Why Airlines Need Digital Transformation

When the Wright brothers flew their first plane they never imagined that after 100 years this industry will be one of the biggest and most complex. Initially Airlines were a part of luxury transportation but nowadays it is a necessity for most. Every day thousands of airplanes are flying and millions of passengers are reaching their destination.

To streamline the whole process, all departments of airlines should work synchronously and efficiently. There are a lot of variables involved to execute one task efficiently with a very little margin for error. The airline industry is the best example of machines and humans working together in harmony, which allows tasks to be completed quickly and accurately without any errors. The Airline’s biggest challenge is finding ways to reduce costs while still providing quality service.

Airline industries need to put forward the best process in place in order to remain competitive and profitable. All processes, including, operational structure, route network, fleet size, and pricing strategy need to be digitized and transparent to compete against their competitors and continue to be cost-effective.

Successful Adoption of Digital Transformation is the key to success to Airlines business.

Digital transformation allows Airlines to enable data efficiently and securely. It also helps in reducing the cost of operation and increases the efficiency.

Here are few area where Digital Transformation is helping Airlines to work efficiently and cost-effective .

Market & Partner Data – The Covid pandemic was a big disruption for the Airline market. Tracking and monitoring real-time Covid data after the pandemic is very important in managing your operation efficiently. Airlines work with their partner to get Market Data, Events, Weather, Traveler In-Flux, Reviews, and External Traveler Information for their operation. Integration with partner data is very important to get contextual insights for airlines.

Travel  Data – To run the airline industry efficiently their passenger System of Record needs to integrate efficiently. Those system are not limited to  Passenger service system (PSS),Computer reservation system ( CRS), Global distribution system (GDS), Enterprise Resource Planning (ERP), Traveler Profile, Fare, Schedule, Availability, Preferences, Assets, and Distribution with Offers & Orders (NDC).

Intent & Sentiment Data – Social Media Platform is one of the invaluable tools for airlines to stay ahead of their competitors. By leveraging Sentiment & Intent Behavior analysis on social media platforms, airlines can better understand passenger preferences and tailor services accordingly. This helps the Airlines build customer loyalty and increase profits over time.

Customer & Services Data – Managing historical customer and service data help airlines to get their customer sentiment and preference. These data includes Demographic and Identity Data, Profile, Cases Contact Center History, and Service Interactions data. This data helps airlines to understand passenger preference and provide better service. 

Marketing & Loyalty – Digital Transformation combining predictive analytics and human-centric design to create a more personalized experience to drive growth in loyalty, satisfaction and incremental revenue. It also helps in marketing to track Campaign Metrics, Digital Footprint, Experiential Targeting, Audience Segmentation, Digital Marketplace. 

Devices & Location Data – Airlines operation depends on IoT Sensor Data, Telemetry, Mobile, Voice, Geolocation, Location-Based data. This Intelligence based data is revolutionizing procurement through real time decision making. Allow the operational team to know the exact location of goods at any given time.

These are the big impact of digital transformation in airlines industries

  • Quicker time to market
  • Smooth Transitioning
  • Enhanced Business Agility
  • Reduce cost
  • Innovate and drive operational excellence   

AIR India Deal: Catalyst for Aviation Industries

The COVID-19 pandemic caused total disruption in the airline industry. The aviation sector struggled to survive, with 80 percent of flights canceled during the pandemic. Whole travel & hospitality industries were struggling with pandemic slowdown. Before the revival from pandemic Russia-Ukraine war affected the aviation industries. Oil and maintenance price increased which reduced profit margin for aviation sector. So many routes got canceled or restructured airline routing. On top of that, Airlines canceled thousands of flights as a massive winter storm and bitter cold swept the U.S., which directly impacted airlines revenue. Remote work is also impacting aviation industries. Most company travel related work reduces tremendously and it is directly impacting aviation industries.

This disruption directly impacted airlines manufacturers and supporting industries. Aviation Modernization getting impacted with these aviation disruption. Budget cuts are also slowing down digital transformation of airlines industries. Aviation industry leaders were expecting recovery would be very long and it would change forever.

