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#DIGITALSNCF

Yves TYRODE,

Chief Digital Officer SNCF

27 January 2016

DB Symposium

NEW CHALLENGES NEW RESPONSES

PRESENTATION OUTLINES

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1. SNCF HIGHLIGHTS

2. DIGITAL TRANSFORMATION FRAMEWORK

3. EXAMPLES AND BENCHMARKS

4. SNCF DIGITAL ORGANISATION

01. SNCF HIGHLIGHTS

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SNCF : A WORD BENCHMARK FOR MULTIMODAL TRANSPORT SOLUTIONS

250 000 EMPLOYEES

27,2

BN REVENUE 120 COUNTRIES

25% OF TOTAL REVENUE

FROM INTERNATIONAL

MARKETS

2,4 BN EBITDA 10 MILLION PASSENGERS / DAY

KEY FIGURES AT YEAR END 2014

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KEY FIGURES AT YEAR END 2014

4,2 BN € SALES VOLUME VOYAGES-SNCF.COM

N°1

E.COMMERCE SITE

10 million UNIQUE VISITORS TO OUR WEBSITES EVERY MONTH 78 million

TICKETS SOLD ON-LINE

20 million SNCF APPS DOWNLOADED

A BACKGROUND IN ECOMMERCE

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02. DIGITAL TRANSFORMATION

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DIGITAL ISN’T MAKING SOMETHING NEW OUT OF SOMETHING OLD!

BUT IT IS ABOUT DOING MORE WITH NEW TOOLS AND NEW METHODS

DIGITAL, A DEEP TRANSFORMATION SHIFT FOR THE INDUSTRY

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Usages 1

Technologies

2

Business

models

4

Working

methods

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4 DIMENSIONS FOR THE DIGITAL TRANSFORMATION

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Feedback and

comparison Security gates

automation

Passengers flows

anticipation

...

...

e-commerce on-line plan, book, ticket

e-ticket Real time info

and itineraries

Share

e-hailing

RAPIDLY GROWING DIGITAL USES IN MOBILITY

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NEW WORKING METHODS

Wider cooperation

Real time

performance

Continuous

amelioration

• Work collaboratively and remotely

• Create communities with start -up

• Feedback and customer focused

• Visualization of flows (population, output ... )

• Supervision , incident management

• Anticipation maintenance

• Trial and error logic

• Encrypted monitoring, indicators

• Scaling

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TRANFORMATION OF THE EXISTING

Multiple performance impacts enabled by digital

• Productivity increase on existing tasks,

performance increase thanks to new uses

• Simplification of tasks, real time data, focus on

key tasks on field, document access in mobility

etc.

• Improve customer experience thanks to

implementation of new services

Increased productivity

Lowered costs

NEW BUSINESS MODELS

Incoming players and uses

• Share economy

• Data’s value chain

• Autonomous driving

New incomes

New customers

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TWO KINDS OF BUSINESS MODELS

MULTIPLE PERFORMANCE IMPACTS ENABLED BY DIGITAL

PROVED RESULTS IN DIFFERENT INDUSTRIES

Management

Simplification of tasks, real

time data, focus on key

tasks on field

Industrial

Productivity increase on

existing tasks, performance

increase thanks to new uses

Client

experience

Improve client experience

thanks to implementation

of new services

Outlook towards new

business horizon in a

defensive or offensive

logic

Creation of

new Business

Models

Transformation of the existing

Quality &

security

Increase security thanks to

anticipation of incidents,

document access in

mobility etc.

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03. EXAMPLES AND BENCHMARKS

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Monitoring Stations

PERFORMANCE ENABLED BY INDUSTRIAL INTERNET

1

2

3

4

Collecting Data

from sensors

Analysis and models

Integrating in

working processes

Monitoring

Infrastructures

Maintenance

Monitoring

buildings

Factory of Future

Freight

BigData Mintenance

(predictive

maintenance)

Documentation

Modernizing systems that

monitor critical assets

BigData Infrastructure

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IMPROVED MAINTENANCE AND REDUCED COSTS USING INTERNET OF THINGS

Rolls Royce has a predictive

maintenance system for its

engines

• When a default is detected,

engineers are alerted and analyze

data

• A solution is proposed

• An intervention is launched if

necessary

Performance history tracking

Verification time reduced

from 45 to 15 minutes

« Connected wagons"

• $ 30 million estimated

• 140 million kilometers in 1

year

Plan d'action défini Pilote et retour sur investissement validé Déploiement en cours Déploiement finalisé Légende :

advancement

Security Engine

Number of outages for

customers

Maintenance costs 15

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46,000 sensors on trucks

Real time knowledge of the

data (GPS , speed, brake

wear , ...)

