“Deregulation of the rail operation market”

© 2015 IBM Corporation

“Deregulation of the rail operation market”

How to manage Ticketing & Reservation for multiple operators?

April, 28 2015

Ticketing and Reservation IBM PoV


About me

2

Lorenzo Soggiu

IBM

Global Business Services

Partner


Phone : +39 06 596 64646

Mobile Phone + 39 - 335 7248314

email: lorenzosoggiu @ it.ibm.com


Agenda

Main Ticketing and Reservation Trends

Deregulation from the “Passenger- facing” ICT perspective

IBM experience on Pico as Ticketing & Reservation Solution

–Multi Company

–Multi Modality

–Infomobility

Next Challenges

Ticketing and Reservation IBM PoV3


• Increased competition for customers is forcing

railways to enhance their customer focus

• Long term competitive threats are coming from

autonomous vehicles (sharing economy),

crowdsourcing for ride-sharing applications

• Other major trends – Mobile, API Economy –

are all factors in customer centricity

• Shared data between business units is the

major internal impediment to a 360 view of

customer and the ability to provide enhanced

and relevant information to travelers

• Biggest winners could be the smaller, niche

start-ups who compete for the profitable O-D

Pairs

CRM and Loyalty services and features will

continue to be he basis to compete, but the

capability to operate in a “social business” is the

key differentiator to success4

Customer Centricity



• Transport players are fighting for ownership of the

travel experience with travelers

• Railways focus is to innovate quickly, and

Innovation is on the agenda

• Poor use (recognized and improving) of customer

data is inhibiting railways from providing the

value added, personalized services that travelers

are now expecting

• Railways need to establish partnerships and

expanded services as a way of differentiating

• Not related transport players (i.e. Google) are

working to provide added value services to

capture and steer customer transport needs.

• Interoperability and multimodal solutions can enable

Railways to compete with “informed” and

“instrumented” customers. Capability to collect

and manage Infomobility data can support Railways

to keep customer travel habits

5

End-to-end Journey is now key to retaining Rail customers



• Mobile is the first amongst equals for Omni-

channel application development

• Railways are innovating in passenger rail on

API’s, multi-modal applications and building out

application eco-systems

• Freight Railways are using mobile for work

order reporting and maintenance updating

(Apple – Network Rail) and for Rail Engineers

Scheduling (Apple – SNCF)

• Geo-spatial awareness is important for real-time

delivery of contextually mature applications (on-

train, station, etc…)

• A Mobile strategy requires Railways to share

information and make customer independent in

the trip arrangement and re-planning.

6

Mobile, Mobile, Mobile


Excellence in customer service

Support, Services & Commerce

MY Companion

Improve omni-channel sales

Informed Planning, Booking and Ticketing

MY Travel Planner

Improve customer engagement

Loyalty, Engagement and Analytics

MY Travel World

Deliver to the promises

Individualized real-time updates

MY Travel Assistant


Agenda




–Multi Company

–Multi Modality

–Infomobility

Next Challenges



Deregulation from the Passenger-facing ICT perspective


• Leveraging deregulation means a change in architecture, not just in functions or

features. ICT systems in this area must be conceived fundamentally as

distributed, networked frameworks

• Ticketing and Reservation systems evolve to become the Rail network’s

"operating system”, or platform, that provide independent application developers

with a standard digital abstraction of the underlying rail system.

• The platform is a digital computable model of the Rail network and its assets. The

model is updated as the network expands integrating non-rail modes of

transportation and the extensions become available to applications.

Application developers are insulated from the ‘mechanics’ of inter-modal network

integration.

• Passenger facing ICT should finally:• Leverage ,as with any “operating system”, on platforms configurable and therefore

support multiple locales transportation providers and Companies.

• Provide an open, interoperable ICT enabled abstraction of their transportation system

to Customers and give them the tools to construct their own ticketing programmes,

tailored to their own use of mobility in their own environment.


Agenda




–Multi Company

–Multi Modality

–Infomobility

Next Challenges



The IBM Solution for new generation Rail Passenger Service is a modular and open design The architecture is based on open standards and industrial software products. IBM is cooperating

with Rail companies and Open Travel Alliance.

Components can be combined with parts of legacy systems: this allows phased and low-risk

transition plans

All components have been designed for the specific needs of the Rail industry, not adapted from

airline


Heart beating of

the “ecosystem”


PICO implemented Industry Best Practices along with several Innovative features

Business rules and parameters

configuration

Open and standard Interface

Self governance and fast time-to-market: easy to react at

market challenges with price and promotion

Industry Best practices functionalities

(Electronic Tickets, Best Fare,

Seat Map, etc…)

Channel’s Business Logic Independency

and Seamless Integration

Commercial levers to improve customer experience and

reduce ticketing operational costs

Enable to introduce new or modify channels behaviors by

configuration and avoiding to modify business services

Flexible Partnerships: simplification to introduce new

distribution channels, services and products

Customer-Centric Sales and Services

Generate commercial campaigns for dedicated target and

set rules to “direct” sales process according to customer

profiles and buying behavior

•In 2012 Sipax Travel Solution Engine ( the hearth of Pico) won the European Community prize on Intelligent

Mobility for its innovative and breakthrough solution.

