accenture - secure technology alliance · • partial solutions that are not complete electronic...

Accenture New Trends Ticketing as a Service SCA 2014 Payments Summit Jane Matsumoto

February 6, 2013

Copyright © 2014 Accenture All rights reserved. 2

Factors Supporting Ticketing as a Service (TaaS) Exploring Options in Total Cost of Ownership

•  Agencies are spending up to 15% of fare revenues to support fare systems and legacy revenue operations

•  In a recent survey the majority of transit agency participants identified pressures that support TaaS as a viable alternative to in-house operations ‒  Looking to reduce capital costs ‒  Insufficient resources to operate more

complex systems ‒  Highly evolving technology makes

retention of qualified staff difficult •  Losing staff to private industry •  Difficult to stay current with industry

changing rapidly

•  Ticketing as a Service offers alternatives to in-house ownership of new payment systems


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

Transit Agencies face pressures investing scarce financial resources and managing changes within the payment and transit industries

Cloud lays the foundation for an agile business and operations

Speed Rapid Application Development Tools and Methods

Agility Infrastructure ready when you need It

Access New devices automatically accommodated

Service not Software Changes are configured, not programmed

Collaboration Connecting people, businesses and industries

Knowledge Real-time analytics

Compliance Processes address new regulations

App Store For your business

4 Copyright © 2014 Accenture All Rights Reserved.

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.

Hosted Application Management

Software as a Service

Traditional Licenses One-to-Few

Private Infrastructure

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

Increasing maturity/scalability

5 Copyright © 2011 Accenture All Rights Reserved.

Software as a Service


Ticketing as a Service brings the cloud to Transit Agencies

TaaS is a hosted software platform to manage fare collection operations

Electric Vehicle Tolling Ticketing Bike Sharing Parking OEMs Airports Stadiums Stations

Reduce operational costs Increase customer insight New Business Models

•  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


TaaS is a subscription service based on the Accenture Fare Management Solution

+

Hosted Services Hosted AFMS software and

connected to the in-vehicle equipment

§  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

Pre-configured, hosted and ready-to-deploy solution using commercial off-the-shelf software

Accenture Fare Management Solution


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

Mobile Wallets

Institutional Cards

(e.g. building access)

PIV Cards

Bank Cards

Agency Issued e-Fare Media


TaaS Pre-Configured Business Processes

Process Overview

Smart Card or contact less Bank card

Smart card reader

Back-office Processing

Customer Website

BO Services

Reporting

•  Daily commuter using their public transportation transit smart card (contact-less RFID)

•  Traveler tags card on card reader and gets into the bus

CRM, Billing and Data Presentation

Data Processing

Data Integration

Data Collection Travel on a Bus

•  Signed transaction files coming from field devices are transmitted to the back-end system through 3G network

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

•  Correlation of transactions into a travel transaction

•  Travel Transaction is rated

•  AFMS Business Services & Web application

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

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

10

Key Features and Benefits


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

OPEX based on price per travel transaction

Ticket Unit Cost

0,0x USD 0,0y USD 0,0z USD

40M 80M 150M # of Tickets

Volume-based Pricing

Transaction price decreases with volume


TaaS: A new approach for Transit eFare Management

Consumption-based Model

Hosted Solution Services

Open Architecture


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

accenture - secure technology alliance · • partial solutions that are not complete electronic...

Documents