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George Mattathil -
5/11/2011




Let’s Build a Smarter Planet: Rail




                                     © 2010 IBM Corporation
Let’s build a smarter planet: Rail

A mandate for change


Morgan Stanley estimates that there will be US$300 billion worth of global investment to
upgrade, expand and initiate railway networks during the next five years. Consistent with this
investment, consider the growth that is occurring across the world:
    By 2012, rail industry revenue is forecast to be US$514 billion, with a 3.3 percent compound annual
     growth rate (CAGR) from 2007 to 2012
    The global rail supply market grew 9 percent from 2006 to 2007 and is expected to continue growing
     2.0-2.5 percent over the next nine years
    Asia Pacific will grow at 6 percent average CAGR, while China alone will grow 11.8 percent CAGR
     from 2007 to 2012.5
    U.S. freight railroad demand will increase 88 percent by 2035, requiring an estimated US$148 billion of
     investment for existing lines
    Europe’s passenger railway market will have a value of US$116.5 billion in 2012, an increase of 19.3
     percent from 2007 and a CAGR of 3.6 percent

If the rail industry is to meet this projected growth, it needs to solve substantial, even
transformational, business issues and challenges. Based on an independent study
commissioned by IBM in 2008, the top four challenges cited by global rail executives were
capacity and congestion, operational efficiency and reliability, structural and competition
issues, and safety and security
                                                                                               © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Air travel is under pressure from high-speed rail which is
perceived as more convenient, greener and competitively priced
(under 600Km)

                Share of Madrid-Seville
80%             market – AVE
                Estimated share of UK 3-hour
70%             domestic market – SNCF

                Share of Korea
63%             market – KTX
                Share of Tokyo-Akita
60%             market – JR East
                Decline in inter-city
50%             flights – THSR
                Share of Madrid-Barcelona
46%             market – AVE

―An airplane on wheels‖
 Air France-KLM Chairman, Jean-Cyril Spinetta on the TGV.
                                                            © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Demands on transportation providers will increase over time, driving
the need for new intelligence and insight, greater connectivity and
transparency, and improved customer service.

DRIVERS OF CHANGE                        CHALLENGES                           STRATEGIC IMPERATIVES
Population explosion                     Capacity and congestion              Predict demand and
World population is growing and          Meet the growing, changing           optimize capacity and
transportation providers will need       demand efficiently, consistently     assets.
to expand capacity to keep up.           and profitably?

Urbanization                             Empowered customers                  Dramatically improve
As the number and size of cities         Deliver transportation choices       the end-to-end customer
grows, pressure on transportation        and information in the way that      experience.
systems to move people and               end customers value.
materials between and within
those cities grows.

Globalization                            Efficient, green operations          Improve operational
The growing interconnectedness           Reduce cost and dependency on        efficiency while reducing
of the world is driving inter-city and   scarce resources while reducing      environmental impact.
international growth in demand, with     environmental impact.
an expectation of improved service.

Technology                               Safety and security                  Assure safety and security.
Technology now enables the capture       Unobtrusively reduce exposure
and analysis of real-time information    to security risks and increase the
about the status, location and           safety of operations, with less
condition of everything.                 cost and impact on customers.
                                                                                                   © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Drivers of change: Exploding populations, urbanization, globalization
and technology are driving change, which creates unique challenges
and opportunities for transportation providers.

2 billion / 7 billion                       476 cities over 1 million
It took all of history for human            In 2010 there are 476 urban areas with
population to reach 2 billion, and only     at least 1 million people. That’s an
one generation to more than triple to       increase of 573% from 1950 when there
nearly 7 billion.                           were 83. Over half the world’s population
                                            now lives in urban areas.

>100x growth                                4 billion / 1 billion
International trade in manufactured         Today, there are over 4 billion mobile
goods increased more than 100 times         phone users, and over 1 billion internet
(from $95 billion to $12 trillion) in the   users, growing rapidly to 2 billion.
50 years following 1955.




                                                                               © 2010 IBM Corporation
Let’s build a smarter planet: Rail

The needfor progress is clear.



Capacity and congestion                           Empowered customers
100 billion Euros                                 30,000 in 6 days
Traffic congestion costs the European             30,000 people from 47 countries
Union over 1% of GDP, or over 100 billion         downloaded an airline’s new smartphone
Euros per year.                                   application in the first 6 days.

7 billion / 6 billion                             87% use the Web
By 2020 there may be global demand for 7          87% of U.S. travelers use the Web.
billion air passenger trips. Yet airports and
airlines will only have capacity for 6 billion.   4.6 billion cell phones
(Organization for Economic Cooperation
and Development)                                  4.6 billion worldwide by the end of 2009.

$30 trillion                                      60% and -19%
The world will spend about $30 trillion over      60% of consumer sentiment around the
the next two decades on new roads and             U.S. air travel industry is negative, and
similar projects according to CIBC                there are 19% fewer brand-loyal travelers in
economist Benjamin Tal.                           2008 than in 2006—a recipe for
                                                  commoditization.                          © 2010 IBM Corporation
Let’s build a smarter planet: Rail

The needfor progress is clear.



Efficient, green operations                  Safety and security
2.8 billion gallons                          >41 thousand lives
                                             The U.S. Department of Transportation reports
4.2 billion hours                            over 41,000 road fatalities every year from 1995
U.S. road traffic congestion during          to 2007.
2007 wasted 2.8 billion gallons of fuel
and 4.2 billion hours. Total cost of
wasted fuel and time was $87.2 billion.      $5.9 billion
3% or 13%                                    >60% of operating cost
Airlines worldwide generate 3% of all        Airlines spend $5.9 billion per year on security (IATA).
greenhouse gas emissions. Some say           Airports spend >60% of their operating cost on safety
that because aircraft operate in the upper   and security (ACI).
atmosphere, the impact may be equivalent
to 13% of emissions from all sources.




                                                                                      © 2010 IBM Corporation
Let’s build a smarter planet: Rail

The opportunity for progress is clear.




18% less traffic                          423 miles using 1 gallon
A European city reduced traffic by up     One ton of rail freight can be moved 423 miles using
to 18%, and increased use of public       one gallon of fuel, and a single freight train can
transit by 80,000 passengers per day.     replace 280 trucks, reducing fuel use, congestion
Citizens voted to support the project.    and emissions.

1.5% per year 50%                         10% fewer breakdowns
                                          A container port in the UK reduced equipment
by 2050                                   breakdowns by 10%.
Airline industry environmental targets:
1.5% average annual improvement in        60% fewer delayed bags
fuel efficiency from 2009 to 2020.        A European airport reduced mishandled baggage by
                                          60% using an innovative RFID-based solution.
Cap aviation CO2 emissions from
2020 onwards (carbon neutral growth).
50% reduction in CO2 emitted by 2050
relative to 2005.
                                          99.15% on time
                                          An Asian high-speed railway achieves 99.15% on-
                                          time performance.

                                                                                 © 2010 IBM Corporation
Let’s build a smarter planet: Rail

The reality of living in a globally integrated world is upon us.



 Frozen credit markets, limited access to capital, unpredictable funding.
 Economic downturn and future uncertainty of economic growth.
 Environmental sustainability challenges and new global regulation.
 Oil and fuel volatility and long-term cost escalation.
 Information explosion, channel proliferation and loss of market-making power.
 Emergence of indirect substitutes and alternatives.
 Changing travel demand and shifts in buying behaviors.
 The need to increase or decrease capacity rapidly to align with demand.
 New customer demands and business models.


The world is connected:
  economically, socially and technically.


                                                                                  © 2010 IBM Corporation
Let’s build a smarter planet: Rail

This mandate for change is a mandate for smart.




                         The infrastructures, systems and processes that underpin
                              how business and society function are becoming
                     digitally aware, interconnected and infused with intelligence.
     The new intelligence applies to how services are delivered, to the movement of people,
  freight, money, information, electricity and more. Each represents a chance to do something
                             better, faster and more productively.
         This is a new frame of reference with enormous promise for economic growth, with
                           opportunities to think and act in new ways.

                                                                                      © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Success will depend on deeper, more holistic and informed
planning, collaboration and execution. Transportation providers will
need to become smarter.


         PREDICT DEMAND AND                                DRAMATICALLY IMPROVE THE
OPTIMIZE CAPACITY AND ASSETS                               END-TO-END TRAVELER OR
                                                           CUSTOMER EXPERIENCE
 Predict demand, align transportation
 asset and infrastructure deployment                       Understand customer needs
  and continuously adapt operations.                       and provide information and
                                                           services to meet those needs
                                                           in the manner preferred.
                                          TRANSPORTATION
                                             PROVIDERS




         IMPROVE OPERATIONAL                               ASSURE SAFETY
    EFFICIENCY WHILE REDUCING                              AND SECURITY
        ENVIRONMENTAL IMPACT
                                                           Leverage new sources of
        Continuously balance cost and                      information and new ways
       environmental impact of scarce                      of using that information to
     resource use while exploring new                      improve security and safety.
              operational alternatives.



                                                                                © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Almost all usable information was once authored or processed by
a person. That kind of information is now being overwhelmed by
machine-generated data from sensors, RFID, meters, microphones,
surveillance systems, GPS systems and all types of objects.


                                     Volume of digital data
                                     The number of emails sent every day is
                                     estimated to be over 200 billion.
                                     Every day, 15 petabytes of new information is
                                     being generated. This is 8 times more than the
                                     information in all U.S. libraries.
                                     By 2010, the amount of digital information will
                                     grow to 988 exabytes (equivalent to a stack of
                                     books from the Sun to Pluto and back).




                                                                              © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Decision making velocity is about optimizing the speed of insight as
well as the confidence that decisions and actions taken will yield the
best outcomes.



                                     Velocity of decision making
                                     Every week, the average information worker spends
                                     14.5 hours reading and answering email, 13.3 hours
                                     creating documents, 9.6 hours searching for
                                     information and 9.5 hours analyzing information.
                                     For every 1,000 knowledge workers, $5.7 million is lost
                                     annually in time wasted reformatting information
                                     between applications.
                                     Not finding the right information costs an additional
                                     $5.3 million per year.
                                     42% of managers say they inadvertently use the wrong
                                     information at least once per week.
                                     70% of executives believe that poor decision
                                     making has had a degrading impact on their
                                     companies’ performance.
                                                                               © 2010 IBM Corporation
Let’s build a smarter planet: Rail

The transformation to smart is enabling us to become
more efficient, productive and responsive.




        Traditional approach                       Smarter approach
       Instinct and intuition                                Fact-driven

       Corrective                                              Directive

       Years, months, weeks                      Hours, minutes, seconds

       Decision support                                   Action support

       Efficient                                              Optimized




                                                                © 2010 IBM Corporation
Let’s build a smarter planet: Rail




                                             +                   +                  =
                        An opportunity to think and act in new ways.


