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Copyright © 2009 Aviation Wikinomics, Inc. Confidential Proprietary Trade Secrets & Know How PRESENTED BY: MICHAEL WM. DENIS AVIATION WIKINOMICS AVIATION WIKINOMICS AIRLINE, AEROSPACE & DEFENSE INNOVATORS Autonomic Lifecycle Sustainment Comes of Age PRESENTED TO: AIRLINE & AEROSPACE MRO & OPERATIONS IT CONFERENCE 23 - 24 March 2010, Hilton Miami Downtown Hotel - Miami, USA

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Page 1: Autonomics Sustainment

Copyright © 2009 Aviation Wikinomics, Inc. Confidential Proprietary Trade Secrets & Know How

PRESENTED BY: MICHAEL WM. DENIS

AVIATION WIKINOMICSAVIATION WIKINOMICSAIRLINE, AEROSPACE & DEFENSE INNOVATORS

Autonomic Lifecycle Sustainment Comes of Age

PRESENTED TO: AIRLINE & AEROSPACE MRO & OPERATIONS IT CONFERENCE

23 - 24 March 2010, Hilton Miami Downtown Hotel - Miami, USA

Page 2: Autonomics Sustainment

March 29, 2010 1Thales and BWS ProprietaryCONFIDENTIAL

1 Impact Statement

Autonomic capabilities are changing the

landscape of aircraft lifecycle sustainment

to the same degree that the gas turbine

engine changed commercial aviation and

FedEx changed the logistics industry!

Page 3: Autonomics Sustainment

March 29, 2010 2Thales and BWS ProprietaryCONFIDENTIAL

2 History of Autonomics

�1898 – Medical term defining a subset of the Central Nervous System

�Autonomic: au·to·nom·ic : \ˌo-təəəə-ˈnä-mik\ : adjective

– 1 : acting or occurring involuntarily <autonomic reflexes>

– 2 : relating to, affecting, or controlled by the autonomic nervous system or its effects or activity <autonomic drugs>

– au·to·nom·i·cal·ly : o-tə-ˈnä-mi-k(ə-)lē\ : adverb

�1978 – Office of Naval Research funds Boeing & United Airlines to develop new methods of aircraft maintenance planning resulting in Nolan & Heap’s Reliability Centered Maintenance report.

�1991 – IBM defines the term relative to computing and begins to develop there vision for autonomic networks.

�1994 – Office of Naval Research becomes a founding member and sponsor of MIMOSA for the development of an Open Systems Architecture for Condition Based Maintenance (OSA-CBM)

�1997 – Office of Naval Research funds Raytheon to develop of a Generalized Automated Maintenance Environment (GAME) – which results in Boeing IDS / GEAE’s Automated Maintenance Environment (AME) for the F/A-18 E/F Super Hornet.

�2000 – Arthur “Art” K. Cebrowski (VADM/USN ret.) appointed Director, Force Transformation, OSD – begins to define Sense & Respond Logistics strategy, concept of operations (CONOPS) and required capabilities.

Page 4: Autonomics Sustainment

March 29, 2010 3Thales and BWS ProprietaryCONFIDENTIAL

3 History of Autonomics

�2001 – Lockheed Martin Aeronautics proposes the development of an

Autonomic Logistics Information System (ALIS) in support of the multi-

national Joint Strike Fighter program competition – to enable OSD’s Sense

& Respond Logistics CONOPS and strategy.

�2002 – Accenture working with Delta TechOps submits 11 US/EU patents

on the use of autonomic capabilities to enable multi-dimensional

configuration management, predictive maintenance and lifecycle

optimization of complex assets.

�2006 – Boeing CAS proposes the Goldcare program for the B787

Dreamliner and begins development of an Aircraft Health Management

(AHM) solution, Maintenance Execution Management (MEM), Integrated

Materials Management (IMM), Electronic Flight Bag (EFB), and

Electronic Technical Log (ETL / Toolbag).

