Operating Challenges and Solutions APTA Fare Collection Workshop & TransITech Conference

1. Operating Challenges and Solutions APTA Fare Collection Workshop & TransITech Conference Ian Davidson 19 March 2013

2. Operating challenges context Customer payment choice (closed, open, mobile payments) Multi-vendor supplier framework Integrating customer choice in payments in a multi-supplier framework

3. Business and Solution Ecosystem • The transit agency operating ecosystem requires solutions which strategically fit within a multi-channel and multi-media ecosystem of business services, partnerships and transportation applications Customers Call Center / Help Desk Service Providers Operations Legacy Fare Management Self-Service Social Nets Mobile Media Point-of-Sale Phone / IVR Payment SmartCard Mail Web NFC Banking Channels Business Partner Subsystems Fare Management Subsystems Business Services Reporting Contactless Retail Integrated Security Operations Management Public/Private Partner Subsystems Multi-Mode Transportation Subsystems Pooling Transaction Processing Data Management Telco Rail Integration Layer External Business Systems Intelligent Transportation Subsystems Business Applications Back-end systems ParaTransit External Data Parking Scheduling Tolling

4. Choice and Flexibility in Fare Management Balancing multiple demands, transit agencies are looking to provide expanded choice and convenience to customers who have different needs and preferences • True mobility providing true choice • Integrated service delivery • Convenient customer experience • Progressive technology • Open and flexible system • New opportunities for revenue generation • Embedded information management capability • Operating efficiency

5. Enabling Transit Mobility Enabling a mobile strategy that supports the end-to-end customer journey Value added services Pay using mobile Phone (incl. NFC) Promotions Buy, order, reload Transit Mobility • Supporting the end-to-end customer journey Obtain discounts Social media Customer services (e.g. check status) Multi-mode transit Find services: journey planner Choice of products and services 5

6. The payments landscape is evolving with new entrants and incumbents vying with new and disruptive technology The combined effect of (a) lucrative profits (b) new technologies like bar-code, contactless, m-payments (c) access to more customer insights (d) customer retention opportunities, is attracting entrants with mobility expertise New Entrants Penetrating/Shaping Payment Supply Chain Pure Play m-payment Telcos Handset Mfg Payments Systems (m-wallets) Today Traditional Incumbents in Payment Supply Chain Purchasing Customer Merchant Acquirer Network Issuer Consumer Bank New technologies will broaden the payments competitive landscape and may increase the complexity of the supply chain as new entrants demand a “piece of the interchange pie” Form Factor User Experience Payment Type Pay Architecture Tomorrow?

7. A platform to manage operating challenges and support business outcomes Accenture’s Fare Management System (AFMS) leverages SOA to create a common platform that is used being used today to successfully integrate multiple device suppliers Self-Service Social Nets Mobile Point-of-Sale An innovative and flexible solution… Business Services Reporting Phone / IVR • Transportation and ticketing solution hub • Common back-office for integration, transaction, customer and financial management • Industry vertical based on Microsoft technology • Enhanced customer experiences and channels • Platform for large, multi-vendor system integration Mail Web Transaction Processing Data Management Card Manufacturers Call Center Integration Layer Banks Service Providers Acquirers … enabling a platform for smart mobility. NFC SmartCard OpenPayment • AFMS challenges conventional farecard industry “single vendor” proprietary systems • Abstraction layers providing open and flexible architecture and design • Delivers multiple payment types and openings for future innovations • Multi-vendor sourcing – multiple vendors and device types

8. Standards-based Services and Service Bus technologies are the foundation on which most of today’s integration solutions are built The primary building blocks of modern fare management solutions – CRM, finance, asset management, distributed device management – are readily available as flexible, proven services Evolution of messaging standards in different industries (e.g., HL7) has enabled large-scale adoption of SOA The integration problem is not new. SOA has become the de facto Architecture for Integration

9. Device Channels represent the mechanism for load and redemption activities and are no longer tightly-coupled to the central system Device agnostic Adaptors translate vendor-specific device interfaces into internal representation (e.g., card transactions) Adaptors convert AFMS common features into vendor-specific device formats (e.g., lists) Supports multi-vendor implementations SOA supports a multi-supplier sourcing strategy and customer payment choice Accenture Fare Management provides the common platform for fare processing, financial management and operations management Commercial back-office System Operations Operational back-office Service Bus • Fare Media Channels are specific to the payment types supported but “loosely coupled”, meaning the solution is independent of the fare media details, supporting • Smartcards and readers • Bank cards and pinpads or readers • Mobile payments and devices Fare Media Channels (e.g., Cards and Devices) Fare Media Channels (e.g., Cards and Devices) Fare Media Channels (e.g., Cards and Devices) Fare Media Channels (e.g., Cards and Devices)

10. Integration ArchitectureEnabling Multi-Vendor Solutions Accenture’s Fare Management System leverages SOA to create a common platform that is used being used today to successfully integrate multiple device suppliers • Separating • Transaction and financial processing from the details of device implementation • Messaging/transport technology from content • Distributed device management architecture from transactional events • Enables a common central system to integrate and manage transactions across a wide variety of device/vendor products

11. Metrolinx/PRESTO: Open architecture and multi-vendor supply framework • PRESTO is a regional automated fare collection system and shared service delivery model in the Greater Toronto Area and Ottawa region • To date installation of over 8000 in-field devices in vehicles and sites (to substantially increase with the addition of new transit agencies) • Common open architecture standard system PRESTO in Ottawa 400km S&B devices & subsystem integrated with Clever Devices and reading PRESTO/STO cards PRESTO Greater Toronto GTHA Devices AFMS Device Pilot Device hardware Vendor-agnostic embedded Accenture device software

12. Landmark trial of next-generation fare management payments technology One of North America’s first fully-functioning trials of a public transportation open payments system, with the capability to allow travellers to pay with a closed-loop smartcard, a credit card or mobile device • Provides travellers a choice of payment methods with a simple and flexible payment system • Conducted July-December 2012, the trial was limited to friends & family and processed over 100,000 transactions • Leveraged open and flexible back-office architecture (COTS and SOA) • Devices • Payment  industry hardware • Embedded device software from Accenture. Designed to work with any device vendor drives true device interoperability • Enables transit agencies to expand the range of retail device options that they can leverage

13. Thank-you Contact Details Jane Matsumoto – Sales Director, Accenture Software • jane.matsumoto@accenture.com • (310) 971-3394 John Vasilj – Business Development Director, Public Transport • john.vasilj@accenture.com • (312) 907-3604 Michael Wilson – Managing-Director, Public Transport • michael.j.wilson@accenture.com • (416) 312-7539 Ian Davidson – Accenture Public Transport • ian.davidson@accenture.com • (416) 641-3049