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Enable the Next-Generation Passenger Transit Management System

The time for transit companies to modernize their TMS solutions is now.

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  • High technical debt, inefficient processes like manual paper-based tracking and storing, duplicated data entry with partners, and difficulty tracking across services can hamper your organization’s ability to improve or add services.
  • The effects of the pandemic are still apparent within the transportation industry, including service disruptions and shortages of skilled labor.
  • Driver and customer safety and environmental, social, and governance factors are becoming more and more critical. Without an effective TMS that addresses those areas and enables adaptability, transparency, analytics, and integration with suppliers and partners, you risk being left behind as the industry progresses.

Our Advice

Critical Insight

Gain real insight into the features and market for transit management systems (TMS) and how different solutions are designed to address the needs of a particular type of business, whether that be a single or multimodal transportation business. Transform your business processes to future-proof your business by selecting a holistically integrated and automated solution. Delight your operators and customers with real-time insights.

Impact and Result

  • Identify the kinds of tools and activities that are most important to customers right now.
  • Prioritize tools and technology that will meet your needs based on critical features and functions that can be leveraged to increase efficiency and profitability, lower cost, and enhance collaboration.
  • Align the team: After establishing what technologies are needed for your TMS solution, form the team that will be needed for the selection and implementation.

Enable the Next-Generation Passenger Transit Management System Research & Tools

1. Enable the Next-Generation Passenger Transit Management System Storyboard – A deck that can be used to gain understanding of the transit management market.

Learn about the processes, tools, and technologies that can be used to leverage a transportation management solution that will get you and your passengers to the next destination from initial booking to scheduling, status, payments, audits, and closeout.

2. Transit Management System Demo Script – A tool that can be used for product evaluation demo reviews.

Learn about the key features of a modern transit management system and what to look for when reviewing solutions for your business.

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Enable the Next-Generation Passenger Transit Management System

The time for transit companies to modernize their TMS solutions is now.

Analyst Perspective

The next-generation transit management system (TMS) solutions are here.

Kevin Tucker

“The reality about transportation is that it's future-oriented. If we're planning for what we have, we're behind the curve.”

– Anthony Foxx (BrainyQuote)

Many passenger transportation businesses have built their success with good business principles that were tremendously successful for more than 40 years.

Now they find themselves stuck at the crossroads where the amount of change that is necessary has become overwhelming.

The new reality: Those companies that fail to modernize their operations will be faced with rapidly eroding profit margins as the competition becomes much faster, more accurate, more cost effective, and less burdened by technical debt.

Info-Tech's approach focuses on investigating the challenges in the market and assessing the solutions that can accelerate your transition to a modern TMS.

Kevin Tucker

Principal Research Director, Manufacturing Research

Info-Tech Research Group

Executive Summary

Your Challenge

Understand how the TMS will integrate across the business. The CIO must work closely with the operations leaders in the business to drive success.

Effectively manage the changes needed for goods transportation processes within the business.

Design processes that cater to unique customer demographics but have similar capabilities.

Identify the most cost-effective leapfrog strategy for conducting a TMS transformation initiative.

Common Obstacles

A wide array of homegrown legacy applications: Whether public or private, legacy applications that are either standalone or include proprietary integrations add complexity.

Reluctance to change: Staff and operators have been conducting their daily tasks the same way for many years and have become accustomed to the perceived predictability and simplicity of their jobs.

Legacy processes: Hiring and retention are critical for replacing proprietary, old, and complex systems.

Network reliability: Reliability is necessary for seamless live information sharing with customers and employees.

Info-Tech's Approach

Improve your TMS capabilities by using this report to understand the needs of the business and the top tools in the market.

Use our tools to structure your evaluation and demonstration process for selecting the best tools for your business needs.

Adopt a capability-based approach that considers standalone and platform solutions that leverage cloud and edge services.

Identify the most cost-effective leapfrog strategy for conducting a TMS transformation initiative.

Leverage Info-Tech’s strategic and tactical decision-making advisory services.

Info-Tech Insight

Passenger transportation is one of the hottest sectors for digital transformation due to the volatility brought about from the pandemic, which caused a radical change in the mindset of the world both environmentally and technologically.

Source: “Understanding COVID-19’s Impact...” Deloitte, 2020

What is a TMS?

A transit management system (TMS)* is a software solution that helps with the operations and management of the public infrastructure for the movement of people. This solution is designed to focus on routing, scheduling, ticketing, payments, and the safety of passengers by rail, car, shuttle, air, and sea. TMS solutions are increasingly focusing on real-time mobility capabilities for operators and customers.

