It Is Time for Transportation to “Move” on the IoT
Already on an exponential trajectory, the amount of information available to the transportation industry is accelerating from “hockey stick” growth to “straight line upwards.”
New service bundles, cost reduction strategies, ways for users to self-manage, and opportunities for collaboration are on the horizon as a result of the insight gleaned from the ability not just to understand what we are doing, but how we are doing it.
What began with a transition to mobile from primarily web-based technology has continued to progress and converge with the notion that our objects can in fact get “smarter” and become better managed by connecting to the networks that travelers and commuters increasingly rely on.
The IoT represents the opportunity not only to improve operational efficiencies and reduce costs, but also to drive insight to a new extent. Automation and data collection/analysis are the major opportunities for transportation.
Built on an interconnected system of sensors, analytics (real-time), advanced algorithms, and inter-machine communication, this phenomenon will enhance the way business decisions are made in the transportation industry.
A European nation blazes a trail for IoT-enabled transportation
Linz AG operates the public transportation system among many other public services in the city of Linz, a popular tourist destination in Austria. The leadership at Linz AG wanted to upgrade the tram system to improve safety at their stations, increase coordination between trams, and ultimately deliver an innovative passenger experience.
Linz AG decided to develop a more connected system by upgrading analog systems and serial connections to digital and fiber connectivity. Sensors were installed on trams to wirelessly monitor temperature, electricity consumption, breaking distance, and weight. Video security monitoring, VoIP capabilities, wireless network controllers, and access points on trams and stations were also added during the transformation.
Linz AG used sensor data from trams to reduce carbon dioxide emissions by 98 tons in the first year and decrease energy consumption by ten percent. Data from sensors can be analyzed in real time, allowing Linz AG to optimize traffic flow, improve schedule accuracy, and manage capacity better. The sensors on the ticketing systems and trams allowed remote monitoring from a central location, reducing unnecessary maintenance and increasing uptime for trams. In doing so, Linz AG improved passenger convenience and experiences by offering free public Wi-Fi access and real-time updates on delays.
Transportation CIOs can support digital by “driving” IoT
Planning a digital transformation will continue to be a collaborative effort between all functions of the business and the CIO must engage other business leaders to create a truly successful strategy. A key component of digital transformations moving forward will be the IoT. Even if it is not feasible to own the whole digital strategy, transportation CIOs must act now to drive the IoT components.
The IoT has increased in readiness and value, to the point where most organizations should consider simple pilots in order to lay the foundation for upcoming high-value implementations. The time for speculation about the IoT has passed; stop talking about it and start doing something.
Many IoT implementations today are of low value, but also low cost. However, long-term value will be very high. The connectivity of every object is a universal trend and organizations that begin projects with moderate value today will be in a better position to take advantage of high-value projects in the next five years.
Recommendations
Use policy to get ahead of privacy concerns. There are concerns about the data being accessed for travel and commuting purposes, this after all, is people’s movement and that makes people nervous. However, no user identification or verification is needed to run most devices. Furthermore, a majority of the sensors being produced do not have the memory required to access, store, and process personal data. There is no need to record who is doing what – use policy to ensure that insight remains on the aggregate level and proactively communicate this fact with the public to ease tensions.
Establish standards for interoperability. The major gap in IoT readiness is in standardization. Larger implementations will require integration across various IoT ecosystems. Fully integrated cross-vendor IoT implementations are largely in experimental stages today, but they are making progress and more complex IoT projects will be ready in a matter of years. This is especially relevant for the transportation industry where coordination with different players will be paramount lest people aren’t able to get where they need to go!
Secure the ecosystem. Lack of encryption between the device and network risks exposing data. Security is not often built into the devices. Many producers are more concerned with getting products onto shelves today. We are going to need a security layer between the sensors and where the data is aggregated to decide the following:
- ?What information is real?
- ?What information is ancillary?
- What information is dangerous?
Bottom Line
Transportation CIOs must make IoT a critical component of the organization’s overall digital strategy, as it blends the physical and digital worlds, and in doing so, blends IT and business. The insight obtained from how people are traveling, beyond just who is traveling, will help propel the transportation industry into the next level of customer experience, but not unless there are effective standards, security measures, and policies in place first.