Accelerate to a Frictionless Future in Rail and Transit

MOVE
WITH
PURPOSE
ACCELERATE TO A
FRICTIONLESS FUTURE
IN RAIL & TRANSIT

2
Transport is reinventing for the digital
age.
TRANSPORT
IN TRANSITION
Copyright © 2018 Accenture. All rights reserved.
• Boundaries in rail,
transit, freight
and logistics
are blurring
• Global passenger
traffic is set to
rise 50% from
2015 to 2030¹
• Customer
expectations
are rising
• An additional 1.2
billion cars will on the
road by 2030 –
almost double from
today²
• $14B funding is being
invested in
transport/logistics
start-ups³
¹ Global Mobility Report 2017
² Navigate Research
³ Accenture Research

3
Disruption could reinvent rail & transit
– as done by Amazon to retail, Airbnb
to hospitality, smartphones to Kodak
and
Uber to the taxi business.
New players and new
platforms are leading the
way with innovative, agile, scalable
business models
using IoT, smart real-time
intelligence, connectivity,
AI, data analytics, etc.
DIGITAL IS
DRIVING
DISRUPTION

4
Transit agencies are embracing asset management as a key
enabler to ensure a safe, reliable and efficient transit service
BALANCING COMPETING
PRIORITIES PROVIDES A
CONSTANT CHALLENGE
Investing in aging
infrastructure vs
scaling the network
Delivering large capital
programs
Meeting stakeholder
and regulatory
requirements
Maintaining a safety
first culture
Adapting to shifting
market conditions and
new technology
Developing the
workforce to evolve
with the ecosystem

Consumers want more personalized
interactions with travel companies.
But customers feel travel companies are
not taking advantage of “what they
know” to help make better travel
decisions.4
CUSTOMERS
EXPECT MORE
Copyright © 2018 Accenture. All rights reserved. 5
HOWEVER, ONLY
50%THINK TRAVEL BRANDS
ARE SENDING RELEVANT
COMMUNICATIONS
THE REALITY
70%
ALMOST
OF CONSUMERS WANT
COMPANIES TO
PERSONALIZE THEIR
COMMUNICATIONS
THE EXPECTATION
4 The New Travel Experience

THE WAY WE TRAVEL IS
CHANGING
Your customers live in an integrated
app-driven, anywhere, anytime
marketplace and want connected,
frictionless end-to-end experiences.
OFFICE
RIDE-HAIL
CYCLE
HIRE
TRANSIT
STOP
BUS-STOP
RAIL STATION
6
GYM SCHOOL

IN THE RACE TO SUCCEED,
INCUMBENTS FACE
CHALLENGES AND
OPPORTUNITIES.
WITH THE RIGHT
APPROACH, YOU CAN
NAVIGATE WHAT’S AHEAD.

8
A typical rail company operating a
business-as-usual approach puts
445 m€ (29.7%) in EBITDA at risk
by 2020 to digital competitors.5
But with a new approach it could:
• Boost profits
• Unlock value
• Innovate fast
• Exploit new opportunities
• Drive growth.
WHAT’S THE
OPPORTUNITY?
5 Digital Value Creation in Passenger Rail- Accenture Strategy

ACCELERATE
YOUR
DIGITAL
JOURNEY

10
Embrace open, fluid ecosystems,
operating as a partner alongside multiple
affiliates, to transform services.
This is key to deliver door-to-door
services combining and connecting
multiple transport modules.
ENABLE
INTELLIGENT
SERVICES

• Equip your decision makers with the
tools to transform your transit
operation
• Drive your safety and reliability
agenda
• Optimize your short and long term
investment decisions
• Lower your lifecycle costs and deliver
better value for money
• Improve the accuracy of your
planning and budgeting capability
POWERYOUR ASSET DECISION-
MAKINGWITH INTELLIGENT
ANALYTICS

12
PROVIDE
ON-DEMAND
CUSTOMER
EXPERIENCES
Hyper-personalize and ease every
stage of the customer journey.
Integrate service channels
for frictionless experiences,
customizing real-time information to
anticipate needs and enable
contextually relevant interactions.

• Ensure customers feel
more connected and
engaged with your brand
– emotionally and
digitally
• Bring to life the
moments that matter
• Drive brand sustainability
and long-term value
NURTURE LIVING LOYALTY
Measure &
evaluate
Iterate &
continuously
improve
Know your
customers
Predict
customer
needs
Design relevant
experiences &
interactions
Deliver contextually relevant
multi-channel interactions

14
Accelerate adoption of alternative
technologies e.g. electric and hybrid
vehicles, self-driving vehicles and
renewable energy sources.
Reduce energy consumption,
waste and emissions, while
fulfilling sustainability and compliance
requirements.
CAPITALIZE ON
THE MATURITY OF
ALTERNATIVE TECHS

LEAD INTO THE
NEW, NOW

SEIZE THE OPPORTUNITY:
KEY PRIORITIES
TRANSFORM
YOUR
PURPOSE
CREATE YOUR
DIGITAL
ECOSYSTEM
BE
CUSTOMER-
FIRST
It’s no longer about inventory
and stock. It’s about meeting
customer transport needs in
the digital era, whenever and
however.
Embrace an open,
collaborative approach to
partnerships —adopting
new digital skills and
resources.
Meet and anticipate
customer needs—in the
moment, on their terms.
Accenture Strategy resources Tech Vision 2018
Fjord Trends 2018
Align strategy, design
and execution to realize
the value opportunity

Rotation to the New—the wise pivot—is
a deliberate, perpetual journey, not a
single event.
It’s a four-step disciplined,
programmatic approach to change to
get the timing, scale and direction of
investments right.
DEFINEYOUR ROUTE

Sales &
Distribution
Core FunctionsRevenue Management
Unlock value from your core business to drive investment
capacity.
Adopt new tech to achieve new efficiencies, e.g. in:
STEP 1
TRANSFORMYOUR CORE
Planning & Operations

Strengthen your
ecosystem plays
Monetize
underutilized assets
Reinvent as a ‘living
business’
Adopt analytics-
driven customer
acquisition
Activate new demand from new markets
to fuel growth in your core business.
STEP 2
GROW YOUR BUSINESS

Enter new markets
with new business
models
Partner with tech
leaders and
disruptors
Invest in emerging
tech early
Embed an
innovation
architecture
Build new architectures to rapidly scale innovation,
digitize customer experience and enable frictionless travel.
STEP 3
SCALE THE NEW

Single transport offering to
a network of mobility
solutions
Physical customer service
to multichannel digital
travel assistance
Rail provider to a provider
of customer mobility
services
Finally, continue to pivot wisely in response to change – ensuring you stay
competitive and relevant as the rail industry moves ever deeper into the
digital age.
For example, to pivot from:
STEP 4
CONTINUE TO PIVOT WISELY

ARE YOU READY TO
MOVE WITH
PURPOSE?
CONTACTS
ALDEN CUDDIHEY
Rail and Transit Global
alden.cuddihey@accenture.com
MICHAEL ENGLIGH
Rail and Transit NA
michael.english@accenture.com
PIERRE-OLIVIER DESMURS
Rail and Transit EALA
P-oliver.desmurs@accenture.com

Accelerate to a Frictionless Future in Rail and Transit

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Accelerate to a Frictionless Future in Rail and Transit