the future of air transport

Ericsson Internal | 2013-10-14 |

15nd of June, 2016 – Marcus Velin

The future of Air transportOpportunities in the world of Logistics and Digitalization


Content

› Ericsson in brief

› Ericsson in Logistics

› Logistic Opportunities and Requirement

› Logistic Digitalization Opportunities


Ericsson History

Communication is a basic

human need

Lars Magnus Ericsson

1876


Imp

act o

n s

ocie

ty

First mobile designed

3G

Bluetooth

Smartphone

Mobile video call

4G

Ericsson was founded

1900 1950 2000 202018501800

Morse codeSignal lamps

Automatic call switching system

Mobile text and data system

Communication is a basic human need


A Networked Society

where every person

and every industry

is empowered to reach

their full potential

Ericsson Vision


Everything that benefits from a connection will be connected

1900

10

30

50

15 years - 26 billion

connected devices


connected people


connected places

20

40

Co

nn

ectio

ns (

bill

ion

)

Our vision - 50 billion

connected devices

2018


Society Transformation

Industrial Society Networked Society


Our Customers

TELECOM OPERATORS

TV & MEDIA

UTILITIES

PUBLIC

SAFETY

TRANSPORT


35,000

25,000

$ 4b 64,000

2.5 billion

1 billion

180

50%

117,000

Subscribers

managed by us

Subscribers

supported by us

Services

professionals

4G smartphone traffic

handled by our networks

Employees

Countries with

customers

R&D Employees

Patents

In R&D

$ 28b Net Sales 2014

Shaping the networked Society

Networks IT TV & Media Industries

Create one network for a

million different needs

Achieve business agility

with transformative IT

Delight the TV consumer

every day

Connecting Industries for

business acceleration


Over 270.000 ton transported 2014

annual Volume


Some Numbers 2014

Total Outbound spend 6.2 BSEK

2.4 BSEK

2.9 BSEK

0.9 BSEK


Some Numbers 2014

Spend % Weight %


Some PerspectivesAir

Truck

Sea

Other

25%

35%

39%

1%

1983

2002

2014

Per cent of total shipped weight

– EAB Outbound

?


Share of surface freight


Major Air Lanes


The vision

Distribution network

Network node

Network lane

Production/External Supplier/EMS

Primary node coverage area

Selection Criteria's

› Market window & Emerging

markets

› Land/sea access & Distance

› Value/weight ratio

› Forecast accuracy & Material

shortages

› Make-to-order/Configuration

› Product lifecycle & Go to

market time

› Transport reliability

› Environmental impact

› SAP TM becomes the harvesting tool

for our strategic/tactical decision.

› Creating E2E platform for synergies

› Possibility to break down silos and

visualize the supply network

› Decision support and operational

best practice

Transportation Management System

Strategic

Tactical

Operational

Transport

Requirement

Transport

Planning

Transport

ExecutionFreight Settlement

TMS

70-80% impact on

logistics cost

20-30% impact on

logistics cost


Product Development

RBS 2106

> 550 Kg / 2,6 M3

RBS 3106

> 650 Kg / 2,7 M3

RBS 6201

> 160 Kg / 0,8 M3

Micro RBS 6501

Small Cell

AIR

Radio Dot

~ 300 g

NGR

5-19 Liter

From bulky high value products to small

high value, integrated and modularproducts

Density value

› More global

› More Mergers & Acquisitions

› More IT integration

› Cost focus

› Subject to governmental interference

› More information management

– end-to-end supply chain information

› More services

– greener

– covering whole value chain of manufacturers

– standardized (plug and play)

External factors– Evolution in the industry

Market Challenges in a Changing World | Ericsson Internal | . Uen, Rev PA3 | 2014-04-03 |

Requirements: Costing

• Stability in total freight cost over time.

• Decreased use of surcharges – prices to

be increasingly “all-included”.

• Increased commonality of price

structures across the industry, to support

productification of services.

Page 20


Requirements: Information

• Increased availability of real-time status information.

• Improved and simplified integration of systems, carrier – forwarder –

shipper

• Better CO2 reporting.


Requirements: Predictability

• Consistently high level of lead-time accuracy.

• Smooth and painless introduction of any new security regulations or other

official requirements.

• No surprises, please: high predictability throughout.


› It’s complicated (train, implement,

connect, test, debug...)

