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44 This chapter describes IoT solutions categorized according to the passenger or operations experience. It also describes strategies forâand barriers toâsuccessful IoT implementation. IoT in Passenger and Airport Operations Experiences Understanding the full potential of IoT and preparing for the opportu- nities and risks it brings require considering the airport process from two perspectives: ⢠Passenger experience. ⢠Airport operations experience. Case study findings illustrate touch points for interactions between key stakeholders and IoT-based solutions. Table 5 lists common IoT technolo- gies and solution sets found among the respective case study sites. These 10 IoT solutions rely on some combination of IoT technologies to transmit data from sensors across communication networks to central pro- cessing systems. However, the way in which the airports approached these solutions often varied: ⢠Some airports relied on third-party development of solutions and infra- structure. This was the case in the open cloud-based platform under development at LGW. ⢠Some airports focused on developing these solutions in-house. This was the case with the application programming interface (API) and appli- cation-based ground transpor tation and concessionaire services under development at SFO. Given this variability, comparing different IoT solutions at different air- ports can be challenging. To provide a full picture of the IoT solutions found in the case studies, this section examines the most common tasks at an airport using the two perspectives of passen- ger and airport operations experiences. Passenger Experience The passenger experience is divided into 12 stages that describe a passengerâs journey through an airport (Figure 17). Opportunities for implementing IoT solutions arise at all stages. For example, IoT way-finding applications could be relevant at the parking and arrival stage and the check-in stage. Table 6 maps each IoT solution to the stakeholders involved for each stage. C H A P T E R 4 How to Use IoT Source: MNBB Studio/Shutterstock.com.
How to Use IoT 45 IoT Solution with Description Case Study Site (Airport Code) Wi-Fi-based tracking via access points and proximity sensors CMH, MCO Smartphone application way finder synched with Wi-Fi-based proximity sensors, Bluetooth sensors, and traveler information systems MCO Bluetooth beacon sensor-based queue analyzer MCO Passive RFID baggage checking and routing ATL Sensor-embedded assets for tracking DFW, SFO Cloud-based API and application services with data exchange to offsite ground transport and onsite concessions stakeholders SFO Open cloud-based IoT platform and infrastructure LGW Airport collaborative decision-making and integrated information systems YYZ, SFO Biometric control system (BCS)-based check-in, security, and departure automation SIN Sensor-driven building management and asset maintenance systems SFO Note: ATL = HartsfieldâJackson Atlanta International Airport (Delta Airlines case study). Table 5. IoT-based airport solutions from case studies. Note: CBP = Customs and Border Protection Figure 17. Passenger journey map with IoT.
Table 6. Passenger journey stages, IoT solutions, and stakeholders.
How to Use IoT 47 Some IoT solutions apply to one point in the passenger journey map, while others apply across virtually the entire passenger journey map. Some IoT solutions engage a wide range of stake- holders, while others engage only a few. Airport ground staff involved in custodial, customer service, communications, IT, and operations factor heavily into many of the IoT solutions. Con- sequently, this group displayed more robust engagement and impact in the various IoT solutions across the passenger journey. The airport case studies provide examples of how IoT applications interact in practice across the passenger journey. MCO Case Study The MCO Airport App, a smartphone way-finding application, provides a seamless customer experience by integrating across multiple passenger and aircraft journey points. As a result, it draws on multiple stakeholders in the airport to provide input at each point. For example, airport parking facilities populate the map with location and cost information for the parking point in the journey. Vendors in charge of the queue analyzer populate the application with security wait times. Gate information and delay updates from airlines feed into the application across check-in and boarding gates. The MCO app also uses multiple IoT technologies to deliver information across the passenger journey points. The app uses Bluetooth beacons managed by Wi-Fi access points to assist with navigation and calculate wait times. This IoT solution faces the following barriers: ⢠Relying on passengers to download the application. ⢠Ensuring that all data collected from multiple stakeholders are accurate and up to date. SFO Case Study SFO uses an API integrated information system. It coordinates ground transportation service and revenue collection for TNCs like Uber and Lyft. Each time a driver leaves the TNC holding lot and heads to the terminal, the agency that manages the airport collects an access fee. Multiplied over the course of a day, a month, and a year, the fee adds up to increased revenue. GPS sensors on smartphones alert SFO when a TNC passenger crosses a geo-fence around the airport for departure drop-off, or when a person arrives outside baggage claim for TNC pickup. SFO is also exploring integration with existing Bluetooth bea- cons to help TNCs guide passengers and TNC drivers at earlier stages of the passenger journey. For example, the TNC app could guide passengers from their arrival gate to the correct door outside baggage claim where the TNC driver is waiting. SFOâs API-driven approach does not rely on an airport-based application but allows TNCs to use their own applications to exchange data with airport ground transportation managers. These managers monitor the TNC lot capacity, reduce TNC-based traffic congestion, and docu- ment permit-based access fees. For example, when the TNC lot is approaching full capacity, the managers close the lot to new TNC drivers and reopen it as open spaces become available. Future approaches include opening an API for use by concessionaires to support the airport activitiesâ passenger journey point. This will allow SFO IT to provide location and store information through a digitized map to any other interested parties such as airlines for use within their own applications. Where MCO focuses on integrating this information into a single airport applica- tion, SFO focuses on providing APIs as informationexchanges, enabling multiple stakeholders to use the data to improve how they deliver services at airports. One barrier to this solution is the assumption that other stakeholders beyond legally bound TNCs will be willing to connect their APIs to an SFO database to exchange information.
