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Accenture Operating Challenges and Solutions APTA Fare Collection Workshop & Trans. ITech Conference Ian Accenture Operating Challenges and Solutions APTA Fare Collection Workshop & Trans. ITech Conference Ian Davidson 19 March 2013

Integrating customer choice in payments in a multisupplier framework • Operating challenges context • Integrating customer choice in payments in a multisupplier framework • Operating challenges context • Customer payment choice (closed, open, mobile payments) • Multi-vendor supplier framework Copyright © 2012 Accenture All rights reserved. 2

Business and Solution Ecosystem The transit agency operating ecosystem requires solutions which strategically fit 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 Payment Operations Self-Service Mobile Social Nets Phone / IVR Media Mail Legacy Fare Management Smart. Card NFC Banking Channels Retail Public/Private Partner Subsystems Reporting Transaction Processing Data Management Business Systems Pooling Rail Intelligent Transportation Subsystems Back-end systems External Data Copyright © 2012 Accenture All rights reserved. Multi-Mode Transportation Subsystems Integration Layer Business Applications External Scheduling Contactless Integrated Security Business Services Fare Management Subsystems Operations Management Business Partner Subsystems Telco Point-of-Sale Web Parking Para. Transit Tolling 3

Choice and Flexibility in Fare Management Balancing multiple demands, transit agencies are looking to 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 Customer Choice Social & Economic Policy Information Management Fare Management Commerciali zation True Value to Providers Copyright © 2012 Accenture All rights reserved. • • 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 4

Enabling Transit Mobility Enabling a mobile strategy that supports the end-to-end customer journey Value 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 Obtain discounts Social media Customer services (e. g. check status) Supporting the end-toend customer journey Find services: journey planner Copyright © 2012 Accenture All rights reserved. Multi-mode transit Choice of products and services 5 5 5

The payments landscape is evolving with new entrants and incumbents vying with new and 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 Today New Entrants Penetrating/Shaping Payment Supply Chain Pure Play mpayment Telcos Handset Mfg Payments Systems (m-wallets) Traditional Incumbents in Payment Supply Chain Purchasing Customer Merchant Acquirer Network Consumer Bank Issuer Tomorrow? 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 Card Contactle Fixed Contactss Internet Based (Proximity (IE, ) (Mag, EMV) (NFC, RFID) Open Loop Netscape) Mobile Device Contactle Fixed ss Mobile ss Internet (Proximit Internet (Remote) y) (IE, (Apps) (NFC, Bar. Co de) (SMS) Netscape) Mobile Internet (Apps) Credit Debit Prepaid Credit Closed Copyright © 2012 Accenture All rights reserved. Loop Prepaid 6

A platform to manage operating challenges and support business outcomes Accenture’s Fare Management System 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 Phone / IVR An innovative and flexible solution… • 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 … enabling a platform for smart mobility. Mobile Point-of-Sale Mail Web Card Manufacturers Business Services Transaction Processing Data Management Call Center Reporting Banks Service Providers Integration Layer Acquirers NFC Smart. Card • • Social Nets Self-Service Open Payment 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 Copyright © 2012 Accenture All rights reserved. 7

The integration problem is not new. SOA has become the de facto Architecture for The integration problem is not new. SOA has become the de facto Architecture for Integration 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. , HL 7) has enabled large-scale adoption of SOA Copyright © 2012 Accenture All rights reserved. 8

SOA supports a multi-supplier sourcing strategy and customer payment choice Accenture Fare Management provides 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 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 Service Bus vendor-specific device formats (e. g. , lists) - Supports multi-vendor implementations • Fare Media Channels are specific to the Fare Media Channels Fare Media Devices) (e. g. , Cards and Channels (e. g. , Cards and Devices) Copyright © 2012 Accenture All rights reserved. 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 9

Integration Architecture Enabling Multi-Vendor Solutions Accenture’s Fare Management System leverages SOA to create a Integration Architecture Enabling 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 Copyright © 2012 Accenture All rights reserved. 10

Metrolinx/PRESTO: Open architecture and multivendor supply framework • • • PRESTO is a regional Metrolinx/PRESTO: Open architecture and multivendor 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 PRESTO Greater Toronto 400 km S&B devices & subsystem integrated with Clever Devices and reading PRESTO/STO cards GTHA Devices AFMS Device Pilot Device hardware Vendor-agnostic embedded Accenture device software Copyright © 2012 Accenture All rights reserved. 11

Landmark trial of next-generation fare management payments technology One of North America’s first fully-functioning 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 Copyright © 2012 Accenture All rights reserved. 12

Thank-you Contact Details Jane Matsumoto – Sales Director, Accenture Software • jane. matsumoto@accenture. com Thank-you Contact Details Jane Matsumoto – Sales Director, Accenture Software • jane. [email protected] com • (310) 971 -3394 John Vasilj – Business Development Director, Public Transport • john. [email protected] com • (312) 907 -3604 Michael Wilson – Managing-Director, Public Transport • michael. j. [email protected] com • (416) 312 -7539 Ian Davidson – Accenture Public Transport • ian. [email protected] com • (416) 641 -3049 Copyright © 2013 Accenture All rights reserved. 13