New perspectives for C2X business models Business models and revenue sources for C2X communication SIS38 ITS World Congress 2012 October 24th Nadja Rappold Managing Director FacitResearch GmbH & Co KG
agenda Why Business Modeling? Framework Structure Involved Players Application Overview Exemplary Application Aggregated Perspective
Hypothesis CAN A SYSTEM ASDRIVEC2X TURN OUT TOBE PROFITABLE?
Why Business Modelling? economic viability crucial for a successful implementation of co-operative systems into European road traffic considerable investments necessary from the key stakeholders investments will only be made, if they will pay off within a reasonable timeframe therefore viable business models need to be developed
Framework Business Model Structure COST BENEFIT ANALYSIS BUSINESS MODEL HOW DO C2X SYSTEMS CONTRIBUTE TO RESOURCE SAVINGS? determine BENEFITS FOR USERS & PUBLIC AUTHORITIES exist BUSINESS CASES determine determine RESOURCE COSTS INFRASTRUCTURE BENEFITS FOR SOCIETY OPERATING COSTS & HARDWARE WILLINGSNESS TO PAY FOR BENEFIT
Involved Players OEM SERVICE PROVIDER USER DATA SERVICE ADDED VALUE
Three Categories of Applications TRAFFIC EFFICIENCY NO RE SAFETY NO VE NU RE ES 31.10.2012 VE FO NU ES ITS WORLD CONGRESS 2012 SIS 38 COMMERCIAL CU S
Broad Range of Commercial Applications MULTIMODAL TRAVEL PARKING LOCAL ELECTRONIC COMMERCE CONNECTION TO POI FUEL POI NOTIFICATION CAR SHARING LEASING INSURANCE INDIVIDUAL DRIVING PROFILE ELECTRONIC TOLL COLLECT CAR RENTAL COMMERCIAL FLEET COORDINATION & CONTROLLING TAXI COORDINATION PUBLIC TRANSPORT LOGISTICS STOLEN VEHICLE ALTERT REMOTE DIAGNOSIS MAINTENANCE & SECURITY ACCIDENT SOS SERVICE MEDIA DOWNLOADS INFOTAINMENT SOCIAL NETWORKING MAP DOWNLOADS & UPDATES INSTANT MESSAGING
Broad Range of Commercial Applications MULTIMODAL TRAVEL PARKING LOCAL ELECTRONIC COMMERCE CONNECTION TO POI FUEL POI NOTIFICATION CAR SHARING LEASING INSURANCE INDIVIDUAL DRIVING PROFILE ELECTRONIC TOLL COLLECT CAR RENTAL COMMERCIAL FLEET FLEET COORDINATION & CONTROLLING TAXI COORDINATION PUBLIC TRANSPORT LOGISTICS STOLEN VEHICLE ALTERT REMOTE DIAGNOSIS MAINTENANCE & SECURITY ACCIDENT SOS SERVICE MEDIA DOWNLOADS INFOTAINMENT SOCIAL NETWORKING MAP DOWNLOADS & UPDATES INSTANT MESSAGING
Exemplary business case stakeholders fleet management FLEET STAKEHOLDERS STAKEHOLDERS EUROPEAN INSURANCE AND FINANCING COMPANIES EUROPEAN COMPANIES WITH OWN FLEET OPERATIONS
Exemplary business case stakeholders fleet management FLEET IN VIEW OF RISING FUEL PRICES, THE REDUCTION OF FUEL & MAINTENANCE COSTSIS AN ESSENTIAL DRIVER FOR OVERALL EFFICIENY FLEET MAINTENANCE CAN BE OPTIMIZED AND USED TO PROVIDE AN ONGOING PREVENTING PROCESS. THE DRIVE C2X SYSTEM DOES NOT ONLY HELP TO RAISE EFFICIENCY AND SAFETY, IT ALSO DOCUMENTS DRIVER BEHAVIOUR STAKEHOLDERS BENEFIT EUROPEAN INSURANCE AND FINANCING COMPANIES WITHIN ONE BUILT IN SYSTEM WE COULD HAVE THE ADVANTAGES OF CURRENT FLEET SOLUTIONS AND OF DRIVE C2X DUE TO THE COMPABILITY WITH BUILT IN COMPONENTS THE PRODUCTION COSTS & THEREFORE THE PRICE WILL BE VERY ATTRACTIVE
