For Office Use:

Grade

MANAGEMENT INFORMATION SYSTEM

Group Assignment 2
on
‘BIG DATA ANALYTICS IN TRANSPORTATION
INDUSTRY ’
Submitted to:
Prof. Balakrishnan Unny
Submitted by: Group-5
Darshil Shah 171210
Meet Shah 171226
Saloni Agarwal 171243
Tanya Sinha 171256
Section: B
Batch: MBA-FT (2017-19)
Institute of Management, Nirma University
Date of Submission: 12/12/2017
 Analytics in Transportation Industry

TABLE OF CONTENT

Topic Page No.

1. Introduction 2
2. Data Analytics in Road Transportation 4
3. Data Analytics in Airline Industry 7
4. Data Analytics in Shipping Industry 9
5. Complexity in using Big Data 12
6. Conclusion 13
7. References 14

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 Analytics in Transportation Industry

INTRODUCTION

The data generated today are striking: Today, mankind has discovered as much data as
possible from the "dawn of civilization" to the beginning of the new millennium in mankind
within 48 hours. These data have been collected by different organizations of different users
and used for different purposes. Not only are these data widely available, but our ability to
analyze these data is also vastly improved.

The term ‘Big Data’ is essentially a large amount of data stored at one place which is referred
as ‘Data Warehouse’. Any data of the label content, the organizations are beginning to
explore and understand the data in new ways and also to help in the business development. In
the case of Big Data Case "Analytics: The Real Use of Big Data" showed that nearly 2/3rd of
responses from the customers said using information’s which are very competitive for the
business environment and its growth. Moreover, in solving the solutions to the long-term
business challenges and its growth, big data inspires unique ways to change the processes
within and with the organization, and the industry as a whole.

Companies in multiple road and transportation industries like airports Freight Transportation
and the railways, hotels & other companies, are processing large amounts of data. However,
in recent trends and connected world, a big amount of data from the system can be gathered
from any type of system or event, most of which is non-standard data such as sensor
generated data which are not suitable for the traditional system of relational data storage
warehouse.

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(Figure 1)

Moreover, adding to recent state-of-the-art analytical technology and technologies enable

organizations to extract insights from earlier ungather levels of complexity, speed, and
accuracy. Data has now become a strategic and competitive asset. In this new era, capturing
real-time structured and unstructured data from a multitude of sources at an unparalled
quantity can make it hard to determine what data is most valuable (see Figure 1).

Analytical tools are useful in helping in transportation companies to tap and optimize data to
find out what information is important to optimize business results. Today, big data has the
capability to integrate the previous and new data sources without adding costs associated with
traditional data environments. Big data analytics can also capture and integrate time-sensitive
data from many different sources (such as instrumentation) faster.

In various industries, big data caused a huge sensation, tourism and transport industry is no
exception. In fact, the chief executive of the travel and transportation industry cited
"information explosion" as a major driver of organizational change. The aim of big data is to
minimize the cost of increasing volume of data, speed, and various kinds of data drew many
IT professionals. However, despite the plethora of discussions about big data capabilities,
many people want to know beyond the hype. Here we show how big data solutions can get
the business outputs, enabling the transportation companies to surpass the hype of big data
and make huge gains.

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 Analytics in Transportation Industry

BIG DATA ANALYTICS IN ROAD TRANSPORTATION

Big data analytics provides new insights into the many transport challenges that arise when
leveraging large data sets. Instead of collecting data, the main issue today is to process the
data to take the positive outlook of the information it has. The new technology has shown
real-time data analysis and the results to provide instant outputs to transport problems. A
better research on the data can help the transportation industry know the commuter
perception in fact, the large benefit of using big data may come from changes in user
behaviour. For example, Singapore analyses real-time local traffic data and the information to
determine road pricing. This provides the driver with an opportunity to avoid driving during
the most crowded times and to use of the road network which is optimum. The world is
becoming more interconnected and intelligent. However, the complete benefits of
connectivity are implemented only if the vehicle is also connected to the system which is
GPS and updated according to the system. Big data offers new ways to gather information
about traffic infrastructure from passenger and vehicle movement and allows for a passive
approach to aggressive crowd sourcing through innovative traffic solutions. For example,
some GPS systems enable users to notify others of an accident on the road. This information
is transmitted in real time to the network operator and can respond quickly to interruptions.
Another example of marsh data analysis is the US Xpress, which installs nearly one thousand
sensors on single truck to observe the truck's driving position, driving speed, driving distance,
maintenance time and even the ability of the driver. But the smarter transportation industry
has more opportunities than just saving fuel:

➢ Optimize freight movement and route

The consolidation of freight forwarding and the optimization of freight movements in large-
scale logistics make it possible to deliver the area on that day. Knowing which type of
products are situated in what place gives better speed to locate the product and quick delivery
in just 24 hours or even the same day. This is implemented by Amazon. Removing the supply
chain and its unnecessary translation levels in between will help the product to ensure
efficient and smart shipping of the goods.

