Aukland Transport Business Strategy and ICT Plan

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8th Feb 2020 Business Strategy Reference this

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Executive Summary

 This assignment mainly portrays about Auckland Transport (AT) and its current strategy. Apart from that the infrastructure and plan of Information Communication Technologies (ICT) is also explained in detail.

 All kind of transportation used by people in Auckland comes under AT and for this reason the changes and strategies planning to be implemented in this field is of utmost importance and people do look forward to it. A detailed analysis of AT is also included.

 The structured and detailed analysis included in this assignment will help the readers understand the management, structure and current business strategy more easily. The readers can get a detailed knowledge about the Auckland Transport (AT) which includes the organizational goals, structure, key business functions and so on.

 The proposed ICT organizational structure shows that technology is the key to the future of AT, where in the Director of ICT role is upgraded to the same as that of Chief Executive of AT.

 

1.  About Auckland Transport (AT)

Auckland Transport is a one among the six Council Controlled Organization (CCO) which is owned by Auckland Council. AT is providing all kinds of public transportation facilities with 57 Electric trains, 41 rail stations, 16 dedicated bus stations and 21 ferry facilities. It’s the guardian of New Zealand’s highest valued group of publicly held assets worth $19.1 billion. (Auckland Transport, 2018).

The organization combines the transport expertise and functions of the eight-former local and regional councils and the Auckland Regional Transport Authority (ARTA). The establishment of Auckland Transport marks the first time in Auckland’s history that all transport functions and operations for the city have come under one organization.

As a transport provider AT is rapidly developing to meet the growing challenges of how people in fast growing cities want to travel. AT’s sustainable and networked mode of transport is of high importance in shaping Auckland. Apart from designing, building and promoting most of Auckland’s public transport infrastructure and services, AT also play a great role in managing the customer apps. The One Network partnership of AT with New Zealand Transport Agency (NZTA) has effectively helped to manage the traffic flow. (Auckland Transport, 2018).

1.1 AT’s Vision:

Transport choices for a growing, vibrant Auckland (Auckland Transport, 2018).

1.2 AT’s Mission:

Working together to deliver safe, innovative and sustainable transport for a great city (Auckland Transport, 2018)

1.3 AT’s Organizational Goals:

  • Electric bus trials already started with the aim of no more diesel bus purchase after 2025. (Auckland Transport, 2018).
  • 15 new electric trains have been purchased from Spain to boost the City Rail Link (CRL) which ensures that the central city is more easily accessible to a train station for commuters. (City Rail Link Limited, 2018)
  • Integrating the ticket so that people can commute with the same fare regardless of the form of transport they choose. For this the AT HOP Card can be made use on all forms of public transport in Auckland. (Clark, Lambert, & Davis, 2013, p. 2)
  • AT plans on extending its Rapid Transport Network (RTN) across the city using existing transport modes along with new ones such as light rail to make sure that public transport becomes the preferred choice for commuters

1.3 AT’s Strategic Objective

  • A safer Auckland with reduced accidents.
  • Enhance AT Mobile functions by including easier way to report issues.
  • Improve the AT HOP card experience by refunding unused balance, upgrading the website and simplifying concession application. (Auckland Transport, 2018).

1.5 AT’s Organizational value

  • Safe, sustainable and innovative to meet the increasing needs of people and thereby provide a good travel experience.
  • Lower transport cost for people.
  • Efficient and customer friendly workforce ready to help at any time.

1.6 AT’s Key Business Functions

  • All public transport in Auckland is managed by AT including electric trains, buses and ferries.
  • Ensures that the foot paths are maintained properly along with managing all roads in Auckland.
  • Manages all travel fares and the ticketing services.
  • Apart from being a part of road safety campaigns we also provide safe marine environment via Auckland Harbourmaster.
  • 24 hours dedicated customer care services.
  • Safer and economical public transport for all.
  • Maintenance of cycling and walking areas along with managing the parking services across the Auckland roading network.

1.7 AT’s Organisational Structure

 The organizational structure is very important for the proper working of any organisation. As far as AT is concerned the organisational structure is of foremost importance since it is responsible for all modes of transport in Auckland. AT has a large and complex structure to ensure that the productivity and quality of life of Aucklander’s is not compromised at any cost.

 The large workforce of AT ensures to provide a safe and sound travel experience for Aucklanders. The Board of Directors appoint the AT Chief Executive who is responsible for a handful of sections in AT including the Finance, Infrastructure, AT Metro, Communication and Corporate Relationship. He also manages the Risk and Assurance section of AT which is of vital importance. While the Board of Directors heads the four main committees of AT as depicted in the chart.

