1. Making the Business Case for Intelligent Transport Systems in the Highways Agency Brian Harbord Intelligent Transport Systems Research Group Highways Agency, UK

2. Business Case or Model? Business Case – WHY something is worth doing Limited funds & other resources Compares cost and benefits/disbenefits (>>BCR) Usually for a project or programme of work Confirms the need (and ownership) Demonstrates value for money Prioritisation of alternative solutions Foundation of the business model

3. Business Case or Model? Business Model – HOW something can be done “Framework for creating value” Public or Commercial Service Example models Razor and blades (bait and hook) Pyramid scheme McDonalds – fast/cheap food, consistent “quality” Usually (but not always) based on business case(s) Beijing Olympics?

4. Business Cases in the UK Business cases key element of all Government procurement NHS – NICE OGC – Office of Government Commerce Treasury guidance – “Green Book” Business cases for ITS – a brief history, with examples.

5. Business Cases for Roads? 1956 – M6 first motorway MOT Business model >> roads vs rail Business Case? Now COBA

6. Early ITS 1959 – first ERT 1960s – first signals Ministerial decree – justify by accidents/safety

7. Early ITS Business Cases 1970s – Increasing cost of ITS, benefits questioned 1978 – Autowarn Pilot on M4 successful No business case for wider deployment

8. Early ITS Business Cases 1980s – ramp metering, variable speed limits, M1 AID Treasury doubts over trials/assessment Stricter controls on evaluation/business case Research >> trial/pilot >> standard/deployment Assessment should be independent Results >95% confidence level Resulted in long, expensive trials HA/NAO – Guide to Pilots and Trials

9. Basis of Guidance Late 1980s – research showed potential of ITS 1990 – M25 Review/M25 Action Plan Improved signals/automatic operation Queue protection (AIDS >> MIDAS) Controlled motorways Ramp metering Driver information (RTTI) Business cases based on safety and congestion

10. Example 1 - Controlled Motorways Early ’90s – computer modelling > business case 1995 – one year trial (including RTA/SpeedAlert) 1997 – indications of benefits – safety & JT Trial > operational system, monitoring continues 1999 – safety benefits confirmed but +/- 25% 2000/02 – scheme extension 2005 – benefits confirmed @ 95% confidence...similar (but longer) story for ramp metering

11. Example 2 – Driver Information (RTTI) 1980s – DfT business model – private sector 1991 – business case for RTCC and NTIC Kent Corridor Pilot (PLEIADES) – VMS based TIH – sharing of private and HA traffic data MDIS – strategic VMS based 2001 – NTCC launched Initially VMS, but developed alternative delivery mechanisms (Traffic England, HANET, HA Radio, etc)

12. RTTI – the Business Case? 0 100 JT

13. Things are Getting Better for ITS? 2000 – Triple Package Business Case Later same year - Ten Year Plan ATM – hardshoulder running Regional Control Centres “Roles & Responsibilities” Review All had good business cases, but did not fit Agency business model, then... White Friday >> HA as Network Operator

14. Agency as Network Operator Business case previously based on safety, congestion and environmental impact New target – journey time reliability (AVDs) Traffic Officer Service/Incident Management ‘Relaxed’ approach to business cases M42 ATM pilot results (safety vs capacity) 2007 – ATM Feasibility Study (sustainability) 2008 - Managed Motorway programme

15. European R & D Business Cases EC funded R & D programmes rarely deliver business case for UK deployment Insufficient duration/data collection Lack of rigour Lack of independence Traffic and other conditions not representative of UK

16. Discussion? Thanks for Listening