�2000-2008 – Airbus Airman AHM & AirN@v, Embraer AHeAD, Lockheed

Martin Aeronautics PHM, ATA iSPEC2200, ASD S1000D, ASD SX0001,

ISO 10303 AP 239 STEP, ISO 13374 CBM, …

�2009 – Bombardier proposes a performance based / fixed cost support

business model for the C-Series 110/130 aircraft leveraging a Centralized

Maintenance & Health Management System and global logistics network.

Page 5: Autonomics Sustainment

March 29, 2010 4Thales and BWS ProprietaryCONFIDENTIAL

4

Regulatory Services

Logistics Services

Technology Services

Financing & Leasing

Engineering Services

Total T

echnical S

ervicesMaintenance Services

Defense Operators & Depots

Engine OEM

Airframe OEM

Component OEM

Commercial AircraftFleet Operators

Le

ga

cy I

n USAF/USN

Fle

et

1

Fle

et

2...

UK MoD

Fle

et

1

Fle

et

2

...

CountryX

MilitaryForces...

Other Segments:� BizJet / Corporate� Air Taxi / VLJ� GA: General Aviation

...

Le

ga

cy O

ut

LC

C N

et

Ou

t

3PMP & 3PL

Sourcing, Provisioning, Procurement, Warehousing, Distribution, Transportation, 3PL

Maintenance Planning / Packaging / Scheduling, Regulatory Compliance, Tech Docs, Reliability Engineering

Air

fram

e,

En

gin

e, C

om

po

nen

t &

To

tal T

ou

ch

Serv

ices

Power x Hour Engine Bundling, ACMI Wet Lease, Performance Driven Outcomes

FAA, JAA/EASA, CAA, NTSB

Infrastructure Products / Services, SaaP (On-Premise, EAI, Application Management), System Integration, SaaS (On-Demand)

Aviation MRO: Industry Structure = “Eco-System”

Page 6: Autonomics Sustainment

March 29, 2010 5Thales and BWS ProprietaryCONFIDENTIAL

5

Customer Relationship

Management

Supply Chain Management

Reservations, Airport

Operations, Finance & Human Capital

Shop, Tool & GSE Maintenance

Airframe & Engine

Maintenance

Flight Operations Maintenance

Engineering,

Maintenance Programs & Regulatory

Pricing, Marketing

Res, Sales & GD

Airport

Operations

Flight

Operations

Human Capital

Management

Finance, SEC,

PRA, Accounting

Aviation MRO: Core Business Processes & Interfaces

Page 7: Autonomics Sustainment

March 29, 2010 6Thales and BWS ProprietaryCONFIDENTIAL

6

EASA, FAA, ICAO, ATA, IATA, ASD, AIA

Core Business Processes vs. Industry Structure

Collaboration Capabilities are no longer an option!

Page 8: Autonomics Sustainment

March 29, 2010 7Thales and BWS ProprietaryCONFIDENTIAL

7

Finance & Human Capital

� Key Finance & Accounting capabilities

– Treasury & Working Capital Management

– Accounting (GL, AP, AR)

– Supplier Payments (AP)

– Customer Invoicing & Billing (AR)

– Taxation

– Activity Based Costing

– Securities & Regulatory Reporting

– Finance & Weighted Average Cost of Capital

� Governance, Risk & Compliance Management

� Key Human Capital Management capabilities

– Corporate Structure & Work Center definitions

– Employee Management & Self Service (B2E)

– Payroll Management

– Benefits Management

– Workforce Planning & Staffing

– Recruiting, Training & HC Development

Financeand Human Capital

Management

Engineering, Maintenance &

Material Management

Document & Content

Management

MRO & SCM

� Key Customer Relationship Management

– Sales Force & Contact Management

– RFP / RFQ & Contract Management

– Customer Service & Visibility Integration

� Key Engineering capabilities

– Multi-Dimensional Configuration Management

– MRB & MPD Definition & Management

– AD/SB/EO Management

– Job / Task Card Management

– Equipment, MPD and Task Reliability

� Key Maintenance capabilities

– Production Planning (Content of Work)