1.8 Summary

As a transport provider Auckland Transport’s role is evolving rapidly to match with the transformations in how the people in a well developed city want to travel. AT is working along with NZ Transportation Agency (NZTA) to control street parking, along with  upgradation and maintenance of arterial and local roads in Auckland. Overall, AT’s is doing their best to deliver safe, innovative and sustainable transport for the well-being of Auckland.

 

2 ICT Infrastructure

2.1 Introduction

ICT (Information and Communication Technologies) which is like Information Technology(IT), stands as a bridge between the technologies and telecommunications which helps to conduct information.

ICT plays a major role in AUCKLAND TRANSPORT(AT) for designing or for the best performance of Buses, Train or Metro and Ferry services.

ICT infrastructure includes hardware’s, software’s, and ICT staff’s. Main hardware’s that are used by AT are computers, CCTV’s, TV screens, Laptops, GPS tracker etc. When discussing about the software’s ICT mainly uses two software’s. They are checkbox and SharePoint which is owned by Microsoft. Other software’s that are provided by Microsoft and other software’s are also used by AT.

 

2.2 ICT Hardware

AT services use a hardware which will have so many locations and also a wide variety of physical items. The hardware components are listed in the AT 2017 Annual report (Auckland Transport 2017, p.74) and it is been called as the physical infrastructure of the services. In 2017 census, the value of the hardware components used by AT was around $25 million.

  • 1200 laptops
  • 560 servers
  • Screens
  • 500 PC’s

  Other than the above listed materials, many other electronic devices are also used by AT and defined as plant and equipment. These devices are used in ICT related functions, and some are given below,

  • Data Centers (X2)
  • Network nodes (X11.000)
  • Phones (X1200)
  • Switches (X 220)
  • Wireless access ports (X196) (Auckland Transport, 2016, p.9)

 

2.3 ICT Softwares

Software is employed by AT in virtually each space of the organisation. code falls into 2 categories; code developed by AT, and code purchased or hired by AT.

CHECKBOX

Checkbox is one of the most popular survey software used by various Multi giants like Adidas, American cancer society, American University, Michelin tyres, Hilton, Microsoft, Motorola etc. Auckland Transport is also using this survey software to read the survey about the passengers travelling experience and overall satisfaction about the services. This software is the powerful and easiest survey software among the other software’s.

SHAREPOINT

SharePoint is an organ of the Microsoft body which helps people to work together from various places. In simply we can say that SharePoint is a file storage and sharing software.  With the help of SharePoint, one can create anything like webpages, presentations, spreadsheets etc. and share and discuss those thing s with the web-based platform of SharePoint. About 150 companies including ABB, Air Canada, Best Buy, BPL, Bluestar, HP, O2, Wipro, Subaru etc. to share their decisions and results. Auckland Transport is also their customer too.

Auckland Transport uses products of Microsoft such as MS word, MS excel etc. and the resource planning software SAP. AT do not provide the details of some software’s that they are using for their best service.

2.4 Current ICT organisational structure

BUSINESS TECHNOLOGY DROUP(BPG)

The Groups vision is to be Auckland’s most trustful partner with sophisticated and innovative transport advancement and solutions. BTG is a single unit with three adjacent business units. all of these units report to the chief technology groups. Business units consist of:

  1. Customer Central: A central hub for customer electronic communication for AT
  2. Technology Group: Services, application Support, Development Operations, Enterprise information
  3. BT Solutions Group: This unit includes Architecture, Programme Delivery, BT

Commercial, Resource Management, and the BT Programme Management Office

2.5 Summary

AT wants effective and economical hardware and software package, and capable human resources to deliver on its vision. Technology, its use, and technology professionals are integral to however AT presently delivers services to its customers in its main daily activities of transport, Roads, and behavior amendment

 

3.Analysis

3.1 Introduction:

In this section  the organisation is analysed with the help of different analysis methods. The methods are which used for analysis are SWOT analysis, PEST analysis, Balanced Score Card, Gartner Magic Quadrant and Enterprise Architecture Zachman Framework.

3.2 ICT SWOT Analysis:

SWOT analysis is a structured process which consist of organization’s strength, weakness, opportunities, and threats. The SWOT analysis involve internal issues (strengths and wellness) as well as external issues (opportunities and threats). Following structured analysis tells about the strengths that make Auckland Transport a successful mode of transportation, the weakness includes the area where it need work, the opportunities tell the growth of AT and the threats explain the problem that might be come in future.

Strength-

*It is a cost effective mode of transport for the general public of Auckland.

