TECHNOLOGY TRANSFORMING TRANSPORTATION

Lighted city street

Artificial Intelligence (AI), Internet-of-Things (IoT) and low latency 5G network connectivity are paving the way for a host of opportunities to transform the transportation industry. These are technologies that facilitate vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I) and vehicle to everything (V2X) communications, enabling both computer assisted driving and autonomous vehicles, both of which promise to make driving safer and more efficient.1

Safer because road hazards, traffic, environmental conditions and even the actions and future actions of other vehicles on the road can be communicated to drivers or directly to on-board driving equipment, allowing appropriate adjustments to be made in terms of speed and positioning.2 Vehicles that are aware of where they’re going, where the vehicles around them may be headed, when vehicles around them may change course, when traffic conditions may require adjustment to the route, when traffic signals are going to change, that there’s a stopped car around the corner, or a pedestrian who’s stepped out into the street complement existing LiDAR, camera and radar technology already being employed to assist drivers.3   

More efficient because interconnected traffic will flow better, will allow people to use their commute times more productively and will be more fuel efficient. Further the vehicles will be more capable of predictive maintenance so fewer automobiles will be subject to unexpected failure on the roads and the same sensors that assist with maintenance can help tune performance, similar to how these same technologies are helping with the fuel efficiency of air traffic.

Car culture, particularly in the US is an impediment to uptake of the technology, but car and ridesharing have already made small inroads into changing cultural attitudes toward car ownership, and driver assistance is helping make the idea of self-driving vehicles more palatable to drivers. These technologies aren’t limited to personal transport either, commercial and public transport can leverage these same technologies to improve service delivery, safety and efficiency.


1 Hoeben, R. (2018, August 22). V2X is Here to Stay—Now Let’s Use It for Autonomous Cars. Retrieved from Electronic Design: https://www.electronicdesign.com/automotive/v2x-here-stay-now-let-s-use-it-autonomous-cars

2 Healey, J. (2013, April). If cars could talk, accidents might be avoidable. Retrieved April 25, 2019, from TED: https://www.ted.com/talks/jennifer_healey_if_cars_could_talk_accidents_might_be_avoidable

3 Fourtané, S. (2018, November 16). Connected Vehicles in Smart Cities: The Future of Transportation. Retrieved May 1, 2019, from Interesting Engineering: https://interestingengineering.com/connected-vehicles-in-smart-cities-the-future-of-transportation

IOT: EMPOWERMENT THROUGH CONNECTIVITY

IoT - Internet of Things

“Internet of Things”, if Kevin Ashton had it to do over again, he might choose a more descriptive name. It’s a vague, amorphous term that doesn’t do much to demystify a network of products equipped with embedded sensors, on-board processors and some means of communicating the data they collect with the user and or manufacturer of the product, a central system or similarly enabled products.[1] The possibilities these connected products herald correlate directly with their ability to collect and transmit data about the product, the product’s operating environment, product usage and the customer. The data facilitate a number of interesting business models the most promising of which include subscription, custom products on demand and IoT data monetisation.2

The subscription model is currently being used successfully organisations like Rolls Royce Engines with their High-Flying Platform-as-a-Service and Google Nest with their Learning Thermostat. Under this model customers pay a fee for some type of ongoing service associated with the product: typically, some form of monitoring as a service, or predictive maintenance as is the case with the Rolls Royce Engines.[3] This model allows an organisation to build ongoing relationships with their customers while collecting data about their product usage that allows for mutually beneficial future upgrades.

Custom products on demand is a service used in combination with additive manufacturing wherein product customisation and personalisation is facilitated by machine vision and other IoT sensors capturing measurement or other data and generating specs. MTailor, BMW and STYR Labs all leverage this model to provide personalised products to their customers.[4] 

Finally, IoT data monetisation is essentially selling the data you collect onto a third party. Insurance companies for instance might purchase data from a car manufacturer to give them insight into driving patterns.[5]

While the business models are promising, the technology still has some issues. Currently there’s little or no standarisation in the industry which makes the technology difficult to scale. [6] There’ve even been circumstances where manufacturers have only found out after product launch that the chipsets in their embedded sensors were incompatible and their products couldn’t communicate with one another. There are also issues with a lack of suitable expertise in the industry, the complex nature of most IoT projects and the data transmission requirements and the capacity of current networks, though that particular issue should be addressed by the rollout of 5G connectivity later in the year. Still IoT is an exciting technology and opportunities abound for entrepreneurs with a vision and a plan.


[1] Porter, M E & Heppelmann, J 2014, ‘How smart, connected products are transforming competition’, Harvard Business Review, November, pp. 1–23.

[2] Elizalde, D. (n.d.). IoT Strategy for Product Teams: 7 IoT Business Models That Are Transforming Industries. Retrieved 04 30, 2019, from Daniel Elizalde: https://danielelizalde.com/monetize-your-iot-product/

[3] Forbes Insights Team. (2018, June 27). How IoT Is Spawning Better Business Models. Retrieved from Forbes: https://www.forbes.com/sites/insights-inteliot/2018/06/27/how-iot-is-spawning-better-business-models/#6808d8c15984

[4] Ibid.

[5] Elizalde, D. (n.d.).

[6] Travers, J. (2018, November 14). IoT as a Service: A new business model? Retrieved 04 20, 2019, from Ericsson: https://www.ericsson.com/en/blog/2018/11/iot-as-a-service-a-new-business-model