GUEST EDITORIAL
The Benefi ts Of Employing
Advanced Analytics
Data intelligence yields deeper insights and patterns
that can drive business-improving actions
Align tracked
data with strategic
objectives.
62 Fleet Maintenance | JULY 2017
From Reactive To Proactive
Advanced analytics have the potential to
significantly improve safety best practices
for fleets. Being proactive about
industry safety standards should be
the foundation of any fleet initiative.
Today, this relies significantly on accurately
and effectively harnessing data.
For example, telematics can yield data
from seatbelt clicks to harsh braking.
Large data volumes evaluated by analytic
systems reveal patterns and correlations
between driver behavior, vehicle status
and crashes. By reviewing and analyzing
data, fleets can assess which drivers or
vehicles need attention, allowing them to
quickly service faulty vehicles and to provide
resources to support safer driver behavior.
As technology and analytics help vehicles
take on a dual role, fleets‚ obligations
shift from reactive to proactive. Better
insights lead to more informed decisions
regarding fleet vehicles and drivers.
In the late 1940s, auto dealers first recognized
companies utilizing several vehicles had
specifi c needs, such as fi nancing, maintenance
assistance and other support services. Over the
more than half century that’s followed, the
need to combine innovation with continuity
has remained an industry cornerstone. Shift s
in ordering processes, OEM incentive programs
and fi nancing options all have helped transform
the world of the fl eet industry.
Never, however, has technological advancement
reshaped the fl eet industry as it is doing
now. From telematics and safety, to connected
cars and the dawning of autonomous vehicles,
the future of the fl eet landscape is being
wholly reimagined.
Fleet vehicles no longer are simply a way
of getting from Point A to Point B. Th ey are a
mobile workforce of computers on the road,
gathering data with every step on the throttle
or brake, and at every turn. Th e data gleaned
from advanced analytics can help a fl eet operate
more effi ciently by allowing fl eet managers
to better understand the factors that drive
maintenance, fuel, safety and other costs,
whether they occur daily or happen across
the vehicle lifecycle.
Time Provides Insight
Advanced analytics provide a faster way of
bringing more sources of data together, delivering
insights and recommendations about
engine performance, weather, location and
accident information in real time. Th is data
can be used to both streamline and simplify
day-to-day activities, helping make fl eets safer,
smarter and more productive.
Greater insight into fl eet vehicles and drivers
through the use of advanced analytics also
enables fl eet managers to more accurately
predict their maintenance spend, resulting in
greater vehicle uptime, as well as better vehicle
optimization and replacement scheduling.
As the meaning behind data becomes clear,
fl eets can learn more about their vehicles, plus
analyze driver behavior and make fact-based
decisions, taking targeted actions to make
improvements.
Mistakes to Avoid
Th e goal of technology isn’t to make life harder
on those who use it. Fleets should not need
advanced degrees in statistical analysis in
order to run their businesses, though they
should be focused on understanding capabilities,
limitations and pitfalls involving data.
Th e use of advanced analytics is still relatively
new to many in the fl eet industry. While
business intelligence tools facilitate fl eet data
analysis, having the ability to sort through
it quickly and easily can lead fl eets to take
mental shortcuts.
It’s vital to keep from over-generalizing and
drawing conclusions on too little or incomplete
data. Doing so increases the potential for inaccurate
conclusions and thus missteps.
For example, a driver who normally drives at
higher speeds may not be more likely to end up
in an accident than a driver who consistently
brakes harshly, indicating too little average
reaction time. Th e fl eet that only looks at vehicle
speed may be missing the biggest area of
risk. Dig deeper.
Small data sets create greater risk that
anomalies will be generated simply by chance.
Benchmarking against other fl eets in order to
increase the size of the data set can help to
alleviate this issue.
One more element to remember is point estimates
are not always useful. A value could vary
quite a bit from the average, yet still be within
a normal and expected range. Th e average
doesn’t tell the full story. Reporting an expected
range of values is oft en more informative.
With so much data available, fl eets must be
cognizant of aligning tracked data with their
company’s strategic objectives. For example, if
fuel effi ciency is one of your top goals, make it
a data priority. Track data such as how oft en an
asset is refueled, what kind of fuel is being used
and how much distance is traveled. Th is will
save time and money, and increase effi ciency.
Th ere are so many variables to track that
sometimes two completely unrelated variables
will correlate purely by random chance.
Be careful about drawing inferences when two
independent trends move together.
Analytics and the Future
We are truly at the beginning of a new frontier
of data intelligence which will continue to
reshape the fl eet industry for generations to
come. Th e use of advanced analytics to examine
large data sets will enable fl eet management
companies and fl eets to unearth previously
unknown correlations, trends and star drivers,
as well as those who need additional safety
training and other actionable insights.
For those who haven’t jumped on the data
bandwagon, now is the time. Increased safety,
effi ciency and profi t is around the corner.
By Bill Jones
DIRECTOR, PRODUCT MANAGEMENT
Jim Peregord
VICE PRESIDENT, ANALYTICS, BUSINESS INTELLIGENCE AND DATA
MANAGEMENT, ELEMENT FLEET MANAGEMENT
The company (www.elementfleet.com) is a global leader in the fleet management
industry, providing world-class fleet management services that empower
extraordinary results across the total fleet lifecycle.