– Visit Scheduling / Capacity Scheduling

– Visit work package Sequencing

– Production Control

– Quality Control & Quality Assurance

– Post Visit analysis & Continuous Improvement

� Key Supply Chain capabilities

– Sourcing, Negotiating & Contracting

– Material Management & Purchasing (Logical)

– Inventory Control – Receipt, Warehousing,

Distribution and Logistics (Physical)

– AOG & B2B Web Logistics Exchanges

Document / Content Management� Key Document and Content Management

capabilities

–Contracts, Records and AD/SB/EO Documents

–Technical Manuals (AMM, FIM, IPC, CMM, SRM)

–Job / Task Cards and Logs / eLogs

The three core technical enablers of aviation MRO

ConfigurationManagement

Page 9: Autonomics Sustainment

March 29, 2010 8Thales and BWS ProprietaryCONFIDENTIAL

8

1

Open System Architecture for Condition Based Maintenance (Component View)

Page 10: Autonomics Sustainment

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9

T2 Turbine

Inlet

Temperature

N3Turbine

SpeedV3Turbine

Vibration

Advisory Generation (AG): provides

actionable information required to 1) make

immediate operational changes and 2)

optimize lifecycle reliability, maintainability and

availability of equipment.

Prognostics Assessment (PA): determines

future health states, failure modes and

remaining functional and, or economic life

based on current health state, deterioration

rates and forecasted usage of equipment and

maintenance policies and procedures.

Health Assessment (HA): determines current

health state given functional parameters and

faults of equipment leading to diagnostic

processes, preventative and corrective actions.

State Detection (SD): facilitates the creation

and maintenance of normal baseline “profiles”,

searches for abnormalities whenever new data

are acquired, and determines in which

abnormality zone, if any, the data belongs.

Data Manipulation (DM): performs signal

analysis, computes meaningful descriptors,

and derives virtual sensor readings from the

raw functional measurements.

Data Acquisition (DA): converts an output

from a transducer to a digital parameter

representing a physical quantity and related

information.

2

Open System Architecture for Condition Based Maintenance (System View)

Page 11: Autonomics Sustainment

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LRUs

Applicability of Information

Utility and “Value Density”of Information

3

Organization Perimeters

Component / LRU Systems / Aircraft Fleets

Prognostic

Assessment

Prognostic

Assessment

Advisory

Generation

Advisory

Generation

External

Sources of

Information

External

Sources of

Information

OSA-SOA

Web Service

OSA-SOA

Web Service

Maintenance

Information

System

Maintenance

Information

System

Health

Management

System

Health

Management

System

Health

Assessment

Health

Assessment

Data

Acquisition

Data

Acquisition

SensorsSensors

Data

Manipulation

Data

Manipulation

State

Detection

State

Detection

Information Flows

OSA-EAI

Web Service

OSA-EAI

Web Service

OSA-CBM

Web Service

OSA-CBM

Web Service

Collaboration

Network

Cabin

MIS

MCC

Flight Deck

EFBELB

ACMS

CMS

Sensor(s)

Utility / Value Density of Information

SOC

Open System Architecture for Condition Based Maintenance (Aircraft View)

Page 12: Autonomics Sustainment

March 29, 2010 11Thales and BWS ProprietaryCONFIDENTIAL

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Airframe

OEMs

Airframe

OEMs

Total Care

Fleet

Manager

Total Care

Fleet

Manager

Applicability of Information

Utility and “Value Density”of Information

4

Systems / Aircraft

Airline Fleet External Autonomic Lifecycle Sustainment Providers

Organization Perimeters

Information Flows / Collaboration Hub

Utility / Value Density of Information

Engine

OEMs

Engine

OEMs

Component OEM

Component OEM

3rd Party

MROs

3rd Party

MROs

3rd Party

Logistics

Providers

3rd Party

Logistics

Providers

Regulator FAA / EASA

Regulator FAA / EASA

Component

OEM

Component

OEMComponent OEM

Component OEM

Component

OEM

Component

OEM

Open System Architecture for Condition Based Maintenance (Fleet & Collaborative Eco-System View)

