Dr. Sed S. SAAD, PhD MBA Waseda University (Japan)

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ITS, a Japanese Lng Term Strategy 1 Dr. Sed S. SAAD, PhD MBA Waseda University (Japan) The Fully Netwrked Car Geneva, 3-4 March 2010

ITS definitin 2 Cmprehensive Plan fr ITS in Japan ITS is defined in the Cmprehensive Plan fr ITS in Japan, issued by the then 5 ministries in 1996, as fllws: ITS is a cmprehensive infcmmunicatins system dealing with transprtatin. Japan cnsiders ITS as a tl and an pprtunity t apply and develp telecmmunicatin infrastructure fr the transprt sectr while mst cuntries have psitined their ITS plans as integral parts f their transprtatin plicy. Frm 2010, Energy ITS cncept intrduced The Fully Netwrked Car Geneva, 3-4 March 2010 2

Plicy: ITS fr the Ubiquitus Sciety Japan USA Pr/Cn Based n Cmprehensive Plan (1996), u Japan (2004) and New IT Refrm Strategy (2006), ITS is cnsidered t play an imprtant rle in the Ubiquitus Sciety. Gre launched Natinal Infrmatin Infrastructure (NII) in 1993 Harvard s Branscmb argued in 1996 that ITS was missing in the NII prject Gre lst the electin: NII prject was nt pursued A lst decade fr USA: n links between NII and ITS until mid 00s Vehicle Infrastructure Integratin (VII) prject started in 2006 On the ther hand, Japan prvided a direct relatinship between ITS and telecmmunicatin frm mid 90s. The Fully Netwrked Car Geneva, 3-4 March 2010 3

ITS Thrugh Different Phases and Shifts 4 ITS Wrld Cngress in Japan Perid Frm 1980 Frm 1995 Frm 2004 Frm 2013 Integrated Apprach? Main Plicy dcuments Sciety cncepts 1995 Ykhama 2004 Nagya 2013 Tky Plicy shifts cincided with ITS wrld cngress which tk places in 1995/Ykhama and 2004/Nagya Cmprehensive Plan fr ITS in Japan (1996), fr an advanced inf-telecm sciety Plicy Transprt plicy Telecm plicy (ITS as inf-telecm system dealing with transprtatin) Infrastructure building Plicy stakehlders Independent Ministries 1. Five Ministries 2. semi-public rganizatins New IT Refrm Strategy (2006), fr an Ubiquitus Sciety New ITS plicy dcument? Inf-Telecm Sciety Ubiquitus Sciety New Sciety cncept? Prime Minister supervisin 1. Prime Minister 2. Fur Ministries, 3. Semi-public rganizatins IT as prblem slving, utilizatin f infrastructure 1. Prime Minister (supervisin) 2. Fur Ministries, 3. Semi-public rganizatins 4. (increasingly) ITS Japan New Plicy? New ITS crdinating entity? The Fully Netwrked Car Geneva, 3-4 March 2010 4

Frm Develpmental State t Entrepreneurial State Regarding the rle f the State in ITS, the fllwing theretical cncepts are appl Entrepreneurial State Schumpeter and Yu cntends that an entrepreneurial state is a gvernment acting as entrepreneur and when its agents exercise alertness in the discvery f technlgical innvatin pprtunities. The Japanese state is, regarding ITS in Japan: a gvernment acting as entrepreneurial state

Public-Private Partnership (PPP) in Japan Nte: VICS stands fr Vehicle Infrmatin and Cmmunicatin System Public-Private partnerships Advanced Cruise-Assist Highway Systems (AHS) MOC launched research and develpment fr AHS jintly with the AHS Research Assciatin (AHSRA), frmed by 21 enterprises Public PPP Private Advanced Safety Vehicle (ASV) ASV prject was launched by MOT t incrprate advanced technlgies fr greater safety in vehicles VICS PPP in Japan, e.g. VICS PPP, calls fr public sectr n plicy and technlgy fr rad infrastructure private sectr n technlgy in vehicles PPP cmbine the capabilities and resurces t create win-win situatins fr partners invlved. Partnerships are designed t cmplete what each rganizatin is nt capable f realizing n its wn fr the reasn f lack f resurces, expertise, r experiences. The Fully Netwrked Car Geneva, 3-4 March 2010 6

Partnership: PPP Impacts n Industry Structure and Business Mdel (BM) 7 With/Withut PPP Industry BM Platfrm BMs BM decisin making Study cases With PPP ITS Infrastructure -based BM Initiated by the public sectr Public plicy + Business strategy VICS/Japan Withut PPP Telematics Vehicle -based BM Initiated by the private sectr Business strategy OnStar/US A The Fully Netwrked Car Geneva, 3-4 March 2010 7

Frm Traditinal Car Industry 8 Fr METI, the aut industry has the greatest impact n the Japanese ecnmy than any ther industry. Japanese car makers cnsidering ITS: ITS wuld mean a shift frm prduct-based industry t a bth prducts & service-based industry. As car, telecm and related services industries are all part f ITS, ITS has the capacity t be an engine fr the entire Japanese ecnmy. The Fully Netwrked Car Geneva, 3-4 March 2010 8

T ITS Lead Psitin -New ITS Industry- 9 ITS as emerging industry: What the public sectr des (r desn t) in relatin t ITS have a direct and prfund effect n industry structure and business mdels. Technlgy itself is nt the prblem: partnership, users perspective, packaged services and ultimately business mdels are the challenges. ITS as lcal and glbal industry: Need t lead lcally and glbally simultaneusly Need t succeed glbally where i-mde has nt succeed OnStar study case is interesting as it is the nly ITS/Telematics success t glbalize verseas (althugh its business mdel is built n different type f partnership in regards t Japan). The Fully Netwrked Car Geneva, 3-4 March 2010 9