In real time Data analytics tracking of sensors present in the trucks, boats and the planes can
be determined with the help of satellite navigations. Trucks, airplanes or vessels need to
follow the routes that can may be populated with a large amount of public data such as traffic

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condition, road blockages, the delivery of the containers, Petrol pumps and the restaurants
available on the route. Whenever the address of the delivery changes from head office, it can
be updated in real time to the driver. The system automatically calculates and optimizes the
ideal and cheapest new route to your new destination.

Sensors available or install in trucks, ships or aeroplanes can also provide real-time
information about truck, ship or aircraft operation, speed, uptime, rest time, and more. Data
and the sensors that monitor the condition of the engine and tools which can predict errors
and can be maintained without losing much amount of time. Maintenance can be
automatically booked even where the shipping company needs the least amount of downtime,
and engineers know immediately what the problem is and how to fix the problem.

Large logistics companies can have many trucks present in their possession. Companies may
lose a lot of money if their use is not optimized. With sensor data, you can know all the
trucks at any moment, their stock and destinations. This information can help transport
companies optimize fleets, increase efficiency and reduce reliance on freight forwarders or
bank loans.

➢ Identify inventory

The stock being shipped remains a part of the organization's inventory, even though it
actually leaves a warehouse. It is important to keep an eye on the exact stock situation,
especially if you need to make the last minute changes. When all products include sensors
they can be very easy to track, adjust and / or inventory in real time. Inventory analysis is
used to create a single and central platform, provide the organization with a detailed overview
of departure and arrival times, and the possibility of order reduction as shipping details to the
customer.

➢ Improve end-to-end customer experience

The customer needs to know what is the exact position of their products which they have
ordered and the estimated time of the delivery. With a good shipping controls, freight
forwarding and customers have access to the data and the information tools to decide for
them the best route to deliver the product with taking into account cost, time and convenient.
A product can use various modes of transport, and in the ITS, customers can analyse the

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cargo will travel from one place to another. This will allow customers to manage their chain
of supply in the product delivery and costs associated to it.

➢ Minimize the impact on the environment and increase safety

Fuel utilization can be eliminated in a few ways. To begin with, sensors can screen the engine
and advance fuel input in view of the requirements of the motor and what the truck, ship or
flying machine are doing. Consolidating the best courses that consider climate conditions,
driving conduct, street conditions, area, and so on can spare a ton of fuel.

The sensor can likewise screen where the driver is driving and whether the driver takes after
the street rules. It can be observed if the driver is too long in the driver's seat or if the
intrusion time is too long. It keeps the driver alert and in this manner, averts mishaps while
keeping the drive responsible.

An ever-increasing number of urban communities on the world are trying different things
with transportation systems to eliminate the pollutions. Brisbane City has built up an entire,
continuous diagram of urban transport systems, giving a stage to creating and testing new
techniques in a steady and constant virtual condition. This stage empowers urban areas to
expect and enhance activity clog, in this manner making travellers and shippers more joyful
while diminishing discharges. They likewise utilize speed breaking points and street lining
administration calculations to enhance street wellbeing. As clients progressively request to
deliver their products as quick as possible, transportation organizations are looked with the
test of having the capacity to tackle with enormous information.

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 Analytics in Transportation Industry

BIG DATA ANALYTICS IN AIRLINE INDUSTRY

The aviation industry is a very active industry with a strong emphasis on day-to-day
operations. In these operations, companies need to make a variety of decisions. From the
aviation hub positioning and hub / base aircraft number, flight network design, fleet
management, cost structure, demand forecasting and other aspects. Analysis and then came to
the picture. Analysis plays an important role in improving these decisions using a variety of
quantitative models. The information data helps to provide all the necessary data and quickly
analyse to get a feasible solution to each problem. The management of this can successfully
play an important role.

➢ On the luggage conveyor

One area visible to big data technology handles the client’s luggage. The airline industry has
spent millions of dollars on luggage tracking for years. That's one of the core of the customer,
behind the scenes. Millions of bags are checked every year and each customer has a boarding
experience after checking packages and wondering if there is any. By using big data, hand
luggage scanners can be used for passenger check-in and all tracking data will be available,
which will also benefit the customer. He is the 1st airline to launch applications, allowing
clients to track their luggage from their mobile devices. Free apps have been downloaded
over 11 million times across iOS, Google Android, Blackberry and Windows Phone mobile
operating systems.

