Wheels Up - The Weblog of Aircraft Data Fusion

Considerations for Creating an Innovative IT Strategy

In a recent issue of the CIOINSIGT magazine the results of an industry survey were compiled and presented as a representative sampling for 2012 planned IT budget expenditures. For large and medium sized businesses the collective results indicated mobile applications and network infrastructures would receive the highest budget allocations. Data storage, processing and desktop applications were considered more as commodity assets and will be receiving significantly less IT budget.

Pushing applications out to Mobile devices is considered the best way to increase productivity and is ranked the highest in the larger companies. Building out their wireless network capabilities was ranked as number two. This strategy is seen as an efficient way to achieve their integration and single source data processing/storage needs.

Medium sized businesses are not quite as far along as the larger companies in the deployment of mobile applications and they were more focused on content management first then mobile applications.

Mobile devices and applications will command the largest investment for both categories, driven by three economic factors:

· Increased productivity achieved with mobile applications

· Flexibility and agility required to be competitive

· Availability and quantity of integrated and hosted mobile applications

Budgets for in-house developed and maintained applications are being reduced from approximately 85% of a typical IT budget to near a 50% level. Those considered as non-commodity applications are being maintained until an acceptable alternative is available.

Moving away from in-house developed and maintained applications provides a significant cost advantage from:

· The ability to right size processing & Storage

· Eliminate; development, updating, facility and network build out costs

· Significant reduction in per employee costs for functionality & analysis

· Flexibility and agility from usage sensitive pricing models

Nine (9) out of ten (10) respondents to the survey also indicated that they will be increasing their Business Intelligence (BI) budgets in 2012. New BI tools have been developed for nearly every aspect of business & operations and are seen as an effective tool to achieve collaboration and creating a fact based decision culture. The ability to organize and structure operations content around business objectives creates a rich new data environment for operations analysis and predictive analytics.

An innovative IT strategy should also include market based management tools that will ensure that your strategy is agile enough to handle emerging IT marketing delivery models. Some respondents concluded that a strong mobile component may be necessary to maintain or create competitive advantage.

Employee Collaboration & Motivation

I recently read an interesting Gallup Research paper where more than 47,000 employees of various companies around the world responded to a 12 question survey regarding job performance. The questionnaire was titled: “Recognition and Feedback”. In their answers most felt that they had adequate tools and training to perform their job but little if any feedback on how well they were doing. In addition, there was no convenient way to provide recommendations or comments back to management.

Research has shown that employees that are well informed about not only the company, but also how well they, or their particular area is performing, provides the company with a harmony in the work force that creates a competitive advantage. Gallup researchers point out that feedback is the easiest and quickest changes to make and is directly linked to performance outcomes.

Employees generally don’t need feedback and recognition to meet their minimum responsibilities each day. But recognition and personalized feedback are crucial predictors of a workplace that is functioning well when trying to achieve collaboration and productivity initiatives such as a merger or restructuring during a bankruptcy.

The conclusions drawn by the research team is that most front line employees have the tools necessary to their job, but little to no feedback on performance or motivation initiatives. It is interesting that the two elements of the entire survey that are the easiest to execute and that drive improved performance are routinely ignored.

Building a performance based culture does make a difference. New, web based technologies and applications are available to support initiatives that provide immediate feedback on performance and can be used to build a performance base culture.

I listen to many quarterly earnings calls where executives are quick to pronounce how pleased they are with their employee team and applaud them for their great contributions and sacrifices. I do find many of these same accolades on their web site. However, this provides little satisfaction to the employee or teams of employees’ that want feedback on their performance, on a daily, weekly or some other bench mark basis.

In general, the researchers concluded that there is a very close correlation to low productivity when poor management and workflow processes exist.

E Commerce delivering business results

Nature and people do not always cooperate with your plan for the servicing and loading of aircraft.A slight deviation from plan can lead to a very complex and changing environment. The ability to detect and react quickly represents a significant opportunity to manage the outcome to achieve operational or business results.

