IBM Global Business ServicesIBM Institute for Business Value                                   GovernmentIntelligenttransp...
IBM Institute for Business Value   IBM Global Business Services, through the IBM Institute for Business Value,develops fac...
Intelligent transportHow cities can improve mobilityBy Jamie Houghton, John Reiners and Colin Lim                        C...
issues faced during implementation. After         Some cities have already made significant      collating their experienc...
Intelligent transportHow cities can improve mobility        As part of their   The smart city                             ...
FIGURE 2.       Personal transport activity by mode.                                    80                                ...
Effective transport      FIGURE 3.                         Regional transport challenges, priorities and solutions.     is...
ITS technologies also create the potential for                                   they progress through different levels of...
Many cities admit     port systems. Other cities are considering ITS                                version of the maturit...
Our analysis led to several conclusions:              Enhancing ITS     •	 Different cities prioritize the model’s initia-...
ITS strategies    to expand in scope, linking cities with other       In response to the need for integrated trans-       ...
2. Adopt customer-centered approaches                 offer increased convenience for customers      Customer expectations...
ITS solutions can be   reliability of preferred transport modes) and        The objective is to allow the consumer to plan...
the city’s transport are able to work collab-      architectures on all ITS projects, is promoting      oratively with eff...
Ideally, cities need   “New infrastructure projects                         Intelligent transport systems themselves can  ...
5. Effectively manage implementation                 Other industries, such as healthcare, financial      While almost all...
City officials can look   Conclusions                                          •	 Treat transport as an integrated service...
About the authors                                  Contributors      Jamie Houghton is the IBM global leader            Jo...
References                                             7                                                                 “...
12                                                     19           “Facts and Results from the Stockholm Trial.”         ...
© Copyright IBM Corporation 2009  IBM Global Services  Route 100  Somers, NY 10589  U.S.A.  Produced in the United States ...
Intelligent Transport Services and Systems - IBM
Intelligent Transport Services and Systems - IBM
Intelligent Transport Services and Systems - IBM
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Intelligent Transport Services and Systems - IBM

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Leading cities are using technology to evolve their transport systems from single modes to integrated ones, improve transport services and provide an improved value proposition to customers.

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Transcript of "Intelligent Transport Services and Systems - IBM"

  1. 1. IBM Global Business ServicesIBM Institute for Business Value GovernmentIntelligenttransportHow cities canimprove mobility
  2. 2. IBM Institute for Business Value IBM Global Business Services, through the IBM Institute for Business Value,develops fact-based strategic insights for senior business executives around critical industry-specific and cross-industry issues. This executive brief is based on anin-depth study by the Institute’s research team. It is part of an ongoing commitment by IBM Global Business Services to provide analysis and viewpoints that helpcompanies realize business value. You may contact the authors or send an e-mail to iibv@us.ibm.com for more information.
  3. 3. Intelligent transportHow cities can improve mobilityBy Jamie Houghton, John Reiners and Colin Lim Cities face urgent transport challenges. Many are starting to tackle them by implementing new intelligent transport systems, and some have achieved impressive benefits. However, many cities are at the “early adopter” stage. How can they move forward? We believe five recommendations can assist cities in using new technologies to achieve optimized, integrated transport services. The world is urbanizing rapidly, and popula- ments are necessary. However, the constraints tion densities are increasing. A United Nations of tight capital budgets are driving an report estimates approximately 70 percent increased focus on the need to better manage of the world’s population will live in cities by transport demand and supply through 1 2050. This growth is expanding demands deploying intelligent transport systems (ITS). on urban infrastructures of all kinds, including transport. The majority of cities are at an early stage in understanding and realizing the full potential IBM research in over 50 developed and devel- of ITS. Our research identifies significant gaps oping world cities reveals that although cities between the progress of the typical city and face unique transportation challenges, their the global leading practice. To understand leaders share a number of common ambi- what the leaders are doing, we talked in depth 2 tions. Most strive for cleaner, less congested to transport officials and experts responsible cities and improved traffic flow, primarily for transport policies, programs and service through increased use of enhanced public operations in selected cities about their trans- mass transit systems and other alternatives to port visions out to 2020 and the role of ITS 3 private vehicles. In terms of transport systems, in meeting their objectives. Specifically, we most leaders agree that infrastructure invest- discussed their strategies and plans for imple- menting ITS, their progress and any practical 1 Intelligent transport
