Operating Challenges and Solutions APTA Fare Collection Workshop & TransITech Conference

Accenture

Operating Challenges and Solutions

APTA Fare Collection Workshop & TransITech Conference

19 March 2013

Ian Davidson

Copyright © 2012 Accenture All rights reserved. 2

• Operating challenges context

• Customer payment choice (closed, open, mobile payments)

• Multi-vendor supplier framework

Integrating customer choice in payments in a multi-supplier framework


Business and Solution Ecosystem

Transaction ProcessingTransaction Processing

Business ServicesBusiness Services ReportingReporting

Data Management

Data Management O

per

atio

ns

Man

agem

ent

Op

erat

ion

s M

anag

emen

t

Inte

gra

ted

S

ecu

rity

Inte

gra

ted

S

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rity

Integration LayerIntegration Layer

ChannelsChannelsBusiness Partner Subsystems

Public/Private Partner Subsystems

Fare Management Subsystems

Multi-Mode Transportation Subsystems

Intelligent Transportation

Subsystems

Legacy Fare Management

Service ProvidersCustomers Call Center / Help Desk

Operations

Web

Phone / IVRSelf-ServiceMobile

Point-of-SaleMail

Social NetsMedia

Payment

Banking

Retail

Telco

External Data

Business Applications

Parking

SmartCard

NFC

Contactless

Pooling

Rail

Tolling

ParaTransit

External Business Systems

Scheduling

The transit agency operating ecosystem requires solutions which strategically fit within a multi-channel and multi-media ecosystem of business services, partnerships and transportation applications


Choice and Flexibility in Fare Management

Balancing multiple demands, transit agencies are looking to provide expanded choice and convenience to customers who have different needs and preferences

• True mobility providing true choice

• Integrated service delivery

• Convenient customer experience

• Progressive technology

• Open and flexible system

• New opportunities for revenue generation

• Embedded information management capability

• Operating efficiency


Enabling Transit Mobility

5

Transit MobilityBuy, order, reload

Obtain discounts

Multi-mode transit

Pay using mobile Phone(incl. NFC)

Choice of products and services

Promotions

Social media

Customer services (e.g. check status)

Find services: journey planner

Supporting the end-to-Supporting the end-to-end customer end customer

journeyjourney

Value addedservices

Enabling a mobile strategy that supports the end-to-end customer journey

5


The payments landscape is evolving with new entrants and incumbents vying with new and disruptive technology

PurchasingCustomer Merchant Acquirer Network Issuer Consumer

Bank

Toda

y

Pure Play m-payment Telcos Handset Mfg Payments

Systems (m-wallets)

Tom

orro

w?

Card Mobile Device

Contact-Based

(Mag, EMV)

Contactless(Proximity)(NFC, RFID)

Fixed Internet

(IE, Netscape)

Mobile Internet

(Apps)

Contactless(Proximity)

(NFC,BarCode)

Contactless(Remote)

(SMS)

Fixed Internet

(IE, Netscape)

Mobile Internet

(Apps)

Open Loop

Credit

Debit

Prepaid

ClosedLoop

Credit

Prepaid

Pay Architecture

Form FactorUser Experience

Payment Type

Traditional Incumbents in Payment Supply Chain

New Entrants Penetrating/Shaping Payment Supply Chain

The combined effect of (a) lucrative profits (b) new technologies like bar-code, contactless, m-payments (c) access to more customer insights (d) customer retention opportunities, is attracting entrants with mobility expertise

New technologies will broaden the payments competitive landscape and may increase the complexity of the supply chain as new entrants demand a “piece of the interchange pie”


A platform to manage operating challenges and support business outcomes

Accenture’s Fare Management System (AFMS) leverages SOA to create a common platform that is used being used today to successfully integrate multiple device suppliers

Transaction ProcessingTransaction Processing

Business ServicesBusiness Services ReportingReporting

Data

Management

Data

Management

Integration LayerIntegration Layer

Web

Phone / IVR

Self-Service MobilePoint-of-Sale

Mail

Social Nets

Banks

Acquirers

Call Center

Service Providers

CardManufacturers

• Transportation and ticketing solution hub• Common back-office for integration, transaction,

customer and financial management• Industry vertical based on Microsoft technology• Enhanced customer experiences and channels• Platform for large, multi-vendor system integration

An innovative and flexible solution…

… enabling a platform for smart mobility.

