In this white paper, we discuss the four most pressing areas in transportation that require industry-wide innovation and how the crowd can be a resource to solve concerns in these areas: - Traveler Experience - Costs - Security and Safety - Technology

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INNOVATION IN TRANSPORTATION
IDEASCALE WHITE PAPER

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Ten years ago, the thought of real-time
navigation apps, bike shares, and levitating
high speed trains were all but science
fiction. Yet, as technology has become more
sophisticated, these once-radical ideas are
now a reality.
In 2010, the Port Authority of Allegheny
County (PAT) and the city of Pittsburgh, PA
took a devastating hit. A combined $50
Million deficit and a lack of transportation
funding on the state level resulted in a 35% cut to its public transportation routes along with
500 of its employees.1
County residents responded with frustration and anger. Allegheny
County is home to 1.2 million residents and an additional 95,000 students, almost half of
whom ride the bus.1
Pittsburgh's landscape — a mix of circuitous city planning and suburban
sprawl – is not ideal for a largely, pedestrian blue-collar town making public transportation a
necessity among residents. In spite of meetings and protests, the cuts were carried out and
left many commuters stranded or unaware of how to navigate the limited bus routes. This is
how fast and impactful any sort of change in the transportation industry can be.
Within that same year, Tiramisu was born—a crowdsourcing app born out of a dire need to
answer one question, “when is the bus coming?” The app was developed by researchers within
the Rehabilitation Engineering Research Center on Accessible Public Transportation, a
federally-funded joint initiative between Carnegie Mellon University (CMU) and the
University of Buffalo.2
By utilizing the GPS signal on your phone, the app prompted riders to
report when and if the bus arrived and whether it was overcrowded or empty. This reportage
created a crowd-powered tool that provided useful information in predicting the arrival of
your designated bus. The app not only gained the recognition of the Federal Department of
Transportation, but it also helped to change the landscape of PAT's website. The increased
functionality of the website is in part due to the progressive domino effect that occurs when
technology demands shift and customer needs are better promoted.
In this white paper, we will discuss the four most pressing areas that require industry-wide
innovation and how the crowd can be a resource to solve concerns in those areas.
2INNOVATION IN TRANSPORTATION
Introduction

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3INNOVATION IN TRANSPORTATION
The evolution of PAT’s infrastructure is not unique to Pittsburgh, PA. Whether the focus is
public transportation, air travel, or trucking, we can expect the transportation industry to
sustain periods of disruptive change. As these changes persist, the transportation must
continue to innovate in order to maintain cost efficiency, competition, and sustainability.
The areas most receptive to this approach are the traveler experience, cost estimation,
security, and technology.
Traveler Experience
The traveler experience is one of the most crucial aspects of the transportation industry.
Reaching your customer and selling to them can be any transportation organization’s
largest expense. That said, a loyal customer can increase your profits tenfold. The ubiquity
of social media is a blessing and a curse, as it creates numerous outlets for customer
feedback. In turn, both satisfied and dissatisfied travelers have the ability to have their
voice heard, shared, and documented. Thus, it is in a company’s best interest to work to
exceed traveler satisfaction. There are three factors driving this trend: an increase in
customer expectations, an increase in competition among transportation companies, and
an increase in public sector interest in improving transportation.3
Traffic jams and delays
through public transportation and highways increase traveler frustration while decreasing
productivity and competitiveness of cities. How can local governments and commercial
companies smartly invest in their mass transit systems and improve their constituents’
satisfaction?
One industry where customer service proves to be vital is the airline industry. In a time
when fuel prices are low and the economy is improving, more and more people are flying.
However, profits are still low. The profit margin for most carriers is less than three
percent.4
Improving customer service can be a cost-effective way of attracting and
keeping customers. For example, Ryanair, a budget European budget airline, is notorious
for their terrible customer service and traveler complaints. One year ago, CEO, Michael
O’Leary, stated that although profits continued to rise, their current business model with
no regards to customer service was unsustainable. Since this public admission, “Ryanair
has implemented a number of measures to improve its image and address the impact that
poor customer service has had on sales.”4
An increased focus on customer service was a
significant cultural change for Ryanair, but proved to be sustainable in the long-run.

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4STAYING PROFITABLE, INNOVATIVE, AND RELEVANT: THE IMPORTANCE OF EMPLOYEE ENGAGEMENT
As we discussed in our introduction, high costs present a real, measurable concern in both
the private and public sectors of transportation. Often times, improving a product or a
system includes a sizable investment by a firm. Yet, creating a new hard product might not
always be the right solution. It is unrealistic for a city that is dealing with heavy traffic to go
out and build more roads every time there is a traffic jam. Likewise, an airline carrier
cannot develop a new plane model every year. Alternatively, cutting costs may not prove
to be a sustainable long-term business model. This approach is most often executed in
mass lay-offs.5
This might prove to work in the short term, but more often than not, it
sacrifices quality and morale.
The better solution is for organizations to minimize their costs, while maintaining
efficiency, effectiveness, and a more sustainable strategy. Solutions for lowering costs can
include investing in technologies, talent, and analytics. These may be more expensive on
the front end, but prove to be valuable throughout its lifecycle. The Intelligent
Transportation Systems (ITS), created
through the Department of
Transportation (DOT) Research and
Innovative Technology Administration,
works to “advance transportation
safety, mobility, and environmental
sustainability through electronic and
information technology applications.”5
This initiative has led to improvements
in red light cameras, ramp meters, and
traffic signal coordination. In 2009, the
electronic toll collectors installed by ITS
reported more than $1 billion per year in
mobility benefits. These mobility
benefits which can be measured in
both dollars and quality of life far
outweigh the initial cost DOT
invested in their newest innovations.
Costs
Graph courtesy of Deloitte Report: Rethinking profitable
growth in the transportation industry 5

