1

SAFESPOTSAFESPOTSAFESPOTSAFESPOT

Business modelling and deployment of

cooperative safety systems

Tom Alkim (Rijkswaterstaat)

Freek Faber (TNO)

2

Content

• SAFESPOT• SAFESPOT business models• Discussion business models• SAFESPOT deployment• Discussion deployment• SAFESPOT decision making process

3

SAFESPOT

The SAFESPOT CONCEPT: from the autonomous intelligent vehicle…

… to intelligent Cooperative Systems

4

SAFESPOT

• Safety applications– Intersection safety application– Local hazard warning– Speed assistance

• SP 6: BLADE – Business models, Legal Analysis and DEployment

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

6

Spectrum of the business models

V2IV2V

several services

single SAFESPOT service

public financing

private financing

Navigationsystems

7

10 business models

(*) Due the high costs, the “SAFESPOT Plus” configuration with only “Public reliance” has been considered as not ecomical feasible.

8

AF=SAFESPOT System After MarketW = Cost EquipmentT=IncentivesF=FundingE= SAFESPOT ComponentsS= SpecificationR=Rules/Legislative FrameworkM=Financial Contribution

Business model example

Public Authorities

Insurances

SafespotAfter Sale Support

Driver

Automotive &Infrustructure

Supplier

Map Provider

OEM(car maker)

Road Operator

C2C,ACEA,CLEPA, ASECAPINSTITUTIONS Stakeholders (SF base)

Additional Stakeholders (SF plus)

E

SF System

EAF

AF

E

Flow of Products

Customer

Support

Flow of Services

W

F

F

FF

T

T

F

M

F

F

FM

M

W

Financial Flow

SSS

R

R R

R

R

Flow of Information

Sheet 9

9

Government strategies

Economic Governance Role

Public service Infrastructure Own consumption

Innovation Management Public Rules Projects

Economic Instrument Permits, quota, concessions

Fees, taxes or subsidizing

Bonds, rights, support

Governance Impact Input Throughput Output Outcome

Innovation Specs Simple Easy Quick Frugal Broad A-political

Government Driver Frustration Crisis New prevention

New results

New technology

Moral imperative

21 april 2023Mattieu Nuijten

• Sweet talk• Public money• Legislation• Partner in value chain

10

Legal AspectsLegal Aspects

DeploymentDeployment

Business modelsBusiness models

Governance Impact

21 april 2023Mattieu Nuijten

Efficiency of process

Economy

Cost effectiveness of policy

Effectivity

InputResources,

€

ThroughputProcess,

Production

OutputProductsServices

OutcomeEffect,Results

Standards on:•Human capital•Financial•Resources

Standards on:•Installations•Facilities•Emissions•Process, Production

Standards on:•Quality•Productspecs•Services

Standards on:•Welfare•Immission•Hinderance•Safety

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

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

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

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

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?

V2IV2V

several services

single SAFESPOT service

public financing

private financing

Navigationsystems

V2IV2V

several services

single SAFESPOT service

public financing

private financing

Navigationsystems

16

Deployment

Deployment and business models

Different views of the future rather than one! (scenario approach)

Time 2009 2020

Penetration

Proof of Concept Scenarios 2020

21 april 2023

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

18

STOF model

Organisation

Service

Finance

Technology

Driving forces

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

Privacyconcerns

Allocation of liability

Organisational

complexity

System costs

Synergy with other in-car

systems

FunctionalityTechnical feasibility

+

-/+

+

+

++

-/++/-

-

+

+

+

+++

+

+

+

+

+-

+

-+

+

+

End user price

-

+/-

User acceptance

Financing

-+-

+/-

+

+

-/+

+

20

synergy

gov.strategy

penetration

compatibility

geogr. cov.

financing

quality of service

liability

effects

organisation

system costs

legislation

privacy concerns

business model

Critical uncertaintiesU

ncer

tain

ty

Influence

21

Deployment scenarios

BIG BROTHER IS GUARDING YOU

big bangsafe spots

in-car platform

SAFESPOT platform

private

public

A SAFE STARTDOES THE JOB

ITS REVOLUTION

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

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?

24

Discussion deployment

• Which scenarios are likely to occur? Rank from 1 (most likely) to 8 (less likely)

nr Scenario name dimension 1 dimension 2 dimension 31 big brother is guarding you SAFESPOT big bang public2 we want safety! SAFESPOT big bang private3 a safe start does half the job SAFESPOT safe spots public4 safety for sale SAFESPOT safe spots private5 societal quantity rebate in-car big bang public6 ITS revolution in-car big bang private7 extended traffic management in-car safe spots public8 in-car added value in cities in-car safe spots private

25

Discussion deployment

• Which scenarios are preferred? Rank from 1 (most preferred) to 8 (less preferred)

nr Scenario name dimension 1 dimension 2 dimension 31 big brother is guarding you SAFESPOT big bang public2 we want safety! SAFESPOT big bang private3 a safe start does half the job SAFESPOT safe spots public4 safety for sale SAFESPOT safe spots private5 societal quantity rebate in-car big bang public6 ITS revolution in-car big bang private7 extended traffic management in-car safe spots public8 in-car added value in cities in-car safe spots private

26

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

28

Decision making process

12SAFESPOT IP 2nd Review May, 14-15, 2008 , Orbassano

WP6.4: Decision making process

Agenda

Agenda

Agenda Agenda

B

C

A

E

Agenda

FD

AgendaDeploymentetc.

StakeholderpersuasionCommunicationBusiness modelsetc.

ModularityLiabilityPrivacyetc.

StandardisationPerformanceQualityUser/HMIEtc.

LegislationLiabilityPrivacyetc.

ModularityLiabilityPrivacyetc.

29

Decision making arenas

• Technical arena• Legal arena• Deployment arena• Business modelling arena• ..

30

31

•BACKUP SLIDES

32

Business models discussion

1. Which instruments are road operators able and willing to use?

33

Business models discussion

1. Which instruments are road operators able and willing to use?

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

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

36Source: Annex to Benchmarking study on activities on promoting and deploying Intelligent Vehicle Safety Systems in the EU

37

Measure by public authorities

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