CONNECTED AIRPORTS THE INTERNET OF THINGS IS TAKING OFF

Transcription

1 CONNECTED AIRPORTS THE INTERNET OF THINGS IS TAKING OFF Why it is time for airports to invest in digital technologies to create smarter and efficient airports PAGE 1

2 Table of contents Abstract Introduction Preparing for future-ready airports How do I make an airport a seamless and delightful experience for a passenger? How do I reduce operational and capital expenditure per passenger? How do I create opportunities for new revenue streams? Digital solutions to transform airport experience Realising benefits of IoT take-off in airports Enhanced passenger experience Improved operational excellence Non-aeronautical revenues Looking forward PAGE 2

3 Abstract 9.63 billion people are projected to travel by air in Thanks to exponential growth in passenger footfalls and air traffic, airports are busier than ever before. And this shift requires airports to become more responsive and efficient to create a seamless airport experience. To remove existing gaps, build an intelligent process, and improve passenger experience, airports are heavily investing in digital technologies, and Internet of Things (IoT) is set to transform the airport experience. By connecting particularly physical assets, devices, people, and applications, IoT is playing a vital role in driving operational efficiency, improving passenger experience, and creating new revenue sources for airports. This white paper examines challenges, solutions, and how airports can leverage IoT enabled solutions to digitally transform their business. 1 Global 2017 PAGE 3

4 Executive summary Airports looking to build a future ready ecosystem must address three major areas- transforming passenger experience, delivering operational efficiency, and improving financial success. Shifts in global economy, along with increased traffic, are opening opportunities for private funding to make technological improvements in airports especially in Europe. According to a survey, 93% of the airports in Europe would deploy interactive navigation, wayfinding, context and location aware applications within the next five years. 96% plan to invest in cybersecurity initiatives. 45% of airports are set to invest in Artificial Intelligence (AI) based customer service 2. The entire passenger journey from departure to destination is run by digital services such as self-check-in, self-luggage drops, and self-board with just fingerprint and face scan, baggage tracing using RFID, and more. Smart airports that employ the latest IoT technology can radically improve passenger experience while saving money over time, providing a welcoming environment for weary travelers, and improving customer loyalty. This digital transformation is not limited just to passenger journey but also includes airside and landside operations such as aircraft maintenance, runway monitoring, building management, gate management with the help of smart sensors, resulting in reduction of OPEX and CAPEX. IoT has therefore emerged as a solution that brings together airports, airlines, service providers, retailers, and passengers in an environment where systems and processes are interconnected and digitally aware. By leveraging big data analytics and artificial intelligence, airports are set to be smarter, more efficient, and a destination in themselves. 2 Sita Aero: Airport IT survey 2017 PAGE 4

5 Adoption of digital initiatives at airports Digital spend across airport % 30% 4% 38% % Key pillar in a growth strategy 4% Interesting concept, not in the focus 90% Operations 50% Infrastructure 68% Passenger Journey 44% Adminstration 30% Umbrella term grouping all digital projects, not a separate program Source- Global % Most important program at the airport 58% Safety and Security 56% Baggage 30% Financial and Budget 10% Other PAGE 5

6 Preparing for future-ready airports Airport authorities looking to build connected airports must start thinking of the following key business imperatives: ensure high level of passenger experience, operational efficiency, and create opportunities for new revenue streams. How do I make an airport a seamless and delightful experience for a passenger? Long queues, crowded waiting lounges, congested security checkpoints for passengers, air travel is often a stressful experience (exhibit A). It is not a surprise that waiting time is the biggest factor influencing passenger satisfaction ratings. To create a seamless airport experience, leading airports are turning to mobile apps, social media, and intelligent technologies including geo-location services to make the passenger experience better. Location-based technologies such as Bluetooth beacons and WiFi can interact with kiosks, digital signage, RFID tags, and the airport mobile app, to successfully guide travelers to their destinations within the airport and provide location specific travel notifications. London s Gatwick Airport, the second busiest airport in the U.K. already has about 2,000 indoor, battery-powered beacons that use augmented reality to guide travelers to specific locations via arrows on their smartphones. According to a DMKA report, increasing the overall passengers satisfaction by 0.1 on a 5-point scale will increase the nonaeronautical revenue per enplaned passenger by more than $0.80. That is a correlation that no airport can miss. In a quest to create a better airport experience, airports are adopting a gamut of digital technologies to decrease waiting times, enhance service quality, and passenger satisfaction. PAGE 6