  4. 4. issues faced during implementation. After Some cities have already made significant collating their experiences, we summarized a strides in these areas through implementing series of recommendations to assist cities as ITS (for example, multimodal fare card tick- they progress toward solving transport chal- eting). As technologies mature and cities lenges: become more experienced in optimizing their • Develop and implement comprehensive ITS value, we believe more and more cities will strategies that are long term, flexible and adopt global leading practices. In addition, integrated with the city’s transport vision. virtually all cities can learn from others’ experi- ences and accelerate their own programs. • Adopt customer-centered approaches to Ultimately, success will be determined by the improve services, understand customers leadership qualities of those with responsibility and influence customer behavior patterns. for developing and executing their city-wide • Integrate service delivery across transport transport strategies. modes. • Secure funding and apply innovative business models. • Effectively manage implementation by addressing the complexity of ITS projects.22 IBM Global Business Services IBM Global Business Services
  5. 5. Intelligent transportHow cities can improve mobility As part of their The smart city significant impact on a city’s attractiveness to The twenty-first century has been described both prospective investors and employees. transport strategies, as “the century of the city” due to increased many cities have The growth of the city presents city leaders urban populations and the expectation that deployed ITS, and 4 this trend will continue. Urban growth is with significant challenges and opportunities. many others have A common emerging theme is the potential driven by the developing world, and there are for cities to become “smarter” – to apply plans to do so. increasing numbers of megacities – those 5 advanced technologies to collect more and with ten million or more people. Along with better data, analyze it more intelligently and population growth, there is an increase in car connect it through more effective networks. ownership and demand for transport journeys The end result is more efficient, effective and across all regions (see Figures 1 and 2). targeted services for citizens. In the developed world, cities are increas- Cities are starting to use smarter solutions ingly becoming driving forces of their national in the areas of water, wastewater, electricity economies (e.g., Tokyo, Paris, Zurich, Prague supply and public safety. However, the adop- and Oslo all produce about a third of their 6 tion of smart solutions is perhaps most countries’ gross domestic products, or GDPs). advanced in the area of transport, with many As cities grow in economic importance in the cities having deployed intelligent transport global economy, they often compete to attract systems and many others planning them as commerce and employment opportunities. The part of their transport strategies. effectiveness of a city’s transport system has a FIGURE 1. Personal transport activity by region. 80 70 Africa Latin America 60 Middle East Passenger Km (trillions) India 50 Other Asia 40 China Eastern Europe 30 Former Soviet Union 20 OECD Pacific OECD Europe 10 OECD North America 0 2000 2010 2020 2030 2040 2050 Note: OECD = Organisation for Economic Co-operation and Development. Source: “Mobility 2030: Meeting the challenges to sustainability.” The Sustainable Mobility Project. World Business Council for Sustainable Development. December 2004. 3 Intelligent transport
  6. 6. FIGURE 2. Personal transport activity by mode. 80 70 Minibuses Buses 60 Passenger rail Passenger Km (trillions) Two- and three-wheelers 50 Air 40 30 20 Light duty vehicles 10 0 2000 2010 2020 2030 2040 2050 Source: “Mobility 2030: Meeting the challenges to sustainability.” The Sustainable Mobility Project. World Business Council for Sustainable Development. December 2004. Today’s transport challenges impacts and the pressure to improve a city’s Transport is perhaps one of the most urgent economic competitiveness. issues facing most cities today. A 2006 study, While there are similarities, the exact nature “Megacity Challenges, A stakeholder perspec- of the challenges and planned solutions vary tive,” found that transport was the single for each individual city based on a number of biggest infrastructure challenge for cities at all 7 factors, including the city’s stage of develop- stages of development. Effective transport is ment, physical characteristics, existing levels of central to a city’s economic competitiveness, transport infrastructure and citizen preferences and severe congestion is known to have an (see Figure 3). For example, Amsterdam and equally severe economic cost, estimated as Chicago are both mature cities but have very high as between 1 and 3 percent of GDP in 8 different characteristics that will shape their developed and developing countries. Equally transport ambitions: in Amsterdam, over 50 important, transport is an experience shared percent of daily trips are on foot or on bicycle, by almost all of a city’s inhabitants and directly whereas in Chicago, just under 90 percent are affects their well being. Transport is also 9 by private car. responsible for a large share of emissions, which authorities increasingly want to control. “Total mobility is the most Our research reveals a common set of trans- compelling driver. The emphasis port challenges. The most severe challenges must be on achieving traffic reported include increasing congestion on all modes of transport, customer safety, outcomes that benefit the city and a decaying transport infrastructure, under its people – be they permanent or funding, growing negative environmental visiting.” Phil Mumford, CEO, Queensland Motorways Ltd.4 IBM Global Business Services
  7. 7. Effective transport FIGURE 3. Regional transport challenges, priorities and solutions. is central to a city’s economic Emerging Markets Asia Pacific (mature) • Increasing urbanization (especially in the mega cities) • The mature Asia-Pacific cities include several global competitiveness. has resulted in worsening congestion, which has transport leaders (e.g., Tokyo, Seoul and Singapore), adverse economic and health impacts. Funding and which have extensive public transport systems. safety are major issues. • Regional innovations include advanced traffic and bus • Most cities are focused on developing their transport management systems, integrated fare systems and infrastructure, especially highways, railways and metro traveler information. systems, while improving their traffic systems. • Congestion remains a key concern, with several cities/ • Leading cities, including Dubai, Beijing and New Delhi, countries considering various congestion charging are implementing ambitious and innovative programs. solutions. Western Europe North America • Most European cities already have expansive roads and • The private car is the key mode of transport in most U.S. public transport infrastructure. Europe is also home