    Predict demand                   Dramatically improve      Improve operational         Assure safety
    and optimize                     the end-to-end traveler   efficiency while reducing   and security.
    capacity and assets.             or customer experience.   environmental impact.




                                                                                                © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Smart transportation:
Predict demand and optimize transportation capacity and assets.


SMART IS                                SMART IS
Understanding and modeling a holistic   Modeling scenarios and better planning
view of demand—across the               routes, schedules and maintenance by
transportation network.                 optimizing assets, infrastructure and capacity.


SMART IS                                SMART IS
Creating dynamic multimodal plans and   Gaining deeper insights into the utilization
models, and executing real-time         of transportation assets and infrastructure.
operations based on real-time data.




                                                                             © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Smart transportation:
Predict demand and optimize transportation capacity and assets.
(continued)




Netherlands Railways uses ILOG software to weigh 56,000     Stockholm—IBM solutions improved congestion and quality
variables including passenger demand and available assets   of life reducing peak period traffic by 18%. Use of public
to assemble and schedule over 5,000 trains per day,         transit increased by 80,000 passengers per day. CO2
realizing a 6% savings in operating efficiency and saving   emissions from vehicles were reduced
$28.5M per year. Also improved on-time performance by       by 14%. Increased revenue is channeled back into
2%, helping capture an additional $57M in fares.            improving public transportation.




Queensland Motorways reduced road congestion during         A large railway in Asia uses an automated crew
peak hours, improved Brisbane commuter experience           scheduling system that evaluates the skills and location
and supports local economic prosperity by avoiding          of available employees in real time to assign staff to
traffic snarls in commercial areas.                         scheduled trains. Employees receive their assignments
                                                            via cell phone text messages, and log in to work using
                                                            biometric scanners, ensuring positive identification and
                                                            access control. The system provides management with
                                                            real time information about available staff and forward-
                                                            looking intelligence to optimize resource allocation,
                                                            reducing staff shortages and overtime expense.
                                                                                                                       © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Smart transportation:
Dramatically improve the end-to-end traveler or customer experience.


SMART IS                                 SMART IS
Increasing revenue and share by          Reducing cost and differentiating
developing more loyal customers who      customer service.
become advocates.

SMART IS                                 SMART IS
Optimizing capacity to meet demand and   Better serving customers by
reduce delays.                           anticipating and catering to their
                                         needs throughout the journey and by
                                         collaborating with adjacent
                                         service providers.




                                                                             © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Smart transportation:
Dramatically improve the end-to-end traveler or customer experience.
(continued)




A European airport, in partnership with an international   A leading global logistics firm uses ILOG Optimization
airline, reduced mishandled baggage by 60% with an         software to route and consolidate shipments for their
RFID-based baggage handling system. Reduced                customers, lowering supply chain transportation costs
transfer time by 22% and operational cost by 40%.          by up to 25%.




Singapore Land Transport Authority provides a unified      IBM developed an application for Air Canada using the Apple
payment system using smart cards for public transit,       iPhone, iPod Touch, and Blackberry allowing passengers to
tolls and parking, improving the commuter experience.      book flights, download electronic boarding passes, check-in,
Planners use data from the system to develop optimal       get flight status and book rental cars and other services.
routes and schedules, reducing congestion and              There were over 30k downloads of the app from 47 countries
increasing the appeal of public transit. Reduced fare      in the first 6 days and a 13.5% increase in mobile check-ins.
leakage by 80% and cost of fare processing by 2%.          93% of Air Canada passengers say multichannel self service
                                                           has improved their travel experience. Canadian New Media
                                                           Award for Best Mobile App of 2009.

                                                                                                         © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Smart transportation:
Improve operational efficiency while reducing environmental impact.


SMART IS                                    SMART IS
Increasing the extended transportation      Increasing the ability to deal with irregular
network capacity using current              operations across the transportation
infrastructure and assets without           network and modes.
increasing spend, including collaborating
with adjacent service and
infrastructure providers.


SMART IS                                    SMART IS
Saving money and time by knowing            Modeling the financial impact of
the location, status and availability of    business decisions, streamlining
your assets—reducing total resource         planning, and monitoring
use and carbon footprint                    performance to maximize revenue,
enterprise-wide.                            margins and cash flow.



                                                                                  © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Smart transportation:
Improve operational efficiency while reducing environmental impact.
(continued)




A U.S. state department of transportation used Cognos     Taiwan High Speed Rail Corporation uses IBM Maximo
to improve their operational reporting and financial      for their advanced maintenance management solution
management, which had a direct positive effect on         which used condition-based monitoring to predict and
their bond rating and interest rates available to them.   act on maintenance requirements and manage over
                                                          320k asset elements. They have improved asset life
                                                          and availability with 99.15% on-time train performance.




A major European railroad reduces maintenance cost        COSCO, a global shipping firm, engaged IBM to help
by 30% by moving from curative and preventative           optimize their supply chain using the Supply Chain
maintenance to predictive maintenance using Maximo.       Network Optimization Workbench (SNOW). As a result
                                                          of the engagement, COSCO consolidated from 100 to
                                                          40 distribution centers, lowered logistics cost by 23%
                                                          and reduced CO2 emissions by 15%.


                                                                                                         © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Smart transportation:
Assure safety and security.


SMART IS                                   SMART IS
Predicting and avoiding vehicle failure.   Reducing congestion and accidents by
                                           balancing traffic across routes or modes.



SMART IS                                   SMART IS
Better managing security uniformly         Improving reliability and uptime by
across the transportation network with     optimizing the supply chain and MRO
reduced cost, while protecting the         processes.
privacy of individuals.




                                                                              © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Smart transportation:
Assure safety and security. (continued)




A U.S. hub airport implemented a digital video            A national rail system in Europe monitors its rail
surveillance solution and a security command and          infrastructure in real time and resolves more than
control center. The system also uses information from     50% of issues before they affect train operation
biometric handprints and badge readers. The system        using a service management solution built with IBM
is more effective at recognizing risks and alerting the   Tivoli software.
command center. The effective labor cost savings is
US $2.2m per year.




Using RFID tags on parts and containers, IBM has          An Italian parcel delivery company reduced their
helped a major aircraft manufacturer track aircraft       security staff and increased the level of security for
parts through the entire life cycle including all         their 10 hub facilities using an IBM solution that
maintenance and the plane in which it is used. The        centrally monitors intrusion, access control readers,
solution has allowed them to be more responsive to        digital video and other sensor technologies.
customers, and reduced fleet down-time without
compromising safety.

                                                                                                           © 2010 IBM Corporation
Let’s build a smarter planet: Rail

The smarter transportation system is an interdependent ecosystem—
integrated around standard information, processes and technology.




                                                                      Transportation
                                                     Government
                                                                      providers                       Participants aggregate, analyze
     Information                                     s
                                                                                                      and act upon data to:
                                                                                     Terminal
     Processes                        Regulators
                                                                                     operators        1. Predict demand and
                                                                                                         optimize transportation
     Technology
                                                                                                         assets and infrastructure.
                                                                                        Freight and
                                     Travel
    Passenger and                   service
                                                                                        logistics     2. Dramatically improve the
                                                                                        service          end-to-end traveler or
    journey information           providers
                                                                                        providers
    Freight shipment
                                                                                                         customer experience.
    information                                                                                       3. Improve operational
                                     Passengers                                      Freight
    Location, status and
                                      and drivers                                    customers           efficiency while reducing
    condition of assets and                                                                              environmental impact.
    infrastructure
                                                       Vehicle and    Influencers:
    Usage patterns across                                                                             4. Assure safety and security.
                                                     infrastructure   Associations
    all modes of transportation                     manufacturers     and
                                                                      universities




                                                                                                                          © 2010 IBM Corporation
Let’s build a smarter planet: Rail

IBM’s solution strategy is aligned with the needs of
transportation providers.
                  STRATEGIC IMPERATIVES                           HOW IBM HELPS MEET THE NEED
          Predict demand and optimize               Demand and revenue management          Road user
          transportation capacity, assets and       Enterprise asset management and MRO     charging
          infrastructure.                           Route and schedule optimization        Fleet optimization
                                                    Traffic modeling and prediction        Integrated fare
                                                                                             management
                                                    Irregular operations management

          Dramatically improve the end-to-          Reservation system modernization         Loyalty management
          end traveler/customer experience.         Multichannel self-service                Cargo management
                                                    Ticketing and payment systems            Risk management
                                                    One view of the customer                 CRM
                                                    Customer analytics

          Improve operational efficiency while    Enterprise asset management              Resource optimization
          reducing environmental impact.          Enterprise infrastructure management     Carbon management
                                                  Enterprise application systems           Condition monitoring
                                                  Green supply chain optimization          Systems virtualization

          Assure safety and security.             Identity and access management           Biometric identification
                                                  Condition based monitoring               Risk analytics
                                                   using wireless sensors                   Digital video
                                                  Data and application security             surveillance
                                                  Server and endpoint security             Network security

                                                                                                    © 2010 IBM Corporation
Let’s build a smarter planet: Rail

What makes IBM different?



 IBM’s breadth of experience working with transportation providers worldwide across all
  modes of transportation is unparalleled.
 IBM has strong analytical tools to aggregate, analyze and act upon data gathered from
  disparate sources—providing solutions for planning, scheduling, routing, CRM, pricing,
  revenue management, intelligent traffic and infrastructure management.
 IBM has practical experience implementing innovative solutions to help clients become
  smarter—more instrumented, interconnected and intelligent.
 IBM is the market leader in collaborating with transportation clients to deliver: the fastest
  time to value with minimum risk through innovative solutions; the most comprehensive
  portfolio of hardware, software and services; and deep domain experience and expertise.
 IBM Centers of Excellence, IBM research, proofs of concept and first-of-a-kind projects
  demonstrate innovation and competence in solution implementation.




                                                                                       © 2010 IBM Corporation
Let’s build a smarter planet: Rail

We’ve only just begun to uncover what is possible on a
smarter planet.


                                     The infrastructures, systems and processes that
                                     underpin how business and society function are
                                     becoming digitally aware, interconnected and
                                     infused with intelligence.
                                     The new intelligence applies to how services are
                                     delivered; to the movement of people, freight,
                                     money, information and electricity; and to how
                                     billions of people live and work. Each represents a
                                     chance to
                                     do something better, faster and more productively.
                                     This is a new frame of reference with enormous
                                     promise for economic growth, with opportunities
                                     to think and act in new ways.
                                     Let’s work together to drive
                                     real progress.

                                                                             © 2010 IBM Corporation
Let’s build a smarter planet: Rail

IBM Offerings Overview

From Hardware to Software to Services to Financing and R&D … We’ve Got It Covered!