But in the economic slowdown and pandemic affected aviation industries, Air India deal with Boeing and Airbus came with new hope for aviation industries. This deal will help to re-energize and rejuvenate whole aviation industries. This deal is going to impact at least 3 continents and will generate millions of job opportunities. This will help to stop the economic slowdown and restart the economic engine. Air India is going to buy 460 aircraft from two main aircraft manufacturers. This is the 2nd largest aircraft order in the history of global aviation. It is called the mother of all deals in aircraft industries. Total list price for these deals are approx. 80 billion dollars. These deals are splitted between two aircraft manufacturers, Boeing and Airbus. Boeing is providing a total 220 aircraft and Airbus will deliver 240 aircrafts. This mega deal is so huge that it is elevating India’s image and putting India as a bright spot in the whole world economy.

Now lets see how this deal is going to affect the Aircraft Manufacturer, Airlines and Airport sector.

Aircraft Manufacturer
  1. Parts traceability for Airbus and Boeing – Boeing Aircraft parts manufacturers spread across approx. 3 North America countries and 44 US states. Similarly Airbus parts manufacturers are  spread across  approximately 10 European countries. This will lead to generating millions of jobs in these places but the big challenge is to manage part traceability and assembly of these parts. Materials management team picks and packs parts into kits to be delivered to the parts assembly working area in the aircraft factory. Create a robust system for real-time visibility of these parts for quick collaboration and decisions.
  1. Certification Compliances traceability  – Each small aircraft part is a very critical item for aircraft assembly. All these parts need to be certified with the external Federal Aviation Administration (FAA) for US and European Union Aviation Safety Agency (EASA) for European countries. Tracing and management of these certifications is one of the most important  activities for Aircraft industries. This system should be highly visible and audited for aircraft safety.
  1.  Cross Team Visibility and Collaboration –  A lot of people, both external and internal are working for one aircraft. It also involves a number of systems and processes to deliver one aircraft. People, systems and processes need to come together to deliver and maintain aircraft. This whole collaboration needs to be highly transparent and visible to deliver aircraft efficiently.
  1. Delivery and Service – Safety and documentation is a very important activity for any aircraft delivery. All steps and processes need to be properly documented and executed through respective teams. Any of these missing steps/processes  lead to delayed aircraft delivery. 
Airlines

This mega deal will generate all kinds of  job opportunities within India and across the world wherever Air India will fly. This deal will also impact the Air India system and process.  

  1. Airlines Route management – More aircraft for airlines, more robust and transparent route management system. Any of these systems delay airline operation. You also need to collaborate with your partner airlines route for high profit margin. These systems and processes need more people across the world wherever Air India airlines will fly. Digital transformation will also help to transparent the whole system and increase operational efficiency.
  1. Aircraft Maintenance and parts management –  Aircraft maintenance and part management is a big challenge for airlines. Like Air India buying more aircraft it will need a more transparent maintenance  system/tracking, people and airlines hubs. Airlines also need large hangers to maintain their aircraft. 
  1. Employee management and experience – More aircraft, more routes and more employees to manage the whole airline system. This includes more corporate employees, In flight crews and ground maintenance associates  recruitment, onboarding & retention. 
Airport 

An airport is a massive business and has many verticals on its own. An airport as not just the spaces you see, such as departure, arrivals hall, duty free, security, etc. but an airport is a complex organization with many parties coming and going, the airport, retailers, service providers on the airside, the airlines, the cargo & warehousing spaces, aircraft MRO, fueling, as well as day authorities such as air traffic control, customs for people & Cargo, security, fire & emergency services, etc.

Since Air India is increasing its fleet , It will also impact airport operation and process. It will bring more opportunities to the airport.

  1. Efficient passenger process – Airport customer service, passport control, boarding/arrival, airport gate management comes in this category. It will be heavily impacted with more flights from Air India.
  2. Airport Safety, Security and health management – With this deal, more travelers will arrive and depart from the airport. To keep airports safe and secure, airports need more resources and their system transparent. They need to enable touchless solution to create perceived security around COVID-19
  3. Baggage operation – Baggage operation and management  is also a very important process for airports. This process will also get heavily impacted with this new  Aircraft purchase.

