As discussed earlier, SMEs have different challenges, such as tapping in into the software and hardware side of the cloud concept where their data requirements are not as large as for big companies, therefore they will not need initial heavy investments into IT infrastructures. This will increase their likelihood of adopting the cloud concept and having a bigger impact on barriers to ICT adoption if software developers will address a gap in the software applications related to multimodal operations. Indeed, the largest and most identifiable economic benefit of cloud computing is the direct cost savings. It is achieved via lower upfront IT costs, providing users with a low barrier to entry because cloud computing follows a utility-based pricing model in which service costs are based on consumption. A recent study by KPMG (2012) indicates that direct cost savings on IT related expenditure occur between 25 and 50 per cent, while the work of Etro (2009) finds that the productivity improvement of an average employee is by an average of 2.1 per cent.
Another benefit of cloud computing is its simplicity to manage and administer IT solutions deployed, because companies could rely more on the service provider instead of an internal IT department (Aymerich et al., 2008, Buyya et al., 2009, Armbrust et al., 2010, McAfee, 2011 and Cegielski et al., 2012). Cloud computing also provides elastic scalability (i.e. the ability to add and remove computing capacity on demand) which is a significant advantage for businesses with high level of uncertainty. This enables flexible partnership configuration and collaboration. For instance, an MTO could, based on the needs of a particular consignment, build up specific information linkages with the various parties involved. Once that consignment is completed, the MTO can quickly switch off some linkages which will be no longer needed in the future without much sacrifice on sunk costs.
Technology-related issues related to compatibility will be addressed by the providers of “on-demand” solutions through the implementation of a number of ICT standards which enable enhanced interconnectivity between applications. This should allow a user to connect seamlessly to support their legacy application and “other” systems for efficient cargo movement. Application deployment is greatly accelerated because cloud computing can provide self-service access to a shared pool of computing resources where the software and hardware components are standard, re-useable and shared. However, one major concern companies hold about cloud is security and reliability. The responsibility for the reliability and security of cloud infrastructure lies mainly with the technology service providers (TSPs) where those issues are still under scrutiny and are increasingly being addressed through appropriate infrastructure and continuous monitoring (McAfee, 2011 and Cegielski et al., 2012).
Policy-related barriers may be moderately affected by cloud computing due to the international nature of multimodal transport and the various policies deployed in different countries participating in the movement of freight. However, the enhanced streamlined systems which cloud computing enables might promote the harmonisation of relevant international freight transport procedures and laws in different countries. Indeed, the concept of a “single window system’ has seen an increasing adoption by countries such as Singapore (TradeNet) and South Korea (uTradehub), in aid of cross boarder customs cargo clearance processes between traders and governments (UNESCAP, 2010). In addition, ethical issues related to data privacy, accuracy, property and accessibility in the cloud that covers a number of participating countries that have different regulations in relation to handling the data will have to be addressed by TSPs to ensure that all legal requirements are met by all parties.
Web 3.0 and social networking with advances in interface technologies could have the strongest impact on user-related barriers due to the “human” element of the software trend. E-enabled communities promoting the use of applications and providing a platform for effective communication where a contextual search is at the essence of gathering knowledge will lead to further confidence in the use and development of ICT applications. As to the impact of such technological deployments on technology-related barriers, there could be a mixed (both positive and negative) effect. On one hand, compatibility and interoperability issues can be addressed via the increasing use of open-source software packages. On the other hand, integrating social media/networking sites as well as interface technologies such as augmented reality into business operations poses potential data security, confidentiality and ethical challenges. Therefore, we judge an overall moderate effect on technology related barriers. Regarding the impact on policy related barriers, we are yet to see any strategic actions or initiatives in a multimodal transport environment taking into consideration such technologies, and therefore a weak impact is predicted here.
