Welcome!

News Feed Item

Technology Innovations and Cross-Industry Integration Poised to Transform Travel, Transportation, Tourism, and Trade by 2025

New Research by the World Economic Forum and The Boston Consulting Group Provides a Roadmap for Revolutionizing Global Mobility

LEIPZIG, GERMANY -- (Marketwired) -- 05/20/14 -- Over the next decade, four innovations largely based on existing technologies promise to improve the efficiency, speed, and comfort of travel, transportation, tourism, and trade, according to a new report by the World Economic Forum, produced in collaboration with The Boston Consulting Group. The report, Connected World: Hyperconnected Travel and Transportation in Action, is being released today at the Annual Summit of the International Transport Forum in Leipzig.

Based on WEF's Connected World project -- a three-year research initiative involving senior leaders from more than 50 companies from the travel, transportation, and information and communications technology sectors -- the report analyzes four innovations that have strong potential to provide dual benefits to businesses and society. Further, it identifies existing technologies that can help actuate each innovation and presents potential operating models, recommendations for governance structures, and challenges for implementation.

The four innovations are the following:

  • An automated check-in, security, border control, and "smart" visa system to ease international traveling difficulties while ensuring high levels of security and traveler privacy. This system harnesses technologies such as biometric-identification scanners and electronic visa procedures to improve efficiency and security. The potential benefits of this system are clear. The report cites statistics that show that improving visa processes in the G-20 could generate an estimated additional $40 billion to $200 billion in tourism receipts in four years, resulting in as many as 5 million new jobs. For airport security, the impact of a more efficient baggage-screening system could potentially reduce the personnel costs of the U.S. Transportation Security Administration by almost $500 million over the next five years, according to the report.

  • A condition-based megacity traffic-management system using real-time data collection and analytics to steer or redirect traffic, provide smart-parking capabilities for inner cities, manage public-transportation capacity, and handle congestion and traffic emergencies using dynamic tolling and access restrictions. Individuals would be able to circulate and transport goods efficiently and securely through the megacities of the future. Based on a cost-benefit analysis by WEF and BCG, implementing a comprehensive intelligent-transportation system for a megacity of 10 million would result in a net present value savings of $2 billion to $10 billion, depending on the technology and scope of the system.

  • An integrated, proactive, intermodal travel assistant (IPITA) system to select, book, and navigate different modes of travel customized to individual needs, using real-time information and advanced technology. Easy to steer, the tool would use smart devices or other interfaces such as data glasses or contact lenses as displays. The system would detect any changes or disruptions, such as congestion or weather problems, and suggest alternative modes of travel or rerouting in real time. This innovation would help reduce delays that can be costly to individuals -- and that add up to large amounts at the aggregate level. In the U.S., as much as $20 billion in economic activity could be squandered by 2020 because of delays and cancellations at just 12 major airports, according to the report.

  • A transparency and traceability optimizer for logistics to streamline cumbersome logistics and customs processes. This system would leverage existing technologies to facilitate greater flow of information among companies and between companies and governments, allowing goods to flow more swiftly, less expensively, and more reliably than they have in the past. In addition, this wide-ranging system would not only optimize inventories but also track emissions, leading to a reduction in the environmental impact of producing and shipping goods. Again, the impact of this innovation can be profound; reducing barriers within the global supply chain could increase worldwide economic activity by almost 5 percent and total trade volume by 15 percent, according to a study cited in the report.

"The benefits of these solutions are profound -- from both an economic and a societal vantage," said Antonella Mei-Pochtler, a BCG senior partner and codirector of the Connected World project. "We have analyzed and demonstrated their impact; now we have to begin to work together with private and public stakeholders in implementing them, first as pilots and then scaling those pilots to full operation."

"In years ahead, solutions like IPITA, with real-time updates, customized recommendations, and end-to-end ticketing will become game changers for travelers. There's a great opportunity for the private sector and public agencies to work together to make this a widespread reality," said Margo Georgiadis, president of operations at Google.

Because the technology needed to drive these innovations largely exists, successful implementation hinges on surmounting institutional barriers and forging cooperation between companies and the public sector. In addition, other hurdles persist: each innovation will need to incorporate processes and systems to ensure privacy and resilience against cyber attacks, among other issues. WEF, however, believes that corporate and government leaders working in concert can address those challenges.

In its final year, the Connected World project will focus on building policy dialogue to bring together key stakeholders to accelerate implementation -- which could prove to be a major driver of innovation and make travel, transportation, tourism, and trade more efficient, comfortable, and sustainable by 2025.

"There is great potential in all these solutions to improve the way people and goods move across the globe and within cities," said Nikolaus Lang, a BCG senior partner. "To realize that potential, the relevant stakeholders need to come around the table to work together and bring these solutions to life."

The Connected World project and report form part of WEF's Hyperconnectivity Initiative, which aims to provide insight into how the increasing prevalence and speed of connections around the globe will have an impact on issues such as security, cyber crime, and privacy.

A copy of the report and video clips illustrating the innovations and scenarios are available on the Connected World home page and on bcgperspectives.com.

To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or [email protected].

About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 81 offices in 45 countries. For more information, please visit bcg.com.

About bcgperspectives.com
Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content -- including videos, podcasts, commentaries, and reports -- can be accessed by PC, mobile, iPad, Facebook, Twitter and LinkedIn.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SaaS companies can greatly expand revenue potential by pushing beyond their own borders. The challenge is how to do this without degrading service quality. In his session at 18th Cloud Expo, Adam Rogers, Managing Director at Anexia, discussed how IaaS providers with a global presence and both virtual and dedicated infrastructure can help companies expand their service footprint with low “go-to-market” costs.