Книга - Railway transport business processes modeling. Textbook

Railway transport business processes modeling. Textbook
Pavel Minakov

Olga Madyar

Vadim Shmal


Vadim Shmal Ph. D. Associate ProfessorRUSSIAN UNIVERSITY OF TRANSPORT (MIIT)Olga Madyar Ph. D. Associate ProfessorRUSSIAN UNIVERSITY OF TRANSPORT (MIIT)Pavel Minakov Ph. D. Associate ProfessorRUSSIAN UNIVERSITY OF TRANSPORT (MIIT)





Railway transport business processes modeling

Textbook



Vadim Shmal

Olga Madyar

Pavel Minakov



© Vadim Shmal, 2022

© Olga Madyar, 2022

© Pavel Minakov, 2022



ISBN 978-5-0059-2516-9

Создано в интеллектуальной издательской системе Ridero




1 BUSINESS MODELS, THEIR DEVELOPMENT HISTORY AND CLASSIFICATION





1.1 Business modeling development history


In the business modeling development history, there are four stages based on a conceptual approach to the organization management (Figure 1.1).








At the first stage of business modeling development, the implementation of large-scale projects in various activity fields began. There has been a change in the production conditions of commercial and manufacturing companies, which has led to a number of problems arising in the organization activities. The problem analysis revealed disadvantages in the work of the organizational and technical system, which provides for the work of personnel, equipment, software and ways of their interaction.

Therefore, it was proposed to develop adequate ways of interconnecting the presented elements. The most well—known methodology is the structural analysis methodology and design of SADT systems, which was developed by Douglas Ross in 1973.

In the second stage, the development of enterprises activities describing methods gained popularity, due to the widespread introduction of personal computers and the development of information systems. The most popular organization describing methodologies at this time are modeling using data flow diagrams of various notations, developed by Jordan De Mark and Gainar-Sarson, information modeling by Chen Barker using entity-relationship diagrams, modeling of business processes of EPC notation, dynamic, functional analysis based on various types of Petri nets and the creation of a separate areas of software using CASE technologies (Computer-Aided Software/System Engineering), which have the ability to automate the work of software development specialists.

The third stage is characterized by the appearance of the first software products designed to solve organizational problems of enterprise management. During this period, the business environment is fundamentally changing, CASE tools are changing, which are no longer intended for automating processes, but for implementing a wide range of tasks of business analysis of enterprises’ activities. CASE models began to cover the full cycle of control system building (Figure 1.2).








A separate class of programs designed to solve management organizational issues and business modeling is being added – «BMS» (Business Modeling Software). The business model of this class includes a system of company goals, models of business processes and organizational structure of the company, as well as a reference book on the documents used. Business modeling during this period is inextricably linked with the" drawing development" of the organization, as the graphical representation allows you to make the company’s business model more transparent, accessible to the clients understanding, ready for regular analysis, management and further improvement.

The fourth stage is associated with the development of business modeling to a separate management methodology, which is called «business engineering». This methodology consists in analyzing and improving the company’s activities through the use of a process approach. A prerequisite for the success of the company is the availability of internal changes skills and their systematic application. Constant monitoring, analysis and continuous improvement of the company’s activities are among the main tasks of the new divisions.




1.2 The concepts of «business modeling» and «business model». Key elements and structural blocks of business models


A business model includes a combination of two concepts: a business and a model. A business is an economic or entrepreneurial activity aimed at making a profit systematically. A model in the usual sense is an abstract description of an object in some form that differs from the form of real execution. It follows from these concepts that a business model is an analytical, conceptual tool designed for the abstract description of various types of activities, the study of a complex business system, aimed at making a profit and reflecting the logic of the business.

The business model is used to describe the basic principles of the creation, development and successful operation of the organization. The details of the business model are determined by the goals of modeling and the accepted point of view. Within the framework of the business model, all objects, processes, rules for performing operations, the existing development strategy, as well as criteria for evaluating the effectiveness of the system are displayed.

The process of finding out or reproducing the properties of complex business systems, using an abstract description in the form of graphical components, mathematical equations, diagrams, plans, algorithms and programs is business modeling.

To determine the essence of the concept of a business model, two approaches are identified.



The approach directed inside the enterprise implies considering the activities of the enterprise from the point of view of business processes and technologies. The second approach involves focusing on the values of customers for whom the company should create a favorable environment, and this approach is also aimed at the results of the activities of this enterprise.

