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Governments and industry players are signalling that the time is right for the deployment of increasingly advanced intelligent transportation systems. Both recognise and many have indeed realised measurable returns on investment from ITS.
Public transportation agencies are in an increasingly difficult position. Reeling from the effects of global recession, they are charged with the seemingly contradictory goals of reducing operational and capital expenses while at the same time improving the experience and satisfaction of the public. Compounding the challenge is the increasing pressure to accomplish all of these goals while reducing and measuring environmental impact. Increasingly, the private sector is being tapped to provide assistance.
In recent months big players like62 IBM, 1968 Accenture, 1691 Google, 189 Siemens, 1976 CSC, 1984 Verizon, AT&T, 1974 BT, 1983 Telecom Italia, and of course 1028 Cisco have been making large investments to develop innovation around the transportation space. IBM for example has been highlighting its London, Stockholm and Queensland tolling contracts which are sure to represent what should be the beginning of very interesting and compelling business models that others in the industry will seek to replicate. We can also expect to see more joint business opportunities developing, such as the partnership between Cisco and IBM to deploy video surveillance for the 1000 Chicago Transit Authority. There are currently thousands of global ITS opportunities at the root of the growing ITS market - most looking to derive operational efficiencies by collecting and creating systems using actionable data.
Because the value-added analytic capabilities are where the business benefits lie, complex data acquisition, monitoring, measuring and reporting capabilities will be essential. Firms that have experience with crunching and making massive data actionable are very interested in building out ITS applications and managing the design, development, deployment and operation of large, complex systems. There is big money here.
A number of well-known systems integrators have been making investments in ITS but we can also expect the proliferation of smaller firms representing a wide range of the technology and consulting spectrum to collectively invest hundreds of millions of dollars developing practices, architectures, methodologies and solutions around the intelligent transportation space that has, up until recent months, been dominated by a relatively small number of players.
For years, a handful of advisory services contractors have been providing advice to government on the development and deployment of ITS. Traditional players such as1971 Booz Allen Hamilton, 1975 CapGemini and 13 ACS have dominated this space. As the pie begins to grow, so grows the competition and new entrants. Expect other major players who currently have relatively small practices to begin to build organisations to offer professional and trusted advisory services in this space. Companies like 1979 Deloitte, 1981 KPMG and even McKinsey have, will, or are planning to build substantial ITS-specific consulting practices.
The car industry
The automobile companies have been playing in the ITS community for years and each approaches ITS in a manner that is as unique as the brands themselves. This may in fact be the problem: the industry, generally very slow and cautious, does not, with some notable exceptions, have a very good track record in terms of moving technological innovation from the test track to the road. In the past few years there has been tremendous progress in reducing the design-to-market cycle down from seven years, but there are still major disconnects between the vehicle development cycle, the ownership lifecycle and Moore's Law.
At the same time, thanks partially to US anti-trust laws, the auto companies are thinking of unique approaches to ITS that create differentiation and competitive advantage. Yet, the vehicle industry sees great promise in near- and real-time access to vehicle performance information; it also recognises a need to get mobility and convenience data into the car in a form that provides consumer value at low cost and weight.1959 GM, 278 Ford, 1731 BMW, Mercedes, 1686 Toyota, 838 Nissan, 1683 Honda and 1958 Chrysler have all done some very interesting cooperative and competitive research in this area. And while some stick to the adage 'Safety doesn't sell' others recognise that it does and have begun to deploy early-generation active safety applications. However, replacing all of the vehicles on the world's roads will take time. In the US, for example, there are 250 million registered vehicles and last year new registrations were in the low single percents.
The Europeans are also sending a message that they are serious about pursuing ITS solutions. The1690 European Commission and 374 Ertico - ITS Europe have invested significantly in cooperative mobility. CVIS, SAFESPOT and COOPERS are just three of the projects that will transform the landscape and improve the driving and commuting experience; CVIS is leading the way for multi-waveform communications leveraging cellular, wireless and DSRC communications that will enable onboard devices to choose whichever pathway is available and/or most appropriate for the application or message requirement.
