Are we there yet?How smart technology and connectivity are driving road and rail transport .

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“Transport has without doubt been the area where smart city ideas have had the most impact so far, and will most likely continue to be at the vanguard of high-tech developments in larger cities, not least because transport systems are among the more visible aspects of urban life and come under noticeable pressure as cities grow.”

OVUM, Smart Cities So Far, Dec 2014

Going from A to B without getting all at sea.All transport companies have the same aim: Getting people from A to B as reliably, safely and cost-effectively as possible.

But doing this in an increasingly competitive global marketplace is becoming more and more difficult. New legislation and regulation, combined with population increases and urban growth, are putting more pressure on already overstretched resources. At the same time, new technologies and growing consumer expectations are squeezing traditional systems and processes to their limit.

And the next few years are set to be the most challenging and exciting to date. No business in this day and age can afford to stand still.

Companies wrestling with out of date ways of working need to find ways to work smarter and deliver an even better service. That’s never easy while you’re dealing with day-to-day demands.

It can seem very daunting, but if you don’t start making moves now, you could very quickly find yourself being overtaken.

In this white paper we’ve outlined some of the common challenges the industry faces and highlighted how smart technology and connectivity could help not only to overcome these problems, but to open the door to new opportunities.

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Putting the passenger firstImproving passenger experience has become the single most important driving force for IT investment for transport operators – with customer-facing technologies like self-service kiosks, internet connectivity, real-time information displays, GPS systems, and contactless payment cards all coming into play.

Making sense of big data Analytics are being used to explore and make sense of the vast amount of data generated by sensors and other devices used for monitoring everything from traffic flow and track conditions to freight location and passenger waiting times.

Access to this level of detailed information provides the end-to-end visibility that is needed to improve operations, while behind the scenes, we’ve seen cloud and edge computing being embraced to help tackle costs and improve communication and collaboration.

Control systems and automationProviding the customer experience consumers expect and being able to act on insights from data depends on a flexible, reliable, agile networked IT platform to underpin operations.

The communications network has become absolutely critical to the smooth running of all aspects of life – and outages are not an option for transport operators.

90 per centof the world’s data has been created in the last two years.

All aboard: market trends and challenges

“As cars get smarter it’s estimated they will carry 200 sensors each. And by 2020, 40 per cent of all data will come from sensors.”Security: The Vital Element Of The Internet Of Things, Forrester Consulting, March 2015

The transport sector is focused on making journeys punctual and reliable within an increasingly regulated landscape. But there’s a need for significant infrastructure investment due to a growing – and ever more urban – population and the shift towards public transport.

Profitability is being squeezed from all sides, with increased public and political scrutiny over fares, competitive pressures and volatile fuel and infrastructure costs. There’s also a continuing need to maintain and improve safety, security and sustainability.

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People pressureThe global population continues to grow. For example, in the UK it is set to rise from 62.3 million in 2010 to 67.2 million by 2020 and 73.2 million by 2035.

The internet of things From smartphones and tablets to cars and streetlights, smart technology and joined up systems are creating an internet of things (IoT). This is the technology that is empowering consumers, transforming businesses and underpinning smart cities around the world.

Big data All of these smart gadgets and sensors generate data. Lots of data. The challenge is to find ways to gather, share, analyse and act on the insight that all this new real-time information gives you.

Cloud computingThe spread of connectivity, the computing demands of big data and the need to be able to move quickly – and scale operations up and down as required – has seen many organisations move from traditional communications networks to embrace the power, flexibility and agility of cloud computing.

Beyond the cloudBy leveraging resources that may not be continuously connected to a network such as laptops, smartphones, tablets and sensors, edge computing is pushing the frontier of computing applications, data and services away from centralised nodes, enabling analytics to occur at the source of the data.

Better connectionsDfT plans to provide 70% of train passengers access to faster broadband with speeds of up to 50mbps by 2019 and operators are using social media to support collaboration, address customer complaints and improve services.