To date, there is no single point of view and a single definition of «business model».



To determine the content of an enterprise’s business model, several key factors are identified (Figure 1.3).








The concept of a business model is quite new. Schematically, Alexander Osterwalder was able to reflect it in 2004 in the form of a drawing according to which the company operates. In his opinion, the work of absolutely any company can be described in nine blocks. These blocks describe the scheme of the company’s work, its resources and main processes (Figures 1.4) [2].








As can be seen from the structure of the company’s work scheme, all the details of the company’s activities were covered by two approaches – inside the company and directly with external customers.




1.3 The main stages of building a enterprise business model


Business modeling is an ambiguous process and it is never possible to accurately predict the demand for a company’s activities. It is possible to formulate an abstract business model of an enterprise by creating its template – a general scheme consisting of 9 blocks (Figure 1.5) reflecting the logic of the work of any company (Figure 1.6).













1 Block – Consumer segment (customers).



This block determines the consumer base of the company, because the client is the heart of the business model, from which the main blocks will be based. Consumer segments are divided into 6 categories, the difference of which is due to differences in offers, requests and sales channels (Figure 1.7).








2 Block – Offer (provided value).

The offer block reflects a certain value for the segment of consumers, which can be both quantitative and qualitative. The value of the offer can be formed by the elements presented in Figure 1.8.








3 Block – Distribution channels (distribution channels)

Distribution channels have several phases and can be divided into direct, indirect, as well as own and partner. The stages of product promotion to the consumer are shown in Figure 1.9. Product promotion channels may include all or some stages.








Block 4 – Customer Relations

Customer relationships are divided into several types, for a certain segment of consumers, these relationships can be implemented in parallel. The customer relations block helps to answer frequently arising questions of cost, implementation in practice, segmentation of consumers for a certain type of relationship, etc. The types of customer relationships are shown in Figure 1.10.








5 Block – Income flows (revenues)

Revenue flows exist for each consumer segment. They can be single for each segment, and several flows can be intended for one consumer segment. Revenue channels may have an individual pricing mechanism. Ways to create revenue streams are shown in Figure 1.11.








Block 6 – Core resources (key resources)

Key resources primarily allow you to make a profit, as well as provide an opportunity to inform customers about your offers and ensure relationships with your target audience. The type of use of key resources also depends on the classification of the business model (Figure 1.12).








Block 7 – Main activity (key activities)

The main activity of the company is divided into 3 categories (Figure 1.13). The activity block helps to determine the appropriate distribution channels, the main actions necessary for the implementation of a product or service, as well as answer questions about further customer relations and determine the method of revenue flow.








Block 8 – Key Partners

During the work of the company, relationships with partners are built. There are three main motives for creating partnerships: optimization and economies of scale, reduction of risks and uncertainty, acquisition of certain resources and activities. Key partners can be divided into 4 classification groups (Figure 1.14). Partnership is necessary to support the company, its functioning through the attracted infrastructure, optimization, production savings, as well as in the framework of logistics (supplies) and joint activities.








9 Block – Expenses structure

Any business model should be based on minimizing expanses. In this block, it is possible to determine what expenses the company will have for the functioning of its business model. There are two broad classes of expenses structure: the focus on expenses and the focus on value, where most business models lie between these classes. The former always strive to ensure minimized expenses for providing their value, and the latter to ensure the quality of their products. Expenses, in turn, can also be divided into groups (Figure 1.15).









1.4 The business model of the Russian Railways Holding


The generalized business model of the Russian Railways holding company can be clearly demonstrated using the Osterwalder model. The main blocks of the model are shown in Figure 1.16.

In the target model of the Russian Railways holding, there are 5 blocks on which the main work of the company takes place (Figure 1.17) [4].













1 BLOCK – Transport and logistics business block

The main priority in this block is the formation of a diversified product basket of the holding. The cargo owner offers comprehensive integrated services according to the main logistics principle «door-to-door delivery of cargo», but with an additional expanded range of services from 2PL to 3PL, 4PL.

The main functions of the block:

– work with shippers;

– development and formation of transport services;

– development of operator and logistics activities.

The above-mentioned functions and performance of the business unit are carried out by subsidiaries and divisions of JSC Russian Railways, the largest of which are JSC FСC, JSC UTLC, GEFCO and others.



BLOCK 2 – Business block «Passenger transportation»

The business block is aimed at developing offers to consumers of transport services, by accelerating and increasing the multimodality of transportation, improving the quality of traditional service, improving additional and related services.

