Executive Insight

Green revenue opportunities These initiatives are likely to benefit public transport
However, with greater collaboration between Telcos, operators not only by increasing usage and associated
technology providers, governments and local authorities, revenues, but also by increasing asset efficiency and
these telemetry solutions can be further developed to drive optimising cost/income ratios. Aside from the
key behavioural changes that are likely to in turn reduce opportunities for Telcos to generate additional
emissions and also costs for both businesses and private revenues, total emissions are also likely to fall as more
individuals. people choose public over private transport.
Optimise use of private vehicles Challenges
The opportunity here is to encourage a reduction in the This approach will require Telcos to collaborate and
overall use of private vehicles and, where they are used, share data with the government, local authorities and
to encourage behaviour that will reduce emissions. transport operators. The extent of the collaboration
Options include Telcos enabling GPS devices with multi- needed is likely to require the government and/or
way communications such as vehicle-to-vehicle and relevant local authorities to take the lead.
vehicle-to-infrastructure in a way that is integrated with
systems to control traffic lights, speed limits, parking Furthermore, increased use of mobile information to
availability and potentially dynamic congestion charging track movement is likely to raise privacy issues. As such,
zones. Indeed the use of telemetry information related careful consideration of the legal and data security
to driving style in commercial vehicles has already implications is critical.
proved to significantly reduce emissions and also fuel
costs. This information could also be used by insurance However it is also recognised that the most compelling
companies to build a more accurate risk profile for drivers of this transition is likely to be the cost and
particular categories of drivers. It could in turn allow comfort of public transport relative to the cost of a car
proactive intervention by the insurance company based journey.
on actual data rather than perceived risk, either to
increase the cost of a policy and/or encourage different Opportunity 2: Business and Transport – use of new
driving behaviours to reduce the risk of a claim to the MI solutions and performance management
insurer. approach to encourage uptake of existing
collaborative working tools
Encourage migration from private to public transport
Successive UK governments have encouraged the Current activities
migration from private to public transport, with some It is well publicised that teleworking can substitute
success in urban areas. However, the challenges of commuting and business travel to reduce the negative
climate change and increasing congestion on the roads environmental impacts and associated costs. Studies
suggest that more progress is needed. We believe that have found that on days they telework, employees
Telcos can play an important role in encouraging the reduce travel mileage by 48% – 77%, resulting in a
use of public transport by working with the saving of 11% – 19% in overall travel.
13
government, local authorities and transport operators in
the following ways: Telepresence solutions have been around for a number
of years but so far they have been long on projections
P .F8?B64G<BA
54F87F8EI<68F8:-B@-B@&<I8GB and short on actual growth. Nevertheless, Cisco has
study travel patterns to better match supply of public reportedly reduced its annual travel budget by two
transport services with demand. thirds – from $750 million to $240 million. Similarly,
P .F8G;<F<A9BE@4G<BAGB<@CEBI86BBE7<A4G<BAB9 Hewlett-Packard reported a reduction of 30% in its
public transport between different services, for travel expenses from 2007 to 2008 and expects even
example by aligning train services with bus services better results for 2009.
14
for the most popular routes at different times during
the day. However, while a reduction in commuting will save time
P #@CEBI84668FF<5<?<GLB9>8LGE4AFCBEG<A9BE@4G<BA and cost, we believe the opportunity to save on
such as timetables and service delays on mobile emissions is less clear as typically heating and lighting
devices. For example, an augmented reality usage per employee increases when they work from
13 Glogger, A.F., Zängler,
application for the iPhone already provides location home. Emission savings are therefore more clearly
T.W. and Karg, G. – The
details based on the skyline in the user’s location. associated with a reduction in business travel not
impact of telecommuting
This type of application could be enhanced to bring related to commuting.
on households’ travel
behaviour, expenditures
together information on where the nearest bus station
and emissions –
is, the distance and travel time with real time arrival The evidence suggests that companies that use
Proceedings of the TRIP
information for the next service. This information collaborative technologies as part of core business
research conference,
Hillerod, Denmark
already exists, but currently across different devices. processes typically generate significant productivity
(February 2003)
This type of application would revolutionise the gains. A multinational pharmaceutical company has
current offerings and would be likely to increase used video collaboration in sales and research to bring
14 John Boudreau – Video
conferencing prompting
uptake. drugs to market 20% faster by helping distribute
Silicon Valley companies
company messages internally and enabling 75% of
to cut travel budgets
issues to be addressed within 24 hours.
(June 2009)
4
© 2009 Deloitte LLP. All rights reserved. xii
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