cities. However, the high cost of congestion (time and to many pioneering leaders, including London and gallons wasted) is measured in the billions. Stockholm. • Issues include significant funding challenges for new • Many cities/countries are seriously considering infrastructure, maintenance of existing infrastructure congestion charging, including the use of next- and achieving quality service levels. An overhaul of the generation GPS-based solutions, especially for trucks. gas tax is being considered with higher rates and user • Greater demand for public transport interoperability at charges being introduced. the metropolitan, regional and national levels. • The new administration is encouraging railways and public transport improvements while new approaches in tolling are being explored. Source: IBM Institute for Business Value interviews and analysis of publicly available information. Virtually all cities are developing visions Intelligent transport systems and strategies to address their particular Intelligent transport systems have been around challenges and improve mobility, usually for many years, but more recently, global cities by changing modal shares and delivering have been implementing a new generation of improved transport services. In addition, nearly ITS. Some examples include: all of the city leaders interviewed highlight the • Integrated fare management importance of ITS in tackling their transport challenges. • Enhanced transit/customer relationship management “Allowing congestion to grind cities, suburbs • Traffic prediction and supply chains to a halt every morning and afternoon is unacceptable when we have • Improved transport and traffic management innovative tools, technologies and strate- • Traveler information and advisory services gies available to manage our transportation • Road user charging systems and utilize our infrastructure more effectively,” states Scott Belcher, president and • Variable parking pricing. chief executive officer (CEO) of ITS America. 5 Intelligent transport
  8. 8. ITS technologies also create the potential for they progress through different levels of new information-based services like pre-trip sophistication in each of these three areas, and on-trip journey planning and traffic alerts, which we have documented in the IBM as well as different pricing and business Intelligent Transport Maturity Model (see models, such as variable pricing based on Figure 4). usage, emissions or peak times. Implementing ITS As part of its research, IBM has studied a As cities address these three areas and prog- number of cities over several years as they ress to more integrated and optimized modes implement ITS. Our findings suggest that of transportation, many will face implementa- intelligent transport systems are about much tion hurdles. Intelligent transport systems are more than discrete software solutions. Leading relatively new and, although proven technically, cities are implementing broader strategies to still present challenges, especially around help them move from single mode operation matching strategic objectives with assured to more sophisticated multimodal transport delivery. Many cities freely admit they have not services and integrated transport delivery. yet gained all of the anticipated benefits from Their strategies address three main areas: their ITS investments, and some look forward governance, transport network optimization to further evolution of their intelligent trans- and integrated transport services. Typically, FIGURE 4. IBM Intelligent Transport Maturity Model (summary version). Level 1 Level 2 Level 3 Level 4 Level 5 Single mode Coordinated Partially Multimodal Multimodal modes integrated integration optimized Governance Single mode A transport vision Integrated multimodal Integrated corridor- Integrated regional • Strategic planning planning with little is articulated. transport authority. based multimodal multimodal planning. • Performance coordination between Single overarching Coordinated demand planning. Dynamic Continuous system- management various transport regulator but with management demand management wide performance • Demand providers. limited planning and measures. schemes. measures with dynamic management management powers. pricing. Transport network Limited data Data collection Realtime collection Realtime multimodal System-wide realtime optimization collection and for major routes. of multiple data coverage for most multimodal data • Data collection, integration. Ad hoc Periodic data source with high-level corridors. Detailed collection, integration integration and analysis and incident collection and analysis. Automated realtime data and analysis. Dynamic analysis response. Manual analysis. Network and network and incident analysis. Automated network optimization • Network incident response by incident response response systems. pre-planned and incident response. operational individual modes. mostly by individual multimodal incident responsiveness modes. response. • Incident management Integrated transport Minimal; mostly cash Customer accounts Electronic payments. Multimodal Single customer services collection. Limited by mode. Mostly cash Multichannel trip integrated transport transport account. • Customer and static traveler collection. Static trip planning and card. On journey, Location-based management information. planning with limited account-based alert multimodal multimodal proactive • Payment systems realtime alerts. subscription. information services. trip advisory. • Traveler information Source: IBM Global Business Services analysis.6 IBM Global Business Services