Smart citiesBy bringing together smart devices, sensors, big data and cloud/edge computing, we’re starting to see the emergence of whole “smart cities” where decisions on traffic and transport – as well as health, education and environmental concerns – are made on the basis of the myriad information sources collected and analysed centrally.

IT and business trends

“Nearly 90 per cent of businesses expect the amount of data transmitted by their networks to increase “somewhat” or “significantly” over the next five years.” Security: The Vital Element of The Internet Of Things, Forrester, March 2015

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Mind the gap: the impact of smart technologyMobile technology and the internet of things are transforming the way people live, work, play – and travel. These smart, internet-enabled devices and joined up systems also open up a whole world of insight and opportunity – and are the foundations of new, more efficient ways of working. They can help put the customer at the centre of the operation and ensure a consistently excellent experience each and every time.

We’re already seeing IT and innovation investments powering change. The key now is to understand just how powerful these tools can be in this new connected world.

The organisations who can derive the most value from their connections − rather than just connecting the most devices to their networks − will be successful.

Network Rail plans to roll out high speed mobile

broadband to about 70% of passengers by 2019

Smart technology and connectivity are being used to tackle some of the challenges in the transport and travel sectors. But the outcome of all these initiatives has the potential to be much more than the sum of their parts – creating whole “smart cities”.

From smartphones to smart citiesThe Smart Cities Council describes a smart city as one that “gathers data from smart devices and sensors embedded in its roadways, power grids, buildings and other assets”. This data is shared over a smart communications system and used by smart software to create valuable information and digitally enhanced services.

An integrated transport infrastructure is at the heart of any smart city project. But smart transport is more about planning than technology. As Ovum points out: “it involves thinking intelligently about how different and disparate technologies can be employed in tactics that make up a coordinated urban strategy.”

And a whole new world of opportunitiesThings like smart ticketing and driverless trains are already well established in some cities, while sensor technologies are being used to monitor traffic flows and manage street lighting.

Smart ticketsSmart ticketing is becoming more widespread. The big benefit is of course the journey data analysis, which can be collected automatically and used to improve services and inform commuters. It also provides a real insight into infrastructure flows at different times, so planners know where and when to invest resources. And when that data is available on open platforms, it gives third parties the opportunity to develop additional applications and services to help customers.

Driverless trainsExtending automation is difficult, but the benefits go beyond obvious cost reductions. In a smart city, congestion can be managed more efficiently by having a central processor to coordinate trains and reduce delays.

Driverless carsAn intriguing concept, this is set to potentially transform the way we use our vehicles. Trials have already shown the potential for these vehicles and it’s envisaged as the technology evolves and becomes more intelligent, these could transform the roads we know and use today. Roadside technology as well as in car technology could be set to significantly transform to support these over the coming years. The information that cars transmit through sensors could be picked up by roadside sensors, changing traffic control measures, as well as feeding information back to the vehicle to change route or speed automatically.

Car telematics Cars are already in contact with manufacturers, and there will soon be commercial applications for smart cars such as roadside retail and services in this area. Google and Apple, together with car producers, are already fighting it out for control of the systems.

The road to retailUbiquitous wi-fi connectivity and city-wide sensors open the possibilities for new revenue streams – with more immersive, personalised advertising in stations and on street furniture, such as bus shelters. And of course, third-party access to big data is another potential revenue opportunity.

Keeping it all secure The security implications of IoT solutions, has raised concerns among decision-makers, who feel that the wide array of security risks will continue to threaten the IoT space.

This means that effective security is vital in the successful roll out of IoT solutions. Figures taken from the Forrester report highlight that security ranks highest, both in terms of importance (76 per cent) and in the level of challenge (58 per cent) it presents above all technology elements.

As a result many organisations are beginning to seek help from IT infrastructure or security solution providers to fill gaps and provide deployment assistance. Decision-makers need to understand the risk trade-offs of the IoT landscape and they are finding that third-party IT and security providers can help educate them on how best to use IoT devices within their organisation.

Looking ahead: the next leg of the journeyTVs, games consoles, radios and other connected devices are being joined by household appliances, heating systems and wearable tech. These devices and the connectivity that enables them will generate huge volumes of data – and data is set to become an organisation’s most valuable resource. It will highlight what is working, what needs improving and what has to change.

