Technology’s impact on fleet managementThe features IT professionals appreciate today, and what to expect tomorrow

Technology’s impact on fleet management 3

What is fleet management ? 4

What does it mean for IT? 7

Powerful fleet management features 10

The future of fleet management technology 1 1

Conclusion 12

References 13

Table of contents

2

Technology’s impact on fleet managementThe features IT professionals appreciate today,

and what to expect tomorrow

Fleet management solutions, which help companies

streamline processes and optimize routes, offer obvious

benefits for management teams — not the least of which

are increased profit and the general ability to do more

work with less staff. But what does fleet management

mean for IT managers who are tasked with finding

solutions to fleet-related issues? Is it worth the work, and

is it a lot of work? This white paper will answer common

IT questions about fleet management implementation,

explain the state of the technology today, and take a

look at where fleet management is heading and why it

matters for IT.

Introduction 3

The technology of fleet management as we know it today

can be traced back to its beginnings in the 1970s, when the

Department of Defense launched satellites to allow GPS

locating technologies for the U.S. military. Use of those

satellites was then opened to the public, and the accuracy

of that technology has increased exponentially since that

time. GPS satellites are now capable of capturing precise

locations to within 30 cm, or about 12 inches,1 while cellular

networks transmit the information back to a central site.

The face of fleet management todayBut fleet management is about more than just GPS location,

and the fleet management we know today looks nothing

like the solutions of the past. Where whiteboards were once

the tool of choice for routing, and managers relied on

paper logs to track hours and mileage, the Internet of

Things (IoT) has changed the way we work, and has given

IT a seat at the fleet management table, as management

relies on IT to provide insightful analytics and select

technology solutions that allow the power of the web to be

placed inside every vehicle, where a variety of telematics

data is collected.

Sensor devices no bigger than a deck of cards transmit

data back to the cloud, where information is automatically

collected, analyzed and delivered to fleet managers in the

form of customized reports. These reports instantly present

critical insights not only on vehicle location, but also on

driving behaviors, maintenance status, payload temperature

for perishable deliveries, and more. Fleet managers use

data from individual vehicles to understand and act on

small but important details like seat belt use and vehicle

idle time.

What is fleet management?

What is fleet management? 4

GPS Satellite

Fleet Vehicle Tower Your Computer

IT departments deliver the power of big data As the use of “big data” — large sets of data like those

collected by fleet management solutions — becomes more

important to organizations interested in discovering

actionable trends, IT departments become a more integral

part of the picture. Management naturally turns to IT for

data-driven IoT solutions, and fleet management is no

exception. While data collected from individual vehicles is

useful in and of itself, big data collected from entire fleets

can reveal trends and patterns that focus the attention of

fleet managers on areas where efficiency and profitability

could easily be improved. Monitoring the actions of an entire

fleet, for example, can lead to an overall reduction in idle time

of 20–30%,2 and increases of 10-15% in overall productivity.3

With results like these, it’s no wonder that the ability to handle

big data is the IT technical skill with the biggest increase in

demand — in fact, a nearly 4,000% increase in one year. 4

Insights like these have become so coveted, and the technology so prevalent, that the market share of

wired vehicle tracking (sensors hard-wired into vehicles) is projected to surpass 92% by 2024.5 This figure

seems likely, given that 98% of current vehicle tracking users say that it has been beneficial to them.6

GPS device inside vehicle Fleet management devices are easily

installed into each vehicle by fleet

mechanics with a few simple tools.

Their small footprint and flexible

mounting location options make the

devices unobtrusive. Depending on

the type of vehicle, it may be possible

to attach a device into each vehicle’s

plug-and-play onboard diagnostics

vehicle port, or to easily hardwire the

device to the port via under-dash-

board wiring, so that data coming out

of the vehicle’s computer is captured

and relayed via cellular network.

Cloud-based data transferData from each device is transmit-

ted over a cellular network back

to a secure cloud where it’s stored,

processed and delivered. Data can be

securely exported from the cloud to

third-party systems in a number of

different ways, including open APIs.