7 Stress Max Arrival Check-in Security Controls Boarding Navigating the terminal Waiting Time Boarding Secured Stress Risk of missing the flight Area of complete uncertainty Relief / Relaxation In-flight delay Waiting time uncertainty Stress Low 10 0 Time Exhibit A: Anxious travelers Source- Aero Porto de Paris PAGE 7

8 How do I reduce operational and capital expenditure per passenger? A huge part of optimizing airport operations is to be able to monitor each operation in real-time and raise a flag in case of potential bottlenecks. The manual process prevalent at airports is sometimes unresponsive and time-consuming. With increasing passenger traffic, employing more luggage handlers, terminal ops, passenger service, ground and apron staff is quite detrimental to the airport s objective of reducing operations expenses per passenger (Exhibit B). Airport managements are under tremendous pressure to have a real-time view of asset performance, its regular maintenance updates, consolidated visual view of the overall health of the airport and its facilities, and efficiently manage the staff to create a seamless environment for passengers as well as airport staff. No. of passengers Before IoT After IoT Deploying digital technologies such as IoT, analytics, and AI plays a pivotal role in addressing these challenges. This has led airports and their partners to re-examine their operating model and utilize their IT assets as the primary lever for driving operational efficiencies, and improving the overall passenger experience. Cost per passenger Exhibit B: Implications of increasing passenger traffic PAGE 8

9 How do I create opportunities for new revenue streams? Optimizing non-aviation businesses, within an airport, has the potential to give an airport an edge over its competitors (exhibit C). There is also the anticipation that ongoing investments in airport retail, leisure, and dining facilities will generate substantial non-aeronautical revenues for airports and their serving airlines, transforming landside and airside space into a hub of diverse activities. By taking advantage of built-in smartphone technologies, an airport mobile app can do a lot to improve the passenger experience at your airport, contributing to non-aeronautical revenue. Imagine an airport where the retail experience is so impressive that a passenger uses an in-flight app to make purchases in the air and picks them up upon arrival. Navigation services offer another way to streamline the passenger experience, saves time, and compels passengers to find open parking, discover a great restaurant, or locate an electronics store. These concepts are all just around the corner. However, collaboration between airports and airlines to forge nonaeronautical, revenue-sharing agreements will be essential for this strategy to succeed. DID YOU KNOW? Over 80% of airports will invest in business intelligence (BI) for revenue optimization and management by 2019? Source- SITA Survey 2017 PAGE 9

10 A Increase non-aeronautical revenue Increase profitablity Generate more benefits New infrastructure 07 4A 04 More consumers More flights Cheaper airport fees If infrastructure allows for more flights and passengers More passengers Cheaper flight tickets Exhibit C: The virtuous loop of non-aerospace revenue PAGE10

11 Digital solutions to transform airport experience Addressing the challenges of an airport to build a better airport experience is not only about incorporating new technology; it is about business transformation in a digital world. It is both the implementation of new technologies as well as the integration of existing technologies, processes, and services to deliver a better experience to all stakeholders. IoT heralds a new future for digitalization by enabling a suite of next generation digital technologies (Exhibit D). With the decreasing cost and increasing accuracy of sensors, almost any process can be digitized. Data can be sent to a cloud where it can be processed using other digital technologies such as big data analytics. Through edge analytics and machine learning, the data generated by sensors and machine vision can help in predictive maintenance of any machine. Augmented reality coupled with smart sensors integrated into the machines can help in service and field support solutions. Simulation based on data fetched by IoT systems can enable better passenger flow management. In short, digital technology will play a crucial role in creating a hassle-free passenger experience and enhancing overall operations at airports. PAGE11