  9. 9. Many cities admit port systems. Other cities are considering ITS version of the maturity model to assess the investments but are discouraged by perceived current positions of a number of cities and the they have not yet public resistance or funding challenges. current state of global leading practice, which gained all of the comprises the outstanding features of manyanticipated benefits The IBM Intelligent Transport Maturity Model individual cities (see Figure 5). This bench- from their ITS can be used to assess a city’s progress mark is itself shifting to the right over time, as compared with the global leading practice. As investments. technologies improve and cities get better at part of our research, we used a more detailed exploiting them. FIGURE 5. Progress profile for a typical city versus global leading practice. Level 1 Level 2 Level 3 Level 4 Level 5 Single mode Coordinated Partially Multimodal Multimodal modes integrated integration optimized Strategic Functional area Project-based Integrated agency- Integrated corridor- Integrated regional Governance planning planning (singe planning (single wide planning based multimodal mulitimodal mode) mode) (single mode) planning planning Performance Minimal Defined metrics by Limited Shared multimodal Continuous measurement mode integration across system-wide system-wide organizational silos metrics performance measurement Demand Individual static Individual Coordinated Dynamic pricing Multimodal management measure measures, with measures, with dynamic pricing long-term variability short-term variability Data Limited or manual Near realtime for Realtime for major Realtime coverage System-wide Transport collection input major routes routes using for major corridors, realtime data network multiple inputs all significant collection across optimization modes all modes Data Limited with ad hoc Networked but Common user Two-way system Extended integration analysis periodic analysis interface with high- integration and integration with and analytics level analysis analysis in realtime multimodal analysis in realtime Network Ad hoc, single Centralized single Automated, single Automated, Multimodal operations mode mode mode multimodal realtime optimized response Incident Manual detection, Manual detection, Automated Automated pre- Dynamic management response and coordinated detection, planned multimodal multimodal recovery response, manual coordinated recovery plans recovery plans recover response, manual based on realtime recover data Customer Minimal capability, Customer accounts Multichannel Unified customer Integrated Integrated relationships no customer managed separately account interaction account across multimodal transport accounts for each system/ by mode multiple modes incentives services mode to optimize multimodal use Payment Manual cash Automatic cash Electronic Multimodal Multimodal, systems collection machines payments integrated fare card multichannel (fare cards, cell phones, etc.) Traveler Static information Static trip planning Multichannel trip Location-based, on- Location-based, information with limited realtime planning and journey multimodal multimodal alerts account-based alert information proactive rerouting subscription Source: IBM Global Business Services analysis. Typical city Global leading practice 7 Intelligent transport
  10. 10. Our analysis led to several conclusions: Enhancing ITS • Different cities prioritize the model’s initia- Regardless of a city’s current state of ITS tive areas in different ways – there is not one maturity, there is typically room for improve- solution that fits all. ment and continued development. Therefore, based on our research and detailed discus- • There is a material gap between the typical sions with city officials, we have identified five city and the global leading practice. key recommendations to help all cities as they • There are particularly large gaps in data implement ITS. collection, data integration and analytics, and customer relationships. 1. Develop and implement comprehensive ITS strategies • The typical city is having difficulty making A leading practice demonstrated by several progress with data integration and analytics, cities is to develop effective ITS strategies that especially across modes. are long term and integrated with wider strate- • The more sophisticated services, including gies and plans for transport, the city and even demand management, incident manage- the wider economy. Our research found that ment and traveler information, are relatively many ITS projects are developed indepen- undeveloped even among leading cities. dently and are not part of a wider strategic ITS • All cities have bold ambitions – regardless or multimodal transport plan. This can lead to of current stage of development or current difficulties later in gaining the potential network level of transport infrastructure – though their benefits across all modes that ITS can offer. priorities differ. “We shouldn’t lose sight of 2020 • Each city will have a different implementation path based on its unique starting position when addressing the challenges and the priorities it sets out in its transport of 2010.” strategy. Julie O’Neil, Secretary General, Department of Transport, Dublin Cities can map their ITS strategies on this maturity model to measure their current An ITS strategy should be long term to antici- progress and compare it to global leading pate customer demands for new services practices. This can then be used both to across transport modes and the growing validate their strategies against the global capabilities of emerging technologies, such benchmarks and to develop an ITS implemen- as next-generation global positioning system tation roadmap. technologies and the rapid deployment of personal digital assistants (PDAs) for realtime information. Also, ITS services are expected8 IBM Global Business Services
  11. 11. ITS strategies to expand in scope, linking cities with other In response to the need for integrated trans- cities, regions and government agencies. They port initiatives and the uncertainties involved inshould be long also may need to work effectively with a large long-term planning, national and international term and part number of commercial providers, as many transport authorities are increasingly playing a of an overall cities view ITS as a platform to deliver a range role in framing cities’ transport strategies andtransport plan. of services to customers. promoting technical standards. To move toward multimodal and integrated “There is a need for a single transport services that benefit customers, the city and the wider economy, ITS projects and transport vision and plan for Egypt plans need to be joined up at various levels to and a central governance and show how individual projects contribute to the ownership.” delivery of a broad ITS strategy (addressing a Omar El Bakary, Deputy Minister, Ministry of broad set of dimensions listed in the maturity Transport, Egypt model). The strategies for a city’s different transport modes also should be integrated as The European Union (EU) is progressing part of a coherent city transport strategy and plans to encourage the adoption of ITS across need to be consistent with strategies in other Europe based on common frameworks and areas of municipal government (for example, standards, stating that “it is not acceptable land use planning). In addition, they should be anymore to see Member States of the EU coordinated