Looks like no architect was used

Size: px
Start display at page:

Download "Looks like no architect was used"

Transcription

1 1

2 2

3 Looks like no architect was used 3

4 Many different systems are involved in providing industry services, not all of which are known to airlines. 4

5 Overall objective Simplify processes, extend common standards and reduce operating costs, for IATA and the industry Multiple user systems mean more training, less common knowledge, less use of standards, less efficiency and more cost Back office means IATA s back office, and the industry s back office 5

6 The value-added part, the part everyone is in business for 6

7 The part we do because we have to, for legal or audit reasons. Effectively, all business to business relationships result in the same basic transactions: 1. Parties invoice for service delivered (or perhaps, present a statement) 2. Parties determine and agree the balance due to the invoicer, after offsetting any credits 3. Debtor makes settlement to creditor according to any terms defined in their agreement The only one that is intrinsically different is the retail one, which in 99% of cases is direct settlement at time of purchase IATA industry services maximize financial efficiency and leverage wide participation to benefit everyone. 7

8 8

9 9

10 11

11 Think holistically what are we trying to achieve overall? Are we doing it the most efficient way? Are we providing simplicity for our members and customers? Everyone should be able to work with everyone else with a common platform, with other services (settlement; currency conversion, etc) provided as an option to anyone that wants it, without needing different platforms and user interfaces to do it. 12

12 BSP is a sales reporting process The agent makes the sale, and the BSP reports it to airlines 13

13 In NDC the airline makes the sale, and has its own internal sales report It does not need another one from IATA What it really needs is the money collection service, and the agency management service, and other parts of the overall IATA BSP service, but not the data reporting part! SIS is the industry process for billing why not use it to bill agents, with an SMI for local settlement in the BSP? 14

14 15

15 Airline has to create RET files for input to DPC so that money can be collected from agents While this works, it could create duplicate records in the HOT file, which the airline will need to correct 16

16 A more efficient process uses SIS to drive a billing to agents for cash collection, without going through a second sales reporting process SIS posts a debit to the remittance and IATA settlement process. IATA would consolidate legacy and NDC collections from agents and remit funds as now 17

17 In the end, as the NDC migration completes, SIS would replace BSPlink, though this is likely to take many years. Agents would need to see in SIS what they generally see in BSPlink, and back-office reporting standards would need to be maintained for them. This process is consistent with a ONE Order process without tickets, when airlines migrate to it. 18

18 Revenue accounting remains, but simpler processes make it easier to run the process from an ERP system, without the need for a separate revenue accounting system, which is designed to support ticket-based activity Reissues, exchanges, proration, etc 19

19 Simplify airline adoption of EasyPay 20

20 Should we migrate CASSlink to SIS? Common platform for airlines, forwarders, handling agents, airports Travel agent can bill forwarder for ticket sales; forwarder can bill agent for cargo shipments, etc More consistency, more flexibility 21

21 New concepts, need to be evaluated for airlines. Could lead to new infrastructure and simpler processing, but proof of concept required. 22

22 The only constant is change - Heroclitus of Ephesus, c500 BCE Reduced energy = reduced hassle 23

23 On the left is a building in harmony with its surroundings On the right is something that looks ugly, and delicious, but is a trap! (see fairy tale of Hansel and Gretel) 24

24 25