Wireless/mobile communication technologies and the Internet of Things could have a strong impact on user-related and technology-related barriers. The “digital divide will cease to exist” by 2016 according to IBM (2011), where 80% of the global population will have mobile devices which eliminates accessibility issues. As the “digital divide” will no longer be a barrier to accessing information through the Internet due to the development of mobile communications and the wide availability and affordability of the devices, the development of supporting applications to provide timely information for decision makers without having the need for specific technological expertise will be accelerated. The Internet of Things, designed for the intelligent use of resources, will transform a physical world into an information system world where sensors are linked together and connected over the Internet ( BOOZ and CO, 2011). Issues related to bandwidth bottleneck and compatibility will need to be addressed due to a number of standards for sending information currently still in place. Looking into the future, Chui et al. (2010) noted that networking technologies and supporting standards will evolve to allow free data flow among sensors, machines and computers where software will aggregate and analyse huge volumes of data in real time. The Internet of Things, as discussed in Section 6.2, has received considerable attention from government bodies, in recognising its potential impact on the future economy and society in general and on transport specifically. Yet in the context of multimodal transport, we are yet to see any specific initiatives led by policy makers. Therefore we observe a moderate impact.
The user-related and technology-related barriers will be lowered due to advances in the Internet of Things and in wireless/mobile networking technology and there are some examples which can already be seen in road transport operations where an increasing level of competition has pushed road carriers to adopt real time position tracking. Such technological deployment requires significant investment on telematics equipment to support the Internet of Things, of which the unit price could vary from a few hundred to thousands of pounds. In addition to this, there are the running costs of data transactions, administration and maintenance. UK cloud based tracking services developed by technology service providers can be seen as an effective solution to address the problem where TSPs lease telematics equipment to haulage companies and offer web-based applications, with the cost per unit vehicle being around £20 or above (Data acquired from www.roadtech.co.uk). Some providers allow their users to cancel their service subscriptions at any time.
With regard to the impact of big data and the rapid development of decision-support systems discussed in Section 7, it will improve further decision-makers׳ capabilities. The analysis of “Big Data” together with local intelligence through the use of DSS is changing business operations now, making businesses much closer to their customers and suppliers with benefits that improve the bottom line of their business, leading to cost reduction, lead times and improving service levels. Through services offered by the technology providers on the cloud-based platforms, multimodal transport users would be able to use the capabilities offered by DSS without heavy investments in technologies and those systems will aid to lowering user and technology related barriers. Examples already exist where real time tracking data is used to analyse drivers׳ behaviours (such as harsh breaking, or incorrect routes) and their relationship to fuel consumption. Appropriate training could be developed to target those drivers who need improvement (Wang and Potter, 2007).
As discussed earlier, SMEs have different challenges, such as tapping in into the software and hardware side of the cloud concept where their data requirements are not as large as for big companies, therefore they will not need initial heavy investments into IT infrastructures. This will increase their likelihood of adopting the cloud concept and having a bigger impact on barriers to ICT adoption if software developers will address a gap in the software applications related to multimodal operations. Indeed, the largest and most identifiable economic benefit of cloud computing is the direct cost savings. It is achieved via lower upfront IT costs, providing users with a low barrier to entry because cloud computing follows a utility-based pricing model in which service costs are based on consumption. A recent study by KPMG (2012) indicates that direct cost savings on IT related expenditure occur between 25 and 50 per cent, while the work of Etro (2009) finds that the productivity improvement of an average employee is by an average of 2.1 per cent.Another benefit of cloud computing is its simplicity to manage and administer IT solutions deployed, because companies could rely more on the service provider instead of an internal IT department (Aymerich et al., 2008, Buyya et al., 2009, Armbrust et al., 2010, McAfee, 2011 and Cegielski et al., 2012). Cloud computing also provides elastic scalability (i.e. the ability to add and remove computing capacity on demand) which is a significant advantage for businesses with high level of uncertainty. This enables flexible partnership configuration and collaboration. For instance, an MTO could, based on the needs of a particular consignment, build up specific information linkages with the various parties involved. Once that consignment is completed, the MTO can quickly switch off some linkages which will be no longer needed in the future without much sacrifice on sunk costs.Technology-related issues related to compatibility will be addressed by the providers of “on-demand” solutions through the implementation of a number of ICT standards which enable enhanced interconnectivity between applications. This should allow a user to connect seamlessly to support their legacy application and “other” systems for efficient cargo movement. Application deployment is greatly accelerated because cloud computing can provide self-service access to a shared pool of computing resources where the software and hardware components are standard, re-useable and shared. However, one major concern companies hold about cloud is security and