Urban Mobility India 2011 The IBM Smarter Cities Solutions: Opportunities for Intelligent Transportation

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Urban Mobility India 2011 The IBM Smarter Cities Solutions: Opportunities for Intelligent Transportation Himanshu Bhatt Global Program Director, Market Strategy IBM Software Group

Innovative leaders are creating opportunities while doing more with less Improve Citizen and Business Services Strengthen Security and Public Safety Manage Resources Effectively Ensure a Sustainable Environment Urbanization Decaying Infrastructure Threats and emergency response Funding Shortfalls 2

We are applying insights from 2,500+ projects of all sizes In Taiwan, 99% of smarter trains run on time Intelligent Asset Tracking allowed Richmond s crime rate by 40% in one year Miami-Dade County Public Schools have increased academic achievement across the board Data analytics helped cut crime 35% in NYC In downtown Stockholm smart traffic systems helped reduce gridlock by 20% Smart asset management helping Guangzhou Metro double its capacity to 4 million passengers per day UK Border Agency ha the information required to inform passengers of their decisions even before they arrive at their borders Analytically driven tax audit selection and collections now saves New York taxpayers $370 million a year Patterns for Leveraging Information, Anticipating Problems, Coordinating Resources 3

Working harder is not sustainable Cities require innovative approaches 4

Smarter cities are cities that drive sustainable economic growth by Leveraging information to make better decisions Anticipating problems to resolve them proactively Coordinating resources to operate effectively starting with knowing and reacting to anticipating and avoiding 5

IBM s Suite of Intelligent Transportation Solutions Drivers of change Intelligent Transportation Solutions Population explosion Traffic modeling and prediction Road user charging Fleet optimization Asset monitoring Route and schedule optimization Enterprise asset management Integrated fare management Urbanization Multichannel self-service Ticketing/payment systems Broadband in Public Transit Reservation systems Risk management Customer operations System inefficiencies Reliability & Security Asset management Resource optimization Digital video surveillance Identity and access management Condition monitoring Enterprise application systems Data and application security Network, server and endpoint security 6 6

While transportation issues are an increasing challenge throughout the world, specific priorities and solutions vary by region. North America The private car is the key mode of transport in most cities. Issues include significant funding challenges for new infrastructure, maintenance of existing infrastructure and achieving quality service levels. Western Europe Most European cities already have expansive roads and public transport infrastructures. Many cities and countries are seriously considering congestion charging. Asia Pacific Regional innovations include advanced traffic and bus management systems, integrated fare systems and traveler information. Emerging markets Increasing urbanization (especially in the mega cities) has resulted in worsening congestion, which has had adverse economic and health impacts. Funding and safety are major issues. Most cities are focused on developing their transport. 7 7

A maturity model approach and global benchmarking to prioritize city transportation initiatives Level 1 Silo ed Level 2 Coordinated modes Level 3 Partially integrated Level 4 Multimodal integration Level 5 Multimodal optimized Governance Strategic planning Performance management Demand management Single mode planning with little coordination between various transport providers A transport vision is articulated, with single overarching regulator but with limited planning and management powers Integrated multimodal transport authority, with coordinated demand management measures Integrated corridorbased multimodal planning, with dynamic demand management schemes Integrated regional multimodal planning, and continuous, systemwide performance measures with dynamic pricing Transport network optimization Data collection, integration and analysis Network operational responsiveness Incident management Limited data collection and integration with ad hoc analysis and incident response and manual incident response by individual modes Data collection for major routes; periodic data collection and analysis, with network and incident response mostly by individual modes Real-time collection of multiple data source, with highlevel analysis and automated network and incident response systems Real-time multimodal coverage for most corridors, with detailed real-time data analysis and automated preplanned multimodal incident response Systemwide real-time multimodal data collection; integration and analysis, with dynamic network optimization and incident response Integrated transport services Customer management Payment systems Traveller information Minimal; mostly cash collection and limited, static traveller information Customer accounts by mode; mostly cash collection and static trip planning with limited real-time alerts Electronic payments, with multichannel trip planning and account-based alert subscription Multimodal integrated transport card, with on journey, multimodal information services Single customer transport account; location-based multimodal proactive trip advisory 8 8

How are innovative public transport agencies responding to these issues and challenges? Improving operational efficiency while reducing environmental impact Stockholm, Sweden has implemented a congestion based road charging system. As part of the project, 18 roadside control points located at Stockholm city entrances and exits were set up to identify and charge vehicles depending on the time of day higher during peak times, lower during off peak hours. Singapore Land Transport Authority created and implemented an infrastructure to integrate ticketing systems. The solution can process up to two million transactions a day, with built-in scalability to meet future needs and provide add-on services. A smart card helped enable seamless travel and transfers across operators and transport modes, and helped ensure faster, more convenient transactions. 9 9

How are innovative public transport agencies responding to these issues and challenges? Reducing Operating Expenses, Increasing Safety and Reliability of Operations Taiwan National Railway improved its ability to diagnose train equipment health reducing the potential for derailment by generating and monitoring alarms in real-time. This helped operators eliminate potential safety hazards before they could cause larger issues and enabled business users to manage rules. Guangzhaou Metro increased safety and reliability of the Guangzhou Metro network through predictive maintenance capabilities; extended life of fixed asset investments; improved process efficiency by virtue of asset management and ERP process integration 10 10

How are public transport agencies responding to these issues and challenges? (continued) Reduce Traffic Congestion and Increase Safety Finnish Transportation Agency combined its knowledge of commuters' travel patterns with real-time data on traffic conditions to recommend fastest routes and avoid congestion. This helped speed journeys, reduce congestion and cut exhaust emissions. Drivers no longer have to stop to pay tolls, which helped reduce congestion, increase safety and enhance network reliability. 11 11

Value Progression Intelligent Roadways Value Progression Multi agency Collaboration & Community Outreach Control point Traffic Network Optimization Traffic management Systems (TMS) Real-Time Traffic information Data Electronic Fare Collection Systems Asset Management Build Infrastructure Design 12

The smartest governments take a holistic view of all key services Leveraging information to make better decisions Strategy & Administration Anticipating problems to resolve them proactively Healthcare Transportation Development Services Governance Services Education Human Services Infrastructure Services Energy and Water Coordinating resources to operate effectively 13 Social Services Public Safety Prepare for problems to High lead impact quickly issues and effectively require integration when across they inevitably departments arise

IBM s System of Systems Solution Offerings built from best practices 14

Representative Customers i2 Overview Summary IBM has acquired i2, a leading provider of intelligence analysis and investigation solutions for defense, government agencies and commercial enterprises Pervasive in market with over 4500 clients More than 350,000 users in 150 countries Used by 8 of the top 10 largest companies, 12 of top 20 banks, 25 of the 28 NATO member countries, 4 of top 5 US law enforcement agencies More than two decades of industry leadership Founded in 1990 Headquartered in Cambridge, UK with offices in McLean, VA and Tucson, AZ Approximately 350 employees 15

Technology and Business Innovations to Leverage Envision the city as an integrated system of systems Leverage new data, to gain new insights to drive new innovation Use predictive analytics to get into anticipate and avoid mode from know and react. Cloud Delivery Model (capex to opex for technology and business process capabilities) Adopt industry standards based systems to allow integration and lower long term costs SLA-driven Managed Services (capex to opex for operational services) 16 16