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Technology Disruption Renders Contemporary Solutions Obsolete and Spurs Transformation across Airport Processes
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A number of factors symbolize the struggle airports face in their journey to host the roughly 7 billion passengers that depart from and arrive at an airport every year. Capacity constraints, growing passenger footfalls, stagnant aeronautical revenues and competition necessitate a transformation in business models, operational processes and organizational activities by leveraging emerging digital technologies and transitioning from a flight operations-based business model to a passenger-centric one.Presently, global airports have acknowledged the importance of digitalization, although there are many barriers to implementation. Resistance to change is due to the disruption in current operations, cost of implementing digital technologies and the uncertainty over ROI. Additionally, many operators do not have clarity over the solution that best matches their need and are not presented with convincing business case values and metrics that showcase the transformational advantages of adopting digital technology.Frost & Sullivan undertook a global survey of airports in order to assess the current status of digital transformation programs within airports, challenges to implementation, customer requirements and future development plans. The research findings have been complemented with information from internally held airport databases, participation and discussions at international airport conferences as well as a number of interviews with major industry suppliers.This research service defines the relevance of digital transformation in the context of the airport, showcases the underlying framework to build an effective business case, describes the technology strategy that should be employed in the course of implementing digital initiatives at the airport and provides an overview of digital goals the airport can aim for as it transforms various processes.The research is segmented to give the reader clarity in understanding the features that will embody the ‘Airport of the Future’, building blocks that address the utilization of data, the current status of airports in adopting technology and their position in digitalization relative to the ultimate ‘Smart’ Airport. A segment is devoted to understanding airport IT budgets and IT spending forecasts over the next 7 years. The final segment of the research service provides detailed insights into the supplier ecosystem, major digital technology suppliers, and disruptive services and suppliers that are likely to lead to strategic mergers, acquisitions and partnerships in the industry.Monetization of generated data, expansion of product portfolio by tapping into undersupplied solutions like management of operations during disruptive events, and diversification into adjacent airport segments provide suppliers with good growth opportunities. While investing in new technology and data management solutions, suppliers have to understand the importance of system interoperability, data integration, standardization and collaboration among various airport stakeholders.
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