reliability. The responsibility for the reliability and security of cloud infrastructure lies mainly with the technology service providers (TSPs) where those issues are still under scrutiny and are increasingly being addressed through appropriate infrastructure and continuous monitoring (McAfee, 2011 and Cegielski et al., 2012).Policy-related barriers may be moderately affected by cloud computing due to the international nature of multimodal transport and the various policies deployed in different countries participating in the movement of freight. However, the enhanced streamlined systems which cloud computing enables might promote the harmonisation of relevant international freight transport procedures and laws in different countries. Indeed, the concept of a “single window system’ has seen an increasing adoption by countries such as Singapore (TradeNet) and South Korea (uTradehub), in aid of cross boarder customs cargo clearance processes between traders and governments (UNESCAP, 2010). In addition, ethical issues related to data privacy, accuracy, property and accessibility in the cloud that covers a number of participating countries that have different regulations in relation to handling the data will have to be addressed by TSPs to ensure that all legal requirements are met by all parties.Web 3.0 and social networking with advances in interface technologies could have the strongest impact on user-related barriers due to the “human” element of the software trend. E-enabled communities promoting the use of applications and providing a platform for effective communication where a contextual search is at the essence of gathering knowledge will lead to further confidence in the use and development of ICT applications. As to the impact of such technological deployments on technology-related barriers, there could be a mixed (both positive and negative) effect. On one hand, compatibility and interoperability issues can be addressed via the increasing use of open-source software packages. On the other hand, integrating social media/networking sites as well as interface technologies such as augmented reality into business operations poses potential data security, confidentiality and ethical challenges. Therefore, we judge an overall moderate effect on technology related barriers. Regarding the impact on policy related barriers, we are yet to see any strategic actions or initiatives in a multimodal transport environment taking into consideration such technologies, and therefore a weak impact is predicted here.Wireless/mobile communication technologies and the Internet of Things could have a strong impact on user-related and technology-related barriers. The “digital divide will cease to exist” by 2016 according to IBM (2011), where 80% of the global population will have mobile devices which eliminates accessibility issues. As the “digital divide” will no longer be a barrier to accessing information through the Internet due to the development of mobile communications and the wide availability and affordability of the devices, the development of supporting applications to provide timely information for decision makers without having the need for specific technological expertise will be accelerated. The Internet of Things, designed for the intelligent use of resources, will transform a physical world into an information system world where sensors are linked together and connected over the Internet ( BOOZ and CO, 2011). Issues related to bandwidth bottleneck and compatibility will need to be addressed due to a number of standards for sending information currently still in place. Looking into the future, Chui et al. (2010) noted that networking technologies and supporting standards will evolve to allow free data flow among sensors, machines and computers where software will aggregate and analyse huge volumes of data in real time. The Internet of Things, as discussed in Section 6.2, has received considerable attention from government bodies, in recognising its potential impact on the future economy and society in general and on transport specifically. Yet in the context of multimodal transport, we are yet to see any specific initiatives led by policy makers. Therefore we observe a moderate impact.
The user-related and technology-related barriers will be lowered due to advances in the Internet of Things and in wireless/mobile networking technology and there are some examples which can already be seen in road transport operations where an increasing level of competition has pushed road carriers to adopt real time position tracking. Such technological deployment requires significant investment on telematics equipment to support the Internet of Things, of which the unit price could vary from a few hundred to thousands of pounds. In addition to this, there are the running costs of data transactions, administration and maintenance. UK cloud based tracking services developed by technology service providers can be seen as an effective solution to address the problem where TSPs lease telematics equipment to haulage companies and offer web-based applications, with the cost per unit vehicle being around £20 or above (Data acquired from www.roadtech.co.uk). Some providers allow their users to cancel their service subscriptions at any time.
With regard to the impact of big data and the rapid development of decision-support systems discussed in Section 7, it will improve further decision-makers׳ capabilities. The analysis of “Big Data” together with local intelligence through the use of DSS is changing business operations now, making businesses much closer to their customers and suppliers with benefits that improve the bottom line of their business, leading to cost reduction, lead times and improving service levels. Through services offered by the technology providers on the cloud-based platforms, multimodal transport users would be able to use the capabilities offered by DSS without heavy investments in technologies and those systems will aid to lowering user and technology related barriers. Examples already exist where real time tracking data is used to analyse drivers׳ behaviours (such as harsh breaking, or incorrect routes) and their relationship to fuel consumption. Appropriate training could be developed to target those drivers who need improvement (Wang and Potter, 2007).
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