#DIGITALSNCF NEW CHALLENGES NEW RESPONSES. Yves TYRODE, Chief Digital Officer SNCF. 27 January 2016 DB Symposium
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1 #DIGITALSNCF NEW CHALLENGES NEW RESPONSES Yves TYRODE, Chief Digital Officer SNCF 27 January 2016 DB Symposium
2 PRESENTATION OUTLINES 1. SNCF HIGHLIGHTS 2. DIGITAL TRANSFORMATION FRAMEWORK 3. EXAMPLES AND BENCHMARKS 4. SNCF DIGITAL ORGANISATION 2
3 01. SNCF HIGHLIGHTS 3
4 SNCF : A WORD BENCHMARK FOR MULTIMODAL TRANSPORT SOLUTIONS KEY FIGURES AT YEAR END ,2 BN REVENUE 120 COUNTRIES EMPLOYEES 25% OF TOTAL REVENUE FROM INTERNATIONAL MARKETS 2,4 BN EBITDA 10 MILLION PASSENGERS / DAY 4
5 A BACKGROUND IN ECOMMERCE KEY FIGURES AT YEAR END ,2 BN SALES VOLUME VOYAGES-SNCF.COM N 1 E.COMMERCE SITE 20 million SNCF APPS DOWNLOADED 10 million UNIQUE VISITORS TO OUR WEBSITES EVERY MONTH 5 78 million TICKETS SOLD ON-LINE
6 02. DIGITAL TRANSFORMATION 6
7 DIGITAL, A DEEP TRANSFORMATION SHIFT FOR THE INDUSTRY DIGITAL ISN T MAKING SOMETHING NEW OUT OF SOMETHING OLD! BUT IT IS ABOUT DOING MORE WITH NEW TOOLS AND NEW METHODS 7
8 4 DIMENSIONS FOR THE DIGITAL TRANSFORMATION 2 Technologies 1 Usages 3 Working methods 4 Business models 8
9 RAPIDLY GROWING DIGITAL USES IN MOBILITY e-commerce on-line plan, book, ticket e-ticket Real time info and itineraries Share Passengers flows anticipation Security gates automation e-hailing Feedback and comparison 9
10 NEW WORKING METHODS Wider cooperation Real time performance Continuous amelioration Work collaboratively and remotely Create communities with start -up Feedback and customer focused Visualization of flows (population, output... ) Supervision, incident management Anticipation maintenance Trial and error logic Encrypted monitoring, indicators Scaling 10
11 TWO KINDS OF BUSINESS MODELS TRANFORMATION OF THE EXISTING NEW BUSINESS MODELS Multiple performance impacts enabled by digital Productivity increase on existing tasks, performance increase thanks to new uses Simplification of tasks, real time data, focus on key tasks on field, document access in mobility etc. Improve customer experience thanks to implementation of new services Increased productivity Lowered costs Incoming players and uses Share economy Data s value chain Autonomous driving New incomes New customers 11
12 MULTIPLE PERFORMANCE IMPACTS ENABLED BY DIGITAL Quality & security Transformation of the existing Management Industrial Client experience Creation of new Business Models Increase security thanks to anticipation of incidents, document access in mobility etc. Simplification of tasks, real time data, focus on key tasks on field Productivity increase on existing tasks, performance increase thanks to new uses Improve client experience thanks to implementation of new services Outlook towards new business horizon in a defensive or offensive logic PROVED RESULTS IN DIFFERENT INDUSTRIES 12
13 03. EXAMPLES AND BENCHMARKS 13
14 PERFORMANCE ENABLED BY INDUSTRIAL INTERNET BigData Infrastructure 1 Modernizing systems that monitor critical assets Maintenance Monitoring Infrastructures Freight 2 Collecting Data from sensors 3 BigData Mintenance (predictive maintenance) Analysis and models Monitoring buildings 4 Integrating in working processes Monitoring Stations Factory of Future 14 Documentation
15 IMPROVED MAINTENANCE AND REDUCED COSTS USING INTERNET OF THINGS 46,000 sensors on trucks Real time knowledge of the data (GPS, speed, brake wear,...) Data analysis to determine Truck performance and conduct necessary adjustments The optimal use of the fleet Rolls Royce has a predictive maintenance system for its engines When a default is detected, engineers are alerted and analyze data A solution is proposed An intervention is launched if necessary «Connected wagons" Automation of cargos convoys brakes Sensors installed at the braking systems Access to real-time diagnostic agent for the locomotive advancement Performance history tracking $ 30 million estimated DIRECTION 140 million kilometers in 1 year DU DIGITAL 15 Légende : Security Engine Number of outages for customers Maintenance costs Plan d'action défini Pilote et retour sur investissement validé Déploiement en cours Déploiement finalisé Verification time reduced from 45 to 15 minutes