                                                                             Research &
      Hardware                       Software      Global Services                              Global Financing
                                                                            Development
  World’s Largest             World’s Largest       World’s Largest          World’s Most          World’s Largest
 Computer Hardware          Middleware Software   Professional Service   Influential Research       Technology
     Provider                     Provider              Provider             Organization        Financing Provider
 Enterprise Servers         WebSphere            Global Business       World Leader in       Financing for
                                                    Services               Patents – 13th         Hardware, Software
 Storage Systems            DB2
                                                                           Consecutive Year       & Services
                                                   Global Technology
 Printing Systems           Tivoli
                                                    Services              5 Nobel Prize         Financing for both
 Technology                 Lotus                                        Winners                IBM and 3rd-Party
                                                   Managed Services
                                                                                                  Elements
                             Rational                                    World Leader in
                                                   Industry Focused
                                                                           Proponent of Open     Global Asset
                             Software Product      Solutions
                                                                           Standards              Recovery Services
                              Services


                                           Integrated Solutions
                                                                                                      © 2010 IBM Corporation
Let’s build a smarter planet: Rail

IBM Research Worldwide




                                     © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Rail: Analytics

Traditional
   Passenger Rail Schedule Optimization
   Railroad Blocking Optimization for Freight
   Rolling Stock Optimization Planning
   Rolling Stock Preventative Maintenance Planning
   Infrastructure Preventative Maintenance Planning
   RFID Tracking For Operational Monitoring & Analysis

    Emerging
       Sensor Networks for Automatic Train Formation
       Embedded Sensors for Condition-Based Monitoring and Predictive Maintenance
       Video Inspection of Rolling Stock
       Video Security of Rail Yards / Property
       Customer Loyalty, Analytics, Performance Dashboards
       Customer On-Board Buying Trends

                  Next Gen
                   Positive Train Control : Monitoring Trains To Proactively Prevent A
                    Catastrophic Failure
                   Remote Locomotive Control on the Main Line
                                                                                          © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Smarter Rail Solution Research to Improve Operation Safety,
Efficiency & Resilience
Instrumentation:                             Asset Condition Analysis                              Dynamic Scheduling & Planning
Condition monitoring                         Integrate, mining, predict & real                     Analyze impact & generate optimal response plan
Enable accurate,                             time alarm
real time & effective sensing
                                                                                            Use cases
                                                             How to optimize maintenance
                                                                schedule: Are there any
                                                             patterns of the asset lifetime?
                                      Asset Failure
                                                                   e.g. certain type of                          Time-table rescheduling
                                                               asset/model in certain geo
                                                             location & weather conditions
                                                                  has shorter lifetime.

                                        Accident                       Asset lifetime
Sensor based asset                                                    pattern analysis                           Rolling stock rescheduling
   Inspection &
    Monitoring                                         Integrate     Emergency detected
                                            …                       ->Dynamic Response

                                                                                                Dispatch         Driver & crew rescheduling
                                                                      Asset condition
                                                                        prediction
                                                                                                 center

                                                                         How to reduce                            Maintenance rescheduling
                                     Natural Hazards                    unexpected asset
                                      (e.g. Weather)               failure? e.g. predict when
                                                                    a certain asset’s certain
                                                                    measurement would be
                                                                                                                 Timely React: Train halt, low
                                                                      over safe/alarm limit
                                                                                                                 down speed, reroute, cancel
                                                                                                                 train run, new work/maintenance
   Way side environment                                                                                          schedule, …
        monitoring
                                                                                                                               © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Correlated Incident Pattern Analysis & Early Warning for
Railway Operations’ Emergency Management

                                                 Defects on the Train
                        Rail sensors



                                                 Defects on the Track

                          Metrologic
                                                                                      Avoid or Mitigate
                          al Services
                                          Weather threats

                                                                                       Scheduling &       Emergency Incidents
                           Disaster                                          Early
                                                                                        Command
                          Forecast &                                        Warning
                                          Disaster threats                               System
                            Report
                           Services
                                                                        patterns



   Railway emergencies are caused by                           Research project proposal: Correlated Incident Pattern
    complex reasons                                              Analysis & Early Warning
      – Track or train defects                                     – Railway sensor data mining, weather & disaster
      – Hazards brought by weather or disasters                      information mining correlated with incidents
                                                                     & sensor data
   Railway sensors produce tons of
                                                                   – Incident causes pattern analysis
    monitoring data, but
                                                                   – Real time data processing for early warning
      – Not well analyzed to detect patterns
      – Not correlated with weather & disaster data             Need access to customer data & sensor systems




                                                                                                                  © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Hazard Risks Analysis for Railway Operations’
Emergency Management


                                                                                                                  rescue resource
                                                                                                                  placement


               Landslides                                                                                        railway
                                                 snow                     flood
                                                                                                                 monitoring


                                     Risk analysis & identification                                              hazard
                                                                                                                 alerting
                 environment factors           railway quality        train status


   Railway hazards are influenced by various of                  Research project proposal: Hazard Risks Analysis
    environmental factors                                          for Railway
      – area's climate, geology, and etc.                            – Identify hazard risks based on historical temporal / spatial
                                                                        data, environmental factors, and railway / train status
   Railway vulnerability depends on
                                                                        and schedule
      – railway's quality, train's status & workloads
                                                                     – recommend mitigation and response strategies to support
   Disaster loss is further determined by                              emergency planning and decison-making.
      – affected trains, passengers and goods
                                                                  Need access to historical disaster data, incident data and
                                                                   geo-information


                                                                                                                   © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Massive Passenger Detainment Simulation & Forecast for Railway
Operations’ Emergency Management

                                     Massive Passenger Detainment                            Train emergency (accident)




                                                                    ?
                                          ?                                                                   Emergency

                                                                                                               Station


                                              ?                                                                Train




                                                                    Track emergency (disaster)


   Railway emergencies always happen                               Research project proposal: Massive Passenger Detainment
      – Accidents & disaster emergencies                             Simulation & Forecast
                                                                      – Emergency classifications & impact
   Railway emergency brings major secondary safety
                                                                          cascading analysis
    challenges for railway operations
                                                                      – Interact with train scheduling system
      – Massive scheduling changes
                                                                      – Passenger detainment progression analysis
      – Massive passenger detainment at
                                                                      – Passenger behavior & evacuation simulations
         major stations
                                                                    Need access to customer data & scheduling
                                                                     system interfaces


                                                                                                                       © 2010 IBM Corporation
Let’s build a smarter planet: Rail

IBM Research Projects: Mote-Based Wireless Sensor Networking



Business Challenge
 Data from existing trackside sensors, including the RFID-based Automatic Equipment Identification (AEI) System, Hot Box
  Detectors, Wheel Impact Load Detectors (WILD), are sparse due to high deployment costs.
 Data does not provide timely information (e.g. bearing failures) to circumvent problems (e.g. derailment).
Strategic Initiative
 Develop next generation rail car technology infrastructure to provide near real-time information
 One infrastructure supporting multiple sensor modalities
Proposed Solution: Mote-based wireless sensor networking
 Maintains a mesh network for the train that is continuously updated as railcars are added to /removed from the train
 Supports periodic condition reports and real-time alerts


                                                                                                Railcar
                                     Gateway                 Wireless sensor nodes             tracking
                                                                                                                      Weight
                                                                                                                    distribution
              Mote-based
              wireless
              sensor
              networking

                                                 Bearing                             Sensors               Brake
                                               temperature                                                control




                                                                                                                         © 2010 IBM Corporation
Let’s build a smarter planet: Rail

A Major European Railway Service
Preventing accidents with smarter transportation systems


The Need:
With different applications and business processes in place to manage maintenance               “With this project, we want to
of 500,000 ―rolling stock‖ (trains, locomotives, wagons, etc.), it was difficult for staff at   move from curative and
this European railway company to gather the data necessary to predict problems                  preventive maintenance to
before they affected rail services.
                                                                                                predictive maintenance. Our
                                                                                                ambition is to reduce
The Solution:                                                                                   maintenance costs by 30%.”
The company launched a comprehensive project to optimize maintenance of its                         —Project Director for a Major
trains, locomotives, wagons and other ―rolling stock.‖ Through its work with IBM and                 European Railway Service
use of IBM® Maximo® Asset Management, the company has integrated maintenance
processes and centralized information, including real-time data collected by intelligent
sensors placed on railway equipment ─ making it available to the company’s 10,000
maintenance management officers via desktop PCs and PDAs.                                       Solution components:
                                                                                                 IBM® Maximo® Asset
What Makes it Smarter:
                                                                                                  Management
 Predictive maintenance and analysis of data is helping company prevent
  accidents and avoid domino effects that can cause service disturbances
 30% reduction in maintenance costs by moving from a preventive to predictive
  maintenance model
 Improved level of service delivered to passengers with real-time visibility
  into operations
                                                                                                                     TIP14114-FREN-00

                                                                                                                   © 2010 IBM Corporation
Let’s build a smarter planet: Rail

A national railway company
Improves the reliability and safety of railways with greater
efficiency and accuracy

The Need:
                                                                                           Solution components:
A national railway in Canada needed the ability to identify and diagnose train
equipment health, reduce derailments, have more accurate and efficient equipment            IBM WebSphereILOG Rules
maintenance and generate alarms/alerts accordingly. Additionally, it needed to               for .NET
consolidate all decision systems in one place in order to enable change
                                                                                            IBM Software Services for
management, react to new needs and implement cross-detector logic.
                                                                                             WebSphere – Lab Services
The Solution:
With a solution based on IBM WebSphere ILOG Rules for .NET, IBM has
implemented a system that measures and correlates a large of number of critical
health factors associated with running a train in real-time using ―wayside detectors.‖
The system analyzes data such as speed, heat of wheels and contact between rail
and wheel. It then makes decisions based on combined logic. and suggests
proactive recommendations for scheduling maintenance, ordering parts or even
stopping the train.