Dashboard controlFrom the cloud, data is processed

for inclusion in a variety of reports

delivered automatically to designated

desktop and mobile devices. Reports

can be set to deliver daily, weekly

or monthly, and can be used to

spot trends across an entire fleet.

Alerts are delivered immediately as

sensors detect pre-selected

conditions or behaviors.

How a fleet management system works

What is fleet management? 5

“Big data is … allowing IT professionals to become more

involved in the business aspect of their organizations

Whereas before, IT departments were looked at as only a

division of a business meant to provide the right tech tools

and support when needed, now they’re becoming more

ingrained in every part of the company ”

— Rick Delgado, tech writer7

What is fleet management? 6

While management teams are typically the ones requesting

fleet management solutions, it’s IT professionals who

spearhead the selection process. In fact, when it comes to

choosing such productivity-related solutions, IT is involved

at some level 92% of the time.8

Cloud Computing Productivity Solutions

26%

16%

30%

15%

14%25%

16%37%

15%

8%

Sole Decision-maker

Provide Final Veto / Approval

Part of Decision-making Team

Provide Input

Not Involved

Role IT Decision-makers Play in Technology Purchases

What does it mean for IT? 7

What does it mean for IT?

What does it mean for IT? 8

Common IT questions about fleet managementIT professionals have a unique perspective on the selection

and implementation process for any new technology,

and know exactly what to ask to ensure that process runs

smoothly. Here are the answers to some of those questions

as they relate to fleet management:

Q: How much work is this going to be for the IT department?

A: Less than you might think. Implementing a fleet

management solution requires some of IT’s input on the

front end, during the initial build, but cloud-based

technology has made setup even easier. IT helps determine

which features would be most useful, how administrators

will want to use the system, and how drivers will access

data from smart devices. However, beyond that, a good

fleet management solution should not require much IT

time once it’s been implemented.

Q: How will this integrate with existing software?

A: Fleet management solutions like the one U.S. Cellular®

offers feature an open API that enables developers to

integrate fleet management with their current software,

to more efficiently export data. Vehicle performance and

engine diagnostic data can be exported to other systems

for further analysis, and mileage data can be exported to

platforms that make payrolling easier. This RESTful service

allows data export in multiple formats by users given API

access by IT.

To take advantage of open API integration, IT first requests

a unique account key for each user, which is then used in a

Universal Resource Identifier (URI) that can be customized to

request specific data. The key identifies the user and allows

limits to be placed on the data that user has access to.

Q: How secure is the fleet data that’s transmitted from each vehicle?

A: The lifeblood of a fleet management system is data. That

data has to be kept secure during transit, during processing

and at rest. Look for solution providers that offer multiple

levels of security. These should include encrypted data

transfer, cloud security, monitoring of all network infrastruc-

ture for malicious traffic, a one-way communications link

between the device and the vehicle, and redundant security

protocols like packet-filtering firewalls that double as VPN

concentrators. Make sure your fleet management provider

doesn’t purge client data, but instead stores it indefinitely.

Q: How much work will be required after the system is implemented?

A: Once it’s implemented, the IT department shouldn’t need

to own any part of the fleet management system beyond

setting users and access levels. A good fleet management

provider will offer unlimited training and customer support

before, during and after implementation so that it doesn’t

fall to IT to provide that training or to answer every

end-user question.

Q A

The changing role of ITOverall, fleet management provides IT professionals with

an easy way to answer management’s fleet-related questions

and to provide added value in support of organizational

priorities. According to a recent article by the IT training

experts at Global Knowledge, IT’s responsibility for creating

value in an organization is becoming critical. “It’s now a

priority. IT departments must focus on improving service

to the organizational user and to the organization’s

departmental needs.”9

“It’s now a priority IT departments must focus on

improving service to the organizational user and to the

organization’s departmental needs ”

— Global Knowledge, 2018

What does it mean for IT? 9

Routing features powered by GPS location• Route optimization evaluates stops

and rearranges them in a more efficient order.

• Historical route information so that the actual route driven can be compared to optimized routes.