Sources: AltexSoft, 2022; Research.com, 2022

Enabling next generation of goods transportation/transit Management Systems (TMS). The time for transit companies to modernize their TMS solutions in now.

Common challenges for people transportation

Companies need to invest in advanced transportation management systems to meet customer, regulator, and business requirements.

    Top Challenges for Transportation Companies

  1. REAL-TIME INFORMATION
  2. DECARBONIZATION
  3. COST MANAGEMENT

Info-Tech Insight

The transportation sector is being transformed globally as lobbyists and governments push for rapid changes that will improve the health and wellbeing of all citizens. The challenge for the transportation industry is to find cost-effective tools and to amplify transformation activities to smooth out the bumps in the transition process.

There is high demand for public transit

Transportation needs to be flexible and responsive to the market. It must be robust enough to handle the fluctuations in usage by adopting solutions that incorporate flexibility through tools such as artificial intelligence for schedules, capacity management, and route optimization.

72% of the population plan to use public transit at least once a month

Percentage of population that plans to use transit at various frequency. 24% of population uses daily, 26% weekly, 22% monthly, 19% yearly, and 9%

Source: Accenture, 2021

Transit Management System (TMS)

Also known as mass transit or public transportation software, a TMS is a system for the movement of passengers between destinations.

Passenger transportation needs to be prepared for a rebound in growth

    Public transit needs to refocus for the rebound.

  • Commuters want consistency. Approximately 90% of daily commuters follow a strict routine that has minimal fluctuations of about 30 minutes for arrival and departure times.
  • The pandemic brought about new concerns for commuters and operators. Beyond air circulation and filtering increasing risk, studies showed that the risk of exposure increases greatly when services are overcrowded. The average risk increases 11.91% through close contact during transportation.
  • Advanced analytics are needed. Software is a vital tool for conducting calculations based upon numbers of passengers by day and class, climate factors, capacity, calendar variables such as school days and paydays, and regional populations.

    Focus on efficiency.

  • Increasing efficiency and reducing costs are the top priority for 63% of public transportation providers.
  • Client expectations must be met. Approximately 61% of providers determined that understanding their passengers’ needs and demand is the second most important factor for service improvement.
51% of passenger transportation owners are shifting to electric/zero-emissions vehicle fleets.
64% of passenger transportation owners are focusing their attention on service predictability and improved passenger experience.

Source: Journal of Urban Management, 2021; Optibus, 2023

Public transportation offers tangible benefits

    Public transit needs more investments.

  • Investments bring returns. In the US, every $1 invested into public transportation generates $5 in economic returns.
  • The private sector benefits from public investment. Around $39 billion of public transit expenditures flows into the private sector.
  • The public transit network has limitations. While 6,800 organizations provide transportation across the US, only about 55% of the population has access to public transportation.
Public transit benefits both consumers and businesses. It increases the value of nearby homes, impacts local economy and reduces the chance of accidents.

    Public transportation reduces carbon and creates opportunities for the local economy.

  • Transportation impacts the local economy: 87% of trips directly impact the local economy.
  • Transportation moves people to work and school: 71% of all riders are employed and 7% are students.
  • Transportation helps the environment: Public transportation saves 6 billion gallons of gasoline and reduces carbon output by 63 metric tons annually.
$10k Annual household savings by using public transit and using one less car.

24%

increase in home value

11%

increase in hotel revenue per room

Increase in home value and hotel revenue per room in cities with direct rail and airport access.

Source: American Public Transportation Association

The mass transit industry continues to seek out new and innovative solutions

Like in goods transportation, TMS advancements are driving efficiencies in passenger transportation.

ARTIFICIAL INTELLIGENCE (AI)

The growth of artificial intelligence and machine learning, combined with the Internet of Things (IoT), is opening a new world of dynamic route planning, predictive maintenance, and depot management. AI can track incidents in real time and provide prescriptive instructions for operators.

ACCESS ANYTIME AND ANYWHERE

The modern traveler wants a system that is always on. They need to be able to receive information and alerts across all devices in the context of their current situation. They don’t want to be forced to suffer long waits that can be avoided by capacity management and notifications of overflows.

HEADS-UP AND DIGITAL SIGNAGE

Heads-up displays have become standard for most vehicles, but commercial vehicles need real-time status and capacity information. Digital displays need to provide useful information for passengers. This is also an opportunity to reduce costs via digital ad revenue.

Top Three Game Changers: The leading TMS systems are real-time and global.