48 A Primer to Prepare for the Connected Airport and the Internet of Things Airport Operations Experience The airport operations experience is also divided into 12 stages that describe the airport oper- ations journey through an airport (Figure 18). As with the passenger journey, opportunities for implementing IoT solutions arise at all stages. Table 7 maps each IoT solution to the stakeholders involved for each stage. The airport case studies identified a more limited set of IoT solutions that impact aircraft operations than those that impact passengers. These include the following: ⢠ACDM. ⢠Passive RFID baggage tracking systems. ⢠Open cloud-based IoT platforms. ⢠Sensor-enabled asset and maintenance systems. BCSs, such as facial recognition and iris or fingerprint scanners, improve processing times in the passenger experience. These improved processing times also impact flights and departures, and thus airport operations. DFW Case Study Case studies provide examples of how these elements interact in practice. For exam- ple, DFW uses Bluetooth sensors to track janitor carts around the airport in order to better direct cleaning staff to high-traffic bathrooms and communal terminal areas. DFW also uses historical data to plan for high volumes of passengers. Note: PAX = passengers Figure 18. Airport operations journey map with IoT.
Table 7. Aviation operations journey stages, IoT solutions, and stakeholders.
50 A Primer to Prepare for the Connected Airport and the Internet of Things DFW currently uses wireless sensors to monitor ambient light within a building and feed that information to a BMS. When sunlight is high, artificial light is lessened, saving energy. By determining whether humans are present in a room, the same process can be used to control temperature. DFW was granted a patent for an âapparatus, system, and method supporting compliance with customs/border requirementsâ in 2016. This system wirelessly transmits traveler informa- tion to process passengers faster while filtering passengers who need additional screening. SIN Case Study SIN uses a facial recognition and BCS to enable automated passenger processing at self-bag drops, integrated border clearance, and self-boarding departure gates. The BCS allows centralized monitoring of various process points. Real-time closed-circuit television streams video from the gates to a central monitoring location, which enables real-time searches for persons on security watch lists. In this way, the system integrates biomet- rics and identity confirmation data with passenger processing and airport operations. SIN inno- vation was in part a response to the International Air Transport Association (IATA) Fast Travel program, which encourages self-service options in six areas of the passenger journey: ⢠Check-in. ⢠Baggage tagging and acceptance. ⢠Travel documentation checks. ⢠Flight re-booking. ⢠Self-boarding. ⢠Baggage recovery. (More information is available from Best, H. IATA Program Strategy: Fast Travel Program. International Air Transport Association, 2015.) Strategies for Successful IoT Implementation Airport operators seeking to implement IoT should do so only after developing a strategic implementation roadmapânot only to guide their implementation strategy but also to confirm the right set of implementation choices. While airports may achieve incremental gains by implementing one-off IoT solutions, they can only achieve true near-term success and long-term transformation by taking a holistic approach. This approach includes developing an IoT strategy that aligns with the greater airport and stakeholder goals. Tying IoT objectives to airport goals produces the following: ⢠Enables airport operators to make a business case for investment in IoT infrastructure and technologies. ⢠Promotes continued long-term investment in IoT and strategic development of an architecture that can accelerate IoT adoption. Development of the implementation roadmap is aided and acceler- ated by the IoT capability model framework. The framework allows an airport operator not only to self-assess the airportâs capability maturity that enables (and, in some cases, may accelerate) IoT implementation, but also to determine how and where IoT can help accomplish these Definition: Implementation Roadmap A strategic IoT implementation roadmap provides potential IoT solutions to specific business needs and a view of the infrastructure and capability requirements for those solutions. Definition: IoT Capability Model Framework The framework allows an airport opera- tor to self-assess the airportâs capability maturity that enables (and, in some cases, may accelerate) IoT implementation, and to determine how and where IoT can help the airport achieve these goals.
