1. New York City Transit Innovation and Technology Partnering Opportunities Open Innovation : Needs and Opportunities

2. 2 Outline New York City Transit Snapshot and Changes to Foster Partnering Strategic Areas & Technology Needs Potential Partnering Relationships How NYCT can Partner with others Moving into the Future

3. 3 Snapshot – New York City Transit World Leader in Subway and Bus Public Transit World’s Second Largest Public Transit Group Over 6 Million passengers daily 48,000 Employees Looking for innovative ways to meet Public Transit Needs and pursue operational excellence

4. 4 Changes to Foster Partnering Pre 2008: –“Silo mentality” each division seeking innovations –Few External collaborations In 2008: –Two New Groups Formed with Joint Goals  Innovation and Technology  Strategy, Benchmarking and Best Practices Transit Group Support for: Innovative Developments External Technology Evaluation Best Practices and Technology Implementation

5. 5 Definition Open Innovation: Systematic use of external resources to supplement internal innovation and development efforts

6. 6 Why NYCT Supports Open Innovation? Increased pressure for faster, better and lower cost Public Transit Service to New York’s Metropolitan Area NYCT has limited resources for Technology Research and Development Technology Advances in non-Transit Area Applications have greatly accelerated. NYCT’s size and complexity greatly inhibits any natural ability to be agile in evaluation and adoption of new approaches and technology.

7. 7 Strategic Areas of Technology “Needs” Strategic Areas: Sustainability –Energy –Environment Capacity Improvements Maintenance of facilities in “Good Repair” Revenue Generation Customer Service Safety & Security

8. 8 Needs: Sustainability Energy: Alternative, Cleaner Fuels Renewable Energy –Solar PV, Solar Thermal –Geothermal –Tidal Energy –Wind Hybrid Propulsion Systems Energy Storage Technologies –Batteries –Capacitors –Kinematics Conversion of Public Transit Waste to Energy

9. 9 Needs: Sustainability Environment: Reduced Air Emissions –Smaller Carbon Footprint Enhanced Soils and Water Management Renewable Materials of Construction –Facilities –Equipment (Bus and Rolling Stock) Lower Acoustical Impact

10. 10 Needs: Capacity Improvements Transit System Automation –Operations, Facilities and Equipment –Fare Collection Regional and Inter-modal Growth Station and Equipment Design Passenger Logistics Management

11. 11 Durable Building Materials New Cleaning Solutions and Equipment Elevator & Escalator Improvements High Performance Materials of Construction Vandal resistant systems Needs: Facilities in “Good Repair”

12. 12 Public/Private Partnerships Creative Alliances for Value Sharing Entrepreneurial Business Development Needs: Revenue Generation

13. 13 Metropolitan Transit Customer “Needs” Identification versus “Wants” “Voice of the Customer” Capture, Discernment and Transformation Information access and real-time System Status communications –Web Based Communications, Travel Planning and Notification –New and Novel methods of On-board and Station information updates for Customers Needs: Customer Service

14. 14 Passenger Safety Transit Worker Personnel Safety Vehicle, Facility and Engineered Systems Safety Non-destructive Testing Technology Fire Safety Needs: Safety and Security

15. 15 Potential Partnering Examples SBIR Letters of Interest and Support Letters Contract Research: University Alliances, Federal Lab CRADA, Technology Subject Matter Experts Licensing Joint Development Agreements Minority Equity Investment Joint Venture Acquisition

16. 16 How NYCT can Partner : Global Technology Insourcing Within Worldwide Transit Community External Sources –Small Companies –Universities –Institutes –Government Agencies –Large Companies

17. 17 Small Company Partnering Common forms of Partnerships –Service Agreements –Contract R&D –Licensing-in –Joint Development Agreements –Minority Equity Positions Need to clearly outline rights & obligations of parties IP rights is a key provision Can potentially provide exclusive market position for pre-negotiated time frames

18. 18 University Partnering Consider Strategic Alliance –Framework agreement Fast, low-cost access to resources, experience and skills Challenges –IP terms –communications

19. 19 Partnering with Government Agencies State and Federal agencies Funding supplements strategic programs A dedicated effort –Identify funding opportunities –Proposal preparation –Contract administration

20. 20 Moving into the Future Mass Transit Agencies that remain internally focused to meet strategic technical needs –Will be left behind Reward technical community and private industry for solving problems - not just inventing The fraction of R&D budget dedicated to open innovation will increase in successful, growing companies Reach out globally to build relationships

21. tell us more about how you might make a good NYCT Open Innovation Partner! http://MassTransitOpenInnovation.wordpress.com Tom Lamb Chief Innovation and Technology Phone: (646)-252-3674 Email: Thomas.Lamb@ NYCT.com Weblog: http://MassTransitOpenInnovation.wordpress.com