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FEBRUARY 2012POINT OF VIEW
Aviation IndustryNavigating the Clouds
© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved. 2
Cloud Computing in Aviation IndustryInternet continues to revolutionize the operations of aviation industry, generating tremendous value in terms of higher revenues, reduced operational costs and customer-centric, globally-distributed ticketing processes. However aviation industry is facing some major challenges in the recent times like rise of low-cost carriers, rising fuel prices putting pressure on margins and increased competition due to easy accessibility of comparative pricing. Cloud computing is the technological intervention which may help the aviation industry to meet these challenges. A move to cloud computing has the potential to not only simplify and accelerate business processes but also generate growth with faster product and services innovation, greater flexibility to react to increased demands and improved business intelligence and reduced costs. Let’s see how aviation industry can utilize cloud:
?Real-Time Analytics and Business IntelligenceIn Aviation Industry, planning and operations are seamlessly integrated with various systems such as Operations Control, Reservation and Revenue Management and Crew Management. Constant examination of traffic data with previous load factors as well as demand forecast figures requires real-time analytics. Traffic prediction and simulation of operational discrepancies caused by delays, weather conditions and other unpredictable circumstances need in-depth business intelligence. Cloud technologies can be used to provision much higher capacity as and when needed for real-time analysis in the disruptive events such as volcanic eruptions.
?Higher Customer ExperienceConsistent and reliable performance of customer facing IT systems such as check-in counters goes a long way towards sustaining and improving customer experience. Traditionally, airlines face a major challenge in providing optimum performance over WAN networks due to bandwidth constraints and latency underlying airline IT backbone. Due to its ubiquitous nature, cloud based environment can provide a more near-the end user experience and are not as constrained by bandwidth while handling delays/prolonged operations. A happy customer will always come back.
?Cost Savings with Focus on Core ServicesCloud computing technologies will allow airlines and airports to focus on their core business and avoid large scale investment in next generation IT infrastructure such as data centers. Many of the world’s major airlines receive reservations, inventory, departure control and other software services from trusted third party providers. The main attraction of cloud shared infrastructure is the lower per unit costs, economies of scale and the simpler operations management. Cloud based reservation platforms offered on SaaS such as SITA are already becoming increasingly popular.
Cloud Computing in Aviation Industry - Powered by Clouds
?SecurityFor Aviation Industry, processing customer data and keeping data secure is critical from a competitive standpoint. Cloud is getting increasingly mature and secure to handle critical data with Tier 3 data centers coupled with regulations and frameworks such as ISO-27002, COBIT and Sarbanes-Oxley which the airline industry can rely upon. Incident investigation can also be easier leading to faster recovery and response times. Systems are automatically patched and updated by expert software specialists on payroll of cloud provider. They also ensure latest antivirus updates and actively monitor intrusions with world class intrusion detection system which an airline might not be able to afford. Cloud providers bring economies of scale and cost of these security systems is distributed across all consumers making it more affordable to the airline industry.
Aviation Industry is at its inflection point; and cloud computing with its unique set of benefits can help in reducing cost, improving cash flow and increasing effectiveness. In addition to the above benefits there are various other areas within the airline operations that can benefit from adopting cloud (as you can see below). A cloud on the process block shows where we forecast higher affinity to cloud platforms.
© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved. 3
Cloud Computing in Aviation Industry - Powered by Clouds
Operations Management
Airlines Management Functions
Finance & Accounting
Crew Management
Business Management
Routes Planning and Market Assessment
Strategic Pricing
Distribution Strategy
Strategic Airline Functions
Interface with External Agencies Planning and Operations
Reporting
Invoicing and Revenue
Management
Communications / Transactions
Functions withaffinity to cloudLegend
Strategic Business Unit Management
Capacity Management
Branding and Communication
Safety & Security Processes
Inventory Management
Ticket Reservation & Distribution
Customer Relationships
Loyalty Clubs
Promotionsand offers
Collaboration with Suppliers
CargoManagement
Check in procedures
Crew Scheduling
Baggagehandling
Whether, fuelreports
Incident Management
Maintenance Management
Route Scheduling& Flight Dispatch
Airline Functions
In order to effectively leverage the cloud computing technology in the organization, the CIO of an airline has to ensure that a proper assessment of the organization’s IT landscape is made. Adopting cloud has an impact not only on your application landscape but also on IT governance and related areas. It is recommended that an organization should create cloud strategy in line with their business strategy for systematically leveraging cloud computing capabilities.
Rashi Gupta is a lead consultant with HCL Technologies’ Business and IT Transformation Services practice and has been instrumental in developing HCL’s cloud migration framework. In last 7 years of her experience she has worked on transformation initiatives for Fortune 500 clients spanning engagements around Business and IT Strategy, Cloud strategy and value discovery. She can be reached at
Rupak Rathore is a principal consultant with HCL Technologies’ Business and IT Transformation Services practice and is key innovator behind CRI and associated frameworks. Over last 15 years, he has helped many customers use technology to deliver superior value to businesses. He can be reached at
Business and IT Transformation Services (BITS) arm of HCL aims to increase value of IT while reducing cost and mitigating risks associated with such transformation. BITS provides consulting services across the globe and has many Global 1000 companies as its customers.
HCL's cloud consulting services help customers evaluate cloud as part of their overall IT service delivery strategy, recommend which enterprise applications can be moved to the cloud, target operating model, benefits/risks, people, process and technology for using Cloud. The service includes creation of enterprise cloud strategy, cloud governance, readiness and migration assessments for adoption of cloud platforms.
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© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved. 4
Cloud Computing in Aviation Industry - Powered by Clouds
HCL Technologies is a leading global IT services company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on ‘transformational outsourcing’, underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HCL leverages its extensive global offshore infrastructure and network of offices in 26 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare. HCL takes pride in its philosophy of ‘Employee First, Customer Second’ which empowers our 83,076 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, has reported consolidated revenues of US$ 3.9 billion (18,334 crores), as on 31 December 2011 (on LTM basis). For more information, please visit www.hcltech.com
ABOUT HCLHCL Technologies
HCL is a $6 billion leading global technology and IT enterprise comprising two companies listed in India - HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India's original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 90,000 professionals of diverse nationalities, who operate from 31 countries including over 500 points of presence in India. HCL has partnerships with several leading Global 1000 firms, including leading IT and Technology firms. For more information, please visit www.hcl.com
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© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