with strategies in other levels of implementing new proprietary road charging government, including national, regional and systems. Drivers should have only one system district. for the whole Europe and not one per Member 11 State.” Cities with an integrated transport authority will find it easier to develop and implement Stockholm increases services, decreases a holistic ITS strategy across all transport congestion modes. For example, Transport for London, The Swedish city of Stockholm has implemented which has responsibility for all public transport several global leading practices. Stockholm aims modes within the London metropolitan area to be the world’s most accessible capital and and reports to the Mayor of London, devel- views its transportation system as an important oped a comprehensive and integrated 20-year part of reaching this goal. Stockholm is well strategy for transport, which details how known for its congestion tax, which resulted in specific initiatives will contribute to achieving a 25 percent reduction in car use and 14 percent 12 a wide range of city and even national reduction in emissions from road traffic. 10 objectives. Where formal organization depen- However, it is important to note that Stockholm dencies do not exist, cities need to collaborate implemented the tax as part of a holistic transport effectively with partner organizations. A plan that also increased bus services and park- 13 number of cities in our research mention the and-ride facilities. In addition, Stockholm has an importance of political support and active integrated ticketing system that links the major 14 sponsorship in establishing and later imple- modes of transport. menting coherent ITS plans. 9 Intelligent transport
  12. 12. 2. Adopt customer-centered approaches offer increased convenience for customers Customer expectations of transport services through integrated public transport smart are increasing, and transport authorities can cards, which can be used not only for trans- use ITS to deliver both new and improved port-related services, but also as electronic services. Many transport users have ingrained purses for small purchases. behavior patterns based on their percep- tions of the convenience, reliability and cost Understanding patterns of customer demand of alternative transport modes. To optimize the and use is very useful in developing customer- transport network and encourage modal shift, centered transport strategies. Leading cities need to alter customer attitudes about cities are using demand and usage data the cost, value and use of transport systems. to segment customer groups so they can provide optimized scheduling services as well “Londoners should not have to as transparent and targeted communication to specific groups (e.g., text alerts of traffic hunt for transport information. It problems and advice about alternative routes should be everywhere and easily to daily commuters). As Peter Martin, general accessible.” manager of tolling for Sydney’s Roads and Kulver Ranger, Director of Transport Policy to the Traffic Authority, remarks, “The travelling public Mayor of London in 2020 will be defined as a number of market segments…We will see offerings to travelers For many cities, improving the customer that give them a better value proposition but transport experience is the primary objective also offer the city a better proposition.” of ITS projects, whether by increasing overall To fully utilize the breadth of such capabilities, customer satisfaction or encouraging greater transport officials need to get much closer use of public transport services. According to to their customers. Increasingly, transport will Elio Catania, CEO of Milan’s transport authority, embrace techniques used in retail, such as “The key issue is to significantly improve customer relationship management (CRM) public transport – efficiency, cost, punctu- systems to support and enhance customer ality, high quality infrastructure / rolling stock, relationships and analyze customer data. Data personal safety, accessibility, etc. – to ensure will be collected on customer journeys, prefer- that public transport becomes a superior alter- ences and purchasing patterns just as retail native to the car.” does now. According to Phil Mumford, CEO of One way to improve the transport experi- Queensland Motorways, “Supermarkets know ence is through Web-based journey planning exactly when, where, what and why I buy what services, which can help customers optimize I do. We will be like them around every aspect their travel across modes, increasing efficiency. of a journey.” These services can be delivered via mobile Once they better understand their customers’ phones and other mobile devices such as travel patterns, city officials can more effec- PDAs. Location-based services can also be tively influence behavior patterns through added, such as tourist information. Some cities incentives (such as improving the quality and10 IBM Global Business Services
  13. 13. ITS solutions can be reliability of preferred transport modes) and The objective is to allow the consumer to plan pricing mechanisms (ticket pricing, higher an optimal journey, irrespective of transport used to help improve city-center parking charges, emissions-based mode, and to carry out that journey effec- the customer’s transport charging, road user charging, etc.). In most tively (e.g., with connections between modesexperience and integrate cases, a combination of service improvements and without having to buy separate tickets). modes of transport. and price incentives will be needed to change Service integration also helps transport author- customer behavior patterns. ities deliver a more efficient service. By sharing information from different sources, they can “A key priority is changing construct a holistic view of transport demand behavior – encouraging a shift to and supply and make decisions to optimize the transport network. However, the reality public transport usage by adjusting is that most cities’ transport services are still the mindset of the commuter.” delivered by individual modes. Lew Yii Der, Group Director, Policy and Planning, Singapore LTA “Within the city, the integration of all modes, including the bicycle, is London boosts bus popularity 40 percent London has been very successful in changing important.” customer tendencies to make more use of buses, Rene Meijer, Vice Director, Infrastructure, Traffic with a patronage increase of 40 percent since and Transport, Amsterdam 1999, and 4 percent modal shift from