• Multiple GPS map views allow a choice of traditional, satellite or hybrid views.

Instant mobile alerts • Mobile alerts promote better driving

behavior by flagging inefficient or

dangerous habits like:

• Hard braking • Hard turns • Sudden acceleration • Speeding • Excessive idle time • Seat belt misuse

Vehicle maintenance features• Diagnostic indicators reports display

Diagnostic Trouble Codes (DTCs).

• Warning light alerts show when immediate maintenance is needed.

• Maintenance reminders help optimize fleet health.

Hours of Service (HOS) compliance features• Electronic logbooks provide minute-by-

minute logging accuracy.

• A roadside inspection portal expedites mandated DOT inspections.

• A DVIR feature makes it easy for drivers to record vehicle checks.

• HOS limit notifications help drivers to stay within driving time limits.

Asset protection• Temperature monitoring tracks

perishable cargo across multiple zones.

• Alerts for deviations from temperature

set points allow quick reaction to changes.

Automatic reports• Landmark reports show how close each

vehicle is to preset locations.

• Vehicle diagnostic indicator reports detail warning lights triggered across the fleet.

• Detailed vehicle reports show locations, events and more for every vehicle.

• Driver safety reports enable self-correction of inefficient habits.

• Idle time reports help reduce fuel waste and engine wear.

• Mileage reports keep track of fuel taxes for fleets that do business in multiple states.

• Speed reports compare vehicle speeds to available posted speeds.

Security features• A remote starter disable feature prevents

a stolen vehicle from being restarted.

• Geo-fencing allows boundaries to be set around a point or points.

• Alerts can be set for vehicle use at unauthorized times or outside a Geo-fenced area.

• Video monitoring allows visual monitoring for safety of drivers and vehicles.

After implementation, IT can hand off fleet management solutions to end users, who can quickly and easily learn how to benefit from their powerful features.

Once implemented, fleet management solutions are easy

enough for anyone to use, and they include many automatic

features that almost effortlessly produce results. And while

IT departments hand off fleet management technology to

those end users after implementation, the solution offers a

wide variety of features that IT professionals still appreciate

for their power and ease of use. Below are some IT favorites.

Powerful fleet management features

Powerful fleet management features 10

Previous industrial revolutions have been shaped by

the introduction of the steam engine, manufacturing and

digital technology. As the Internet of Things, artificial

intelligence and even autonomous vehicles are poised to

begin making undeniable changes to everyday life, some

have heralded our entry into what’s been called the

Fourth Industrial Revolution.10

The future of fleet management technology — the Fourth Industrial Revolution

The future of fleet management technology 11

Marked by a blending of different technologies and disciplines

that is already altering the way individuals, companies and

governments operate, this revolution is changing things

more rapidly than ever before. So what does that mean for

the future of fleet management, and how do fleet management

solutions fit the bill?

“In this revolution, emerging technologies and

broad-based innovation are diffusing much faster

and more widely than in previous ones…”

— Klaus Schwab, “The Fourth Industrial Revolution”

Fleet management solutions will become

more prevalentFor starters, fleet management in general is predicted to

soon be a part of all vehicle fleets.11 As the benefit and cost

savings become more widely known, fleet management

solutions have seen steadily increasing adoption rates for

the last 5 years, and are predicted to continue growing

through 2024.12 That means that even fleet managers and

management teams who were once reluctant to try

something new will likely be on board sooner rather than

later, and will look to IT to help select the right solution.

The mobility revolution Mobility as a Service (MaaS) is an umbrella term that includes

the idea of autonomous vehicles. Vehicles with built-in

autonomous features — like blind-spot detectors and forward

collision sensors — are already widely in use. While fully

autonomous self-driving vehicles are clearly on the horizon,

the more immediate future holds an increase in autonomous

features like automatic emergency braking, predicted to be

in virtually all new vehicles by 2022.13 The benefits of

autonomous technology for fleets are a potential reduction

in accident costs and increased employee productivity.