12 IoT Platforms PaaS/SaaS Platform MS Azure IoT L&T TS Digital Airport Platform Service IQ Solution i-bems Solution Sensors/Chips Self-Powering Customizable Sensors Selection Analysis Interface Cloud Services Cloud Enablement Cloud Platforms Native Cloud App API layer Security Assessment Migration and Transformation Big Data Analytics Data Mining Descriptive Analytics Data Visualization and reporting Machine Learning / Cognitive Algorithms and Modeling Condition-Based Maintenance Process Digital Twin Robotics Design, training, and development for material handling Edge Gateway End To End Data Processing Solutions High Speed Design - Real-Time Data Inbuilt Analytics Algorithms Simulation Passenger and Operations Flow Simulation AR/VR Gaming, Maintenance Management Connectivity Wired and wireless industrial and networking protocols Ready frameworks /stacks for WiFi mesh, ZigBee, Cellular, LoRAWAN, Bluetooth etc Application Software Ready-to-use applications for real-time data ingestion, aggregation, integration Device slide APIs, standard APIs, custom APIs for easy access DIGITAL TECHNOLOGIES User Interfaces Mobile Android, IOS apps Multi-Screening -Public display, Mobile, Web, TV, Dashboards etc PLM Consulting and Implementation EAD Services Security Cloud Level Application Level Device Level Augmented Reality Service and Field Support Solutions Context-aware Help for Service Terms Interactive User Guides Digital Marketing Solutions Enterprise Connectivity SAP ORACLE Database Connectors Exhibit D: Digital technologies and solutions PAGE12

13 Airports are increasingly adopting various digital platforms to measure, manage and improve performance of airport on resource consumption, carbon emissions and quality of end-to-end passenger journey. IoT enabled digital airport platform is based on a modular design that allows rapid customization and seamless connections to IoT sensor nodes across the airport. Sensors embedded throughout the airport environment collect real-time data from surrounding environments and enable various digital technologies and solutions (Exhibit E). Coupled with best-in-class big data and analytics tools, the platform s built-in rules engine supports real-time stream processing to generate business insights, which are accessible through a centralized dashboard. These insights are then leveraged to increase efficiency, facilitate cost-effectiveness, and enhance overall passenger experience by ensuring convenience at every checkpoint. PAGE13

14 Digital Airport Platform CONTROL CENTER, MOBILE AND DISPLAY APPLICATIONS Waste Management Occupancy Management Pump Management Apps Apps Cloud Infra Analytics and Predictive Solutions Big Data Analytics AI/ Machine Learning Orchestration Services RAPM-Asset Tracking and Performance Management IBEMS-Intelligent Building and Facilities Mgmt Customer Engagement PLATFORM SERVICES Collaborative Decision making-air/ground Ops Flow monitoring & management Data Lake Management AR/VR Engines Multi-Screen Applications Asset Management Digital Twins Enterprise Connectivity Predictive Maintenance Security/Video Message Bus Process Control Message Bus and REST APIs Existing Airport Systems Azure IoT Platform Gateways Connectivity Sensors Exisiting Airport Systems Land Side+Air Side+Surrounding Areas Exhibit E: Digital airport platform based on IoT that can be integrated with existing airport systems PAGE14

15 Realising benefits of IoT take-off in airports Enhanced passenger experience The more personalized and wait-free treatment the passengers get, the better their overall experience will be. IoT solutions enables this in multiple ways such as determining passenger locations and then providing location-sensitive information such as shopping deals, dining offers, auxiliary services (gyms, lockers), as well as facilities like toilets and vending machines. A unified information system can also keep passengers updated via an app on flight status and weather and traffic conditions outside the airport. All stakeholders, including the airline and passenger, are interconnected via a collaborative communication platform, enabling better staff cooperation and eliminating silos at every level of the airport ecosystem. Automation of checkin desks, baggage collection, and security screening processes by employing technologies such as biometric, facial, and object detection can help airports create a highly personalized experience for passengers. There is also a huge focus on identity token management. With advent of biometric and facial recognition technologies, there would also be a greater amount of emphasis on managing digital identity of passengers in a secured way- creating a new eco-system of airport cyber security. Airport security and operations too stand to gain from IoT. Video analytics can tremendously improve security measures through crowd detection, queue management, and the identification of restricted, unattended objects. Automated solutions, delivered via deep learning and artificial intelligence, can efficiently analyze the vast data collected and generate quick solutions to address impending problems. Occupancy sensors can be used to manage crowds avoiding the ill-effects of disruptions at airports. PAGE15

