DB technology strategy Technology, CTO Board Division Infrastructure, Services and Technology Contents 03 Foreword 04 Digitalization and globalization are relevant trends for DB 06 The DB2020 Group strategy serves as the framework for the technology strategy 08 Digitalization is the key to success 09 The DB technology strategy identifies three steps for migrating the rail system 11 Six strategic directions define DB's technology strategy 14 The strategy is being implemented through initiatives, programs and projects Foreword Our company devised the DB2020 Group strategy to achieve sustainable strategic development that resolves potential conflicts among economic, environmental and social priorities, and to serve as a guide for the business units and Group functions to use when developing their own strategies. the strategic directions and areas for action that are key to achieving the goals set out in DB2020. Many of the goals set out in DB2020 mean that rail technology of the future will have to meet certain requirements. Consistently making advancements in rail technology is the only way we will be able to reach these goals. DB's technology strategy translates the aims into technical requirements that the overall rail system has to meet in order to ensure that the strategy can be implemented. The strategy allows us to leverage potential from a number of synergies: those that result from developments and trials that span business units and those that result from procurement, maintenance, redesign and disposal of assets. I would like you to play a part in this. I hope you find inspiration and joy in your own role as a visionary and designer of the rail technology of tomorrow. It may take years for technology to be developed, produced and approved, which means that assets that will go into operation between now and 2020 have often already been specified or even ordered. That's why DB's technology strategy takes an even longer view. This brochure describes our vision for rail technology and how it fits in with each of Just like the business unit and Group function strategies, DB's technology strategy will be repeatedly put to the test and systematically refined. Sincerely, Josef Stoll (CTO, Head of Technology) Digitalization and globalization are relevant trends for DB Mobility and logistics are undergoing a dramatic transformation. And markets are undergoing lasting changes, in particular as a result of digitalization and globalization. These developments are opening up new opportunities for the DB Group and the rail system, but have presented a new set of risks as well. DB took a systematic inventory of the relevant trends and used them as a basis for developing the DB2020 strategy. The technical system is facing substantial challenges as a result of: Increasing customer requirements for simpli­city, individuality, comfort and convenience, and timeliness Integrating rail systems in Europe and neighboring regions Including different modes in mobility and logistics chains Increasing digitalization, which presents a new dimension of challenges for the transport sector in particular 4 The opportunities and risks associated with these trends are closely related. New business models are emerging as the flood of data increases. New competitors are entering the market, offering everything from self-driving cars and platforms for mobility and logistics services to replacement services like web conferencing and 3D printing. Trends that have a major impact on rail technology: Digitalization Globalization Networked transport services Smart simplicity Transport innovation More profitability. More quality. More innovation. 5 The DB2020 Group strategy serves as the framework for the technology strategy In the current competitive environment, it is becoming increasingly important to understand what customers need and to meet those requirements as best as possible. Digitalization is making the competition for customers more dynamic, while globalization means that competition is taking place on a larger scale. At the same time, the rail system is unique in that assets are used for a very long time, and interactions between the infrastructure and vehicles are complex. Integrating innovative technology into the existing overall system must not put the system's ability 6 to function at risk. Moreover, the aim should be to make improvements across systems. In terms of long-term investments, migration needs to be planned according to the DB Group's strategic focus and its technical production systems. The DB2020 strategy – which is geared toward sustainability and accounting equally for the economic, social and environmental dimensions – serves as the framework for the technology strategy. DB2020 Group strategy What's it all about? Pursuing our vision of becoming the world's leading mobility and logistics company Reaching our goals of becoming a profitable market leader, top employer and eco-pioneer through strategic directions Consistently incorporating and implementing digitalization in all areas of the Group Ensuring our company's sustainable success and social acceptance in harmony with the dimensions Vision Sustainability dimension Strategic direction We are becoming the world's leading mobility and logistics company Sustainable business success and social acceptance Profitable market leader Economic dimension Top employer Social dimension Eco-pioneer Environmental dimension 1 Customer and quality 3 Cultural change and employee satisfaction 4 Resource preservation and emissions and noise reduction 2 Profitable growth More profitability. More quality. More innovation. 