The main functions of the block:

– provision of passenger, baggage and cargo transportation services;

– passenger service and maintenance of passenger trains.

Passenger transportation activities are organized in suburban traffic by 25 suburban passenger companies, the Directorate of High-speed Communication, JSC «FPC».



BLOCK 3 – Business block «Railway transportation and infrastructure»

This block is the largest block in JSC «Russian Railways», as it plays a key role in the work of the holding. Priority areas of development in this block are to reduce costs, develop new and improve existing transportation and logistics products, purchase and modernize infrastructure for increasing traffic volumes.

The main functions of the block:

– ensuring an uninterrupted transportation process;

– management of train traffic and traction resources;

– development, repair and maintenance of railway infrastructure.

The block’s activities are carried out by structural divisions of JSC «Russian Railways», such as the Central Directorate of Infrastructure, the Directorate of Traction, the Central Directorate of Traffic Management, the Central Directorate for Railway Track Repair, the Directorate for the Repair of Traction Rolling Stock.



BLOCK 4 – Business block «International Engineering and Transport Construction»

This block strengthens and expands the Holding in the international transport market, affects the expansion of other types of business as contractors in the construction of infrastructure facilities.

The main function of the block:

– provision of services for the design, construction, supply of necessary equipment for the maintenance and operation of infrastructure facilities being created.

Activities within the business block are carried out by divisions of Russian Railways International LLC and RasonConTrans Joint Venture.



5 BLOCK – Social block

This block is based on an objective assessment of the added value, which is created due to the social support of the team and the effective use of the block’s assets to provide market services. The main priority is the social and public policy of the Holding, which is carried out outside the collective.

The main function of the block:

– carrying out activities on social responsibility to employees, society and the state.

The activities of the social block are carried out by structural divisions of JSC «Russian Railways»: the Department of Social Development, the Department of Personnel Management, the Department of Organization, Remuneration and Motivation of Labor, JSC «Russian Railways Health».




2 CUSTOMER ORIENTATION IN THE FIELD OF FREIGHT TRANSPORTATION





2.1 The concept of customer orientation and its role in the field of freight transportation


The undisputed leader in Russia in the transport services market is the largest Russian Railways holding, in terms of a wide geography of transportation and volumes. Despite the leading position in terms of transportation volumes, it is also necessary to take into account the level of financial and economic activity of the company. It is not always possible to get a high percentage of profitability from the price factor, since the tariffs of JSC «Russian Railways» for most services are regulated directly by the state, while imposing obligations to carry out more socially significant transportation instead of commercially efficient. At the same time, in many market segments, JSC «Russian Railways» operates in conditions of intense competition with alternative modes of transport.

The Company needs to develop non-price competitive advantages, which are based on the formation of a strategy to improve the quality of services provided and the level of customer service.

Customer orientation is the main element of anti-crisis management, which offers the Holding additional advantages, especially during a downturn in traffic volumes.

The interpretations of the concept of customer orientation are closest to the working conditions of the Russian Railways holding, in understanding the company’s ability to create an additional flow of customers and additional profit [1].

The main objective of the Holding is a mutually beneficial long-term partnership with customers, the constant development of a portfolio of products and services in the interests of consumers.

For the Holding, which has more than 30 types of business in its portfolio – from freight and passenger transportation, from logistics, construction services, design, IT and even healthcare, a cardinal reversal of all resources and processes towards the client is a unique task covering all processes, from planning to the direct implementation of transportation and its resource provision. It is made even more unique by regulatory conditions, social responsibility and a special role in the country’s economy, determined by the main shareholder – the state.

The model of Russian Railways that has existed up to now, where 90% of business depends on the basic rail transportation service, with tariffs regulated by the state, cannot generate a financial flow to implement the necessary level of investment. The new business model, defined by the Development Strategy of the Russian Railways holding for the period up to 2030, provides for the transformation of the company from a transportation to a transport and logistics company, providing, in addition to the basic transportation service, a full range of services with the expansion of the range of 3PL, 4PL services and the formation of end-to-end supply chains in the cargo segment and multimodality – in passenger transportation.

To form non-price competitive advantages of the Company today, it is necessary to develop and implement a strategy in the field of improving the quality of services provided and the level of customer service. As long as there is no customer orientation, full fulfillment of all obligations on the part of the railway, well-coordinated work between all structural divisions, the cargo will go to other alternative modes of transport, and the railway will have heavy losses.