How to Use IoT 51 goals. The framework also considers the maturity of an airportâs network infrastructure and architectureâcrucial to supporting implementation and growth of an airport IoT ecosystem. The IoT capability model framework is then used in developing the following three precur- sors to the implementation roadmap, which provide the information needed to develop the roadmap itself: ⢠Stakeholder framework. ⢠Journey maps. ⢠Capability gap assessment. This section describes the following: ⢠The IoT capability model framework. ⢠The precursors of an implementation roadmap. ⢠The implementation roadmap. IoT Planning Process A Top-Down Approach to IoT Selection In planning for their desired IoT solution, airport operators may con- sider using a capability model that helps them select the right set of IoT capabilities based on the goals in their strategic plan. These goals become the primary motivator for choosing a specific IoT solution. Motivators such as new revenue result in a more complex IoT solution than those aimed at efficiency. As a result, an airportâs strategic plan drives the selection of a primary motivator, which in turn drives the infrastructure requirements needed for a successful IoT implementation. Airport operators can also use this model to identify future infra- structure needs to support their desired final system and can craft their investment business case accordingly. This assessment process can give airport operators a clear view of what they need to meet their goals with IoT. Then, in turn, airport operators can create a detailed imple- mentation roadmap to guide the step-by-step actions to bring the proj- ect to life. For example, the implementation roadmap will help airports identify the gap between what the airport currently has in place and what the airport needs. The steps taken to address this gap become the crucial first tasks on the journey to a successful IoT implementation. The airport also needs enabling technologies in place (i.e., infrastructure maturity) before it can expect to achieve differentiation or new revenue via IoT. For example, an airport may need robust passenger Wi-Fi capability before it can monitor and measure passenger queueing in real time. Table 8 shows how airports should consider their own IoT readiness and select appropriate solutions. After completing this table, an airport will have the ability to do the following: ⢠Consider the IoT capabilities that will help it achieve its strategic goals. ⢠Develop a customized IoT capability modelâbased on an individual airportâs situation and strategic goalsâthat describes its IoT capability strengths and limitations. ⢠Use the customized IoT capability model when creating an implementation roadmap, estab- lishing an implementable path to IoT maturity while also considering the required infrastruc- ture maturity. The details of how an airport can assess its infrastructure maturity and create an implementa- tion roadmap can be found in the section âImplementation Roadmap.â Delta Air Lines is pursuing IoT initiatives to improve its tech- nological excellence to man- age costs and drive revenue. Baggage handling is one of these initia- tives. Delta invested $50 million in RFID technology in 2016. DFW developed a 5-year strategic plan in 2016 to guide IoT initiatives in busi- ness development, employee engage- ment, operational excellence, and community engagement.
52 A Primer to Prepare for the Connected Airport and the Internet of Things A Bottom-Up Approach to IoT Selection Airport operators can also identify promising opportunities for IoT by examining the existing IoT solutions operating in their airport. This can help identify gaps where IoT may help opera- tions and also show where other stakeholders may have data an airport requiresâsaving the air- port time and money. Given the breadth and depth of IoT applications, the steps are as follows: 1. Use the information in this primer to consider the full spectrum of what IoT can do at an airport, regardless of whether IoT is currently being used in that way today. 2. Determine where the various stakeholders around the airport are currently deploying IoT solutions. With all existing IoT applications in view, an airport operator can determine the gaps that a potential IoT solution could fill. Each potential solution has infrastructure maturity require- ments associated with it, based on the number of stakeholders involved, level of technology needed, and so on. In evaluating the suitability of a potential IoT solution, an airport should consider the following: ⢠The actual cost of the device itself. ⢠The complexity and robustness of the data produced by the device. ⢠The accuracy, reliability, and timeliness required of these data. ⢠The network bandwidth and connectivity capabilities required. ⢠The primary motivator (efficiency, differentiation, or new revenue) that the solution helps to achieve. As in the top-down approach, this assessment of the infrastructure requirements for an IoT solution can help the airport gauge the feasibil- ity of a project. However, the map created by the bottom-up approach has an additional benefit: it can identify other stakeholders who may be able to provide some of the capabilities needed. Capabilities that are a priority for a specific stakeholderâbut not at the top of the airportâs listâmay move up the airportâs priority list when considered in the context of a holistic IoT strategy. Precursors to the Implementation Roadmap Three precursors provide information necessary to develop an implementation roadmap: ⢠Stakeholder framework. ⢠Journey maps. ⢠Capability gap assessment. SFO acts as an information broker and wholesaler of information-based services. SFOâs IT department uses an API development strategy to help improve the services provided by all stakeholdersâwhether internal, exter- nal, mission, or revenue oriented. All available data that stakeholders are willing to provide are put into a common data lake. These data can then be reassembled to create new service prod- ucts that improve business performance in terms of the passenger experience and optimized operations and maintenance. Table 8. Top-down IoT planning model.
