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If the rate of change on the outside exceeds the

rate of change on the inside, the end is near.Jack Welch - Former Chairman and CEO of GE

THE NEED FOR INNOVATION

Alan Shaw – Norfolk Southern, EVP and CMO

The economy is in constant change

The Global Economy

Volatile, room for innovation, inevitable

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THE NEED FOR INNOVATION

All of this change creates

challenges to running an

efficient profitable railway

The risk of the rail industry having significant net

outflows of workers is very high. Many of those leaving

possess knowledge and skills not easily replicated.

The Changing Face of Rail by Australasian Railway Association Inc.

The accelerating changes in climate make it more

difficult to predict frequency and intensity of weather

events that can affect rail.

Global Climate Change Impacts in the United States

By U.S. Global Change Research Program, Thomas R. Karl

There is an increasing need to respond quickly to external

change

Weather Events

Workforce Demographics

Connected sensors = IoT + Big Data = So what?

Opportunity for Efficiency through Innovation

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In just the last two years we’ve generated something

like 90% of the world’s data… data analytics will

transform all industries moving forward.

Forbes.com, Adapt or die: the digital disruption imperative.

As the rail industry becomes more instrumented,

interconnected and intelligent, business model

innovation becomes more attainable. For rail executives

to capitalize on such change, they need to accelerate

investment in new intelligence.

Keith Dierkx at IBM, The Smarter Railroad: An Opportunity for The Railroad Industry

The Internet of Things

Leads to Big Data

Requires Maths

Mobility & the cloud

Delivers real time solves

Academia produces multitudes of papers on the application

of mathematical techniques

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APPLICATIONS OF INNOVATION FOR EFFICIENCY

Optimization Methods

for Multistage Freight

Train Formation

Integrating

Timetabling and

Crew Scheduling at a

Freight Railway

Operator

Optimal Train

Dispatching by

Benders’-Like

Reformulation

A Two-Model

Solution Approach for

the Monthly Coal

Train Reservations

Planning Problem

Mixed-Integer

Programming for

Railway Capacity

Analysis and Cyclic,

Combined Train

Timetabling and

Platforming

A Railway Timetable

Rescheduling

Approach for

Handling Large-Scale

Disruptions

Optimizing Bus

Bridging Services in

Response to

Disruptions of Urban

Transit Rail Networks

Integrated

Optimization of

Rolling Stock

Rotations for Intercity

Railways

So need is there and tech is there, so why is it so hard?

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SOUNDS EASY… ISN’T

17% of lT projects budgeted at $15 million or higher go

so badly as to threaten the company's existence, and

more than 40% of them fail.

Mckinsey - Delivering large-scale IT projects on time, on budget, and on value

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The People

The Scope The Adaptability

For major corporate systems investments, 80% were

not used as intended—or not at all—six months after

installation.

Gartner Research - Engaging Stakeholders for Project Success

PROJECT SCOPE IS ILL-DEFINED AND TOO BROAD

The total cost of larger IT projects always cost more than everyone thinks,

they're almost impossible to accurately forecast in advance, and innovation

is constantly undermined by the tender process.

University of Auckland Computer Science Lecturer, Paul Ralph

Start with “why?”

1 2 3

AskThe right questions

AskThe right people

Don’tBuy the way you usually do

We’ve established our environment is volatile but…

We then run projects in a vacuum

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IT PROJECTS ARE NOT DYNAMIC

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Project Time, Scope and Budget Fixed – no

problem!

COTS.. yeah, sure it is.

But you don’t know what you need

So learn on the way - reconnaissance by fire

Accept failure as part of the process, not the end

Business wants to know what it will get

10

Don’t underestimate one

persons ability to tank a

massive project

It’s built, your shiny new tool, But if not

adopted -- the benefits will not flow

POWER TO THE PEOPLE

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Source: dilbert.com

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Pacific National ran a successful Locomotive Control System

Project using these methods

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SO DOES IT WORK?

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The People

The Scope

The Adaptability

The Biarri team involved us from the start… we

were involved in pretty much everything they did as

the LMCS came together…The system is very

reliable, easy to use and trainer friendly.

- Graham Horobin, Road Controller

“The LMCS system is impressively reliable, intuitive

and is extremely well designed. …The project team,

including Biarri, should use this as a model for IT

project delivery and change management.”

Ben Pryor, Terminal Manager

RFP “What” vs “Why”

Waterfall vs Agile

COTS vs Inclusive dev

A look into the end product

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SO DOES IT WORK?

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The Old System The New System

In conclusion….

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THE WRAP UP

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The Rail Industry is always

changing

Mathematical innovation can

deliver efficiencies

We need to re-think how we

deploy these smart IT systems

It has already started…

so, get on board.

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Tom ForbesBiarri Rail CEO

Phone: 0408 703 436

Email: tom.forbes@biarri.com

Linkedin: linkedin.com/in/forbestom

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