• Data analysis to determine

• Truck performance and

conduct necessary

adjustments

• The optimal use of the fleet

Automation of

cargos’convoys brakes

Sensors installed at the braking

systems

Access to real-time diagnostic

agent for the locomotive

American Society of production

and distribution of energy

• Installation of 25,000 sensors

and deployment of remote

diagnosis until 2016

• Failures ( whose cost is 40

million / year)

Using imagery to estimate the

associated risks

To falling trees

Clashes with animals

Number of affected trains

(on average 53 000 / year)

Lost minutes (average

potential of 1 million min)

ANTICIPATE RISKS AND FAILURES ON THE NETWORK WITH THE INTERNET OF THINGS AND BIG DATA

SURCA Vegetation

Installation of accelerometers to

detect defects in real time

Anomalies or breach of catenary

Accelerometers installed on

pantographs

• Ruptures of catenary

( € 500,000 / incident )

Avancement Avancement

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Wifi in planes

Payants

Gratuits

AERIEN ET ROUTIER

Wifi in coaches

BROADBAND ACCESS AS A BASIC EXPECTATION

3G/4G coverage provided by telecom

operators : a prerequisite to

broadband internet access • New 700MHz licences include the

obligation to cover the railways,

especially for mass transit by 2020-22

• Deployment costs for telcos around

hundreds of M€

• Co-operation and mutualisation in

tunnels and rural areas

As a complement, WIFI in high

speed trains TGV • Technical requirement linked to the

speed

Target 90% of travelers by 2020

RAIL

En 2016 free Wifi in 89 Trains AVE

and 20 stations

Wifi on ICE

and free in 'First class'

In 2015, 3G/4G

coverage for 75% of traverlers

100% in 2017

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PLAN, BOOK, TICKET ON-LINE EXPERIENCE

On-line accomodation booking

• 950 000 bookings a day over the

world

• Ranking and comments

• 10 to 30% sales commissions

• 50 Bn $ gross booking in 2014

• 65 Bn $ market value (Priceline)

On-line travel agency

• Plane tickets for 400 companies

• Diversification with full packages

: hotels, car rentals, cruises...

• 10 to 30% sales commissions

• 50,5 Bn $ gross booking in

2014

• 16 Bn $ market value

Nb1 French e-commerce website

• Founded in 2000

• Train tickets first

• Diversification with travel

services, hotel, cars, plane

tickets and entertainment, etc.

• 2-3% sales commissions

• 4,2 Bn € sales volume in 2014

Source: Médiamétrie et la FEvad – baromètre janvier mars 2015, Presse, site corporate DIGITAL SNCF

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OPEN DATA AND OPEN INNOVATION

• 66 open data sets & 2 APIs

• 15 million calls each month on APIs

• Over 1 900 startups connected

• SNCF Digital Venture with 30 million

euros over 3 years

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04. SNCF DIGITAL ORGANISATION

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#DIGITALSNCF : A 18 MONTHS-PLAN TO ACCELERATE DIGITALISATION

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To be defined

Basics

Industrial internet

Digital for everybody

Impacts of

transformation

1st season

3rd season

2nd season

FIRST SEASONS : TRANSFORMING THE EXISTING

Management Industrial Customer

experience Security & quality

Mail for

everybody

Nomade

DSMAT

Net.SNCF

Flux.SNCF Quotidien.SNCF

Sais

on

1

Sais

on

2

Digitalisation documentation

technique

FRET – connected wagon Remote diagnostics

Factory of the Future

Big Data Material Stations :

Failure Prevention System

Remote reading consumption

Demeter Exocet

Transforming the existing

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Monitoring catenary

Employees devices

collaborative tools

A DYNAMIC OF ONGOING TRANSFORMATION

A NEW ORGANIZATIONAL MOMENTUM

CATALYSTS READY TO BE

INDUSTRIALIZED

Big Data.Fab Open Inno.Fab

Design.Fab

Execution

&

expertise

574,

Communities

Digital

Ventures

Opening

STORE.SNCF

Open Inno

(dont Open Data) API

Cooperation

IoT.Fab

Thirty projects supported by the

Fabs

• A new organization for Digital

• 27 digital champions appointed within

business departments

• 6000 members in the Digital

Community

• + 1900 startups / companies

connected to the platform Open Data

• Dynamism and interest felt by

employees ( Barometer )

Agile Fab

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THANK YOU

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