Author: Per Olof Ärnas (Chalmers Institute of Technology)

Some contents of this blog has previously been published on http://drlogistics.se/2011/06/03/digitization-of-transportation-systems-part-1-%E2%80%93-introduction/

Digitization of transport systems: Part 1 - Introduction - By Per Olof Arnäs

Cave paintings, rock carvings, hieroglyphics, papyrus scrolls, parchment, handwritten books, printed books, punch cards, computer tapes, audio tapes, floppy disks, USB drives, the internet.

Moving information has never been easier. We can move enormous amounts of data anywhere with the speed of thought. The very concept of “moving data”, by the way, is about to change dramatically. Today it’s more about giving others access to existing data rather than actually sending from A to B.

In short, digital technology means that we no longer have to worry about the laws of physics when handling information (not when compared to paper-based information at least). Media strategist Joakim Jardenberg wrote the following on Twitter:

 "I do not hesitate to place the internet in the same category as fire, the wheel and the alphabet"

 And of course he is right! Science fiction writer Arthur C. Clarke wrote that “Any sufficiently advanced technology is indistinguishable from magic” (Wikipedia). For Tutankhamen, Thomas Aquinas, and Johannes Gutenberg today’s information technology would look like pure magic. And rightly so. We are in the beginning of an exponential development curve that gets steeper and steeper.

But let us take a step back and study another development that begins with floating logs and then more or less continues with the wheel, beasts of burden, carriages, shipping, steam engines, railways, internal combustion engines, cars, trucks, electric motors, aviation. I’m talking about transportation, of course. The science that address topics such as how / why we are moving things around. And how we can do it better.

Transportation is, as I have said before, a disturbingly analog business. You cannot e-mail a load of landfill. You cannot copy and share a dishwasher with your friends.

The transportation industry has evolved over centuries. In modern times, we see a relatively steady development of the horse and carriage to today’s modern vehicles and load carriers. New technologies have mainly focused on improving the previous version, which of course leads to a gradual – incremental – improvement of the system. If you compare this with the information technology development speed, it almost feels as if the transport industry has been standing still – which obviously is not the case.

The physical – the analog – world have to take into account the odd law of nature. And this leads to my main observation. In order to drive development forward in larger steps, the transport industry must be digitized. The incremental development that currently characterizes the physically-oriented sector of transport, will not lead to any revolutionary development leaps. The vehicles will gradually become more efficient, be able to load more and consume less energy. But what if you could also take advantage of the exponential rate of evolution in IT?

 This development is in progress already, of course, and transportation systems are digitized now at breakneck speed. This process can be divided into four different domains, each with its own conditions, rules and logic. The four domains are:

• Connected Vehicle
  • Equip the vehicle with a communications platform that doubles as a data collection node.
• Connected Goods
  • Identify items so that they can be connected to a database in which additional data are available, such as allowing a more efficient management.
• Connected Business
  • The organization must shift from transactions- to exceptions management. Instead of manually managing each individual task, the system handles most of them.
• Connected Infrastructure.
  • Vehicles begin to communicate with the infrastructure in a way never before possible

By digitizing and integrating the four domains, the transport system will be upgraded. New business- and operating models become possible. Major efficiency improvements and optimizations as well. 

 by  AndYaDontStop, modified by Per Olof Arnäs

In order for the digitalization to yield full effect all four domains are required. The problem is that a single player never (or rarely) controls all four. One, two, or perhaps even three domains can be managed under a single company, but no one can handle four. There are simply too many stakeholders involved.

That is why it is so important with standardization. The use of common, standardized interfaces for communication between systems and domains are of course essential in the digitization process.

[This post has previously been been published in the Swedish blog Logistikfokus]