Source: Forbes, 2022

Multimodal integration is important for mass public transportation

Having the ability to transition resources across services is becoming vital for transit integration services.

Intermodal Public Transportation. Subway, Taxi, Bus, Train, Plane, Shuttle, Bicycle, Ferry

Source: Mallikarjun, 2019

Passenger transit feature trends: New tech features improve capabilities

Table showing 'New Advanced Technologies' and 'Standard Solutions' for transit features, listing their capability/importance and comments for 2013 versus 2023. NOTE: SOME FEATURES DIDN’T EXIST OR WEREN’T BEING USED IN 2013

Source: Remix, 2021; CODICE Technologies

Top mass transit vendors: Market leaders are differentiating

optibus.

Comprehensive software that improves transportation services for agencies, operators, drivers, and passengers. Allows agencies using the platform to design routes, timetables, and schedules. Users can schedule operator crews and vehicles, create rosters, and manage shuttle operations.

Ratality: redefining mobility as a service.

A fully integrated multimodal platform for buses, coaches, vehicle rentals, shuttles, transfers, and tours on a cloud-based platform. Manage your operations and sales through an intuitive reservations and ticketing system with revenue management and dynamic pricing.

RideScheduler: Volunteer Transportation Made Simple.

Web-based paratransit ride scheduling software for scheduling, mapping, reporting, and managing rides, clients, and drivers. Can use for volunteer or paid drivers, with statistics and notifications for helping drivers and eliminating errors such as missed rides.

Trip Master: by CTS Software.

All the tools needed to run a transit operation. Contains scheduling, billing, and reporting, with advanced features such as mapping, auto-scheduling, mobile data interface, broker imports, and an online rider portal to save time and money. Strong tech support.

Q Ryde: by HBSS

Interagency ride coordination system that provides street-by-street capacity planning and slack optimization. QRyde is a transportation network for offering low-cost, on-demand, rider-funded services, and it offers cost allocation AI, meets FTA criteria for ADA, and is a HIPAA-compliant cloud solution.

Ecolane.

Paratransit software built for transit agencies of 10+ vehicles. Increase completed rides, reduce expenses, reduce manual data entry, and use resources efficiently. Make better decisions for the agency, community, and riders. Provides platform-independent tools to manage and monitor services and performance in real time.

Source: Research.com, 2022

Case Study

Los Angeles Department of Transportation (LADOT) and MV Transportation

INDUSTRY

Public and Private Transportation

SOURCES

Optibus, 2022

LADOT launched a large-scale implementation that demonstrated the power of intelligent transportation systems for securely sharing information across agencies.

Situation

MV is the largest transportation contracting firm in the US. The 200+ transit agencies, school districts, and universities it works with serve over 110 million customers per year. LADOT, which is collaborating with MV, has over 19 million annual trips.

It has become increasingly important for private transportation operators to integrate more seamlessly with public transportation agencies, from the initiation of request-for-proposal processes needing a set of detailed requirements through to the delivery of the services.

Legacy environments create barriers to effective planning, scheduling, collaboration, service quality, and communication expected by employees and customers in the modern era.

Actions

LADOT conducted a detailed discovery as to how its current data was being used for the services currently in place.

If the agency were using another General Transit Feed Specification (GTFS) data feed with a third party, it would become more complicated because it would require multiple days of review across services to ensure that the data validation is conducted for each feed.

The key actions were to put the plan in place to implement a system where all data is pulled into the Optibus end-to-end platform as a direct integration that could then be shared by MV and LADOT.

Outcome

MV and LADOT using the same scheduling platform has improved communications, improved data validation, and shaved days off the planning process.

The system doesn’t allow multiple trips to be scheduled at the same time, and both sides can see all trips from a single pane of glass without any need for double data entry into different systems.

We have never had anything like Optibus before. For sure there were huge time savings.”

– Jacob Brothers,
Enhanced Technology Program Coordinator
at LADOT

Telematics System

A telematics systems is a solution that is either embedded in or complementary to a TMS. It can be used with all types of vehicles, and components such as cameras may be used for monitoring static assets such as a warehouse.

Safety has become increasingly important

Monitoring

System & Cargo

Live connectivity enables businesses to extend capabilities throughout all assets.

System monitoring tracks all the vehicles’ core functions and sends notifications of problems.

Cameras are installed to capture and record the internal activity in proximity of the vehicle while sensors detect any foul play such as attempts to open parts of the vehicle or steal goods.

Cargo theft increased by 5.9% in 2021 and 10.3% in 2022.