*Ultra-Modern technology and visually striking design, dynamic and modern, competitive and world class

*Online GPS tracking using AT application.

*HOP card is very easy to use

Weakness-

*AT app sometimes doesn’t linked to real transportation time

*Not providing 24/7 transportation

*At app does not match to the AT websites, the websites shows routes and times that the app doesn’t display .

*It takes 24 hours to reflect the amount in our account if we do an online recharge.

Opportunity

*Revenue from property development and advertisements.

*Potential to achieve higher ridership.

*Introduction of New Network project which will ease the life of Aucklanders.

Threats

*Cyber Threats- Network Attacks, Malwares, Hacking etc.

*Staff  Stealing  Information

*Increased in ridership

*Competitors- Eg: uber, Green Cabs

Auckland Transport is boon for Aucklanders, but it also has some drawbacks. As they are playing an active role in making Auckland with more sustainable and networked region by designing, building, managing and promoting most of the Auckland public transport infrastructure and services but they are also lacking in some areas such as in AT application.

As mentioned in weakness,  AT application sometime is not linked with the real bus time, if in case the bus gets late it does not show any notification and also the announcement in the metro is so robotic that sometimes it’s not understandable that what they are announcing.

3.3. PEST ANALYSIS

 

POLITICAL

Issues related to operation areas like funding of transport infrastructure, the central government has collaboration.

The changes of policy in each three years,as the change in ruling parties the central government is involved in this regard

In case of transport matter collaboration of others such as local local/pressure groups are also other (involve various groups such as environment groups, business group local boards) involvement of iwi is also these in regional transport.

ECONOMIC

For a better transport across the region customer pressure is high for cost effective and efficient services the expectation of customers is more.

Taxes are these for regional transport services for paying some are petrol taxes, road tolls & road case charger.

Expectation of efficient regional transport infrastructure through businesses is also more some of them are getting goods through local markets and into international market through transport hubs such as airports and ports.

These is an increase in the tourism sector with in demand for decent public transport from tourists which will be in line with different cities around the world

Social

Development in new suburbs and also with more densely populated areas which are existing in with the growing population

With respect to sustainable and ethical service, the goal for reducing pollution and environment maintenance is also increasing.

In case of migrants many of them are using or are from areas where they use the public transport more than coming driving their private motor vehicles. It cab be called as demographic trends

Technological

Use of advance technology by the users/consumers. Some are use of mobile device and also use of swipe card and mobile technology for better services.

Updation in more areas such as better ICT system, journey planning for various groups etc.

Auckland regional rail corridor, electrification work and even the bus services.

Increase in the use of commercial transport system such as bicycles and car in future and even hire vehicles instead using private ownership vehicles.

Use of  new technology  in future like driverless vehicles.

Rather than using the taxis companies the use of uber is getting more and more common nowadays

The main aim of the PEST Analysis is to provide an overview of external features and how AT must operate. The need of better services for the consumers,  government and other shareholder which will also be cost effective for the users. The change in the political environment is likely to happen for providing a good and better transport system in Auckland ,there will be a political willingness from both government bodies to work together is expected.

The economic environment is also therefor the development and funding of a better system. for more effective transport links and infrastructure, the business expectation is also there within the system. In case of Auckland economy, tourism will also play a vital role due to this there will be a pressure within and outside the NewZealand, for Auckland to be like an international city with an international standard transport systems.

Social trends will also have an significant role in AT’s future. The population in Auckland in growing which is used to like in apartments and in fill housing and this will also have &  more importance or they rather prefer puts the transport system rather than using private transport. The demographics of Auckland can also have an impact as there are increase in migrants, who use public transport. This will emphasis more on the use of green technology and thus producing less pollution with our transport system.

Improvement in technology will also have an impact on Auckland transport services i.e; how AT delivers its service to the customers. with the improvement in mobile technology and swipe card technology the customer can access  services more easily, faster and even cheaper. By means of storing the customer data is also have an impact on AT that how to deliver services. In this new era with advancement in technology, it will allow every individual to plan their journey more easily and effectively. AT will need to have a look to the future as uber and driverless cars are becoming common and also their is a reduction in the number of privately owned motor vehicles ,due to that impact of the above mentioned technologies

The PEST analysis will be linked with SWOT analysis, so that some factors of PEST will be an opportunities of AT for the future some examples are in the field of mobile technology, storing the customer information in the database, and also the possible opportunities of AT can also be considered that is how individuals use the AT services rather than the private vehicles.Regardless of all these factors, the Auckland Transport will also have an economic risk. Due to all its positive advantages the businesses will expect more from AT in for of better transport networks which will have an efficient and effective supply chain the factors are discussed in PEST Analysis can be categorised into two main parts which will be same as that of SWOT Analysis. It is given below the physical infrastructure of the transport network secondly safety and health of consumers and the environment.

