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1 SAFESPOTSAFESPOT Business modelling and deployment of cooperative safety systems Tom Alkim (Rijkswaterstaat) Freek Faber (TNO)
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2 Content SAFESPOT SAFESPOT business models Discussion business models SAFESPOT deployment Discussion deployment SAFESPOT decision making process
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3 SAFESPOT The SAFESPOT CONCEPT: from the autonomous intelligent vehicle… … to intelligent Cooperative Systems
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4 SAFESPOT Safety applications –Intersection safety application –Local hazard warning –Speed assistance SP 6: BLADE –Business models, Legal Analysis and DEployment
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5 Business models Business modelling tasks in BLADE: 6.6.1. Preliminary definition 6.6.2. Ranking 6.6.3 Selection 10 business models Example of a value web Roles of the road operators
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6 Spectrum of the business models V2I V2V several services single SAFESPOT service public financing private financing Navigation systems
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7 10 business models (*) Due the high costs, the “SAFESPOT Plus” configuration with only “Public reliance” has been considered as not ecomical feasible.
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8 AF=SAFESPOT System After Market W = Cost Equipment T=Incentives F=Funding E= SAFESPOT Components S= Specification R=Rules/Legislative Framework M=Financial Contribution Business model example Public Authorities Insurances Safespot After Sale Support Driver Automotive & Infrustructure Supplier Map Provider OEM (car maker) Road Operator C2C,ACEA,CLEPA, ASECAP INSTITUTIONS Stakeholders (SF base) Additional Stakeholders (SF plus) E SF System E AF E Flow of Products Customer Support Flow of Services W F F F F T T F M F F F M M W Financial Flow S S S R R R R R Flow of Information Sheet 9
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9 Government strategies Economic Governance Role Public serviceInfrastructureOwn consumption Innovation ManagementPublicRulesProjects Economic InstrumentPermits, quota, concessions Fees, taxes or subsidizing Bonds, rights, support Governance ImpactInputThroughputOutputOutcome Innovation SpecsSimpleEasyQuickFrugalBroadA-political Government DriverFrustrationCrisisNew prevention New results New technology Moral imperative 23 juni 2016Mattieu Nuijten Sweet talk Public money Legislation Partner in value chain
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10 Legal Aspects Deployment Business models Governance Impact 23 juni 2016Mattieu Nuijten Efficiency of process Economy Cost effectiveness of policy Effectivity Input Resources, € Throughput Process, Production Output Products Services Outcome Effect, Results Standards on: Human capital Financial Resources Standards on: Human capital Financial Resources Standards on: Installations Facilities Emissions Process, Production Standards on: Installations Facilities Emissions Process, Production Standards on: Quality Productspecs Services Standards on: Quality Productspecs Services Standards on: Welfare Immission Hinderance Safety Standards on: Welfare Immission Hinderance Safety
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11 Business models discussion The goal of the discussion is to verify our view on the role of the road operator in cooperative safety systems –determine on which of the business models we should focus –determine which roles in the deployment road operators and public authorities could have
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12 Business models discussion Public involvement can accelerate the deployment of cooperative safety systems –E.g. by providing bandwidth, enforcing standard, subsidies, being a launching customer Without public involvement cooperative safety systems will not take of –Minimum penetration will not be achieved due to market imperfection Cooperative safety applications are not the responsibility of the road operators
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13 Business models discussion Other investments in road safety are more effective then cooperative safety systems Safety has no priority for road operator in relation to throughput Road operators should have a quality standard for road safety
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14 Business models discussion Which roles of road operators in our business models are actually considered by road operators? Participate in R&D (road side equipment) Subsidize the system in start-up phase Public service provider (operate road side infrastructure) Content provider (provide traffic/safety information) Monitoring (generate traffic information) Regulate quality standards Public support (awareness campaigns) Enforce mandatory equipment
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15 Business models discussion Which development is in the best interest of the road operators? public financing vs. private financing Standalone safety applications vs. combined with other applications V2V vs. V2I What other factors are important?
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16 Deployment Deployment and business models Different views of the future rather than one! (scenario approach) Time20092020 Penetration Proof of Concept Scenarios 2020 23 juni 2016
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17 Scenarios in the Deployment Programme Base scenario Current situation Critical uncertainties Driving forces Key Dimensions Plot Image of the future Scenarios Current situation Critical uncertainties Driving forces Key Dimensions Plot Image of the future Scenarios Driving forces Uncertainties Scenario variables Plot Textual image of the future recommended actions for main stakeholders deployment challenges from different perspectives Business modelling Assessment and evaluation Risk and legal analysis organisational architecture WP 6.6 WP 6.3 WP 6.4 WP 6.5 Input Output WP 6.7 Deployment Programme
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18 STOF model Organisation Service Finance Technology Driving forces
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19 Political importance of road safety Economic growth Technological developments Socio-cultural developments Safety effects Penetration rates Geographical coverage Government involvement Compatibility Regulation Quality of service Market demand Privacy concerns Allocation of liability Organisationa l complexity System costs Synergy with other in-car systems Functionality Technical feasibility + -/+-/+ + + + + -/+ +/- - + + + + + + + + + + + - + - + + + End user price - +/- User acceptance Financing - + - +/- + + -/+-/+ +
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20 Critical uncertainties Uncertainty Influence
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21 Deployment scenarios BIG BROTHER IS GUARDING YOU big bang safe spots in-car platform SAFESPOT platform private public A SAFE START DOES THE JOB ITS REVOLUTION
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22 Deployment programme The result of the scenario approach is a deployment programme which contains: Scenarios End state in 2020 (short story & picture) Timeline with milestones Deployment challenges Interpretation Recommended actions for main stakeholders If, possible: reflection on the scenarios by different stakeholders
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23 Discussion deployment Are the scenario dimension indeed the critical uncertainties? –SAFESPOT platform vs. combined platform –Hotspot vs. European coverage –Full functionality vs. increasing functionality Which other critical uncertainties are relevant/missing?
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24 Discussion deployment Which scenarios are likely to occur? Rank from 1 (most likely) to 8 (less likely)
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25 Discussion deployment Which scenarios are preferred? Rank from 1 (most preferred) to 8 (less preferred)
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27 Decision making process Implementation requires a decision making process Process management approach Structure of the arenas Some examples of roles for road operators ALS HIER TIJD VOOR IS
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28 Decision making process
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29 Decision making arenas Technical arena Legal arena Deployment arena Business modelling arena..
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31 BACKUP SLIDES
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32 Business models discussion 1.Which instruments are road operators able and willing to use?
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33 Business models discussion 1.Which instruments are road operators able and willing to use?
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34 Effectiveness of measure according to infra providers Source: Annex to Benchmarking study on activities on promoting and deploying Intelligent Vehicle Safety Systems in the EU
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35 Effectiveness of measure according to driver associations Source: Annex to Benchmarking study on activities on promoting and deploying Intelligent Vehicle Safety Systems in the EU
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36 Source: Annex to Benchmarking study on activities on promoting and deploying Intelligent Vehicle Safety Systems in the EU
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37 Measure by public authorities
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38 Business modelling discussion - KLAD Cost/benefit analysis; “profit” is in improved traffic safety, how to monetarise? Invest in traditional measures (infra, driver, vehicle, enforcement) to improve traffic safety or willing to invest in additional measures (the SAFESPOT system) Dilemma: investing in SAFESPOT system is only feasible when traditional measures are sufficiently deployed (quick wins), this means that the additional “profit” is much harder to get
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