IoT for airlines: Taking off into a sky full of information
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1 IoT for airlines: Taking off into a sky full of information The Dbriefs Travel, Hospitality, & Leisure series Candice Irvin, Managing Director, Deloitte Consulting LLP Joe Mariani, Manager, Deloitte Services LP Robert Schmid, Managing Director, Deloitte Consulting LLP October 4, 2017
2 au da cious* /ôˈdāshəs/ adjective 1. extremely bold or daring; brave; fearless: an audacious explorer 2. extremely original; without restriction to prior ideas; highly inventive: an audacious vision of the city s bright future * dictionary.com 2 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
3 What is IoT? Physical + Digital as one 3 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
4 IoT will help transform your operations & customers Because IoT is all about information, it can help to support any business need that an airline may have. Operations Transformation Customer Experience Transformation SAFER OPERATIONS Predictive maintenance Reduced risk and work accidents ASSET OPTIMIZATION Enhanced asset performance Reduced unplanned downtime SPEED & CONVENIENCE Reduced time Convenience of payment Ease of navigation PERSONALIZED SERVICES Tailored products and services Meaningful recommendations SMARTER WORKFORCE Real-time information and issue resolution Remote training and guidance capabilities UNIQUE EXPERIENCES Surprise and delight the customer Experience aligned with customer passions 4 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
5 Poll 1: How connected is your life? Which connected product has helped you to think and act differently? Fitness wearables have changed how I exercise Intelligent virtual personal assistants have changed how I interact with my devices Smart thermostats have reduced my monthly heating bill Tracking my luggage with Bluetooth-enabled tags None of these All of these Don t know 5 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
6 THINK START SCALE Big Small Fast 6 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
7 Industry change is already here 7 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
8 Change is constant 8 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
9 It s never too late to start looking forward 9 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
10 IoT is the future 1/3 8.4B 45% $3T 65B One-third of enterprises report using IoT, with another third planning to do so. In 2017, 8.5 billion new things are expected to get connected to network infrastructure each day, up 31 percent from 2016 By 2019, 45% of IoT-created data will likely be stored, processed, analyzed, and acted upon close to, or at the edge of, the network Hardware spending on networked endpoints is projected to reach $3 trillion in Gartner forecasts total IOT Consulting Service spending across all verticals to reach $65B in Forrester - Predictions 2016: IoT's Impact Inside Companies November 16, 2015 Gartner - Forecast: Internet of Things Endpoints and Associated Services, Worldwide, 2016, January IDC - IDC FutureScape: Worldwide Internet of Things 2016 Predictions Gartner Forecast: Internet of Things Endpoints and Associated Services, Worldwide, Gartner Forecast: Internet of Things Endpoints and Associated Services, Worldwide, Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
11 Poll 2: IoT and airports Which of these airport services involve IoT? Ride sharing Air traffic control Baggage handling None of these are IoT All of these are IoT Don t know 11 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
12 Customer IoT may present an opportunity to shift business tactics 12 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
13 There are a number of entry points to help engage with customers PASSENGER EXPERIENCE LIFECYCLE Perceptions of the Customer Experience Helps improve loyalty Multiple sales channels Plan Found a great deal Long lines at check-in Book Offered an upgrade Missed my plane Friendly inflight service Airline quickly resolved issue Earned extra loyalty program points Airport In-flight Destination Service Loyalty Can destroy value Add-on fees for baggage Delayed connection flight Lost baggage upon arrival Several failed attempts to get customer support 13 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
14 Disruptive technologies can transform the Customer Experience Baggage Check-In Customer Journey Impact Lounge Security Gate Area Boarding Single token passenger ID via biometrics allow passengers to Check-In In-Flight navigate the airport without a boarding pass and airlines to store individual preferences Book Transit Plan Destination 14 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
15 Disruptive technologies can transform the Customer Experience Baggage Check-In Security Customer Journey Impact Lounge Gate Area Boarding Baggage technology enhances the luggage tracking experience, allowing Check-In In-Flight customers to view the location of their bag on their airline app Book Transit Plan Destination 15 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
16 Disruptive technologies can transform the Customer Experience Baggage Check-In Security Customer Journey Impact Lounge Gate Area Boarding Beacon, WiFi tracking, and GPS capabilities enable an integrated Check-In In-Flight airport experience, including airport maps, navigation assistance, and redesign placement of advertisements and concessions designed to better fit Book Transit movement patterns Plan Destination 16 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
17 Poll 3: IoT and your personal experience Where do you think IoT can have the most impact to improve your travel experience? Tracking delayed or cancelled flights Shortening security lines Locating shops and restaurants in the terminal Tracking lost or delayed baggage Don t know 17 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
18 Enterprise IoT is here, now 18 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
19 Aviation operations are often significant source of untapped value Helps improve loyalty Perceptions of the Customer Experience Gate & Ramping Services Faster Gate Turns Mishandled baggage Board PAX & Cargo Flight plan & Taxi Missed connections Collaborative routing Departure Weather & traffic avoidance In-Flight Arrival Predictive maintenance More accurate schedule planning Park & Maintenance Can destroy value Weather and traffic delays Gate availability Maintenance delays 19 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
20 Digital Industrial Transformation Disruptive technologies can transform Airline Operations Logistics Inventory Tracking Asset Intelligence Remote Monitoring Now: Data collected via sensors enables airline operators to monitor fleet conditions and proactively Fleet Management Intelligent Products schedule maintenance Next Step: Other sensors can gauge when inventory levels for specific parts are low and automatically reorder specific parts before they run out Smart Workforce Energy Management 20 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
