Lessons Learned - Ticketing as a Service

Jane Matsumoto Director, Accenture Fare Management Services Los Angeles, California

Copyright © 2014 Accenture All rights reserved.

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Transit Agencies face pressures investing scarce financial resources and managing changes within the payment and transit industries A “wholesale replacement” of fare systems can be daunting to most transit agencies • Proprietary equipment has long life-cycle that can exceed technology and business relevance • Augmenting the legacy or phasing in new features on top of existing systems is an option that is being seen in North America

Open payments has confused the mass transit industry in NA • Less penetration of EMV cards in US Market than originally forecasted • Open payments and Open Architecture are commonly and erroneously used interchangeably • Modularizing fare card readers that accept future EMV payment cards is a popular “phasing” or augmentation effort

Electronic Ticketing and Popular Phone App features further complicates NA transit • Partial solutions that are not complete electronic fare management systems are increasing • Cheap and fast to implement • Rapid customer adoption

Seeking More Open Approaches • Transit wants to “open up” their system for more flexibility and competition • Organizational changes, political momentum, public expectation opens new opportunities

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Cloud lays the foundation for an agile business and operations Speed

Agility

Rapid Application Development Tools and Methods

Infrastructure ready when you need It

Access

App Store

New devices automatically accommodated

For your business

Service not Software

Knowledge

Changes are configured, not programmed

Real-time analytics

Collaboration

Compliance

Connecting people, businesses and industries

Processes address new regulations

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Software as a Service Software as a Service (SaaS) is a highly scalable application delivery model where the key buyer value has increased usage flexibility and reduced maintenance and support of the application software.

Increasing maturity/scalability

Hosted Application Management Traditional Licenses One-to-Few Private Infrastructure

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Software as a Service Subscription Fees - by user/transaction One-to-Many (Multi-tenant) Public Infrastructure

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Ticketing as a Service brings the cloud to Transit Agencies TaaS is a hosted software platform to manage fare collection operations •

Subscription service model. Services can be selected based on agency needs e.g. infrastructure, application, financial operations, call center

•

Competitive “pay-per-use” pricing model that reduces the need for large upfront investments to become a fraction of the operational expenditures

•

Based on Accenture’s Fare Management Solution, a global cross industry intelligent platform to address all mobility needs

Ticketing

Tolling

Electric Vehicle

Reduce operational costs Copyright © 2014 Accenture All rights reserved.

Bike Sharing

Parking

OEMs

Increase customer insight

Airports

Stadiums

Stations

New Business Models 5

TaaS is a subscription service based on the Accenture Fare Management Solution Pre-configured, hosted and ready-to-deploy solution using commercial off-the-shelf software Accenture Fare Management Solution

  

 

Open architecture based on COTS solution components Multi-vendor device model Multi-media supported e.g. stored value, bank issued cards (open payment EMV), credential-based smart media (e.g institutional card) & mobile ticketing (NFC, QR code) Multi-channel customer support Multi-agency and interoperability with other schemes

+ Hosted Services Hosted AFMS software and connected to the in-vehicle equipment Copyright © 2014 Accenture All rights reserved.

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Ticketing as a Service – TaaS Addresses multi-media channels without constraint Bank Cards

Mobile Wallets

PIV Cards

Institutional Cards Agency Issued e-Fare Media

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(e.g. building access)

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TaaS Pre-Configured Business Processes Process Overview Travel on a Bus

Data Collection

• Daily commuter • Signed transaction using their public files coming from transportation transit field devices are smart card (contacttransmitted to the less RFID) back-end system • Traveler tags card on through 3G network

Data Integration • Transaction is validated against technical and security rules (e.g., format , Signature)

Data Processing • Correlation of transactions into a travel transaction

• AFMS Business Services & Web application

• Travel Transaction is rated

• Invoicing according to fix & variable fee based on the actual transaction type, travel means and transport operator

card reader and gets into the bus

Smart Card or contact less Bank card

Smart card reader

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Back-office Processing

CRM, Billing and Data Presentation

Customer Website

BO Services

Reporting 8

Key Features and Benefits

Key Features: • • • •

Pre-configured solution Fully hosted and ready to implement Product roadmap with regular feature upgrades Tailored to business needs and usage

Key Benefits: • • • • • • •

Transit Agencies do not need to worry about managing complex IT infrastructure, software and integration Fast time to market with a pre-configured solution to avoid long design/build phases Reduces capital expenditures and equipment acquisition costs. Can be an annualized opex or a multi-year contract Scalable based on changing transit agency requirements Automated processes that save time and drive performance up Personalized customer service by connecting with customers throughout their journey Better understanding of customer behavior through data collection and reporting 9

Ticketing as a Service business model is based on a subscription service model Pricing in a TaaS is based on a pay-per-use approach for the operator and can be based on revenue or transactions Financing options minimize initial investment

CAPEX based on setup fee and equipment purchase

Estimated cost vary depending on number of buses as well as configuration complexity Ticket Unit Cost

Volume-based Pricing OPEX based on price per travel transaction

0,0x USD

0,0y USD 0,0z USD

40M 80M 150M Transaction price decreases with volume Copyright © 2014 Accenture All rights reserved.

# of Tickets

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TaaS: A new approach for Transit eFare Management

Consumptionbased Model

Hosted Solution Services

Open Architecture

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Thank You Contact Details Michael Wilson – Managing Director, Public Transport [email protected] (416) 312-7539

Jane Matsumoto – Sales Director, Accenture Software [email protected] (310) 971-3394 John Vasilj – Business Development Director, Public Transport [email protected] (312) 907-3604

Copyright © 2014 Accenture All rights reserved.

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