Reducing IT system implementation cost and complexity in airport construction

REDUCING COST AND

COMPLEXITY OF IT

SYSTEMS INTEGRATION IN

AIRPORT CONSTRUCTION

MSI @ GYD (Baku) Airport

March 11, 2015

By: Laurence Howell & Daniel De Cruz

2 | Presentation Title | Confidential | © SITA 2015

AGENDA

1. The Role of MSI

2. GYD (Baku) T1 Construction

THE ROLE OF

MASTER SYSTEMS

INTEGRATION


$543 BILLION OF PLANNED AIRPORT

INFRASTRUCTURE PROJECTS THE CHALLENGE IS KEEPING UP WITH DEMAND THAT IS INCREASING 5% PER YEAR

North America and Europe (4% Growth) – Renovations

• Improve/expand existing infrastructure

• Increase efficiency and throughput

• IT – Intelligence, automation, integration

Developing Counties (7% Growth ) – New Constructions

• New terminals & Expansions

• Concessions and privatizations

• Often airport operator and construction co. partnership

• Greenfield IT


Airport Investment

by Region

Africa

1% LAC

2%

LIKE AIRPORTS


IT systems used to be simple,

they aren’t anymore

IMPLEMENTING IT SYSTEMS HAS

BECOME ENORMOUSLY COMPLEX


“Project announcements will move from partial solutions to full IT solutions within the next 5 years.” Frost & Sullivan – Analysis of the global Airport IT Market (2014)

Technology Trades

MAJOR PROJECTS STILL TAKE A

FRAGMENTED APPROACH AIRPORT IT


• Program Office

• Procurement

• Commercial and contract mgmt

• Stakeholder management

• Quality management

• Health & safety management

• Construction Liason

• Financial Control

• Logistics

• Inspection & test management

• Integration (IT)

• Documentation and drawings

Common Trade Requirements for each work package

Results in loss of synergies - each package provide staff to

provide each function

Overall IT coordination falls with the construction or airport

KEY STAKEHOLDERS INTERESTS

ARE NOT FULLY ALIGNED

Construction Co

Project Management Focus

• Meet budget requirements

• Deliver airport on time

• Reduce Risk & complexity

• Lack Airport IT knowledge


Airport Operator

Operational Management Focus

• Best in class systems fit to operational needs

• Integration - other terminals, back-office

• Cost effective post build operations

• Revenue generation from IT

• Lack Construction knowledge

TREAT IT AS A SINGLE TRADE


• Removes multiple trade programs by centralizing them in one MSI organization saving

15-25% of program cost

• Allows common use of other suppliers across the IT systems

• Reduces coordination required between construction and IT reducing risk and delays

• Ensures the systems meet the needs of the airport post-construction by adding airport

governance to organization

RESULTS IS A MORE EFFECTIVE APPROACH

AN MSI PROVIDER CAN MANAGE

DIFFERENT INTERESTS


A SINGLE ENTITY TO MANAGE KEY DELIVERABLES AND ENSURE BOTH

CONSTRUCTION & AIRPORT REQUIREMENTS ARE MET

* An airport of 20 Pax/yr should get € 5-10M per year from selling IT services to tenants

CHOOSING THE RIGHT PARTNER

IS CRITICAL THINGS TO LOOK FOR...

• Understanding of airport operations to map airport operation onto IT requirements

• Strong Program Management skills in a construction environment

• Ability to provide consulting services to the airport

• Flexibility to work with other best-in class vendors systems, that maybe chosen by the

airport

• Willing to do procurement on 3rd party systems with an agreed management fee to

keep costs competitive

• Pre-integrated systems with other airport systems and with 3rd party systems reducing

complexity and cost


T1 Construction

@ GYD (BAKU) Azerbaijan


PROJECT BACKGROUND

• End Customer Azerbaijan Airlines

• Heydar Aliyev international Airport – Baku – Azerbaijan

• New Airport (6M pax, 65,000m2,), New ATC, New

Presidential Terminal

• A modern airport linking West to East

• SITA Engagement Q4 2012

• On site February 2013

• Terminal Opening April 2014


PROJECT BACKGROUND

• Customer Azerbaijan Airlines

• Heydar Aliyev international Airport – Baku –

Azerbaijan

• New Airport (6M pax, 65,000m2,), New ATC,

New Presidential Terminal

• A modern airport linking West to East

• SITA Engagement Q4 2012

• On site February 2013

• Terminal Opening April 2014


SITA SCOPE and SOLUTIONS

• Single company responsible

˗ Design, Supply, Install, Test

˗ Commission, Train and handover

˗ Project Management,

˗ Coordination, QA & QC

˗ Integration of all IT airport systems

• Supply

˗ CUPPS, CUSS, FIDS, RMS

˗ AODB, BRS, Message Distribution

˗ Common LAN, WLAN, VOIP,

˗ VDGS + GOS, Worldtracer Kiosk,

˗ Passenger Flow at Security Check Points

KEY CHALLENGES


CHALLENGES

• Major Design Changes

• Delayed construction that required fast

tracking

Impact to IT Implementation

• Contractors with limited Airport Experience

• Stakeholder Changes

• Informal Governance Structure

• One common network facilitating all IT and

Security Infrastructure

• Construction liaison in terms of preceding

trades. Allowing for on time installation

ADDRESSING THE CHALLENGES


Addressing the Challenges

• Key was coordination, communication and control

between all parties

• Flexibility and the ability to adapt

Off Site Testing

Airport Management System Implemented “Off Site”

• Clear organisation structure with well defined roles and

responsibilities

• Clear internal and external governance model

• Supplier Management and Inter Trade Coordination

• Trusted Advisor

SUMMARY “IN BRIEF”

• No Two Projects are the same

• One Single Supplier

• Construction and Airport Knowledge

• Completed On Time

• Positive Construction Company

and Customer Feedback



THANK YOU

Reducing IT system implementation cost and complexity in airport construction

Technology

airport construction

airport operations

airport postconstruction

airport investment

global airport

airport governance

gyd baku airport

fragmented approach