Implementing Data Analytics - Navigating the In-House vs. External Solutions Dilemma

Data generated by modern aircraft can be a goldmine of information, providing insights that can enhance safety, efficiency, and maintenance. By using data analytics this huge amount of data can be turned into actionable information and insights.

Now we need to focus on a pivotal decision — the choice between initiating an in-house analytics project or collaborating with external suppliers who offer pre-existing solutions. Both approaches come with their respective advantages and challenges and we will highlight a few below to facilitate informed decision-making.

Starting an in-House Initiatives

Let’s start with the advantages of the in-house initiative for a data analytics project. The most obvious advantage is customization - allowing for a tailored solution that aligns specifically with the unique needs and processes of the airline's maintenance operations. Being in charge of the own data analytics solution development provides a higher level of flexibility in system design and implementation. One can ensure that the analytics efforts are not generic but directly aligned with the airline's and department-specific goals, offering unparalleled flexibility and control over the entire process. Plus, it might enable a quicker adoption of evolving requirements and emerging trends. The team can promptly refine analytics models and strategies to align with changing industry standards, adapt to regulatory shifts, or address internal operational changes.

Another significant advantage is the direct control over data. No need to exchange data with an external party and think of data security concerns. Overall, it also provides airlines with a hands-on approach to data collection, ensuring the integrity, security, and compliance of crucial maintenance information.

In the long run, maintaining an in-house analytics project may offer cost advantages as compared to ongoing subscription fees associated with external software solutions. By investing in in-house capabilities, airlines can develop domain-specific expertise within their teams.

Potential Challenges

While these advantages can be compelling, it's crucial to weigh them against potential challenges carefully:

1. Capabilities

Data analytics requires specialized skills in areas such as data engineering, statistics, and machine learning. It is a resource-intensive endeavor, demanding substantial investments in talent, technology, and ongoing support. This commitment to internal development requires a dedicated allocation of resources, both in terms of financial investments and the nurturing of a skilled team capable of navigating the complexities of data analytics. If the airline lacks in-house expertise, especially in designing and maintaining a robust data infrastructure, the project may face difficulties in producing accurate and actionable insights. Moreover, securing the backing of key business users is essential, as they are the individuals interacting with the data daily and will be actively involved in utilizing the analytics solution. Nevertheless, their routine responsibilities may divert their focus, potentially leading to delays and jeopardizing project commitment and quality.

2. Data Integration and Scalability

Airlines often have diverse systems generating data, and integrating these disparate sources is complex. Without the expertise to handle data integration challenges, the project may struggle to create a unified and reliable dataset for analysis. Plus, aircraft produce more data every day with this increase in volume, scalability becomes crucial. If scaling is not done efficiently, this might lead to performance issues and limit the project's long-term viability.

3. Data Quality

Ensuring data quality and adhering to governance standards are critical for meaningful analytics. We cannot emphasize it enough the term garbage in garbage out; you cannot drive value from data and make the right decisions based on flawed data. Without the proper knowledge and tools, this might take lots of time affecting the timeline of the project.

1. Time to Value

Based on the points mentioned above, in-house projects may take longer to deliver tangible results due to learning curves, implementation challenges, and resource constraints. This extended timeline can lead to a lack of confidence in the project and hinder its acceptance within the organization.

To mitigate these challenges, careful consideration of the organization's capabilities, available resources, and the complexity of the analytics requirements is essential. Collaborating with external experts or vendors can often provide a faster and more reliable path to successful data analytics implementation, so let’s dive into this aspect further.

Working with an external supplier

Choosing external solutions and partnering with software experts offers distinct advantages. One of the primary benefits lies in the expertise and ongoing support provided by external suppliers. Airlines can tap into not just the product itself but also the accumulated knowledge and insights of the external provider, potentially sidestepping challenges and accelerating the learning curve.

Another advantage is the faster implementation. Leveraging existing products significantly reduces the time required for implementation. Airlines can quickly integrate analytics solutions into their daily business procedures, accelerating the realization of benefits.

Scalability is yet another strong suit of external solutions. These products are often designed to scale seamlessly with growing data volumes and evolving analytics requirements. This scalability is a vital consideration as the data produced by aircraft increases daily, and airlines might also look to expand their data analytics initiatives to cover more aspects of maintenance operations.

Finally, as mentioned above implementing and maintaining complex data infrastructure demands significant resources and knowledge. Working with an external provider brings the notable advantage of reducing the internal resource burden enabling airlines to focus on their core competencies while relying on external expertise for data analytics infrastructure.

Potential Challenges

While the advantages may be evident, it is equally essential to examine the potential challenges:

1. Customization

While working with an external provider offers a quick start, they may have limitations in terms of customization. This one-size-fits-all approach might not fully address the unique requirements of every airline. However, as aviation is a highly regulated industry and for example, for reliability management, an airline needs to follow a specific standard, it can profit from an already existing solution and ensure that it can customize, as well.  

2. Costs

Although external solutions may reduce initial setup costs, the accumulation of subscription fees requires careful consideration. Balancing immediate cost advantages with the enduring financial effects is crucial. A clear overview of the costs involved for both approaches is necessary to make an informed decision aligned with organizational goals and timelines.

3.      Data Security

Entrusting data to external suppliers may raise concerns about data security and privacy. However, working with suppliers that follow industry and ISO standards can mitigate these risks. Ensuring stringent security measures are in place is key to safeguarding sensitive information in compliance with industry standards.

The successful integration of data analytics into aircraft maintenance operations is a journey that requires careful consideration, collaboration, and a clear plan towards a data-driven future. Whether airlines choose to forge their path in-house or collaborate with external experts, the ultimate goal is to navigate the skies of data analytics, extracting meaningful insights that propel their operations to new heights.

EXSYN's team of data and airworthiness experts has crafted AVILYTICS, a specialized data analytics and reporting solution tailored for aircraft operators. AVILYTICS adheres to industry standards, leveraging data from the MRO/M&E System, Flight Operations System, Finance System, and on-board aircraft data. This comprehensive approach monitors overall fleet availability and identifies areas for improvement in technical reliability and organizational support, ultimately enhancing aircraft availability and reducing costs.

With AVILYTICS, airlines gain access to a centralized data warehouse for advanced decision-making. The system automatically retrieves data from relevant sources within the airline, providing readily available dashboards. AVILYTICS goes a step further by allowing users to create customized dashboards, facilitating swift adaptation to new scenarios and alignment with airline-specific goals.

For further details about AVILYTICS, including costs, and to learn more about EXSYN's commitment to data security and customization options, please reach out to us at hello@exsyn.com.