The Benefits of Smart Data for the Transport & Mobility sector

Smart Data is data that is securely shared, with the customer’s permission, to third parties. The most obvious example of Smart Data is Open Banking, but other sectors such as energy & finance are now looking to follow suit. The term should not be confused with other similar terms such as “Open Data” – e.g. public transport fares & timetables (defined as freely available data and typically published by public sector organisations for wider societal benefit), with each type of data sitting in a different part of the Transport & Mobility Data Spectrum.

The Open Transport Initiative was set-up to create and support the adoption of customer account data sharing across the transport & mobility sector.

Our view is that Smart Data has many benefits including:

  1. Providing organisations with a standardised approach to GDPR data portability*, a GDPR right of the individual to obtain and reuse their personal data for their own purposes across different services.
  2. Putting customer’s in control of their own transport & mobility data by providing an Open Standard API specification for account data integration regardless of software or database technologies.
  3. Being an enabler of growth and innovation, by providing an interoperable way for an entire sector to share transport & mobility customer account information with third parties.

*The right to data portability allows individuals to move, copy or transfer personal data easily from one IT environment to another in a safe and secure way, without affecting its usability. It is seldomly considered when designing and building any sort of data storage, let alone enforced in the same way other GDPR rights have been.

If you would like to join or know more about the work of the Open Transport initiative please contact us: contact@opentransport.co.uk

Smart Data Roadmap gives next steps for Transport

The UK Government’s Department for Business & Trade has today published an important document that outlines how the transport & mobility sector will be part of Smart Data sharing schemes in 2024.

Titled “The Smart Data Roadmap” this report provides a timeline of the action the Government is taking in 2024 to 2025 to unlock the potential for Smart Data to drive the wider data economy.

Each sector will progress through four stages

  • identification
  • consultation
  • design
  • implementation

With Transport defined as still being in the ‘identification’ stage.

Next Steps

In the section “Next steps for Smart Data in Transport” the actions given are:
The Department for Transport will progress work to support Smart Data objectives, including:

  • Taking forward discovery work to develop transport use cases for Smart Data.
  • Using the outcomes of the discovery to shape the evidence for a Call for Evidence in Autumn 2024, along with potential questions.
  • Publishing further detail on the opportunities for Smart Data in the transport sector in 2025.

With the further information provided that “The government is also considering schemes within energy, telecommunications and transport in line with its vision for regulatory reform that will ensure regulators help push down the cost of living and drive economic growth.”

The Open Transport Initiative welcomes the publication of this roadmap and especially the news that in Q3 2024 the Government will be launching a Call for Evidence for potential Smart Data schemes in the Transport sector.

Since the publication of the UK Government’s Smart Data consultation response “Next Steps for Smart Data” published back in September 2020, The Open Transport Initiative has campaigned for the introduction of ‘Open Banking’ like data sharing practices to be properly adopted across the Transport & Mobility sector.

UK Government announces plans to accelerate Smart Data for Transport

In today’s UK Government Spring Budget announcement was the paragraph:

“Accelerating smart data schemes in energy and transport – Following announcement at Autumn Statement 2023 that the government would seek to maximise the benefits from incoming Data Protection and Data Information Bill Smart Data powers, the government is providing targeted funding for consultations and calls for evidence to accelerate schemes in energy and transport.”

https://www.gov.uk/government/publications/spring-budget-2024/spring-budget-2024-html

It is not clear from this statement on the timescales for when the funding will be released and when these consultations will be carried out. However this is the first mention of ANY plans from UK Government for the acceleration of Smart Data sharing in the Transport & Mobility sector. And consequently The Open Transport Initiative very much welcomes this announcement.

Why isn’t transport & mobility piloting Smart Data sharing?

The UK transport & mobility sector is the largest emitter of CO2 and other greenhouse gases. Consumers and small businesses generate a wealth of useful personal transport and mobility data as they move about their lives or work. This includes information about products purchased (tickets), journeys undertaken (routes, durations, etc.) and discounts & concessions used (railcards, etc.).

Additionally, individuals and businesses are becoming increasingly aware of the emissions generated by their travels and are motivated to minimise these footprints.

Data is key to good decision-making for reaching NetZero. But currently, finding and accessing the data across different accounts is hard. Powerful barriers – technical, legal, commercial – prevent data from being shared, leaving it under-exploited and often hidden from view.

The UK Government has understood this and coined the term ‘Smart Data’ to refer to the secure sharing of customer data with named / authorised third-party providers upon the customer’s request. The concept started with Open Banking, but a wider adoption of Smart Data is now being implemented, with initiatives such as Open Finance, Open Energy, Open Telecoms being planned. The UK Government has also formed a Smart Data Council to extend the benefits of Smart Data to new sectors.