Both home grown and third party systems are available to detect an early deviation from plan but few are sufficiently integrated for tactical intervention to change workflows or processes to achieve desired results. High performance access to key performance data by frontline employee’s reduces complexity and leads to faster,better, data driven decisions driving improved results. Without adequate performance tools, decision makers have no way of knowing if their decision was the best business decision.

It is well documented that significant performance and efficiency improvements have been achieved with manufacturing and enterprise resource planning tools. Applying this same discipline and tools to the servicing and loading of aircraft will provide similar results.

A number of airlines have built elements of these tools and performance measurements but most are isolated to a very limited set of tasks. Further, the data collected, calculated and presented by these tools are generally limited to a select few managers and executives.

The integration of Cloud, Web and Mobile technologies creates the infrastructure and delivery capabilities for E-Commerce tools to be accessed and delivered efficiently. They can be implemented easily, quickly and be purchased with usage sensitive pricing models. E.g., purchase by the flight.

Airlines that move quickly to adopt a suite of integrated tools such as these will have a distinct competitive advantage.

ADF Announces Release of Its Microsoft Azure-Based Applications for Airlines

Aircraft Data Fusion (ADF) Announces The Release of Its Azure-based applications Countdown-to-Departure (CTD)^TM and Taxi Monitoring/Alerting (TM/A)^TM

July 12, 2011 - Aircraft Data Fusion, Inc. (ADF) announces the launch of its Airport Ground Operations Suite applications, Countdown-to-Departure^TM and Taxi Monitoring/Alerting,^TM designed to save money for commercial airlines by streamlining operations, reducing the complexities associated with preflight aircraft preparations and lengthy taxi delays at the airport. 

ADF has leveraged Microsoft’s Windows Azure platform to bring real-time visibility of operations, as they happen, to airline operators enabling proactive versus reactive management. These integrated solutions sit unobtrusively alongside the airline’s existing systems and provide airline executives and management with digital electronic eyes focused on operations to the second at any airport, anywhere.

“Accessing these new solutions via the web from Microsoft’s Windows Azure platform represents a significant differentiator for ADF as it reduces the risk of protracted implementations and training for complex environments”, says Duane Edelman, CEO of Aircraft Data Fusion.

ADF leveraged Microsoft’s technologies and partner resources in the design, development and now the deployment of these two ground-breaking applications.  “ADF’s use of the Windows Azure platform to ensure safe air and runway traffic is an example of how Windows Azure can benefit customers with real-time data.. ADF brings deep industry knowledge, experience and now with the power of Windows Azure to help the airlines implement next-generation answers to operational challenges,” stated Nicole Denil, Director, US Windows Azure ISV of Microsoft.

The Countdown-to-Departure application is used to monitor aircraft airport ground operations and servicing between flights. As a flight’s Countdown-to-Departure timeline ticks on, predefined email alerts are generated and sent for tasks past due. Task delay information is viewed as it occurs in real time, providing immediate visibility to address irregular operations before they become a problem and drive up costs.

The Taxi Monitoring/Alerting application monitors how long an aircraft has been away from the gate (departing flight) or how long an aircraft has been on the ground (arriving aircraft) and has not arrived at a gate. Using the airline’s defined rules for tracking these flights, this application sends alerts to and communicates with all parties involved in the successful execution of the airline’s rules relative to the Passenger Bill of Rights.

 

About Aircraft Data Fusion (ADF)  

Aircraft Data Fusion Inc. is a technology company based in Minneapolis, Minnesota specializing in software solutions in support of airline operations. ADF has earned a reputation of being an innovator in creating new approaches to address airline operations. For more information:  www.aircraftdf.com.

Predictive Analytics

MIT Sloan Management Review published a recent report titled; “Analytics” The New Path to Value. The article seems to have captured the essence of what a number of articles have attempted to communicate; Predictive Analytics can point to specific actions that will improve outcomes.

Predictive analysis rather than “gut feelings” allows managers to make more targeted decisions.  The origin of the analysis is using your own data so the results reflect exactly what is happening in your operations. E.g., operations performance deteriorates by a consistent value when a specific external event occurs. Using the performance degradation metric as the measure, a proactive action can be implemented and the results measured for effectiveness.