What Makes It Smarter:
 Improves ability to diagnose train equipment health, minimizing the potential for derailment
 Gains a more accurate and efficient process for proactively maintaining equipment at optimal levels
 Generates and monitors alarms in real time, helping operators eliminate potential safety hazards before they can cause
  larger issues
 Enables business users to manage rules

                                                                                                              © 2010 IBM Corporation
Let’s build a smarter planet: Rail

A European national rail service
SOA-based online ticketing system speeds train system
into the future

The Need:
This railway was deploying a high-speed rail system within the country to offer
passengers a viable alternative to flying. However, NRS needed to eliminate its
siloed IT systems and a very basic Web-based ticketing system to compete
effectively against both other rail companies and low-cost airlines flying within
the country.
The Solution:
IBM Global Business Services was engaged to design and implement a service
oriented architecture (SOA)-based infrastructure for its corporate IT systems.
At the same time, IBM and Accenture worked with NRS to deploy on mainframe a
new, state-of-the-art SOA-based online ticketing system that provides real-time
information to customer regarding train schedules, seat availability,
and applicable fares.                                                               Solution components:
What Makes it Smarter:                                                               IBM Global Business
 The new online ticketing system provides new information to passengers, helping     Services - GBS Application
  them make more informed travelling decisions                                        Innovation Services
 After launching its high speed rail, sales increased 200%, confirming market       IBM WebSphere
  share in the new market for airline passengers                                     IBM Rational Software
 SOA gives NRS more flexibility in adding or replacing various systems
                                                                                     IBM System z
  components, such as the e-billing system that may be needed in the near future


                                                                                                      © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Amtrak
Extending Maximo to Meet Unique Business Requirements


                                   Amtrak's Northeast Corridor is the busiest railway in
                                   North America, with more than 2,600 trains operating
                                   over some portion of the Washington-Boston route each
                                   day, and carried 10,897,852 passengers in FY 2008 on
                                   the Acela Express, Regional Service or other trains.



  Business Challenges                        IBM Solution                             Business Benefits
   Asset management solution for             Maximo Asset Management selected        Improved labor utilization – track
    maintenance of linear infrastructure       in 2004                                  labor to specific work
    of Amtrak-owned property, including       Integration to SAP financials and       Achieved greater compliance to
    363 miles of the Northeast Corridor        ESRI GIS                                 Federal Rail Administration (FRA)
    connecting Washington DC to                                                         regulatory inspections
                                              Tailored multiple screens to fit the
    Boston, the busiest passenger line in
                                               Amtrak business processes               Have gained over US$8M annual
    the country with trains regularly
                                              Integration to track geometry car to     Return on Investment (ROI) in
    reaching speeds of 125-150 mph.
                                               capture conditions                       reimbursable work done for others on
   Need to integrate with financial,                                                   the mix-use Northeast Corridor
    graphical information (GIS) and           Maximo Linear Asset Manager added
                                               in 2008                                 Replaced multiple time keeping
    analytical systems
                                                                                        systems with a single time keeping
   Able to address the needs of linear       Manage over 1,500 support fleet
                                                                                        solution developed by Amtrak in
    assets and support fleet                   vehicles with Maximo
                                                                                        Maximo



                                                                                                                 © 2010 IBM Corporation
Let’s build a smarter planet: Rail

San Francisco Bay Area Rapid Transit
Using IBM Technology to Improve Safety and Reliability


                                ―Because we are managing an aging fleet while planning
                                for the future, the efficiency of BART requires visibility
                                across all of our assets to provide safe and uninterrupted
                                railway services to our customers.‖
                                            - Program Director, BART Business Advancement Program



  Business Challenges                           IBM Solution                               Business Benefits
   Complete replacement of financial,           IBM Maximo for Transportation to          Supports purchase, test and
    HR, maintenance, inventory control            manage rolling stock and support           acceptance of new passenger cars
    and purchasing systems                        fleet                                     Allows BART to adopt international
   Single database for multiple assets          IBM Maximo Asset Management to             standards for inventory conventions
    including 669 Rail Cars, 246 Miles of         manage linear assets and facilities       Provides complete visibility into all
    Track, and 39 Stations, including a          Integration to corporate financial and     assets and services allowing BART to
    large number of elevators and                 HR systems                                 better address regulatory
    escalators                                                                               requirements
   Transition from main frame, client
    server and desk top applications to
    web architecture
   Manage passenger car replacement
    project



                                                                                                                     © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Taiwan High Speed Rail
Revolutionizing High Speed Rail Service in Taiwan


                                For traveling at up to 300 km per hour from Taipei
                                City and Kaohsiung City in about 90 minutes the
                                efficiency of the transportation system is heavily
                                dependent on proper maintenance and repair of
                                thousands of components.



  Business Challenges                          IBM Solution                                   Business Benefits
   Support the country’s first high            IBM Maximo for the Maintenance                Overall efficiency in cost & budget
    speed rail system with operations            Management System (MMS) that                   management, resource forecasting,
    that started in 2007                         supports asset management, work                labor utilization and inventory
   Maintain 130 Trains, with 90,700 daily       order scheduling, project planning,            turnover
    passengers, over a 335 Km rail               inventory management, resources               Automated signature process
    network                                      management and purchasing
                                                                                               Improved work order reaction times,
                                                 management
   Manage over 300,000 assets                                                                  asset efficiency and purchasing
    including rolling stock, track, signals,    IBM Maximo Asset Management to                 efficiency
    depots, stations, facilities and             manage rail rolling stock, support
                                                                                               Consistent data integrity across
    communications                               fleet, linear assets, stations, facilities
                                                                                                multiple asset types
                                                 and communications equipment
   Achieve a 99% on time rate within 6                                                        Met the on time rate target with an
    seconds of scheduled train stops            Integration to ERP, HR and data
                                                                                                overall average of 99.15%
                                                 collection systems



                                                                                                                         © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Bombardier Transportation
Supporting global rail services with a single asset
management solution

                                        Founded in 1942 by Joseph Bombardier, Bombardier
                                        is the global leader in passenger rail equipment and
                                        third largest manufacturer of civil aircraft. Rail
                                        services represent 20% of Bombardier
                                        Transportation’s revenue.



  Business Challenges                         IBM Solution                              Business Benefits
   Bombardier Transportation required         IBM Maximo for Transportation to         Improved Warranty tracking
    a multi-site, multi-language EAM            manage rolling stock, including asset    Failure reporting available to all
    solution to support rail service            management, work management and           Bombardier customers
    operations at over 60 separate rail         warranty recovery
                                                                                         Able to manage customer
    systems around the world                   IBM Maximo Asset Configuration            configuration of delivered rail assets
   Manage over 100,000 assets globally,        Manager to support the configuration
                                                                                         Manage aftermarket parts business
    supporting over 100 work sites              management of rail equipment
                                                                                         Implemented inventory optimization
   Replace customization with out of          Integration to SAP corporate
                                                                                          from an IBM Business Partner and
    the box capabilities for configuration      financial system
                                                                                          reduced inventory costs by 20%
    management & warranty recovery
                                                                                         Meets long term strategic direction
   Integrate with existing financial
    system & support planned interfaces
    with health monitoring & RFID


                                                                                                                     © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Washington Metro
Asset Management in the United States’ Capital



                                         With a 106.3 mile rail network and more than
                                         12,300 bus stops, Washington Metropolitan Area
                                         Transit Authority (WMATA) is one of the largest
                                         North American Transit Systems.



  Business Challenges                       IBM Solution                               Business Benefits
   A complex operating environment          IBM Maximo for Transportation to          Increased labor utilization and asset
    with 1,141 rail cars, 1,500 active        manage rolling stock and support           reliability
    buses, 1,686 service vehicles and         fleet                                     Inventory fully visible to Maintenance
    other equipment                          IBM Maximo Asset Management to             Staff
   Deploy a single asset management          manage linear assets and facilities       Real time access to up to date asset
    solution across the enterprise to        Integration to corporate financial, HR     information, enabling efficient job
    manage all assets                         & dispatching systems                      scheduling to minimize passenger
   Replace antiquated financial, HR,                                                    impact
    maintenance, inventory control and                                                  Able to accurately capture assets
    purchasing systems                                                                   maintenance costs
                                                                                        Standardized business process
                                                                                         across the enterprise




                                                                                                                  © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Tube Lines
Taking Stock of Assets with IBM Maximo to support the
London Underground

                             ―Creating a single source of all asset
                             information has provided unprecedented
                             visibility of asset performance across the
                             three lines managed by Tube Lines‖
                                     - Asset Systems Technical Manager, Tube Lines



  Business Challenges                         IBM Solution                            Business Benefits
   An up-to-date solution to proactively      IBM Maximo Asset Management to         Maximo Asset Management has
    maintain 200 miles of track, 255            manage rolling stock, linear assets     enabled Tube Lines to provide a
    trains, 100 stations, 2,395 bridges         and facilities                          consistent approach to maintenance
    and structures, 71 lifts and 227           Mobile access to Maximo to support      management across 15 asset classes
    escalators                                  work management                        Real time access to up to date asset
   Deploy a single asset management           Integration to incorporate ERP and      information, enabling efficient job
    solution across the enterprise              HR systems                              scheduling to minimize passenger
   Provide engineers with mobile                                                       impact
    access to asset information                                                        Reduced duplication, improved
   Streamline processes and improve                                                    information accuracy and trend
    resource effectiveness                                                              analysis for more proactive
                                                                                        maintenance strategies



                                                                                                                 © 2010 IBM Corporation
Let’s build a smarter planet: Rail

DB Schenker Rail
Keeping up with the trains using IBM Maximo


                                       DB Schenker Rail, formerly English, Welsh & Scottish Railway, is
                                       the United Kingdom’s largest rail freight company, moving over
                                       100-million tonnes of freight each year with 8,000 trains each week.




  Business Challenges                        IBM Solution                           Business Benefits
   Increase regulatory compliance and        IBM Maximo to support asset, work,    Helped achieve regulatory compliance
    achieve availability & reliability         campaign, materials and warranty      Preventive maintenance driven by
    targets for the EuroCargo Rail             management of rolling stock            multiple meters
    division                                  IBM Maximo for Transportation         Increased workshop staff productivity
   Improve the efficiency of the              industry solution to include key       %
    maintenance staff                          capabilities for maintenance          Successful knowledge transfer from
   Address a highly mobile workforce          counters, wheel set wear, labor        IBM to EWS staff
    with a multi-site and multi-lingual        reporting, component tracking and     Solution is quick and flexible
    capability                                 reliability analysis                  Able to use the system close to out of
   Select a new EAM system where             Integration to SAP ERP                 the box, with limited system
    there was confidence in the supplier,                                             configuration
    future prospects for the system and                                              Expanding Maximo to all divisions
    knowledge transfer – ability to
    configure system ourselves


                                                                                                               © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Guangzhou Metro
Using Maximo to lead China’s transformation to a mass transit society


                                       Guangzhou Metro is undertaking a huge infrastructure build-out designed
                                       to double its capacity to 4 million passengers per day. The sheer pace of
                                       its expansion was making it increasingly difficult for Guangzhou Metro to
                                       manage, monitor and maintain the swelling base of assets