How to Use IoT 53 Stakeholder Framework The value of IoT is determined by the volume and quality of infor- mation it handles. Typically, the more stakeholders that an IoT appli- cation meaningfully connectsâthe more information for aggregation, analytics, and useful applicationsâthe greater the value of that applica- tion to the airport. Therefore, it is important to understand the range of airport stakeholders. The stakeholder framework in Figure 16 details a holistic picture of the various stakeholders involved in day-to-day operations at airports that may implement, use, or manage an IoT solution. This framework also identifies stakeholder motivations for using IoT: revenue or mission focused, and airport or non-airport specific. For example, does the stakeholder (e.g., a retail tenant) use IoT to make money, or is the stake- holder (e.g., a public safety officer) interested solely in accomplishing an assigned mission? Can a stakeholder directly import an IoT solution from a non-airport use (e.g., HVAC in office buildings), or are the tasks of that stakeholder particular to airports and aviation? By answering these questions, the stakeholder framework offers not only a group of possible participants for any IoT project, but also crucial information about the needs of those stake- holders for IoT. Journey Maps After the stakeholder framework provides a list of who can undertake IoT at an airport, the next questions are where and how they can imple- ment IoT. That is, what are the common activities or locations within an airport where IoT can offer something new? With the many and frequent moving parts of airport operations, these processes can be simplified and summarized in two journey maps: one for passengers and (Figure 17) and one for operations (Figure 18). These maps can help airport operators think about where IoT exists, where it can be applied, and which stake- holders can apply it. Airports must examine the both journey maps as follows: ⢠Consider the passenger journey from arrival to departure. Define how the journey can be enhanced and how components can be connected. ⢠Consider the journey of airport operations, which includes the movement of aircraft through the airport. Define how the journey can be enhanced and how components can be connected. These operational steps lie at the heart of any airport, but since they are often not passenger facing, they may be overlooked in discussions of new technologies. Capability Gap Assessment A customized airport capability gap assessment (Table 9) can also be created that includes the steps in the aviation operations journey and the existing and possible IoT solutions for each stakeholder. The assessment can help airport operators identify potential opportunities for new IoT solutions and which stakeholders may be viable partners for those solutions. The assess- ment also allows airport operators to take a holistic approach to their IoT strategy and more quickly identify capability gaps or misalignment of their devices with their current or planned infrastructure. For example, this assessment can help airport operators review IoT options with a group of stakeholders who may be considering co-investment to address a mutual pain point or set of pain points. Displaying this information in an easy-to-understand format can accelerate solution selection and adoption. Definition: Stakeholder Framework A stakeholder framework identifies a holistic picture of the various stakehold- ers involved in day-to-day operations at airports who may implement, use, or manage an IoT solution. This framework also identifies stakeholder motivations for using IoT. Definition: Journey Map A journey map is a simplified and summarized process that identifies the common activities or locations within an airport where IoT can offer some- thing new.
54 A Primer to Prepare for the Connected Airport and the Internet of Things Implementation Roadmap Assessing the Airportâs Capabilities Whether using the top-down or bottom-up approach, airport opera- tors arrive at a potential IoT solution and a view of the infrastructure and capability requirements for that solution. The next step is to assess the current capabilities of the airport and understand where they may fall short of the requirements for the potential IoT solution. In this way, airport operators can begin to understand the technical and organiza- tional changes required for their projects to succeed. In short, airport operators assess their overall digital maturity versus the desired end state of a successful IoT implementation. This assessment should include at least the following criteria: ⢠The size and complexity of the data that the potential IoT solution will produce versus the current capabilities to house and analyze data. ⢠The communications and other infrastructure required for the potential solution versus what already exists at the airport. ⢠The cost of the solution versus the available funds. ⢠Stakeholder groups that can achieve benefits from the potential solu- tion versus the security and privacy procedures that must be in place to secure their cooperation or use. Assessing potential IoT solutions against these qualifiers can con- firm (or disprove) the overall fit of that device for the defined needs of the airport before moving to implementation. More important, the gaps between required and current capabilities in each of these criteria can guide the first steps to be taken when developing an implementa- tion roadmap. Definition: Capability Gap Assessment A capability gap assessment is a matrix that highlights the stage and stakehold- ers involved in a potential IoT solution, and then assesses an airportâs readiness to implement such solutions. Definition: Digital Maturity Digital maturity is the dual objective of meeting demands in the long run and making digital improvements a core business strategy. Digital maturity is a progression through early, developing, and maturing stages. For airports, this maturity can mean different things for each stage depending on the size and goals of an airport. For example, a general aviation airport has a differ- ent scale of digital maturity than an international hub. Table 9. Example capability gap assessment.