2.2 Tasks and activities of the Department of Business Development and Customer Orientation


In December 2014, the Department of Business Development and Customer Orientation was established.

The main goals of the Department, fixed in the regulations approved by the President of the company, are (Figure 2.1) [8]:

– formation and implementation of a strategy for customer-oriented activities of the divisions of JSC «Russian Railways» and its subsidiaries in order to maximize customer demand for the services of the holding of the required quality as a basis for increasing its economic efficiency;

– ensuring the achievement of the strategic objectives of the production and economic activities of the Russian Railways holding and the established parameters of its effectiveness through business development and customer orientation.








To fulfill these goals, the new department focused on the following main areas of activity:

1) development of corporate policy of internal and external customer orientation of the Russian Railways Holding;

2) organization of the development of new transport products and the formation of an optimal portfolio of services provided by the Russian Railways holding to external customers, taking into account the exclusion of intra-holding competition;

3) coordination of the interaction of business units in order to ensure the balance of their activities aimed at business development and customer orientation;

4) development of tools for researching the needs of internal and external customers and assessing their satisfaction with the quality of services;

5) development of industry standards and creation of a unified catalog of internal and external services of the Russian Railways holding.

The Department of Business Development and Customer Orientation was abolished in 2015 and now the model of a customer-oriented company is formed by the corporate system of internal and external customer orientation of Russian Railways.




2.3 Corporate system for the development of customer orientation formation of the Russian Railways Holding


In 2010, the concept of «Customer orientation» was fixed in the Model of corporate competencies of JSC «Russian Railways» «5K+L» as one of the main values of the Company’s brand. The world does not stand still: technologies are rapidly developing, the level of digitalization of transport is growing, customer needs are changing, which means that the strategic objectives of the company are also changing. In order to develop and improve the customer-oriented approach in JSC «Russian Railways», extensive analytical work was carried out with the participation of a large number of managers, including top managers of the company, and in 2019 an updated model of corporate competencies of JSC «Russian Railways» was approved, which consists of 8 blocks: innovativeness; customer orientation; responsibility for the result; organization of work process; teamwork and mutual assistance; development and care of employees; integrated thinking; effective communication.

Each of the 8 corporate competencies has a different interpretation of concepts for each level of employees and is divided into two types: professional and corporate.

There are four management levels of the Russian Railways holding company. The first three levels include managers, the degree of importance begins with the first level of managers, which is evaluated at the Corporate University of JSC «Russian Railways», the second and third levels include positions from the deputy head of the linear enterprise to the deputy head of the service. The fourth level includes workers and specialists of the holding.

Personnel evaluation is one of the main tasks for a systematic unified personnel reserve, since in the process of this procedure, the qualification knowledge of employees and the assessment of the effectiveness of performing due duties are determined.

There is a single stage in the development of customer orientation in large Russian and foreign holdings.

Stage 1. Understanding customer orientation.

Stage 2. Education of customer orientation.

Stage 3. Customer orientation training.

Stage 4. Reward of customer orientation.

For the successful implementation of the principles of customer orientation, 5 key components are identified, which are fundamental for obtaining a productive result (Figure 2.2) [5].








For fruitful and methodical work aimed at the development of customer orientation, it is necessary to determine due attention to the study of the principles of customer orientation and the basics of organizing work with internal and external clients of the Russian Railways holding.




2.4 Internal and external customer orientation of the Russian Railways Holding. Customer orientation principles


The concept of «client» is interpreted not only in relation to the consumer of the service or the buyer, but can also be used to identify the interests and internal customers. The achievement of strategic goals by the company is impossible without meeting the requirements for the entire transportation process and its participants. Therefore, the concept of customer orientation is considered to be complex, which includes an external and internal component (Figure 2.3).








External customer orientation is responsible for the strength and long-term relationship with customers, as well as their level of satisfaction and loyalty.

Internal customer orientation is characterized by the quality of interaction between the structural divisions of JSC «Russian Railways», considers the effectiveness of the organization of end-to-end cross-functional processes in the process of value creation from the moment of their planning until the completion of the provision of services to an external client.