16 ANTICIPATE RISKS AND FAILURES ON THE NETWORK WITH THE INTERNET OF THINGS AND BIG DATA Vegetation SURCA American Society of production and distribution of energy Installation of 25,000 sensors and deployment of remote diagnosis until 2016 Using imagery to estimate the associated risks To falling trees Clashes with animals Avancement Installation of accelerometers to detect defects in real time Anomalies or breach of catenary Accelerometers installed on pantographs Avancement 16 Failures ( whose cost is 40 million / year) Number of affected trains (on average / year) Lost minutes (average potential of 1 million min) Ruptures of catenary ( 500,000 / incident )
17 BROADBAND ACCESS AS A BASIC EXPECTATION AERIEN ET ROUTIER Wifi in planes Gratuits Payants Wifi in coaches 17 RAIL En 2016 free Wifi in 89 Trains AVE and 20 stations Wifi on ICE and free in 'First class' In 2015, 3G/4G coverage for 75% of traverlers 100% in G/4G coverage provided by telecom operators : a prerequisite to broadband internet access New 700MHz licences include the obligation to cover the railways, especially for mass transit by Deployment costs for telcos around hundreds of M Co-operation and mutualisation in tunnels and rural areas As a complement, WIFI in high speed trains TGV Technical requirement linked to the speed Target 90% of travelers by 2020
18 PLAN, BOOK, TICKET ON-LINE EXPERIENCE On-line accomodation booking bookings a day over the world Ranking and comments On-line travel agency Plane tickets for 400 companies Diversification with full packages : hotels, car rentals, cruises... Nb1 French e-commerce website Founded in 2000 Train tickets first Diversification with travel services, hotel, cars, plane tickets and entertainment, etc. 10 to 30% sales commissions 50 Bn $ gross booking in Bn $ market value (Priceline) 10 to 30% sales commissions 50,5 Bn $ gross booking in Bn $ market value 2-3% sales commissions 4,2 Bn sales volume in DI GIT Source: Médiamétrie et la FEvad baromètre janvier mars 2015, Presse, site corporate
19 OPEN DATA AND OPEN INNOVATION 66 open data sets & 2 APIs 15 million calls each month on APIs Over startups connected SNCF Digital Venture with 30 million euros over 3 years 19
20 04. SNCF DIGITAL ORGANISATION 20
21 #DIGITALSNCF : A 18 MONTHS-PLAN TO ACCELERATE DIGITALISATION Impacts of transformation 3rd season To be defined 2 nd season Industrial internet Digital for everybody 1st season Basics 21
22 Saison 2 Saison 1 FIRST SEASONS : TRANSFORMING THE EXISTING Transforming the existing Security & quality Management Industrial Customer experience Mail for everybody DSMAT Nomade Flux.SNCF Net.SNCF Quotidien.SNCF FRET connected wagon Stations : Failure Prevention System Monitoring catenary Demeter Employees devices collaborative tools Digitalisation documentation technique Remote diagnostics Factory of the Future Big Data Material Remote reading consumption Exocet 22
23 A DYNAMIC OF ONGOING TRANSFORMATION A NEW ORGANIZATIONAL MOMENTUM CATALYSTS READY TO BE INDUSTRIALIZED A new organization for Digital 27 digital champions appointed within business departments Opening API Open Inno (dont Open Data) Digital Ventures members in the Digital Community startups / companies connected to the platform Open Data Dynamism and interest felt by employees ( Barometer ) Cooperation Execution & expertise 574, Communities Big Data.Fab IoT.Fab Open Inno.Fab STORE.SNCF Design.Fab Agile Fab Thirty projects supported by the Fabs
24 THANK YOU 24
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