Sub-

Component

OEM

Sub-

Component

OEM Sub-

Component

OEM

Sub-

Component

OEM

Sub-

Component

OEM

Sub-

Component

OEM

Page 13: Autonomics Sustainment

March 29, 2010 12Thales and BWS ProprietaryCONFIDENTIAL

12 The Chokepoint to Eco-System Collaboration is the MIS

Page 14: Autonomics Sustainment

March 29, 2010 13Thales and BWS ProprietaryCONFIDENTIAL

13 MRO IT Architecture will be based on ASD SX0001 and SOA

Maintenance

Information

System

S5000FInternational

Specification for

Service Data

Capture &

Management

using ISO 13374

OSA-CBM,

ACARS, On-Board

Systems & FOQA

S1000DInternational

Specification for

Technical

Publications

(IETP / IETM)

using a

Common Source

Data Base (CSDB)

S2000MInternational

Specification for

Materiel

Management

(SCM) using

EDI / XML

Automated

Processing

S4000MInternational

Specification and

Procedures

Handbook for

RCM / MSG3

Scheduled

Maintenance and

Reliability Analysis

S3000LInternational

Application and

Procedures

Handbook for

Logistics Support

Analysis (LSA)

ISO 10303

AP 239Specification for

Product Life Cycle

Management

(PLCS) & Multi-

Dimensional

Configuration

Management

(MDCM)

ISO 10303International

Specification for

Product Data

Management

(PDM) & Computer

Aided Design,

Engineering &

Manufacturing

(CAD, CAE, CAM)

ERP Finance,

Accounting &

Controlling via

SAS 70 processes

and procedures

compliance

SCORM International

Specification for

Advanced

Distributed

Learning using

the Shareable

Content Object

Reference Model

ERP Human Capital

Management –

Recruiting,

Succession,

On-Boarding,

Talent, Training

and Learning

Management

Flight Operations

SystemsOperations Control

/ Maintenance

Control, Air Traffic

Control, Weight &

Balance and

Dispatch

J2EE Web Service Universal Adapter (ESB / SOA)LDAP & PKI

Security Services

Device, Printer & Wireless

Services

Page 15: Autonomics Sustainment

March 29, 2010 14Thales and BWS ProprietaryCONFIDENTIAL

14

Source: Marc Benioff, CEO, salesforce.com, Tour de Force Atlanta, Apr. 2008, “The Future of Cloud Computing”

Software as a Service / On Demand key differentiators:

Page 16: Autonomics Sustainment

March 29, 2010 15Thales and BWS ProprietaryCONFIDENTIAL

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Source: Marc Benioff, CEO, salesforce.com, Tour de Force Atlanta, Apr. 2008, “The Future of Cloud Computing”

Just as software evolved via Abstraction, Virtualization and Outsourcing…

Page 17: Autonomics Sustainment

March 29, 2010 16Thales and BWS ProprietaryCONFIDENTIAL

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Source: Marc Benioff, CEO, salesforce.com, Tour de Force Atlanta, Apr. 2008, “The Future of Cloud Computing”

… so too are Platforms migrating to the SaaS / On Demand business model …

Page 18: Autonomics Sustainment

March 29, 2010 17Thales and BWS ProprietaryCONFIDENTIAL

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MRO ITMROSCMCateringCRS / GDS

… a business model that originated in the airline industry.

Page 19: Autonomics Sustainment

March 29, 2010 18Thales and BWS ProprietaryCONFIDENTIAL

18

Source: Saugatuck Technology, 2007, “SaaS Beyond the Tipping Point”

The focus of SaaS shifts over time from cost-effective delivery of stand-alone applications (Wave I), to integrated business solutions enabled by web services and ESBs (Wave II), then to human workflow and collaboration based business transformation (Wave III).