Proactive Analytics is a summary of the past being analyzed and drawing generalizations that can be projected forward and applied to future events. Predictive analytics answers the question, “what is going to be the impact” and the operator can determine “what should we do about it”. E.g., increase staffing, authorize overtime, bring in staff from other facilities, etc.   

A number of studies have proven that the best way to succeed with performance analytics is to make them an integral part of the way an organization; thinks, works and makes decisions. It is important that this tool be used strategically to support real-time calculations and improve policies and processes that address targeted areas in the operations. The value of predictive analytics has proven to be an effective means of managing irregular operations and predictable events. Commercial tools and solutions are becoming more available as service providers more clearly present the concept and insights regarding its use that can be clearly understood.   

The best strategy to use when implementing Predictive Analytics is to target the biggest and highest value opportunities. Keep your existing capabilities. As new capabilities are validated, make them an integral part of your operations. Predictive analytics can then provide you with a competitive advantage in highly competitive markets.

Aircraft Data Fusion has focused it’s Performance Analytics model development to airline/aircraft ground operations.

Expectations of the “New” Airline Operations Executives

Based on a series of sales calls to airline executives who fit in the 35 to 55 year old demographics, I have come up with a short list of their expectations from technology:

• Access to key performance indicators (KPI’s) 24/7 any day regardless of location:
  • Office
  • Home
  • Vacation
  • Sitting on the airplane
• Hardware platforms to include: Smartphones, Netbooks, Laptops, Desktps, etc.
• The ability to drill down into any KPI to a level that will provide sufficient business intelligence (BI) from which a operations decision can be made.
  • Alerts when predefined KPI are exceeded.
• Execute workflow instructions throughout the airlines operations at the touch of a send queue on the screen.

This group of executives, managers and supervisors, by definition, are mobile and do not want to be disconnected from their area of operations. They want to know the score and status of the game at any time. Enabling technologies include:

• More durable and robust hardware devices that include:
  • Interactive displays
  • Improved performance
  • Light weight mobile devices
  • Significantly improved battery life.
• Cheaper and faster bandwidth enabling applications to be more travel friendly
• Easy to view and use software applications
• Use of Dashboards and Executive displays to present KPI’s in real-time. 

This group of airline executives view the purchase of these capabilities as a necessary business investment, not a technology purchase. To achieve the objectives identified by these executives the right combination of hardware and software must be utilized. This combination should be selected based on the task(s) to be performed to achieve the defined productivity improvement(s). In addition; access, delivery, functionality, scalability and maintenance costs should be considered.

Analysis in Real-Time

Do your managers and front-line workers have real-time information and tools to assist them in making consistent on the spot decisions? Do they have real-time feedback on the results of their decision or does their decision become convoluted with all of the noise when finally analyzed by the outcome?

In today’s world of hyper analysis and graphics, sometimes it is necessary to go back to the basics to determine if the original plan/strategy is still appropriate. Real-time feedback and performance based management analysis is the basis for a common sense approach to analyzing results and enhancing a company’s performance. Unfortunately, many IT departments get mired down in the tactical functions of managing IT systems rather than evaluating enabling technologies in support of business strategies. They become more focused on server up-time than business outcomes.

Airlines have a unique problem to solve when trying to provide real-time feedback and performance measurements to frontline managers and employees.  On average more than 70% of an airlines' workforce completes their tasks away from the center of operations. By definition they are a mobile work force with limited tools to keep them connected to the enterprise. Policies and procedures are the guidance and the glue that guide this work force with little or no feedback mechanisms to let them know the score on their overall performance.

To achieve the customer satisfaction levels desired by airline managers, this mobile workforce must be provided with decision support tools for the consistent execution of tasks to enhance the customer experience. This provides organization and discipline to business processes.  Most employees want to know how well they are performing against some predefined metric.  

The inter-play of communications and computing technologies coupled with applications that can be used across a wide variety of platforms, provides the ability to capture analytical data at the point and time of execution now.

