Create sustainable value in four areas

Migrating to a new generation Amadeus Airport Management Solution enables you to create value in the following four areas:

Solution value

• Use new added-value features to transform your business and core processes and achieve both short and long-term benefits
• Take into account productivity gain, cost reduction, direct revenue increase and indirect revenue increase due to higher customer loyalty or better business agility

Common platform value

• Integrate faster, better and at lower cost with your airline partners who are already using the Amadeus common platform

IT services value

• Move to competitive IT variable costs
• Benefit from Amadeus community development for free
• Enjoy superior service performance leading to lower cost of service outage

Network services value

• Benefit from Amadeus economies of scale to cut some communication costs

The opportunity to create value depends on both the airline and the handlers level of sophistication, the scope of the solution, the IT model and current communication network.

Some of this value is immediately captured in your bottom line (eg, network services value, part of the solution value), and some of it requires a ramp-up phase (up to three years, for example, for revenue increase based on customer loyalty improvement).

Minimise the cost of change

Achieving a technology enabled transformation entails some significant cost of change:

• Project management cost
• Specific development costs
• Significant training cost for all impacted employees
• Consulting cost (to build the transformation map and re-design the core processes)
• Potential cost of delay (solution, project delivery) or failure
• Potential cost of development underestimation

Leveraging its unique experience in transforming airlines and migrating their critical systems, Amadeus can help you control and minimise these costs:

Project management

• Amadeus can deliver faster migration
• Amadeus provides experienced project management resources, which can help to reduce the required project resources

Specific development

• The growing number of airlines, airports and ground handlers joining the Amadeus common platform and community developments mean fewer specific development requirements

Training

• Amadeus' new generation IT solutions are designed as much as possible around workflows and intuitive graphical user interfaces, generally cutting at least half the required training time on a new system

Consulting

• Amadeus' expertise in technology for the air transportation industry and strong understanding of how our solution can add value to your business enables you to reduce your need for consulting to implement technology enabled transformation
• Amadeus also provides cost-effective consulting services through a team of consultants that offers expert solution knowledge

Risk of delay or project delivery failure

• Amadeus' new generation IT solutions are already developed and in production
• Amadeus' unique expertise in migration projects guarantees the lowest level of risk in terms of implementation or delay

Risk of cost underestimation

• Amadeus' new generation IT solutions are already available
• Amadeus' expertise and volume of development minimises the risk of underestimation

The cost of change depends on the companies size and current business environment, as well as the scope of the Amadeus solution.

Amadeus value calculation methodology

Over the years, Amadeus has identified a need among our current and potential customers to understand in detail the impact that a new generation IT solution can have on their business before making a sound decision.

All too often, the only clear element is the price while the value of a proposed solution is not fully quantified.

That's why Amadeus has developed and successfully applied with numerous companies a unique proprietary value calculation methodology. This allows the organisation to understand in as little as a few days the value of migration to the Amadeus platform and to create an initial financial benefit estimate.

Amadeus value calculation methodology is based on the following principles:

Quantification of all benefits

• To understand the business impact and prioritise solution modules or transformation effort
• Even if some benefits might be difficult to quantify (like revenue impact of an increase in customer satisfaction)

Distinction between two levels of value

• The secure value to retain in a business case (limited to the direct impact from Amadeus solution and to benefits easily quantifiable)
• The total value to view the overall longer-term benefits of the transformation project

Analysis of the value for the four areas

• Solution value
• Common platform value
• IT service value
• Communication network value

Value calculation for each significant module or item

• Clear assessment of the added value compared with the handler's current situation
• Quantification, taking into account business parameters
• Value estimate per module, enabling the organisation to eventually make a purchasing decision

Overall value analysis

• Aggregation of the overall value and adjustment
• Cross check with overall business figures
• Value calculation report
• Further simulation

Amadeus can offer value calculation workshops to any airports, airlines or ground handlers that want to strengthen its business case and make its decision based on a detailed assessment of the value for money of the project.

Amadeus has successfully run these workshops with numerous customers and prospects of all sizes, business environments and geographies. These workshops deliver a very high level of satisfaction, as they also enable airlines to save a lot of time on project evaluation.