Digital Platform: Foundation for a Successful Digital Transformation JourneyBrendan McKittrick - Chief Technology Officer

Digital Transformation

We’ve been on a journey to revolutionize

air cargo

Source: ICAO, IATA(After interest and taxation)

World Scheduled Airline net profit margin (%)

Economic Backdrop to the Airline Industry

*e-commerce business will grow from 1.3 trillion US$ in 2015 to 3.5 trillion in 2019

0

500

1000

1500

2000

2500

3000

3500

4000

2014 2015 2016 2017* 2018* 2019*

Sale

s in

bill

ion

US

do

llars

• The rise of digital commerce (e-commerce) has empowered consumers, who can now source products from anywhere in the world or compare prices with just the touch of a smartphone.

• The role of airlines in the global e-commerce boom is important, because:

A Changing e-Commerce Landscape

– 64% of online consumers say delivery speed is important (Accenture)

– 61% of survey respondents stated they would be willing to pay more for same-day delivery (PricewaterhouseCoopers)

3,551

2,991

2,485

2,046

1,672

1,343

• Some case studies:

A Changing e-Commerce Landscape

– Amazon branded its airline “Prime Air”

– Alibaba’s partnership with USPS and Singapore Post

– Isetan Singapore’s E-commerce site and Yamato Transport and ANA Cargo

– Cathay’s partnership with China Post and Hong Kong Post

0

2

4

6

8

10

12

14

2015 2016 2017 2018

Wearable market growth

$7.1b

$8.9b

$10.9b

$12.6b

Digital Transformation

Augmented Reality – A Case in Point

Market Growth

Industry predicts that by 2017 the AR market will grow to USD 5.2 billion.

New Perspective

Augmented reality (AR) provides new

perspectives in air cargo’s planning, process

execution, and transportation.

Hands Free Operation

AR-powered warehouse operations utilize smart

glasses for the hands-free operation of various tasks

within a warehouse such as product picking, packing,

sorting, and even assembly.

Right Information

AR empowers workers by providing the right

information, at the right time, and in the right

place.

Digital Technology – Macro Trends

Augmented Reality

Big Data Cloud Mobility On-Demand Logistics

IoT

Self Learning Systems

Omni Channel

Digital Currency

Logistics Marketplaces

Robotics & Automation

Blockchain

Greatest Challenges Facing Organizations

Lack of operational efficiency

Capacity Utilization

Low yields

Outdated/complex

Legacy systems

Lack of data availability/visibility

Inaccurate /

sub-optimal pricing

Asset utilization

(ULD management)

Poor customer relations (track and trace, claims)

Meeting Customer preferences

25%

20%

21%

8%

8%

4%

7%

6% 1%

25%

20%

21%

8%

8%

4%

7%

6%

1%

Lack of operational efficiency

Capacity Utilization

Low yields

Outdated/complex

Legacy systems

Lack of data availability/visibility

Inaccurate /

sub-optimal pricing

Asset utilization

(ULD management)

Poor customer relations (track and trace, claims)

Meeting Customer preferences

Source: Accenture 2015 Air Cargo Survey

Challenges Related to User Experience

Designing for an Enhanced User Experience

Public API

Management & Monitoring

Connectivity and Integration

An

alyt

ics

Self

Ser

vice

Sho

p

Bo

ok

Bill

ing

Reg

ula

tory

Pri

cin

g

War

eho

usi

ng

Qu

alit

y

CMS PSS Rev Acct Customs

API Enabled Product

Supporting a Marketplace & Partner Ecosystem

Fully Self Service Enabled

Data ConfigBusiness

Rules Pricing WarehouseQuality

Management

Enter your title here

Technology is irrelevant… when it

works

The user experience is paramount

Operate at the speed of change

4As Approach to provide access to

informationAnytimeAnywhereAny channelAuthorized

User Experience is the Key Differentiator

Product Design: Warehouse App

Existing FlightCapacity Dashboard

Real-Time Command & Control Dashboard App

Visit www.mercator.com

Thank you