OPPORTUNITY & Business Impact
Areas for Social Innovation
“The optimisation of urban transport and logistics will be among the defining factors of how society evolves and a key opportunity area for Social Innovation Business.”
At Hitachi, business in the field of digital transf ormation is defined as Social Innovation, which in our previous white papers (http://social-innovation.hitachi/en-gb/about/white-papers/) we described as ‘the deployment of technology and new business models to bring about real positive change to the lives of individuals and societies, creating shared value’. This means that IT-OT convergence and digital transformation is at the heart of Social Innovation Business.
The optimisation of urban transport and logistics will be among the defining factors of ho w society evolves and a key opportunity area for Social Innovation Business.
The digitised mobility future will see the blurring of traditional industry dynamics to create networks of intelligent, interconnected and interoperable systems being brought to life by IoT solutions. In the same paradigm, the convergence and collaboration between IT and OT will create end-to-end solutions for customers from the largest logistics fleet managers to urban rail operators, public transport services and new solution providers. And key to success will be collaboration among stakeholders to deliver sophisticated services based on guaranteed outcomes for users.
The Impact & Benefits of Digitised Transport & Logistics
“The benefits of digital transformation of the urban mobility ecosystem will be felt in mu ltiple
dimensions from revenue opportunities to efficiency gains and new operating models”
There are multiple stakeholder benefits emerging:
1. Direct market opportunities created by the IoT in the supply chain, such as the connected logistics market, are expected to grow into a $20 billion market driven by applications such as warehouse IOT, asset tracking, and data management.
2. New business models, enhanced by mobile platforms and new customer expectations such as on-demand deliveries, will generate new revenue streams for the industry. With technology acting as an enabler, investments acting as the fuel, and inefficiency and labour shortages providing the necessary opportunity, digital solutions will rapidly gain a substantial share of the freight brokerage market.
3.Internal operational efficiencies create better utilisation of assets like trucks through smart driver management, dynamic geo-fencing, theft prevention, etc. Frost & Sullivan estimates a potential 10% to 15% surge in profits due to IOT-powered trucking solutions.
4. Improved economics reduce risk with use of big data and improved data analytics. For example, 8–11 times return on investment (ROI) is expected for long-haul truck fleets for each dollar spent on advanced analytics. By 2022, the average predictive analytics package price is expected to be just $71.
5. Reduced travel time improves customer experience for passengers in personal mobility with better integration on mobility modes; journey planning apps have already shown an improvement in commuter travel time by 30%.
6. Better living environments improve action on societal responsibilities; past sustainability projects in transportation have already resulted in 2.2 percentage points decline in carbon emissions in Mega Cities such as London, with much more to be achieved.
Search
Europe