7 Digitalization is the key to success Digitalization connects all of DB's production areas: infrastructure, vehicles, planning, operations, maintenance and customers. The technology strategy envisages digitalization as an opportunity to be taken advantage of to increase profitability and innovation and to improve quality in all of DB's systems and processes. le s In Rail netwo rk CC en T, e Multi p units le e Fl n a m me an en C O Op Infrastructure and on-board systems ai s- ion Tim Operat ing etable plann nt / m Pl ng ce 3 cen Ster t Asse eg mana t men ni e ns Interface e a t nt ge an ur tio Sta Interface Customers and IT systems a ct rs fr ru Loco es tiv mo T, IC gy r Ca ic st Ve h e ra tio ns Processes CCT: control and command technology ICT: information and communications technology OC: operations center 3S-center: local control center for monitoring and ensuring security, cleanliness and service at Deutsche Bahn AG facilities 8 Systems The DB technology strategy identifies three steps for migrating the rail system Migrating the rail system to an integrated mobility, energy and information system will make DB future viable. The next essential steps for further developing the rail system in light of the current trends are: Enabling end-to-end service and transport for customers in the emerging single European railway area and neighboring networks: Establishing interoperability is a key condition for conducting transport services that are on time and economically sound. Examples include inter-plant transport between production locations within Europe as well as European high-speed passenger transport. Connections to Turkey and the Eurasian Land Bridge for rail freight from Asia to Europe are other important examples. Integrating rail into multimodal mobility and logistics systems that are globally integrated and have the flexibility to respond to demand: Autonomous vehicles on the rail and road make it possible to better utilize infrastructure, increasing its capacity. Digital platforms use big data analytics to optimize traffic flow across different modes of transport and create the flexibility to respond to individual demand in mobility and logistics. When incidents occur, customers are informed about alternatives and routes that meet their specific requirements and are rebooked and rerouted, in some cases without ever feeling the effects of the incident. More profitability. More quality. More innovation. 9 Further developing system integration to create a resource-efficient coverage area that is fully networked, both in terms of information and energy: Utilizing renewable energy sources, including station rooftops, areas adjacent to tracks and noisecompensating systems for the mobility and logistics systems of the future and finding smart ways of distributing, storing and controlling the consumption of energy improves resource efficiency. Usage and user data, information from traffic management centers, and energy control centers are concurring and are optimized across systems. The rail system is based on comprehensive security of energy supply and is becoming a pillar of grid stability. Development steps for the overall rail system A single European railway area is being created from national rail systems End-to-end service and transport for customers will be possible in the future Boundaries between road and rail systems are being eliminated Autonomous vehicles are an integrated land transport system Train/car-on-demand services are becoming available Mobility, energy and information are available everywhere as needed Networks and grids converge with smart controlling in a systematically and fully networked coverage area Resource optimization is a fundamental competitive factor 10 Six strategic directions define DB's technology strategy DB has identified strategic directions and areas for action to enable the system to develop further. And these strategic directions and areas for action define DB's technology strategy. In the future, the system must be: Networked within and across modes. In other words, as a provider of networked all-in-one services, it must serve different customers and provide overall sales systems that make the transition between modes as easy as possible, and meet individual information and communication needs. International. To work across borders, the rail system needs to be optimized and further developed through international partnerships, and this includes harmonized infrastructure, interoperable vehicles and broadly applicable processes (authorization, maintenance and operations). Customer-focused, in other words, offering contemporary design and service. The rail system must also be highly reliable, provide easy system access (to stations, platforms, vehicles and ticket sales), tailored information (customers are provided information about their travel chain or the location and condition of their cargo at all times and in all places), and offer services at a competitive price. Efficient in its use of the infrastructure and in the maintenance of facilities and vehicles. The rail system is controlled digitally. It is reliable and highly available. Systematic expansion increases capacity and improves punctuality, while condition is constantly ascertained and diagnosed to create transparency and enable more efficient maintenance. Flexible in its responses to demand using modular products and services. In other words, creating compatible subsystems with smart components and open interfaces in order to integrate them into the system, using