Wave III: 2008-2014Workflow-enabled

Business Transformation

SaaS 2.0Evolution of Software-as-a-Service

Wave I: 2001-2006Cost-effective

Software Delivery

Ad

op

tio

n

Low

High

SaaSTipping-Point

2006

Wave II: 2005-2010Integrated

Business Solutions

SaaS 1.0

2007 2008 2009 2010 2011 2012 20132003 2004 2005

Early Adoption• Stand-alone Apps• Multi-tenancy

• Limited Configurability• Focus on TCO / rapid deploy

2014

SaaS 2.0

Ubiquitous Adoption• Optimized Business Ecosystems

• IT-targeted Ecosystems• Inter-enterprise Collaboration• IT Utility / SaaS Infrastructure• Customized, Personalized Workflow• Focus on Business Transformation

Mainstream Adoption• Integrated w/ Business Portfolio

• SaaS Integration Platforms • Business Marketplaces

and SaaS ecosystems• Customization Capability• Focus on Integration

There are three waves of adoption of a Disruptive Value Innovation

Page 20: Autonomics Sustainment

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By 2010, a new SaaS business services provisioning model emerges, combining pure-play SaaS solutions with business services from both next-generation and traditional infrastructure, application hosting, Managed Service Providers and Business Process Outsourcing (BPO).

While many SaaS vendors desire to remain pure-play application solution providers, customers and industry specific trends in addition to Wall-street economic valuation metrics will decide how far into business services SaaS must go to effectively compete with traditional software vendors.

SaaS2.0

SaaS1.0

ASP

BusinessProcess

Outsourcing (BPO)

Infrastructure,Hosting &

ApplicationManagement

New Collaboration Services Models

Pure Play Infrastructure / Communications

SaaS Infrastructure / SIPs

SaaS BPO

SaaS CSP

Source: Saugatuck Technology, 2007, “SaaS Beyond the Tipping Point”

SaaS and BPO are on a collision course …

Page 21: Autonomics Sustainment

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20

Strategic

Value

Tactical

Value

System

Collaboration

Business Processes

Business Applications

Technology Infrastructure

Business Services Provider

Business Process Management

Software

as a Service

Application

Management

Infrastructure Management

Hosting Services

�From 1:1 to 1:N

�From client site to web site

�From SMB to global 1000

�From tactical to strategic

�From commodity to industry specialized�From cost-reducing to profit-enhancing

Operational

Value

Collaboration Services Provider

Systems Integration

Management

Increasing ROIC for an

Industry Collaborative

Shared Service

Increasing Propensity to

Outsource

Commodity Activities

Optimal Single Company

Risk / Return Proposition

On-Premise DeliveryFixed Solutions

Fixed Cost Plus Pricing Transaction Oriented

1:1 Company Standards

1:1 Client-specific Dedicated Delivery

On-Cloud Delivery Configurable Solutions Shared

Utility Pricing

Event / Workflow Oriented1:N Industry-standards 1:N Industry-specific Ubiquitous Delivery

… to create new business models around Eco-System collaboration.

AdvisoryServices

TechnologyServices

BusinessServices

PerformanceServices

Page 22: Autonomics Sustainment

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Structure of Industry & Integration

Nature of Demand & Supply (Services)

Process, Human Capital ConsultingOrg Design, Training, BPR, LEAN/6σσσσ

System EngineeringImplementation, Integration

Engine Maintenance

LeasingEngine, Airframe, ACMI

Engineering ServicesAD/EO, PMA/STC, ECM/DCM/Task Cards

Infrastructure ManagementOn-Premise H/W, LAN, Comms

Application ManagementOn-Premise Apps

AdvisoryServices

TechnologyServices

MaintenanceServices

BusinessServices

KnowledgeServices

PerformanceServices

Increasing Complexity to ExecuteIncreasing Barriers to Competitor Entry and Customer Exit