In accordance with the order of JSC «Russian Railways» dated July 26, 2016 No. 1489r, the development of the Holding’s external customer orientation provides [6]:

– building a system of segmentation and differentiation of customers in each type of activity, identification and implementation of needs for each segment and client;

– offering customers modern services in all types of business;

– ensuring accessibility and simplification of procedures for concluding contracts for the provision of services;

– development of inter- and multi-modal transportation;

– expansion of the portfolio of end-to-end complex services based on the development of logistics technologies: door-to-door delivery, just-in-time, last mile, etc.;

– development and implementation of loyalty programs in all types of activities;

– building customer feedback mechanisms;

– development and application of tools for assessing the level of customer satisfaction and loyalty;

– development and implementation of an Integrated information management system in the field of customer relations (CRM systems);

– unification of requirements for quality and consumer characteristics of services, implementation of service quality standards;

– development of the institute of customer service managers and unified customer service centers at the landfills of the railway network;

– development of marketing functions and active promotion of services in regional and linear divisions of the Corporate Transport Service Center – a branch of JSC «Russian Railways»;

– improvement of the regulatory environment and legal framework in the field of freight transportation;

– increasing the level of corporate culture in terms of the development of customer orientation and the focus of business units on a single result;

– providing quality services in all types of business.

The development of internal customer orientation provides:

– implementation of development concepts and functional strategies by type of activity;

– coordination of interaction between structural divisions, branches of JSC «Russian Railways» and business units of the holding «Russian Railways», aimed at forming an optimal portfolio of services based on the requirements of the transport market and the accepted parameters of strategic development;

– development of cross-functional end-to-end processes aimed at creating additional value for customers;

– improvement of the internal turnover of services based on the application of the system of work orders and quality parameters;

– improvement and expansion of the use of technological audit tools for the creation and implementation of services and services;

– fulfillment of the Company’s obligations under the Collective Agreement of JSC «Russian Railways»;

– ensuring social stability in labor collectives;

– implementation of internal corporate training and staff development programs;

– implementation of projects «Construction of technological housing» to secure highly qualified personnel.

The principles of customer orientation are crucial for a large holding of JSC «Russian Railways». The fulfillment of the conditions of the principles will allow the company to attract an additional flow of customers and profit, thanks to the understanding, quality approach and satisfaction of the needs of each of them.

The key principles of JSC «Russian Railways» are:

1) the company should have only one idea about customer orientation;

2) the rules of interaction with the client should be clearly regulated;

3) how customer-oriented the company is should be decided by the customer himself;

4) customers should be differentiated;

5) the company’s orientation should be aimed at key customers;

6) customer orientation should have the effect of increasing the profitability of the company;

7) there will be no customer orientation without profit from investing in the service;

8) the concept of «customer» should not be limited to the concept of consumers of goods and services;

9) the company is obliged to take into account the interests of internal customers.




2.5 Unified Customer Orientation Policy of the Russian Railways Holding


The unified policy of customer orientation of the Russian Railways Holding was developed in accordance with the instructions of the final meeting of the Management Board of JSC Russian Railways for 2015 and approved by the Order of JSC Russian Railways No. 1489r dated July 26, 2016. The main guidelines for the development of this policy were the implementation of strategies for the development of the railway industry and the Russian Railways holding, as well as long-term development programs of the holding, creating a basis for meeting the needs and expectations of internal and external customers.

The policy complies with the current legislative norms and takes into account the provisions of internal, regulatory legal acts of the Russian Railways Holding.

It defines the basic principles of the formation and functioning of the corporate customer orientation system in the Russian Railways holding, including structural divisions, branches of JSC Russian Railways, subsidiaries and affiliates of the Russian Railways holding at all levels of management (Figure 2.4), will fix the unity of norms, principles, methods and approaches in the holding, including all structural divisions, subsidiaries and dependent companies at all levels of management.








The policy takes into account world experience, which indicates that a full-scale transition to the principles of customer orientation is one of the main competitive advantages that ensure in the medium and long term the growth of revenue from existing and new customers.

This Policy contains the basic values, criteria and rules shared by managers and employees and serves as the basis for the activities of all structural divisions, branches of JSC «Russian Railways», subsidiaries and affiliates of the holding «Russian Railways» in the field of freight transportation, including regional and linear levels of management.

The customer orientation policy is aimed at implementing a clear understanding that the quality of services and products directly depends on the quality of production processes, which can be achieved through coordinated activities of all divisions, business units and business units of the holding.

The concept of the organization of a Single Policy defines the organizational structure of the management of the implementation of a Single Policy, tools and methods of implementation, as well as methods for evaluating performance and performance indicators (Figure 2.5).