  Business Challenges                         IBM Solution                               Business Benefits
   Extend asset life and maximize rider       IBM Maximo Asset Management to            Increased safety and reliability of the
    safety and convenience                      support all asset types, including         Guangzhou metro network through
   Track every asset in Guangzhou              trains, track, stations and facilities     predictive maintenance capabilities
    Metro’s network over its entire            Integrated EAM and ERP using the          Extended life of fixed asset investments
    lifespan, including servicing               IBM Maximo Enterprise Adapter             Improved process efficiency by virtue
    guidelines and service history              resulting in financial and physical        of asset management and ERP process
   Integration of asset management             perspective on asset management            integration
    with key enterprise functions to            decisions
                                                                                          Improved cost efficiency through the
    enable improved decision-making            Guangzhou Metro worked with IBM            coordinated management of parts
    and process optimization                    to deploy an integrated asset              inventories
   Shift to performing maintenance on a        management solution flexible
                                                                                          Improve asset management decision
    predictive basis — before                   enough to track assets across the
                                                                                           making through improved information
    breakdowns occur                            lifecycle
                                                                                           transparency



                                                                                                                     © 2010 IBM Corporation
Let’s build a smarter planet: Rail

IBM SMART SURVEILLANCE SOLUTION WAS PIONEERED BY IBM
RESEARCH AND HAS BROAD CAPABILITIES



                         Video data is indexed and can be used for several applications
     Flexibility         The same surveillance data can provide business intelligence, damage detection,
                          employee identification and help address regulatory compliance requirements
                         Data reuse can reduce costs and improve efficiency


     Scalability  Open standards make it easier to add or change hardware and analytics technologies


                         Extend beyond time/date queries or alerts
Broad Search
 Capabilities  Allow queries based on color, object, size
                         Allow compound queries (e.g. all white vans in the downtown area since January 1)


    Integration  Open standards enable integration with other IT systems, sensors and algorithms
     Standards  Open standards supports cross-agency sharing, enabling use of the same data by
                          multiple applications


                                                                                                 © 2010 IBM Corporation
Let’s build a smarter planet: Rail

Trademarks and notes



        IBM Corporation 2009


         IBM, the IBM logo and ibm.com are registered trademarks, and other company, product or
          service names may be trademarks or service marks of International Business Machines
          Corporation in the United States, other countries, or both. A current list of IBM trademarks is
          available on the Web at ―Copyright and trademark information‖ at
          www.ibm.com/legal/copytrade.shtml
         Adobe, the Adobe logo, PostScript, the PostScript logo, Cell Broadband Engine, Intel, the
          Intel logo, Intel Inside, the Intel Inside logo, Intel Centrino, the Intel Centrino logo, Celeron,
          Intel Xeon, Intel SpeedStep, Itanium, IT Infrastructure Library, ITIL, Java and all Java-based
          trademarks, Linux, Microsoft, Windows, Windows NT, the Windows logo, and UNIX are
          trademarks or service marks of others as described under ―Special attributions‖ at:
          http://www.ibm.com/legal/copytrade.shtml#section-special
         Other company, product and service names may be trademarks or service marks of others.
         References in this publication to IBM products or services do not imply that IBM intends to
          make them available in all countries in which IBM operates.