Fleet management solutions will be able to easily monitor

safety, idle time and maintenance for any level of

autonomous vehicles, as well as sort the large amount of

data that they transmit.

The shift to actionable data managementAs data and information become more readily available, the

role of a fleet manager has become much more strategic than

it was in the past. In fact, as data analysis gains importance,

it’s possible that fleet management may one day be handled

by someone who is better defined as an IT manager than as

an automotive professional.14 Fleet teams that learn how to

use fleet management solutions to easily isolate actionable

data will end up ahead of the game, able to offer improved

customer service and achieve higher profits.

Wrapping it all upFrom their humble GPS tracking origins, fleet management

systems have evolved into powerful one-stop-shop solutions

that give IT professionals the ability to put actionable data

into the hands of fleet managers and management teams,

without increasing their long-term burden. These easy-to-

integrate solutions can help position you, your department

and your company for success, with features that increase

productivity, efficiency and profitability.

U.S. Cellular® offers fleet management solutions that are

backed by our powerful network, built to help keep you

connected whether you do business in rural or urban areas,

and backed by ongoing customer support.

For more information on fleet management, call 1-866-616-5587 or visit uscellular.com/business/fleetmanagement

Conclusion 12

Conclusion

References1. Moore, Samuel. “Superaccurate GPS Chips Coming to Smartphones in 2018.”

IEEE Spectrum, 2017. https://spectrum.ieee.org/tech-talk/semiconductors/ design/superaccurate-gps-chips-coming-to-smartphones-in-2018

2. Frost & Sullivan. “Global Connected Truck Capabilities.” 2016. https://www.slideshare.net/SathyanarayanaK/frost-sullivans-global-connected-truck- brochure-about-40-million-trucks-will-be-connected-by-2020

3. Ibid.

4. Kauflin, Jeff. “The 10 Technical Skills With Explosive Growth In Job Demand.” 2017. https://www.forbes.com/sites/jeffkauflin/2017/01/08/the-10-technical-skills-with-explosive-growth-in-job-demand/#5c3151054f5c

5. Bhutani, Ankita and Wadhwani, Preeti. “Vehicle Tracking Market Size — Industry Share Statistics Report 2024.” Global Market Insights, 2018. https://www.gminsights.com/industry-analysis/vehicle-tracking-market

6. GPS Insight. “2016–2017 Fleet Management Technology Report.” https://www.gpsinsight.com/wp-content/uploads/2016/12/Fleet- Management- Technology-Report-2017.pdf

7. Delgado, Rick. “Here’s How IT Departments are Using Big Data.” KDnuggets, 2016.https://www.kdnuggets.com/2016/10/it-departments-using-big-data.html

8. Spiceworks. “2019 State of IT.” 2019. https://www.spiceworks.com/marketing/state-of-it/report/

9. Global Knowledge. “12 Challenges Facing IT Professionals.” 2018. https://www.globalknowledge.com/us-en/resources/resource-library/articles/ 12-challenges-facing-it-professionals/

10. World Economic Forum. “The Fourth Industrial Revolution, by Klaus Schwab.” 2019. https://www.weforum.org/about/the-fourth-industrial-revolution-by- klaus-schwab

11. Griffiths, John. “Telematics is revolutionizing fleet management.”Financial Times, 2016. https://www.ft.com/content/ca557812-c03a-11e5-9fdb-87b8d15baec2?siteedition=intl#axzz4JVuwLBje

12. Grand View Research. “Internet of Things (IoT) Fleet Management Market Size, Share & Trends Analysis By Platform (Device Management, Network Management), By Solution, By Application (Commercial Vehicles, Passenger Cars), And Segment Forecasts, 2018 – 2025,” 2018.

13. MyCarDoesWhat.org. https://mycardoeswhat.org/

14. Lundin, Andy. “Future Fleet Management Trends.” Fleet Financials, 2018. https://www.automotive-fleet.com/321417/future-fleet-management-trends

For more information on fleet management, call 1-866-616-5587 or visit uscellular.com/business/fleetmanagement

References 13©2019 U S Cellular