› It’s expensive (old costly infrastructure,

private leased lines...)

› It’s outdated (pre-internet technology,

legacy systems…)

› It’s slow (faster fax, out of sequence

messages...)

› It’s unreliable (data lost in space or

translation).

How Air Cargo works today

Invoice

Packing list

Invoice

PLD

O

Invoice

Packing list

AWB

H-Manifest

AWB

H-ManifestCargo

Receipt

ED

Customs

export

rel.

Invoice

Packing list

AWB

F-Manifest

H-Manifest

Freight Arrival

notification

Invoice

Packing list

AWB

H-Manifest

Invoic

e

AWB

ID

Customs

import

rel.

D

O

AWB

Customs &

Handling fees

AWB

Trp Invoice

ACI

PO


How it could work in the futureCargo Data Backbone

› Improve the performance

(end to end / door to door)

› Improve the quality and

increase the attractiveness of

the airfreight supply chain

› Prioritizes on the support of

efficient operations


Airport Offering Overview


Airport Value Proposition

Passenger

Wi-Fi

Data Center

/Cloud

Enterprise

LTE

Multiservice

Backbone

Billing &

SettlementCRM

Security &

Surveillance

Low Power Wide Area NetworkIndoor

Coverage

Human Mobility Analytics Internet of Tings Accelerator

Security and Operational Efficiency

› Share real time operational info, security data and air

space data using secure, stabile and dedicated fixed

and wireless networks

› Optimize the ICT investment to solve multiple needs

and provide lowest TCO

› Leverage unique billing platform (with track record from

GRU,ORD, GIG) for all line of business and reduce

outstanding invoices

Passenger Experience

› Provide best in class digital experience

and improve passenger satisfaction

› Understand passengers mobility

patterns using both Wi-Fi and cellular

networks and increase revenue per

passenger

› Customize the media/advertising

content to the user

Asset Management

› Use unlicensed networks to connect

anything at the airport which can make

it smarter

› Using real time data and powerful

analytics tools enable you to optimize

anything from temperature and

lightning to tracking and movements

Offerings


Ericsson airport References

Backbone & Transmission

networkAENA, Spain

Billing & SettlementGuarulhos, Brazil

Airport SurveillanceMiami Dade Airport Authority, USA

Billing & SettlementGaleão International Airport, Brazil,

Billing & SettlementO’Hare International Airport, US,

Indoor CoverageMcCarran International Airport, Las

Vegas, USA

Indoor CoverageMalpensa Airport, Milan, Italy

Indoor CoverageNew Bangkok International Airport,

Thailand

Indoor CoverageAtaturk Airport, Istanbul, Turkey

Indoor CoverageKuala Lumpur International Airport,

Malaysia

Indoor CoverageSantiago de Compostela Airport,

Spain

Indoor Coverage

International Airport, Algiers,

Algeria

Indoor CoverageLisbon Airport, Lisbon, Portugal

Indoor CoverageBarajas Airport, Madrid, Spain


Ericsson UNLICENSED IOT Network for Low power sensors

© Ericsson AB 2016 | 2016-02-11 | Page 28© Ericsson AB 2016 | 2016-02-11 | Page 28


Ericsson UNLICENSED IOT Network for Low power sensors

© Ericsson AB 2016 | 2016-02-11 | Page 29

Portfolio & Services Benefit Experience

› Ericsson can offer managed Low Power

Wide Area Networks as a Service that

enables connectivity for all airport assets.

› By this airport can monitor temperature,

movements patters/tracking, utilization,

lighting, electricity, etc

› Using this unlicensed network an Airport can

take full benefits of IoT using Ericsson

analytics and visualization platforms

› A single LPWAN cell can cover a radius of

up to 35 km enabling low cost subscription

and devices/sensors with battery lifetime of

up to 10 years.

› Data speeds can handled from 200 bit/s up

to 11Kbit/s

› An Low power wide area network includes

Self serviced IoT cloud for device

management and Standard API’s

› As a market leader for LTE, Narrow Band IoT

and Unlicensed IoT we can guarantee the

best solutions for the specific purposes

› Ericsson also brings the capability to deploy

Unlicensed network anywhere in the world

and sharing the infrastructure cost between

users

› With open network API’s Ericsson enables

service innovation to third parties.


Thank You

the future of air transport

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