How to Use IoT 55 As technologies and connectivity expand and grow, stakeholders must keep pace to be able to operate and respond to new demands in the market. The implementation roadmap takes into account not only the desired end-state capabilities, but the processes, technologies, and stake- holders required to achieve this end state. Simply put, it offers tactical steps to accomplish the IoT vision. Working with Stakeholders Developing the implementation roadmap requires coordination and collaboration with key stakeholders who may either own IoT applications or receive data from applications once imple- mented, as well as those stakeholders who may achieve secondary benefits from these applica- tions. Functional and technical resources are key for roadmap development: ⢠Functional resources pertain to the strategic management processes of an airportâs IT organi- zation, such as budgeting and investment strategies, as well as the general state of current and planned infrastructure required to support IoT applications. ⢠Technical resources pertain to the current and planned technological (e.g., device and com- munication) infrastructure to ensure that selected IoT devices can be supported now and in the future. Stakeholder objectives and desired outcomes should be carefully consideredâand incorpo- rated if they align with overall priorities and strategyâduring the development of the imple- mentation roadmap and accompanying IoT strategy. A targeted and robust requirements-gathering effort among all stakeholders can accelerate roadmap development following these steps: 1. One-on-one and group meetings with an airportâs executive leadership team can help establish the overall vision. 2. Then, internal and external stakeholders can present their requirements through facilitated sessions, electronic surveys, and one-on-one interviews to maximize participation. 3. Upon aggregation of these requirements, airports can identify duplicative requirements, which can motivate co-investment by ecosystem stakeholders. 4. Last, an airport (or other IoT business owner) can prioritize functional capability requirements, align them with the most appropriate technology, and set the implemen- tation strategy. This creates a roadmap that airport operators and stakeholders alike can accept. This collective buy-in is crucial to success and may continue to motivate airport stakeholders to co-invest in the IoT ecosystem. Barriers to IoT Implementation Even with all the right tools and information, implementing IoT solutions can be a significant undertaking filled with new challenges for even the most mature organizations. These challenges can be broadly grouped as follows: ⢠Technological challenges. Technological challenges go beyond choosing the right hardware and software. These challenges concern safety, security, and privacy. While these challenges demand uncompromising solutions, many of the technological elements of these solutions already exist. ⢠Organizational challenges. Organizational challengesâsuch as finding the right business case, financing, or talentâare less hard and fast and require every organization to find its own solutions.
56 A Primer to Prepare for the Connected Airport and the Internet of Things This section describes both technological and organizational challenges as they apply to the following: ⢠Safety, security, and privacy. ⢠Technology and infrastructure. ⢠Talent. ⢠A compelling business case. ⢠Financing. Barriers to implement IoT solutions can seem overwhelming. However, with the right team, a thoughtful plan, and supportive buy-in, airports can implement IoT solutions to create a better, more profitable operation. Safety, Security, and Privacy In the aviation industry, safety is an inviolate standard. No new technology, no matter how efficient or cost saving, can be introduced if it compromises safety. That standard clearly applies to anything that goes on, in, or around aircraft. But in the modern world where digital information and physical devices are linked, safety can begin to have an even larger scope. When physical objects are connected digitally, the compromise of digital data can have real-world, physical consequences. Researchers have reported the ability to take control of the steering and acceleration of cars via wireless hacking and even access crucial systems on airplanes from in-flight entertainment systems (Greenberg 2015; McGoogan 2016). Therefore, as IoT is adopted, safety, cybersecurity, and data privacy are all increas- ingly linked. There are many known solutions to these issues. The same approach that has given aviation such an impressive safety record over the years can help secure IoT. Just as no technology is allowed to compromise the physical safety of an aircraft, no IoT adoption should be allowed to outstrip the ability of airports, airlines, and others to protect data. Using known, trusted technology vendors and designing IoT solutions with security and privacy in mind from the start are key to robust security. While such safeguards in design are a step in the right direction, air- port operators will need to be conscious of staying up to date with the latest privacy standards and being resilient in the face of inevitable dis- ruptions. No technology solution is immune to failures or downtime, so being able to continue operations and protect sensitive data of stake- holders and customers alike during such periods will aid long-term adoption of IoT. Airports will need to complete routine security screen- ings and privacy impact assessments and check regularly for updates to National Institute of Standards and Technology security guidelines and technology patches. Technology and Infrastructure The solutions to such significant problems as ensuring the safety, security, and privacy of IoT often fall on technology and appropriate infrastructure. However, even with a solid plan, the technology that supports IoT solutions can be extensive. Large IoT implementations involve numerous, disparate systems and devices, which all need to con- nect and operate together. Very few out-of-the-box IoT solutions for airports are currently on the market. This can make it challenging to determine what is needed to support an IoT ecosystem. CMH is beginning to encoun- ter privacy issues related to existing employer-employee and customer relationships as it deploys sensors capable of monitoring and tracking airport operations. While the airport is fully compliant with fed- eral and state regulations pertaining to data privacy, there is a corporate cul- tural factor to the introduction and use of any new technology. For example, the airport is able to track data associated with specific devices. If employees are using large amounts of data per day, the airport can suspend their access. But the airport is hesitant to act because this could raise issues for employee morale and labor relations, with negative implications for airport management.
