A discussion on air cargo’s digital transformation took center stage at the World Cargo Symposium in Hong Kong.

Although the concept is much hyped and universally accepted, there is devil in the detail. The panel began by highlighting the need for collaboration. An airline is just one part of the aviation ecosystem and, although a cliché, it is no less true that a chain is a strong as its weakest link.

In other words, a digital transformation cannot be undertaken alone. The aim of air cargo is to make the flow of trade more efficient and that means partnerships and end-to-end connectivity. This includes regulators. The e-air waybill (eAWB) has been around for years, for example, but some countries still require paper documents, which obviously defeats the object of digitizing the AWB.

Other challenges include cybersecurity, data sharing, and staff buy-in. Clearly, the more processes move online, the greater the need to protect the data. In terms of data sharing, many businesses remain reluctant for various reasons, including competition. That must be addressed because if it is not shared, data has limited value.

Getting staff buy-in, meanwhile, can be a neglected area as digital transformation is primarily seen as an IT issue. But it should touch all departments, meaning more communication is needed to reassure and support staff.

When the panel discussed how to implement a change management strategy that ensured staff buy-in, Ingrid Lee, Head of Cargo Digital, Cathay Cargo, said that digital transformation is using technology to improve business processes and ways of working and in that sense is change management. It is not about implementing new systems and then managing the change.

On the positive side, “digital transformation has moved from being an enabler to being a core part of strategy,” said Andres Bianchi, CEO, LATAM Cargo. “It helps us to prioritize what to do and when to do it.”

Standards and data quality and quantity are also pushing digitalization forward. IATA’s ONE Record, for example, means development can take place around a single messaging standard, which will focus efforts and accelerate the digital transformation.

Standards also make customization possible while still ensuring harmonization. Not all digital tools are appropriate to every carrier or stakeholder but as long as the data flows unhindered, adaptation is fine.

The panel also discussed the frenzy of activity around generative artificial intelligence. Although the technology is still in its infancy, it was agreed that it has the power to transform air cargo processes and thinking. Initially, it might be used in extracting information from manuals or ensuring regulatory compliance. Rather than go through hundreds of pages, a worker would simply have to ask a question to get an answer from the AI. And its ability to capture data and analyze data in real time means AI will also play an important role in revealing industry trends or unusual activity.

Article Source: Digital transformation is change management