                                                                                                      © 2010 IBM Corporation

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Smarter Planet: Rail

  • 1. George Mattathil - 5/11/2011 Let’s Build a Smarter Planet: Rail © 2010 IBM Corporation
  • 2. Let’s build a smarter planet: Rail A mandate for change Morgan Stanley estimates that there will be US$300 billion worth of global investment to upgrade, expand and initiate railway networks during the next five years. Consistent with this investment, consider the growth that is occurring across the world:  By 2012, rail industry revenue is forecast to be US$514 billion, with a 3.3 percent compound annual growth rate (CAGR) from 2007 to 2012  The global rail supply market grew 9 percent from 2006 to 2007 and is expected to continue growing 2.0-2.5 percent over the next nine years  Asia Pacific will grow at 6 percent average CAGR, while China alone will grow 11.8 percent CAGR from 2007 to 2012.5  U.S. freight railroad demand will increase 88 percent by 2035, requiring an estimated US$148 billion of investment for existing lines  Europe’s passenger railway market will have a value of US$116.5 billion in 2012, an increase of 19.3 percent from 2007 and a CAGR of 3.6 percent If the rail industry is to meet this projected growth, it needs to solve substantial, even transformational, business issues and challenges. Based on an independent study commissioned by IBM in 2008, the top four challenges cited by global rail executives were capacity and congestion, operational efficiency and reliability, structural and competition issues, and safety and security © 2010 IBM Corporation
  • 3. Let’s build a smarter planet: Rail Air travel is under pressure from high-speed rail which is perceived as more convenient, greener and competitively priced (under 600Km) Share of Madrid-Seville 80% market – AVE Estimated share of UK 3-hour 70% domestic market – SNCF Share of Korea 63% market – KTX Share of Tokyo-Akita 60% market – JR East Decline in inter-city 50% flights – THSR Share of Madrid-Barcelona 46% market – AVE ―An airplane on wheels‖ Air France-KLM Chairman, Jean-Cyril Spinetta on the TGV. © 2010 IBM Corporation
  • 4. Let’s build a smarter planet: Rail Demands on transportation providers will increase over time, driving the need for new intelligence and insight, greater connectivity and transparency, and improved customer service. DRIVERS OF CHANGE CHALLENGES STRATEGIC IMPERATIVES Population explosion Capacity and congestion Predict demand and World population is growing and Meet the growing, changing optimize capacity and transportation providers will need demand efficiently, consistently assets. to expand capacity to keep up. and profitably? Urbanization Empowered customers Dramatically improve As the number and size of cities Deliver transportation choices the end-to-end customer grows, pressure on transportation and information in the way that experience. systems to move people and end customers value. materials between and within those cities grows. Globalization Efficient, green operations Improve operational The growing interconnectedness Reduce cost and dependency on efficiency while reducing of the world is driving inter-city and scarce resources while reducing environmental impact. international growth in demand, with environmental impact. an expectation of improved service. Technology Safety and security Assure safety and security. Technology now enables the capture Unobtrusively reduce exposure and analysis of real-time information to security risks and increase the about the status, location and safety of operations, with less condition of everything. cost and impact on customers. © 2010 IBM Corporation
  • 5. Let’s build a smarter planet: Rail Drivers of change: Exploding populations, urbanization, globalization and technology are driving change, which creates unique challenges and opportunities for transportation providers. 2 billion / 7 billion 476 cities over 1 million It took all of history for human In 2010 there are 476 urban areas with population to reach 2 billion, and only at least 1 million people. That’s an one generation to more than triple to increase of 573% from 1950 when there nearly 7 billion. were 83. Over half the world’s population now lives in urban areas. >100x growth 4 billion / 1 billion International trade in manufactured Today, there are over 4 billion mobile goods increased more than 100 times phone users, and over 1 billion internet (from $95 billion to $12 trillion) in the users, growing rapidly to 2 billion. 50 years following 1955. © 2010 IBM Corporation
  • 6. Let’s build a smarter planet: Rail The needfor progress is clear. Capacity and congestion Empowered customers 100 billion Euros 30,000 in 6 days Traffic congestion costs the European 30,000 people from 47 countries Union over 1% of GDP, or over 100 billion downloaded an airline’s new smartphone Euros per year. application in the first 6 days. 7 billion / 6 billion 87% use the Web By 2020 there may be global demand for 7 87% of U.S. travelers use the Web. billion air passenger trips. Yet airports and airlines will only have capacity for 6 billion. 4.6 billion cell phones (Organization for Economic Cooperation and Development) 4.6 billion worldwide by the end of 2009. $30 trillion 60% and -19% The world will spend about $30 trillion over 60% of consumer sentiment around the the next two decades on new roads and U.S. air travel industry is negative, and similar projects according to CIBC there are 19% fewer brand-loyal travelers in economist Benjamin Tal. 2008 than in 2006—a recipe for commoditization. © 2010 IBM Corporation
  • 7. Let’s build a smarter planet: Rail The needfor progress is clear. Efficient, green operations Safety and security 2.8 billion gallons >41 thousand lives The U.S. Department of Transportation reports 4.2 billion hours over 41,000 road fatalities every year from 1995 U.S. road traffic congestion during to 2007. 2007 wasted 2.8 billion gallons of fuel and 4.2 billion hours. Total cost of wasted fuel and time was $87.2 billion. $5.9 billion 3% or 13% >60% of operating cost Airlines worldwide generate 3% of all Airlines spend $5.9 billion per year on security (IATA). greenhouse gas emissions. Some say Airports spend >60% of their operating cost on safety that because aircraft operate in the upper and security (ACI). atmosphere, the impact may be equivalent to 13% of emissions from all sources. © 2010 IBM Corporation
  • 8. Let’s build a smarter planet: Rail The opportunity for progress is clear. 18% less traffic 423 miles using 1 gallon A European city reduced traffic by up One ton of rail freight can be moved 423 miles using to 18%, and increased use of public one gallon of fuel, and a single freight train can transit by 80,000 passengers per day. replace 280 trucks, reducing fuel use, congestion Citizens voted to support the project. and emissions. 1.5% per year 50% 10% fewer breakdowns A container port in the UK reduced equipment by 2050 breakdowns by 10%. Airline industry environmental targets: 1.5% average annual improvement in 60% fewer delayed bags fuel efficiency from 2009 to 2020. A European airport reduced mishandled baggage by 60% using an innovative RFID-based solution. Cap aviation CO2 emissions from 2020 onwards (carbon neutral growth). 50% reduction in CO2 emitted by 2050 relative to 2005. 99.15% on time An Asian high-speed railway achieves 99.15% on- time performance. © 2010 IBM Corporation
  • 9. Let’s build a smarter planet: Rail The reality of living in a globally integrated world is upon us.  Frozen credit markets, limited access to capital, unpredictable funding.  Economic downturn and future uncertainty of economic growth.  Environmental sustainability challenges and new global regulation.  Oil and fuel volatility and long-term cost escalation.  Information explosion, channel proliferation and loss of market-making power.  Emergence of indirect substitutes and alternatives.  Changing travel demand and shifts in buying behaviors.  The need to increase or decrease capacity rapidly to align with demand.  New customer demands and business models. The world is connected: economically, socially and technically. © 2010 IBM Corporation
  • 10. Let’s build a smarter planet: Rail This mandate for change is a mandate for smart. The infrastructures, systems and processes that underpin how business and society function are becoming digitally aware, interconnected and infused with intelligence. The new intelligence applies to how services are delivered, to the movement of people, freight, money, information, electricity and more. Each represents a chance to do something better, faster and more productively. This is a new frame of reference with enormous promise for economic growth, with opportunities to think and act in new ways. © 2010 IBM Corporation
  • 11. Let’s build a smarter planet: Rail Success will depend on deeper, more holistic and informed planning, collaboration and execution. Transportation providers will need to become smarter. PREDICT DEMAND AND DRAMATICALLY IMPROVE THE OPTIMIZE CAPACITY AND ASSETS END-TO-END TRAVELER OR CUSTOMER EXPERIENCE Predict demand, align transportation asset and infrastructure deployment Understand customer needs and continuously adapt operations. and provide information and services to meet those needs in the manner preferred. TRANSPORTATION PROVIDERS IMPROVE OPERATIONAL ASSURE SAFETY EFFICIENCY WHILE REDUCING AND SECURITY ENVIRONMENTAL IMPACT Leverage new sources of Continuously balance cost and information and new ways environmental impact of scarce of using that information to resource use while exploring new improve security and safety. operational alternatives. © 2010 IBM Corporation
  • 12. Let’s build a smarter planet: Rail Almost all usable information was once authored or processed by a person. That kind of information is now being overwhelmed by machine-generated data from sensors, RFID, meters, microphones, surveillance systems, GPS systems and all types of objects. Volume of digital data The number of emails sent every day is estimated to be over 200 billion. Every day, 15 petabytes of new information is being generated. This is 8 times more than the information in all U.S. libraries. By 2010, the amount of digital information will grow to 988 exabytes (equivalent to a stack of books from the Sun to Pluto and back). © 2010 IBM Corporation
  • 13. Let’s build a smarter planet: Rail Decision making velocity is about optimizing the speed of insight as well as the confidence that decisions and actions taken will yield the best outcomes. Velocity of decision making Every week, the average information worker spends 14.5 hours reading and answering email, 13.3 hours creating documents, 9.6 hours searching for information and 9.5 hours analyzing information. For every 1,000 knowledge workers, $5.7 million is lost annually in time wasted reformatting information between applications. Not finding the right information costs an additional $5.3 million per year. 42% of managers say they inadvertently use the wrong information at least once per week. 70% of executives believe that poor decision making has had a degrading impact on their companies’ performance. © 2010 IBM Corporation
  • 14. Let’s build a smarter planet: Rail The transformation to smart is enabling us to become more efficient, productive and responsive. Traditional approach Smarter approach Instinct and intuition Fact-driven Corrective Directive Years, months, weeks Hours, minutes, seconds Decision support Action support Efficient Optimized © 2010 IBM Corporation
  • 15. Let’s build a smarter planet: Rail + + = An opportunity to think and act in new ways. Predict demand Dramatically improve Improve operational Assure safety and optimize the end-to-end traveler efficiency while reducing and security. capacity and assets. or customer experience. environmental impact. © 2010 IBM Corporation
  • 16. Let’s build a smarter planet: Rail Smart transportation: Predict demand and optimize transportation capacity and assets. SMART IS SMART IS Understanding and modeling a holistic Modeling scenarios and better planning view of demand—across the routes, schedules and maintenance by transportation network. optimizing assets, infrastructure and capacity. SMART IS SMART IS Creating dynamic multimodal plans and Gaining deeper insights into the utilization models, and executing real-time of transportation assets and infrastructure. operations based on real-time data. © 2010 IBM Corporation
  • 17. Let’s build a smarter planet: Rail Smart transportation: Predict demand and optimize transportation capacity and assets. (continued) Netherlands Railways uses ILOG software to weigh 56,000 Stockholm—IBM solutions improved congestion and quality variables including passenger demand and available assets of life reducing peak period traffic by 18%. Use of public to assemble and schedule over 5,000 trains per day, transit increased by 80,000 passengers per day. CO2 realizing a 6% savings in operating efficiency and saving emissions from vehicles were reduced $28.5M per year. Also improved on-time performance by by 14%. Increased revenue is channeled back into 2%, helping capture an additional $57M in fares. improving public transportation. Queensland Motorways reduced road congestion during A large railway in Asia uses an automated crew peak hours, improved Brisbane commuter experience scheduling system that evaluates the skills and location and supports local economic prosperity by avoiding of available employees in real time to assign staff to traffic snarls in commercial areas. scheduled trains. Employees receive their assignments via cell phone text messages, and log in to work using biometric scanners, ensuring positive identification and access control. The system provides management with real time information about available staff and forward- looking intelligence to optimize resource allocation, reducing staff shortages and overtime expense. © 2010 IBM Corporation
  • 18. Let’s build a smarter planet: Rail Smart transportation: Dramatically improve the end-to-end traveler or customer experience. SMART IS SMART IS Increasing revenue and share by Reducing cost and differentiating developing more loyal customers who customer service. become advocates. SMART IS SMART IS Optimizing capacity to meet demand and Better serving customers by reduce delays. anticipating and catering to their needs throughout the journey and by collaborating with adjacent service providers. © 2010 IBM Corporation
  • 19. Let’s build a smarter planet: Rail Smart transportation: Dramatically improve the end-to-end traveler or customer experience. (continued) A European airport, in partnership with an international A leading global logistics firm uses ILOG Optimization airline, reduced mishandled baggage by 60% with an software to route and consolidate shipments for their RFID-based baggage handling system. Reduced customers, lowering supply chain transportation costs transfer time by 22% and operational cost by 40%. by up to 25%. Singapore Land Transport Authority provides a unified IBM developed an application for Air Canada using the Apple payment system using smart cards for public transit, iPhone, iPod Touch, and Blackberry allowing passengers to tolls and parking, improving the commuter experience. book flights, download electronic boarding passes, check-in, Planners use data from the system to develop optimal get flight status and book rental cars and other services. routes and schedules, reducing congestion and There were over 30k downloads of the app from 47 countries increasing the appeal of public transit. Reduced fare in the first 6 days and a 13.5% increase in mobile check-ins. leakage by 80% and cost of fare processing by 2%. 93% of Air Canada passengers say multichannel self service has improved their travel experience. Canadian New Media Award for Best Mobile App of 2009. © 2010 IBM Corporation