➢ Conceptual model of aviation industry demand forecasting and service orientation

Forecasting the needs of the airline industry may be crucial to the company's viability. There
are many ways to calculate the total passenger demand. Demand forecasting helps to estimate
revenue and thus becomes a key factor in managing the company's operations. Many factors
affect the demand for flights. The economic status of the area, the type of income generated
by industry and its generation, the best time for passengers, the frequency of passengers, and
the average fare per flight. The model predicts passenger demand based on regional revenue
levels. It examines per capita income for each age group in a particular area based on past
data and current context. The present data and the information will be used to predict demand
based on past data on the number of frequency of flights in a day. This can be useful for
minimizing the cost of the aircraft and maximize the revenues.

➢ Optimize on demand aircraft plan for some aircraft operators

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Some aircraft manufacturing companies (FMC) provide a fraction of the cost of flight
comfort. They provide fully satisfactory services by leasing air bases and aircraft leased from
fleet management to on-time lift management of the aircraft. They also provide the end of the
flight to meet the demand. It can be as short as 4 hours. The cost of take-off is too high, as the
positioning of the flights is paid by FMC. They need to manage flight frequency based on the
passenger's forecast needs. They need to optimize flight allocation to reduce overhead costs.
FMC uses all the smart decision support tools to make all these decisions.

➢ Algorithm for processing runway operation under limited position transformation

The arrival(s) and departure(s) of aircraft(s) in areas with maximum levels of air traffic is
crucial to the company. Mostly are on the first come, first served is for landing. During the
departure period, the flight must wait for a period of time to quell the whirlpool caused by the
earlier flight. However, when the flight landed, most of them lacked fuel and therefore
needed instant attention. CPS analysis is used to take these types of decisions. This eliminates
the risk of conflict between flights and computes the total delay for all flights. Therefore, the
total cost can be calculated and improved.

➢ Aviation network design

The airline company shows daily decisions. The most crucial decision is related to aircraft's
network design. Plane scheduling, flight modes, cities included, frequency of the same flight,
departure time on arrival, and costs associated with each flight. In order to maximize the
profits each of the airline company has to design its own network design. There are 2 main
types of aviation industry

• A direct method
• Hub and Spoke methods

Historical data, such as demand rate, passenger frequency, flight demand, etc., are used to
derive solutions. According to the network design, companies can forecast flight costs and
price passengers. The network design of the airline plays the biggest part in the company's
success because it is the company's first step.

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 Analytics in Transportation Industry

BIG DATA ANALYTICS IN SHIPPING INDUSTRY

Shipping is a strictly regulated industry, accounting for about 3% of global carbon emissions.
Global trade is highly dependent on shipping, covering about 90% of business needs. Now
the industry is experiencing twists and turns in different situations such as upcoming
regulations, climate change, energy shortages and technological revolution. Due to the rapid
development of sensor technology, information technology, automation and robotics,
technological developments in all the maritime sectors are obvious. In order to adapt to the
coming regulatory and market pressures, the industry must continue to grow rapidly in the
next decade. Ship intelligence will be shaping the future of the industry. Ships usually during
its run generates a large amount of data during the run and which is collected from many
different sources. So big data has become a hot topic in today's industry. Big data analysis
finds the correlation between different measurable or non-measurable parameters to
determine hidden patterns and trends. This analysis will give a great impact on ship
performance monitoring and provide ship operators with how the ship(s) performance
forecasts, decision support. Big data will also bring new opportunities and challenges to the
maritime industry. It will improve performance monitoring capabilities, eliminate human
error and increase dependencies between components. However, the industry will have to
face many challenges such as data processing, reliability and data security. Many regulations
rely on the ship's data, including the new EU MRV (Monitoring, Reporting and Verification)
regulations to quantify the CO2 emissions of ships above 5,000 GT. As a result, shipbuilders
will have to monitor and report CO2 emissions from round-trip vessels between EU ports and
request information on energy efficiency parameters. Few areas in the shipping industry
where bid data can bring changes are:

➢ Remote Sensing:

Continuous monitoring of the ship's cab from remote locations. Data will be collected
autonomously using a remote sensor network. The shipping industry will need a powerful
wireless network with high transmission capacity. Real-time sensor data can be passed to the
database and distributed to interested parties giving them up-to-date information about what's
happening on board.

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➢ Voyage Planning:

Ship operators or charter flights can conduct voyage planning after analyzing routes, vessel
performance and meteorological data. The sailing plan will be based on the performance of
the ship on the same route and on different routes. The sailing plan will require reliable
forecasts of wind and ocean current data. Data analysis will help determine the most efficient
route, accurately estimate the arrival time, and plan alternative routes to avoid any delays or
disturbances.

