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Cisco Industrial Intelligence: Powering the Global Transportation Industry

Cisco Transportation Industry White Paper
The New World of Transportation
Transportation agencies and organizations around the world face some of the toughest operational and strategic challenges in recent memory. Soaring energy costs, budget cutbacks, and new security concerns are forcing agencies around the world to rethink basic strategies and become smarter about how they build and manage transportation networks and services. The new reality is being felt across the entire industry, from state and local transportation departments to national rail operators to urban mass transit agencies. At the same time, many agencies are benefiting from a renewed flow of capital into selected transportation segments, such as high-speed rail service. Globally, stimulus spending measures have reenergized highway and transit agencies with new funds for investing in roadway repair and building new, energy-efficient mass transit systems. These initiatives have opened up new opportunities for agencies, helping them replace aging physical infrastructure and invest in transformative systems that promise to elevate customer service to new levels. In our review of the industry, Mainstay Partners found that the best performing transportation agencies were also technology pace setters. In particular, these agencies saw significant advantage in breaking down traditional operational and technical barriers that previously limited management visibility, impeded cross-team collaboration, and slowed communication between field operations and headquarters. Not surprisingly, these agencies stood out as industry leaders in building open, secure communication networks and sophisticated collaboration platforms. By converging disparate operations and systems, these organizations have become better integrated, more responsive, and more intelligent. The move has empowered agencies with the means to confront the most pressing challenges of the new global economy, from rising raw material costs and shrinking operational budgets to new mandates around environmental sustainability, energy efficiency, andsecurity.

Industrial Intelligence: How Transportation Agencies Adapt and Thrive

While the challenges are formidable, transportation organizations that learn to successfully navigate the new environment can reap huge rewards. This conclusion was borne out in our review of top global transportation agencies, from state departments of transportation to regional mass transit agencies to national train systems. These organizations are succeeding through a combination of factors. A history of innovation and a commitment to service excellence were two common characteristics of these agencies. There was another ingredient, too, and that was the decision to employ key technologies that empower transportation agencies with better integration, communications, and collaboration capabilities. We call these capabilities industrial intelligence.

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Simply put, industrial intelligence is the enablement of enterprises to more intelligently and responsively manage transportation operations from a global perspective. In many deployments, industrial intelligence solutions use IP-networking and cloud-based services to converge industrial and enterprise networks and allow system-wide communication and collaboration. According to Cisco, a leading supplier of industrial intelligence solutions, what these systems offer is a more intelligent platform for innovation that enables:

Interconnectivity of sensors and controllers so that resources can be better measured,

monitored and managed andresponsive

Operational processes that are intelligent, resilient, energy-aware, available, secure Operating assets that are integrated and self-aware of their state People in the environment who are knowledgeable, well-trained, empowered, connected,
safer and able to improve operational performance building, and managing the processes and outputs

And finally, systems and people that are continuously innovating, planning, designing,
Industrial intelligence solutions form the backbone of intelligent transportation systems (ITS) that help streamline traffic flow, enhance transportation safety, and enable multi-agency information sharing. At the heart of these solutions are ubiquitous, secure, resilient, standards-based IP networksboth wired and wireless. These IP networks work hand-in-hand with new cloud-based services that converge voice, video, and data streams on a common platform, giving agencies tremendous new collaboration and decision-making powers. Already, larger agencies are finding they can control costs and complexity by building private clouds in virtualized data centers that deliver applications and services to users at a fraction of the cost. When enabled by industrial intelligence and cloud-delivered solutions, engineers can troubleshoot equipment problems in remote corners of a rail or highway system in real time. Managers can monitor car and train traffic to head off bottlenecks before they start. Intelligent IP networks result in supply chains that are leaner and more flexible because agencies and their suppliers synchronize production and logistics over a secure, shared network. Furthermore, these new networks are self-monitoring and self-correcting, which translates into higher availability and lower support costs.

Using our multiservice IP network for surveillance video, in addition to data and voice, reduces costs and gives us enhanced capabilities.
Rohan Mendis Telecommunications Strategy Manager, Greater Manchester Passenger Transport (GMPTE)

2 2011 Cisco and/or its affiliates. All rights reserved.

