How the Internet of Things powers data-driven decision-making
Possibilities for efficient, cost-saving data collection, reporting, and analysis in public transit have exploded in the last decade, in large part thanks to improvements in technology that support the Internet of Things (IoT). The IoT refers to the collective network of connected devices and the technology that makes communication between devices and the cloud – or between devices themselves – possible. With IoT-enabled capabilities, every aspect of a transit system and every user can be connected by compatible hardware and software.
With the help of Application Programming Interfaces (APIs), the IoT allows devices and software to be integrated across platforms so that agencies can not only collect information more easily, but aggregate all that data in one location.
IoT benefits at a glance
The Internet of Things (IoT) is commonly used across workplace and residential applications such as video doorbells, smart thermostats, and tracking tiles.
In public transit, IoT helps to connect smart devices such as fareboxes, ticket vending machines, validators, and software such as mobile ticketing apps to each other and to the internet. The resulting data can be accessed through a mobile application or a website.
There are many ways IoT-enabled technologies support public transit agencies, including:
- Distributed and controlled access to cloud-based data across users and devices
- Identification of new opportunities such as targeted fare structures for students or seniors or organizational partnerships with institutions and employers
- Predictive maintenance rather than reactive or preventive maintenance
- Monitoring of infrastructure and asset tracking for safety, security, and efficiency
- Enhancement of security with built-in features like end-to-end encryption, secure device identity, and access control to ensure data protection, comply with industry standards, and reduce vulnerability to threats
- Remote installation of software updates, fare structures, and security patches
- Future-proofing to embrace new technologies without disrupting the current systems
- Route optimization recommendations based on data over time to replace expensive and time consuming route studies
Download the white paper
Excerpts from the white paper appear below. To read the full Beyond Connectivity: How IoT data is revolutionizing transit white paper, download a PDF.
Embracing connectivity
The technology that enables the Internet of Things has been around since the 90s, but until the last decade or so, the chips used for it were too bulky, slow, and expensive for widespread use. Today, the IoT is everywhere and used every day — at home, at work, and in public.
At the same time, transit agency leaders are becoming more comfortable with the idea of integrated technology and how it facilitates data gathering. In fact, six in 10 public transportation leaders say they are investing or planning to invest in the Internet of Things, artificial intelligence, and other technologies, along with emerging asset classes, according to a global survey commissioned by professional consulting firm KPMG in 2022. The intent is to “enable seamless services, deliver safe travel, and reduce customer costs,” the company reports.
“Automation, AI, and IoT integration across the public transport network is also enabling the timely collection of huge amounts of passenger data,” KPMG states in its report. Among the transportation organizations it surveyed, 27 percent agreed that “access to real-time data about service performance, location, and occupancy is the technology-related factor with greatest potential to change the transport landscape.”
“Today’s world is run on information, and as an industry, we need to get on board with this,” says Mike Loeffler, chief revenue officer at Genfare. “When it comes to using data to make decisions that impact operations, cost savings, or route analysis, agencies are still behind the times compared to other data-driven industries,” he says.
In addition, equitable transit service that helps communities thrive depends on a deep understanding of riders’ behavior and needs, says Sara Edney, product manager at Genfare. “To do so, it is essential to prioritize data-driven decision making by embracing the technological changes that are already here,” she adds.
For example, IoT networks have allowed the three major transit providers that serve Chicago and its collar counties to centralize fare payments in an open-loop system using contactless fare payment technology. Riders of Pace Suburban Bus, the Chicago Transit Authority and the Metra commuter train system can use the same Ventra card, mobile app, or contactless bank card to pay their fares across all three systems.
This Ventra fare payment integration has resulted in greater equity and convenience for riders and a treasure trove of useful data, according to the U.S. Dept. of Transportation’s Intelligent Transportation Systems Joint Program Office.
Real-time data exchange
The cornerstone of IoT is the real-time exchange of data. This typically involves three components:
- Smart devices. These devices have computing abilities and can collect data and communicate it over the internet to and from its IoT application. In the case of transit, smart hardware includes fareboxes, ticket vending machines, validators, and other devices.
- Application. An IoT application is a collection of services and software that collects and uses data from the smart devices in its system. A transit agency’s fare collection software platform performs this function. IoT applications are growing more sophisticated, not just integrating data, but also using machine learning or artificial intelligence to respond to the data.
- User interface. The graphical user interface is the part of the system that users interact with on a computer, tablet, or smartphone. This is typically a mobile application or a website. Examples of rider-facing user interfaces are Mobile Link and e-Fare.
IoT capabilities are also supported by Application Programming Interfaces (APIs) and cloud-based computing services such as Amazon Web Services. An API is, simply put, language in software that allows software and smart hardware to communicate within and across platforms. In addition, cloud-based computer services such as Amazon Web Services (AWS) and their features are essential to data aggregation.