➢ Intelligent Traffic Management:

Port authorities have access to the ship's data to ensure safety. Intelligent traffic management
systems can be developed as data-oriented applications in the shipping industry. The ship's
current position and the information associated will be transferred to the port and the port
authorities will be able to observe the traffic across the route of travel and improve the freight
handling strategies with its performance.

➢ Operational predictability:

Ship operational performance can be monitored by analyzing ship data in real time. Ship
operators will be able to predict ship performance based on current operating conditions. This
predictability will help maintain the decision.

➢ Energy Management:

Shipping is moving towards a flexible alternative energy system. Energy production, storage
and reuse will be part of the energy management system; in fact, battery-operated vessels
have been introduced in the industry. Ship energy management systems can run on real-time
data based on load requirements and availability of electricity from a variety of sources. The
system will distribute and balance shipboard electricity.

➢ Performance Monitoring and Optimization:

Automation extends the ability of machinery and ships to optimize control. Monitoring ship
performance and optimizing performance requires a series of data measurements. Getting
historical data is crucial to optimization and forecasting. Ship optimization and efficiency can
be measured by a combination of onboard data and historical data at the current operating
state.

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➢ Ship safety and security:

The use of wireless sensors and a wide range of satellite communications systems will
increase the safety of ships. Sensor data analysis will provide information about vessel
manoeuvres to avoid collisions. The built-in sensors in the machine will provide real-time
information about their current condition; this information is useful for crew safety. Adopting
innovative technologies will increase the safety and security of ships.

➢ Condition Monitoring:

This will be improved by analyzing the asset data. This applies to machinery such as engines,
pumps, boilers and compressors. The sensor will help monitor the machine and warn of
maintenance needs in advance. It will determine the mechanical status during operation and
record the data.

➢ Predictive Maintenance System:

This will detect the need for maintenance to avoid potential failures. Potential failures will be
detectable and measurable. The system will log all the data and indicate the risk of failure by
synchronizing related data (e.g. engine data, fuel consumption, uptime, etc.). This will reduce
the cost of asset failures and minimize unplanned downtime. The system relies on machine
health monitoring to indicate when maintenance is required prior to the failure so crew
members do not have to spend extra time on maintenance and scheduling activities.

➢ Automatic mode detection system:

The system automatically detects the ship's operating mode based on sensor data. With the
automatic mode detection system, the crew does not need to update the mode each time the
vessel changes operating conditions. By analyzing real-time data on fuel consumption,
driving distance and speed, an overview of the ship's operation will be created. The
automated mode detection system will operate without human intervention and will provide
single engine fuel consumption, hours of ship operation and different modes of emission
summary reports. Shipboard and shoreline staff will be able to use this information to
measure the ship's operational performance and KPIs. The system will assist ship operators in
meeting EU MRV regulations by monitoring fuel consumption and emissions from different
ship modes.

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COMPLEXITY IN USING BIG DATA

Due to the complex and long intermediaries in supply chain, use of big data in transportation
is even more challenging. The concept of a single window has not really worked out yet,
although the benefits of a coordinated flow of goods by using the available the data is
evident. Data privacy and Data Ownership are mutually independent and may create a
controversy. Several information about the transport users, their stakeholders, information
about their competitors, their customer base and business entities can be found out. If the data
collected creates value for the user as well as the people involved then everyone would share
data and there might it be any privacy issues. Ownership issues will become secondary if it
can be demonstrated that using the data creates value for the user and that the user has access
to the data. However, a systematic function is still necessary and government’s role is crucial.
However, from a technological development perspective, legislation is often outdated.
Therefore, the legislation should focus on regulating principles rather than specific
provisions.

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CONCLUSION

Data analytics are not just limited to data sourcing and interpretation or in other words Sand
Boxing. Nowadays the service providers are using the technology to improve their efficiency
by adding value to the organisation. The growth of the organisation is dependent on how
rapidly the data is used to make wise decisions. IT professionals too are taking advantage of
low management cost and various options available through big data such as “Data
Warehousing”. Transportation companies can use Big Data to check the demand and supply,
peak season, and consumer behaviour.

Further-more Big Data is advantageous in following ways:

• It helps in improving customer experiences

• It increases revenue by enhancing services
• Durable and Malleable services can be provided
• It gives the opportunity to utilize the assets and maximize its availability
• It eventually improves operational efficiency

It is also believed that the organisation that pays more attention towards using big data and
analytics to help drive their marketing, sales, and operations improvement gain a competitive
advantage.

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