ABC of business models of MaaS -steps and challenges

Transcription

1 ABC of business models of MaaS -steps and challenges NLTM & InformNorden conference Markku Tinnilä Information and service economy Aalto University School of Business

2 Contents Drivers and enablers of MaaS Servitization of mobility Attitudes and costs Steps to MaaS New business models Budget priced services Challenges Organising and orchestrating service networks Division of earnings

3 Transportation environment in changing Old structures New structures and models Profiling - segmentation Consumer behaviour & motivations Mobile ordering Consumer Demand responsive public transportaton Timetabled traffic Separate payment systems Few real time information services Public transportation Smart traffic control Real-time traffic information Route planners Payment systems Shared taxis

4 Drivers and enablers of MaaS Servitization of mobility

5 Transport from A to B Traditional solution Same (?) value created by services Investment Maintenance Allways available 95% time not in use No or less investment Almost always available

6 Attitudes count - owning vs using services Service economy has meant a shift from owning resources to using them i.e. using specialised and focused service providers Trend toward outsourcing in businesses Business services fastest growing area globally Consumer attitudes changed significantly towards USING services, rather than owning devices House renting vs buying Car ownership attitudes In service society you don t have to own to use services driving licences

7 Want to own a car? Multiple reasons money, lifestyle, environment

8 Cost structures in digital and traditional services Operations major share of costs Traditional shop with manual operations Operations 1c/unit Electronic services high investments in systems, operational costs low Investment 1 M 20% of operations 80% of operations MaaS + Fleet, drivers, fuel Fleet management Payment, ordering, Organising, traffic info, maps, etc

9 MaaS business potential in Finland Costs of tranportation Consumer income (app. 130 mrd ) 11% - 15 mrd Division (2012) 1. Using and purchasing vehicles Vehicles 7 mrd Maintenance and repair 2,2 mrd Spare parts 1 mrd Operations costs (insurance, fuel 2 mrd 2. Transport services Public transport services 3 mrd Leasing and rental of cars 0,6 mrd How large a share of private car expenses will move over to MaaS? Owning a car and changing it every 5 years approx 500 euros /month Average family euros/year Buying it as a service?

10 Drivers and enablers Attitudes wanting to own or just use Costs- digital services with different cost structure MaaS is a combination of digital and mobility services Digitalization everyone always a carrying a smart phone Ubiquituous access to information Servitization is trend

11 Steps to MaaS New business models Budget priced services

12 traditional traffic services. Similar business models Tickets 50% Public sponsoring 50% Public sponsoring 50% of total biz

13 Business model A business model is a conceptual tool that describes the key elements of the business logic of a firm. These include customers, structures and networks, earnings and costs, value creation and offering Challenges in earnings Bundling of services and pricing Network of partners for creating, marketing, and delivering this value Examples include systemic businesses. i.e. a network is needed to deliver the value A MaaS service bundle is produced by a network of partners

14 Positioning the service Range of service offering? Price Individual services Limousine services Private car Taxi Mass transport Bus DRT Subway & trains Quality

15 New models of pricing and bundling Case budget airlines Every service separately priced Cut the frills Budget buses and trains follow the lead! City transports how to make similar price reductions? Bundling services Teleoperators packages of sms-calls-data Or use as much as you want However, the cost of service production is very low due to digitalisation The key issue: public transport 50% costs labour

16 Budget airlines Luxury airline Offering Pricing structure All inclusive Or All extras charged

17 Challenges Organising and orchestrating service networks Division of earnings

18 Example of networked new service Kutsuplus New type of on-demand bus service - tailor-made rides without having to change buses or worry about parking Piloted in Helsinki Systemic business model i.e. a network is needed to deliver the value This is just the bus driving around without a fixed route

19 Participants in the network Who sets the service level? What the customer sees Society Customer Service offering Buying the ticket Tickets and customer contact Payment systems

20 Participants in the network behind the scenes Operating the service Operating the buses Customer Service offering Society Car fleet management Operating the demand driven service Scheduling system Tickets and customer contact Payment systems Traffic data gathering Travelling time forecast Digital maps

21 Roles of different players Car fleet management Scheduling system Travelling time forecast Manages the car fleet and equipment Driver management Keeps the required service level Incentives based on # trips Other uses for car fleet? Core of the system schedules and dispatches the vehicles to customers Manages several cities Driving time forecasts Customer waiting and travelling time forecasting Other uses for same information Updating the maps Other uses for maps Digital maps

22 Even in a small network there is the need for a network of agreements MO OO Ot F c S Pa Data Map DTF OPS Main operator x x x x x X Outsourced operator X X Own traffic X X Fleet x x Consumer Sponsor Payment system X X X x x Data gathering x x Maps Driving time forecast Operating system x x x x x x x 22

23 Business model viewpoint on MaaS All participants in the network need a business model and revenue stream! Division of revenues (from different sources, including ads) Different types of MaaS building blocks with different business models Traditional public transport services - bus, metro,.. Subsidized ticket revenue divided within system Stand alone services taxi, uber, lyft, car2goseparate charging and revenue schemes Connected to public transport car sharing schemes separete revenue schemes Ridesharing systems revenues? Information-focused services - direct or in-direct charging for services? Moovit sells mobility data to advertisers

24 Markku Tinnilä Information and service economy Aalto University School of Business

25 Reserve

26 Graphic Illustration of a Generic Airline Business Model Passengers Revenue Costs Air Travel Food Airport Aircraft, Fuel Cleaning Runway Checkin Jetway Source: Chesbrough

27 The Ryan Air Business Model Tampere international airport Win-win model Volume revenue Passengers Airport Revenue Air Travel Food Car Hire Shopping & Food Parking Hotels Jetway X Checkin X X Cleaning Aircraft, Fuel from Tampere to 30 Frankfurt (Hahn) 30 London (Stansted) Source: Chesbrough

28 Challenges of business model Adequate volumes for scale economies Not enough demand not enough cars long waiting times poor customer service No demand! Division of roles Who owns the concept, who markets, sets the prices, etc Role of public authorities footing most of the bill Revenue sharing Adequate incentives for all players to boost growth, maintain quality and improve operations Both short term and long term incentives needed

29 Ryan Air business model More passengers to airports Win- win model- sharing of revenue Focus on volume routes only Standardised services total self service Cut the costs More passengers into aircraft