Retail 2023: The new Trend

From the last few years COVID pandemic has changed the whole Retail business spectrum in ways we could have never imagined before. Exploring new and accelerated trends gives us an indication of how this evolution will continue into the new normal. This pandemic also leads to closure of countless stores and bankruptcy. After surviving from the pandemic, inflation is hard hitting Retail business. Supply chain is also getting impacted with the Russia-Ukraine war. Now experts are saying that the greatest risk facing global supply chains has shifted from the pandemic to the Russia-Ukraine military conflict and the geopolitical and economic uncertainties.

With all this news for Retail industries, customer expectations and habits have shifted. Customers expect engagement on values to go beyond point of purchase to creating moments of engagement across the full journey. Now retailers have been compelled to find new ways to connect with consumers in a personalized and tailored way in-store as well as online to make a more intuitive experience. Retailers are going more digitized in their approach to connect with customers.

This is how retailers are moving forward to reach a wider customer base and lure their product. 

  1. e-commerce Technologies – In pandemic time if your business presence was not online then you will be out of business quickly. So Retailers have increased investment in e-commerce technologies. They increased the budget for digital transformation. To get ahead of competition, they are offering a mix of digital and physical experiences ahead of their rivals. Retailers are also focusing on customer service and providing seamless service experience across messaging, web and mobile channels. Retailers are creating a cohesive and connected customer shopping journey with e-commerce and unified data across systems.
  1. Infrastructure– Retailers are upgrading their instore as well as online infrastructure. They are replacing traditional store signs with digital signs and screens to display ads and videos. They are also adding kiosks and self-checkouts within the store. This is making the shopping experience more convenient and personalized. Shoppers are in and out, without having to make small talk or wait in queues. Deployment of in-store technologies double in a year.
  1. API-first and Cloud – Retailers are focused on Composable architecture. Composable architectures are key players to  implement successful digital transformations and most engaging digital experiences. 2023 will be a year of focus for retailers to remove entirely their legacy monolithic architectures. API-first and Cloud based solutions help retailers to switch to new functionality without the need for significant investment and resources. This will reduce the incredible amount of time and cost of ownership of a fraction of legacy technologies. API-first connectivity helps customers to shop anytime, anywhere and anyhow
  1. Customer experience – Customer experience is the one the main focus for Retailers this year. The focus of customer experience is online as well as in store experience. Retailers are providing customers enhanced assisted-selling experiences through assisted Selling. They are also focusing online customers through distributed OMS (Order Management System), Omni-channel and remote Selling. Retails are preparing for next level customer experience through loyalty(customers long-term relationships), native App and AI based digital fitting room.
  1. Merchandising & Supply Chain – Retailers are providing real time tracking and inventory information to their customers. They are also providing purchase incentives to their loyal customers so that they can keep engaging customers for their products. Retailers are also focusing on upgradation of warehouse management (WMS) to fulfill in-store as well as online orders.

Recession: Industry Impact

Recession prospect is certainly very scary. World over economies are contracting. The recession has had a significant impact on the global economy, leading to decreased GDP growth and an uncertain future for many industries. The IMF cut its forecast of global GDP for the year to 2.7% and for the US GDP growth forecast is 1.4% .China and India are key players for the world’s supply-chain requirement. Post COVID pandemic China is still struggling to provide supply-chain needs to the world and India is still in process to build supply-chain needs. Escalating Russia-Ukraine war and geopolitical tension is disrupting the world’s supply-chain. 

Due to all these issues,Inflation is very high across the world. The inflation rate depends on the balance between aggregate supply and aggregate demand within the economy. US inflation consumer prices rose 7% approx. in December 2022 from a year ago. Inflation driving up vendor price beyond budget expectation. The US Federal Reserve is increasing interest rates in the most aggressive way to curb this inflation. 

No industry is completely insulated from a recession, there are always opportunities within even the most impacted industries. The Impact of recession  is not equal for all kinds of industries. Most impacted industries are directly proportional to consumer sentiment, consumer basic requirement and consumer spending. Least impacted industries are not directly proportion to user sentiment and it is also supported by external system.