How to Use IoT 57 There is no single IoT solution to serve the diverse needs of all airports. Airport operators need to procure different technologies to link together and create the IoT solution specific to their unique business needs. Some of the technologies may be new and customized. However, some elements will be legacy systems or networks. This linkage between new and legacy devices, business intelligence tools, networks, and so forth, may create compatibility challenges. In some cases, airports may find that opting for an all-in-one IoT platform may be the best option. These solutions are often offered by vendors or integrators and provide a common place for all IoT- produced data to be stored and analyzed. IoT can range from relatively light platforms run in the cloud to infrastructure-intensive, custom-built, on-premises solutions meant to serve as the entire digital backbone for an air- port. However, in other cases, even the lightest platforms may not be necessary. Some airports, especially those with simpler IoT needs, may be able to integrate different types of hardware and software as needed. This method requires open-source compliant hardware and choosing the right APIs so data of all types can be used by other programs. In all cases, to ensure interoperability, airport operators should consider not only the technical and protocol solutions that may allow devices to communicate, but also the data structure and integrity. Given that disparate data sets must somehow connect to support meaningful analysis, data need to be consistent for useable insights. A similar challenge may be found in the walls and wires of airport buildings themselves. Airports in the United States often feature aging infrastructure designed in previous decades that does not support todayâs digital technologies. For example, thick concrete walls and sharp angles in terminal designs are not conducive to good Wi-Fi signal propa- gation. Similarly, laying new cables or other technology upgrades in older facilities can be time consuming and require innovative solutions to avoid major disruptions to operations. Airport operators can look at other industries for ideas on how to work around crowded spaces or layouts that do not support connected networks. Designing IoT solutions with modular architectures can also ensure that upgrades can be made more easily and that such major infrastructure barriers do not occur in the future. Talent As IoT gains wider adoption, it can bring digital technology to new areas within the airport. As a result, the roles and responsibilities of airport employees may also change as they have more interaction with technology. To keep up with this trend, airports must hire and train employees strategically as jobs of all types require increased use of digital technology. To support IoT appli- cations, airports must address talent and skill gaps as a high priority. To do so, airports should account for talent in their strategic plan as follows: ⢠Implement training programs for existing employees. ⢠Expand hiring for new technical roles. ⢠Change the way leaders manage and organize work groups. Training Programs The single most valuable asset most airports possess is their workforce. As measured by annual expenditure, workforce costs are typically the largest single category of expenditure for airports, according to Airports Council North America. Therefore, training current employees in the new skills that IoT requires may be the most important action an airport can take Implementing New Technologies Each airport is technologically unique and relies on a combination of legacy and new systems. When implementing new technologies, older airports might present greater challenges than newer ones in terms of supporting digital technologies.
58 A Primer to Prepare for the Connected Airport and the Internet of Things to ensure IoT adoption. Given the speed with which technology can change, training programs should not be one-off events but rather a long-term program aimed at enabling workers to keep pace with the technical skills they need. Training is a large investment, and retain- ing trained workers is key to receiving a return on that investment. Data suggest that training programs themselves may aid in retention because employees value developing themselves and their careers (Kane et al. 2017). Additional Hiring for New Technical Roles Effective IoT implementations require teams that understand the power of IoT applications and the ramifications of adopting new technologies. Whether implementing a large or small IoT solution, airports will require a team of experts who bring the most value from the IoT solution, protect the airport from new risks, and manage the solutions over their lifetime. These objectives may require entirely new skills and roles that have traditionally not been a part of an air- port operations team. To address this, airports need to hire specialists equipped to work on such projects. These positions can include the following: ⢠Data scientists. ⢠Cybersecurity experts. ⢠Data architects. ⢠System engineers. ⢠Developers. ⢠IT managers. For example, YYZ hired data experts to understand and strategize applications of data captured daily. Some of these positions are new to airport IT teams but essential to the success of IoT solutions. The solutions are only as powerful as how well the application understands the data and protects the data from attacks. Leadership As the role of technology increases, the ability to lead technology innovation within airport departments becomes more crucial. Airport leaders must have the technology literacy and experience with technology solutions necessary to make informed decisions about IoT proj- ects. Like other public-sector entities, airports need to use innovative best practices to inform problem solving. Creating successful, resilient IoT solutions in a complex ecosystem like an airport requires leaders that understand technology applications, the hiring strategies that can create those applications, and ways to bring these core components together to produce effective solutions. As roles begin to shift, the smart technology within IoT can begin to take on some tasks previ- ously done solely by human workers. This creates a valuable opportunity for airport operators to shift talent to fill new, value-added roles interacting with customers rather than doing basic tasks such as filling out forms. One example of technology replacing labor in the modern world is the introduction of ATMs. With ATMs, bank branches were able to operate with an average of 13 tellers rather than the typical 20, enabling management to redeploy the freed-up tellers to IoT and New Hires As airports come to rely on technology innovations, strategically hiring new employees with technical skills (and training legacy employees) becomes a crucial component to getting the most value out of the IoT solutions implemented. SFO supports a data science intern program, in association with the City of San Franciscoâs intern program that engages with undergraduate and graduate programs from colleges and universities in the region. Skill sets include data science, software development, and business analysis. When interns come to the SFO IT department, they work on developing real solutions that are applied in the field. For example, the security group needed to be able to authenticate certain people that were given certain functions at the airport. Previously, it would have taken 1.5 years to develop a solution. Interns were able to develop one in 2 weeks.
