We have all heard the phrase that data is the new oil, but to leverage this great resource we need to ensure that there is a full-fledged strategy in place to take advantage of its benefits, and that’s where a data strategy comes in. COVID-19 has had a significant impact on global passenger traffic and according to International Civil Aviation Organization (ICAO), global passenger traffic declined by more than 60% due to the pandemic. There are still countries that are facing third and fourth waves, and the projections are that its going to take 3 to 4 years for passenger traffic to return to 2019 levels. This puts huge financial constraints on airlines and airports, and it becomes immensely important that each dollar spent, or each new program or project initiated gives the optimized return on investment and increases the economic value of the organization. This can be achieved through data-based decision-making, and data strategy is the core to it. This article will explore what data strategy is and how airlines and airports can go about developing and implementing a data strategy. Data Strategy Defined A data strategy is a common reference of methods, services, architectures, usage patterns, and procedures for acquiring, integrating, storing, securing, managing, monitoring, analyzing, consuming, and operationalizing data. In layman’s terms, one can say it deals with anything concerning data. A data strategy also helps organizations make informed decisions based on data, keep data safe and ensure compliance with various laws and regulations. While each organization’s data strategy will look a bit different, some guiding principles for an airline and airport may include: · The organization’s data support fact-based decision-making. · Data is comprehensively integrated. · Data is appropriately accessible and available to support timely consumption and insight generation. · Data definitions are consistent and are maintained and managed to support data users. · Data owners and data stewards are accountable and responsible for their domains. · Data is managed (curated, retained, archived, disposed) across its lifecycle. · Data is appropriately secured across its lifecycle. · Data is governed. Why Do Airlines and Airports Need a Data Strategy? The volume and variety of data that organizations have been collecting and producing have been growing exponentially and show no sign of slowing down. At the same time, business landscapes and models are evolving, and users and stakeholders are becoming more and more data-centric, with maturing and demanding expectations. The data strategy will serve as the mechanism for making good-quality and well-governed data readily available and accessible to deliver on the organization’s goals and objectives. It will also assist stakeholders like partner airlines and airports, ground handling companies, travel agents, cargo agents, security agencies, customs, and border controls, air navigation service providers, multiple levels of government, and civil aviation organizations to access the right data and to make the right decisions in the interest of the whole aviation ecosystem. The idea behind developing a data strategy is to make sure all data resources are positioned in such a way that they can be used, shared, and moved easily and efficiently. Data is no longer a by-product of business processing – it is a critical asset that enables processing and decision making. A data strategy helps by ensuring that data is managed and used like an asset. It provides a common set of goals and objectives across projects to ensure data is used both effectively and efficiently. A data strategy establishes common methods, practices, and processes to manage, manipulate and share data across the enterprise in a repeatable manner.
Key Components of a Data Strategy To ensure that the data strategy drives the organization’s vision and mission, some of the necessary components that it should include are: · Vision and Goals: Key outcomes that will be achieved through a data strategy, and clear-cut goals as to how a data strategy will help the organization achieve its objectives and create a sustainable competitive advantage. · Current State: Details of business operations and technical implementations that capture how the organization’s data operations function today. This is then used to evaluate airlines’ and airports’ enterprise-wide capabilities and maturity in the context of the data strategy vision. · Future state: The desired future state with tangible outcomes of how a data strategy will create a competitive niche for airlines or airports. · Governance Model: Data standards, procedures, and compliance criteria that the aviation organization must adhere to for regulatory reasons or any other standards that the organization wishes to adopt. Another key element is the methods and standards by which change across the data strategy scope is introduced, evaluated, confirmed, conformed into the iterative evolution, and communicated to stakeholders. · Reference Architecture: A good reference architecture considers existing or legacy standards and implementations and allows for new standards and innovations to be integrated. The key aspects of a data architecture include architectural design principles, domain and function model, design patterns, tool mapping, function matrix, and others. · Data Management Roadmap: This is one of the most important components of a data strategy. The roadmap relates to the planning, execution, and oversight of policies, practices, and projects that acquire, control, protect, deliver, and enhance the value of data and information assets. Key areas that need to be addressed in data management are data security, data quality management, data operations management, metadata, data modeling & design, data risk management, and others. Final Thoughts I mentioned at the start of this article that data is referred to as the new oil – a valuable resource that fuels economic development. The difference between gathering data and natural resources is that any organization can do it, and when the data is used to enhance organizational value and create a sustainable competitive advantage, it can set a business apart from the competition. Whether you are a small airport that serves only local routes, or a global airline with hundreds of millions of annual passengers. Data is all around us, and it is key to staying relevant and successful in the digital age. References DXC Technology, Defining a Data Strategy. https://www.dxc.technology/analytics/insights/143882-defining_a_data_strategy_an_essential_component_of_your_digital_transformation_journey Infotech.com. www.infotech.com