Increasing Margins of Return

Incre

asin

g B

read

th o

r D

ep

th o

f S

erv

ices D

em

an

ded

Decre

asin

g S

ou

rces o

f S

up

ply

Pro

vid

ed

Incre

asin

g R

isks t

o M

arg

ins

Technology ConsultingApplication & Infrastructure

Strategy ConsultingFinancial, Marketing, M&A

Business Process OutsourcingFI, HR/Payroll, Call Ctr, CRM

Utility ComputingHosting, Grid H/W, WAN, Comms

Airframe MaintenanceHangar / Heavy Check / RON

Component MaintenanceAvionics, LRUs, Subs, Fab

Line Maintenance

Engine Power X HourBundled Acq + Eng + Mtc + Log

Airframe Performance MgtPBL, PBC, Goldcare, TTS+

Fleet ManagementReg, Mx Program & Pln, MOC

3rd Party LogisticsVMI, Warehousing, Dist / Trans

Knowledge ManagementCAMP + CASS + Reliability = BIIn

creasing Margins

Aviation MRO Industry Structure vs. Nature of Services

Page 23: Autonomics Sustainment

March 29, 2010 22Thales and BWS ProprietaryCONFIDENTIAL

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EASA, FAA, ICAO, ATA, IATA, ASD, AIA

Core Business Processes vs. Industry Structure Revisited

Collaboration Capabilities are no longer an option!

Page 24: Autonomics Sustainment

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Document & Content

Management

Finance & Accounting

and Human Capital Management

Engineering, Maintenance

& Supply Chain

ConfigurationManagement

PaaS SaaS

EaaS

Strategy ConsultingMarket, Biz Arch, M&A

Business Process OutsourcingFI, HR/Payroll, Call Ctr, CRM

Fleet ManagementReg, Mx Program & Pln, MOC

Technology ConsultingApplication & Infrastructure

Engine Power X HourBundled Fin + Eng + Mtc + Log

Airframe Performance MgtPBL, PBC, Goldcare, TTS+

3rd Party LogisticsVMI, Warehousing, Dist / Trans

Knowledge ManagementCAMP + CASS + Reliability = BI

Cloud Computing is changing Collaboration Delivery

TechnologyServices

BusinessServices

PerformanceServices

Page 25: Autonomics Sustainment

March 29, 2010 24Thales and BWS ProprietaryCONFIDENTIAL

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The global sustainment operations centre in Fort Worth, Texas, USA. © Lockheed Martin

Maintenance information system linking the seven global F-35 operators is activated for flight testLockheed Martin is getting a head start on plans for a global Joint Strike Fighter sustainment system by switching on the information network that will collect, analyze and communicate maintenance data for F-35 flight testing.

The autonomic logistic information system (ALIS) will begin collecting data from the first F-35, which had completed 17 flights by the end of April. Initially data will be entered by maintainers, but an upgrade is planned to enable the aircraft to downlink data in flight, says Kevin LeBeau, ALIS integrated product team director.

ALIS provides 38% of the functionality needed to support the 14 development flight-test aircraft planned, says LeBeau, enabling maintainers to isolate faults and trigger the supply chain to deliver replacement parts.

Functionality is based on commercial software, including the Maintenix maintenance management system developed by Canada's Mxi Technologies. LeBeau says the ALIS team is developing shippable code every 30 days. When the second F-35 flies in May 2008 maintainers will be able to run checks and access status on the flight line using laptops and handheld portable maintenance aid.

Lockheed has established an operations control centre at its Fort Worth, Texas facility that includes sustaining engineering in order to develop repair tasks, improve component reliability and optimize the maintenance program against key performance parameters of aircraft availability, sortie generation rate and the performance based logistics contract, which shares risks and costs between the US DoD and Lockheed.

The international program team includes the United States, United Kingdom, Italy, Netherlands, Turkey, Canada, Australia, Denmark and Norway with Singapore and Israel participating through a non-program Security Cooperative Participation agreement.

Aviation MRO Trends: BPO and SaaS are merging into Performance Based Collaboration Services.

Source: Lockheed Martin Aeronautics, 2006

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HAECO is pleased to offer Fleet Technical Management (FTM) and Inventory Technical Management (ITM), two comprehensive total support packages that provide cost-effective, customized engineering and maintenance solutions. Airlines have recognized, in a highly competitive environment, they need to focus on their core competence of flight operations, maximizing revenue/yield and driving out costs by allowing HAECO to provide technical management services through a dedicated team of professionals that covers all aspects of airline engineering functions to ensure fleet operational safety and airworthiness requirement are totally complied with, to the satisfaction of operators' QA and regulatory authorities. HAECO selected and implemented Rusada’s enterprise:airline to provide the Fleet Technical Management (FTM) capability.