private vehicles. This was achieved through targeted Service integration is difficult and, while initiatives, including expanded services, better many have made progress, only a few of scheduling and connectivity, investment in new the cities in our research have achieved it buses, a simpler fare structure and payment to their satisfaction. Integration is required at solution, regular travel updates and marketing many different levels, as transport services campaigns. Shifts have been highest in central are typically delivered by many different London, assisted by congestion charging and bus organizations operating in different ways on a 15 priority measures. wide range of different systems. Joining all of these to deliver an integrated service to the 3. Integrate service delivery consumer and provide integrated information Almost all cities report that transport to the transport authority and consumer is a service integration across modes is essen- daunting political, organizational, procedural tial. According to Dr. Ashwin Mahesh of and technical challenge. Bangalore’s Indian Institute of Management, “Integration of modes is the only way to From an organizational perspective, the address the problems of congestion and preferred approach is an integrated transport mobility.” authority, which a number of cities have estab- lished and others hope to achieve. Regardless of organizational structure, it is important that all who work toward planning and delivering 11 Intelligent transport
  14. 14. the city’s transport are able to work collab- architectures on all ITS projects, is promoting oratively with effective political support and the development of a national architecture and sponsorship. At a policy level, this involves is encouraging the use of service-oriented coordination between city, regional and architecture (SOA) and open standards to help 16 national transport authorities and agencies, systems integration. as well as other interested parties, such as city planners and transport service providers. “Our greatest technical challenges Collaboration among these multiple entities involve integrating systems with is essential to develop coherent strategies, those of other provinces and consistent policies and technical standards (as described under our first recommenda- changing legacy systems according tion), as well as to help ensure plans are to the standards.” executed in a coordinated way. Soojin Lee, City Transportation Headquarters, Seoul At the operational level, much work is required to integrate processes, policies and In Singapore, ITS enables mobility – and procedures. Employees from different orga- shopping nizations need to collaborate to deliver an A good example of integrated service delivery integrated service to consumers. Scheduling, is Singapore’s next-generation multimodal ticketing and pricing have to be coordi- e-payment system dubbed Symphony for nated across transport providers, and this 17 e-Payment. Based on Contactless E-Purse has further implications on integration of Application Standard (CEPAS), an open national back-office functions, such as the need for transport card standard, the system allows multi- common transit customer accounts and purpose stored value (MPSV) cards to be used clearing-house functions. for transit (bus, rail, vehicle congestion charging, etc.), as well as nontransit purposes, such as Integration challenges also occur at the micropayments for retail purchases. In addition, it technical level in integrating informa- provides support for multiple (CEPAS compliant) tion using incompatible standards and card issuers, increasing choice and convenience connecting multiple systems. This challenge is for the public commuter. 18 compounded by the complexity and volume of information flows involved. Cities need to 4. Secure funding, apply new business make more progress in this area, and the models need for effective systems integration is likely Several city officials describe difficulty in to increase as demands for interoperabilty of securing funding as a significant barrier to transport systems rise. achieving their transport visions. Officials compete for funding both with counterparts The long-term answer involves implementing from different modes of transportation and open information technology architectures and more traditional infrastructure projects. A working with standards-setting bodies to adopt further challenge is gaining public support for widely used common or open standards in ITS ITS projects, particularly if citizens are asked to applications. For example, the Santiago trans- contribute to costs through increased fares. port authority made the decision to use open12 IBM Global Business Services
  15. 15. Ideally, cities need “New infrastructure projects Intelligent transport systems themselves can provide new ways of raising funds, for example, business models that get too much attention at public usage-based charging that varies by vehicleboth exploit new revenue planning. We need new priorities type, volume of usage or time of day. In addi- opportunities and price to focus on smart solutions.” tion, traffic information collected via ITS cantransport to support their Professor Jonas Eliasson, Royal Institute of be sold to consumers in the form of traffic transport objectives. Technology, Stockholm updates or to private corporations for fleet management. ITS proposals need to be accompanied by convincing business cases and supported In addition to raising valuable revenue, the by evidence that benefits are being delivered. pricing of transport services can impact According to a senior transport official of a customer behavior patterns. Cities should large Chinese city, “Funding is the greatest be cautious that price increases and new challenge in implementation, but funds will charges do not lead to public opposition. It follow if ITS projects prove their value following is notable that both London and Stockholm evaluation.” promoted their road user charging plans not only by stating the benefits of reduced Evaluations should measure a range of bene- congestion and lower emissions, but also by fits beyond financial payback – for example, emphasizing that fee revenue would be rein- improvements in numbers of accidents (and 21 vested in the transport network. Ideally, cities traffic related deaths), reduced emissions need an effective overall business model that and the customer benefits derived from an exploits new opportunities for revenue and, at enhanced traffic network. the same time, prices transport in a way that supports the city’s transport objectives. Most cities expect transport investments to be funded primarily via general taxation since Oregon taxes miles instead of gas the public benefits from reduced congestion The U.S. state of Oregon is testing a mileage tax, and fewer emissions. Some national transport based on the number of miles a vehicle is driven, authorities (e.g., those in the United States, the as a replacement for the state gas tax. Responding United Kingdom and Singapore) are trying to to declining gas tax revenues due to greater fuel encourage ITS adoption by creating national efficiency in cars, the state sees this as a more funds to support regional and local innova- equitable way to fund road improvements. 