16 Improved operational excellence Digital opportunities optimize operations and create an agile, connected infrastructure in every aspect of an airport s functioning from baggage handling to waste management. Tracking vehicles, assets, people, and baggage IoT enabled airport tracking solutions such as LTTS RAPM (Remote Asset Performance Management) creates a connected network of vehicles, equipment, tools, and staff, improving aircraft maintenance and turnaround time. In addition, geofencing technology can track, monitor, or contact ground handling vehicles. IoT based solutions allow an airport to track staff realtime, so that resources available to support ground operations can be immediately identified and located. Even taxi and waiting times of aircrafts can be tracked and analyzed the data from this exercise can be used to report Key Performance Indicators to airline companies. The smooth functioning of an airport s facilities is essential to optimizing operations. IoT, combined with machine learning and edge analytics, helps identify first-stage failure patterns in conveyor belts and self-service kiosks. This predictive maintenance allows operators to fix problems even before they occur. Moreover, thanks to Radio Frequency Identification (RFID), lost baggage too will be a thing of the past. RFID tags, coupled with a management reporting system, improves baggage performance, resulting in fewer losses, and reduced journey disruptions. PAGE16

17 Vendor management for quicker processing A vendor management system automates the processes linked to vendor procurement for an airport. Leveraging artificial intelligence and machine learning, the system suggests improvements, such as a better vendor that matches you and airport s preferred vendor profile, or a combination of new workflows that minimize contract completion cycle times. Virtual Reality-based training Web-based virtual reality training for ground staff combines theoretical knowledge and practical training in a realistically simulated environment, causing no disturbance to active operations. A learning management system will include live tracking of progress, testing, and multi-stream delivery of training content in the bandwidth appropriate to the device being used. Energy Efficiency Carbon emission reduction is a key business consideration for airports. LTTS Integrated Building Energy Management System (ibems TM ) has the potential to turn any airport into an eco-friendly environment that focuses on energy savings. Heating, Ventilation, and Air Conditioning (HVAC) handled via singular air handling unit and smart meters with built-in analytics detect wasteful energy usage, and aid in optimization of energy consumption based on weather forecasts. What s more, an accurate and permanent leak detection system ensures optimized and uninterrupted supply of water while IoT enabled sensors monitor water quality and consumption in real-time. In addition, algorithms in energyefficient chillers analyze data from all sensors installed at strategic points across the airport to determine the optimum performance needed without compromising on thermal comfort. Lighting systems can also be optimized with the help of ambient sensors and trained to perfection using self-learning algorithms. PAGE17

18 Non-aeronautical revenues The constant drive to increase non-aeronautical revenue opportunities has been a priority for airports and IoT plays a key role in boosting revenue streams at airports. An integrated airport backed by IoT enabled digital solutions cuts down the time passengers spend at check-in and security allowing them to fully utilize the airport s hospitality and retail services. An informed customer is more likely to spend time in restaurants, bars, shops, and entertainment hubs than in queues looking for flight information. Airports have the potential to earn significant revenue from parking and vehicle-related services. Through IoT enabled solutions, car park status can be monitored realtime, using video analytics to identify license plate numbers and detect vehicles at entry and exit. The entire process identifying slot availability, navigation within the parking facility, parking time optimization, and reporting of all cars parked with their license numbers is optimized for the convenience of both passengers and airport staff. Instead of long patrols around parking bays, officers shall receive alerts on errant practices such as illegal parking so that they can respond to such incidents better. Smart airports can boost these revenue opportunities by offering innovative services that help upsell and cross-sell to the passenger, providing personalized services that increase revenues and overall customer satisfaction. PAGE18

19 Looking forward Airports can be future-ready by leveraging a wide-range digital solutions that have the potential to radically transform three major business imperatives - enhancing passenger satisfaction, delivering operational excellence and ensuring commercial and financial success. L&T Technology Services along with it s partner will continue to build IoT solutions to help airports optimize end-to-end operations and a partnership with us could enable you to build your future-ready airport. PAGE19