ERTICO is not limiting its vision to the passenger travel but is also incorporating freight delivery optimisation technologies. Expect industry to take notice that these same benefits can be achieved through the same networks and systems that enable dramatic and measurable commuter improvements. Not only will we achieve global efficiencies in the supply chain but these efficiencies will result in improved visibility and savings to the shipping, wholesale and retail sectors while reducing congestion. Again this value will be reflected in the market, which is attracting investment in enabling networks, systems and applications.
The technology industry rightly believes that in partnership with government and private sector transportation-related companies it can unleash creativity and solutions that can dramatically transform and deliver tangible and measurable benefits for the commuter, consumer and industry. They also believe this can be done profitably.
It is important for both contractors and governments to consider that these systems ought to be designed and deployed holistically rather than in silo approaches that result in unnecessary duplication. Cisco, for example, believes that there should be an open, resilient, self-healing IP-based network that all of these applications are built upon. Industry sees huge business opportunity in this approach as new applications that are innovative, interoperable and evolutionary can be rapidly built and progressed to market. Government sees huge opportunity in that.
Moreover there are opportunities for both in the development of new business and revenue models that are only limited by the imagination. There is considerable creativity and innovation already being driven into the market, mostly as the result of government and industry partnerships.
Make no mistake. This market is huge out of economic necessity and will continue to grow. Money and the innovative things we can do with the data are proving to be a huge draw.RSS
Cisco's Paul Brubaker, former administrator of the
Governments and industry players are signalling that the time is right for the deployment of increasingly advanced intelligent transportation systems. Both recognise and many have indeed realised measurable returns on investment from ITS.
Public transportation agencies are in an increasingly difficult position. Reeling from the effects of global recession, they are charged with the seemingly contradictory goals of reducing operational and capital expenses while at the same time improving the experience and satisfaction of the public. Compounding the challenge is the increasing pressure to accomplish all of these goals while reducing and measuring environmental impact. Increasingly, the private sector is being tapped to provide assistance.
The internet: an evolutionary tool
Recent advances in technology, particularly wireless and internet communication technology, data management and analytics, combined with the desire to drive the internet into all modes of transportation, has unlocked the creativity of developers across the globe who specialise in creating Internet Protocol (IP)-based solutions. These developers are now directing their creativity to the transportation space. Globally, in the past year alone, we have seen hundreds of PDA and web-enabled applications taking publicly accessible data and converting it into valuable applications that can do everything from helping you plan trips to telling you how much carbon your commute will push into the atmosphere. But this is only the beginning.In recent months big players like
Because the value-added analytic capabilities are where the business benefits lie, complex data acquisition, monitoring, measuring and reporting capabilities will be essential. Firms that have experience with crunching and making massive data actionable are very interested in building out ITS applications and managing the design, development, deployment and operation of large, complex systems. There is big money here.
A number of well-known systems integrators have been making investments in ITS but we can also expect the proliferation of smaller firms representing a wide range of the technology and consulting spectrum to collectively invest hundreds of millions of dollars developing practices, architectures, methodologies and solutions around the intelligent transportation space that has, up until recent months, been dominated by a relatively small number of players.
Legal and consulting developments
Law firms, investment companies and consultancies are investing heavily in transportation and infrastructure practices. These investments are often a leading indicator of where so-called 'smart money' is going to be heading.For years, a handful of advisory services contractors have been providing advice to government on the development and deployment of ITS. Traditional players such as
The car industry
The automobile companies have been playing in the ITS community for years and each approaches ITS in a manner that is as unique as the brands themselves. This may in fact be the problem: the industry, generally very slow and cautious, does not, with some notable exceptions, have a very good track record in terms of moving technological innovation from the test track to the road. In the past few years there has been tremendous progress in reducing the design-to-market cycle down from seven years, but there are still major disconnects between the vehicle development cycle, the ownership lifecycle and Moore's Law.At the same time, thanks partially to US anti-trust laws, the auto companies are thinking of unique approaches to ITS that create differentiation and competitive advantage. Yet, the vehicle industry sees great promise in near- and real-time access to vehicle performance information; it also recognises a need to get mobility and convenience data into the car in a form that provides consumer value at low cost and weight.