Lufthansa Technik’s unique Technical Operations web suite, manage/m™, allows commercial aircraft operators to manage all core functions of their fleet’s regulatory, engineering, maintenance and supply chain operations as a completely web-based system. All they need is access to the Internet – LHT does the rest.

Rounding out Lufthansa Technik’s Total Technical Services all-encompassing portfolio of maintenance, repair and overhaul (MRO) services, the modules of manage/m™ comprise a complete range of airline proven support functions that permit operators to live up to their responsibilities to the aviation authorities. manage/m™ improves effectiveness and efficiency offering real added value. manage/m™ is powered by Swiss Aviation Software’s AMOS solution.

Lufthansa Technik is proud to sponsor the official READI – web suite application! The purpose for the Reliability Exchange of Airline Data International (READI) is to provide a forum for the exchange of operational benchmark data, establishing the performance metric fleet Mechanical Scheduled Performance (MSP). READI is hosted by FedEx and currently comprises 30 airlines and OEMs.

Boeing CAS, Boeing IDS, Lockheed Martin Aeronautics, Rolls Royce DS&S, Bombardier, Embraer, Delta TechOps, KLM / AFI all have similar offerings in place or in some stage of realization

Aviation MRO Trends: BPO and SaaS are merging into Collaboration Services.

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Customized

proprietary version

of SAP A&D IS 3.0

Lufthansa Systems

AirlinesCargoCateringMaintenanceTechnologiesFinance & Investing

Lufthansa AG

Passenger

Services

Lufthansa Airlines

Cargo Carrier

Freight Forwarding

3PL Services

Lufthansa Cargo

Swiss International

Catering

LSG SkyChef

Finance & Investing

Leasing

Consulting

Travel Mgt

Airliance, Amadeus

LH Holdings

LHT Airline Customers LHT Airline Customers

LHT LogisticsLHT Philippians, Sofia, Malta, Tulsa, Alitalia, Budapest, Shannon, AMECO, Shenzhen, CSA

Lufthansa Technik

LHT example of Aviation MRO BPO and SaaS convergence

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Information technology is central to Boeing’s corporate strategy of creating value for their aircraft customers and their passengers. This is a global strategy that leverages advanced networks, communications and applications to share information digitally amongst all stakeholders. This initiative is shared across all Boeing business units and extends from onboard technology enhancements to lifecycle information management tools. Maintenix® is central component of this strategy for the 787 aircraft as it provides the information hub for managing data and integrating these diverse technologies and services for the Boeing GoldCare offering. The objectives of the initiative include:

Leverage Boeing’s engineering knowledge and fleet-wide perspective to improve resource planning and maintenance execution activities

Automate traceability from maintenance activities back to compliance with source documents for maintenance requirements

Leverage fault information being captured onboard the aircraft to streamline line maintenance planning and execution activities

Set industry standards to facilitate closer integration between the airline community and the manufacturers and maintainers

Boeing signs Long Term Agreement with Mxi Technologies

Ottawa, Canada (July 8th, 2008) – The Boeing Company has named Mxi as a partner for GoldCare, Boeing's comprehensive life-cycle management service developed for the 787 Dreamliner. Boeing has selected Mxi to supply Maintenix®, an integrated, intelligent software solution that will serve as the maintenance management portion of a comprehensive suite of enabling technologies for GoldCare.

Under GoldCare, Boeing leads and integrates a global team to deliver maintenance, engineering, and materials management tasks within a predictable per-flight hour cost. Goldcare offers two levels of service, GoldCare and GoldCare Integrated Materials Management Service; both of which include new enabling technologies that turn airplane operating data into actionable information and knowledge.

Ottawa, Canada (July 23rd, 2008) – The Boeing Company, the world's largest manufacturer of commercial jetliners and military aircraft, has signed a "Software License Distribution Agreement" with Mxi Technologies, a leader in aviation maintenance management software. Under terms of the agreement, Mxi will supply Maintenix®, an intelligent, integrated software solution that will provide Boeing with meaningful improvements to their labor productivity in after-sales product support.