Here is worldwide recession industry impact index

In the above chart, most impact industries are consumer, consumer services and transportation. After COVID-19 this industry is cautiously optimistic about the return of travel and tourism. But  inflation and a volatile market are pulling these industries down. Loyalty programs are weakening between brand and customer. Recession industry impact index is average 8.5/10 approx. Hospitality and Airlines industries are trying to optimize their process to mitigate their risk. They are cutting routes, reducing flights, and, in some cases, shutting down offices to help reduce expenditures.

Retail and Manufacturing industries and also getting impacted with current inflation and escalating geopolitical tension. Clearly the industry has experienced unprecedented supply chain pressures and disruptions over the past two years; Global disruptions – such as the Russia / Ukraine war – continue to impact manufacturing supply chains, thereby increasing costs and delays. Recession industry impact index for this industry is 7.5/10 approx. Retail and Manufacturing industries are working on omni-channel commerce platforms, optimized operations, and omni-channel order orchestration and fulfillment to mitigate their risk. They are reducing overhead cost and going for digital.

The Federal/Central Government is the most recession proof industry. It needs to make ongoing investment to keep the country running. Critical infrastructure management, border, customs and immigration management are key activities the government can not ignore and reduce investment. Even in COVID-19 pandemic time influx of federal funding and ample emergency funds put state and local entities in recession-ready shape. Recession industry impact index for this industry is 1/10 approx.

API Security

API is a key component of digital transformation. API is the interface of your legacy and SAAS data. The goal of APIs is to facilitate the transfer and enablement  of data between your system and external users. APIs are typically available through public networks like the internet to communicate to external users and expose your data into the public domain.

Since your data is exposed into the public domain through APIs, It can lead to a data breach. APIs can be broken and expose sensitive personal as well as company data. An insecure API can be an easy target for hackers to gain access to your system and network. Rise of IOT devices and usage of APIs by these IOT devices, APIs are now more vulnerable. 

According to owasp, these are 10 main API vulnerabilities.

  1. Broken Object Level Authorization – Expose endpoints that handle object identifiers, creating a wide attack surface Level Access Control issue.
  2. Broken User Authentication – Authentication mechanisms are implemented incorrectly.
  3. Excessive Data Exposure – Developers  expose all object properties without considering their individual sensitivity
  4. Lack of Resources & Rate Limiting – APIs do not impose any restrictions on the size or number of resources that can be requested by the client/user, lead to Denial of Service (DoS) attack on APIs
  5. Broken Function Level Authorization Complex access control policies with different hierarchies lead to authorization flaws.
  6. Mass Assignment – Without proper properties filtering based on an allowlist, usually leads to Mass Assignment.
  7. Security Misconfiguration – Misconfiguration or lack of Security configuration  is commonly a result of insecure APIs
  8. SQL Injection SQL Injection occurs when untrusted data is sent to an interpreter as part of a command or query.
  9. Improper Assets Management – APIs tend to expose more endpoints than traditional web applications lead to improper expose APIs.
  10. Insufficient Logging & Monitoring – Insufficient logging and monitoring fail to find your vulnerability and broken integration.

How to mitigate API security risk?

  • API supports secure sockets layer (SSL), transport layer security (TLS), and Hypertext Transfer Protocol Secure (HTTPS) protocols, which provide security by encrypting data during the transfer process.
  • Apply Basic Auth minimum with API or  if you want to more secure your API then enable 2 way authentication through OAuth framework . 
  • Apply Authorization on each API resource to more control on API security through external Identity and access management provider (IAM).
  • Use encryption and signatures to all your API exposed personal and organizational sensitive data.
  • Apply API throttling through API manager to control number of user access per API (Rate Limiting).
  • Implement best practice of exception handling on your APIs to hide all your internal server and database information to mitigate SQL injection security risk.
  • Use Service Mesh to manage different layers of API management and control.
  • Audit your APIs and remove all unused API from your API catalog.
  • Add proper logging, Monitoring and Alerting on your APIs to keep track of your APIs activity.