Global similarities and differences
Transportation leaders across the globe, particularly those in Asia and Europe, have long recognised ITS's potential to improve the commuting and travel experience. As technologies advance, many of the pioneers in this industry, particularly in places like Japan, Korea and Singapore, have recognised that through the convergence of networks and multimodal data integration they can tell a much more compelling benefit story. For example, a single, unified communications network can enable traffic monitoring but can also tell operators about the health and well-being of public transport vehicles. This reduces outages and improves reliability while also reducing costs by enabling predictable maintenance. The same network can also allow an origin-to-destination multimodal fare-based system, again simplifying and reducing collection costs. It can also monitor the security and safety of the system, reducing the likelihood of incidents but ensuring quick, informed response in the reduced likelihood of an event. This is just the tip of the benefit iceberg.The Europeans are also sending a message that they are serious about pursuing ITS solutions. The
ERTICO is not limiting its vision to the passenger travel but is also incorporating freight delivery optimisation technologies. Expect industry to take notice that these same benefits can be achieved through the same networks and systems that enable dramatic and measurable commuter improvements. Not only will we achieve global efficiencies in the supply chain but these efficiencies will result in improved visibility and savings to the shipping, wholesale and retail sectors while reducing congestion. Again this value will be reflected in the market, which is attracting investment in enabling networks, systems and applications.
The technology industry rightly believes that in partnership with government and private sector transportation-related companies it can unleash creativity and solutions that can dramatically transform and deliver tangible and measurable benefits for the commuter, consumer and industry. They also believe this can be done profitably.
The watershed
We are right now at a market inflection point, where the convergence of technology, transportation and public expectation is gaining critical mass. In many ways, government has laid an excellent foundation of investment but now must consider the role it will play in deployment. This will determine how quickly innovative solutions will be deployed. The multi-billion dollar assumption on the part of industry is that global governments will invest to accelerate. Japan, Korea and Singapore have a long history of leading investment and realising tangible benefits from government investment in ITS. China, the Netherlands, Sweden, Australia and the UK have more recently committed to government infrastructure investments and in many cases have created new revenue streams for both governments and supporting contractors. The US, Germany and Italy have made considerable investments in R&D; widespread deployment lags but the market does not feel that will be the case for long.Complementing influences
Evidence suggests that considerable investment will be made in adjacent markets, such as safety and security, which will enable ITS deployment. For example, the safety and security community is interested in deploying infrastructure to address the asymmetric threat we face from both internal and external threats of violence within our public transportation systems. Consequently, governments have committed billions of dollars to mitigate risk through detection and deterrence while concurrently enabling the rapid and effective deployment of first responders. This has resulted in massive investments in sensor, security, situational awareness and the enabling observation and communication technologies.It is important for both contractors and governments to consider that these systems ought to be designed and deployed holistically rather than in silo approaches that result in unnecessary duplication. Cisco, for example, believes that there should be an open, resilient, self-healing IP-based network that all of these applications are built upon. Industry sees huge business opportunity in this approach as new applications that are innovative, interoperable and evolutionary can be rapidly built and progressed to market. Government sees huge opportunity in that.
Moreover there are opportunities for both in the development of new business and revenue models that are only limited by the imagination. There is considerable creativity and innovation already being driven into the market, mostly as the result of government and industry partnerships.
The pay-off
We have made significant progress in the years since President Eisenhower voiced a concern that government contracts risked becoming a substitute for intellectual curiosity. To the contrary, government and industry, working together, have and will continue to create a mutually beneficial environment that brings new levels of economic activity through the improved operation of our people and freight movement systems within new and exciting partnerships. Government and operators make and save money while reducing operational and capital costs; shippers benefit from better planning, visibility and movement of freight; and travellers enjoy safe, stress-free, sustainable transportation.Make no mistake. This market is huge out of economic necessity and will continue to grow. Money and the innovative things we can do with the data are proving to be a huge draw.RSS