So why isn’t the transport and mobility in the UK being used as a pilot or an early adopter of Smart Data sharing practices?

Perhaps because the sector is highly deregulated and fragmented, with many regional providers across different transport modes? Therefore making it harder to start the process.

Or perhaps because transport isn’t currently politically or socially important as the the finance or utilities / energy sectors, which also have a high degree of competition and therefore regulation & governance.

How to future-proof your next customer transport system purchase

The Public Transport sector is not known for swiftly and easily taking on tech innovations. Adopting new technologies may be appealing to some (especially users), but so is running an efficient, safe and reliable passenger & freight service around a city, region or country.

Keeping up with customer demands in the transport industry is a continuous cycle… There’s new user experience trends, exciting (well to some) payment types and a constant flood of mobile apps & digital services to integrate with. Customer needs are now firmly set by the big technology companies, with everyone expecting “Apple-like functionality” all the time.

So if you are a transport service provider how can you ensure your next customer-facing application will be future-proof?

The short answer is “you can’t”. Predicting what the future will bring is almost impossible, and by the time most organisations have usually specified, procured and delivered something technical to be delivered it is almost certainly no longer going to be cutting edge.

However, transport authorities apply some key principles to ensure what they procure is as forward-compatible as possible…

  1. Use self-contained, modular & independent services that each meet specific use cases, rather than implement a huge application that you only need part of (and that quite possibly duplicates functionality you already have elsewhere)
  2. Have a clear “buy vs build” policy and understand the business & tech impact of each, including longer-term considerations such as: hosting, support & maintenance and future changes.
    Notes:
    Buy usually means purchasing a solution (“off the shelf” or as a “software-as-a-service” [SaaS] product) that another organisation has previously built, then enhancing it or configuring it to meet your own needs.
    Build usually means designing, developing and testing a bespoke solution with your own resources (either in-house or using a 3rd party)
  3. Use Open and Interoperable standards, to ensure your technology integrates & works with other technology and that it can easily be expanded & upgraded. Proprietary standards, specific to a single vendor, can trap you in a situation where you’re reliant on that vendor for future upgrades, maintenance, and support. This lack of choice can significantly inflate costs and limit your options in the long run. Open standards, on the other hand, allow you to choose from a wider pool of compatible vendors and products, fostering competition and potentially driving down costs.

Ecosystem – The key to a better transport & mobility industry

The word “Ecosystem” isn’t used as much as it should be in the transport and Mobility-as-a-Service (MaaS) sector. The term has far more usage in other sectors, such as financial services, where it is now more regularly used by most banks and FinTechs. And increasingly in the Open Finance world of insurers, credit companies, etc.

The term (sometimes also called a Digital Ecosystem) typically refers to a complex network of interconnected people, businesses, and technologies that interact with each other through digital platforms and data. It’s analogous to a natural ecosystem, where different components work together to create a functioning whole.

They are important for the following reasons:

1. Enhanced Collaboration and Efficiency:
By fostering seamless data exchange and communication between different entities, digital ecosystems enable efficient collaboration and streamlined workflows. Imagine a supply chain where manufacturers, distributors, and retailers are all connected on a digital platform, enabling real-time information sharing and synchronized operations.

2. Innovation and Value Creation:
Digital ecosystems create an environment where different players can share ideas, resources, and expertise, fostering innovation and the development of new products, services, and business models. This collaborative environment can lead to the creation of significant value for all participants within the ecosystem.

3. Improved Customer Experience:
By integrating various touchpoints and services, digital ecosystems can provide a unified and seamless customer experience. Imagine a travel ecosystem where you can book flights, hotels, and activities all within one platform, with each element seamlessly connected for a smooth and personalized journey.

4. Increased Market Reach and Opportunities:
Digital ecosystems can connect businesses to a wider audience and open up new market opportunities. For instance, an e-commerce platform like Amazon creates a digital ecosystem where small businesses can reach a global customer base they wouldn’t have access to otherwise.

5. Adaptability and Future-Proofing:
By being open and interconnected, digital ecosystems can adapt and evolve more readily to changing market demands and technological advancements. This flexibility allows businesses to stay competitive and relevant in a dynamic environment.

So perhaps it is time transport providers, mobility start-ups and others used the term more often and thought of the entire transport & mobility sector as a single large ecosystem (rather than as different modes, transport authorities & regions, etc.).

What is Smart Data and how does it help us meet Net Zero goals?

