Commodification, indeed. ATM suffers from fragmentation. Commodification can be a way to create common functional block to bring ATM towards a higher level of features at a cheaper price.

ATM Business is complex. There are as many environments as airspaces. However common features in ATM system can easily be identified (e.g. middle ware, tracker, quality monitoring, communication node and interfaces). Such common features could be shared by users and industries grouped in a community. Only basic parts of the ATM system would be put public. This means that some modules of an ATM system are freely available and others stay private.

We can believe that ATM software will follow the PC hardware evolution: IBM PCs are made of “off the shelf” component. By design it is open for cloning by other manufacturers. As a result PCs are de facto standard and as such compatible with each other. In 2 decades it replaced almost every other platform (minicomputers and mainframes). By the way, PCs are getting more space in ATC centres computer rooms and desktops.

Some may argue that IT market is far from “life in stake business” like ATM or Aircraft  However Boeing has implemented an open source approach on his aircraft design. Before Boeing used to design aircraft completely and to give plans to suppliers. Today, Boeing suppliers start from scratch and deliver complete sub-assembly to Boeing factory. Aicrafts are considered as a giant Lego. Actors intervene in the production according their know-how and expertise. Consequently, it used to take 13 to 17 days to assemble a 777 now it last 3 days to have a 787 in one piece. The 787 program leader said: “That way we get the best ideas from everybody, as opposed to just ours”.

In Open Source working arrangement, basic functional blocks would be available. The starting point of ATM system project would be move towards a higher level of features, expertise and safety compliance. As a result effort available would be put on customer focus solutions with more effort available for safety, rather than technical re-implementation of the existing.

Some may argue that industrial partners will then loose money and do not innovate in such market condition. However this has never been observed in domain where such phenomena occur. As matter of fact, although prices are drove down, efficiency and average wealth levels went up. Vendors still compete on support, services, branding and channels. Circumstances for a win-win situation are therefore put in place.

Ben

Source: Wikinomics

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