Conclusion: APIs are a critical part of modern AI, mobile, SaaS, IOT and web applications. APIs Security should be the main focus on strategies and solutions to mitigate the unique vulnerabilities and security risks .

Mule 4: Ease Your Integration Challenges

Much awaited Mulesoft 4 was officially announced in Mulesoft Connect 2018 in San Jose. When Mulesoft was born, it was really to create software that helps to interact systems or source of information quickly within or outside company. So the speed is an incredibly important thing over the years to develop and interact within systems. Need of speed for application and development hasn’t change drastically over the years but needs and requirement of customer’s application have changed. The integration landscape has also magnified. There are hundreds of new systems and sources of information to connect to, with more and more integration requirements. This integration landscape gets very messy and very quickly.

            Mule 4 provides a simplified language, simplified runtime engine and ultimately reduces management complexity.  It helps customers, developers to deliver application faster. Mule4 is really radically simplified development. It is providing new tool to simplify your development, deployment and management of your integration/API. It is also providing a platform to reuse Mule component without affecting existing application for faster development. Mule 4 is evolution of Mule3. You will not seem lost in Mule 4, if you are coming from Mule3. But Mule 4 implements fewer concepts and steps to simplify whole development/integration process. Mule 4 has now java skill is optional. In this release Mulesoft is improving tool and making error reporting more robust and platform independent.

Now let’s go one by one with all these new Mule4 features.

1. Simplified Event Processing and Messaging — Mule event is immutable, so every change to an instance of a Mule event results in the creation of a new instance. It contains the core information processed by the runtime. It travels through components inside your Mule app following the configured application logic. A Mule event is generated when a trigger (such as an HTTP request or a change to a database or file) reaches the Event source of a flow. This trigger could be an external event triggered by a resource that might be external to the Mule app.

Mule 4 Event flow

2. New Event and Message structure — Mule 4 includes a simplified Mule message model in which each Mule event has a message and variables associated with it. A Mule message is composed of a payload and its attributes (metadata, such as file size). Variables hold arbitrary user information such as operation results, auxiliary values, and so on.

Mule 4 message

Mules 4 do not have Inbound, Outbound and Attachment properties like  Mule 3. In mule 4 all information are saved in variables and attributes. Attributes in Mule 4 replace inbound properties. Attributes can be easily accessed through expressions.

 These are advantages to use Attributes in Mule 4.

  • They are strongly typed, so you can easily see what data is available.
  • They can easily be stored in variables that you can access throughout your flow
Example :
#[attributes.uriParams.jobnumber]

Outbound properties — Mule 4 has no concept for outbound properties like in Mule 3. So you can set status code response or header information in Mule 4 through Dataweave expression without introducing any side effects in the main flow.

Example:

 
<ee:transform xsi:schemaLocation="http://www.mulesoft.org/schema/mule/ee/core
 http://www.mulesoft.org/schema/mule/ee/core/current/mule-ee.xsd">
       <ee:message>
         <ee:set-payload>
           <![CDATA[
                %dw 2.0
                output application/json
                 ---
                 {message: "Bad request"}]]>
           </ee:set-payload>
         </ee:message>
    <ee:variables>
       <ee:set-variable variableName="httpStatus">400</ee:set-variable>
    </ee:variables>
  </ee:transform>

Session Properties –In Mule 4 Session properties are no longer exist. Data store in variables are passes along with  different flow.

3. Seamless data access & streaming – Mule 4 has fewer concepts and steps. Now every steps and task of  java language knowledge is optional. Mule 4 is not only leveraging DataWeave as a transformation language, but expression language as well. For example in Mule 3  XML/CSV data need to be converted into java object to parse or reroute them. Mule 4 gives the ability to parse or reroute through Dataweave expression without converting into java. These steps simplify your implementation without using java.

Mule 4 Data Access

4. Dataweave 2.0 — Mule 4 introduces DataWeave as the default expression language replacing Mule Expression Language (MEL) with a scripting and transformation engine. It is combined with the built-in streaming capabilities; this change simplifies many common tasks. Mule 4 simplifies data iteration. DataWeave knows how to iterate a json array. You don’t even need to specify it is json. No need to use <json:json-to-object-transformer /> to convert data into java object.