  • 20. Let’s build a smarter planet: Rail Smart transportation: Improve operational efficiency while reducing environmental impact. SMART IS SMART IS Increasing the extended transportation Increasing the ability to deal with irregular network capacity using current operations across the transportation infrastructure and assets without network and modes. increasing spend, including collaborating with adjacent service and infrastructure providers. SMART IS SMART IS Saving money and time by knowing Modeling the financial impact of the location, status and availability of business decisions, streamlining your assets—reducing total resource planning, and monitoring use and carbon footprint performance to maximize revenue, enterprise-wide. margins and cash flow. © 2010 IBM Corporation
  • 21. Let’s build a smarter planet: Rail Smart transportation: Improve operational efficiency while reducing environmental impact. (continued) A U.S. state department of transportation used Cognos Taiwan High Speed Rail Corporation uses IBM Maximo to improve their operational reporting and financial for their advanced maintenance management solution management, which had a direct positive effect on which used condition-based monitoring to predict and their bond rating and interest rates available to them. act on maintenance requirements and manage over 320k asset elements. They have improved asset life and availability with 99.15% on-time train performance. A major European railroad reduces maintenance cost COSCO, a global shipping firm, engaged IBM to help by 30% by moving from curative and preventative optimize their supply chain using the Supply Chain maintenance to predictive maintenance using Maximo. Network Optimization Workbench (SNOW). As a result of the engagement, COSCO consolidated from 100 to 40 distribution centers, lowered logistics cost by 23% and reduced CO2 emissions by 15%. © 2010 IBM Corporation
  • 22. Let’s build a smarter planet: Rail Smart transportation: Assure safety and security. SMART IS SMART IS Predicting and avoiding vehicle failure. Reducing congestion and accidents by balancing traffic across routes or modes. SMART IS SMART IS Better managing security uniformly Improving reliability and uptime by across the transportation network with optimizing the supply chain and MRO reduced cost, while protecting the processes. privacy of individuals. © 2010 IBM Corporation
  • 23. Let’s build a smarter planet: Rail Smart transportation: Assure safety and security. (continued) A U.S. hub airport implemented a digital video A national rail system in Europe monitors its rail surveillance solution and a security command and infrastructure in real time and resolves more than control center. The system also uses information from 50% of issues before they affect train operation biometric handprints and badge readers. The system using a service management solution built with IBM is more effective at recognizing risks and alerting the Tivoli software. command center. The effective labor cost savings is US $2.2m per year. Using RFID tags on parts and containers, IBM has An Italian parcel delivery company reduced their helped a major aircraft manufacturer track aircraft security staff and increased the level of security for parts through the entire life cycle including all their 10 hub facilities using an IBM solution that maintenance and the plane in which it is used. The centrally monitors intrusion, access control readers, solution has allowed them to be more responsive to digital video and other sensor technologies. customers, and reduced fleet down-time without compromising safety. © 2010 IBM Corporation
  • 24. Let’s build a smarter planet: Rail The smarter transportation system is an interdependent ecosystem— integrated around standard information, processes and technology. Transportation Government providers Participants aggregate, analyze Information s and act upon data to: Terminal Processes Regulators operators 1. Predict demand and optimize transportation Technology assets and infrastructure. Freight and Travel Passenger and service logistics 2. Dramatically improve the service end-to-end traveler or journey information providers providers Freight shipment customer experience. information 3. Improve operational Passengers Freight Location, status and and drivers customers efficiency while reducing condition of assets and environmental impact. infrastructure Vehicle and Influencers: Usage patterns across 4. Assure safety and security. infrastructure Associations all modes of transportation manufacturers and universities © 2010 IBM Corporation
  • 25. Let’s build a smarter planet: Rail IBM’s solution strategy is aligned with the needs of transportation providers. STRATEGIC IMPERATIVES HOW IBM HELPS MEET THE NEED Predict demand and optimize  Demand and revenue management  Road user transportation capacity, assets and  Enterprise asset management and MRO charging infrastructure.  Route and schedule optimization  Fleet optimization  Traffic modeling and prediction  Integrated fare management  Irregular operations management Dramatically improve the end-to-  Reservation system modernization  Loyalty management end traveler/customer experience.  Multichannel self-service  Cargo management  Ticketing and payment systems  Risk management  One view of the customer  CRM  Customer analytics Improve operational efficiency while  Enterprise asset management  Resource optimization reducing environmental impact.  Enterprise infrastructure management  Carbon management  Enterprise application systems  Condition monitoring  Green supply chain optimization  Systems virtualization Assure safety and security.  Identity and access management  Biometric identification  Condition based monitoring  Risk analytics using wireless sensors  Digital video  Data and application security surveillance  Server and endpoint security  Network security © 2010 IBM Corporation
  • 26. Let’s build a smarter planet: Rail What makes IBM different?  IBM’s breadth of experience working with transportation providers worldwide across all modes of transportation is unparalleled.  IBM has strong analytical tools to aggregate, analyze and act upon data gathered from disparate sources—providing solutions for planning, scheduling, routing, CRM, pricing, revenue management, intelligent traffic and infrastructure management.  IBM has practical experience implementing innovative solutions to help clients become smarter—more instrumented, interconnected and intelligent.  IBM is the market leader in collaborating with transportation clients to deliver: the fastest time to value with minimum risk through innovative solutions; the most comprehensive portfolio of hardware, software and services; and deep domain experience and expertise.  IBM Centers of Excellence, IBM research, proofs of concept and first-of-a-kind projects demonstrate innovation and competence in solution implementation. © 2010 IBM Corporation
  • 27. Let’s build a smarter planet: Rail We’ve only just begun to uncover what is possible on a smarter planet. The infrastructures, systems and processes that underpin how business and society function are becoming digitally aware, interconnected and infused with intelligence. The new intelligence applies to how services are delivered; to the movement of people, freight, money, information and electricity; and to how billions of people live and work. Each represents a chance to do something better, faster and more productively. This is a new frame of reference with enormous promise for economic growth, with opportunities to think and act in new ways. Let’s work together to drive real progress. © 2010 IBM Corporation
  • 28. Let’s build a smarter planet: Rail IBM Offerings Overview From Hardware to Software to Services to Financing and R&D … We’ve Got It Covered! Research & Hardware Software Global Services Global Financing Development World’s Largest World’s Largest World’s Largest World’s Most World’s Largest Computer Hardware Middleware Software Professional Service Influential Research Technology Provider Provider Provider Organization Financing Provider  Enterprise Servers  WebSphere  Global Business  World Leader in  Financing for Services Patents – 13th Hardware, Software  Storage Systems  DB2 Consecutive Year & Services  Global Technology  Printing Systems  Tivoli Services  5 Nobel Prize  Financing for both  Technology  Lotus Winners IBM and 3rd-Party  Managed Services Elements  Rational  World Leader in  Industry Focused Proponent of Open  Global Asset  Software Product Solutions Standards Recovery Services Services Integrated Solutions © 2010 IBM Corporation
  • 29. Let’s build a smarter planet: Rail IBM Research Worldwide © 2010 IBM Corporation
  • 30. Let’s build a smarter planet: Rail Rail: Analytics Traditional  Passenger Rail Schedule Optimization  Railroad Blocking Optimization for Freight  Rolling Stock Optimization Planning  Rolling Stock Preventative Maintenance Planning  Infrastructure Preventative Maintenance Planning  RFID Tracking For Operational Monitoring & Analysis Emerging  Sensor Networks for Automatic Train Formation  Embedded Sensors for Condition-Based Monitoring and Predictive Maintenance  Video Inspection of Rolling Stock  Video Security of Rail Yards / Property  Customer Loyalty, Analytics, Performance Dashboards  Customer On-Board Buying Trends Next Gen  Positive Train Control : Monitoring Trains To Proactively Prevent A Catastrophic Failure  Remote Locomotive Control on the Main Line © 2010 IBM Corporation
  • 31. Let’s build a smarter planet: Rail Smarter Rail Solution Research to Improve Operation Safety, Efficiency & Resilience Instrumentation: Asset Condition Analysis Dynamic Scheduling & Planning Condition monitoring Integrate, mining, predict & real Analyze impact & generate optimal response plan Enable accurate, time alarm real time & effective sensing Use cases How to optimize maintenance schedule: Are there any patterns of the asset lifetime? Asset Failure e.g. certain type of Time-table rescheduling asset/model in certain geo location & weather conditions has shorter lifetime. Accident Asset lifetime Sensor based asset pattern analysis Rolling stock rescheduling Inspection & Monitoring Integrate Emergency detected … ->Dynamic Response Dispatch Driver & crew rescheduling Asset condition prediction center How to reduce Maintenance rescheduling Natural Hazards unexpected asset (e.g. Weather) failure? e.g. predict when a certain asset’s certain measurement would be Timely React: Train halt, low over safe/alarm limit down speed, reroute, cancel train run, new work/maintenance Way side environment schedule, … monitoring © 2010 IBM Corporation
  • 32. Let’s build a smarter planet: Rail Correlated Incident Pattern Analysis & Early Warning for Railway Operations’ Emergency Management Defects on the Train Rail sensors Defects on the Track Metrologic Avoid or Mitigate al Services Weather threats Scheduling & Emergency Incidents Disaster Early Command Forecast & Warning Disaster threats System Report Services patterns  Railway emergencies are caused by  Research project proposal: Correlated Incident Pattern complex reasons Analysis & Early Warning – Track or train defects – Railway sensor data mining, weather & disaster – Hazards brought by weather or disasters information mining correlated with incidents & sensor data  Railway sensors produce tons of – Incident causes pattern analysis monitoring data, but – Real time data processing for early warning – Not well analyzed to detect patterns – Not correlated with weather & disaster data  Need access to customer data & sensor systems © 2010 IBM Corporation
  • 33. Let’s build a smarter planet: Rail Hazard Risks Analysis for Railway Operations’ Emergency Management rescue resource placement Landslides railway snow flood monitoring Risk analysis & identification hazard alerting environment factors railway quality train status  Railway hazards are influenced by various of  Research project proposal: Hazard Risks Analysis environmental factors for Railway – area's climate, geology, and etc. – Identify hazard risks based on historical temporal / spatial data, environmental factors, and railway / train status  Railway vulnerability depends on and schedule – railway's quality, train's status & workloads – recommend mitigation and response strategies to support  Disaster loss is further determined by emergency planning and decison-making. – affected trains, passengers and goods  Need access to historical disaster data, incident data and geo-information © 2010 IBM Corporation
  • 34. Let’s build a smarter planet: Rail Massive Passenger Detainment Simulation & Forecast for Railway Operations’ Emergency Management Massive Passenger Detainment Train emergency (accident) ? ? Emergency Station ? Train Track emergency (disaster)  Railway emergencies always happen  Research project proposal: Massive Passenger Detainment – Accidents & disaster emergencies Simulation & Forecast – Emergency classifications & impact  Railway emergency brings major secondary safety cascading analysis challenges for railway operations – Interact with train scheduling system – Massive scheduling changes – Passenger detainment progression analysis – Massive passenger detainment at – Passenger behavior & evacuation simulations major stations  Need access to customer data & scheduling system interfaces © 2010 IBM Corporation
  • 35. Let’s build a smarter planet: Rail IBM Research Projects: Mote-Based Wireless Sensor Networking Business Challenge  Data from existing trackside sensors, including the RFID-based Automatic Equipment Identification (AEI) System, Hot Box Detectors, Wheel Impact Load Detectors (WILD), are sparse due to high deployment costs.  Data does not provide timely information (e.g. bearing failures) to circumvent problems (e.g. derailment). Strategic Initiative  Develop next generation rail car technology infrastructure to provide near real-time information  One infrastructure supporting multiple sensor modalities Proposed Solution: Mote-based wireless sensor networking  Maintains a mesh network for the train that is continuously updated as railcars are added to /removed from the train  Supports periodic condition reports and real-time alerts Railcar Gateway Wireless sensor nodes tracking Weight distribution Mote-based wireless sensor networking Bearing Sensors Brake temperature control © 2010 IBM Corporation
  • 36. Let’s build a smarter planet: Rail A Major European Railway Service Preventing accidents with smarter transportation systems The Need: With different applications and business processes in place to manage maintenance “With this project, we want to of 500,000 ―rolling stock‖ (trains, locomotives, wagons, etc.), it was difficult for staff at move from curative and this European railway company to gather the data necessary to predict problems preventive maintenance to before they affected rail services. predictive maintenance. Our ambition is to reduce The Solution: maintenance costs by 30%.” The company launched a comprehensive project to optimize maintenance of its —Project Director for a Major trains, locomotives, wagons and other ―rolling stock.‖ Through its work with IBM and European Railway Service use of IBM® Maximo® Asset Management, the company has integrated maintenance processes and centralized information, including real-time data collected by intelligent sensors placed on railway equipment ─ making it available to the company’s 10,000 maintenance management officers via desktop PCs and PDAs. Solution components:  IBM® Maximo® Asset What Makes it Smarter: Management  Predictive maintenance and analysis of data is helping company prevent accidents and avoid domino effects that can cause service disturbances  30% reduction in maintenance costs by moving from a preventive to predictive maintenance model  Improved level of service delivered to passengers with real-time visibility into operations TIP14114-FREN-00 © 2010 IBM Corporation
