Major IT Transformation

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2 Major IT Transformation Infrastructure Management 30 August 2016 By: Thomas Kibui

3 Agenda Business Challenges SITA Infrastructure Management Evolution to SIAM Engagement Model Key Benefits 3 Infrastructure Management Confidential SITA 2016

4 Business Challenges Airlines and Airports 4 Infrastructure Management Confidential SITA 2016

5 Airlines strategic business initiatives Costs reduction Reducing true cost of delivering ICT services to its users without impacting customer satisfaction or agility Airline modernization Transforming business processes and modernizing infrastructure to sustain business and survive; driven by competition, customer demand, cost pressure, inflexible practices or outdated systems Connected passenger experience Delivering best-in-class passenger experience cost -effectively to meet passenger demand for control of travel experience via online and mobile channels Routes expansion Surmounting challenges associated with adding new destinations; expanding existing destinations with time pressure and lack of knowledge of new environment New generation aircrafts Introducing new generation aircraft increases expectations for airlines to generate efficiencies, as well as differentiate with enhanced passenger value; forces airlines to reconsider approach to aircraft/flight/cabin/ passenger operations 5 Infrastructure Management Confidential SITA SITA 2016

6 Airport strategic business initiatives Improve operational efficiency Anticipate and manage disruptions and Optimize resources through collaboration Grow non-aeronautical revenue Increase passenger dwell time and commercial revenues Increase customer satisfaction Create an Ideal Passenger Experience Boost Tenant and Airline effectiveness Provide a shared platform to facilitate operations Manage growth with existing infrastructure Become more tenant friendly 6 Infrastructure Management Confidential SITA SITA

7 MANY CONFLICTING DEMANDS ON IT BUDGET, BUSINESS, AND PRODUCTIVITY Changing Market Conditions Mergers and Acquisitions Emerging Competitive Threats Business End Users Need Agility and Flexibility Diverse User Populations Scarce Staff IT Profs Need Control Many Configurations Matrixed Partners Aging Hardware Tighter Budgets 7 Infrastructure Management Confidential SITA SITA 2016

8 PRESSURE TO OPTIMIZE & INNOVATE MANAGING MODERN IT COMPLEXITY WHILE DELIVERING GREAT SERVICE TO END USERS Business Demand For Innovation (Through IT Services) Value IT Service Supply Demand for shorter cycle times Complexity slows productivity Consumerisation of IT IT must fill the growing gap IT Capacity for Innovation There s a growing gap between the demands placed on IT and IT s ability to deliver 8 Infrastructure Management Confidential SITA SITA 2016

9 SITA s Infrastructure Management Evolution to SIAM 9 Presentation Title Confidential SITA 2015

10 Evolution of sourcing model for IT Target model SIAM Multi-source Out-task delivery components to multiple organizations, and also out-task the management function using the SIAM model. Out-task delivery components to multiple organizations, Complex managing each contract and supplier yourself in a retained organization Outsource Outsource everything (in scope) to an IT services organization Loosing who may control deliver all services themselves or act as a prime contractor In-source Do it yourself Buying in external services as needed Expensive 10 Infrastructure Management Confidential SITA 2016

11 Demand SIAM, a de-facto industry standard Service integration and management (SIAM) is a framework for managing multiple suppliers of IT services and integrating them to provide a single business-facing IT organization. Definition from Wikipedia Businesses Service Integration & Management (SIAM) Supply Service catalogue E2E Performance Monitoring OLA management Provider relationship coordination Interprovider management Service Delivery Coordination Suppliers 11 Infrastructure Management Confidential SITA 2016

12 SITA s 3-step approach (Airlines) Passengers business services (internal customers) Airlines IT Multiple Services Suppliers Applications EUC Let s take an example An airline IT managing Multiple Service Providers with SITA providing a part of the network services SITA DC/Cloud WAN Value-added network services 12 Infrastructure Management Confidential SITA 2016

13 SITA s 3-step approach (Airlines) Passengers business services (internal customers) SITA Airlines retained IT Multiple Services Suppliers Step 1 TAKE-OVER the INFRASTRUCTURE AS IS and MANAGE Applications DC/Cloud SITA WAN EUC Value-added network services 13 Infrastructure Management Confidential SITA 2016

14 SITA s 3-step approach (Airlines) Passengers business services (internal customers) SITA Airlines retained IT Step 2 IMPROVE Multiple Services Suppliers Applications DC/Cloud EUC Value-added network services Service catalog E2E Performance Monitoring OLA management Provider relationship coordination Interprovider management Service Delivery Coordination Remote management SITA WAN 14 Infrastructure Management Confidential SITA 2016