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Snapshot: Smart parking in Milton KeynesMilton Keynes Council together with the Open University, BT and other partners, has formed MK:Smart to accelerate the development of Milton Keynes as a smart city.

Among a wide range of smart city projects, a successful pilot has deployed sensors from Deteq at the city’s railway station to prove the feasibility of city-wide parking space optimisation.

Innovative wireless technologies are used to beam the sensors’ data to receivers on lamp posts, and that information is then analysed in the central MK Data Hub, which is currently hosted by BT.

The prize from full deployment will be a capital saving of at least £105 million, with reduced fuel use and vehicle emissions.

Smart city traffic management

It costs around £15,000 to create a new parking bay. If we built new ones when there are 7,000 unused we could be wasting truly significant amounts of money.

Brian Matthews, Head of Transport, Milton Keynes Council

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Beyond the smart cardWe’re starting to see operators introduce contactless debit and credit card acceptance, as it allows for more advanced fare calculations to be charged, specific to each customer.

The change in the devices we use – such as mobile devices through Apple Pay and wearables which are in their first generation today – will continue to expand the flexibility of payment options available to the customer. And the way we get charged will continue to evolve.

Automated “travel broker systems” could provide end-to-end journey planning and booking solutions, allowing a traveller to go from door to door on a single smart device itinerary and not have to make more than a single payment to cover the journey.

… and the smart carWhat will be really exciting will be seeing how these technologies revolutionise the way we live. This could play out as follows: Your autonomous car has been monitoring traffic conditions and knows you’re in danger of missing your 11am appointment.

The car sends a message to your smartphone telling you to leave home 30 minutes early. On the way, there is another incident, so the car works out alternative options by linking to the smart city’s database of train times, bike availability and walking routes.

It then drops you off and sends the rest of the instructions to your smartphone – a short walk to pick up a bike and a quick ride to the nearest train station. The car then messages you after your meeting so it can collect you and, as you’re going to be a bit later than planned, it tells your home hub to delay putting the heating on and turn down the casserole you left in the oven…

Going further: the customer journey of the future

All of these initiatives, taken together, have the potential to be much more than the sum of their parts. They will help businesses not only meet current challenges, but also help support new opportunities.

Getting the right connectivity and smart services – and a strategy to deliver on the promise they hold – in place now could be the foundation for a complete transformation of the way transport and travel businesses work.

We’re starting to see how smart technology and connectivity are being used to tackle some of the challenges in the transport and travel sectors. But it’s only when we look a bit further ahead can we really see where this is all heading.

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Meeting the challenges of the next few years, and beyond, will require an innovative approach to technology. It’s not just about getting the right technology in place, it’s about the art of connecting – exploiting the potential of new digital trends to deliver stunning business outcomes.

BT and Cisco are at the forefront of this innovation. We’ve been working together for 25 years. And right now, we’re helping make the vision of Smart Cities and connected utilities a reality.

BT has a long heritage in delivering national critical infrastructure and mission critical systems for the most demanding public and private sector clients. And it’s one of the largest technology investors in the UK, innovating with customers, partners and universities. The company has spent

more than £4bn on R&D over the last five years and shares the fruits of that investment with its customers.

Similarly, Cisco is leading the way in the development of the internet of everything, using cutting-edge technology to transform the way we live, work and play – and to drive untapped potential value for businesses.

As well as our significant joint investment in research and development, we’re innovating in cloud, collaboration and network infrastructure – and defining new solutions such as Hybrid Cloud, Hosted Unified Communication Services, Network Functions Virtualisation (NFV) and Software Defined Networks (SDN).

Together, we’ll help you design the future with confidence.

About BT and Cisco

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Come and see us Visit our innovation showcase at Adastral Park, Ipswich or come and see us at our showcase in BT Centre, London. Alternatively you can view our virtual showcase online: www.globalservices.bt.com/virtualshowcase

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October 2015 – PHME 76312

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