You need to identify what isn’t working as it should be. Maybe you need to luck at data from a train or plane. Maybe you need to see what could be better. Maybe someone else will tell you what needs improving.
I’m looking at helping to reduce the delays to trains by using lost of different information to spot problems before they turn into failures which cause late trains.
Like Andy said, a good way to know if something needs improving is by analysing data. A full data analysis allows you to determine in which area your system is struggling or needs catching up with other parts of the system. Also, in terms of design, sometimes engineers know the potential for improvement but the technology is just not available, so we might have to wait until a faster computer comes up or a more efficient car engine is developed.
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