Cloud-based services are playing a greater role in helping agencies to save costs when breaking down continuous sets of data, APTA reports in its 2019 policy brief. The organization found that 39 percent of respondents in 2018 had data programs that used cloud computing services. That number is surely much larger today.
“Cloud computing permits the sharing of data across an entire organization, allowing convenient access for different departments,” the brief explains. “Software built into AWS can help agencies perform predictive modeling using large datasets.”
Better data means better reporting
Just about every aspect of transit operations and administration can be enhanced by the Internet of Things, including reporting. A cloud-based reporting platform like Genfare Link gathers, integrates, and organizes data from across devices and systems and gives transit agencies clear insights into their system. It enables staff to access this data and customize and automate reporting, reducing time and effort and centralizing operations to remove silos.
When data is continuously transmitted from everywhere it is collected, centralized reporting from all points of contact can be used to give agencies a better sense of their riders. This includes:
- Who is riding which routes
- Where riders board, at what times, and how often
- How riders react to weather, events, and other variables
- How and where riders purchase their fares
- The impact of fare structure changes
This detailed data, delivered using intuitive analytical and data visualization tools, enables agencies to make informed decisions about responsive solutions.
“We should all be slicing and dicing this data to inform route, schedule, and fare planning so we can better serve our communities,” Loeffler says. “This data can be used not just to plan where your buses are going and when, but what forms of payment you are accepting and where and how riders are purchasing fares.”
IoT beyond data
Beyond data gathering, here are some of the ways that IoT technology can enhance just about every aspect of transit operations and administration, including benefits that extend to every agency role:
Interoperability
Today’s riders have more choices than ever for the first and last miles of their commute. Whether that’s bike rental, scooter share, or park and ride, and no matter the provider, APIs allow riders to plan their trip or even pay for it across modalities. Imagine the convenience to a rider who can pre-pay for their parking, know exactly when the bus arrives, and how many bikes are available near their bus stop on the same app they use to purchase fares.
Interoperability also applies to neighboring or overlapping transit systems. For example, Genfare customer Pace Suburban Bus shares a smart card system and trip planning data with the Chicago Transit Authority and the Metra commuter rail system, even though all three systems have different fare collection hardware and software.
Flexible fare structures
APIs make it easy to push new fare structures to fareboxes and validators; enable fare capping using smart cards, open payment, or mobile apps; and even offer short-term promotions such as free rides or round-trip discounts on specific routes for events. Riders and operators don’t even have to think about the fares because flexible structures are easy to implement across payment methods.
Organizational partnerships
The Internet of Things simplifies partnerships between organizations and transit agencies. This allows the schools, employers, social service agencies, or healthcare providers to not just manage fare payment for riders associated with their organizations, but also to get creative about fare payment. For example, APIs make it possible for schools to manage student fares. Or a hospital could provide discharged patients with a printed barcode good for limited rides originating near the facility, and the farebox will have the information it needs to validate the fare by the time the rider boards.
Dispatch and tracking
Computer aided dispatch (CAD) provides communication between bus operators and dispatch and automatic vehicle location (AVL) tracks the locations of vehicles. The CAD/AVL system can be connected with systems such as trip planning apps, public-facing websites, municipality construction and emergency closure databases, and fare collection solutions. That leads to real-time communication and robust data integration, providing valuable real-time and aggregated information to riders and administrators alike.
Maintenance and asset management
The Internet of Things can monitor hardware to identify potential problems and troubleshoot – often before anyone realizes there’s an issue. Alerts can be set to let garage staff know when a farebox needs to be vaulted, a printer head or belt is nearing replacement, or a component isn’t working before the bus returns to the depot. It can also track events that may indicate a maintenance or operator training issue, such as excessive overrides or bypasses, then troubleshoot accordingly and notify the appropriate staff.
Conclusion
IoT technology can help gather, store and use data more quickly and efficiently, empowering dynamic environments where data-driven decision making helps agencies adapt more quickly to changes in the community, technology, or regulatory landscape. With big-picture and granular data, plus reports and analyses in hand, agencies can better design forward-thinking initiatives ranging from route optimization to ridership outreach to community partnerships.
“The solutions that can help with data collection and monitoring to make these data-first decisions are available today and are likely compatible with the technology transit agencies already have in place,” says Edney, of Genfare. “When on-site technology is able to do the data gathering, put it all in one place, and aid agencies in efficient analysis and reporting, that’s powerful,” she adds.
“We believe agencies are now on the cusp of collecting and using data in a more responsive way that better serves all potential riders.”
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Download the full white paper
Read the full Beyond Connectivity: How IoT data is revolutionizing transit white paper by downloading the PDF.
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