Reimagining Transportation the IoT Way
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- Thomasine Webb
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1 Travel, Trasportatio, ad Hospitality Reimagiig Trasportatio the IoT Way Abstract I a icreasigly competitive busiess eviromet ad with sharply risig demads for passeger ad cargo mobility, the global trasportatio idustry is goig through a challegig time. Idustry players eed to look for iovative ways to improve operatioal efficiecies, cotai costs, ad retai market share, while urturig customer delight. The Iteret of Thigs (IoT) holds great promise i the trasportatio idustry, ad ca help pave the way for a 'smart' future. While coected ecosystems will help couter idustry challeges, stakeholder expectatio maagemet will be the key to esurig success i the loger term.
2 Travel, Trasportatio, ad Hospitality Bottleecks i the Trasportatio Idustry Globally, trasportatio systems are reelig uder the sharp growth i the umber of vehicles, estimated to rise from 1.1 billio i 2011 to 2.5 billio by 2050.¹ The ecoomic cost of the resultat cogestio is eormous the Uited States Departmet of Trasportatio estimates it to be aroud US $200 billio per year, for all modes of trasport cosidered together.² Apart from cogestio issues, the trasportatio ad logistics value chai is paved with bottleecks. Customer expectatios are costatly o the rise, ad the eed for future-proof itegrated offerigs is immiet Workforce optimizatio ad i-trasit visibility is critical There is icreasig pressure to improve throughput ad margis while reducig costs Regulatory obligatios are expadig, ad the share of regulatory fees ad tolls i total trasport costs will likely go up from approximately 10% to 15 25%⁴ Chages i idustry regulatios will force ports, aviatio, railway, ad truck maufacturers to esure evirometal sustaiability There is a pressig demad to focus o health ad safety i operatios The eed of the hour is a trasformatioal solutio, oe that ifuses kowledge ad itelligece across the etire trasportatio ecosystem. The IoT makes such a solutio possible. Characterized by coected platforms, pervasive computig devices, advaced mobile etworks, improved security, privacy protectio techologies, sophisticated data algorithms, ad simulatio ad visualizatio tools, a IoTdrive ecosystem is the aswer to our trasportatio woes. The Smart Trasport Promise Smart trasport has the capability to address all the challeges faced by trasportatio ad logistics players. It is ot a simple poit solutio, but a amalgamatio of digital techologies spaig a variety of domais, from trasportatio ad logistics to telecommuicatio, from automatio to machieto-machie (M2M) iteractios, ad from Big Data aalytics to Artificial Itelligece. Smart trasport aims to coect ad itegrate trasport ad other ifrastructure ito a iteractive system of physical thigs ad services. Ultimately, these digital techologies ca be used to solve the demographic, social, ecoomic, ad evirometal challeges related to trasport ifrastructure i developed ad developig regios.
3 Travel, Trasportatio, ad Hospitality Idetifyig Key Stakeholders for Collaborative Operatios The key stakeholders i the trasportatio ecosystem iclude: Busiess-to-busiess (B2B) customers Third party logistics (3PL) or logistics service providers (LSPs) Warehouse ad termial operators of equipmet Maufacturers or shippers While trasportatio ad logistics rely o a etwork of iterdepedet participats, most of them operate i silos today. The absece of itegratio implies the lack of ed-toed visibility i operatios. Smart trasport ca address these issues, provided the etire ecosystem shares iformatio, works collaboratively, ad implemets advaced techology solutios. All members of the ecosystem customers, providers, operators, ad shippers should be able to access relevat data i real time, ad use digital techologies such as mobility, aalytics, ad augmeted reality, to covert data ito actioable iformatio, isights, ad fially, wisdom. The Buildig Blocks of a Smart Trasport Solutio The key buildig blocks of a smart trasport solutio have to be mapped to the eeds of various stakeholders. These buildig blocks ca be itercoected through the IoT to improve the overall experiece. Smart vehicles Smart vehicles arguably form the epiceter of a IoT setup i logistics ad trasportatio, with trucks, plaes, locomotives, ad ships bristlig with embedded sesors ad processors. This is where most of the coditioig ad moitorig take place. Smart assets ad termials A tremedous amout of itelligece ad sesig capability ca be embedded i assets ad structures of the termials icludig: Mobile assets such as forklifts, yard tractors, cotaier hadlers, mobile craes, ad other equipmet.