The purpose of creating a Unified customer-oriented policy was the creation and implementation of corporate principles for managing the processes of forming a complex of new services provided and supporting old ones, as well as improving the quality of relationships with customers of JSC «Russian Railways», aimed at solving the following tasks:

– increasing profitability, competitiveness and efficiency of activities;

– increasing the volume of sales of services and entering new market segments;

– elimination of losses in the holding’s production chain;

– optimization of business processes;

– improving the quality of services provided and, as a result, reducing the overall losses of the company;

– expansion of the offered goods and services;

– increasing the period of interaction of the Holding with the client;

– formation of a knowledge base based on the study, accumulation and systematization of the experience of large Russian and foreign holdings;

– training and completion of professional development courses by personnel, comprehensive development of human resources, etc.




3 INNOVATIVE PROPOSALS FOR THE CUSTOMER ORIENTATION DEVELOPMENT OF THE RUSSIAN RAILWAYS HOLDING





3.1 Organization of transport and logistics service packages based on segmentation of clients of JSC «Russian Railways»


The basic principles of customer orientation are aimed at solving the main task – optimizing customer relations. Attracting and maintaining the customer base of JSC «Russian Railways» is possible if the conditions of customer orientation and all the obligations of the company are met.

One of the proposals for the development of customer orientation of the holding may be the organization of a comprehensive service based on segmentation of customers and manufacturers, as well as the formation of service packages.

To achieve this goal, it is necessary to use marketing principles, the complex of which includes:

– comprehensive study of the market, desires and needs of customers;

– determination of the capacity of the transport market;

– processing of the collected information, identification of consumer preferences, segmentation of the market by blocks;

– development of «individual» services based on the results of the analysis of information about the needs and needs of customers;

– justification of the feasibility of introducing new services;

– control of results and promotion of basic and additional services on the market.

When determining a market segment, it is necessary to develop research methods that may depend on the purpose, object of research, the degree of coverage of the transport market, etc.

A market segment is a part of the market allocated in a certain way, which must have one or more common features. [3] In turn, the feature will be a way to highlight a market segment. Each customer is a potentially defined market with their own preferences, desires and needs. It is quite difficult for such a large holding company as JSC «Russian Railways» to determine the range of services individually for each client, therefore, the company needs to provide high—quality service to homogeneous segments – groups of transport services customers that differ in the nature of demand and purchasing power. Today there is no single way to divide the transport market into segments, but the most significant factors for splitting can be: geographical, demographic, psychographic and behavioral.

Dividing customers into segments will allow the company to study the structure and needs of the transport market, the proposals of competitive companies, establish a rational price component, prepare and modernize vehicles, provide high-quality training of personnel to master the selected segments of the holding’s customers.

In addition to customer segmentation, segmentation for transport services can also be done in the same way. It is possible to segment services in the format of transport and logistics packages.

In the process of introducing such packages to the transport market, the income and profitability of the company increases, due to the optimization of customer awareness, the range of services, the quality of support services, an effective system of interaction with the customer in the 3PL/4PL service format and the formation of an appropriate pricing policy.




3.2 Introduction of digital technologies into the transport and logistics activities of JSC «Russian Railways» as a method of improving the customer service quality


To improve the main indicators of the holding, laid down in the Long-term development program until 2025, new commercial solutions and improvement of the existing technology of the companies will be required.

In addition to these actions, an important factor is the constantly changing customer requests.

The main goal of the company is to become a company that not only receives income from the inertial growth of traffic volumes, but also occupies a stable position in the market as a transport and logistics company. This task can be solved by developing mutually beneficial partnerships with customers and service providers, constantly changing, creating new products and services in the interests of consumers.

To date, a significant part of the initiatives are already being implemented, forming a model in the future, the center of which is the Company’s customers. The basic principles of its construction are presented in Figure 3.1 [7].

Most of the principles lie in the field of business solutions, but an important role will be played by the support of ongoing initiatives with digital solutions and services built on the basis of advanced technologies.








Currently, the Company has created an extensive IT infrastructure of the railway transportation market based on the AS ETRAN, which over the period of its existence has transformed from a departmental system of JSC «Russian Railways» into a state-scale system and has essentially become a global information space for all participants in the railway transportation market (Figure 3.2) [7].

However, it is necessary to modernize the commercial infrastructure of the market, which includes a complex of production and digital technologies that reflect the railway’s ability to provide revenue from providing services to the transport market. This can be achieved by digitally transforming the business model of the market (Figure 3.3) [7].