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Measurable Benefits
Transportation agencies that embrace and deploy industrial intelligence (and the IT solutions behind it) are creating real value for the organization as well as the customers and taxpayers they serve. The agencies studied in this report achieved tangible improvements across a range of operational, financial and strategic areas. Among the key outcomes:

Key Case Study Findings

Transportation Top Industry Imperatives Gain visibility into inaccessible locations Reduce response time and improve customer service Increase security and monitoring Solution Impact Areas Lower TCO More flexible devices Secure network infrastructure

More Intelligent Transportation Systems. Increasingly,

IP networks serve as the foundation for real-time traffic management systems that help streamline traffic flow, prevent and manage incidents, and help agencies more efficiently share information with police and fire departments. A system in South Carolina, for example, is allowing a county agency to respond to a traffic accident even if no one calls in to report it.

Safer Highways. Highway Departments leverage wireless networking solutions to build realtime video surveillance, highway advisory signage, and automated toll collection systems. IP-enabled traffic controllers and IP sensors power a solution in California, where the state department of transportation has cut traffic delays by 25% and vehicular accidents by 75%. A new IP-based wireless video system in Utah is preventing almost a thousand accidents a year while avoiding the purchase of $1 million in traditional switching gear.

More Efficient Railways. Rail and mass transit agencies are deploying connected signaling

and station architecture to minimize service disruptions and incidents, increase on-time performance, and enhance customer service. At DSB, the largest train operating company in Denmark, a new IP-based unified communication system is helping it respond to customers faster, improving first-time call resolution by 90%. minute traffic updates into the hands of the traveling public, helping citizens plan trips better and save time. In one state, real-time traffic updates delivered online and to mobile devices are helping motorists save nearly 10 million hours in road time.

Better Informed Public. IP-enabled Industrial intelligence technology is putting up-to-the-

We needed to differentiate ourselves from other modes of transportation and make ourselves competitive in ways in which we were not before.
Philippe Smit, Director of Marketing and Sales, Netherlands Railways

3 2011 Cisco and/or its affiliates. All rights reserved.

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Gathering Momentum
Given the transformative potential of industrial intelligence, its not surprising that the shift toward IP-based networks is picking up momentum in the transportation sector. In a 2011 survey by Clarus Research Group, for example, 52% of executives at transportation companies said their business would likely invest in IP-based networks and technology in the coming year.
Figure 1: Likelihood of IP-Based Investments in the Coming Year1

Total likely

Not likely

Dont know/No answer

To these leaders, the benefits of embracing technology and automation are clear. In fact, a strong majority (62%) said that technology and automation will play a large role in delivering high quality, reliable services; and nearly half said that technology will play a large role in improving the customer experience, finding new sources of revenue, and getting the most out of existing assets. When asked which companies come to mind as the top providers of industrial automation, security, networking, and technology management, executives in the survey cited Cisco more than any other provider, followed by IBM, Microsoft, and HP.

Case Studies: Industrial Intelligence On The Move

To find out how individual transportation organizations are exploiting the power of Industrial Intelligence, we reviewed the technology initiatives of a cross section of global transportation agencies. Representing some of the largest public organizations in the world, these agencies are deploying industrial intelligence in unique ways to achieve maximum impact in their service areas. Examples of three innovative initiatives follow.

Caltrans New Intelligent Transportation System Cuts Traffic Delays by 25%

 The nations largest state transportation agency, Caltrans is responsible for ensuring that California drivers get where they need to go as quickly and safely as possible. Traffic congestion has worsened in recent years, surging almost 75% as the state struggled to find ways to better monitor traffic and avert bottlenecks and accidents. The agency had already deployed a lot of traffic-monitoring equipment, including video cameras trained on roadways, but its aging ATM-based network2 prevented needed upgrades, such as crisper video and faster communications, as well as new traffic-management aids such as ramp metering systems and changeable message signs.  Funded in part by a Federal program that helps states implement Intelligent Transportation Systems (ITS), Caltrans launched a broad initiative to upgrade its existing traffic monitoring infrastructure. Based on the results of an ROI study, the agency chose to replace its aging network with new IP-based network technology, which allowed Caltrans to use the same network for video surveillance, traffic telemetry, and data and voice communications while offering high reliability, even during a disaster.3 Since the deployment, California drivers have
1. I ndustrial Intelligence Market Survey, Clarus Research Group, March 2011. The survey interviewed executives and top managers at 34 transportation companies and agencies. 2.  ATM, or asynchronous transfer mode, is a switching technique for telecommunication networks. It uses asynchronous timedivision multiplexing to encode data into small, fixed-sized cells. This differs from IP or Ethernet networks that use variablesized packets or frames. 3. Caltrans solution included a range of Cisco IP solutions, including Cisco Catalyst 6500 Series switches. 4 2011 Cisco and/or its affiliates. All rights reserved.