21 Digital Industrial Transformation Disruptive technologies can transform Airline Operations Logistics Inventory Tracking Asset Intelligence Remote Monitoring On-site engineers equipped with smart glasses are able to beam video back to overseeing technicians in Fleet Management Intelligent Products control rooms for guidance Smart Workforce Energy Management 21 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
22 Digital Industrial Transformation Disruptive technologies can transform Airline Operations Logistics Inventory Tracking Asset Intelligence Remote Monitoring Now: Sensors on equipment enable for tracking applications that offer complete visibility into the location of Fleet Management Intelligent Products ground service equipment Next Step: Connected machines and remote monitoring capabilities enable autonomous vehicles to deliver aircraft parts, handle luggage and other activates Smart Workforce Energy Management 22 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
23 Poll 4: Where would you put your money? If you had a million dollars to spend on IoT, how would you allocate it? All to passenger experience All to internal operations & efficiency Split evenly across the two Split, but most to passenger experience Split, but most to operations & efficiency Don t know 23 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
24 and IoT can help clean the planet Intelligent products and realtime dashboards report on smart trade-off decisions and offer transparency to customers regarding the airlines environmental impact 24 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
25 How do you make an IoT idea an IoT reality? 25 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
26 THINK START SCALE Big Small Fast 26 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
27 Starting small checklist Key steps for consideration: Don t Go In Alone Talent Refactor with Care Bring it Home Develop an ecosystem of partners for support and to share experiences with Develop a multi-dimensional team with knowledge and experience that spans sensors, networks, security, analytics, and standards When retrofitting or enhancing brownfields, confirm if IoT components can scale and support your latest pilots and applications Be ready and open for unexpected value opportunities; stakeholders across the business should be invited to share findings and glory 27 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
28 Creating coopetition Where can you look to develop your IoT ecosystem? Non-Airport Specific Airport Specific Revenue Focused Airlines: o Baggage handling o Passenger operations o Flight operations Aircraft Maintenance Fuel, catering, and other services OEMs & Manufacturers Retail & Entertainment Tenants Commercial Tenants (cargo, office space, hotels) Off-Airport Transportation o Taxis o Public Transit o TNCs and Commercial Shuttles/Buses o 3 rd Party Travel Information Vendors to Airport o HVAC & Environment o Facilities Management o Parking, etc Mission Focused TSA Security Screening Police & Medical Services Airport Ground Staff: o Operations o Customer Service o Communications o IT & Contracting FAA & ATC Municipalities Regional Economic Development Groups and Chambers of Commerce Passengers & Customers 28 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
29 THINK START SCALE Big Small Fast 29 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
30 Key steps to scaling fast Creating new rules to support enablement, data collection and distribution should involve: Plan for huge data, but realize not all aspects of business must be IoTenabled Which business decisions are the priority? Are technology, talent, and processes ready to scale? Plan to revise security and privacy rules Additional inputs to IT and IoT ecosystems, call for new rules Privacy, Security, Data-flow Putting intelligent nodes and derived insights to work This is the final, and typically the most important, part of the IoT puzzle 30 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
31 Poll 5: What is the most effective source of new IoT information? Most valuable source of new information Air traffic control Security or customs authorities Airport Operator Other airlines Ground transportation providers Other Don t know 31 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
32 Cooperating means security and privacy Protecting security and privacy of personal and IP data should start at the beginning with Privacy by Design. Security by Design Principles Proactive and preventative, not reactive and remedial Risk assessment Design related risks must be identified, tracked, and mitigated throughout the product development lifecycle Safety Design must comply with safety requirements and consider potential safety implications Secure by default Security embedded into design Positive-sum, not zero-sum End-to-end security Vulnerability management Design must be continuously monitored for potential vulnerabilities at an early stage Typical components of an effective secure product development lifecycle Handling Intellectual Property Design must maintain confidentiality of sensitive information Visibility and transparency Respect for the user Business strategy Design must align with the business strategies and market objectives Product innovation Design must not compromise the creativity of the development team 32 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
33 Questions to leave you with THINK START SCALE Big Small Fast What is one big idea in my company? When can I start to pilot IoT? Whom do I partner with to be able to scale, grow and win in IoT? 33 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
34 Q&A 34 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
35 Join us November 9 at 11 a.m. ET as our Consumer Products series presents: Click and connect: Effective marketing in a digitalfirst world Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
36 Eligible viewers may now download CPE certificates. Click the CPE icon in the dock at the bottom of your screen. CPE 36 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
37 Contact information Candice Irvin Managing Director Deloitte Consulting LLP Connect with me on LinkedIn Joe Mariani Manager Deloitte Services LP Connect with me on LinkedIn Robert Schmid Managing Director Deloitte Consulting LLP Connect with me on LinkedIn 37 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
38 This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation. 38 Copyright 2017 Deloitte Development LLC. All rights reserved. IoT for airlines: Taking off into a sky full of information
39 About Deloitte As used in this document, Deloitte means Deloitte Consulting LLP and Deloitte Services LP, which are separate subsidiaries of Deloitte LLP. Please see for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright 2017 Deloitte Development LLC. All rights reserved. 36 USC
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