SIS MISCELLANEOUS SWISS INTERNATIONAL AIR LINES ICH USER GROUP MEETING KUALA LUMPUR

1. SIS MISCELLANEOUS @ SWISS INTERNATIONAL AIR LINESICH USER GROUP MEETING KUALA LUMPUR OCTOBER 2010

2. | Change content using menu "View", "Header and Footer" 2 SIS @ SWISS INTERNATIONAL AIR LINESMAIN TOPICS How does SWISS as an example of a small carrier deal with the SIS project? Where do we face problems? How do we approach them?

3. | Change content using menu "View", "Header and Footer" 3 SIS @ SWISSOVERALL APPROACH PLANNING INITIALIZE & PLANNING (JUN – DEC 2010) Get an understanding of the requirements: Read ISPG... Kick-Off Meeting (P, C, M) – Invite IT and Business Management Get an understanding of the current business processes and IT systems involved Get an overview of current initiatives and projects within the company Define the scope: which items are included, which items are excluded Project team setup and resource planning Overall solution proposal – agree on big picture (e.g. use IS-WEB? Buy new software?) and time line Analysis of IT system and business process changes of agreed solution Request For Proposal (RFP) to IT system providers Cost/Benefit Analysis – Business Case Work Breakdown Structure – Project Plan

4. | Change content using menu "View", "Header and Footer" 4 SIS @ SWISSOVERALL APPROACH EXECUTION EXECUTION (Jan 2011 – Sept 2011/ Sept 2012) Suppliers to create detail concepts Define test cases Software development by system provider Create a user & user groups concept for SIS Based on the user concept, setup the SIS member profile Define how to deal with the migration phase Test (Sandbox, Certification Slots) Training of staff for the new processes and software (modules) Go-Live

5. | Change content using menu "View", "Header and Footer" 5 MISCELLANEOUSOVERALL SYSTEM PLANNING

6. | Change content using menu "View", "Header and Footer" 6 MISCELLANEOUSACCOUNTS PAYABLES Incoming miscellaneous invoices as IS-XML Import IS-XML and all supporting documents into workflow system Engineering invoices are handled by another system ? Implement IS-XML interface? ? Forward data from Workflow System? Post data to Accounting System PROBLEMS Our internal monthly closure is before IATA closing of 4th period ? Accruals are still required! (based on ICH provisional Form 3) Currently, no automated reconciliation in our workflow system ? manual invoice control is required

7. | Change content using menu "View", "Header and Footer" 7 MISC ACCOUNTS PAYABLESAUTOMATED POSTINGS CHARGE CATEGORY / CHARGE CODE

8. | Change content using menu "View", "Header and Footer" 8 MISCELLANEOUS ACCOUNTS PAYABLESADVANTAGES No unpacking and sorting of paper invoices No scanning of paper invoices System will automatically propose how to post data to financial accounting system Quick cost control due to weekly billing

9. | Change content using menu "View", "Header and Footer" 9 ACCOUNTS RECEIVABLES IS-WEB OR IS-XML? Currently, we use excel to create invoices Future with SIS:Option a) Instead of Excel, use IS-WEBOption b) Buy a new system and create IS-XML GENERAL PROBLEMS Assignment of invoices to Charge Category / Charge Code: E.g.: To which Charge Category/Code belongs invoice with FDM (Flight Data Monitoring)?? ISPG 3.0 explanation of Charge Category / Code still not good enough Mandatory/Recommended Fields: There are many fields mandatory which currently are not on the invoice: E.g.: ContractNo for Engineering Invoices. ? Huge effort to search all the data within company!

10. | Change content using menu "View", "Header and Footer" 10 ACCOUNTS RECEIVABLESUSING IS-WEB DATA CAPTURING WHEN USING IS-WEB Many fields are mandatory or recommended: ?Huge effort to capture invoices on IS-WEB ? Risk for errors Invoices with large detail listings: E.g. Mail, Engineering, etc. Who is going to capture all this data on IS-WEB? Today details are sometimes available on excel: ? It is essential to have a csv-upload functionality! Sometimes, detail listings are provided by external suppliers in PDF or JPG formats: How to “upload” such details?? Reengineer business process! POSTING OF OUTGOING INVOICES WHEN USING IS-WEB Not all information is on the file (“Processed Invoice Data csv File”) which is needed to do the automated postings Best solution: SIS should send IS-XML of outgoing invoices to the billing airline immediately after invoice submission to SISOtherwise, there is the risk that IS-XML is received after monthly closure, and manual accruals are required (depending on the volume, this is not feasible) and figures are not accurate in financial accounting system

11. | Change content using menu "View", "Header and Footer" 11 ACCOUNTS RECEIVABLESIMPLEMENTING A NEW IT SYSTEM TO GENERATE IS-XML ADVANTAGES Immediate postings to financial system System will be available for all departments (marketing, ground handling, engineering...) and they can enter all the services on their own PROBLEMS Still, all details (and all M-R fields) have to be captured manually (especially if detail data is provided by external supplier) ? manual effort, prone to errors! Investment costs: Without SIS, we would not need to buy a new system Risk of later migration to SIS? additional costs? delayed benefits

12. | Change content using menu "View", "Header and Footer" 12 SIS MISCELLANEOUSCONCLUSION

13. | Change content using menu "View", "Header and Footer" 13 SIS @ SWISSCONCTACT

14. | Change content using menu "View", "Header and Footer" 14 THANK YOU FOR YOUR INTERESTGOOD BYE AND GOOD LUCK