Boeing’s Global Operations Center. © The Boeing Company

Aviation MRO Trends: BPO and SaaS are merging into Performance Based Collaboration Services.

Source: Boeing Commercial Airplane, 8 July, 2008 and Mxi Technologies, 23 July, 2008

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“Technology is the key enabler of this kind of collaboration,

which involves a significant amount of product lifecycle management

across multiple countries. Boeing requires all its partners on the 787

to use an application called Catia, made by Dassault, and the plane is

designed at a special online site, maintained by Boeing, called the

Global Collaboration Environment. Goldcare customers, will also

benefit from advance engineering, maintenance and supply

chain management collaboration technologies that will

significantly reduce and predictably smooth lifecycle costs.”

GoldcareGoldcare Network PartnersNetwork Partners

Americas Europe / MENA Americas Europe / MENA AsiaPacAsiaPac

OR

?

Back Office

(ERP)

Maintenance

(MIS)

Boeing example of Aviation MRO BPO and SaaS convergence

Source: Boeing Co. as reported in CIO Insight magazine, 6 March, 2007

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Aviation MRO Trends: BPO and SaaS are merging into Performance Based Collaboration Services.

Source: Bombardier, C-Series Program Update, Paris Air Show, June, 2009

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30 Bombardier example of Aviation MRO BPO and SaaS convergence

Source: Bombardier, C-Series Program Update, Paris Air Show, June, 2009

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31 … enabling Performance Based “Nose-to-tail” Total Support.

Source: Bombardier, C-Series Program Update, Paris Air Show, June, 2009

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32 Strategic Questions

Are your internal MRO IT solutions:Addressing internal requirements:Increasing Labor Productivity?

Decreasing Material Costs?

Decreasing IT Labor, Infrastructure and Solution Costs?

Increasing Aircraft Availability?

Increasing Component Engineering Reliability?

Increasing Maintenance Program Reliability?

Addressing external requirements:Increasing Business Agility?

Increasing Compliance to Industry Standards?

Increasing Regulatory Compliance?

Enabling Eco-System Collaboration?

Adding Stakeholder Value?

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Michael Wm. Denis is the Founder of Aviation Wikinomics, Inc., a

global consultancy focused exclusively on innovation of airline,

aerospace and defense aircraft lifecycle sustainment capabilities.

Michael has over twenty-two years experience in managing

maintenance operations and advising tier one airlines, aerospace

manufacturers and third party MRO companies. His current

research is focused on the use of disruptive technologies in the

optimization of revenue generation versus aircraft sustainment

costs across the various lifecycle phases of complex assets, as

well as Software as a Service and Business Process Outsourcing.

Prior to Aviation Wikinomics, Michael was a co-founder of Blue

Water Solutions, Inc. with Dr. John B. Kirk and Malcolm B. “Mac”

Armstrong, LTG / USAF retired. Michael began his technology

career at Accenture, where he was the Director, Aviation

Maintenance Solutions. Michael served twelve years in the US

Navy as a Surface Warfare Officer and Gas Turbines Engineer.

Michael attended the Georgia Institute of Technology earning a

Bachelor of Nuclear Engineering and holds a Master of Decision

Science from the J. Mack Robinson College of Business at

Georgia State University. He is a member of the Institute for

Operations Research and the Management Sciences, the

American Society of Quality and the Six Sigma Forum.

A native of Houston, Texas, Michael currently

resides in Atlanta, Georgia, with his wife, Jackie,

and son, Kyle, while daughters Ashley and

Courtney attend the University of Georgia and

Kennesaw State University, respectively.

MICHAEL WM. DENISPRINCIPAL

AVIATION WIKINOMICSAIRLINE, AEROSPACE & DEFENSE INNOVATORS

M: +01 678.524.8289

F: +01 772.594.8289

E: [email protected]

L: www.linkedin.com/in/michaelwdenis

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AVIATION WIKINOMICS