How to Use IoT 59 expand geographically (Bessen 2015). For their part, bank tellers also shifted the nature of their roles. Tellers could move on to higher-value, relationship-driven tasks such as opening new accounts or issuing credit cards, while the machines handled the high-volume but lower-value tasks of dispensing cash and depositing checks. As a result, the number of bank tellers in the United States has increased over the past four decades, from 250,000 to about 500,000 (OâMarah 2016). IoT will likely have similar impacts at airports, taking on repetitive tasks and freeing up human workers to focus on activities that create value. In the case of airports, those value-added activities are likely to focus on customers: enhancing passenger experience by providing in- person custom care or working directly with cargo customers to ensure the right facilities and equipment are available at the right time. To take advantage of these shifts, airports need to create an agile workforce as roles begin to shift. If workers spend less time on repetitive tasks and move to more customer-oriented activities, they will need to have an end-to-end understanding of all the airportâs operations. If a customer has a question about baggage, an airport worker should be able to respond with the appropriate information rather than state, for example, âI work in scheduling.â This means the future IoT-enabled workforce cannot be siloed by function but rather will need significant cross-functional experience. So, in addition to the technical competence airport leaders must have for IoT, they must also manage work groups differently to take full advan- tage of IoT. A Compelling Business Case Return on Investment In every industry, concerns about return on investment (ROI) are among the top barriers to implementing IoT. Both upfront and continuing costs can vary widely, depending on the specific IoT application. Some IoT applications require significant capital investment in infra- structure, while others may use existing technology and cost only a change in business process. In addition, because IoT has few test cases, the ROI for any IoT investment has not been fully ascertained. The result of this uncertainty is that cost can quickly become a barrier to IoT implementation. However, this does not mean that airport leaders should avoid IoT or even only pursue those applications that have been proven elsewhere. Rather, careful consideration of the factors that drive costs and ROI in IoT can help leaders narrow down options and struc- ture their decision-making. Strategic Goals of the Airport To begin building a business case for IoT, an airport operator should look at the bigger picture: how IoT solutions and data fit into the broader strategy. IoT is often deployed in ad-hoc solutions throughout airport operations, fragmented across different departments and with limited centralized oversight. When deployed in this manner, IoT can certainly create benefits but is unlikely to have the desired transformative impact. On the other hand, as other industries have learned, when deployed as part of a centralized, strategic plan, IoT can support long-term goals and reshape the very core of how airports operate and engage with customers. Business Goal of the IoT Application Another important consideration is the business goal the airport wishes to accomplish with IoT. The answer to that question determines what technology is needed to gather, analyze, and act upon the data col- lected. The larger the business goal, the larger the scope and complexity Business Strategies and IoT Understanding how IoT solutions fit into the overall business strategy is key for air- ports to ensure these solutions contribute to their big-picture success. By tying an IoT project to a business goal, an airport can use data to generate dollars.
