Making the Business Case for Intelligent Transport Systems in the

Highways Agency

Brian HarbordIntelligent Transport Systems Research Group

Highways Agency, UK

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

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?

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.

Business Cases for Roads?

• 1956 – M6 first motorway

• MOT Business model >> roads vs rail

• Business Case?

• Now COBA

Early ITS

• 1959 – first ERT

• 1960s – first signals

• Ministerial decree – justify by accidents/safety

Early ITS Business Cases

• 1970s – Increasing cost of ITS, benefits questioned

• 1978 – Autowarn• Pilot on M4 successful

• No business case for wider deployment

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

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

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

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)

RTTI – the Business Case?

0 100

JT

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

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

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

Discussion?

Thanks for Listening