15 SITA s 3-step approach (Airlines) Passengers business services (internal customers) SITA Airlines retained IT Step 3 TRANSFORM Multiple Services Suppliers Applications SITA EUC SITA network SITA VACS (LAN, voice, etc..) SITA EUC SITA Cloud SITA applications SITA SITA DC/Cloud WAN Value-added network services SITA 15 Infrastructure Management Confidential SITA 2016

16 For the Airports AirportNetwork Infrastructure AirportNetwork Management AirportNetwork Commercialization design, install, manage the integration, configure the network and provide the equipments operate and manage the Network and IT infrastructure as per the ITIL framework create and manage the Network & IT services catalogue, sell & deliver services 16 Infrastructure Management Confidential SITA 2016

17 Engagement Model 17 Infrastructure Management Confidential SITA 2016

18 Joint Opportunity Assessment a stepping-stone in the journey Get visibility on Airline communications infrastructure Baseline TCO Inventory current infrastructure Detail vendors contractual agreements Analyse operational model Receive recommendations for improvement Cost reduction Optimisation Quick-Wins Transformation Areas covered Operational model Sourcing strategy LAN Voice EUC Network EUC (EUC Audit) Cloud (DaaS, IaaS) SIAM Readiness Networks (APM/ insite) Voice (VCO) 18 Infrastructure Management Confidential SITA 2016

19 AIRPORT INFRASTRUCTURE MANAGEMENT Engaging with airports at all phases of a project MSI project Single Project Systems Integration Services management Complex deal Outsourcing / JV Commercialization AirportHub / AirportHub Wireless 19 Infrastructure Management Confidential SITA 2016

20 Key Benefits 20 Infrastructure Management Confidential SITA 2016

21 For the Airline Control and reduce costs, simplify operations, and focus critical resources on strategic initiatives KEY BENEFITS Reduced Costs Simplified Operations Facilitated access to Innovation FEATURE / FUNCTION Transition as-is of the infrastructure End to End Management and Reporting Customized service catalog and simplified pricing 3rd Party Vendor Management Customer portal Insert diagram / graphic or picture here 21 Infrastructure Management Confidential SITA 2016

22 Airline Infrastructure Management Key benefits and case studies CUSTOMER SERVICE OVERVIEW CATEGORY Virgin Atlantic Scandinavian Airlines Finnair Hapag-Lloyd Air India Infrastructure Management contract with integrating all communications services. Scope: international and domestic WAN; the LAN; voice services; Internet access and all network peripheral services All services are delivered via SITA acting as a Single Point of Contact. SITA has permitted SAS to save $3.6m in voice services. The solution proposed to SAS includes the take-over of SAS existing voice infrastructure followed by a transformation to a full IPT voice network. SITA has signed a contract for a Remote Office solution under the Infrastructure Guardian model. The solution includes WAN/ desktop/ LAN/ voice and is delivered via an itemized service catalog. SITA will manage the provisioning of voice services throughout the organization : 6000 extensions located in a total of 138 sites, where all assets from Hapag-Lloyd are transferred to SITA and then transformed to a full IPT voice solution. In 2010, Air India contracted SITA for the management of their infrastructure at all of their outstations (domestic and international). The contract aims at providing an end to end solution to from the desktop to the reservation platform. The solution includes the provisioning of the network - domestic and international, as well as managed LAN and desktops. The pricing scheme bundles all the services included in the solution and is proposed under a per passenger-boarded model. Airline Infrastructure Management (Communications Services) Airline Infrastructure Management (voice) Airline Infrastructure Management (Remote Office) Airline Infrastructure Management (voice) Airline Infrastructure Management 22 Infrastructure Management Confidential SITA 2016

23 For the Airport Consolidated mission critical platform supporting the airport transformation Control and visibility of network and total communications infrastructure Higher integration with all IT systems, supporting collaboration Improved availability and service management New revenue streams Reduced network and IT operational costs 23 Infrastructure Management Confidential SITA 2016

24 CREATING SUCCESS WITH... Because our focus is on running airports, it makes sense for specialist IT functions to be outsourced, which is also much more cost effective. 24 Infrastructure Management Confidential SITA 2016 Philip Langsdale, Chief Information Officer, Heathrow Airport Holdings Limited

25 Q&A Thank you 25 Infrastructure Management Confidential SITA 2016