Safety

Driver & Roadways

Enhancing safety has become a major concern as distracted driving, extreme weather, increased violence in some areas, and increased populations create higher levels of risk.

A combination of cameras and sensors are used to keep drivers safe and monitor their driving patterns.

The goal of safety systems is to protect the driver and others on the road to keep humans safe, keep costs down, and protect the brand.

Driver monitoring and safety decreased intentional hours-of-service violations from 6% in 2021 down to 2.9% in 2022.*

*Percentage of inspections where intentional hours-of-service violations were found.

Sources: BSI Group, 2023; Mother Jones, 2022; Descartes & ChainLink Research, 2019

Transportation telematics improve safety

    Consider telematics as public safety concerns continue to rise.

  • Traffic fatalities are on the rise. The growing number of fatalities on the highways involving commercial vehicles, as well as the need to curb transportation delays, are driving the need for connected vehicles.
  • Fatalities are driving the need for safety measures. Every year over 1.35 million fatalities occur worldwide in road accidents, increasing demand for safety solutions.
  • Technology innovation is driving solutions for safety. The increased expansion of 5G capabilities and usage of smart and IoT devices, coupled with the reduced cost of automotive sensors and the potential for insurance premium cost reduction, is driving up the demand for telematics devices for data collection.

The United States is aggressively looking for ways to reduce the number of fatalities involving commercial vehicles

A study was conducted by the National Safety Council to measure the number of fatal crashes involving trucks in the US. In 2019, there were 5,005 fatal crashes involving trucks – a disturbing 2% increase from 2018.

Source: Fortune Business Insights, 2022

21.6% CAGR The commercial telematics market is expected to grow from $34.8 billion in 2020 to $158.3 billion in 2028.

“Insurers need to work more closely with businesses to capture more value from their automated data capture that can then enable significant benefits for both businesses and insurance companies.” Kevin Tucker Info-Tech Research Group

Top telematics vendors: The market is expanding rapidly

GEOTAB

Geotab supplies telematics, vehicle, and asset tracking to over forty thousand customers in 150 countries. The company has been operating for more than 20 years, connects to over 3.2 million vehicles, and processes more than 55 billion data points a day. Customers use data for better decisions, increased productivity, and safer fleets.

Samsara

Founded by cofounders who previously cofounded Meraki (now part of Cisco Systems), Samsara’s mission is to increase the safety, efficiency, and sustainability of the operations that power the economy. Samsara uses a Connected Operations Cloud to harness IoT data for business insights.

Verizon Connect

Track vehicles, improve worker productivity, and encourage safer driving with dashboards, reports, and alerts. See the vehicle and driver location on a live map to improve dispatch, routing, visibility, and driver speed and to reduce idling and harsh driving to reduce costs for vehicle maintenance and fuel use.

FIPS 140-2

validation for the cryptographic module of the product.

4+ trillion

data points collected annually and

200+

new features annually.

End-to-end

platform solution for assets, planning, and dispatching.

Sources: Geotab; Samsara; Verizon Connect; With Vector, 2021

Recommendations

Develop an application selection process that is easy to perform but also thorough.

Design a digital business strategy to serve your clients. Focus on automating business processes and driving business resilience for growth.

Launch digital solutions that elevate marketing, sales, operations, collaboration, engagement, service, and production capabilities.

It is imperative to focus on the digital risks associated with digital transformation initiatives at the level of structural and operational changes in the organization.

Info-Tech Resources

The transit industry is evolving rapidly as customers and operators look for ways to use digital solutions to increase transparency, efficiency, and passenger/operator safety.

Eye with digital graphics.

Research Contributors and Experts

  • Bob Verret Chief Information Officer
    Dupre Logistics
  • Medik Ghazikhanian Executive Officer, ITS
    Los Angeles County Metropolitan Transportation Authority
  • Mike Kelley Chief Technology Officer
    MVT Services Inc.
  • Steven Schmidt Steven Schmidt Managing Partner, Durable Goods
    Info-Tech Research Group
  • Christopher Goodhue Christopher Goodhue Managing Partner, Non-Durable Goods
    Info-Tech Research Group

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The time for transit companies to modernize their TMS solutions is now.

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Author

Kevin Tucker

Contributors

  • Bob Verret, Chief Information Officer, Dupre Logistics
  • Medik Ghazikhanian, Executive Officer, ITS, Los Angeles County Metropolitan Transportation Authority
  • Mike Kelley, Chief Technology Officer, MVT Services Inc.
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