Travel & Transportation July 2010

Finding the Right Track

Strategic challenges for Nordic Public Transport Operators

Finding the Right Track

Finding the Right Track

Public transport in Northern Europe is changing rapidly with increased outsourcing, shifts in the public’s travelling needs and significant regulatory changes. These trends put pressure on traffic operators to not only improve operations but also to rethink their strategic and tactical agenda.

Arthur D. Little has identified six success factors that characterize “cost effective innovators” in the industry:

  • Build processes for continuous innovation – beyond the basics
  • Be in the forefront of understanding customer needs
  • Continuously improve cost efficiency
  • Excel in writing and packaging attractive tender offerings
  • Build a systems capability and mindset
  • Strategic approach to competence management

The true winners are the operators that effectively manage all the six building blocks for success in a structured manner. Arthur D. Little advocates creating an integrated portfolio of the six dimensions above while following a structured roadmap, implementing initiatives to become cost effective innovators and successfully adapting to the changing competitive landscape.

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