• AFMS challenges conventional farecard industry “single vendor” proprietary systems• Abstraction layers providing open and flexible architecture and design • Delivers multiple payment types and openings for future innovations• Multi-vendor sourcing – multiple vendors and device types

OpenPayment

SmartCard

NFC


Standards-based Services and Service Bus technologies are the foundation on which most of today’s integration solutions are built

The integration problem is not new. SOA has become the de facto Architecture for Integration

• The primary building blocks of modern fare management solutions – CRM, finance, asset management, distributed device management – are readily available as flexible, proven services

• Evolution of messaging standards in different industries (e.g., HL7) has enabled large-scale adoption of SOA


SOA supports a multi-supplier sourcing strategy and customer payment choice

Accenture Fare Management provides the common platform for fare processing, financial management and operations management

• Device Channels represent the mechanism for load and redemption activities and are no longer tightly-coupled to the central system- Device agnostic

- Adaptors translate vendor-specific device interfaces into internal representation (e.g., card transactions)

- Adaptors convert AFMS common features into vendor-specific device formats (e.g., lists)

- Supports multi-vendor implementations

Operational back-officeOperational back-office

Fare Media Channels(e.g., Cards and Devices)


Commercial back-officeCommercial back-officeSystem

OperationsSystem

Operations

Service BusService Bus


Fare Media Channels(e.g., Cards and Devices)Fare Media Channels

(e.g., Cards and Devices)Fare Media Channels

(e.g., Cards and Devices)Fare Media Channels(e.g., Cards and Devices)


• Fare Media Channels are specific to the payment types supported but “loosely coupled”, meaning the solution is independent of the fare media details, supporting- Smartcards and readers- Bank cards and pinpads or readers- Mobile payments and devices


Accenture’s Fare Management System leverages SOA to create a common platform that is used being used today to successfully integrate multiple device suppliers

Separating•Transaction and financial processing from the details of device implementation•Messaging/transport technology from content•Distributed device management architecture from transactional events

Enables a common central system to integrate and manage transactions across a wide variety of device/vendor products

Integration ArchitectureEnabling Multi-Vendor Solutions


Metrolinx/PRESTO: Open architecture and multi-vendor supply framework

400km

GTHA Devices

• PRESTO is a regional automated fare collection system and shared service delivery model in the Greater Toronto Area and Ottawa region

• To date installation of over 8000 in-field devices in vehicles and sites (to substantially increase with the addition of new transit agencies)

• Common open architecture standard system

PRESTO Greater Toronto

PRESTO in Ottawa

S&B devices & subsystem integrated with Clever Devices and reading PRESTO/STO cards

Device hardware

AFMS Device Pilot

Vendor-agnostic embedded Accenture device software


Landmark trial of next-generation fare management payments technology

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• Provides travellers a choice of payment methods with a simple and flexible payment system

• Conducted July-December 2012, the trial was limited to friends & family and processed over 100,000 transactions

• Leveraged open and flexible back-office architecture (COTS and SOA)

• Devices • Payment industry hardware• Embedded device software from Accenture. Designed to

work with any device vendor drives true device interoperability

• Enables transit agencies to expand the range of retail device options that they can leverage

One of North America’s first fully-functioning trials of a public transportation open payments system, with the capability to allow travellers to pay with a closed-loop smartcard, a credit card or mobile device

Copyright © 2013 Accenture All rights reserved.

Thank-you

13

Jane Matsumoto – Sales Director, Accenture Software

• [email protected]

• (310) 971-3394

John Vasilj – Business Development Director, Public Transport


• (312) 907-3604

Michael Wilson – Managing-Director, Public Transport


• (416) 312-7539

Ian Davidson – Accenture Public Transport


• (416) 641-3049

Contact Details

Documents

Operating Challenges and Solutions APTA Fare Collection Workshop & TransITech Conference