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experienced up to 25% fewer delays and crashes are down by up to 50%. We were able to capitalize on the advantages of using IP-based communications and now have a solution that is scalable, manageable, and provides an elegant integration path to future technologies, said Ernie Fermin, an engineer with Caltrans Communications Support group.

Utah Dept. of Transportation Cuts Congestion with Wireless and Mobility Solutions  With travel on state roads growing, the Utah Department of Transportation (UDOT) wanted to boost the efficiency of its roadways by building an Intelligent Transportation Systemdubbed CommuterLinkthat would help it reduce travel delays and respond faster to traffic accidents. The cornerstone of the initiative: a Know Before You Go program designed to give drivers timely traffic and weather updates over the radio, TV, Internet, phone, and highway message boards. UDOT had built the foundations for CommuterLink a few years agoa dedicated fiber optic communications network that covered most of the state. But the agency discovered that the initiatives bandwidth needs would quickly exceed the systems capacity if it relied on existing video switching and networking technology.
 A new IP-based network proved to be the ideal solution for UDOTs capacity challenge, enabling the existing fiber network to handle the addition of hundreds of new roadside cameras and monitoring devices while helping the agency avoid the purchase of expensive new video matrix switchesa savings of about $1 million over two years. At the same time, USDOT deployed wireless and mobility solutions to extend the network to places where fiber cable couldnt reach.4 All told, CommuterLink is saving Utah travelers an estimated $179 million and 9.8 million hours annually and preventing 948 traffic accidents and three trafficrelated deaths each year. Our top priority is to be more efficient with the resources that we have and making sure were using them in the most effective way, said Richard Manser, an ITS deployment engineer with UDOT. With our expanded network we can reduce traffic congestion, deal with incidents, and minimize traffic delays.

Beaufort County Readies for the Next Hurricane with Real-Time Traffic Management System  This county in coastal South Carolina needed to be ready for evacuations in the case of a hurricane. So officials turned to Cisco to help design, build and install a new traffic management system that provides real-time views of traffic flow on major arteries. Today, the county relies on this weather-hardened network to respond faster to accidents, update motorists on traffic conditions, and prepare for when the next hurricane calls for an orderly evacuation.
 Just imagine the implications of this system, said William Winn, director of emergency management. In the old world, victims who have been seriously hurt in a one-car accident may be dependent upon another car to come by and call it in. With our new monitoring capability, we can immediately dispatch emergency personnel to the site, potentially saving lives.

Wireless technology and intelligent video systems can offer law enforcement a powerful tool to use against criminals. This is really the next wave in police work.
Wade Gomer, Police Commander, Bay Area Rapid Transit

4. U  tah DOTs solution included Cisco Catalyst 2955 industrial Ethernet switch, and a suite of Cisco wireless and mobility solutions.

5 2011 Cisco and/or its affiliates. All rights reserved.

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Conclusion
New budget realities are pushing transportation agencies to become leaner, more agile and better able to re-allocate resources from a global perspective. At the same time, new capital is reinvigorating many agencies and fueling new initiatives in high speed rail, mass transit, and infrastructure modernization. It is a bracing environment that demands a new set of strategies and tools to deliver value to customers and taxpayers. Our study of leading transportation agencies found that Cisco Industrial Intelligence solutions provide an effective response to the demands of this operating environment. By standardizing on Ciscos IP-based network architectures and solutions, agencies have successfully converged operational and management networks, creating a new generation of intelligent transportation systems that is more efficient, reliable, secure and safe. For more information on Cisco Industrial Intelligence, go to http://www.cisco.com/go/industrial For Cisco Transportation solutions: http://www.cisco.com/go/transportation For Cisco IE 3010 information: http://www.cisco.com/en/US/products/ps11245/index.html

About The Authors

Research and analysis for the study was conducted by Mainstay Partners LLC, the leading management consulting firm focused on quantifying and communicating the business value of technology. For more than a decade, Mainstay Partners has performed studies for leading information technology providers including Cisco, Oracle, SAP, Microsoft, Dell, Lexmark, HP, Siemens, EMC, and NetApp. Information contained in the publication has been obtained from sources considered reliable, but is not warranted by Mainstay Partners LLC.

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6 2011 Cisco and/or its affiliates. All rights reserved.