Travel & Transportation – PICO as Smarter Planet initiative

11 Ticketing and Reservation IBM PoV


Agenda




Multi Company

Multi Modality

Infomobility

Next Challenges



Multicompany - Models


Characteristics Second Contact Role/Relationship

By Issuer

• Logo of the Issuer

• Seq. Number of the Issuer

• Invoice by the Issuer • Across Channels • Issuer perceived as Traveller Respons.

• Revenue Transfer • By the Issuer Only • Revenue Transfer by clearing

• One ticket

• Single Payment

By Product Owner ( as Travel Agency)

• Logo of the Owner

• Seq. Number of the Owner • Across Channels

• Invoice by the Owner • By the Owner only • Prod. Owner perceived as Traveller Respons.

• Two tickets • Contract Provisions

• Single Payment

Multicompany as collaboration :

– End to End collaboration, multimodal

– Coordination by National Authority, Integrated Partnership, Single Provider

– By Issuer & by Products


Extended Journey Planner – Multi Modality

• A core feature of the solution is the ability to leverage on advanced operational Search Engine for

extended travel (from about 50.000 possible combination to 10 in 0,5 seconds)

• Performance is optimized to enable complex journey results to be displayed quickly

• Offers solutions according to flexible business rules and manages real-time events such as train delays

(when available)

• Able to manage several networks for different transportation providers into an interconnected network

• In 2012, the Travel Solution Engine (the heart of Pico) won the European Community prize on

Intelligent Mobility for its innovative and breakthrough solution.

C

E

F

GD

D 09:00

A 13:00

D 13:10

A 11:00 - D 11:15

BA

Home Final

Destination

A 13:30

Train Station

Car Parking @

Train Station

Car Sharing

A 09:30

D 09: 40Train

Train

Bus/coach

30’

90’

A 11:10 - D 11:20

80’

A 11:20

D 11: 30100’

Train

100’

Train

120’

TaxiMetro/tram

20’

100’

Key

A- Arrival

D- Departure

Path A-C-F-G-B represents the best

solution to service the customer’s

integrated journey



Single Ticket for Intermodal Trips

C GD BA

Car

Sharing

Parking

Final

Destination

Train

Station

Car

sharingTrain TaxiMetro

Car Parking

Train Station

• Entire intermodal trips can be ticketed using a single e-Ticket by adopting an electronic

ticketing model such as SMARTCARD

• Different ticketing and validation steps can be managed and integrated into a unique

intermodal solution

1. Ticketing at home

via PICO Web Site

5. PICO SmartCard

check-in/out at

Gates and

Lounges

2. PICO SmartCard

Identification to

pick-up and

charge

3. PICO

SmartCard

charging at

Kiosk

4. Onboard ticket

control by

smartcard reader

Metro

Station

6. PICO

SmartCard taxi

pre-paid fare

check



Infomobility-Extended Journey Re-Planner (implementing)

• Departures and arrivals information can be integrated with real time information about estimated delays

to the planned trip

• Long trips can be rescheduled taking into account the delays and disruptions

C

E

F

GD

D 09:00

EA 13:10

ED 13:20

A 11:00 - D 11:15

BA

Home Final

Destination

EA 13:40

Train Station

Car Parking @

Train Station

Car Sharing

A 09:30

D 09:40Train

Train

Bus/coach

30’

90’ ± 20’

EA 11:30 - D 11:20

80’

A 11:20

D 11: 30100’

Train

100’

Train

120’

Taxi

(rescheduled)

Metro/tram

20’

100’

Key

EA- Expected Arrival (updated)

ED- Expected Departure

(updated)

Road Car

parking

Taxis Metro

Tram

Train Electric

cars

Bikes Bus/coach

Real Time

Transportation

Services

Information

A-C-D-G-B path is the new best

solution to serve the customer travel

integrated journey request



Agenda




–Multi Company

–Multi Modality

–Infomobility

Next Challenges



Next Challenges – The Social Era«Social» is no more entertainment only. People is always connected


European community started to work on mobility and

interoperability standards with dedicated programs such asHorizon 2020 and Mobility for Growth 2014-2015. Having a

platform designed for interoperability, we are already

looking forward to theseinitiatives in order to offer the

best experience in interoperability, intermodality

and infomobility

Car pooling, car sharing, scooter pooling diffusion is

shaping new economy model and the behaviourof the traveller (sharing

economy, eco-compatibility)

New technologies on localization indoor/outdoor,

on car2car communication, open new

scenarios for the public companies and

governement to serve theircitizens in a more

complete way

Cognitive computing, plus big data management and

cloud are dramaticallyimproving IT capabilitiesto support new models

and needs


Thank you !!!

19

Lorenzo Soggiu - IBM

Global Business Services Partner


Mobile Phone + 39 - 335 7248314

email: lorenzosoggiu @ it.ibm.com

“Deregulation of the rail operation market”

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