60 A Primer to Prepare for the Connected Airport and the Internet of Things of an IoT application. An IoT application with a larger scope will by definition feature a larger number of stakeholders and a wider variety of technological components. Understanding the business goal will pro- vide at least a rough idea of the upfront and life-cycle costs. Ultimately, tying an IoT project to a business goal is about using data to generate dollars. Whether IoT saves money by increasing efficiency or creates new revenue sources, the business case for IoT must rest on solid financials. However, it can be challenging to quantify the exact bottom-line impact of a specific change that improves efficiency. As a result, creating a compelling business case for IoT may also call for quantifying previously unmeasured aspects of airport operations and passenger experience. Financing Even with a solid business case that promises clear ROI, airports can struggle to find the upfront funding needed to begin a project. Given the thin margins of the aviation industry, finding extra dollars to finance an IoT project can induce fear in any airport executive. With new technologies such as IoT, fear can be as big a barrier as any tech- nical hurdle (Sniderman et al. 2016). Reducing uncertainty is a key method to encourage adoption of IoT and other novel technologies (Schmidt 2016). Questions to Consider for Financing Business Goal. The first question is: what is the business goal? Timeline. Financing is not just about the total amount of money involved. It is also about the time over which that money must be made or paid. As a result, another business question that must be considered before implementing IoT is: what is the required timeline to recoup investment? Stakeholders Needed. Since almost no company has all the technical components and expertise needed for IoT in house, even relatively simple IoT projects require a number of stakeholders. A third question is: how many stakeholders are involved? Having a clear idea of the number of stakeholders involved in the IoT project will help in estimating the cost of the IoT project. A Framework for Financing Decisions Information about the business goal, timeline, and number of stakeholders, in the context of ROI, can narrow the set of suitable financing options available to an airport. Figure 19 provides a framework of considerations that can help take the uncertainty out of financing IoT. The frame- work can help airports evaluate the needs of their IoT project and understand what financing options may be suitable for such a project. For example, an airport that seeks to improve the efficiency of waste collection can achieve that goal via internal methods. The airport employs or controls the collection of waste and so can easily implement a suitable IoT solution and change its business process based on its results to achieve the desired efficiency. Similarly, the technical solution needed will likely not be very complexâpossibly just a few sensors on wastebaskets and minimal software, which could be The Toronto Pearson Airport (YYZ) has begun quantifying aspects of its business to support IoT applications aimed at reducing wait times at check-in, security, and customs. Using concessionary data and wait time data, the airport staff manually calculates the monetary loss of passengers spending time in security rather than inside the terminal. From this information, the airport obtains a definitive dollar amount for every minute a passenger no longer spends in a lineâ a clear ROI for the IoT application that can create such time savings. Measuring baseline airport processes can clearly define the ROI of an IoT solution and help turn solutions from optional to necessary.
How to Use IoT 61 purchased or implemented for relatively little cost. The following are the answers to the three questions: ⢠What is the business goal? Efficiency. ⢠What is the required timeline to recoup investment? Short term needed. ⢠How many stakeholders are involved? Just the airport and potentially an IT service provider. With this information, the airport can determine that capital expenditure is not required for such an implementation, and that the project could be funded from operational funds. With this in mind, it would make the most sense to draw the funding entirely from the account where the efficiencies are expected to be recognized. This will ease payment; streamline governance and oversight; and make final tabulation of ROI for the project easier. Naturally, the considerations and recommendations are different for more complex IoT applica- tions. As the scope of the application increases, airports can consider splitting an operational expendi- ture across multiple accounts or investigating alternate payment models with technology and service vendors, such as pay as you go, pay as you upgrade, or payment based on measured outcomes. How- ever, if a project has a large enough scope or sufficient technical complexity that it requires significant upfront investment, airports may need to use capital expenditures. Even here, options vary widely depending on the amount of funding needed and the timeline in which it is needed, for example: ⢠Small amounts of funding may be most easily pulled from internal sources such as savings or working capital funds. ⢠As the amount grows, airports may wish to investigate capital markets via traditional lending, bond offerings, or even more novel methods such as pooled capital markets. ⢠For the largest and most significant capital needs, perhaps where IoT is a component of larger projects such as terminal building or integration with new mass transit, airports may wish to look into shared ownership arrangements such as public-private partnerships. While the array of these options can be widespread, by structuring them around the core questions about an IoT project, airport operators can limit the number of options. The result is a more manageable decision and one more likely to be taken with confidence. Figure 19. A Framework for structuring IoT financing options.
62 A Primer to Prepare for the Connected Airport and the Internet of Things As with any financial decision, the specifics of any individual case can vary. As a result, every airport operator should consult with the airportâs financial advisors before making any financing decisions. The recommendations of this framework are merely intended to serve as a decision-making aid to ensure that the set of options is manageable and that no suitable options are overlooked. This framework is a starting point from which to begin detailed analyses of what is right for a spe- cific airport at a specific time. As an emerging technology, IoT changes quickly. So, building flexibility and agility into any IoT project is impor- tant. This extends not just to technology but to financing as well if the business is to grow and evolve along with the technology. Focus IoT Solutions Focusing IoT solutions around specific, core strategic goals can make decisions regarding how best to plan, fund, and implement them easier.