22 19 tive transport initiatives. Some countries also look to the private sector for funding. Public- private partnerships have been used for some time in a number of countries, including the United States, the United Kingdom, Australia and South Korea, particularly for infrastructure 20 projects. 13 Intelligent transport
  16. 16. 5. Effectively manage implementation Other industries, such as healthcare, financial While almost all cities see the use of intelligent services and retail, have deployed innovative transport systems as central to the delivery of approaches, such as offering incentives to their transport visions, many express concerns customers and deploying privacy-enhancing about their capability to implement them. technologies (PETs), to overcome customer There are difficulties involved in implementing resistance to the introduction of technologies large and complex intelligent transport proj- that some perceived threatened personal 23 ects, as well as a natural concern that failure privacy. Pilot implementations also can help would be highly visible to the public. build confidence for delivery authorities and test the acceptance of users. With some ITS projects, the implementation spans different transport modes, which often Part of managing implementation involves are the responsibility of different organizations, cities effectively measuring progress against resulting in increased complexity. In these their transport strategies by using well-defined cases, setting up effective governance struc- metrics. Sharing more traffic-related informa- tures and sponsorships are important. tion in a transparent way and communicating the objectives and progress of transport initia- Other implementation concerns include the tives can also be effective in building public need for effective change management and support. Cities are increasingly sharing their anticipation of potential resistance from staff progress with the public using Web sites and and consumers. For example, some cities in other channels. The performance indicators our research highlight the need to respond to are changing as well. In addition to traditional consumers’ resistance to privacy-threatening transport metrics of modal share, journey technologies, such as vehicle plate recognition. times, etc., many cities now are measuring Much can be learned from those who have customer-centric measures, in particular succeeded in implementing complex informa- customer satisfaction. tion systems, whether in transportation or other industries. Several cities emphasize the impor- “Our transport indicators are tance of effective project teams with the right all public. People can get the balance of technical and project management information on the official Web skills. For example, Akio Shiibashi, the deputy site.” director of IT-Suica business development in Tokyo, reports that the technology behind the Jeffrey Liu, Planning Section Chief, Department of Transportation, Taipei integrated Suica rail smartcard was relatively straightforward. “The key to the successful implementation was the commitment of the project team to make it happen,” he says.14 IBM Global Business Services
  17. 17. City officials can look Conclusions • Treat transport as an integrated service, Cities around the world face common trans- moving from just managing infrastructures to global leading port challenges – from increasing congestion, to providing integrated services, making practices – and our safety concerns and aging infrastructure to a this style of management a team sport thatfive recommendations lack of funding and increasing environmental involves collaboration among customers,– for guidance as they impacts. Like their colleagues in city admin- suppliers and all levels of government. implement integrated istration and government, transport officials • Adopt a customer-centric approach to ITS solutions. are starting to implement “smart solutions” transport strategy and execution. They to address these challenges and provide understand and influence consumer improved mobility in their cities, better services perceptions and behavior patterns, share for citizens and a more cost-effective transport information in a transparent way and are network. committed to delivering improved customer satisfaction. Intelligent transport is about more than imple- menting discrete technologies. Leading cities As cities move toward more integrated are using these technologies to evolve their systems and sharing more information with transport systems from single modes to inte- their customers and stakeholders, consumers grated ones, improve transport services and enjoy faster and better services, cleaner air, provide an improved value proposition to greater alignment and collaboration among customers. City transport officials can look to transport stakeholders, and pride in knowing global leading practices – and our five recom- that their cities are becoming more economi- mendations – for guidance as they implement cally competitive than before. integrated ITS strategies. Our research suggests that innovative city offi- cials exhibit a common set of attributes. They: • Provide leadership and vision in transforming their network of modes of transportation through crossmodal collaboration. They look far into the future to develop broad strate- gies, yet also provide leadership to help ensure short- and medium-term plans are executed. 15 Intelligent transport
