Cross data to create Engine with actioning Domain Data prioritization of Elite capabilities to Members execute upgrades Clear expectations to Elite members on upgrade availability Incremental Revenue • Customer Experience • IT Cost Savings
POC - Fast time to market 1 Programmer 3 Days 200 Lines of Code
Intelligence Exchange: A growing and thriving community Americas EMEA • Aerolineas Argentinas • Adria Airways • Croatia Airlines Sabre Intelligence • • Aeromar Aeromexico • • Aegean Airlines Aeroflot • • Emirates Ethiopian Airlines APAC Exchange community • Air Canada • Afriqiyah • Etihad • Air Niugini Air Tahiti Nui 60+ airlines • Alaska Airlines • Air Berlin • Etihad Regional • • American Airlines • Air Serbia • Gulf Air • Angkor Air • Aserca • Air Seychelles • Icelandair • Bangkok Airways • Azul Linhas Aereas • Alitalia • Jet Airways • Cathay Pacific Brasileiras • Atlantic Airways • JetKonnect • Dragon Air • Bahamasair Faroe Islands • Kuwait Airways • PAL Express • Canadian North • Austrian Airlines • Norwegian Air • Philippine Airlines • Cayman Airways • Avior Shuttle • Vietnam Airlines • COPA • Belavia • Oman Air • Virgin Australia • Frontier • British Airways • Pakistan • Hawaiian Airlines • Comair/Kulula International • JetBlue • Royal Jordanian • LATAM Chile • Saudi Gulf • Ravn Alaska • Virgin Atlantic • SBA Santa Barbara Airlines Airways • Southwest Airlines • Sun Country • Virgin America • Volaris Regular interactions, • WestJet conferences and user workshops around the world ©2018 Sabre GLBL Inc. All rights reserved. 15
The power of the industry-only Intelligence Exchange platform 25 60 60 In production at more than Over micro apps in production of global % bookings airlines 5 Integration with reservation systems Over 8 data domains 16 ©2018 Sabre GLBL Inc. All rights reserved.
Q&A ©2018 Sabre GLBL Inc. All rights reserved. ©2017 17
©2018 Sabre GLBL Inc. All rights reserved. 18
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