For Union Pacific, Life is Good

Union Pacific is one of the companies cited in Scott Thurm’s survey of big U.S. companies, For Big Companies, Life is Good, that have not only recovered from the Great Recession, but have largely seen revenues and profits surpass those of 2007. In an exclusive interview, Union Pacific CIO Lynden Tennison told us the company is increasing its use of predictive analytics, which have already helped slash train derailments.

Tennison says he continues to focus on “things that will impact core business problems.”

Those things include continuing to find ways to sell the company’s intellectual property, created by IT, to other companies. Because the railroad needed to supplement existing communications infrastructure to ensure it could monitor the condition of its rail cars and tracks — even in remote locales — the company owns more than 1,700 radio towers and its own fiber optic network. “I have a lot of dark fiber,” says Tennison. He says the company earns between $10 and $20 million per year selling right of way access to that infrastructure.

He’s also sold the railroad’s proprietary crew management software to 6 of the 7 North American railroads, he said.

Now, the company is developing 3D games that simulate various tasks that maintenance crew have to perform for training purposes. “We drive efficiency and safety through these simulators,” Tennison said. He added the company will sell this technology to other companies as well.

April 10, 2012

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