It is no longer acceptable to wait and review the daily, weekly or monthly outcomes to determine how well your operation is performing. Real-time feedback and analysis must become an integral part of the daily business activity for both employees and customers. Performance measurements can then be tweaked and optimized over time to get maximum performance from your operations.

Aircraft Data Fusion’s, Countdown-to-Departure^TM (CTD) application institutionalizes an airlines preflight task process that lead up to an on-time departure. It provides for the: monitoring, alerting and recording of the performance parameters for each task. The application provides real-time feedback to both employees and corporate executives as to how well their operations are performing (electronic eyes) and the impact on corporate goals and key measurements. Performance Measurement is the key to managing and improving airline operations business.  

It is important to reiterate that Business Process Management/Improvement is not a one phase process. It is a continuous process that can be measured, validated and improved upon. Their are basically three phases to process management improvement:

• Phase I = Productivity and efficiency improvements (as a result of performance measurements).
• Phase II = Effectiveness, how effective are revised or new processes facilitated by technology and integration.
• Phase III = Agility, how quickly and effectively can processes be changed to meet operational, market, regulatory or corporate requirements. 

A Business Process Management tool establishes the platform for continuous development and improvement. This provides a continuous incremental ROI on a consistent basis.

The CTD solution integrates and capitalizes on three great IT trends currently in vogue:

• Event-driven applications and models
• Cloud Computing
• Mobility

Preflight Process Discipline = On-Time Departure

Preparing a flight for departure is a well understood process for airline operators. In developing their operational processes and procedures they allocate a specific amount of time and a sequence for the completion of each task. This is done to control congestion around the aircraft and provide an orderly process flow in preparing the aircraft for an on-time departure. On a Blue-Bird day void of disruptions, these processes and procedures work well. When these processes and procedures are disrupted for any reason; weather, aircraft maintenance, etc., in a multiple flight or hub airport environment, the system can break down rapidly.   

The process flows and execution points of preparing an aircraft for flight is a typical supply/delivery chain model used in many industries; manufacturing, shipping and customer fulfillment businesses. Federal Express and UPS can tell the customer with a great deal of accuracy where their shipment is and the status of the delivery.

Airlines in general have not adopted systems that will track the critical preflight tasks and measure the performance of their execution. Further, insufficient performance data is collected to determine if productivity or efficiency gains could be achieved modifying any portion of the flow or hold vendors accountable to a set of performance metrics to ensure on-time departures.

The preflight tasks leading to an on-time departure can be programmed into a digital business process management tool to deliver consistent execution, measurable performance, trends and immediate feedback to users. Also, alerting for any deviation and escalating it to a successful resolution is essential to maintaining schedule integrity and customer satisfaction. 

A lot has been written about leveraging proven methodologies and best practices to gain productivity and efficiency in your operations. This is a great concept but if all you have to measure the improved productivity or efficiency of a business process change is the end of: week, month or year outcome, you have no way of knowing if the process changes or some other factor led to the final outcome. This why it is essential to have a system in place that monitors the performance of a solution in real-time and will alert and measure the variance caused by the change.

The Gartner Research Group estimates that for a one Sigma (one Standard deviation) improvement in a given business process it will yield:

• 20% improvement in margin
• 12-18% increase in capacity
• 12% reduction in number of employees
• 10-30% capital reduction

The Gartner Group further stated that by simply insuring a consistent execution of current tasks and making timing and responsibilities explicit, productivity gains of more that 12% are normally realized. The results of these improvements are lower costs and increased customer satisfaction.

A Business Process Management tool such as Aircraft Data Fusion’s, Countdown-to-Departure^TM application institutionalizes an airlines' preflight task process, leading up to an on-time departure. It provides for the: monitoring, alerting and recording of the performance parameters for each task. The application provides real-time feedback to both employees and corporate executives as to how well their operations are performing (electronic eyes) and what the impact is on corporate goals and key measurements. Performance Measurement is the key to managing and improving airline operations business processes to achieve a One Sigma/One Standard Deviation improvement in productivity and efficiency.  