4 Travel, Trasportatio, ad Hospitality Statioary or semi-statioary assets icludig gatry craes, coveyor belts, carousels, automated storage, ad retrieval systems. Termial structures ad igress or egress poits like dock doors, yard etry or exit gates, light poles, floors, pavemets, ceiligs, ad other structures. Smart workforce The use of smart apps ad mobile devices like tablets ca help truck drivers avoid traffic jams, stress, ad delays. I the smart trasport paradigm, such applicatio programs will, for istace, allow drivers to pass termial gates faster because customs ad freight documet umbers ca be trasmitted straight to the tablet i their cab. Smart plaig With the IoT, it will be possible to gai actioable isights ad use predictive aalytics for desigig smart trasportatio busiess models based o historic data. Smart plaig ca iclude capacity sesig, plaig ad reportig, routig optimizatio, remote asset maagemet, eergy-efficiecy maagemet, ad proactive fault detectio ad resolutio. It ca establish a mechaism of cotiuous improvemet by feedig captured iformatio to the feedback loop, thereby fidig ewer ways to geerate value i the process. For Driver Vehicle Ispectio Reports (DVIRs), LSPs ca replace the traditioal paper-ad-pe approach with a IoT solutio that combies sesors for real-time data gatherig, a mobile app, ad predictive aalytics to make DVIR ispectios smarter ad more efficiet. Smart compliace Trasportatio ad logistics compaies have to comply with a umber of regulatory madates, which curretly ivolve sigificat maual effort. A lot of this ca be automated i the smart trasport sceario. How a Smart Trasport Solutio Will Help Smart trasport promises several direct beefits to both providers ad customers, icludig savig time, ad ehaced security, traceability, ad protectio of cargo. It also has the potetial to make a profoud impact o the issues faced by trasportatio etworks cogestio, evirometal pollutio, ad accidets. With sesors trasmittig data i real time, operatios will become safer ad more trasparet oce smart trasport becomes a reality. Compaies will gai greater visibility o supply chai operatios, with updates o the locatio ad movemet of physical assets. Drive by real-time data isights, they will be able to reduce their carbo footprit ad optimize fuel cosumptio. By digitizig shippig
5 Travel, Trasportatio, ad Hospitality Accordig to the Iteratioal Trasport Forum, passeger mobility will icrease by a staggerig % ad freight activity by % by 2050.⁵ documetatio ad establishig a system for advace itimatio of shipmet delays ad re-routig optios, cogestio ca be sigificatly reduced. Overall, orgaizatios will be able to drive cost-effective operatios ad ehace performace efficiecy. Coclusio With covetioal trasportatio systems strugglig to meet curret loads, there is a clear eed for a reimagied, trasformatioal alterative a smarter trasport solutio. This essetially meas more itelliget ad itegrated systems for movig passegers ad freight, drive by the IoT. As the IoT coects differet assets ad equipmet alog the trasportatio supply chai i a meaigful way, it will geerate huge amouts of real-time data that ca be aalyzed to derive useful isights. These will help providers drive operatioal efficiecies ad deploy future-ready ifrastructure, while creatig customized, dyamic, ad automated services for ed users. Refereces [1] Iteratioal Trasport Forum, Trasport Outlook: Seamless Trasport for Greeer Growth (2012), accessed Jauary 27, 2016, [2] The White House, A Ecoomic Aalysis of Trasportatio Ifrastructure Ivestmet (July 2014), accessed Jauary 27, 2016, stmets.pdf [3] IDC, Worldwide Iteret of Thigs Forecast Update, (February 2016), accessed February 27, 2016, [4] Automotive World, Truck Trasportatio 2030: Impactig the Commercial Vehicle Idustry (March 2013), accessed Jauary 27, 2016, [5] Iteratioal Trasport Forum, Trasport Outlook: Seamless Trasport for Greeer Growth (2012), accessed Jauary 27, 2016, pdf/12outlook.pdf
6 Travel, Trasportatio, ad Hospitality About The Authors Sadeep Jai Sadeep Jai is the Global Head of the Travel, Trasportatio, ad Hospitality Practice at TCS. With over 28 years of experiece, he is resposible for TTH busiess developmet ad works closely with domai cosultats ad subject matter experts to track idustry ad techology treds i order to desig iovative solutios for complex busiess challeges. Rakesh Ravidra Rakesh Ravidra leads the marketig efforts for the IoT group withi TCS' CTO uit. He has over seve years of idustry experiece, ad has worked with startups ad corporatios across idustries i marketig ad busiess developmet roles. About TCS' Travel, Trasportatio ad Hospitality Busiess Uit For over two decades, TCS has bee deliverig value ad busiess results to leadig travel, trasportatio ad hospitality (TTH) compaies across the globe. Our portfolio of offerigs is tailored to our cliet eeds, eablig them to drive customer itimacy, improve operatioal ad process efficiecy, moderize ifrastructure ad the applicatio ladscape, improve IT productivity, ad embrace emergig techologies. I additio to beig associated with some of the largest IT trasformatio programs ad pioeerig techology iitiatives i the TTH idustry, TCS also has some of the best fuctioal ad techical cosultats with rich experiece i TTH. Our Travel & Hospitality Iovatio Lab, part of the larger TCS Co-Iovatio TM Network (COIN ), provides the ecosystem to research emergig treds, develop proofs of cocepts ad co-iovate with cliets. Parterships with leadig idustry bodies, joit product offerigs with cliets, ad ivestmets i developig TTH solutios, assets ad capabilities, reiforce our focus ad commitmet to our cliets. Cotact Visit TCS Travel, Trasportatio ad Hospitality uit page for more iformatio global.tth@tcs.com Subscribe to TCS White Papers TCS.com RSS: Feedburer: About Tata Cosultacy Services Ltd (TCS) Tata Cosultacy Services is a IT services, cosultig ad busiess solutios orgaizatio that delivers real results to global busiess, esurig a level of certaity o other firm ca match. TCS offers a cosultig-led, itegrated portfolio of IT ad IT-eabled, ifrastructure, egieerig ad assurace services. This is TM delivered through its uique Global Network Delivery Model, recogized as the bechmark of excellece i software developmet. A part of the Tata Group, Idia s largest idustrial coglomerate, TCS has a global footprit ad is listed o the Natioal Stock Exchage ad Bombay Stock Exchage i Idia. For more iformatio, visit us at All cotet / iformatio preset here is the exclusive property of Tata Cosultacy Services Limited (TCS). The cotet / iformatio cotaied here is correct at the time of publishig. No material from here may be copied, modified, reproduced, republished, uploaded, trasmitted, posted or distributed i ay form without prior writte permissio from TCS. Uauthorized use of the cotet / iformatio appearig here may violate copyright, trademark ad other applicable laws, ad could result i crimial or civil pealties. Copyright 2016 Tata Cosultacy Services Limited TCS Desig Services I M I 11 I 16
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