  • 37. Let’s build a smarter planet: Rail A national railway company Improves the reliability and safety of railways with greater efficiency and accuracy The Need: Solution components: A national railway in Canada needed the ability to identify and diagnose train equipment health, reduce derailments, have more accurate and efficient equipment  IBM WebSphereILOG Rules maintenance and generate alarms/alerts accordingly. Additionally, it needed to for .NET consolidate all decision systems in one place in order to enable change  IBM Software Services for management, react to new needs and implement cross-detector logic. WebSphere – Lab Services The Solution: With a solution based on IBM WebSphere ILOG Rules for .NET, IBM has implemented a system that measures and correlates a large of number of critical health factors associated with running a train in real-time using ―wayside detectors.‖ The system analyzes data such as speed, heat of wheels and contact between rail and wheel. It then makes decisions based on combined logic. and suggests proactive recommendations for scheduling maintenance, ordering parts or even stopping the train. What Makes It Smarter:  Improves ability to diagnose train equipment health, minimizing the potential for derailment  Gains a more accurate and efficient process for proactively maintaining equipment at optimal levels  Generates and monitors alarms in real time, helping operators eliminate potential safety hazards before they can cause larger issues  Enables business users to manage rules © 2010 IBM Corporation
  • 38. Let’s build a smarter planet: Rail A European national rail service SOA-based online ticketing system speeds train system into the future The Need: This railway was deploying a high-speed rail system within the country to offer passengers a viable alternative to flying. However, NRS needed to eliminate its siloed IT systems and a very basic Web-based ticketing system to compete effectively against both other rail companies and low-cost airlines flying within the country. The Solution: IBM Global Business Services was engaged to design and implement a service oriented architecture (SOA)-based infrastructure for its corporate IT systems. At the same time, IBM and Accenture worked with NRS to deploy on mainframe a new, state-of-the-art SOA-based online ticketing system that provides real-time information to customer regarding train schedules, seat availability, and applicable fares. Solution components: What Makes it Smarter:  IBM Global Business  The new online ticketing system provides new information to passengers, helping Services - GBS Application them make more informed travelling decisions Innovation Services  After launching its high speed rail, sales increased 200%, confirming market  IBM WebSphere share in the new market for airline passengers  IBM Rational Software  SOA gives NRS more flexibility in adding or replacing various systems  IBM System z components, such as the e-billing system that may be needed in the near future © 2010 IBM Corporation
  • 39. Let’s build a smarter planet: Rail Amtrak Extending Maximo to Meet Unique Business Requirements Amtrak's Northeast Corridor is the busiest railway in North America, with more than 2,600 trains operating over some portion of the Washington-Boston route each day, and carried 10,897,852 passengers in FY 2008 on the Acela Express, Regional Service or other trains. Business Challenges IBM Solution Business Benefits  Asset management solution for  Maximo Asset Management selected  Improved labor utilization – track maintenance of linear infrastructure in 2004 labor to specific work of Amtrak-owned property, including  Integration to SAP financials and  Achieved greater compliance to 363 miles of the Northeast Corridor ESRI GIS Federal Rail Administration (FRA) connecting Washington DC to regulatory inspections  Tailored multiple screens to fit the Boston, the busiest passenger line in Amtrak business processes  Have gained over US$8M annual the country with trains regularly  Integration to track geometry car to Return on Investment (ROI) in reaching speeds of 125-150 mph. capture conditions reimbursable work done for others on  Need to integrate with financial, the mix-use Northeast Corridor graphical information (GIS) and  Maximo Linear Asset Manager added in 2008  Replaced multiple time keeping analytical systems systems with a single time keeping  Able to address the needs of linear  Manage over 1,500 support fleet solution developed by Amtrak in assets and support fleet vehicles with Maximo Maximo © 2010 IBM Corporation
  • 40. Let’s build a smarter planet: Rail San Francisco Bay Area Rapid Transit Using IBM Technology to Improve Safety and Reliability ―Because we are managing an aging fleet while planning for the future, the efficiency of BART requires visibility across all of our assets to provide safe and uninterrupted railway services to our customers.‖ - Program Director, BART Business Advancement Program Business Challenges IBM Solution Business Benefits  Complete replacement of financial,  IBM Maximo for Transportation to  Supports purchase, test and HR, maintenance, inventory control manage rolling stock and support acceptance of new passenger cars and purchasing systems fleet  Allows BART to adopt international  Single database for multiple assets  IBM Maximo Asset Management to standards for inventory conventions including 669 Rail Cars, 246 Miles of manage linear assets and facilities  Provides complete visibility into all Track, and 39 Stations, including a  Integration to corporate financial and assets and services allowing BART to large number of elevators and HR systems better address regulatory escalators requirements  Transition from main frame, client server and desk top applications to web architecture  Manage passenger car replacement project © 2010 IBM Corporation
  • 41. Let’s build a smarter planet: Rail Taiwan High Speed Rail Revolutionizing High Speed Rail Service in Taiwan For traveling at up to 300 km per hour from Taipei City and Kaohsiung City in about 90 minutes the efficiency of the transportation system is heavily dependent on proper maintenance and repair of thousands of components. Business Challenges IBM Solution Business Benefits  Support the country’s first high  IBM Maximo for the Maintenance  Overall efficiency in cost & budget speed rail system with operations Management System (MMS) that management, resource forecasting, that started in 2007 supports asset management, work labor utilization and inventory  Maintain 130 Trains, with 90,700 daily order scheduling, project planning, turnover passengers, over a 335 Km rail inventory management, resources  Automated signature process network management and purchasing  Improved work order reaction times, management  Manage over 300,000 assets asset efficiency and purchasing including rolling stock, track, signals,  IBM Maximo Asset Management to efficiency depots, stations, facilities and manage rail rolling stock, support  Consistent data integrity across communications fleet, linear assets, stations, facilities multiple asset types and communications equipment  Achieve a 99% on time rate within 6  Met the on time rate target with an seconds of scheduled train stops  Integration to ERP, HR and data overall average of 99.15% collection systems © 2010 IBM Corporation
  • 42. Let’s build a smarter planet: Rail Bombardier Transportation Supporting global rail services with a single asset management solution Founded in 1942 by Joseph Bombardier, Bombardier is the global leader in passenger rail equipment and third largest manufacturer of civil aircraft. Rail services represent 20% of Bombardier Transportation’s revenue. Business Challenges IBM Solution Business Benefits  Bombardier Transportation required  IBM Maximo for Transportation to  Improved Warranty tracking a multi-site, multi-language EAM manage rolling stock, including asset  Failure reporting available to all solution to support rail service management, work management and Bombardier customers operations at over 60 separate rail warranty recovery  Able to manage customer systems around the world  IBM Maximo Asset Configuration configuration of delivered rail assets  Manage over 100,000 assets globally, Manager to support the configuration  Manage aftermarket parts business supporting over 100 work sites management of rail equipment  Implemented inventory optimization  Replace customization with out of  Integration to SAP corporate from an IBM Business Partner and the box capabilities for configuration financial system reduced inventory costs by 20% management & warranty recovery  Meets long term strategic direction  Integrate with existing financial system & support planned interfaces with health monitoring & RFID © 2010 IBM Corporation
  • 43. Let’s build a smarter planet: Rail Washington Metro Asset Management in the United States’ Capital With a 106.3 mile rail network and more than 12,300 bus stops, Washington Metropolitan Area Transit Authority (WMATA) is one of the largest North American Transit Systems. Business Challenges IBM Solution Business Benefits  A complex operating environment  IBM Maximo for Transportation to  Increased labor utilization and asset with 1,141 rail cars, 1,500 active manage rolling stock and support reliability buses, 1,686 service vehicles and fleet  Inventory fully visible to Maintenance other equipment  IBM Maximo Asset Management to Staff  Deploy a single asset management manage linear assets and facilities  Real time access to up to date asset solution across the enterprise to  Integration to corporate financial, HR information, enabling efficient job manage all assets & dispatching systems scheduling to minimize passenger  Replace antiquated financial, HR, impact maintenance, inventory control and  Able to accurately capture assets purchasing systems maintenance costs  Standardized business process across the enterprise © 2010 IBM Corporation
  • 44. Let’s build a smarter planet: Rail Tube Lines Taking Stock of Assets with IBM Maximo to support the London Underground ―Creating a single source of all asset information has provided unprecedented visibility of asset performance across the three lines managed by Tube Lines‖ - Asset Systems Technical Manager, Tube Lines Business Challenges IBM Solution Business Benefits  An up-to-date solution to proactively  IBM Maximo Asset Management to  Maximo Asset Management has maintain 200 miles of track, 255 manage rolling stock, linear assets enabled Tube Lines to provide a trains, 100 stations, 2,395 bridges and facilities consistent approach to maintenance and structures, 71 lifts and 227  Mobile access to Maximo to support management across 15 asset classes escalators work management  Real time access to up to date asset  Deploy a single asset management  Integration to incorporate ERP and information, enabling efficient job solution across the enterprise HR systems scheduling to minimize passenger  Provide engineers with mobile impact access to asset information  Reduced duplication, improved  Streamline processes and improve information accuracy and trend resource effectiveness analysis for more proactive maintenance strategies © 2010 IBM Corporation
  • 45. Let’s build a smarter planet: Rail DB Schenker Rail Keeping up with the trains using IBM Maximo DB Schenker Rail, formerly English, Welsh & Scottish Railway, is the United Kingdom’s largest rail freight company, moving over 100-million tonnes of freight each year with 8,000 trains each week. Business Challenges IBM Solution Business Benefits  Increase regulatory compliance and  IBM Maximo to support asset, work,  Helped achieve regulatory compliance achieve availability & reliability campaign, materials and warranty  Preventive maintenance driven by targets for the EuroCargo Rail management of rolling stock multiple meters division  IBM Maximo for Transportation  Increased workshop staff productivity  Improve the efficiency of the industry solution to include key % maintenance staff capabilities for maintenance  Successful knowledge transfer from  Address a highly mobile workforce counters, wheel set wear, labor IBM to EWS staff with a multi-site and multi-lingual reporting, component tracking and  Solution is quick and flexible capability reliability analysis  Able to use the system close to out of  Select a new EAM system where  Integration to SAP ERP the box, with limited system there was confidence in the supplier, configuration future prospects for the system and  Expanding Maximo to all divisions knowledge transfer – ability to configure system ourselves © 2010 IBM Corporation
  • 46. Let’s build a smarter planet: Rail Guangzhou Metro Using Maximo to lead China’s transformation to a mass transit society Guangzhou Metro is undertaking a huge infrastructure build-out designed to double its capacity to 4 million passengers per day. The sheer pace of its expansion was making it increasingly difficult for Guangzhou Metro to manage, monitor and maintain the swelling base of assets Business Challenges IBM Solution Business Benefits  Extend asset life and maximize rider  IBM Maximo Asset Management to  Increased safety and reliability of the safety and convenience support all asset types, including Guangzhou metro network through  Track every asset in Guangzhou trains, track, stations and facilities predictive maintenance capabilities Metro’s network over its entire  Integrated EAM and ERP using the  Extended life of fixed asset investments lifespan, including servicing IBM Maximo Enterprise Adapter  Improved process efficiency by virtue guidelines and service history resulting in financial and physical of asset management and ERP process  Integration of asset management perspective on asset management integration with key enterprise functions to decisions  Improved cost efficiency through the enable improved decision-making  Guangzhou Metro worked with IBM coordinated management of parts and process optimization to deploy an integrated asset inventories  Shift to performing maintenance on a management solution flexible  Improve asset management decision predictive basis — before enough to track assets across the making through improved information breakdowns occur lifecycle transparency © 2010 IBM Corporation
  • 47. Let’s build a smarter planet: Rail IBM SMART SURVEILLANCE SOLUTION WAS PIONEERED BY IBM RESEARCH AND HAS BROAD CAPABILITIES  Video data is indexed and can be used for several applications Flexibility  The same surveillance data can provide business intelligence, damage detection, employee identification and help address regulatory compliance requirements  Data reuse can reduce costs and improve efficiency Scalability  Open standards make it easier to add or change hardware and analytics technologies  Extend beyond time/date queries or alerts Broad Search Capabilities  Allow queries based on color, object, size  Allow compound queries (e.g. all white vans in the downtown area since January 1) Integration  Open standards enable integration with other IT systems, sensors and algorithms Standards  Open standards supports cross-agency sharing, enabling use of the same data by multiple applications © 2010 IBM Corporation
  • 48. Let’s build a smarter planet: Rail Trademarks and notes IBM Corporation 2009  IBM, the IBM logo and ibm.com are registered trademarks, and other company, product or service names may be trademarks or service marks of International Business Machines Corporation in the United States, other countries, or both. A current list of IBM trademarks is available on the Web at ―Copyright and trademark information‖ at www.ibm.com/legal/copytrade.shtml  Adobe, the Adobe logo, PostScript, the PostScript logo, Cell Broadband Engine, Intel, the Intel logo, Intel Inside, the Intel Inside logo, Intel Centrino, the Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, IT Infrastructure Library, ITIL, Java and all Java-based trademarks, Linux, Microsoft, Windows, Windows NT, the Windows logo, and UNIX are trademarks or service marks of others as described under ―Special attributions‖ at: http://www.ibm.com/legal/copytrade.shtml#section-special  Other company, product and service names may be trademarks or service marks of others.  References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. © 2010 IBM Corporation