It is important to reiterate that Business Process Management/Improvement is not a one phase process. It is a continuous process that can be measured, validated and improved upon. There are basically three phases to process management improvement:

• Phase I = Productivity and efficiency improvements (as a result of performance measurements).
• Phase II = Effectiveness, how effective are revised or new processes facilitated by technology and integration.
• Phase III = Agility, how quickly and effectively can processes be changed to meet operational, market, regulatory or corporate requirements. 

A Business Process Management tool establishes the platform for continuous development and improvement. This provides a continuous incremental ROI on a consistent basis.

When considering a Business Process Management tool there are key development and implementation criteria that need to be considered to manage risk and cost:

• Impact on current IT infrastructure
• Rapid deployment
• Risk mitigation
  • Time to value
  • Risk of adoption (use familiar delivery and user interface applications: i.e., Internet, Microsoft Windows and Microsoft Outlook)
  • Ability to quickly respond to change requests
  • Expanding scope 

Cloud Computing - What is it?

In a recent Aviation Week magazine article written by Graham Warwick, he defined Cloud Computing as a “Business Model” rather than a technology. This strikes me as a more accurate definition as it reflects the rationale to be used when considering Cloud Computing.   

Cloud Computing eliminates many of the tactical/maintenance functions required for in-house legacy system applications while utilizing some of the latest software solutions available. With much of the cost and inflexible structure of a legacy system eliminated, your IT support team can be used as a strategic business development center rather that a cost center.

Warwick goes on to describe many of the attributes of Cloud Computing that are driving this acceptance:

• Virtually unlimited processing power
• Sophisticated software tools
• Affordability
• Data collaboration & transparency
• Higher levels of security

Flexibility, scalability, lower processing and storage costs appear to be the captivating terms for Cloud Computing. 

There have been some concerns expressed about the lack of standards for Cloud Computing. This may be because many are still looking at Cloud Computing as a technology rather than a business model. When viewing it as a business model the need for standards become less of a concern since improved flexibility is a more attractive attribute for its use as a business tool.

Cloud Computing can be hosted in a variety of physical structures. When researching the different vendors of cloud computing you will need to be aware of different design and facility configurations. Vendors are positioning themselves to be as competitive as they can by bringing processing and storage costs to as close to a commodity as possible. Vendors will continue to improve on facilities, equipment cooling and hardware design.

In summary, Cloud Computing has the potential of being the next disruptive technology that will significantly change the way airlines conduct their business. Early adopters may enjoy a clear competitive advantage both in cost and capabilities.   

Analytics in Real-Time

Do your managers and front-line workers have real-time information and tools to assist them in making consistent on the spot decisions? Do they have real-time feedback on the results of their decision or does their decision become convoluted with all of the noise when finally analyzed by the outcome?

Real-time feedback and analysis is the basis for common sense approach to enhancing a company’s core competencies. Unfortunately, many IT departments get mired down in the tactical functions rather than supporting business strategies. They become more focused on server up-time than business outcomes.

Airlines have a unique problem to solve when trying to provide real-time feedback and performance measurements to frontline managers and employees.  On average more than 70% of an airlines workforce completes their tasks away from the center of operations. By definition they are a mobile work force with limited tools to keep them connected to the enterprise. Policies and procedures are the guidance and the glue that is routinely followed with little or no feedback on their effect on overall system performance.

To achieve the customer satisfaction levels desired by airline managers, this mobile workforce must be provided with technology that can be used as decision support tools for consistent execution of tasks in addition to the ability to provide performance feedback on how well they are doing. Most employees want to know how well they are performing against some predefined mutually agreed upon metric.  

With the maturity of communications and computing technologies coupled with applications that can be used across a wide variety of platforms, the ability to provide and capture analytical data at the point and time of execution is ready and available.

It is no longer acceptable to wait and review the daily, weekly or monthly outcomes to determine how well your operation is performing. Real-time feedback and analysis must become an integral part of the daily business activity for both employees and customers. Performance measurements can then be tweaked and optimized over time to get the best performance in your operations.

This solution integrates and capitalizes on three great IT trends currently in vogue:

• Event driven applications and models
• Cloud Computing
• Mobility