Mule 4 vs Mule 3 flow comparison

Here are few points about Dataweave 2.0

  • Simpler syntax to learn
  • Human readable descriptions of all data types
  • Applies complex routing/filter rules.
  • Easy access to payload data without the need for transformation.
  • Performs any kind of data transformation, normalization, grouping, joins, pivoting and filtering.

5. Repeatable Streaming – Mule 4 introduces repeatable streams as its default framework for handling streams. To understand the changes introduced in Mule 4, it is necessary to understand how Mule3 data streams are consumed

Mule 3 data streaming examples

In above three different Mule 3 flows, once stream data is consumed by one node it is empty stream for 2nd node. So in the above first example, in order to log the stream payload , the logger has to consume the entire stream of data from HTTP connector. This means that the full content will be loaded into memory. So if the content is too big and you’re loading into memory, there is a good chance the application might run out of memory.

So Mule 4 repeatable streams enable you to

  • Read a stream more than once
  • Have concurrent access to the stream.
  • Random Access
  • Streams of bytes or streams of objects

As a component consumes the stream, Mule saves its content into a temporary buffer. The runtime then feeds the component from the temporary buffer, ensuring that each component receives the full stream, regardless of how much of the stream was already consumed by any prior component

Here are few points, how repeatable streams works in Mule 4

  • Payload is read into memory as it is consumed
  • If payload stream buffer size is > 512K (default) then it will be persisted to disk.
  • Payload stream buffer size can be increased or decreased by configuration to optimize performance
  • Any stream can be read at any random position, by any random thread concurrently

6. Error Handling — In Mule 4 error handling has been changed significantly. Now In mule 4 you can discover errors at design time with visual interface. You no need to deal with java exception directly and it is easy to discover error while you are building flow. Every flow listed all possible exception which potential arises during execution.

Mule 4 Error Handling

Now errors that occur in Mule fall into two categories

  • Messaging errors
  • System errors

  Messaging errors — Mule throws a messaging error (a Mule error) whenever a problem occurs within a flow. To handle Mule errors, you can set up On Error components inside the scope-like Error Handler component. By default, any unhandled errors are logged and propagated.

System errors — Mule throws a system error when an exception occurs at the system level . If no Mule Event is involved, the errors are handled by a system error handler.

Try catch Scope — Mule 4 introduces a new try scope that you can use within a flow to do error handling of just inner components/connectors. This try scope also supports transactions and in this way it is replacing Old Mule 3 transaction scope.

Mule 4 A new try catch block

7. Class Loader Isolation — Class loader separates application completely from Mule runtime and connector runtime. So, library file changes (jar version) do not affect your application. This  also gives flexibility to your application to run any Spring version without worry about Mulesoft spring version. Connectors are distributed outside the runtime as well, making it possible to get connector enhancements and fixes without having to upgrade the runtime or vice versa

In above pic showing that every component in any application have their own class loader and running independently on own class loader.

8. Runtime Engine — Mule 4 engine is new reactive and non-blocking engine. In Mule 4 non-blocking flow always on, so no processing strategy in flow. One best feature of Mule 4 engine is, It is self-tuning runtime engine. So what does this mean? If Mule 4 engine is processing your applications on 3 different thread pools, So runtime knows  which application should be executed by each thread pool. So operation put in corresponding thread pool based on high intensive CPU processing or light intensive CPU processing or I/O operation. Then 3 pools are dynamic resizing automatically to execute application through self-tuning.


Mule 4 : Self tuning run time engine

So now self-tuning creates custom thread pools based on specific tasks. Mule 4 engine makes it possible to achieve optimal performance without having to do manual tuning steps.

Conclusion

Overall Mule 4 is trying to make application development easy, fast and robust. There are more features included in Mule 4 which I will try to cover in my next blog. I will also try to cover more in depth info in above topic of Mule 4. Please keep tuning for my next blog.