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International Business Machines Corp. : Dutch City Region of Eindhoven Works with IBM and NXP to Improve Traffic Flow and Road

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02/21/2013 | 12:25pm CEST

Eindhoven, The Netherlands - 21 Feb 2013: IBM (NYSE: IBM) and NXP Semiconductors N.V. (NASDAQ: NXPI) today announced the first results of a smarter traffic pilot, conducted in the Dutch city of Eindhoven. The trial demonstrates how the connected car automatically shares braking, acceleration and location data that can be analyzed by the central traffic authority to identify and resolve road network issues.

"The trial successfully showed that anonymous information from vehicles can be analyzed by local traffic authorities to resolve road network issues faster, reduce congestion and improve traffic flow," said Ab Oosting, European Union project manager for the Collaborative Region of Eindhoven SRE. "By receiving the information in real time, road authorities can utilize mobile technologies to immediately deploy emergency response teams and road workers to resolve issues. Traffic centre staff can promptly respond and manage traffic flows away from accidents and dangerous traffic situations." 

The city region of Eindhoven (SRE) is located at the hub of several international transportation routes, where relatively small incidents can have major consequences for the system as a whole. In 2011, approximately 30,000 people were killed in the European Union as a consequence of collisions in traffic. The European Commission recently adopted an ambitious Road Safety Programme, which aims to cut traffic deaths in Europe between 2011 and 2020 by 50 percent. Intelligent transport solutions (ITS) can help improve European road conditions and safety. The 12-month trial was designed to provide the regional government with insights to maintain roads, reduce traffic congestion and increase road safety. 

The Ultimate Mobile Device: Connected Cars, Proactive Traffic Avoidance and Safety

With greater connectivity, today's automobiles generate a vast amount of data that can be used to enhance the driving experience, while improving traffic condition and road safety. For example, with IBM MobileFirst, which combines the power of mobile and cloud-enabled technologies, the same sensors that alert drivers about low tire pressure or broken lights can also automatically provide insight into traffic patterns. 

During the trial, IBM, NXP and its partners equipped 200 participating cars with a device containing the NXP telematics chip "ATOP" that gathers relevant data from the central communication system of the car (CAN-bus). Relevant sensor data - that were indicators of potholes or icy roads - was collected in-vehicle and transmitted to the cloud-enabled IBM Smarter Traffic Center.  

Using the power of IBM analytics, raw data from the vehicles highlighted 48,000 incidents over a period of six months, from 1.8 billion sensor signals. Incidents included heavy rain, black spots, switching on of hazard lights or fog. The disparate data from thousands of sensors was managed and analyzed through the IBM SmartCloud Enterprise service, making it possible to dynamically manage the needed computer capacity, which can vary dramatically depending on whether it is a peak traffic period or an unexpected event occurs. 

This information enables road officials to act in near real-time on dangerous road conditions, accidents or growing traffic density. It also informs drivers in the vicinity of an incident through smartphone or built-in navigation device. 

For example, a new speed is recommended to a driver based on current weather and road conditions via a mobile app though an in-vehicle navigation system or mobile device, or the location of the closest road assistance vehicle is identified. These aspects were successfully tested in the trial. In the future, a traffic command center could provide more personalized detours, routes and traffic information to a driver to better avoid congestion. 

This pilot is one of several initiatives SRE has begun to improve mobility in the region. In an earlier six-month road pricing trial conducted by the city, IBM and NXP, advanced road pricing technology was successfully used to incentivize drivers to change their driving behavior,reduce road congestion and contribute to a greener environment. Seventy percent of drivers changed their behavior to avoid rush-hour travel when presented with the right incentives, demonstrating that road pricing systems can have a positive effect on driving habits and help alleviate traffic.  

For more information on IBM Smarter Transportation, visit http://www.ibm.com/smarterplanet/transportation and follow @IBMTransport.

For more information on Connected Mobility, visit www.nxp.com/connected-mobility

About NXP Semiconductors

NXP Semiconductors N.V. (NASDAQ: NXPI) provides High Performance Mixed Signal and Standard Product solutions that leverage its leading RF, Analog, Power Management, Interface, Security and Digital Processing expertise. These innovations are used in a wide range of automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications. A global semiconductor company with operations in more than 25 countries, NXP posted unaudited revenue of $4.36 billion in 2012. Additional information can be found by visiting www.nxp.com.

About IBM MobileFirst

As the first new technology platform for business to emerge since the World Wide Web, mobile computing represents one of the greatest opportunities for organizations to expand their business. Based on nearly 1,000 customer engagements, 10 mobile-related acquisitions in the last four years, a team of thousands of mobile experts and 270 patents in wireless innovations, IBM MobileFirst offers an array of solutions that helps businesses connect, secure, manage and develop mobile networks, infrastructures and applications.  

To learn more, visit the IBM MobileFirst press kit or http://www.ibm.com/mobilefirst. Follow @ibmmobile, #ibmmobile on Twitter, and see IBM MobileFirst on YouTube, Tumblr and Instagram.

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Financials ($)
Sales 2016 79 586 M
EBIT 2016 14 813 M
Net income 2016 11 887 M
Debt 2016 34 138 M
Yield 2016 3,38%
P/E ratio 2016 12,66
P/E ratio 2017 12,14
EV / Sales 2016 2,29x
EV / Sales 2017 2,30x
Capitalization 148 137 M
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Average target price 155 $
Spread / Average Target 0,00%
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Virginia M. Rometty Chairman, President & Chief Executive Officer
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