In the UK the transport & mobility sector is now the largest emitter of CO2 and other greenhouse gases (GHGs). Helpfully though, individuals and businesses are becoming increasingly aware of the emissions generated by their travels and are motivated to minimise these footprints to help reach the Net Zero target by 2050 – the date set in The Paris Agreement when all greenhouse gas emissions will be equal to the emissions removed from the atmosphere.
https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement

Data is key to good decision-making for reaching NetZero. But currently, finding and accessing the data is hard. Consumers and businesses generate a wealth of useful personal transport and mobility data as they move about their lives or work. This includes information about products purchased (tickets acquired), journeys undertaken (routes taken, journey durations, travel dates/times), and travel cost management practices (discounts and off-peak travel strategies). But powerful barriers – technical, legal, commercial – prevent this customer account data from being shared, leaving it under-exploited and often hidden from view. 

The UK Government has understood this and coined the term ‘Smart Data’ to refer to the secure sharing of account data with named / authorised third-party providers, upon the customer’s request. The concept started with Open Banking, but a wider adoption of Smart Data is now being implemented, with initiatives such as Open Finance, Open Energy and even Open Telecoms being planned. The UK Government has also formed a Smart Data Council to extend the benefits of Smart Data to new sectors.

The Open Transport Initiative therefore wants to see Smart Data being adopted and implemented for account data sharing across the transport & mobility sector too. With the aim of helping individuals and businesses to further reduce their impact on the planet and transition to a more sustainable future.

Why transport & mobility needs Smart Data

The transport and mobility sector in the UK (and other countries) is highly deregulated and fragmented, with services from many regional providers across different modes of transport. There are 20+  train operating companies, dozens of bus and tram operators, numerous taxi and micro-mobility companies, and more recently many new Mobility-as-a-Service [MaaS] platforms being launched. Each service has their own customer account, with a huge amount of siloed transport data, all stored in disparate systems in a range of ways.

To make things worse… The GDPR individual Right to Data Portability is rarely kept to across the sector. Meaning there is often no way for each user to export their account data in any meaningful way (let alone import data from one account into another).

By securely linking different mobility accounts all managed by the same user, it will be possible to share data between them and with a trusted Third-Party Processor [TPP] in a standardised way. This then allows the aggregated and consistent presentation of multi-modal information to the user in a single “Transport Dashboard”. This application can then show the user additional useful information, such as:

  • cheaper fares
  • shorter travel times / routes
  • alternative modes of transport
  • combined amounts of CO2 and other Greenhouse Gases (GHGs)

Presenting the joined-up data in this way helps the user understand the impact and costs of their travel, and can then be used to change future behaviour – such as choosing less polluting modes and providers.

Multi-sector Smart Data is the key to maximising its value

The Open Transport Initiative was originally set-up to create and support the adoption of customer account data sharing (AKA “Smart Data”) across the transport & mobility sector. And having data (such as usage, journey information & discounts) shared from different accounts across the sector is an important first step. However the maximum benefit of Smart Data lies in the potential to connect cross-sector data.

The diagram below is our attempt to show how data from different sectors can be shared with transport data to create new and exciting cross-sector services.
For example, combining vehicle (e.g. car, motorcycle, etc.) usage data with financial product information could create a completely personalised insurance suite of products.

How can data help transport & mobility move to Net Zero?

Greenhouse gas (GHG) emissions from the transport and mobility sector are increasing, despite global agreements to reach net zero emissions by 2050. In 2022, global CO2 emissions from transport grew by more than 250 Megatonnes, reaching 8 Gigatonnes in total. https://www.iea.org/energy-system/transport

The sector therefore has the responsibility to decarbonise, quickly.
(And like all good transport analogies, this transition needs a roadmap.).

Unfortunately, the transport and mobility sector’s roadmap to reach net zero emissions by 2050 isn’t an easy one. It will involve a major transformation of the way move people and goods. It will require a shift to cleaner fuels, more efficient vehicles, and a greater focus on public transportation and other sustainable modes of transport.

But this cannot happen without data (or put more frankly… no data, no decarbonisation).
Data can play a critical role in the transition to net zero transport in a number of ways, including:

  • Operations: Using data to optimize transport providers’ routes and therefore reducing fuel consumption. For example, planning delivery routes in a way that minimizes the distance travelled.
  • Operations: Using data to develop new technologies for decarbonizing the transport sector. For example, to develop new battery chemistries that could make electric vehicles more affordable and efficient.
  • Change user behaviour: Using data to developing policies that discourage the use of high CO2 emitting modes of transport.
  • Change user behaviour: Using data to incentivise the use of low-carbon transport options.

Sharing data can further help with the transition to Net Zero for the sector by both:

  1. Making it easier for different authorities to collect, analyse, and share (anonymised user) data
  2. Allowing users to securely share the multiple sources of information that they have in their individual transport accounts, to help them plan and use less co2

If you would like to join or know more about the work of the Open Transport Initiative please contact us: 
contact@opentransport.co.uk