data analytics for better forecasts and greater system stability, and scheduling refurbishment and modernization of track vehicles upon ordering. Social and ecologic in terms of material use, energy consumption and emissions (European noise emission requirements for vehicles, 20% reduction in CO2 by 2020), and optimizing ergonomics and operating procedures for employees and customers that account for demographic change. Strategic directions of the technology strategy Networked International Customerfocused Efficient Flexible Social and ecologic Higher-level area for action: digitalization End-to-end transport chains in the rail system and multimodal Harmonized processes (operations, maintenance) Individual Greater transport customer service capacity at bottlenecks Harmonized technology (infrastructure, vehicles) Condition monitoring/forecasts for technology (infrastructure, vehicles) Modular systems (including specified interfaces in the overall system) Efficient use of materials Noise reduction Energy efficiency and emission reduction Jobs that account for demographic change Areas for action in the technology strategy More profitability. More quality. More innovation. 11 Implementing the technology strategy requires the right framework. DB has defined four areas of emphasis: A broadly applicable understanding of the system has to be established within the Group and among the most important suppliers. This will enable consistent technical system design at railways and make it possible to assess and balance out the cost and benefits of measures throughout the entire system. 12 Increasing the ability to migrate in order to be able to implement innovations despite long lifecycles and challenging interfaces in the system. This calls for measures such as further standardizing technical systems to make it possible to replace modules and introduce platform solutions. Creating a suitable legal framework is crucial in order to obtain planning certainty. The legal framework includes legal conditions, functional technical rules, consistent risk acceptance criteria and transparent security requirements. DB is actively working on improving regulation, to include: Authorization of trains delivered over several years based on the legal situation when orders are placed, not on the legal situation at delivery Europe-wide authorization of trains to be used in multiple European countries instead of single country-specific approvals Strengthening DB's innovative capacity is needed to be able to respond more quickly to changes and initiate favorable changes. More profitability. More quality. More innovation. 13 The strategy is being implemented through initiatives, programs and projects Different initiatives have been launched to tackle the challenges associated with digitalization. The initiatives are the forerunners for the future and are supported by Group-wide programs and projects. Alw ay sc on Hig hly av ai la bl Mobility 4.0 Logistics 4.0 Infrastructure 4.0 Production 4.0 IT 4.0 Working Environments 4.0 ed ct The six key Group-wide initiatives are: Incr Automation supports smart traffic management so that the rail system can offer maximum quality and efficiency. Particular emphasis is being placed on the following topics: 14 d an d ty an co ci st pa re ca du ing cti on eas For example, the Production 4.0 initiative is broken down into the fields of maintenance and rail operations. The focus is on condition-based and optimized maintenance, automated operating processes and driverless vehicles. d a ne e an li re ble pu nc tu ali ty Tra n in o de m d an Asset intelligence Condition and prediction-based maintenance cuts costs and boosts reliability and availability Smart control Traffic flow optimization, greater network capacity utilization, fast response to incidents Networking Data from different sources is made available and assets can be controlled remotely Automation Increasing use of assistance systems is leading to greater automation, culminating in driverless vehicles and autonomous driving Photography Author/Photographer Uwe Miethe Page Cover Author/Photographer Page DB Sales (left) 8 Bartolomiej Banaszak (top) 4 Uwe Miethe (right) 8 DB Sales (bottom) 4 Michael Rauhe (top) 9 Max Power PHOTO (top row, left) 5 Uwe Miethe (bottom) 9 Max Lautenschläger (top row, center) 5 Max Power PHOTO (top) 10 US Department of Transportation (top row, right) 5 3D Systems | Pro X 200 DP (center row, left) 5 DB Infrastructure, Services and Technology Board Division (bottom) 10 Uwe Miethe (center) 5 Ralf Louis 12 Holger Peters 13 Max Braun | flickr (# 7471157378) (center row, right) 5 Hartmut Reiche (1st photo clockwise) 14 Wolfgang Klee (bottom row, left) 5 Max Lautenschläger (2nd photo clockwise) 14 Max Power PHOTO (bottom row, center) 5 Florian Fèvre | T-U-F (3rd photo clockwise) 14 DB Arriva (bottom row, right) 5 Transport for London (4th photo clockwise) 14 ingenhoven architects 6 Max Lautenschläger (5th photo clockwise) 14 Jo Kirchherr (top left) 7 Uwe Miethe (6th photo clockwise) 14 Claus Weber (center left) 7 Martin Busbach (7th photo clockwise) 14 Margit Wild (bottom left) 7 Alexander Fischer (8th photo clockwise) 14 ClipDealer (#70420) (center) 7 Max Lautenschläger 15 gettyimages (#108272075) (right) 7 More profitability. More quality. More innovation. 15 Publishing details Deutsche Bahn AG Infrastructure, Services and Technology Board Division Technology (CTO) Gallusanlage 8 60329 Frankfurt am Main Germany Subject to change without notice, no liability for errors or omissions Last modified in August 2015 www.deutschebahn.com