3.4 Current ICT Balanced Scorecard

The ICT Balanced scorecard represents the ICT of AT aims to extend revenue and increase the quality turnover magnitude relation of its IT assets. This may be a major increase in monetary returns there on assets expected from this year till 2020.

 

Customer focus additionally includes an essential half to play within the balanced scorecard. Expectations are that ICT can facilitate deliver larger client retention, and satisfaction. Internal ICT processes are expected to boost the event time for brand spanking new technologies, additionally as decreasing the value of ICT to the organization. Learning and growth are areas which will underpin ICT for AT within the future. Having workers that are engaged in continued skilled development, are glad with their work, and are maintained can support all different areas of the ICT Balanced card and thus the organization

3.5 ICT Gartner Magic Quadrant Analysis

This analysis can be described as methodology used to visualize as well as monitor the position of different organisations in their respective industry. Rather than the conventional statistics or ranking format, here we use a two dimensional matrix to showcase their position in the technology based market.

This analysis divides organisation into four. They are Leaders, Visionaries, Niche Players and Challengers. Leaders can be considered as toppers. They are well prepared for the future. Visionaries understands the market and its vision but fails to execute well. Niche players do not innovatively perform to beat others. Challengers fails to understand the market even though they perform well for a large segment.

Organizations are ranked according to a matrix that divides firms into four. The position of each organization in the quadrant is based on Completeness of Vision and the Ability to execute. Given quadrant is comparison of AT with the other two major transport providers of Wellington and Canterbury. Here the placing is based on the customer satisfaction level in the compulsory annual satisfaction survey of 2017.

The levels of customer satisfaction for AT for public transport in 2017 is 90% (Auckland Transport, 2017). For Wellington Metlink it is 92% (Metlink, 2017) and for Canterbury’s Metro it is 97%. From this we can conclude that is one among the top 3 leaders, but ccurrently Canterbury’s Metro holds the top position.

3.6 Enterprise Architecture:

Zachman Framework Enterprise Architecture Model for Auckland Transport:

The Zachman Framework is a logical structure for enterprise Architecture which provide vital information about enterprise. It include two dimensional classification in which first tells the what , how , where, who, when, why and second dimension reveal the scope, business model, system model , technology model, detailed representation. Above framework explain the Architecture on the basis of ICT of AT.

3.7 Summary

In the SWOT analysis, the strength as well as the weakness of the Auckland transport is analysed. There are lot of opportunities for the Auckland Transport and all the threats related to ICT are analysed. The PEST analysis gives an overall overview of Auckland Transport in terms of political, economical, social and technological point of view. As per the Balanced Score Card analysis, AT is aiming to increase its overall turnover in the upcoming years. According to Gartner Magic Quadrant Analysis, AT is a leader in the respective field with 90% customer satisfaction, still Canterbury’s Metro is the supreme leader. Finally, the Zachman Framework provides a visual map of the ICT architecture of Auckland Transport.

  1. ICT Strategyy

 4.1 Introduction

ICT strategic plan is the specific type of strategic plan which tells organization or industry that what are its current situation and where they want to be in future in terms of information and communication technology. It includes the content such as mission, vision and objectives in terms of technology and infrastructure. Its mission tells the overall motive of the organization and vision describes the overall goals of the organization by achieving their desired outcomes. The AT mission and vision depends upon the certain strategic themes.

4.2 ICT Vision, Mission and Strategic Goals

ICT Vision

To enhance the Organization growth and provide transport in terms of technology.

ICT Mission

Improving the integrated transportation system using innovation and technology.

Overall Goals

         Introducing ingenious technology which can reduced congestion and provide safety to Aucklanders.

         Providing innovative technologies which improves the reliability and rapidness of transport services.

         Render the technology which provide efficient travel and multiple options for personal mobility.

4.3  ICT Strategic Objectives:

The main purpose of ICT strategic objective is to ensure that ICT activities aligned to the organisation and providing guidance in terms of technologies. Its strategy to align technology to business goals helps in building strong relationship between business and ICT department.  These objective will be critical component for the Auckland transport as it can operate in a more efficient, share and integrated manner across all the Auckland areas and if it is implemented successfully then it may enhance the quality of services, economically as well as socially. By introducing new technologies in transportation we can also enhance the satisfaction of passengers and by making it more reliable so that we can fulfil the expectation of Auckland people.