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5INNOVATION IN TRANSPORTATION
In recent history, stricter safety guidelines have been passed to improve security and
streamline regulation. While some travelers may view these changes as an inconvenience,
these rules play a significant role in protecting travelers in the face of terrorism and even
natural disasters. As a result of collecting more personal data, the industry became more
vulnerable to cyber attacks. These situations have huge implications both directly and
indirectly on citizens. Cyber theft and data breaches are becoming more prevalent and
create a sense of fear among travelers. It is ironic that the result of one safety measure
would cause virtual safety to be compromised. Cyber crime is estimated to cost the global
economy around $445 billion a year.6
Since it’s clear that no company is immune to this
threat, implementing risk management strategies is essential in protecting both the
company and the travelers.
Technology
Every year, technological innovations have appeared across the transportation industry.
Technology solutions are applied to data mining, safety, and increasing customer
satisfaction. While most of these solutions have been beneficial to both firms and
travelers, technology can also raise new concerns. One example is in cargo shipping. The
rise of 3D printing has led to a decrease in business for shipping companies.7
Further,
smaller companies and governments on limited
budgets cannot always compete on the
technological front. The cost of finding,
implementing and using new technologies is
often unfeasible for companies. It is important
for organizations of all sizes, however, to be
looking for the market edge. Organizations can
achieve this goal through constant dialogue with
their customers and employees. Each of these
groups can offer insight into what kinds of
technological advances are appropriate for
them.
Security and Safety
Prepare for shifting technology trends

6.
Using the Crowd
Crowdsourcing is a growing trend for many
organizations who are looking to harness
the power and knowledge of the people in
order to create thoughtful innovations.
“Open innovation” was popularized by
Henry Chesbrough, to describe using
internal and external knowledge to
accelerate the rate of an organization’s
internal innovation. In practice, this creates
an open, collaborative platform in which
everyone can participate in solving a
problem. In the transportation industry,
both employee and traveler voices provide
invaluable insight and value to a company’s
strategy.
Amtrak, a train service company, recently used the opinions and ideas from the crowd to
better improve service to their customers. Amtrak used IdeaScale to reach out to customers
and industry professionals to complete their project.8
Types of feedback, technology
communication, and feedback response were the three areas that Amtrak looked into
improving. Amtrak successfully implemented this feedback which resulted in a mobile-
enhanced site that provides real-time status of trains. Their newer site design also lends
itself to more transparency when it comes to discounts, travel rewards, and tips for frequent
customers. Like PAT, Amtrak has come a long way in mirroring the more dynamic innovation
of its competitors.9
6INNOVATION IN TRANSPORTATION
Sample idea submission form from OneBusAway

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Using the power of the crowd to harness ideas for
problem solving is an efficient and effective strategy.
The transportation industry, across both public and
commercial sectors, faces increasing competition and
concerns. In order to differentiate themselves in the
market and provide the best service for users,
organizations need to rely on innovation to stay relevant and
competitive. An innovation platform, such as IdeaScale, provides a
platform for open communication and idea collection. Implementing IdeaScale into your
company’s strategy can improve employee engagement and elicit new solutions to old
problems. IdeaScale is easy to utilize, and with innovation experts by your side, your
organization will be led to the forefront of innovation. Learn more about what IdeaScale can
do for your organization here.
INNOVATION IN TRANSPORTATION
1. http://triblive.com/x/pittsburghtrib/news/education/
s_690913.html#axzz3u4g0lBVf
2. http://www.post-gazette.com/business/businessnews/
2012/06/29/CMU-spinoff-gets-Dept-of-Transportation-
grant-for-Tiramisu-transit-app/stories/201206290151
3 https://assets.kpmg.com/content/dam/kpmg/pdf/2014/12/
transport-perspectives-nov-2014.PDF
4. http://www.dailymail.co.uk/travel/travel_news/
article-2813863/Controversial-Ryanair-boss-admits-no-
frills-carrier-nicer-customers-sooner.html
5. http://www2.deloitte.com/content/dam/Deloitte/us/
Documents/consumer-business/us-cb-transportation-
trends-031915.pdf
6. http://www.computerweekly.com/feature/Cyber-crime-
what-every-business-needs-to-know
7. http://www.strategyand.pwc.com/perspectives/2015-
commercial-transportation-trends
8. http://www.tcrponline.org/PDFDocuments/
tcrp_rpt_179.pdf
9. https://opendot.ideascale.com/a/ideas/top/campaign-filter/
active/tags/data+amtrak+open+transit+gfts
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Conclusion