Nevertheless, the development potential of the ETRAN system has not been exhausted and will be directed to the field of intersystem interaction with Federal executive authorities and other participants in the transport market, the development of electronic document management both in domestic transportation and in international transportation.

With a promising growth in demand for transport services, it is planned, especially in the segments of small and medium-sized businesses, to sell them online. The use of WEB technologies is considered as the most democratic, promising, mobile and rapidly developing network environment for the implementation of the Company’s services.

As an example, a new service is presented – the client’s personal account on the website of JSC «Russian Railways», where in addition to calculating the cost of transportation and additional services, the client can find the nearest «points of sale» of the company’s services on the map in real time, get information about the location and technical condition of wagons, provide documents in electronic form and contact the unified information reference center.

In the future, it is planned to expand the functionality of the personal account: obtaining an assessment of customer satisfaction with the quality of services provided, providing personalized offers, news, promotions and other information, including notifications for car owners about the arrival of the car, movement, refusal of the recipient from the car, displaying contracts concluded by the client, agreements and services included in them, the possibility of concluding a contract in electronic form according to the principle of the offer, displaying the status of a single personal account of customers, the possibility of filing a claim by the client for consideration by JSC «Russian Railways», recording the client for certification of cargo fastening, ordering the company’s services, etc.

Digital innovations are gaining popularity in the Call Center of JSC «Russian Railways» in freight transportation. One of which was the artificial intelligence «Alice for Business». The main goal of the project is to automate the customer service process of the Holding as much as possible using artificial intelligence technologies. Today, Alice is being trained for self-service by artificial intelligence of calls on topics of a reference nature, outgoing call service with various service scenarios by voice portal, work in the chat channel-the possibility of contacting the robot through a form on the website and integration with messengers. In the future, it is planned to implement various service scenarios with a voice portal, depending on the emotional state of the client, the deployment of a subsystem of biometric identification of the client.

One of the most ambitious projects is the development of a service for monitoring smart contracts for freight transportation based on a blockchain in the transport and logistics activities of JSC «Russian Railways». The aim of the project is to create a unified information space between the participants of transportation and to ensure monitoring of the implementation of smart contracts for freight rail transportation based on a distributed data registry platform. The main advantages of this project will be: the speed of improvement of logistics operations, transparency of processes, improvement of corporate technological discipline, reduction of act and claim work, cost optimization, quality control throughout the route.




3.3 Development of customer-oriented electronic service


One of the main directions of improving the processes of organizing electronic document management.

JSC «Russian Railways» has converted into electronic format a number of documents that are necessary for transportation at all stages from the moment of planning to the issuance of cargo and preparation of financial documents.

To date, work is underway to expand the use of electronic document management, which is used at almost 4,000 stations in the form of work with electronic documentation (ED) due to the presence of an electronic signature (ES) among employees.

Almost 100 thousand external users have electronic keys for signing transportation documents.

As part of the organization of electronic document management to reduce the delivery time of financial documents to the client, JSC «Russian Railways» has introduced electronic document management of accounting documents using an electronic signature. To date, in addition to invoices, acts of services rendered and lists to them, the client receives in electronic form with an electronic signature: the act of reconciliation of settlements, invoices for payment of penalties.

Electronic document management is widely used in international transportation. International transportation has already been implemented on electronic legally significant waybills with Finland, Ukraine, Latvia, Lithuania, Estonia, Belarus, Kazakhstan. In the near future, the list of such countries will be replenished, which will significantly reduce the transportation time and improve the communication component with cargo owners.








Since 2017, a new type of public electronic service has been introduced for cargo owners and rolling stock operators, aimed at creating and developing a comfortable communication environment for all categories of customers based on modern hardware and software products – the electronic trading platform «Cargo Transportation» (ETP CT). ETP CT is a specialized information system that allows using Internet technologies to provide a comprehensive cargo transportation service with the provision of operator wagons. The main advantages of this system are:

– low percentage of Agent’s commission;

– non-discriminatory access to Russian Railways services;

– freedom to join the service.

Currently, the software content of the ETP CT, technologically integrated into the complex of interconnected information and control systems of the Russian Railways holding, makes it possible to optimally solve the maximum number of tasks related to transportation, focusing on the priority – meeting the needs of service users and promptly responding to the challenges of the transport market.





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