  18. 18. About the authors Contributors Jamie Houghton is the IBM global leader John Hawkins, ITS leader, Asia Pacific, IBM of Intelligent Transport Systems, IBM Global Global Business Services Technology Services, where he oversees the Gunnar Johansson, ITS leader, Europe, IBM development and delivery of ITS solutions. Global Business Services Jamie has more than 20 years of experience Naveen Lamba, ITS leader, Americas, IBM in the development of complex transporta- Global Business Services tion infrastructure, systems and services. He is a regular platform speaker on the subject of Susanne Dirks, IBM Center for Economic intelligent transport. Jamie can be reached at Development, IBM Global Business Services jamie.houghton@uk.ibm.com. The right partner for a changing John Reiners works for the IBM Institute for world Business Value, where he researches, writes At IBM, we collaborate with our clients, and deploys studies on issues of importance bringing together business insight, advanced to the public sector. He has 20 years of expe- research and technology to give them a rience as a managing consultant, including distinct advantage in today’s rapidly changing roles in business transformation programs for environment. Through our integrated approach both the public and private sector. John can to business design and execution, we help be reached at john.reiners@uk.ibm.com. turn strategies into action. And with expertise Colin Lim is geography leader of Intelligent in 17 industries and global capabilities that Transport Systems, IBM Global Business span 170 countries, we can help clients antici- Services, where he coordinates the develop- pate change and profit from new opportunities. ment of ITS opportunities and solutions in the growth markets. Prior to joining IBM, he spent several years in the Singapore Government, including a posting to the Ministry of Transport where he had responsibility for land transport policy.16 IBM Global Business Services
  19. 19. References 7 “Megacity challenges: A stakeholder 1 Handwerk, Brian. “Half of Humanity Will perspective.” A research project conducted Live in Cities by Year’s End.” National by GlobeScan and MRC McLean Hazel, Geographic News. March 13, 2008. sponsored by Siemens and written http://news.nationalgeographic.com/ by the Economist Intelligence Unit. news/2008/03/080313-cities.html 2006. http://viewswire.eiu.com/index. 2 asp?layout=ebArticleVW3&article_ Research was carried out on 57 cities, id=1841880969&channel_ looking at a range of economic indicators id=778114477&re&rf=0 and evaluating their transport systems. We 8 then carried out structured interviews in 15 Carisma, Brian and Sarah Lowder. of these cities. We selected cities to include “Economic Costs of Traffic Congestion: A a geographical spread, as well as different Literature Review for Multiple Locations.” stages of economic development and 2008. http://greenconsumerism.net/ maturity in transport infrastructures and intel- wp-content/uploads/2008/08/the-cost-of- ligent transport systems. traffic-congestion.pdf 3 More detailed structured interviews were Please also see Caldow, Janet. “Feeling carried out with senior transport and city the pain: The Impact of Traffic Congestion officials in the following countries: Australia, on Commuters.” IBM Institute for Electronic Chile, China, Egypt, Italy, India, Japan, Korea, Government. May 2008. http://www-01.ibm. the Netherlands, Singapore, Sweden, Taiwan, com/industries/government/ieg/pdf/feeling_ the United Kingdom and the United States. the_pain.pdf 9 4 Peirce, Neal R. and Curtis W. Johnson with Mobility in Cities Database. International Farley M. Peters. “The Century of the City: Association of Public Transport (UITP). http:// No time to lose.” The Rockefeller Foundation. www.uitp.org/publications/Mobility-in-Cities- 2008. Database.cfm 10 5 Handwerk, Brian. “Half of Humanity Will “Transport 2025: Transport vision for a Live in Cities by Year’s End.” National growing world city.” Transport for London. Geographic News. March 13, 2008. 2005. http://news.nationalgeographic.com/ 11 “Intelligent Transport Systems Action Plan: news/2008/03/080313-cities.htm Frequently Asked Questions.” European 6 “City GDP e-forecasting.com. http://www.e- .” Commission. http://europa.eu/rapid/pressRe- forecasting.com/City_GDP .html leasesAction.do?reference=MEMO/08/789& format=HTML&aged=0&language=en&guiL anguage=en17 Intelligent transport
  20. 20. 12 19 “Facts and Results from the Stockholm Trial.” For the United Kingdom, see: “Transportation The Stockholm Experiment. http://www. Innovation Fund.” United Kingdom stockholmsforsoket.se/upload/Hushall_eng. Department for Transport. http://www.dft.gov. pdf. Further information on Stockholm’s uk/pgr/regional/tif/ transport strategies can be found on the For the United States, see: “Urban Stockholm Public Transport Web site: http:// Partnerships.” U.S. Department of sl.se/Templates/SubStart.aspx?id=1906 Transportation Federal Highway 13 “About the Stockholm Trials.” The Stockholm Administration. http://www.upa.dot.gov/ Experiment. http://www.stockholmsforsoket. For Singapore, see: “Singapore Urban se/templates/page.aspx?id=2431 Transport Solution.” Singapore Land 14 “Public transport in Stockholm.” Transport Authority. http://www.lta.gov.sg/ltif/ AbsoluteAstonomy.com. http://www. index.htm absoluteastronomy.com/topics/Public_ 20 Cheatham, Benjamin and Walter Oblin. transport_in_Stockholm “Private-investment opportunities in public 15 “Transport vision for a growing world city.” transport.” McKinsey Quarterly. April 2007. Transport for London. November 2006. 21 For London, see: “Getting London to Work: 16 From an interview with senior transport How new road user charging schemes officials at Santiago’s Traffic Control Center. can help London’s economy.” London First. Unidad Operativa de Control de Tránsito December 2006. http://www.london-first. (UOCT). co.uk/documents/041_Getting_London_to_ 17 “Public Transport, Overview: Changes ahead Work_-_executive_summary.pdf. for your EZ-Link card.” Singapore Land For Stockholm, see: “IBM helps city of Transport Authority. http://www.lta.gov.sg/ Stockholm reduce road traffic by 25% in one public_transport/index_pt_overview.htm month.” IBM. March 2006. http://www-03. 18 “Specification for Contactless ibm.com/solutions/sensors/us/detail/news/ e-Purse Application (CEPAS).” S204720N47377R59.html 22 Infocomm Development Authority Murphy, Kim. “Oregon considers subbing of Singapore. http://www.ida.gov. mileage tax for gas tax.” Los Angeles Times, sg/Programmes/20061214105256. January 4, 2009. aspx?getPagetype=40 23 “Resolving the ‘privacy paradox,’ Practical strategies for government identity manage- ment programs.” IBM Institute for Business Value. 2008. http://www-935.ibm.com/ services/us/index.wss/ibvstudy/gbs/ a1030592?cntxt=a100005518 IBM Global Business Services
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