Purpose at BCG: Conquering Complexity in the Airline Industry

This article is part of a series on BCG’s five purpose principles: Bring Insight to Light, Drive Inspired Impact, Conquer Complexity, Lead with Integrity, and Grow by Growing Others.

Conquering complexity is one of the five pillars that make up BCG’s single, clear purpose: unlocking the potential of those who advance the world.

BCG was founded with a mission to discover the opportunities and solutions hidden within complex systems—those that cross functions and industries and cross the globe. This concept—diving into the multilayered, complicated worlds of our clients and uncovering patterns, relationships, and opportunities—has driven our most influential insights over the decades, including the “experience curve” in the 1960s, “time-based competition” in the 1980s, and “smart simplicity” in this decade.

We bring this principle into all our client work, getting to the heart of issues and prioritizing what matters in order to drive real impact. In today’s environment, part of that mission often involves taking massive amounts of data and applying machine learning and advanced analytics to get to deep, insightful solutions that deliver substantial, sustainable value to our clients.

From Complexity to Competitive Advantage

BCG’s approach involves taking a systemic view and discovering the opportunities buried in complex data and processes—then turning ideas into action. In a recent example, we worked with KLM Royal Dutch Airlines in a unique partnership that led to the launch of a suite of products, based in artificial intelligence, that dramatically improved airline operations.

The average day in the life of an airline is tremendously complex. Operations require the integration of granular information about tens of thousands of passengers, a fleet of more than 100 aircraft, schedules for thousands of crew members, and the tasks of essential ground staff. All of these components have to work together to keep operations running smoothly. Any aberration—from a no-show passenger to a winter storm—can cause delays and disruptions that lead to dissatisfied customers and increased costs to the airline.

Despite huge advances in technology, improvements in airline operations have been unimpressive over the years. The many moving parts that make up the array of challenges facing KLM and all airlines have traditionally been addressed in isolation—and with a lack of real insight needed to cut through the clutter of data.

Over the course of 18 months, BCG and KLM developed AI-based tools—through which, for example, machine learning and advanced optimization process dozens of variables and propose how to repair schedules with the minimal delays and disruptions and the least ripple effect for passengers, crews, fleet, and ground resources.

The magic of this project came out of the close collaboration among KLM’s operations and decision support teams; BCG’s consulting team, which had deep airline expertise; and BCG GAMMA, made up of data scientists, data engineers, and software developers. We rolled up our sleeves together to break down siloes and conquer two types of complexity of equal importance.

The tools we developed address technical complexities, supporting employees by sifting through vast quantities of data and giving them the right information at the right time so they can make the best decisions, big and small—minimizing the impact on tens of thousands of passengers in a single day.

But those tools won’t work without significant change management—gaining the trust of employees so that they comfortably adopt the tools and become part of the solution. This often means putting AI-enabled decision-making authority in the hands of frontline staff in the operations control center. Armed with analysis from the decision support tools, employees can focus on making integrated decisions that boost performance.

BCG’s partnership with KLM tackled both of these complexities at the same time, and early impact has been significant—with 15% to 25% fewer passenger disruptions and a large reduction in delays. Working with KLM, we are now bringing this solution to other global airlines.

Growing as Complexities Grow

At BCG, we are committed to and thrive on turning complexity into opportunity. As the world’s challenges continue to increase in complexity, we aim to strengthen our internal operations, innovate across industries and capabilities, expand our knowledge teams, grow implementation capabilities, and deepen our relationships. More than ever before, we strive to bring simplicity, clarity, and sharp priorities to complex issues and mountains of data.

Read the series:

#1 Unlocking the Potential of Those Who Advance the World 

# 2 Bringing Insight to Light for Malaysian Consumers

#3 Driving Inspired Impact in Rwanda

#4 Conquering Complexity in the Airline Industry (currently reading)

#5 Leading, with Integrity

#6 How We Grow by Growing Others