Digital Railways - Disruption or incrementation

Digital Transformation often coins the term “disruption”. It seems to be an incredibly negative word to try and describe a really positive change. Disruption means changing the status quo completely – new business models, new market, new solutions, new challenges, new opportunities. Uber is an obvious example for local transport; but examples spread from small bespoke sub-industries such as medical instrumentation through to some biggest name organisations in world business – Amazon (Retail), Facebook (Media), Apple (Communications). But the thing that ties all of these examples together is that they are huge step changes in the way things had been done before and essentially re-written the rule book.  

The Railways are not new to technology, innovation or disruption. Many would argue that the Railways were leaders in the technology and innovation that transformed the world in the 19th Century Industrial Revolution. Similarly the Railways were quick to adopt IT in the 60s and 70s, transforming a largely mechanical industry into the electro-mechanical world that we are now in. And there are many examples since of how the industry has made incremental steps forward into delivering new and improved services and solutions through the adaption and deployment of innovative new technologies.

Many analysts and industry insiders have recognised the opportunity available to the Railway Industry for Digital Disruption. The Railways and mass transit are still hugely important and relevant to society. Market size and growth opportunity is huge. And the Railways, as a market segment, cover a huge array of industrial and business disciplines, far beyond manufacturing, operations, maintenance, procurement, logistics, assurance and services. Digitising the railways is about as strong a use case as there is for Industrie 4.0.

Digital technology overlays into The Railways perfectly. There is already a mass of IT and use cases for incremental digital changes that will make a massive impact on the Railways effectivity and efficiency. For example, digitised CAD designs and 3D printing in manufacturing; remote asset monitoring for operations; and shift to CBM for maintenance. The Railways are becoming increasingly equipped for this digital transition too with more sensors, monitors and connected devices; as well as a growing number of bespoke solutions and services (e.g. software, apps, As A Service models) that address some specific needs.

A lot of this technology and solutions are already delivering significant incremental changes to the industry and realising a lot of additional value. But how does this translate into Digital Disruption? How do these solutions change the status quo completely – what are the new business models, markets, solutions, challenges and opportunities? And how does this get delivered? Not an easy challenge, but one that will change the industry for the better and achieve true transformation.

I hope to share more thoughts on Digital Disruption of the Railways, but I’d love to hear your views. Please post your comments and thoughts on this article and any ideas that you have.