Exemplary business cases calculation fleet management FLEET FEEDBACK FROM STAKEHOLDER INTERVIEWS Fleet Management operators are willing to pay for data fleet management systems in active use forecasted by 2016 * to grow at a compound annual growth rate of 17.9 percent from 2.5 million units at the end of 2011 to 5.7 million 5.7 million 80 cost savings per month per unit in 2016** willingness to invest in in telematic system by fleet managers 10 % 10 % adopted market share potential of a drive c2x solution in 2016 total revenue potential in Europe in 2016 55 million *Source: PR Newswire (http://s.tt/1kkya); **source: own calculation based on various studies on the effect of telematic fleet management systems
Broad Range of Commercial Applications MULTIMODAL TRAVEL PARKING LOCAL ELECTRONIC COMMERCE CONNECTION TO POI FUEL POI NOTIFICATION CAR SHARING LEASING INSURANCE INDIVIDUAL DRIVING PROFILE ELECTRONIC TOLL COLLECT CAR RENTAL COMMERCIAL FLEET COORDINATION & CONTROLLING TAXI COORDINATION PUBLIC TRANSPORT LOGISTICS STOLEN VEHICLE ALTERT REMOTE DIAGNOSIS MAINTENANCE & SECURITY ACCIDENT SOS SERVICE MEDIA DOWNLOADS INFOTAINMENT SOCIAL NETWORKING MAP DOWNLOADS & UPDATES INSTANT MESSAGING
Exemplary business case stakeholders insurance INSURANCE STAKEHOLDERS EUROPEAN INSURANCE AND FINANCING COMPANIES
Exemplary business case benefits insurance INSURANCE OUR CLAIM COSTS ARE A VERY RELEVANT COST FACTOR IN OUR COMPANY THE DRIVE C2X SYSTEM IS ABLE TO DOCUMENT THE STATUS OF THE CAR AND CAN BE USED FOR REAL TIME COMMUNICATION THIS HELPS US TO FACILITATE THE DRIVERS COOPERATION WITH RECOMMENDED THIRD PARTY SERVICE PROVIDERS BENEFITS WE ARE INTERESTED IN THE TECHNOLOGY IN ORDER TO OPTIMIZE OUR PROCESSES & REDUCE OUR CLAIM COSTS FINALLY, NOW WE CAN OFFER PAY AS YOU DRIVESERVICES TO OUR CUSTOMERS *Source: PTOLEMUS 2011
Exemplary business cases calculation insurance INSURANCE FEEDBACK FROM STAKEHOLDER INTERVIEWS Insurance companies are willing to pay for data claims costs can be reduced along the process by 2,8 % 15 million total savings for German insurance industry in 2020 willingness to invest in cost savings by insurance companies 20 % 3 million total revenue potential in Germany in 2020
Exemplary business cases calculation insurance INSURANCE FEEDBACK FROM STAKEHOLDER INTERVIEWS Insurance companies are willing to pay for data claims costs can be reduced along the process by 2.8 % 15 million total savings for German insurance industry in 2020 willingness to invest in cost savings by insurance companies 20 % 3 million 19 million total revenue potential in Europe in 2020 Extrapolated on the basis of 20 billion German insurance market vs. 124 billion European insurance market
Aggregation of Revenue Potential for Overall Evaluation REVENUES COST LOCATION BASED OFFERS MULTIMODAL TRAVEL CONNECTION TO POI PARKING FUEL PRODUCTION COST ON BOARD UNIT CAR SHARING LEASING INSURANCE INDIVIDUAL DRIVING PROFILE BILLING ON PRIVATE ROADS CAR RENTAL COMMERCIAL FLEET TAXI COORDINATION COORDINATION & CONTROLLING PUBLIC TRANSPORT DATA PROCESSING CONNECTED CAR CARE MAINTENANCE MEDIA DOWNLOADS INFOTAINMENT SOCIAL NETWORKING DATA STORAGE ACCIDENT SOCIAL NETWORKING FINAL RESULT TO BE CALCULATED
Hypothesis CAN A SYSTEM ASDRIVEC2X TURN OUT TOBE PROFITABLE? YES IT COULD IF YOU THINK OUTSIDE OF THE BOX!
Thank you for your attention