Strategic Objective 1:To provide the safety and security benefits to all passengers by using AT owned software app.

Strategic Objective 2:  To improve AT route app by linking to real application time.

Strategic Objective 3:To provide the leveraging and efficient access by improving current transportation assets using at software so that Aucklanders use transportation when and where it is possible.

 

4.4 Strategic Details

Strategic Plan 2018-2023

Strategic Objective 1: To provide high speed internet connection to passengers using Li-Fi.

Specific Goals  

Action Plan

(What, How)

Key Performance Indicators (KPIs)

Person(s) Responsible (Who)

Budget

(Resource Allocation)

Timeframe

(When)

To attract more passengers, especially youth.

Introduce Li-Fi in every buses, trains, ferries.

 

The lights can be used to transmit data in all modes of transportation.

All the devices should provide maximum efficiency and the overall customer satisfaction should be above 95%.

Auckland Transport Hardware and Software development team

$10 million

2 years

Strategic Objective 2: To improve AT route app by linking to real application time.

Specific Goals  

Action Plan

(What, How)

Key Performance Indicators (KPIs)

Person(s) Responsible (Who)

Budget

(Resource Allocation)

Timeframe

(When)

Improve AT application

Upgrade the app time to time

Alerts should be received on a wearable device

GPS tracking system should be accurate

Voice system should be provided

Notification should be received when your destination is one bus stop away

Up to date news about Auckland transport

 

Reduced the number of dissatisfied passengers and their complaints 25%.

 

App should be accessible from all the areas in Auckland

Customer satisfaction should be 98%.

Auckland Transport Software development team

$1.5 million

1 year

Strategic Objective 3: To provide the leveraging and efficient access by improving current transportation assists using AT software so that Aucklanders use transportation when and where it is possible.

Specific Goals  

Action Plan

(What, How)

Key Performance Indicators (KPIs)

Person(s) Responsible (Who)

Budget

(Resource Allocation)

Timeframe

(When)

Provide transport services in every area or region and the facilitate the services where people need.

AT will provide peer to peer ridership which can accessed through the application and payment will be done by HOP card.

Customer satisfaction should be 95% and this facility should be provided and accessible from all the areas in Auckland.

Strategies and development group, Business technology

$4 million dollars

1.5 years

 

5 ICT Infrastructure

5.1 Introduction

ICT infrastructure plays a major role in the field of technology and service managing. It also assist with the design, operations, deployment, design and even with technical support. Regarding the design of routes for buses, ferry and train services within the AT, the role of ICT infrastructure is considered to be important.

  In case of AT, the main aim of ICT infrastructure is to process with technology strategies for long term running of AT services in detail, ie: for two years out planning of the services (Auckland Transport,2016,p.2). This will help by giving the customers all the information like, collecting the data, processing it and utilizing the same for the services and also providing the transport routes.

 Various kinds of hardware and software is used by AT for their services. This will help to improve the business by improving the support technology and intelligent transport system by the services. With day by day improvement of technology, the AT services can easily meet the customer satisfaction and expectation by using various other mobile applications and online services such as Google play store, Apple services and even by Amazon etc.

 AT services will also play a major role in improving the business operations and strategies. It can be illustrated with some examples as well;

      It will provide good quality information on a large scale by designing the services and also with the help of proper planning (ie; both Internal and External) (Auckland transport, 2016, p. 3).

      It will meet everyone’s need like, internal needs (having a proper operation for the transport system) and external needs (by giving a proper planning to the transport users) (Auckland Transport, 2016, p. 3).

      It will have a transparency in its data through its open API Hub (Auckland transport, 2016, p. 5).

      All AT service customer (both tourist and residents) will be offered a great travel experience (Auckland Transport 2016, p. 3).

      To be with the wave, ie; facing the new challenges in the Auckland’s transport structure, it is been building up an integrated transport network.

5.2 Proposed ICT organisational structure

Bringing a new role for ICT organisation is completely a new concept. The Director of ICT has given the same importance as the chief executive of ICT.The technology plays the big part for the formation and victory of Auckland Transport. For the coming years technology will be the essential factor of AT. This is the main part of business. The Business technology groups operates by the ICT management Comittee.This mainly includes the manager of business intelligence, ICT infrastructure development software and quality assistance. This ICT groups handles operational management of ICT, ICT director deals with planning aspects for ICT organisation. These classified groups can work in their core related field for AT. They can work in group for other operations. The below Structure shows the proposed ICT organisational structure

Director of       ICT

AT Chief Executive

ICT Committee

Business Intelligence

ICT Infrastructure Development

Software Development

QA

 

 

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